f&c portfolios fund

F&C Portfolios Fund Société d’Investissement à Capital Variable

de droit luxembourgeois

Report & Accounts (Unaudited) for the period ended 31st March 2014

R.C.S. Luxembourg B25570

F&C Portfolios Fund Contents The Portfolios and their Objectives 2

Board of Directors 6

Comparative Table 7

F&C Active Return 10

F&C Asia Pacific Dynamic 14

F&C Diversified Growth 18

F&C Emerging Markets Bond 23

F&C Euro Inflation Linked Bond 29

F&C European Equity 32

F&C European Growth and Income 35

F&C European High Yield Bond 38

F&C European SmallCap 43

F&C Global Climate Opportunities 47

F&C Global Convertible Bond 50

F&C Global Emerging Markets Portfolio 57

F&C Global Smaller Cap Equity 61

F&C Japanese Equity 65

F&C Latin American Equity 68

F&C Plus Fund 71

F&C Russia Fund 75

F&C Sharia Sustainable Opportunities 78

F&C Stewardship International 81

F&C US Smaller Companies 85

Combined Statement of Net Assets 89

Combined Statement of Operations and Changes in Net Assets 95

Number of Shares Outstanding 107

Notes to the Financial Statements 109

Portfolio Turnover Ratio 123

Total Expense Ratio 124

Performance Data 126

Administration 128 Copies of the report and accounts to 31 March 2014 may be obtained from the registered office of F&C Portfolios Fund (the "Fund") at 49, Avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg and from foreign representatives. Notices to Shareholders are published in the Mémorial C, Recueil des Sociétés et Associations (the “Mémorial”) and in Luxembourg newspapers, to the extent required by Luxembourg law, and in such other newspapers as the Directors may decide. The Articles of Incorporation of the Fund have been lodged at the Registre de Commerce et des Sociétés of Luxembourg where they are available for inspection and copies can be obtained upon request. The net asset value of each of the Fund's shares is published in accordance with the relevant appendices of the Fund's latest prospectus (the "Prospectus"). The issue and redemption prices are available from F&C Management Limited, Exchange House, Primrose Street, London EC2A 2NY, United Kingdom, at the registered office of the Fund and will be published as further described in the Prospectus. No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus, the latest key investor information documents and the latest annual and the most recent semi-annual report, if published thereafter. The information contained in this report is historical and not necessarily indicative of future performance. Statements contained in this report concerning future performance are the opinions of management and there can be no guarantee that such opinions will prove to be correct.

F&C Portfolios Fund Interim Report & Account 2014 1

F&C Portfolios Fund The Portfolios and their Objectives F&C Active Return

The investment objective of F&C Active Return is to achieve long-term capital appreciation by investing its assets in and

gaining exposure to global equity, debt and foreign exchange markets.

F&C Asia Pacific Dynamic

The investment objective of F&C Asia Pacific Dynamic is to achieve long-term capital appreciation by investing, directly

or indirectly, in companies located in the Far East Region (excluding Japan and as defined in the Prospectus) or deriving a

predominant part of their income from that region, whilst their equity is listed on a Stock Exchange elsewhere.

F&C Diversified Growth

The investment objective of F&C Diversified Growth is to achieve capital appreciation over the medium to long-term

through a broadly diversified mix of holdings into traditional and alternative assets including investments in: equities,

bonds, indirect property and indirect commodities. A combination of cash, Exchange Traded Funds (ETF), financial

derivative instruments, listed certificates issued by investment banks, as well as swap contracts and currency are used to

structure the Portfolio.

F&C Emerging Markets Bond

The investment objective of F&C Emerging Markets Bond is to achieve a rate of return over the long-term, through

investing in fixed income, floating rate and other debt securities issued by governments of or companies incorporated

under the laws of emerging market countries. The term "emerging market" refers to a market that possesses a functioning

stock market and which is classified by the World Bank as an emerging market.

F&C Euro Inflation Linked Bond

The investment objective of F&C Euro Inflation Linked Bond is to generate a combination of capital growth and income.

F&C Euro Inflation Linked Bond will invest at least two thirds of its total assets in Euro denominated inflation linked

debt securities of European government issuers, supranational institutions of which one or more EU Member States are

members and European government agencies. It may also invest in Euro inflation linked securities issued by European

corporate issuers up to a maximum of 20% of the Portfolio’s investments.

F&C European Equity

The investment objective of F&C European Equity is to achieve long-term capital appreciation by investing in European

companies listed on one of the European States Stock Exchanges or a regulated market. F&C European Equity will invest

at least 75 per cent of its total assets in equity securities of companies that are incorporated under the laws of, and have

their registered office in, a country in Europe.

F&C European Growth and Income

The investment objective of F&C European Growth and Income is to achieve long-term capital appreciation and an

enhanced level of income by investing in companies listed on one of the European States Stock Exchanges or a regulated

market. F&C European Growth and Income will invest at least 75 per cent of its total assets in equity securities of

companies that are incorporated under the laws of, and have their registered office in, a country in Europe.

F&C European High Yield Bond

The investment objective of F&C European High Yield Bond is to achieve an above average rate of return over the long-

term, measured in Euro, through investing in non-investment grade fixed income debt securities, floating rate and other

debt securities. Non-investment grade securities are defined as securities that are rated Ba1/BB+ or lower by Moody’s,

Standard & Poor’s or another recognised credit rating agency.

2

F&C Portfolios Fund The Portfolios and their Objectives (continued) F&C European SmallCap

The investment objective of F&C European SmallCap is to make available to investors participation in a portfolio

consisting of securities of European domiciled companies listed on the various European States Stock Exchanges. The

investment policy is directed towards achieving long-term capital growth through investment in small and medium sized

companies. F&C European SmallCap will invest at least 75 per cent of its total assets in equity securities of companies that

are incorporated under the laws of, and have their registered office in Europe. For this portion of the portfolio F&C

European SmallCap will invest at least two thirds (ie. 50 per cent of its total assets) in small capitalisation companies with

a maximum stock exchange capitalisation of Euro 3 billion or equivalent. If the market capitalisation of a company in

which the Portfolio holds an investment comes to exceed Euro 3 billion or equivalent, such a holding will be sold or will

be counted within the remaining one third of the total assets.

F&C Global Climate Opportunities

The investment objective of F&C Global Climate Opportunities is to achieve long-term capital appreciation by investing

at least two thirds of its total assets in equity and equity-related securities (excluding convertible bonds and bonds with

warrants) of companies, which have activities that fall within any market and part of whose business strategy falls

predominantly within technologies or strategies such as: Alternative Energy, Energy Efficiency, Sustainable Mobility,

Waste, Advanced Materials, Forestry and Agriculture, Water, Acclimatisation and Supporting Services. (The technologies

or strategies listed above should be considered as examples and this list is not exhaustive. The Investment Manager may

deviate from this list and choose other criteria related to climate preservation while implementing the investment policy of

the Portfolio and the list of technologies or strategies may be reviewed by the Board as science and policy develop). The

Portfolio may also hold investments in companies that have a clearly stated strategy to move from one business area to a

business that is predominantly in a domain as described above. The Investment Manager will follow a "bottom-up" stock

selection approach, actively seeking exposure to those companies that fall within the investment themes and whose

technologies, strategies or services facilitate or enable the reduction of greenhouse gas emissions and adaptation to climate

change.

F&C Global Convertible Bond

The investment objective of F&C Global Convertible Bond is to achieve high returns by investing its assets through a

balanced portfolio consisting of convertible securities. F&C Global Convertible Bond will invest its assets in a balanced

portfolio consisting of convertible debt securities and synthetic convertibles which offer the most attractive risk/reward

characteristics in terms of upward participation and downward protection. F&C Global Convertible Bond will invest at

least two thirds of its total assets in convertible debt securities issued by corporations located in Europe, the United States,

Japan and Asia.

F&C Global Emerging Markets Portfolio

The purpose of F&C Global Emerging Markets Portfolio is to provide a medium through which investors may participate

in equity and debt issues in emerging capital markets. For these purposes an emerging market will be a market that

possesses a functioning stock market and which is classified by the World Bank as an emerging market. This definition of

emerging market will generally be observed by the Investment Manager when selecting the markets in which F&C Global

Emerging Markets Portfolio will invest. F&C Global Emerging Markets Portfolio will invest at least two thirds of its total

assets in equity and equity-linked securities (excluding convertible bonds and bonds with warrants), of companies that are

incorporated under the laws of, and have their registered office in, an emerging market country, or that derive a

predominant part of their economic activity from emerging market countries, even if listed elsewhere.


F&C Portfolios Fund The Portfolios and their Objectives (continued) F&C Global Smaller Cap Equity

The investment objective of F&C Global Smaller Cap Equity is to make available to investors participation in a Portfolio

consisting of listed securities of companies on a worldwide basis. The investment policy is directed towards achieving

long-term capital growth through investment in small and medium sized companies. F&C Global Smaller Cap Equity will

invest primarily in equity and equity-linked securities (excluding convertible bonds and bonds with warrants) issued by

small and medium sized companies. Small and medium sized companies will generally be companies with a maximum

stock exchange capitalisation of US$ 10 billion or equivalent at the time of purchase. The Portfolio may hold and continue

to invest its assets in companies with a higher capitalisation if the capitalisation of the relevant company has reached or

exceeded US$ 15 billion or equivalent after acquisition by the Portfolio.

F&C Japanese Equity

The investment objective of F&C Japanese Equity is to achieve long-term capital appreciation by investing in listed

Japanese companies. F&C Japanese Equity will invest at least two thirds of its total assets in equity and equity-linked

securities (excluding convertible bonds and bonds with warrants) of companies that are incorporated under the laws of,

and have their registered office in, Japan, or that derive a predominant part of their economic activity from Japan, even if

listed on a Stock Exchange elsewhere.

F&C Latin American Equity

The investment objective of F&C Latin American Equity is to provide long-term capital growth through investment,

directly or indirectly, in Latin American (as defined in the Prospectus) companies. F&C Latin American Equity will invest

at least two thirds of its total assets in equity and equity-linked securities (excluding convertible bonds and bonds with

warrants), of companies that are incorporated under the laws of a Latin American country, or admitted to or dealt in on an

Eligible Market (as defined in the Prospectus) in Latin America, or that derive a predominant part of their economic

activity from Latin American countries, even if listed or negotiated elsewhere.

F&C Plus Fund

The investment objective of F&C Plus Fund is to maximise the return of the invested capital over the long term, measured

in Euro, through investing primarily in fixed income securities, floating rate and other debt securities. F&C Plus Fund will

invest primarily in fixed income securities, floating rate notes and other debt securities including government bonds,

equity-linked debt securities (such as convertibles), perpetual bonds, asset backed securities and mortgage backed

securities issued in Euros; provided however that asset backed securities and mortgage backed securities may in aggregate

not exceed 10% of the Portfolio's net assets. F&C Plus Fund may also invest up to 25% of net assets in equities and

preference shares or other assets that replicate equity exposure such as ETF´s or through the sale and purchase of

financial derivative instruments such as future contracts. Securities which are not denominated in Euro will be hedged into

Euro.

F&C Russia Fund

The investment objective of F&C Russia Fund is to provide long-term capital appreciation through investing, directly or

indirectly, in companies located in Russia or deriving a predominant part of their income from Russia whilst their equity is

listed on a Stock Exchange elsewhere. F&C Russia Fund will invest at least two thirds of its total assets in equity and

equity-linked securities (excluding convertible bonds and bonds with warrants) of companies that are incorporated under

the laws of Russia, or admitted to or dealt in on the Moscow Exchange (MICEX-RTS), or that derive a predominant part

of their economic activity from Russia, even if listed on a Stock Exchange elsewhere.

F&C Sharia Sustainable Opportunities

The investment objective of F&C Sharia Sustainable Opportunities is to achieve long-term capital appreciation by

investing its assets in equity and equity-related securities (excluding convertible bonds and bonds with warrants) of

companies, in any market, whose products and operations are not felt to be harming the world, its people or its wildlife,

are considered to be making a positive contribution to society and which adhere to Sharia principles and values as set out

in the Islamic investment guidelines (as defined in the Prospectus).

4

F&C Portfolios Fund The Portfolios and their Objectives (continued) F&C Stewardship International

The investment objective of F&C Stewardship International is to achieve long-term capital appreciation by investing at

least two thirds of its total assets in equity and equity-related securities (excluding convertible bonds and bonds with

warrants) of companies, in any market, whose products and operations are considered to be making a positive

contribution to society. F&C Stewardship International will avoid companies which, on balance, are felt to be harming the

world, its people or its wildlife or which trade extensively with oppressive regimes.

F&C US Smaller Companies

The investment objective of F&C US Smaller Companies is to make available to investors participation in a portfolio

consisting of securities of United States companies listed on United States Stock Exchanges or NASDAQ. The investment

policy is directed towards achieving long-term capital growth through investment in small and medium sized companies.

F&C US Smaller Companies will invest at least two thirds of its total assets in equity and equity-linked securities

(excluding convertible bonds and bonds with warrants) of small capitalisation companies that are incorporated under the

laws of, and have their registered office in the United States, or that derive a predominant part of their economic activity

from the United States, even if listed elsewhere. The Portfolio will invest in companies with a maximum stock exchange

capitalisation of US$ 10 billion or equivalent at the time of purchase. The Portfolio may hold and continue to invest its

assets in companies with a higher capitalisation if the capitalisation of the relevant company has reached or exceeded US$

10 billion or equivalent after acquisition by the Portfolio.


F&C Portfolios Fund Board of Directors Patrick Johns – Chairman

(appointed to the Board at the Annual General Meeting effective 30 January 2014)

Non-executive advisor to F&C

Norfolk, United Kingdom

Laurence Llewellyn – Chairman

(retired from the Board at the Annual General Meeting effective 30 January 2014)

Independent consultant in banking and financial services

London, United Kingdom

Jacques Elvinger – Director

Partner - Elvinger, Hoss & Prussen

2, Place Winston Churchill

B.P. 425, L-2014 Luxembourg, Grand Duchy of Luxembourg

Ernst Hagen – Director

(appointed to the Board at the Annual General Meeting effective 30 January 2014)

Executive Director

F&C Netherlands BV

Jachthavenweg 109E,

1081 KM Amsterdam, The Netherlands

John Karachalios – Director

(retired from the Board at the Annual General Meeting effective 30 January 2014)

Consultant and former Citibank Senior Executive and advisor to MetLife Services Limited

43 Katsibiri Street,

Athens 15561, Greece

João Santos – Director

Head of F&C Portugal

Gestão de Patrimónios, S.A.

Rua de Campolide, 372 - 1°

1070-040 Lisbon, Portugal

Hugh Moir – Director

Head of Operations and IT, F&C Asset Management plc

Exchange House, Primrose Street

London EC2A 2NY, United Kingdom

6

F&C Portfolios Fund Comparative Table TOTAL NET ASSETS

31 March 30 September 30 SeptemberPortfolio Currency 2014 2013 2012 F&C Active Return € 79,751,663 92,001,177 115,319,589F&C Asia Pacific Dynamic € 34,524,939 34,304,316 35,679,874F&C Diversified Growth € 378,684,072 365,120,657 383,019,529F&C Emerging Markets Bond $ 264,201,377 308,247,206 286,220,803F&C Enhanced Alpha UK Equity (1) £ N/A N/A 42,357,371F&C Euro Inflation Linked Bond € 24,236,330 19,884,259 20,946,788F&C European Equity € 50,886,434 50,414,518 37,497,643F&C European Growth and Income € 58,230,247 58,511,007 50,799,693F&C European High Yield Bond € 30,525,174 45,423,915 51,803,532F&C European SmallCap € 409,365,933 186,812,918 22,367,797F&C Global Climate Opportunities € 38,619,852 51,659,555 46,050,205F&C Global Convertible Bond € 981,174,974 1,086,367,998 609,270,454F&C Global Emerging Markets Portfolio $ 58,619,321 84,206,870 118,077,257F&C Global Smaller Cap Equity (2) $ 49,701,319 39,705,948 N/AF&C Japanese Equity € 140,276,305 145,049,158 128,879,203F&C Latin American Equity $ 61,720,545 67,638,916 77,495,344F&C Plus Fund € 143,268,724 134,044,297 124,013,034F&C Russia Fund $ 3,314,999 5,697,288 15,505,828F&C Sharia Sustainable Opportunities $ 65,058,559 56,004,016 25,995,591F&C Stewardship International € 121,936,721 108,551,861 80,289,185F&C US Smaller Companies $ 31,254,244 32,985,824 25,552,814 (1) Fully redeemed and closed from 25 September 2013 and final NAV issued on 25 September 2013 (2) Launched on 28 June 2013


F&C Portfolios Fund Comparative Table

NET ASSET VALUE PER SHARE 31 March 30 September 30 September

Portfolio Currency 2014 2013 2012 F&C Active Return - Class A Shares - Euro € 104.16 103.96 102.50F&C Active Return - Class I Shares - Euro € 107.29 106.79 104.72F&C Active Return - Class I Shares - GBP (Hedged) £ 106.95 106.33 103.80F&C Asia Pacific Dynamic - Class A Shares - Euro € 11.69 11.57 12.01F&C Asia Pacific Dynamic - Class I Shares - Euro € 11.57 11.47 11.94F&C Asia Pacific Dynamic - Class X Shares - Euro € 11.88 11.83 12.31F&C Diversified Growth - Class A Shares - Euro € 10.32 10.14 10.13F&C Diversified Growth - Class A Shares - GBP (Hedged) £ 10.81 10.62 10.57F&C Diversified Growth - Class A Shares - US$ (Hedged)(1) $ N/A 163.96 163.39F&C Diversified Growth - Class I Shares - Euro € 106.52 104.24 103.37F&C Diversified Growth - Class X Shares - Euro € 135.94 132.54 130.45F&C Diversified Growth - Class X Shares - GBP (Hedged) £ 88.22 86.00 84.25F&C Emerging Markets Bond - Class A Shares - US$ $ 14.57 14.60 16.10F&C Emerging Markets Bond - Class B Shares - US$ (2) $ N/A N/A 16.29F&C Emerging Markets Bond - Class C Shares - Euro (Hedged) € 113.02 112.90 124.58F&C Emerging Markets Bond - Class I Shares - Euro (Hedged) (3) € 10.25 9.86 N/A F&C Emerging Markets Bond - Class I Shares - US$ (4) $ 9.38 9.26 N/A F&C Enhanced Alpha UK Equity - Class I Shares - GBP (5) £ N/A N/A 84.85F&C Enhanced Alpha UK Equity - Class X Shares - GBP (5) £ N/A N/A 88.24F&C Euro Inflation Linked Bond - Class A Shares - Euro € 9.15 9.14 9.70F&C Euro Inflation Linked Bond - Class I Shares - Euro € 9.34 9.36 9.84F&C European Equity - Class A Shares - Euro € 16.43 15.35 12.59F&C European Growth and Income - Class A Shares - Euro € 15.15 13.95 11.41F&C European Growth and Income - Class A Shares - GBP £ 14.48 13.50 10.53F&C European High Yield Bond - Class A Shares - Euro € 14.28 13.89 13.43F&C European SmallCap - Class A Shares - Euro € 22.93 20.15 15.53F&C European SmallCap - Class I Shares - Euro (6) € 12.75 11.17 N/A F&C European SmallCap - Class I Acc Shares - Euro (7) € 10.37 N/A N/A F&C European SmallCap - Class I Shares - GBP (8) £ 12.34 10.93 N/A F&C European SmallCap - Class R Acc Shares - Euro (9) € 11.23 N/A N/A F&C Global Climate Opportunities - Class A Shares - Euro € 53.24 51.32 45.91F&C Global Climate Opportunities - Class A Shares - GBP £ 63.99 62.34 53.15F&C Global Climate Opportunities - Class I Shares - Euro € 54.18 52.21 46.60F&C Global Climate Opportunities - Class I Shares - GBP £ 54.50 62.97 53.57F&C Global Climate Opportunities - Class X Shares - GBP £ 65.27 63.77 54.23F&C Global Climate Opportunities - Hong Kong Class A Shares - US$ $ 15.21 14.38 12.21F&C Global Convertible Bond - Class A Shares - CHF (Hedged) (10) CHF 11.74 11.24 N/A F&C Global Convertible Bond - Class A Acc Shares - CHF (Hedged) (11) CHF 11.79 11.14 N/A F&C Global Convertible Bond - Class A Shares - Euro € 16.95 16.44 15.53F&C Global Convertible Bond - Class A Shares - Euro (Hedged) € 17.18 16.41 14.89F&C Global Convertible Bond - Class A Acc Shares - Euro (Hedged) (11) € 11.77 11.11 N/A F&C Global Convertible Bond - Class A Shares - GBP £ 14.24 13.94 12.46F&C Global Convertible Bond - Class A Acc Shares - US$ (Hedged) (11) $ 11.80 11.14 N/A F&C Global Convertible Bond - Class I Shares - CHF (Hedged) (12) CHF 11.16 10.56 N/A F&C Global Convertible Bond - Class I Shares - Euro € 12.25 11.82 11.12F&C Global Convertible Bond - Class I Shares - Euro (Hedged) € 17.07 16.45 14.86F&C Global Convertible Bond - Class I Acc Shares - Euro (Hedged) € 12.09 11.38 10.07F&C Global Convertible Bond - Class P Shares - Euro (Hedged) (13) € 10.26 N/A N/A F&C Global Convertible Bond - Class R Shares - Euro (14) € 10.29 N/A N/A F&C Global Convertible Bond - Hong Kong Class A Shares - US$ $ 14.81 14.09 12.66

8

F&C Portfolios Fund Comparative Table (continued)

NET ASSET VALUE PER SHARE (continued) 31 March 30 September 30 September

Portfolio Currency 2014 2013 2012

F&C Global Emerging Markets Portfolio - Class A Shares - US$ $ 22.13 21.94 22.94F&C Global Emerging Markets Portfolio - Class X Shares - GBP £ 8.79 8.92 9.34F&C Global Smaller Cap Equity - Class A Acc Shares - Euro (15) € 11.68 10.56 N/A F&C Global Smaller Cap Equity - Class A Acc Shares - US$ (15) $ 12.39 10.99 N/A F&C Global Smaller Cap Equity - Class I Acc Shares - GBP (15) £ 11.33 10.32 N/A F&C Global Smaller Cap Equity - Class I Shares - US$ (15) $ 12.48 11.01 N/A F&C Japanese Equity - Class A Shares - Euro € 20.42 21.55 18.50F&C Japanese Equity - Class I Shares - Euro € 11.54 12.21 10.49F&C Japanese Equity - Class I Shares - GBP £ 11.25 12.05 9.86F&C Japanese Equity - Class X Shares - GBP £ 9.68 10.38 8.46F&C Latin American Equity - Class I Shares - GBP £ 86.83 90.08 99.05F&C Plus Fund - Class I Shares - Euro € 74.50 69.71 64.49F&C Russia Fund - Class A Shares - US$ (16) $ 47.15 56.51 52.83F&C Sharia Sustainable Opportunities - Class A Shares - US$ (17) $ 10.09 N/A N/A F&C Sharia Sustainable Opportunities - Class X Shares - US$ $ 13.35 12.47 10.39F&C Stewardship International - Class A Shares - Euro € 11.75 11.30 9.88F&C Stewardship International - Class A Shares - US$ $ 14.78 13.94 11.57F&C Stewardship International - Class I Shares - Euro € 12.41 11.92 10.40F&C Stewardship International - Class R Shares - Euro (14) € 9.97 N/A N/A F&C US Smaller Companies - Class A Shares - US$ $ 150.89 138.05 106.81

(1) Fully redeemed and closed from 8 November 2013 (2) Liquidated as from 1 October 2012 and final NAV issued on 1 October 2012 (3) Launched on 25 September 2013 (4) Launched on 1 February 2013 (5) Fully redeemed and closed from 25 September 2013 (6) Launched on 11 April 2013 (7) Launched on 16 January 2014 (8) Launched on 3 May 2013 (9) Launched on 16 October 2013 (10) Launched on 25 October 2012 (11) Launched on 3 December 2012 (12) Launched on 12 April 2013 (13) Launched on 8 January 2014 (14) Launched on 26 November 2013 (15) Launched on 28 June 2013 (16) Launched by way of merger on 16 December 2011 (17) Launched on 20 January 2014 Please note that any comparison to a benchmark within this Report is only drawn for indicative purposes or for calculation of a performance fee (where applicable). The investment objectives of the Fund’s Portfolios (each a “Portfolio” and together the “Portfolios”) are not to track or follow a specific benchmark.


F&C Portfolios Fund F&C Active Return Performance The six months covered by this report has been a positive period for risky assets. Global, developed market equities have risen almost 10%, credit spreads have tightened, the US Dollar has remained broadly unchanged (on a trade weighted basis) and commodities have rallied.

Over the six month period to 31 March 2014 the I Euro Share Class produced a net return of 0.47% whilst over the same period the return from an investment earning 1 month Euribor would have produced a return of 0.10%.

Market Review Among the factors driving markets was speculation about when the US central bank would start to reduce the scale of its monetary support to the economy. The quantitative easing (QE) programme has been a major prop to the markets and fears that it would be withdrawn rapidly triggered volatility in both bonds and equities. Although equities were firm when the start of tapering of QE was subsequently confirmed in December, the early weeks of 2014 saw confidence rattled by signs of weakness in the emerging markets and some disappointing economic data from the US. Fears that armed conflict could break out between Russia and the Ukraine also spooked the markets in March.

In the United States worries about quantitative easing being withdrawn too quickly from the economy weighed on sentiment over the course of the period, although share prices were relatively resilient to the start of quantitative easing tapering in December. As 2014 began, economic indicators became more mixed, with jobs data being one of the main disappointments. The severe winter weather was also said to have had a negative impact on the economy. Given these developments, the new Federal Reserve chair Janet Yellen eased concerns of an imminent hike in interest rates.

Within Europe there were some encouraging signs for investors as the Eurozone economy began to show improvement. However, growth remained fragile enough for the ECB to cut interest rates to 0.25% in November. There were some improved data from the distressed southern European states as exports rebounded. This helped Greece, Ireland, Spain and Italy to post impressive returns over the period. Ireland and Spain also announced that they would be exiting the Eurozone’s bailout programmes. Investors were cheered by news that business activity across the Eurozone was growing faster than expected. The sharp fall in inflation to just 0.5% caused speculation the ECB would need to conduct its own quantitative easing.

The Japanese equity market was a relative under-performer as the initial euphoria faded regarding Prime Minister Abe’s economic reflationary programme. There were also some doubts about Abe’s ability to get parliamentary approval for important structural reforms. Overall confidence was dented by a widening trade deficit that had been brought about by a weaker currency. News in November that the rate of growth had halved in the third quarter came as a disappointment and the government tabled a further stimulus programme in December.

Outlook Looking forward over the second half of the fund’s financial year through to end of September; we are moderately positive that economic activity will increase, which should feed through into stronger corporate profits. Given the prevailing market valuations we favour European equities over US equities. Fixed income markets are faced with a testing period as they, perhaps, adjust to a higher rate environment, however given the low inflation and subdued economic activity within Europe we expect European Government Bond’s to outperform their counterpart in America.

Chris Childs Portfolio Manager April 2014 Note: The information contained in this report is historical and not indicative of future performance. All performance figures provided represent total returns. Statements contained in this report concerning future performance are the opinions of management and there can be no guarantee that such opinions will prove to be correct.

The accompanying notes form an integral part of these financial statements10

F&C Portfolios Fund – F&C Active Return Schedule of Investments as at 31 March 2014

Security Description RateMaturity

Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS BONDS Brazil Brazilian Government International Bond 6.00% 17.1.2017 USD 850,000 687,802 0.86 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Croatia Croatia Government International Bond 6.50% 5.1.2015 EUR 700,000 728,000 0.91 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Germany Bundesrepublik Deutschland 4.25% 4.7.2014 EUR 12,000,000 12,124,008 15.20Bundesschatzanweisungen 0.00% 13.6.2014 EUR 12,000,000 11,997,792 15.04Bundesschatzanweisungen 0.00% 12.9.2014 EUR 12,000,000 11,993,412 15.04Bundesschatzanweisungen 0.00% 12.12.2014 EUR 12,000,000 11,989,764 15.03Bundesschatzanweisungen 0.00% 12.6.2015 EUR 8,000,000 7,986,408 10.02Bundesschatzanweisungen 0.25% 11.9.2015 EUR 5,000,000 5,007,115 6.28Bundesschatzanweisungen 0.00% 11.12.2015 EUR 5,000,000 4,987,660 6.25 ____________________________________________________________________________________________________________________________________________________________________________________________________________

66,086,159 82.86Mexico Mexico Government International Bond 6.63% 3.3.2015 USD 850,000 651,261 0.82 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Poland Poland Government International Bond 3.75% 29.3.2017 EUR 700,000 763,350 0.96 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL BONDS 68,916,572 86.41 FUNDS Ireland GAM Star Fund - Cat Bond Fund 493,695 4,308,837 5.41iShares JPMorgan $ Emerging Markets UCITS ETF 9,283 743,044 0.93 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,051,881 6.34 TOTAL FUNDS 5,051,881 6.34 TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS

73,968,453 92.75

TOTAL INVESTMENTS 73,968,453 92.75 OTHER ASSETS / (LIABILITIES) 5,783,210 7.25 ____________________________________________________

TOTAL NET ASSETS 79,751,663 100.00 ________________________________________________

F&C Portfolios Fund Interim Report & Account 2014 11The accompanying notes form an integral part of these financial statements

F&C Portfolios Fund – F&C Active Return Schedule of Investments as at 31 March 2014 (continued)

DERIVATIVES FORWARD FOREIGN EXCHANGE CONTRACTS

Buy Nominal Sell Nominal Maturity Date

UnrealisedGain/(Loss)

in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________

Unrealised Gain on Forward Foreign Exchange Contracts GBP 49,632,332 EUR (59,998,661) 30.4.2014 28,195

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Gain on Forward Foreign Exchange Contracts 28,195 Unrealised Loss on Forward Foreign Exchange Contracts

EUR 410,716 GBP (339,732) 30.4.2014 (165)EUR 3,591,371 USD (5,000,000) 20.6.2014 (36,835)

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Loss on Forward Foreign Exchange Contracts (37,000) FUTURES CONTRACTS

Description

Numberof

Contracts Maturity DateCommitment

in EUR


in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________

Unrealised Loss on Futures Contracts FTSE 100 Dividend Index 650 18.12.2014 1,859,479 (32,236)NIKKEI 225 Index 12 12.6.2014 1,253,778 (21,390) ____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Loss on Futures Contracts 3,113,257 (53,626) OPTION CONTRACTS

Currency NotionalAmount Description Maturity Date

Commitmentin EUR

MarketValue

in EUR


in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________

Purchased Options

CNY 14,000,000 Call USD CNY, Strike Price 6.5 20.6.2043 85,222 4,663 (80,559)EUR 50,000 Call Stoxx 50E Dividend, Strike Price: 100 19.12.2014 215,000 649,204 434,204JPY 65,000 Call Nikkei 225, Strike Price: 16000 13.6.2014 348,307 93,878 (254,429)

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Purchased Options 648,529 747,745 99,216 Written Options

EUR (50,000) Call Stoxx 50E Dividend, Strike Price: 110 19.12.2014 (43,750) (151,995) (108,246)JPY (65,000) Call Nikkei 225, Strike Price: 17500 13.6.2014 (151,732) (17,402) 134,331

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Written Options (195,482) (169,397) 26,085 SWAP CONTRACTS

Currency NotionalAmount

Pay / Receive

MaturityDate

Commitmentin EUR


in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________

Credit Default Swaps EUR (2,250,000) Continental AG 7.4.2014 (431,361) 32,753EUR 900,000 Fiat Industrial SpA 20.12.2018 164,632 39,537USD 1,200,000 General Motors Co. 20.3.2019 164,837 13,335EUR (900,000) Renault S.A. 20.3.2019 325 26,968EUR 900,000 Jaguar Land Rover Automotive Plc. 20.3.2019 172,544 48,846EUR 2,250,000 GKN Holdings Plc. 20.3.2019 (812) (14,311)

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Credit Default Swaps 70,165 147,128


Pay / Receive

MaturityDate

Commitmentin EUR


in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Return Swaps EUR 6,742,310 Barclays Q-MA US Excess Return EUR Index 21.5.2014 39,301 39,301EUR 6,516,128 DB Equity Low Beta Turnover Control Factor Index 10.4.2018 162,624 162,624EUR 6,677,571 DB Equity Risk-Adjusted Momentum Factor Index 19.3.2018 (118,162) (118,162)EUR 6,450,496 DB Equity Sector Neutral Quality Factor Index 19.3.2018 (14,638) (14,638)EUR 6,748,409 DB Equity Sector Neutral Value Factor Index 19.3.2018 209,416 209,416

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Total Return Swaps 278,541 278,541 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Unrealised Gain on Swap Contracts 572,780Unrealised Loss on Swap Contracts 147,111 ____________________________________________________________________________________________________________________________________________________________________________________________________________

The counterparties for forward foreign exchange contracts were State Street Bank & Trust. and Westpac Banking Corp. The counterparty for futures contracts was Goldman, Sachs & Co. The counterparties for option contracts were Deutsche Bank AG (total commitment of EUR 256,472) and Goldman, Sachs & Co (total commitment of EUR 196,575). The counterparties for swap contracts were Barclays Bank Plc. and Deutsche Bank AG. Collateral held for the above described derivatives includes EUR 217,344 held as cash at the brokers, and a quantity of 670,000 Bundesobligation held as non cash collateral.

12The accompanying notes form an integral part of these financial statements

F&C Portfolios Fund – F&C Active Return Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets

Sovereign 86.41

Financial Services 6.34

Total Investments 92.75

Other Assets / (Liabilities) 7.25

Total Net Assets 100.00


F&C Portfolios Fund F&C Asia Pacific Dynamic Performance In the six months to 31 March 2014 the portfolio’s A shares returned 1.9%, its I shares returned 2.3% and its X shares returned 2.7%. By comparison, the FTSE World Asia Pacific ex-Japan, Australia & New Zealand Index rose by 1.5% in euro terms.

The fund outperformed its benchmark over the period. This was despite some disappointing performance from a number of Chinese stocks, mostly within the property sector. Returns were strongest in the first quarter of 2014, as smaller countries of South East Asia (Indonesia, Thailand, Philippines) rebounded following underperformance in the second half of 2013. Stocks with a domestic focus rallied and we had exposure through banks, department stores and property companies, amongst others. Our holdings in Taiwanese semiconductor companies all outperformed as sales beat expectations as new products were being launched more quickly than anticipated.

Market Review Asian markets have faced a challenging environment over the last year with relatively modest economic growth, in turn leading to weaker corporate earnings than had been anticipated. Whilst some of this weakness is related to sluggish growth in the global economy, there have also been growing concerns about structural problems across a number of countries, which may impinge across growth into the medium term. However in recent months there has been some recovery, helped by both a gradually improving global economic backdrop, and also by some signs that governments are increasingly realistic about the need to enact economic reforms to tackle those structural risks. Some countries where the imbalances were seen as more of a cyclical nature such as India, Indonesia and Thailand, have made some progress in for instance sharply reducing trade deficits which has recently underpinned their currencies and reduced the threat of higher interest rates.

Outlook We find Asia Pacific equities to be attractively valued relative to both their own history and developed markets. However, the economic outlook is modest with governments in a range of countries needing to tackle structural issues to ensure the sustainability of growth. We therefore favour higher-quality, well managed companies that can generate good returns even in challenging conditions. This leads us towards superior financial services, consumer and technology franchises that are gaining market share and generating superior financial performance. A stable economic backdrop and continued solid execution should allow these businesses to re-rate from currently attractive valuations.

Ben Akrigg Portfolio Manager April 2014

Note: The information contained in this report is historical and not indicative of future performance. All performance figures provided represent total returns. Statements contained in this report concerning future performance are the opinions of management and there can be no guarantee that such opinions will prove to be correct.


F&C Portfolios Fund – F&C Asia Pacific Dynamic Schedule of Investments as at 31 March 2014

Security Description

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Australia Amcor 58,196 406,622 1.18Ansell 27,699 342,925 0.99Australia & New Zealand Banking Group 65,095 1,447,212 4.19BHP Billiton 52,212 1,280,524 3.71Boral 79,623 302,530 0.88Brambles 75,371 469,350 1.36Commonwealth Bank of Australia 35,875 1,868,267 5.41Computershare 46,023 374,491 1.08Rio Tinto 13,293 568,094 1.64Sonic Healthcare 35,254 409,433 1.19Westfield Group REIT 69,552 479,419 1.39 ____________________________________________________________________________________________________________________________________________________________________________________________________________

7,948,867 23.02China AAC Technologies Holdings 100,000 376,947 1.09Anhui Conch Cement 'H' 149,500 465,652 1.35China Communications Construction 'H' 542,000 274,266 0.79China Construction Bank 'H' 1,949,000 989,891 2.87China Mengniu Dairy 82,000 297,592 0.86PetroChina 'H' 652,000 515,323 1.49Tencent Holdings 10,100 509,669 1.48 ____________________________________________________________________________________________________________________________________________________________________________________________________________

3,429,340 9.93Hong Kong AIA Group 378,800 1,303,867 3.78Belle International Holdings 240,000 172,629 0.50BOC Hong Kong Holdings 248,500 512,520 1.48Cheung Kong Holdings 54,000 649,042 1.88China Overseas Land & Investment 544,000 1,020,208 2.95China State Construction International Holdings 148,000 181,900 0.53China Unicom Hong Kong 176,000 167,585 0.49Haier Electronics Group 275,000 540,166 1.56Shimao Property Holdings 279,500 444,433 1.29Wharf Holdings 101,000 468,574 1.36 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,460,924 15.82India Cairn India 92,894 374,905 1.09Glenmark Pharmaceuticals 53,120 366,911 1.06HDFC Bank 97,050 882,219 2.56ICICI Bank 17,669 266,658 0.77ITC 126,555 542,659 1.57Larsen & Toubro 22,483 346,590 1.00Tata Consultancy Services 25,528 663,379 1.92Tata Motors ADR 24,400 626,885 1.82 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,070,206 11.79Indonesia Bank Mandiri Persero 1,117,800 674,668 1.95Matahari Department Store 569,600 505,683 1.47 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,180,351 3.42Korea Grand Korea Leisure 9,340 278,530 0.81Hyundai Motor 6,363 1,088,636 3.15Kia Motors 9,048 365,725 1.06LG Chem 749 129,677 0.37LG Display 11,170 202,907 0.59LG Household & Health Care 883 276,562 0.80Samsung Electronics 2,303 2,108,224 6.11Samsung Fire & Marine Insurance 2,691 439,305 1.27SK Hynix 12,210 299,616 0.87 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,189,182 15.03Malaysia CIMB Group Holdings 262,100 416,385 1.21 ____________________________________________________________________________________________________________________________________________________________________________________________________________

New Zealand Z Energy 109,913 269,886 0.78 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Philippines Puregold Price Club 585,300 416,667 1.21SM Investments 28,562 325,789 0.94 ____________________________________________________________________________________________________________________________________________________________________________________________________________

742,456 2.15Singapore CapitaMall Trust REIT 346,000 377,298 1.09DBS Group Holdings 64,000 597,086 1.73Keppel 80,700 507,047 1.47 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,481,431 4.29Taiwan E.Sun Financial Holding 431,500 188,654 0.54MediaTek 28,000 299,873 0.87Novatek Microelectronics 79,000 262,573 0.76Taiwan Semiconductor Manufacturing 659,000 1,860,600 5.39 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,611,700 7.56


F&C Portfolios Fund – F&C Asia Pacific Dynamic Schedule of Investments as at 31 March 2014 (continued)


Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

Thailand Kasikornbank 191,000 790,308 2.29Supalai NVDR 621,600 247,470 0.72 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,037,778 3.01 TOTAL SHARES 33,838,506 98.01 TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS

33,838,506 98.01

TOTAL INVESTMENTS 33,838,506 98.01 OTHER ASSETS / (LIABILITIES) 686,433 1.99 ____________________________________________________

TOTAL NET ASSETS 34,524,939 100.00 ________________________________________________


F&C Portfolios Fund – F&C Asia Pacific Dynamic Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets


Semiconductors 14.59

Real Estate 9.32

Auto Parts & Equipment 6.03

Metals & Mining 5.35

Retail 5.21

Insurance 5.05

Oil & Gas 3.36

Computers 3.00

Holding Companies 2.83

Engineering & Construction 2.32

Building Materials 2.23

Agriculture 1.57

Electrical Equipment 1.56

Internet 1.48

Commercial Services 1.36

Healthcare 1.19

Packaging & Containers 1.18

Pharmaceuticals 1.06

Miscellaneous Manufacturers 0.99

Food & Beverages 0.86

Lodging 0.81

Cosmetics & Personal Care 0.80

Telecommunication 0.49

Chemicals 0.37





F&C Portfolios Fund F&C Diversified Growth Performance Over the six months to 31 March 2014, the net asset value of the X class GBP (hedge) shares returned 2.5%. The class I shares EUR shares returned 2.2%. All returns are net of fees.

In the first three months of the period, the holdings in US and Japanese equities were the main contributors to performance as both markets rallied in local currency terms. Our positive stance on Korea relative to US equities detracted a little, however. Within fixed income, our corporate bond exposure continued to add value, although this was partially offset by our position in government bonds as yields rose and prices fell. From January to the end of March, both fixed income and equities contributed positively. Strategy within equities was slightly disappointing, however, as the negative impact of our overweight exposure to Japan more than offset some good performance from our US and Europe ex-UK holdings. Within bonds, a good return from our overweighting of high yield credits was negated by the underweighting of investment-grade debt and US inflation-linked bonds, which both performed well over the quarter.

Market Review There were generally strong returns for investors in the six months to the end of March. Among the factors driving markets was speculation about when the US central bank would start to reduce the scale of its monetary support to the economy. The quantitative easing (QE) programme has been a major prop to the markets and fears that it would be withdrawn rapidly triggered volatility in both bonds and equities. Although equities were firm when the start of tapering of QE was subsequently confirmed in December, the early weeks of 2014 saw confidence rattled by signs of weakness in the emerging markets and some disappointing economic data from the US. Fears that armed conflict could break out between Russia and the Ukraine also spooked the markets in March. The most disappointing of the major markets was Japan. Share prices slipped back as a stronger yen hit the prospects for exporters and investors sought safer havens amid rising geopolitical uncertainty.

Outlook The global economy appears to be on a path of slow but steady growth for the next couple of years and inflation is expected to remain low. This should create a supportive environment for equities and we are bullish on a number of key fundamentals such as earnings growth. Risk appetite is also improving once again. The year has seen heightened geopolitical tensions, most notably in the Ukraine as Russia moved to annex the Crimea. Only if the situation escalates will we know whether markets are under-pricing this type of risk. The outlook for global corporate bonds remains broadly positive given the combination of improving economic conditions and continued robust demand for the asset class. Leverage also remains low by historic standards. We expect to see credit spreads moving tighter over the course of the year. However, we are slightly more cautious than we might otherwise be given the geopolitical risks that continue to hang over Russia and some other emerging economies.

Paul Niven & Keith Patton Portfolio Managers April 2014 Note: The information contained in this report is historical and not indicative of future performance. All performance figures provided represent total returns. Statements contained in this report concerning future performance are the opinions of management and there can be no guarantee that such opinions will prove to be correct.


F&C Portfolios Fund – F&C Diversified Growth Schedule of Investments as at 31 March 2014


Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS BONDS Germany Bundesrepublik Deutschland 4.25% 4.7.2014 EUR 25,500,000 25,763,517 6.80Bundesrepublik Deutschland 3.75% 4.1.2015 EUR 35,000,000 35,959,945 9.50Bundesschatzanweisungen 0.00% 13.6.2014 EUR 43,085,000 43,077,072 11.37Bundesschatzanweisungen 0.00% 12.9.2014 EUR 26,500,000 26,485,452 6.99Bundesschatzanweisungen 0.00% 12.12.2014 EUR 35,650,000 35,619,591 9.41Bundesschatzanweisungen 0.25% 13.3.2015 EUR 34,000,000 34,035,700 8.99 ____________________________________________________________________________________________________________________________________________________________________________________________________________

200,941,277 53.06United States United States Treasury Inflation Indexed Bonds 0.63% 15.1.2024 USD 21,495,819 15,662,265 4.14United States Treasury Note/Bond 3.63% 15.2.2020 USD 36,286,600 28,735,600 7.59United States Treasury Note/Bond 4.50% 15.2.2036 USD 9,699,700 8,262,690 2.18 ____________________________________________________________________________________________________________________________________________________________________________________________________________

52,660,555 13.91 TOTAL BONDS 253,601,832 66.97 SHARES Guernsey Renewables Infrastructure Group 2,500,000 3,076,956 0.82 ____________________________________________________________________________________________________________________________________________________________________________________________________________

United Kingdom Tritax Big Box REIT Plc 1,500,000 1,934,626 0.51 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL SHARES 5,011,582 1.33 FUNDS Guernsey Better Capital 1,428,571 1,853,301 0.49Medicx Fund 764,874 781,796 0.21 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,635,097 0.70Ireland Fundlogic Alternatives - Emerging Markets Equity Fund ‘I’ 9,388 6,350,084 1.67GAM Star Fund - Cat Bond Fund 1,994,606 17,408,395 4.60iShares JPMorgan $ Emerging Markets UCITS ETF 50,000 4,002,178 1.06Neuberger Berman High Yield Bond Fund ‘I’ 1,882,316 27,956,482 7.38 ____________________________________________________________________________________________________________________________________________________________________________________________________________

55,717,139 14.71Japan Nomura TOPIX Exchange Traded Fund 2,132,450 18,584,322 4.91 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Jersey 3i Infrastructure 2,020,974 3,287,985 0.87Foresight Solar Fund LTD 2,000,000 2,352,700 0.62 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,640,685 1.49Luxembourg F&C Portfolios Fund - F&C Emerging Markets Bond 121,863 13,742,490 3.63Falcon Fund SICAV - Twelve-Falcon Insurance Linked Strategy Fund 102,288 7,481,688 1.97 ____________________________________________________________________________________________________________________________________________________________________________________________________________

21,224,178 5.60United Kingdom Riverstone Energy 130,000 1,407,386 0.37 ____________________________________________________________________________________________________________________________________________________________________________________________________________

United States SPDR S&P 500 ETF Trust 16,152 2,191,961 0.58 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL FUNDS 107,400,768 28.36 TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS

366,014,182 96.66

OTHER TRANSFERABLE SECURITIES SHARES Guernsey Renewables Infrastructure Group 624,999 7,560 0.00 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL SHARES 7,560 0.00 TOTAL OTHER TRANSFERABLE SECURITIES 7,560 0.00 TOTAL INVESTMENTS 366,021,742 96.66 OTHER ASSETS / (LIABILITIES) 12,662,330 3.34 ____________________________________________________

TOTAL NET ASSETS 378,684,072 100.00 ________________________________________________


F&C Portfolios Fund – F&C Diversified Growth Schedule of Investments as at 31 March 2014 (continued)




in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________

Unrealised Gain on Forward Foreign Exchange Contracts

AUD 6,000,000 NZD (6,406,440) 20.6.2014 5,404CHF 4,424,150 USD (5,000,000) 20.6.2014 8,409EUR 90,720 GBP (75,000) 30.4.2014 13EUR 18,132,430 JPY (2,549,898,412) 30.4.2014 163,806EUR 46,929,254 USD (64,552,362) 30.4.2014 89,917EUR 65,147,286 USD (89,611,720) 30.4.2014 124,822GBP 219,385,896 EUR (265,207,364) 30.4.2014 124,630GBP 52,814,078 EUR (63,844,953) 30.4.2014 30,003MXN 139,341,825 USD (10,500,000) 18.6.2014 83,896NOK 124,648,350 EUR (15,000,000) 18.6.2014 62,705NOK 66,027,426 EUR (7,900,000) 18.6.2014 78,859USD 5,107,986 CHF (4,460,860) 20.6.2014 39,775USD 5,381,084 EUR (3,900,000) 20.6.2014 4,736USD 11,200,000 JPY (1,137,860,640) 18.6.2014 106,443

____________________________________________________________________________________________________________________________________________________________________________________________________________


EUR 11,346,782 GBP (9,392,412) 30.4.2014 (12,688)EUR 3,259,399 GBP (2,698,000) 30.4.2014 (3,645)EUR 452,388 GBP (374,201) 30.4.2014 (182)EUR 1,863,305 GBP (1,541,266) 30.4.2014 (749)EUR 419,985 GBP (347,400) 30.4.2014 (172)EUR 392,727 JPY (55,938,177) 30.4.2014 (1,458)EUR 11,400,000 NOK (94,560,492) 18.6.2014 (26,840)EUR 3,900,000 USD (5,430,532) 20.6.2014 (40,617)

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Loss on Forward Foreign Exchange Contracts (86,351) FUTURES CONTRACTS

Description

Numberof


in EUR


in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________

Unrealised Gain on Futures Contracts FTSE 100 Dividend Index 225 20.6.2014 17,808,998 110,906FTSE/MIB Index Future 28 20.6.2014 2,996,000 14,889German Federal Republic Bonds 10YR 49 6.6.2014 7,025,620 45,080German Federal Republic Bonds 2YR 276 6.6.2014 30,474,540 26,220Kospi 200 Index Futures 53 12.6.2014 4,667,510 43,351S&P 500 E-Mini Index 429 20.6.2014 29,019,178 215,551Topix Index Future (41) 12.6.2014 (3,474,943) 47,661US Treasury Note 10YR (155) 19.6.2014 (13,888,994) 86,982US Treasury Note 2YR (620) 30.6.2014 (98,769,304) 158,841US Treasury Note 5YR (216) 30.6.2014 (18,642,396) 118,765 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Gain on Futures Contracts (42,783,791) 868,246 Unrealised Loss on Futures Contracts FTSE 100 Dividend Index 650 18.12.2014 1,859,480 (32,236)German Federal Republic Bonds 5YR (208) 6.6.2014 (26,076,960) (83,200)S&P 500 E-Mini Index (23) 20.6.2014 (1,555,807) (26,450)UK Long Gilt Bond Future (114) 26.6.2014 (15,103,750) (81,359) ____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Loss on Futures Contracts (40,877,037) (223,245) OPTION CONTRACTS

Currency NotionalAmount Description Maturity Date

Commitmentin EUR

MarketValue

in EUR


in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________

Purchased Options

EUR 15,000,000 Call EUR / Put CHF, Strike Price 1.22 2.5.2014 67,125 37,452 (29,673)EUR 80,000 Call Stoxx 50E Dividend, Strike Price 3.32 19.12.2014 360,000 798,337 438,337JPY 275,000 Call Nikkei 225, Strike Price: 16000 13.6.2014 1,473,607 397,178 (1,076,430)USD 61,000,000 Call USD / Put CNY, Strike Price 6.5 20.6.2014 371,324 3,182 (368,142)

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Purchased Options 2,272,056 1,236,149 (1,035,908) Written Options

EUR (15,000,000) Call EUR / Put CHF, Strike Price 1.24 2.5.2014 (21,000) (8,905) 12,095EUR (80,000) Call Stoxx 50E Dividend, Strike Price 0.8 19.12.2014 (98,512) (239,468) (140,956)JPY (275,000) Call Nikkei 225, Strike Price: 17500 13.6.2014 (641,942) (73,623) 568,319

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Written Options (761,454) (321,996) 439,458


F&C Portfolios Fund – F&C Diversified Growth Schedule of Investments as at 31 March 2014 (continued)

SWAP CONTRACTS


Pay / Receive

MaturityDate

Commitmentin EUR


in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________

Credit Default Swaps EUR (9,000,000) Continental AG 20.3.2019 (1,871,654) (15,200)EUR 3,600,000 Fiat Industrial SpA 20.12.2018 538,951 38,571EUR 9,000,000 GKN Holdings Plc. 20.3.2019 (69,305) (123,304)EUR 3,600,000 Jaguar Land Rover Automobile Plc. 20.3.2019 567,984 73,194EUR (3,600,000) Renault S.A. 20.3.2019 (19,487) 87,087USD 4,900,000 General Motors Co. 20.3.2019 613,118 (5,514)

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Credit Default Swaps (240,393) 54,834


Pay / Receive

MaturityDate

Commitmentin EUR


in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Return Swaps EUR 13,283,357 Barclays Capital Q-MA US Total Return. Index 21.5.2014 77,430 77,430EUR 10,593,643 DB Equity Low Beta Turnover Control Factor EUR ER Index 10.4.2018 72,281 72,281EUR 10,680,471 DB Equity Risk-Adjusted Momentum Factor EUR ER Index 19.3.2018 (83) (83)EUR 10,477,533 DB Equity Sector Neutral Quality Factor EUR ER Index 19.3.2018 — —EUR 10,778,208 DB Equity Sector Neutral Value Factor EUR ER Index 19.3.2018 334,468 334,468EUR 4,104,755 MSCI Daily Net TR Europe Ex UK Euro Index 20.8.2014 64,261 64,261EUR 22,217,875 MSCI Daily Net TR Europe Ex UK Euro Index 20.8.2014 347,688 347,688EUR 7,472,777 MSCI Daily Net TR Europe Ex UK Euro Index 25.8.2014 113,460 113,460USD 23,187,426 F&C Global Equity Absolute Return Index 12.12.2014 46,524 46,524USD 3,505,842 Nasdaq Biotech Index 23.2.2015 (272,504) (272,504)

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Total Return Swaps 783,525 783,525 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Unrealised Gain on Swap Contracts 1,254,964Unrealised Loss on Swap Contracts (416,605) ____________________________________________________________________________________________________________________________________________________________________________________________________________

The counterparties for forward foreign exchange contracts were Barclays Bank Plc., BNP Paribas S.A, Citibank N.A., Deutsche Bank AG London, HSBC Bank Plc., JPMorgan Chase Bank N.A. and Westpac Banking Corp. The counterparty for futures contracts was Goldman, Sachs & Co. The counterparties for option contracts were Deutsche Bank AG (total commitment of EUR 678,937) and Goldman, Sachs & Co (total commitment of EUR 831,665). The counterparties for swap contracts were Barclays Bank Plc., Morgan Stanley & Co. International Plc. and Deutsche Bank AG. Collateral held for the above described derivatives includes EUR 4,676,750 held as cash at the brokers, and a quantity of 418,000 France Government Bonds, 33,000 Belgium Government Bonds and 713,000 Bundesobligation held as non cash collateral.


F&C Portfolios Fund – F&C Diversified Growth Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets

Sovereign 66.97


Real Estate 0.51





F&C Portfolios Fund F&C Emerging Markets Bond Performance In the six months to 31 March 2014 the A share class and I share class (US dollar) returned 3.7% and 4.1% respectively (net of fees). By comparison, the JP Morgan EMBI Plus Index returned 4.1%. Over the same period the C (euros) hedged share class returned 3.6% (net of fees). The EMBI Plus hedged (euros) benchmark returned 4.0%.

In the first half of the period, exposure to more volatile markets cost a measure of performance. This positioning included the overweight in Venezuela, and the underweights in Ukraine and Argentina. In Ukraine, we did not anticipate the Russian loan which helped to compress yield spreads. On the positive side, positions in the off-benchmark countries Rwanda and Slovenia added value. In Slovenia, good progress in restructuring the banking sector helped bonds make gains in an environment of strengthening eurozone periphery markets. The underweight exposure to Turkey was helpful as the market fell in response to the developing political crisis. From January to the end of March, the portfolio enjoyed positive relative performance. Country allocation was important, and the significant underweighting of Russia - the worst performing market – had a notably positive impact. Being overweight in Indonesia also worked well as an improvement in the current account deficit helped to support bond prices. The position in Slovenian bonds boosted performance as the government made good progress in bank sector restructuring and privatisation. The under-weighting of Turkey detracted from performance, however, as bonds surprisingly rallied on strong local bank demand after the central bank emergency interest-rate hike. Our underweight in long-dated bonds also detracted from performance.

Market review Emerging market external debt made gains over the six months under review, albeit amidst heightened volatility. Despite fears about the impact of quantitative easing tapering on emerging market assets, yield spreads versus US Treasuries narrowed. Good returns were posted by Mexico, where the government passed an energy reform that could attract tens of billions of US dollars in investment in the oil, gas and electricity sectors. This led S&P to upgrade the country’s credit rating to BBB+. Venezuela suffered from further declines in foreign reserves and rising inflation but sentiment towards the market improved as the government reformed the exchange rate system in a long-awaited de facto devaluation that should ultimately help to resolve the fiscal imbalance. Russia’s outlook was downgraded, in reaction to the threat of sanctions following its annexation of Crimea, causing the market to be one of the worst performers over the period.

Market Outlook As global liquidity becomes less abundant, capital flows to emerging market countries will require a higher prospective return, thus putting pressure on certain countries with external deficits and low growth. The main impact should be on EM currencies, and we expect sovereign spreads to be cushioned by strong external balance sheets and the fact that one-third of planned sovereign issuance has already been completed this year. On valuations, after the widening last summer, emerging market debt looks attractive versus developed markets corporate credit. The main risk currently is the standoff between Russia and the West over Ukraine, which could impact global sentiment and therefore EM assets. A continuation of emerging market currency volatility could also force certain EM central banks to hike interest rates, presenting a risk of a further lowering of EM growth expectations negatively impacting banking sector non-performing loan rates and fiscal trends. Those countries where we observe a clear link between local market pressures and external spreads account for just over one-quarter of the EMBI Plus index. Another notable risk is a rapid jump in US Treasury yields, particularly since these have been more correlated with EM spreads. A Chinese hard economic landing is also a threat, particularly for commodity-exporting countries.

Jonathan Mann Portfolio Manager April 2014



F&C Portfolios Fund – F&C Emerging Markets Bond Schedule of Investments as at 31 March 2014


Date Currency

Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS BONDS Argentina Argentina Boden Bonds 7.00% 3.10.2015 USD 5,005,000 4,874,870 1.85Argentina Boden Bonds 7.00% 3.10.2015 USD 3,810,000 3,710,940 1.40 ____________________________________________________________________________________________________________________________________________________________________________________________________________

8,585,810 3.25Armenia Republic of Armenia 6.00% 30.9.2020 USD 3,374,000 3,500,525 1.32 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Australia CNOOC Curtis Funding No 1 4.50% 3.10.2023 USD 1,060,000 1,076,313 0.41 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Bahrain Bahrain Government International Bond 6.13% 1.8.2023 USD 1,840,000 2,016,640 0.76 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Bolivia Bolivian Government International Bond 4.88% 29.10.2022 USD 200,000 199,500 0.07 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Brazil Banco Nacional de Desenvolvimento Economico e Social 6.37% 16.6.2018 USD 1,400,000 1,568,000 0.59Brazilian Government International Bond 6.00% 17.1.2017 USD 1,000,000 1,115,250 0.42Brazilian Government International Bond 2.63% 5.1.2023 USD 1,710,000 1,513,778 0.57Brazilian Government International Bond 7.13% 20.1.2037 USD 360,000 433,800 0.16Brazilian Government International Bond 5.63% 7.1.2041 USD 3,490,000 3,546,712 1.34Brazilian Government International Bond - Series A 8.00% 15.1.2018 USD 1,311,111 1,467,789 0.56Vale 5.63% 11.9.2042 USD 1,500,000 1,413,375 0.54 ____________________________________________________________________________________________________________________________________________________________________________________________________________

11,058,704 4.18Bulgaria Bulgarian Energy Holding EAD 4.25% 7.11.2018 EUR 1,700,000 2,319,594 0.88 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Canada Pacific Rubiales Energy 5.13% 28.3.2023 USD 2,350,000 2,297,125 0.87 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Cayman Islands Country Garden Holdings 11.13% 23.2.2018 USD 575,000 624,594 0.24Kuwait Projects 9.38% 15.7.2020 USD 490,000 614,337 0.23Shimao Property Holdings 6.63% 14.1.2020 USD 1,300,000 1,241,500 0.47 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,480,431 0.94China Country Garden Holdings 11.13% 23.2.2018 USD 525,000 570,281 0.22 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Colombia Colombia Government International Bond 2.63% 15.3.2023 USD 400,000 361,000 0.14Colombia Government International Bond 6.13% 18.1.2041 USD 1,682,000 1,890,148 0.71Ecopetrol 5.88% 18.9.2023 USD 1,200,000 1,311,000 0.49Pacific Rubiales Energy 5.38% 26.1.2019 USD 1,690,000 1,761,825 0.67 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,323,973 2.01Croatia Croatia Government International Bond 6.25% 27.4.2017 USD 3,060,000 3,289,500 1.24Croatia Government International Bond 6.75% 5.11.2019 USD 881,000 973,505 0.37 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,263,005 1.61Dominican Republic Dominican Republic International Bond 9.04% 23.1.2018 USD 1,188,284 1,313,054 0.50Dominican Republic International Bond 7.50% 6.5.2021 USD 250,000 280,000 0.10Dominican Republic International Bond 6.60% 28.1.2024 USD 1,948,000 2,001,570 0.76Dominican Republic International Bond 5.88% 18.4.2024 USD 1,897,000 1,882,773 0.71 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,477,397 2.07Georgia Georgian Railway JSC 7.75% 11.7.2022 USD 2,300,000 2,466,750 0.93 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Honduras Honduras Government International Bond 7.50% 15.3.2024 USD 462,000 463,155 0.18Republic of Honduras 8.75% 16.12.2020 USD 1,900,000 2,090,000 0.79 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,553,155 0.97Hungary Hungary Government International Bond 4.13% 19.2.2018 USD 4,110,000 4,187,062 1.59Hungary Government International Bond 4.00% 25.3.2019 USD 1,600,000 1,592,800 0.60Hungary Government International Bond 6.25% 29.1.2020 USD 170,000 186,179 0.07Hungary Government International Bond 6.25% 29.1.2020 USD 172,000 188,369 0.07Hungary Government International Bond 5.75% 22.11.2023 USD 840,000 872,269 0.33Hungary Government International Bond 7.63% 29.3.2041 USD 678,000 785,429 0.30Hungary Government International Bond 7.63% 29.3.2041 USD 1,352,000 1,566,224 0.59MFB Magyar Fejlesztesi Bank Zrt 6.25% 21.10.2020 USD 1,580,000 1,671,838 0.63 ____________________________________________________________________________________________________________________________________________________________________________________________________________

11,050,170 4.18Indonesia Indonesia Government International Bond 6.88% 17.1.2018 USD 4,800,000 5,466,000 2.07Indonesia Government International Bond 5.88% 13.3.2020 USD 800,000 875,000 0.33Indonesia Government International Bond 5.88% 13.3.2020 USD 1,000,000 1,093,750 0.42Indonesia Government International Bond 4.88% 5.5.2021 USD 6,555,000 6,743,456 2.55Indonesia Government International Bond 3.38% 15.4.2023 USD 2,020,000 1,818,000 0.69Indonesia Government International Bond 8.50% 12.10.2035 USD 450,000 577,125 0.22Indonesia Government International Bond 6.63% 17.2.2037 USD 1,000,000 1,067,500 0.40Indonesia Government International Bond 6.63% 17.2.2037 USD 1,000,000 1,067,500 0.40Indonesia Government International Bond 4.63% 15.4.2043 USD 1,270,000 1,066,800 0.40Indonesia Government International Bond 6.75% 15.1.2044 USD 3,308,000 3,630,530 1.38Pertamina Persero 6.00% 3.5.2042 USD 1,600,000 1,420,000 0.54 ____________________________________________________________________________________________________________________________________________________________________________________________________________

24,825,661 9.40


F&C Portfolios Fund – F&C Emerging Markets Bond Schedule of Investments as at 31 March 2014 (continued)


Date Currency

Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

Ireland SCF Capital 5.38% 27.10.2017 USD 2,340,000 2,234,700 0.85 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Ivory Coast Ivory Coast Government International Bond 5.75% 31.12.2032 USD 4,550,000 4,277,000 1.62 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Mexico Alfa SAB de CV 5.25% 25.3.2024 USD 1,300,000 1,335,750 0.50Comision Federal de Electricidad 4.88% 15.1.2024 USD 1,500,000 1,530,000 0.58Mexico Government International Bond 5.95% 19.3.2019 USD 200,000 233,000 0.09Mexico Government International Bond 5.13% 15.1.2020 USD 2,180,000 2,427,975 0.92Mexico Government International Bond 3.63% 15.3.2022 USD 2,700,000 2,712,150 1.03Mexico Government International Bond 6.75% 27.9.2034 USD 1,800,000 2,209,500 0.84Mexico Government International Bond 6.05% 11.1.2040 USD 660,000 751,575 0.28Mexico Government International Bond 6.05% 11.1.2040 USD 350,000 398,563 0.15Mexico Government International Bond 4.75% 8.3.2044 USD 1,100,000 1,049,125 0.40Petroleos Mexicanos 6.50% 2.6.2041 USD 300,000 329,625 0.12Petroleos Mexicanos 5.50% 27.6.2044 USD 2,100,000 2,034,375 0.77Petroleos Mexicanos 6.38% 23.1.2045 USD 1,600,000 1,734,000 0.66Petroleos Mexicanos, V/R 2.26% 18.7.2018 USD 2,300,000 2,403,500 0.91 ____________________________________________________________________________________________________________________________________________________________________________________________________________

19,149,138 7.25Netherlands Petrobras Global Finance, V/R 3.11% 17.3.2020 USD 2,620,000 2,623,930 0.99Republic of Angola Via Northern Lights III 7.00% 16.8.2019 USD 3,380,000 3,718,845 1.41 ____________________________________________________________________________________________________________________________________________________________________________________________________________

6,342,775 2.40Panama Panama Government International Bond 5.20% 30.1.2020 USD 70,000 77,613 0.03Panama Government International Bond 7.13% 29.1.2026 USD 990,000 1,227,600 0.46Panama Government International Bond 7.13% 29.1.2026 USD 600,000 744,000 0.28Panama Government International Bond 8.88% 30.9.2027 USD 1,050,000 1,470,000 0.56Panama Government International Bond 6.70% 26.1.2036 USD 1,850,000 2,187,625 0.83 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,706,838 2.16Philippines Philippine Government International Bond 4.95% 15.1.2021 PHP 140,000,000 3,231,129 1.22Philippine Government International Bond 3.90% 26.11.2022 PHP 62,000,000 1,313,413 0.50Philippine Government International Bond 9.50% 2.2.2030 USD 1,525,000 2,375,187 0.90Philippine Government International Bond 6.38% 15.1.2032 USD 1,390,000 1,702,750 0.65Philippine Government International Bond 6.38% 23.10.2034 USD 2,510,000 3,126,519 1.18 ____________________________________________________________________________________________________________________________________________________________________________________________________________

11,748,998 4.45Romania Romanian Government International Bond 6.75% 7.2.2022 USD 790,000 923,806 0.35Romanian Government International Bond 4.88% 22.1.2024 USD 920,000 938,975 0.36Romanian Government International Bond 6.13% 22.1.2044 USD 760,000 805,600 0.30 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,668,381 1.01Russia Russian Foreign Bond - Eurobond 4.50% 4.4.2022 USD 2,600,000 2,583,750 0.98Russian Foreign Bond - Eurobond 7.50% 31.3.2030 USD 9,752,600 11,108,211 4.20Russian Foreign Bond - Eurobond 7.50% 31.3.2030 USD 5,255,250 5,985,730 2.27Russian Foreign Bond - Eurobond 5.63% 4.4.2042 USD 4,400,000 4,284,500 1.62 ____________________________________________________________________________________________________________________________________________________________________________________________________________

23,962,191 9.07Rwanda Rwanda International Government Bond 6.63% 2.5.2023 USD 1,150,000 1,127,000 0.43 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Serbia Republic of Serbia 5.88% 3.12.2018 USD 1,280,000 1,360,000 0.51 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Slovenia Slovenia Government Bond 4.63% 9.9.2024 EUR 1,110,000 1,662,802 0.63Slovenia Government International Bond 4.75% 10.5.2018 USD 1,400,000 1,501,528 0.57Slovenia Government International Bond 4.13% 18.2.2019 USD 1,120,000 1,160,880 0.44Slovenia Government International Bond 5.25% 18.2.2024 USD 4,270,000 4,440,031 1.68 ____________________________________________________________________________________________________________________________________________________________________________________________________________

8,765,241 3.32South Africa Eskom Holdings SOC 6.75% 6.8.2023 USD 500,000 530,625 0.20 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Sri Lanka National Savings Bank 8.88% 18.9.2018 USD 1,430,000 1,601,600 0.61 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Turkey Turkey Government International Bond 7.50% 14.7.2017 USD 4,130,000 4,666,900 1.77Turkey Government International Bond 6.75% 3.4.2018 USD 800,000 887,000 0.33Turkey Government International Bond 6.75% 3.4.2018 USD 800,000 887,000 0.34Turkey Government International Bond 7.50% 7.11.2019 USD 1,070,000 1,233,175 0.47Turkey Government International Bond 7.00% 5.6.2020 USD 1,250,000 1,414,063 0.53Turkey Government International Bond 6.25% 26.9.2022 USD 4,890,000 5,299,537 2.01Turkey Government International Bond 5.75% 22.3.2024 USD 1,350,000 1,400,625 0.53Turkey Government International Bond 7.38% 5.2.2025 USD 1,650,000 1,903,688 0.72Turkey Government International Bond 6.88% 17.3.2036 USD 3,150,000 3,433,500 1.30Turkey Government International Bond 6.88% 17.3.2036 USD 2,120,000 2,310,800 0.87Turkey Government International Bond 6.75% 30.5.2040 USD 1,135,000 1,220,125 0.46Turkey Government International Bond 6.00% 14.1.2041 USD 3,190,000 3,146,137 1.19Turkiye Garanti Bankasi, V/R 2.74% 20.4.2016 USD 700,000 689,500 0.26 ____________________________________________________________________________________________________________________________________________________________________________________________________________

28,492,050 10.78Ukraine Ukraine Government International Bond 7.80% 28.11.2022 USD 1,650,000 1,544,813 0.59Ukraine Government International Bond 7.50% 17.4.2023 USD 1,650,000 1,542,750 0.58 ____________________________________________________________________________________________________________________________________________________________________________________________________________

3,087,563 1.17




Date Currency

Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

United Arab Emirates Dubai Electricity & Water Authority 7.38% 21.10.2020 USD 950,000 1,155,200 0.44 ____________________________________________________________________________________________________________________________________________________________________________________________________________

United States Brazil Loan Trust 1 5.48% 24.7.2023 USD 1,950,000 1,986,563 0.75Cemex Finance LLC 6.00% 1.4.2024 USD 1,070,000 1,074,013 0.41International Finance 7.80% 3.6.2019 INR 92,850,000 1,561,997 0.59Southern Copper 5.25% 8.11.2042 USD 1,580,000 1,370,079 0.52Southern Copper 5.25% 8.11.2042 USD 450,000 390,212 0.15 ____________________________________________________________________________________________________________________________________________________________________________________________________________

6,382,864 2.42Venezuela Petroleos de Venezuela 8.50% 2.11.2017 USD 2,000,000 1,677,500 0.64Petroleos de Venezuela 5.38% 12.4.2027 USD 4,500,000 2,435,625 0.92Venezuela Government International Bond 5.75% 26.2.2016 USD 3,836,000 3,366,090 1.27Venezuela Government International Bond 5.75% 26.2.2016 USD 529,000 464,198 0.18Venezuela Government International Bond 7.00% 1.12.2018 USD 2,000,000 1,530,000 0.58Venezuela Government International Bond 7.75% 13.10.2019 USD 6,000,300 4,590,229 1.74Venezuela Government International Bond 12.75% 23.8.2022 USD 1,760,000 1,623,600 0.61Venezuela Government International Bond 9.00% 7.5.2023 USD 2,570,000 1,901,800 0.72Venezuela Government International Bond 8.25% 13.10.2024 USD 1,700,000 1,190,000 0.45Venezuela Government International Bond 7.65% 21.4.2025 USD 2,750,000 1,856,250 0.70Venezuela Government International Bond 9.25% 15.9.2027 USD 5,710,000 4,318,187 1.63Venezuela Government International Bond 9.25% 15.9.2027 USD 4,400,000 3,327,500 1.26Venezuela Government International Bond 7.00% 31.3.2038 USD 1,910,000 1,174,650 0.45 ____________________________________________________________________________________________________________________________________________________________________________________________________________

29,455,629 11.15Vietnam Vietnam Government International Bond 6.75% 29.1.2020 USD 3,300,000 3,704,250 1.40 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL BONDS 251,817,077 95.31 TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS

251,817,077 95.31

TOTAL INVESTMENTS 251,817,077 95.31 OTHER ASSETS / (LIABILITIES) 12,384,300 4.69 ________________________________________________

TOTAL NET ASSETS 264,201,377 100.00 ________________________________________________






in USD ____________________________________________________________________________________________________________________________________________________________________________________________________________


EUR 11,868,216 USD (16,308,507) 30.4.2014 47,859EUR 130,701,248 USD (179,600,897) 30.4.2014 527,062EUR 685,386 USD (941,625) 30.4.2014 2,951EUR 60,411 USD (82,997) 30.4.2014 260

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Gain on Forward Foreign Exchange Contracts 578,132 The Counterparty for forward foreign exchange contracts was State Street Bank & Trust.


F&C Portfolios Fund – F&C Emerging Markets Bond Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets

Sovereign 77.32

Oil & Gas 7.99


Transportation 1.78



Real Estate 0.93

Regional 0.75


Supranational 0.59






F&C Portfolios Fund F&C Euro Inflation Linked Bond Performance In the six months to 31 March 2014 the total return for the I share class was 1.03% (net of fees) against 1.02% for the Barclays European Inflation Linked Index. The A share class returned 0.87% (net of fees) against the same benchmark.

The portfolio outperformed the benchmark over the first three months of the period, with the underweight in long-dated inflation-linked bonds subtracting from performance as the yield curve flattened slightly. However, the overweight in France and Italy was beneficial as spreads versus German bunds tightened. The performance in the last three months was in line with the benchmark. The overweighting of Italy added to performance as spreads tightened. However, the underweight duration position was unhelpful as the yields of inflation-linked bonds fell as bond markets rallied.

Market Review European inflation-linked bonds posted only modest gains over the six months under review. December in particular proved to be a poor month as the market was held back by the weak performance of underlying conventional bonds as the eurozone economy showed further signs of improvement. Inflation remained a subject of conjecture in the market. The headline rate eased to 0.7% in February and the estimate for March came out at the low level of 0.5%. Even though inflation dropped significantly, inflation-linked bond performance was in line with nominal bonds and investors anticipated that the ECB would undertake reflationary measures.

Outlook Given the low level of eurozone inflation there was speculation that the ECB would need to undertake quantitative easing in order to avert outright deflation. While the IMF stated that it felt the ECB had enough monetary policy flexibility to keep inflation at bay, it cautioned that a low inflationary environment could become established. Other commentators have remarked that inflation could spring back as a result of stabilising food and energy prices. This would boost the index-linked bond market as break-even inflation points are currently low.

Michiel de Bruin Portfolio Manager April 2014



F&C Portfolios Fund – F&C Euro Inflation Linked Bond Schedule of Investments as at 31 March 2014


Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS BONDS France Caisse d'Amortissement de la Dette Sociale 1.85% 25.7.2019 EUR 1,212,862 1,340,880 5.53France Government Bond OAT 1.60% 25.7.2015 EUR 625,426 651,972 2.69France Government Bond OAT 1.00% 25.7.2017 EUR 2,143,659 2,274,487 9.39France Government Bond OAT 0.25% 25.7.2018 EUR 348,584 360,889 1.49France Government Bond OAT 1.30% 25.7.2019 EUR 1,063,702 1,157,414 4.78France Government Bond OAT 2.25% 25.7.2020 EUR 2,281,548 2,630,351 10.85France Government Bond OAT 1.10% 25.7.2022 EUR 1,314,971 1,416,237 5.84France Government Bond OAT 0.25% 25.7.2024 EUR 2,351,324 2,302,628 9.50France Government Bond OAT 1.85% 25.7.2027 EUR 1,546,362 1,778,625 7.34France Government Bond OAT 3.40% 25.7.2029 EUR 600,340 835,805 3.45France Government Bond OAT 3.15% 25.7.2032 EUR 1,254,244 1,738,201 7.17France Government Bond OAT 1.80% 25.7.2040 EUR 618,285 737,665 3.04French Treasury Note BTAN 0.45% 25.7.2016 EUR 1,436,821 1,487,513 6.14 ____________________________________________________________________________________________________________________________________________________________________________________________________________

18,712,667 77.21Germany Bundesrepublik Deutschland Bundesobligation Inflation Linked Bond 0.75% 15.4.2018 EUR 1,386,018 1,462,100 6.03Deutsche Bundesrepublik Inflation Linked Bond 1.50% 15.4.2016 EUR 1,821,403 1,903,513 7.86Deutsche Bundesrepublik Inflation Linked Bond 1.75% 15.4.2020 EUR 956,466 1,078,702 4.45 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,444,315 18.34Italy Italy Buoni Poliennali Del Tesoro 2.60% 15.9.2023 EUR 751,807 789,813 3.26 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL BONDS 23,946,795 98.81 TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS

23,946,795 98.81


TOTAL NET ASSETS 24,236,330 100.00 ________________________________________________


F&C Portfolios Fund – F&C Euro Inflation Linked Bond Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets

Sovereign 98.81





F&C Portfolios Fund F&C European Equity Performance In the six months to 31 March 2014, the net asset value of the portfolio rose by 8.0%. This compared to a return of 8.2% for the benchmark, the FTSE World Europe NR Index. All figures are net of fees.

The portfolio was slightly behind its benchmark for the six month period. Adidas detracted as a result of emerging market and foreign exchange concerns. We nevertheless remain confident in the long-term investment thesis despite this short-term setback. Value was added by Intesa Sanpaolo. The Italian banking group has continued to improve its capital position and optimise its balance sheet at the same time as its operating environment is becoming more favourable. Returns were also boosted by the textile maintenance company Berendsen, whose rising share price reflected the operational improvements being made by the management. Other winners for the portfolio during the period included Booker Group and Investment AB Kinnevik.

Market Review European equities made decent gains over the six month period. There were some encouraging signs for investors as the eurozone economy began to show improvement. However, growth remained fragile enough for the ECB to cut interest rates to 0.25% in November. There were some improved data from the distressed southern European states as exports rebounded. This helped Greece, Ireland, Spain and Italy to post impressive returns over the period. Ireland and Spain also announced that they would be exiting the eurozone’s bailout programmes. Investors were cheered by news that business activity across the eurozone was growing more rapidly than expected. The sharp fall in inflation to just 0.5% caused speculation the ECB would need to conduct its own quantitative easing.

Outlook European equities have recovered to more reasonable valuations following the prolonged crisis and we are encouraged by signs of improving economic activity within the region. This should ultimately lead to an improvement in earnings which remain significantly below previous peaks. As an asset class, European equities continue to look attractive on absolute and relative measures. In addition to this, corporate balance sheets remain strong and cash generation is set to increase. The outcome of this is likely to be a combination of increased merger and acquisition activity and increased returns to shareholders. Our investment philosophy remains focused on the purchase of high-quality businesses run by proven managers and we want to be able to buy them at significant discount to intrinsic value. Ultimately we believe these are the companies who will, over the long run, be able to outperform the market as a result of successful operations.

David Moss Portfolio Manager April 2014 Note: The information contained in this report is historical and not indicative of future performance. All performance figures provided represent total returns. Statements contained in this report concerning future performance are the opinions of management and there can be no guarantee that such opinions will prove to be correct.

The accompanying notes form an integral part of these financial statements32

F&C Portfolios Fund – F&C European Equity Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Finland Amer Sports 39,382 607,270 1.19 ____________________________________________________________________________________________________________________________________________________________________________________________________________

France Air Liquide 11,413 1,122,126 2.21AXA 57,967 1,093,548 2.15BNP Paribas 25,007 1,400,142 2.75Publicis Groupe 12,955 849,589 1.67Schneider Electric 20,021 1,288,351 2.53 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,753,756 11.31Germany Adidas 10,942 859,385 1.69Allianz 9,756 1,197,061 2.35BASF 18,091 1,459,582 2.87Bayer 16,616 1,631,359 3.21Continental 6,046 1,051,399 2.07Deutsche Post 35,436 955,709 1.88SAP 18,233 1,071,371 2.10 ____________________________________________________________________________________________________________________________________________________________________________________________________________

8,225,866 16.17Ireland C&C Group 23,805 112,574 0.22C&C Group 139,674 663,452 1.30CRH 4,575 92,392 0.18CRH 32,430 657,065 1.29Glanbia 92,458 1,029,982 2.02Kerry Group 'A' 12,126 668,870 1.32Kerry Group 'A' 4,390 243,250 0.48Smurfit Kappa Group 39,318 691,997 1.36 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,159,582 8.17Italy Intesa Sanpaolo 546,113 1,343,438 2.64 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Netherlands Aegon 127,369 848,660 1.67Akzo Nobel 17,806 1,054,649 2.07Heineken 13,629 688,537 1.35ING Groep 120,475 1,237,881 2.43Koninklijke Philips 34,639 883,468 1.74Reed Elsevier 80,741 1,266,422 2.49Unilever 41,428 1,236,004 2.43 ____________________________________________________________________________________________________________________________________________________________________________________________________________

7,215,621 14.18Norway DNB 65,946 831,952 1.63 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Sweden Betsson 26,722 704,238 1.38Sandvik 98,072 1,003,663 1.97SKF 'B' 52,628 975,885 1.92Svenska Handelsbanken 'A' 33,290 1,210,010 2.38Telefonaktiebolaget LM Ericsson 'B' 90,164 869,761 1.71 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,763,557 9.36Switzerland EFG International 88,677 837,622 1.65Novartis 41,669 2,566,928 5.04Roche Holding 10,592 2,305,489 4.53Swatch Group 2,096 953,763 1.87Syngenta 3,661 1,005,253 1.98UBS 96,400 1,445,830 2.84 ____________________________________________________________________________________________________________________________________________________________________________________________________________

9,114,885 17.91United Kingdom Barclays 383,328 1,082,227 2.13Berendsen 80,516 1,088,857 2.14Booker Group 445,361 889,418 1.75Diageo 53,466 1,203,569 2.37Fidessa Group 29,416 902,716 1.77GlaxoSmithKline 39,774 765,690 1.51Kingfisher 183,905 937,421 1.84Lloyds Banking Group 931,332 840,971 1.65Smiths Group 55,004 846,308 1.66 ____________________________________________________________________________________________________________________________________________________________________________________________________________


50,573,104 99.38


TOTAL NET ASSETS 50,886,434 100.00 ________________________________________________


F&C Portfolios Fund – F&C European Equity Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets




Chemicals 9.13

Insurance 8.60


Software 3.87

Retail 3.71

Leisure & Tourism 2.57

Electrical Component & Equipment 2.53

Media 2.49



Machinery-Diversified 1.97

Transportation 1.88

Semiconductors 1.74


Advertising 1.67


Forest Products & Paper 1.36





F&C Portfolios Fund F&C European Growth and Income Performance In the six months to 31 March 2014 the value of the portfolio’s Euro A shares rose by 9.7% and the GBP A shares by 8.4%. This compared with the benchmark FTSE All World Developed Europe Index rise of 8.2% (euro basis) and 7.0% (sterling basis) respectively. All figures are net of fees.

The portfolio outperformed its benchmark over the six month period driven by positive stock selection. Value was added by Intesa Sanpaolo. The Italian banking group has continued to improve its capital position and optimise its balance sheet at the same time as its operating environment is becoming more favourable. Returns were also boosted by the textile maintenance company Berendsen, whose rising share price reflected the operational improvements being made by the management. Our holding in Booker Group also boosted returns. Negative performance came from UK media and publishing company Pearson on the back of a profit warning. The underlying causes of the profit warning brought our original investment thesis into question and we subsequently sold the position.

Market Review European equities made decent gains over the six month period. There were some encouraging signs for investors as the eurozone economy began to show improvement. However, growth remained fragile enough for the ECB to cut interest rates to 0.25% in November. There were some improved data from the distressed southern European states as exports rebounded. This helped Greece, Ireland, Spain and Italy to post impressive returns over the period. Ireland and Spain also announced that they would be exiting the eurozone’s bailout programmes. Investors were cheered by news that business activity across the eurozone was growing more rapidly than expected. The sharp fall in inflation to just 0.5% caused speculation the ECB would need to conduct its own quantitative easing.

Outlook European equities have recovered to more reasonable valuations following the prolonged crisis and we are encouraged by signs of improving economic activity within the region. This should ultimately lead to an improvement in earnings which remain significantly below previous peaks. As an asset class, European equities continue to look attractive on absolute and relative measures. In addition to this, corporate balance sheets remain strong and cash generation is set to increase. The outcome of this is likely to be a combination of increased merger and acquisition activity and increased returns to shareholders. Our investment philosophy remains focused on the purchase of high-quality businesses run by proven managers and we want to be able to buy them at significant discount to intrinsic value. Ultimately we believe these are the companies who will, over the long run, be able to outperform the market as a result of successful operations.

Mark Nichols Portfolio Manager April 2014 Note: The information contained in this report is historical and not indicative of future performance. All performance figures provided represent total returns. Statements contained in this report concerning future performance are the opinions of management and there can be no guarantee that such opinions will prove to be correct.


F&C Portfolios Fund – F&C European Growth and Income Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES France Air Liquide 8,904 875,441 1.50AXA 87,129 1,643,689 2.82BNP Paribas 24,197 1,354,790 2.33Schneider Electric 20,311 1,307,013 2.25 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,180,933 8.90Germany Allianz 13,323 1,634,732 2.81BASF 14,616 1,179,219 2.03Bayer 12,541 1,231,275 2.11Continental 5,640 980,796 1.68Deutsche Boerse 17,356 1,002,656 1.72Deutsche Post 53,878 1,453,090 2.50SAP 27,267 1,602,209 2.75 ____________________________________________________________________________________________________________________________________________________________________________________________________________

9,083,977 15.60Ireland C&C Group 2,257 10,673 0.02C&C Group 320,403 1,521,914 2.61CRH 14,595 294,746 0.51CRH 50,510 1,023,385 1.76Glanbia 142,325 1,585,501 2.72Kerry Group 'A' 11,844 653,315 1.12Origin Enterprises 115,051 874,388 1.50 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,963,922 10.24Italy Eni 67,906 1,236,568 2.12Intesa Sanpaolo 413,817 1,017,990 1.75Intesa Sanpaolo 520,392 1,072,007 1.84 ____________________________________________________________________________________________________________________________________________________________________________________________________________

3,326,565 5.71Netherlands Akzo Nobel 24,461 1,448,825 2.49Exact Holding 36,850 1,016,139 1.74ING Groep 101,225 1,040,087 1.79Reed Elsevier 81,450 1,277,543 2.19Unilever 38,641 1,152,854 1.98Wolters Kluwer 63,889 1,308,447 2.25 ____________________________________________________________________________________________________________________________________________________________________________________________________________

7,243,895 12.44Norway DNB 112,793 1,422,958 2.44 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Sweden Betsson 35,800 943,481 1.62Investment Kinnevik 'B' 22,056 589,908 1.01Sandvik 71,295 729,629 1.25SKF 'B' 40,980 759,895 1.31Svenska Handelsbanken 'A' 56,518 2,054,292 3.53Swedbank 'A' 44,592 866,794 1.49 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,943,999 10.21Switzerland EFG International 56,681 535,395 0.92Novartis 39,413 2,427,952 4.17Roche Holding 10,029 2,182,945 3.75Swatch Group 2,068 941,022 1.62UBS 79,689 1,195,194 2.05 ____________________________________________________________________________________________________________________________________________________________________________________________________________

7,282,508 12.51United Kingdom Berendsen 125,806 1,701,336 2.92Booker Group 887,456 1,772,314 3.04Daily Mail & General Trust 'A' 110,429 1,160,780 1.99Diageo 44,053 991,673 1.70Fidessa Group 20,142 618,116 1.06GlaxoSmithKline 52,735 1,015,202 1.74HSBC Holdings 173,272 1,273,273 2.19Kingfisher 251,794 1,283,473 2.21Sage Group 138,793 701,931 1.21Smiths Group 75,084 1,155,264 1.98WPP 57,056 853,725 1.47 ____________________________________________________________________________________________________________________________________________________________________________________________________________


57,975,844 99.56


TOTAL NET ASSETS 58,230,247 100.00 ________________________________________________


F&C Portfolios Fund – F&C European Growth and Income Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets




Insurance 7.42

Software 6.76

Media 6.43

Chemicals 6.02

Retail 3.83



Transportation 2.50



Oil & Gas 2.12



Agriculture 1.50

Advertising 1.47






F&C Portfolios Fund F&C European High Yield Bond Performance In the six months to 31 March 2014, the portfolio rose by 7.0% (net of fees) in euro terms. The portfolio outperformed its benchmark, the Merrill Lynch European High Yield BB-B Constrained Index, ex-subordinated financials, which rose 6.3%.

At the start of the period, the portfolio’s overweighting of B-rated bonds contributed positively to performance, as did the off-benchmark position in CCC-rated issues and financial securities. Individual credit selection continued to be beneficial, although the impact of our emerging market exposure was mixed. The portfolio’s exposure to European peripheral names added value in aggregate. The underweighting of BB-rated securities was generally helpful. Although they suffered weakness at the start of 2014, BB bonds recovered sufficiently to erase earlier losses and make a positive overall contribution by the end of the period.

Market Review High yield bonds posted solid gains over the review period. With the US Federal Reserve suggesting that interest rates would remain low for some time to come, the market was supported by investors’ ongoing search for income. The period was one of fragile risk appetite as weak economic data from China and tensions between Russia and Ukraine over Crimea hit confidence. However, in the final weeks of the period, investors became more bullish and the market rallied, with emerging market bonds among the major gainers.

Outlook High yield bonds are likely to remain sensitive to fluctuations in sentiment as the US Federal Reserve continues to taper its asset purchasing programme. Despite offering lower coupons in historic terms, high yield bonds continue to look attractive, with their appeal lying predominantly in the income they generate and their relatively low interest rate sensitivity. We believe austerity policies will continue to dampen economic growth and central banks, especially the ECB, will be obliged to provide ongoing support to markets. This suggests that interest rates will remain low still for some time, thus supporting the demand for high yield.

Chris Brils Portfolio Manager April 2014



F&C Portfolios Fund – F&C European High Yield Bond Schedule of Investments as at 31 March 2014


Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS BONDS Cayman Islands Brakes Capital 7.13% 15.12.2018 GBP 215,000 266,569 0.87UPCB Finance 7.63% 15.1.2020 EUR 126,000 135,621 0.44Viridian Group FundCo II 11.13% 1.4.2017 EUR 327,000 366,240 1.20 ____________________________________________________________________________________________________________________________________________________________________________________________________________

768,430 2.51Croatia Agrokor 9.13% 1.2.2020 EUR 330,000 375,870 1.23 ____________________________________________________________________________________________________________________________________________________________________________________________________________

France Cegedim 6.75% 1.4.2020 EUR 305,000 326,808 1.07Darty Financement SAS 5.88% 1.3.2021 EUR 220,000 228,129 0.75Financiere Gaillon 8 SAS 7.00% 30.9.2019 EUR 110,000 110,770 0.36La Financiere Atalian 7.25% 15.1.2020 EUR 300,000 321,330 1.05Labeyrie Fine Foods SAS 5.63% 15.3.2021 EUR 100,000 102,625 0.34Lafarge 6.75% 16.12.2019 EUR 160,000 187,800 0.62Peugeot 6.50% 18.1.2019 EUR 245,000 274,275 0.90Renault 3.63% 19.9.2018 EUR 310,000 327,541 1.07Renault 3.13% 5.3.2021 EUR 60,000 60,718 0.20Rexel 5.13% 15.6.2020 EUR 250,000 269,375 0.88SPCM 5.50% 15.6.2020 EUR 310,000 336,750 1.10Wendel 3.75% 21.1.2021 EUR 300,000 307,506 1.01 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,853,627 9.35Germany Deutsche Raststaetten Gruppe IV 6.75% 30.12.2020 EUR 200,000 219,500 0.72Safari Holding Verwaltungs 8.25% 15.2.2021 EUR 135,000 145,969 0.48ThyssenKrupp 3.13% 25.10.2019 EUR 200,000 201,205 0.66Trionista Holdco 5.00% 30.4.2020 EUR 400,000 420,240 1.38Unitymedia Hessen / NRW 5.50% 15.9.2022 EUR 300,000 322,125 1.05 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,309,039 4.29Ireland AG Spring Finance 7.50% 1.6.2018 EUR 300,000 321,975 1.05Inaer Aviation Finance 9.50% 1.8.2017 EUR 215,000 230,587 0.76Smurfit Kappa Acquisitions 4.13% 30.1.2020 EUR 200,000 213,500 0.70 ____________________________________________________________________________________________________________________________________________________________________________________________________________

766,062 2.51Italy Buzzi Unicem 6.25% 28.9.2018 EUR 290,000 328,127 1.08Cerved Group 8.00% 15.1.2021 EUR 100,000 110,766 0.36Gamenet 7.25% 1.8.2018 EUR 150,000 156,000 0.51Gtech, V/R 8.25% 31.3.2066 EUR 220,000 239,066 0.78Marcolin SpA 8.50% 15.11.2019 EUR 375,000 398,438 1.31Sisal Holding Istituto di Pagamento 7.25% 30.9.2017 EUR 115,000 118,888 0.39TeamSystem Holding 7.38% 15.5.2020 EUR 145,000 155,468 0.51Telecom Italia SpA 4.88% 25.9.2020 EUR 500,000 527,058 1.73Zobele Holding SpA 7.88% 1.2.2018 EUR 350,000 376,250 1.23 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,410,061 7.90Japan eAccess 8.38% 1.4.2018 EUR 260,000 285,064 0.93 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Jersey AA Bond 9.50% 31.7.2019 GBP 200,000 274,271 0.90AA PIK 9.50% 7.11.2019 GBP 150,000 190,514 0.62Aston Martin Capital 9.25% 15.7.2018 GBP 300,000 394,651 1.29Hastings Insurance Group Finance 8.00% 21.10.2020 GBP 235,000 298,472 0.98 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,157,908 3.79Luxembourg Bilbao Luxembourg 10.50% 1.12.2018 EUR 300,000 312,750 1.02Bormioli Rocco Holdings 10.00% 1.8.2018 EUR 200,000 219,000 0.72Cabot Financial Luxembourg 6.50% 1.4.2021 GBP 115,000 138,845 0.45Cirsa Funding Luxembourg 8.75% 15.5.2018 EUR 228,000 239,400 0.78CNH Industrial Finance Europe 2.75% 18.3.2019 EUR 280,000 278,337 0.91Elior Finance & Co 6.50% 1.5.2020 EUR 250,000 275,000 0.90Empark Funding V/R 5.80% 15.12.2019 EUR 100,000 102,365 0.33Empark Funding 6.75% 15.12.2019 EUR 150,000 160,905 0.53Fiat Finance & Trade 6.63% 15.3.2018 EUR 470,000 522,123 1.71Fiat Finance & Trade 4.75% 22.3.2021 EUR 100,000 103,367 0.34Fiat Industrial Finance Europe 6.25% 9.3.2018 EUR 150,000 170,690 0.56GCL Holdings 9.38% 15.4.2018 EUR 260,000 280,745 0.92Gestamp Funding Luxembourg 5.88% 31.5.2020 EUR 330,000 353,100 1.16Greif Luxembourg Finance 7.38% 15.7.2021 EUR 250,000 294,700 0.97HeidelbergCement Finance Luxembourg 7.50% 3.4.2020 EUR 300,000 372,375 1.22INEOS Group Holdings 5.75% 15.2.2019 EUR 120,000 123,286 0.40KION Finance 6.75% 15.2.2020 EUR 175,000 193,069 0.63Lecta 8.88% 15.5.2019 EUR 200,000 197,448 0.65Sunrise Communications Holdings 8.50% 31.12.2018 EUR 320,000 346,630 1.14Telenet Finance V Luxembourg 6.25% 15.8.2022 EUR 315,000 346,500 1.13Wind Acquisition Finance 7.38% 15.2.2018 EUR 335,000 353,592 1.16Xefin Lux 8.00% 1.6.2018 EUR 250,000 268,125 0.88 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,389,082 18.51Netherlands Adria Bidco 7.88% 15.11.2020 EUR 250,000 260,000 0.85Cable & Wireless International Finance 8.63% 25.3.2019 GBP 250,000 352,312 1.15Cable Communications Systems 7.50% 1.11.2020 EUR 240,000 253,800 0.83Carlson Wagonlit 7.50% 15.6.2019 EUR 360,000 394,200 1.29EDP Finance 4.13% 20.1.2021 EUR 250,000 262,438 0.86Fresenius Finance 3.00% 1.2.2021 EUR 200,000 203,000 0.66Grupo Isolux Corsan Finance 6.63% 15.4.2021 EUR 230,000 231,035 0.76


F&C Portfolios Fund – F&C European High Yield Bond Schedule of Investments as at 31 March 2014 (continued)


Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

Hertz Holdings Netherlands 4.38% 15.1.2019 EUR 400,000 410,208 1.34InterGen 7.50% 30.6.2021 GBP 300,000 384,657 1.26InterXion Holding 6.00% 15.7.2020 EUR 250,000 270,510 0.89Koninklijke, V/R 6.88% 14.3.2073 GBP 175,000 218,765 0.72OI European Group 4.88% 31.3.2021 EUR 250,000 268,760 0.88Portugal Telecom International Finance 5.88% 17.4.2018 EUR 150,000 166,688 0.55Schaeffler Holding Finance 6.88% 15.8.2018 EUR 280,000 298,690 0.98Stork Technical Services Holdings 11.00% 15.8.2017 EUR 200,000 212,040 0.70UPC Holding 6.75% 15.3.2023 EUR 225,000 246,600 0.81 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,202,668 14.53Portugal Brisa Concessao Rodoviaria 6.88% 2.4.2018 EUR 100,000 114,180 0.37Brisa Concessao Rodoviaria 3.88% 1.4.2021 EUR 200,000 200,108 0.66 ____________________________________________________________________________________________________________________________________________________________________________________________________________

314,288 1.03South Africa Edcon Holdings Pty 13.38% 30.6.2019 EUR 150,000 135,771 0.45Edcon Pty 9.50% 1.3.2018 EUR 150,000 145,500 0.48Peermont Global 7.75% 30.4.2014 EUR 500,000 498,750 1.63 ____________________________________________________________________________________________________________________________________________________________________________________________________________

780,021 2.56Spain Abengoa Finance SAU 8.88% 5.2.2018 EUR 150,000 170,438 0.56Almirall 4.63% 1.4.2021 EUR 100,000 102,086 0.33Campofrio Food Group 8.25% 31.10.2016 EUR 100,000 104,875 0.34Ence Energia y Celulosa S.A 7.25% 15.2.2020 EUR 250,000 268,125 0.88 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,370,416 2.11Sweden Ciech Group Financing 9.50% 30.11.2019 EUR 175,000 203,149 0.67Eileme 2 11.75% 31.1.2020 EUR 335,000 403,675 1.32Stena 6.13% 1.2.2017 EUR 129,000 139,642 0.46TVN Finance III 7.38% 15.12.2020 EUR 240,000 262,800 0.86 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,009,266 3.31United Kingdom Anglian Water Osprey Financing 7.00% 31.1.2018 GBP 200,000 260,091 0.85Arqiva Broadcast Finance 9.50% 31.3.2020 GBP 200,000 277,002 0.91Bakkavor Finance 2 8.75% 15.6.2020 GBP 100,000 135,325 0.44Boparan Finance 9.75% 30.4.2018 EUR 145,000 156,781 0.51DFS Furniture Holdings 7.63% 15.8.2018 GBP 250,000 326,596 1.07Enterprise Inns 6.50% 6.12.2018 GBP 340,000 434,917 1.43Grainger 5.00% 16.12.2020 GBP 195,000 247,757 0.81House of Fraser Funding 8.88% 15.8.2018 GBP 250,000 329,352 1.08IDH Finance 6.00% 1.12.2018 GBP 300,000 379,214 1.24Jaguar Land Rover Automotive 8.25% 15.3.2020 GBP 185,000 255,108 0.84Kelda Finance No 3 5.75% 17.2.2020 GBP 175,000 215,916 0.71OTE 4.63% 20.5.2016 EUR 200,000 209,000 0.68Pendragon 6.88% 1.5.2020 GBP 225,000 293,256 0.96R&R Ice Cream 8.38% 15.11.2017 EUR 200,000 213,503 0.70Soho House Bond 9.13% 1.10.2018 GBP 135,000 179,015 0.59Virgin Media Secured Finance 6.00% 15.4.2021 GBP 225,000 288,833 0.95William Hill 4.25% 5.6.2020 GBP 225,000 268,081 0.88 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,469,747 14.65United States Belden 5.50% 15.4.2023 EUR 300,000 308,550 1.01Huntsman International 5.13% 15.4.2021 EUR 250,000 259,688 0.85MPT Operating Partnership 5.75% 1.10.2020 EUR 300,000 321,802 1.05Rain CII Carbon 8.50% 15.1.2021 EUR 290,000 295,800 0.97 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,185,840 3.88 TOTAL BONDS 28,416,802 93.09 TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS

28,416,802 93.09

OTHER TRANSFERABLE SECURITIES BONDS Jersey Corsair Jersey, V/R 5.19% 24.3.2017 EUR 300,000 333,990 1.10 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL BONDS 333,990 1.10 TOTAL OTHER TRANSFERABLE SECURITIES 333,990 1.10 TOTAL INVESTMENTS 28,750,792 94.19 OTHER ASSETS / (LIABILITIES) 1,774,382 5.81 ____________________________________________________

TOTAL NET ASSETS 30,525,174 100.00 ________________________________________________


F&C Portfolios Fund – F&C European High Yield Bond Schedule of Investments as at 31 March 2014 (continued)




in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________


EUR 10,723,978 GBP (8,800,000) 3.4.2014 79,432GBP 3,000,000 EUR (3,626,210) 3.4.2014 2,612GBP 500,000 EUR (597,843) 3.4.2014 6,961EUR 1,827,481 USD (2,500,000) 3.4.2014 13,582

____________________________________________________________________________________________________________________________________________________________________________________________________________


USD 2,500,000 EUR (1,817,551) 3.4.2014 (3,652) ____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Loss on Forward Foreign Exchange Contracts (3,652) The counterparties for forward foreign exchange contracts were Barclays Bank Plc. and BNP Paribas S.A.


F&C Portfolios Fund – F&C European High Yield Bond Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets




Retail 6.44





Chemicals 3.99

Media 3.65

Healthcare 3.21

Transportation 2.84


Semiconductors 2.26

Internet 2.14


Housewares 1.95

Real Estate 1.86


Environmental Control 1.73

Software 1.40

Forest Products & Paper 1.35



Insurance 0.98


Energy 0.88

Water 0.85








F&C Portfolios Fund F&C European SmallCap Performance Over the six months to 31 March 2014, the A EUR share class rose by 14.1%. This compared with a benchmark return of 16.4% by the HSBC Europe Smaller Companies Index (NR).

The portfolio’s underperformance over the review period was driven by a combination of asset allocation and stock selection. Devro, the Glasgow-based maker of collagen skins for sausage manufacturers, suffered poor performance as an increasingly competitive environment and weak demand reduced profitability. Tod’s, the Italian luxury shoe manufacturer, reported sales significantly below expectations, linked not only to the emerging market slowdown in demand for luxury goods but also due to continued issues with its Italian operations. We have undertaken a full review of the stock and remain confident in management’s ability to drive market penetration. Positive performance came from Aareal Bank as they continued to demonstrate the benefits of a strong capital position in a recovering market.

Market Review European equities made strong gains over the six month period. There were some encouraging signs for investors as the eurozone economy began to show improvement. However, growth remained fragile enough for the ECB to cut interest rates to 0.25% in November. There were some improved data from the distressed southern European states as exports rebounded. This helped Greece, Ireland, Spain and Italy to post impressive returns over the period. Ireland and Spain also announced that they would be exiting the eurozone’s bailout programmes. Investors were cheered by news that business activity across the eurozone was growing more quickly than expected. The sharp fall in inflation to just 0.5% caused speculation the ECB would need to conduct its own quantitative easing.

Outlook European equities have recovered to more reasonable valuations following the prolonged recession and financial crisis. We are encouraged by tentative signs of improving economic activity, which should ultimately lead to an improvement in earnings which remain significantly below previous peaks. As an asset class, European equities continue to look attractive on absolute and relative measures. Corporate activity remains a strong potential driver in the market as this is also significantly below historical levels. Corporate balance sheets remain strong and cash generation is set to increase. The outcome of this is likely to be a combination of increased M&A activity and increased returns to shareholders. Our investment philosophy remains focused on the purchase of high-quality businesses run by proven managers and we want to be able to buy them at significant discount to intrinsic value.

Sam Cosh Portfolio Manager April 2014



F&C Portfolios Fund – F&C European SmallCap Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Denmark Chr Hansen Holding 250,944 7,226,510 1.77Ringkjoebing Landbobank 42,853 6,772,929 1.65Topdanmark 396,402 8,378,304 2.05 ____________________________________________________________________________________________________________________________________________________________________________________________________________

22,377,743 5.47Finland Amer Sports 479,215 7,389,495 1.80 ____________________________________________________________________________________________________________________________________________________________________________________________________________

France Neopost 48,199 2,762,767 0.67Plastic Omnium 355,576 9,579,217 2.34 ____________________________________________________________________________________________________________________________________________________________________________________________________________

12,341,984 3.01Germany Aareal Bank 306,359 9,780,511 2.39CTS Eventim 167,813 8,122,149 1.98ElringKlinger 179,962 5,148,713 1.26Gerresheimer 139,689 6,561,891 1.60KUKA 168,585 5,988,139 1.46Norma Group 192,209 7,393,319 1.81Rational 24,768 6,402,528 1.56SAF-Holland 730,732 8,253,618 2.02SHW 105,381 4,914,970 1.20Takkt 414,719 6,635,504 1.62 ____________________________________________________________________________________________________________________________________________________________________________________________________________

69,201,342 16.90Ireland Aer Lingus Group 4,318,169 7,060,206 1.73C&C Group 174,432 828,552 0.20C&C Group 1,494,186 7,066,006 1.73Glanbia 740,165 8,245,438 2.01Grafton Group 936,221 7,327,056 1.79IFG Group 3,463,518 5,991,886 1.46Irish Continental Group 273,592 8,330,876 2.04Origin Enterprises 1,266,005 9,621,638 2.35Providence Resources 184,522 412,921 0.10 ____________________________________________________________________________________________________________________________________________________________________________________________________________

54,884,579 13.41Italy Azimut Holding 354,564 9,183,207 2.24Banca Generali 339,685 8,135,456 1.99Credito Emiliano SpA 1,040,671 7,513,645 1.84Interpump Group 682,477 7,630,093 1.86Tod's 78,446 7,393,535 1.81 ____________________________________________________________________________________________________________________________________________________________________________________________________________

39,855,936 9.74Netherlands ASM International 293,699 8,556,920 2.09Delta Lloyd 424,305 8,539,138 2.08Kendrion 180,561 4,486,941 1.10Nutreco 219,866 7,090,679 1.73 ____________________________________________________________________________________________________________________________________________________________________________________________________________

28,673,678 7.00Norway SpareBank 1 SR Bank 816,912 6,014,241 1.47Storebrand 2,159,248 9,040,862 2.21Tomra Systems 972,199 6,774,578 1.65 ____________________________________________________________________________________________________________________________________________________________________________________________________________

21,829,681 5.33Spain Mediaset Espana Comunicacion 850,066 7,187,308 1.76 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Sweden Betsson 263,531 6,945,154 1.70Indutrade 195,699 6,767,159 1.65 ____________________________________________________________________________________________________________________________________________________________________________________________________________

13,712,313 3.35Switzerland EFG International 837,420 7,910,073 1.93Forbo Holding 10,977 8,367,023 2.05Leonteq AG 18,146 2,733,503 0.67Partners Group Holding 46,584 9,504,465 2.32 ____________________________________________________________________________________________________________________________________________________________________________________________________________

28,515,064 6.97United Kingdom A.G.BARR 956,966 7,061,114 1.72Aveva Group 250,344 6,341,043 1.55Berendsen 599,094 8,101,839 1.98Booker Group 4,583,078 9,152,741 2.24Devro 2,851,465 8,140,047 1.99Dignity 506,659 8,990,684 2.20Howden Joinery Group 2,308,775 10,391,737 2.54Jazztel 621,257 6,858,677 1.67Jupiter Fund Management 1,665,673 8,075,405 1.97Laird 1,483,134 5,387,442 1.32Spectris 202,095 5,666,512 1.38


F&C Portfolios Fund – F&C European SmallCap Schedule of Investments as at 31 March 2014 (continued)


Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

Tyman 2,117,765 7,685,035 1.88 ____________________________________________________________________________________________________________________________________________________________________________________________________________


397,821,399 97.18


TOTAL NET ASSETS 409,365,933 100.00 ________________________________________________


F&C Portfolios Fund – F&C European SmallCap Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets



Auto Parts & Equipment 8.63Insurance 6.34





Building Materials 3.93Semiconductors 3.47


Retail 3.41

Telecommunication 2.99Agriculture 2.35

Transportation 2.04Media 1.76

Airline 1.73



Software 1.55

Office & Business Equipment 0.67Oil & Gas 0.10





F&C Portfolios Fund F&C Global Climate Opportunities Performance In the six months to 31 March 2014 the class I EUR shares returned 4.1% and the class I GBP shares returned 2.9%. The class A EUR shares returned 3.7%, the class A GBP shares returned 2.7% (all figures net of fees). By comparison, the benchmark MSCI World NR Index returned 7.4% in euro terms.

The portfolio lagged the benchmark over the period largely due to stock selection. The main stock detractors were Kansas City Southern as investors were alarmed by potential legislative risk in Mexico. Towards the end of the period we saw further underperformance as, almost overnight, recent winners became relative and absolute losers. This was particularly true of growth stocks in the US such as A.O. Smith, the manufacturer of water heaters and boilers, and Thermo Fisher Scientific, a scientific equipment and consumables supplier. These headwinds were somewhat offset by a positive contribution from Tesla Motors as the company continued to suggest that the roll-out of new electric car models is accelerating. There was also some excellent relative and absolute performance from US energy companies such as Cheniere Energy as the US administration suggested it would help Europe reduce its dependence on Russian gas.

Review Global equities posted positive returns in the six months to the end of March, albeit amid volatility. Among the factors affecting the markets was speculation about when the US central bank would start to reduce the scale of its monetary support to the economy. The quantitative easing (QE) programme has been a major prop to the markets and fears that it would be withdrawn rapidly triggered volatility in both bonds and equities. Although equities were firm when the start of tapering of QE was subsequently confirmed in December, the early weeks of 2014 saw confidence rattled by signs of weakness in the emerging markets and some disappointing economic data from the US. Fears that armed conflict could break out between Russia and the Ukraine also spooked the markets in March. However, the markets were boosted by indications from the US Federal Reserve that interest rates were unlikely to be hiked for some time yet.

Outlook We remain optimistic towards global equities. Our analysis suggests there are still attractive opportunities to invest in growth in the US, and a rebound following the cold weather is imminent. We also like the set-up in Europe, where fiscal headwinds are subsiding, the cost of finance is falling and where valuations remain attractive. Although we think many stocks are cheap in the emerging markets, we think reforms in China (the region’s pivot) will take a long time to deliver meaningful rebalancing, and that commodity exporters will also continue to face declining returns on equity. The message in the emerging markets is to be highly selective when investing and to choose equities with the strongest possible idiosyncratic opportunities.

Hugo Rogers Portfolio Manager April 2014



F&C Portfolios Fund – F&C Global Climate Opportunities Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Bermuda Golar LNG 30,000 907,455 2.35 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Bonds Pentair 30,000 1,726,973 4.47Wolseley 20,000 825,199 2.14 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,552,172 6.61Canada Agrium 10,000 707,564 1.83Newalta 60,000 794,351 2.06 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,501,915 3.89France Suez Environnement 150,000 2,211,750 5.73 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Germany Bayer 10,000 981,800 2.54GEA Group 30,000 995,400 2.58 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,977,200 5.12Netherlands Aalberts Industries 60,000 1,518,000 3.93Arcadis 40,000 1,116,600 2.89Koninklijke Boskalis Westminster 20,000 799,400 2.07 ____________________________________________________________________________________________________________________________________________________________________________________________________________

3,434,000 8.89United Kingdom Pennon Group 80,000 718,511 1.86Shanks Group 500,000 669,824 1.74WS Atkins 40,000 673,029 1.74 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,061,364 5.34United States Agilent Technologies 20,000 811,464 2.10American Water Works 20,000 658,807 1.71AO Smith 70,000 2,337,312 6.05Aqua America 40,000 727,590 1.88Cheniere Energy 50,000 2,007,982 5.20Danaher 30,000 1,632,505 4.23EnerNOC 50,000 808,272 2.09Flowserve 40,000 2,273,608 5.89Franklin Electric 30,000 925,522 2.40IDEX 20,000 1,057,718 2.74Kirby 20,000 1,469,255 3.80Masco 60,000 966,879 2.50Mueller Water Products 200,000 1,378,560 3.57Roper Industries 20,000 1,937,385 5.02Thermo Fisher Scientific 40,000 3,489,644 9.03Watts Water Technologies 30,000 1,277,490 3.31 ____________________________________________________________________________________________________________________________________________________________________________________________________________


38,405,849 99.45


TOTAL NET ASSETS 38,619,852 100.00 ________________________________________________


F&C Portfolios Fund – F&C Global Climate Opportunities Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets




Water 11.18

Transportation 6.15

Oil & Gas 5.20






Distribution & Wholesale 2.14


Chemicals 1.83






F&C Portfolios Fund F&C Global Convertible Bond Performance In the six months to 31 March 2014, the return on the GBP A shares (unhedged) was 3.8% (net of fees) compared to a return of 3.9% for the benchmark UBS Customised Global Focus Index. The euro hedged A share class returned 6.0% and the euro hedged I share class 6.2% (both net of fees) over the same period.

The portfolio performed in-line with the benchmark over the six months. The portfolio outperformed in the first half of the period driven by overweight positions in strong performing convertibles in retail/wholesale (Steinhoff, Jarden), steels/metals (ArcelorMittal, US Steel), insurance (Fortis Cashes), transportation (Lufthansa/Jetblue) and telecommunications (KDDI, SK Telecom). Also, within the negative returning oil & gas sector, positive attribution was achieved by being underweight Cobalt and Lukoil, whilst being overweight in strong returning Hungarian refinery Magnolia/Mol and Canadian pipeline operation Pembina Pipeline. However, relative performance for the period as a whole was dragged down by being underweight in strong performing lower credit quality convertibles such as renewable energy companies Abengoa and SunEdison, and MGM Resorts.

Market Review Convertible bonds produced a positive return over the six months. In the first three months of the period, convertibles benefited from rising equity markets. The latter half of the period under review saw equity markets hampered by the soft patch in the US economy, the tapering of US quantitative easing by a further $10 billion a month, disappointing Chinese macro-economic data and increasing geopolitical risk due to the Russian annexation of Crimea. However, against this backdrop convertible bonds delivered a relatively solid return, driven by the strong underlying share price performance of certain convertible bonds, such as Illumina, GDF Suez and Air France-KLM. Total new issuance for the six months totalled $57 billion, with larger issues coming from US technology firms Nvidia, Sandisk and Yahoo, as well as from Herbalife, Tesla, Telecom Italia, CaixaBank, Gedeon Richter and Liberty Media. Companies made use of favourable financing conditions with low coupons and rising underlying share prices. November saw a spike in new issuance which consequently put some pressure on convertible bond valuations.

Outlook Our outlook continues to be moderately positive. We believe that the soft patch in US data is over and growth will accelerate to around 3.5% in 2014. Macro data from Europe confirms the view of a slow but improving recovery. We expect around 1 to 1.5% growth in Europe, with big improvements seen in the periphery. Improving economic fundamentals and a low inflation environment should be positive for equities. Bond yields declined on concerns of the US soft patch and the Ukraine, but are expected to rise when higher economic growth resumes. However, markets are vulnerable for shocks. The main risks are an escalation of the Ukrainian crisis and further deterioration in Chinese economic growth and credit problems. When conducting a 12-month scenario analysis we expect convertibles to return +10.4% / -5.5% for a +18% / -12% equity market return. Hence, despite the elevated equity markets, the downside risk remains muted.

Anja Eijking Portfolio Manager April 2014



F&C Portfolios Fund – F&C Global Convertible Bond Schedule of Investments as at 31 March 2014


Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS BONDS Australia CFS Retail Property Trust Group 5.75% 4.7.2016 AUD 4,800,000 3,373,178 0.34 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Austria Steinhoff Finance Holding 6.38% 26.5.2017 EUR 2,600,000 3,302,000 0.34Steinhoff Finance Holding 4.50% 31.3.2018 EUR 2,500,000 3,143,750 0.32Steinhoff Finance Holding 4.00% 30.1.2021 EUR 4,100,000 4,632,795 0.47 ____________________________________________________________________________________________________________________________________________________________________________________________________________

11,078,545 1.13Belgium BNP Paribas Fortis, V/R 2.31% 29.12.2049 EUR 10,500,000 8,168,632 0.83BNP Paribas Fortis, V/R 2.31% 29.12.2049 EUR 250,000 194,491 0.02Groupe Bruxelles Lambert 0.13% 21.9.2015 EUR 6,300,000 8,091,090 0.83Sagerpar 0.38% 9.10.2018 EUR 2,800,000 2,977,800 0.30Sofina 1.00% 19.9.2016 USD 2,250,000 1,704,834 0.17 ____________________________________________________________________________________________________________________________________________________________________________________________________________

21,136,847 2.15Bermuda Bunge (Preferred) 4.88% 31.12.2049 USD 40,700 3,130,202 0.32Gulf Keystone Petroleum 6.25% 18.10.2017 USD 3,800,000 2,072,528 0.21 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,202,730 0.53British Virgin Islands Billion Express Investments 0.75% 18.10.2015 USD 7,600,000 5,500,455 0.56Giant Great 3.00% 21.7.2016 USD 2,800,000 2,719,754 0.28 ____________________________________________________________________________________________________________________________________________________________________________________________________________

8,220,209 0.84Canada Aecon Group 5.50% 31.12.2018 CAD 1,900,000 1,395,733 0.14Davis + Henderson 6.00% 30.9.2018 CAD 2,186,000 1,695,640 0.18Pembina Pipeline 5.75% 30.11.2020 CAD 3,144,000 3,063,722 0.31 ____________________________________________________________________________________________________________________________________________________________________________________________________________

6,155,095 0.63Cayman Islands ASM Pacific Technology 2.00% 28.3.2019 HKD 26,000,000 2,551,374 0.26Biostime International Holdings 0.00% 20.2.2019 HKD 28,000,000 2,560,061 0.26China Hongqiao Group 6.50% 10.4.2017 USD 3,600,000 2,775,912 0.28China Overseas Grand Oceans Finance Cayman 2.00% 21.3.2017 HKD 34,000,000 3,239,829 0.33Ctrip.com International 1.25% 15.10.2018 USD 5,500,000 3,975,605 0.41ENN Energy Holdings 0.00% 26.2.2018 USD 5,000,000 4,531,110 0.46Hengan International Group 0.00% 27.6.2018 HKD 52,000,000 4,979,352 0.51Siem Industries 1.00% 12.9.2019 USD 5,400,000 3,919,972 0.40 ____________________________________________________________________________________________________________________________________________________________________________________________________________

28,533,215 2.91Finland Solidium 0.50% 29.9.2015 EUR 11,900,000 12,227,250 1.25 ____________________________________________________________________________________________________________________________________________________________________________________________________________

France Air France-KLM 2.03% 15.2.2023 EUR 8,378,844 10,905,920 1.11BNP Paribas 0.25% 21.9.2015 EUR 3,800,000 4,199,760 0.43BNP Paribas 0.25% 27.9.2016 EUR 5,100,000 5,648,250 0.58Cap Gemini 0.00% 1.1.2019 EUR 5,175,723 6,073,977 0.62Credit Agricole 0.00% 6.12.2016 EUR 2,698,817 3,174,193 0.33Credit Agricole CIB Financial Solutions 0.00% 27.7.2015 EUR 2,950,000 3,663,162 0.37Faurecia 3.25% 1.1.2018 EUR 8,810,000 2,946,716 0.30Gecina 2.13% 1.1.2016 EUR 5,819,020 6,900,027 0.70Ingenico 2.75% 1.1.2017 EUR 921,024 1,683,523 0.17Misarte 3.25% 1.1.2016 EUR 8,268,090 10,390,584 1.06Nexans 4.00% 1.1.2016 EUR 2,274,820 2,508,148 0.26Orpea 3.88% 1.1.2016 EUR 1,172,095 1,483,849 0.15Orpea 1.75% 1.1.2020 EUR 4,460,448 5,481,436 0.56Rallye 1.00% 2.10.2020 EUR 9,183,789 10,431,407 1.06Suez Environnement 0.00% 27.2.2020 EUR 3,082,486 3,428,154 0.35Technip 0.50% 1.1.2016 EUR 15,406,740 17,398,678 1.77Technip 0.25% 1.1.2017 EUR 5,794,227 6,350,814 0.65Tem 4.25% 1.1.2015 EUR 2,607,120 2,956,021 0.30Unibail-Rodamco 0.75% 1.1.2018 EUR 19,533,689 22,488,016 2.29 ____________________________________________________________________________________________________________________________________________________________________________________________________________

128,112,635 13.06Germany Adidas 0.25% 14.6.2019 EUR 12,600,000 15,271,200 1.56Deutsche Post 0.60% 6.12.2019 EUR 17,400,000 24,151,200 2.46Fresenius & Co 0.00% 24.9.2019 EUR 1,100,000 1,184,865 0.12KUKA 2.00% 12.2.2018 EUR 2,400,000 2,899,440 0.29TUI 2.75% 24.3.2016 EUR 2,714,108 3,238,147 0.33 ____________________________________________________________________________________________________________________________________________________________________________________________________________

46,744,852 4.76Hong Kong China Power International Development 2.25% 17.5.2016 CNY 19,700,000 3,095,238 0.32HKEx International 0.50% 23.10.2017 USD 6,400,000 4,858,336 0.49 ____________________________________________________________________________________________________________________________________________________________________________________________________________

7,953,574 0.81Hungary Magyar Nemzeti Vagyonkezelo 3.38% 2.4.2019 EUR 4,800,000 4,981,920 0.51 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Italy Beni Stabili 3.38% 17.1.2018 EUR 1,500,000 1,747,875 0.18Eni 0.25% 30.11.2015 EUR 15,900,000 16,443,780 1.67Eni 0.63% 18.1.2016 EUR 15,000,000 16,467,000 1.68 ____________________________________________________________________________________________________________________________________________________________________________________________________________

34,658,655 3.53


F&C Portfolios Fund – F&C Global Convertible Bond Schedule of Investments as at 31 March 2014 (continued)


Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

Japan ABC-Mart 0.00% 5.2.2018 JPY 380,000,000 3,090,593 0.32Advantest 0.00% 14.3.2019 JPY 180,000,000 1,332,319 0.14Alps Electric 0.00% 25.3.2019 JPY 210,000,000 1,589,724 0.16Asahi Group Holdings 0.00% 26.5.2028 JPY 461,000,000 4,597,365 0.47Asics 0.00% 1.3.2019 JPY 90,000,000 711,971 0.07GS Yuasa 0.00% 13.3.2019 JPY 90,000,000 667,199 0.07Kawasaki Kisen Kaisha 0.00% 26.9.2018 JPY 560,000,000 4,191,941 0.43Nagoya Railroad 0.00% 3.10.2023 JPY 140,000,000 1,080,041 0.11Nidec 0.00% 18.9.2015 JPY 330,000,000 2,943,376 0.30Park24 0.00% 26.4.2018 JPY 390,000,000 2,960,602 0.30Sekisui House 0.00% 5.7.2016 JPY 430,000,000 4,055,703 0.41Shizuoka Bank 0.00% 25.4.2018 USD 4,000,000 3,043,716 0.31Takashimaya 0.00% 11.12.2020 JPY 560,000,000 4,265,916 0.44Toppan Printing 0.00% 19.12.2019 JPY 410,000,000 2,983,887 0.30 ____________________________________________________________________________________________________________________________________________________________________________________________________________

37,514,353 3.83Jersey Balfour Beatty Finance No.2 1.88% 3.12.2018 GBP 2,400,000 3,057,663 0.31British Land 1.50% 10.9.2017 GBP 9,800,000 13,536,332 1.38Derwent London Capital 2.75% 15.7.2016 GBP 4,100,000 6,303,420 0.64Gabriel Finance Partnership 2.00% 26.11.2016 EUR 6,200,000 6,286,800 0.64Great Portland Estates Capital 1.00% 10.9.2018 GBP 2,100,000 2,729,434 0.28INTU 2.50% 4.10.2018 GBP 4,700,000 6,023,455 0.62Magnolia Finance, V/R 4.00% 29.3.2049 EUR 5,500,000 5,227,750 0.53Premier Oil Finance 2.50% 27.7.2018 USD 3,050,000 2,461,466 0.25 ____________________________________________________________________________________________________________________________________________________________________________________________________________

45,626,320 4.65Korea Celltrion 2.75% 27.3.2018 USD 4,750,000 3,067,296 0.31Lotte Shopping 0.00% 24.1.2018 KRW 6,200,000,000 4,342,306 0.44 ____________________________________________________________________________________________________________________________________________________________________________________________________________

7,409,602 0.75Luxembourg APERAM 2.63% 30.9.2020 USD 3,400,000 3,475,858 0.35ArcelorMittal (Preferred) 6.00% 15.1.2016 USD 288,000 5,010,878 0.51GBL Verwaltung 1.25% 7.2.2017 EUR 18,100,000 21,605,970 2.20Glencore Finance Europe 5.00% 31.12.2014 USD 28,700,000 22,760,101 2.32Subsea 7 1.00% 5.10.2017 USD 13,000,000 9,387,451 0.96 ____________________________________________________________________________________________________________________________________________________________________________________________________________

62,240,258 6.34Malaysia Indah Capital 0.00% 24.10.2018 SGD 8,500,000 4,776,665 0.49YTL Corp Finance Labuan 1.88% 18.3.2015 USD 4,600,000 3,479,413 0.35 ____________________________________________________________________________________________________________________________________________________________________________________________________________

8,256,078 0.84Mexico Cemex 4.88% 15.3.2015 USD 3,600,000 3,202,976 0.33 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Netherlands ACS Actividades Finance 2.63% 22.10.2018 EUR 6,300,000 6,914,880 0.71ACS Actividades Finance 2 1.63% 27.3.2019 EUR 2,800,000 2,858,100 0.29Amorim Energia 3.38% 3.6.2018 EUR 5,800,000 6,501,800 0.66BNP Paribas Arbitrage Issuance 0.00% 29.6.2015 EUR 3,691,000 4,781,691 0.49BNP Paribas Arbitrage Issuance 0.00% 15.6.2016 EUR 2,400,000 2,887,200 0.29CEZ MH 0.00% 4.8.2017 EUR 1,400,000 1,439,620 0.15Lehman Brothers Treasury 0.00% 28.8.2009 EUR 350,000 0 0.00Lukoil International Finance 2.63% 16.6.2015 USD 15,200,000 11,215,966 1.14QIAGEN 0.38% 19.3.2019 USD 3,600,000 2,681,749 0.27Siemens Financieringsmaatschappij 1.05% 16.8.2017 USD 12,500,000 10,548,706 1.08Siemens Financieringsmaatschappij 1.65% 16.8.2019 USD 35,250,000 31,044,818 3.16Yandex 1.13% 15.12.2018 USD 4,100,000 2,768,412 0.28 ____________________________________________________________________________________________________________________________________________________________________________________________________________

83,642,942 8.52Philippines SM Investments 1.63% 15.2.2017 USD 3,400,000 2,724,688 0.28 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Portugal Parpublica - Participacoes Publicas 5.25% 28.9.2017 EUR 8,500,000 9,775,000 1.00 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Singapore CapitaCommercial Trust 2.50% 12.9.2017 SGD 6,500,000 4,018,393 0.41CapitaLand 1.85% 19.6.2020 SGD 4,250,000 2,258,985 0.23CapitaLand 1.95% 17.10.2023 SGD 9,250,000 5,263,512 0.54Olam International 6.00% 15.10.2016 USD 2,700,000 2,113,278 0.21Ruby Assets 1.60% 1.2.2017 SGD 5,250,000 3,433,229 0.35 ____________________________________________________________________________________________________________________________________________________________________________________________________________

17,087,397 1.74Spain International Consolidated Airlines Group 1.75% 31.5.2018 EUR 7,500,000 10,096,500 1.03 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Sweden Elekta 2.75% 25.4.2017 SEK 37,320,220 4,820,834 0.49Industrivarden 2.50% 27.2.2015 EUR 6,600,000 8,471,100 0.87Industrivarden 1.88% 27.2.2017 EUR 8,900,000 9,803,350 1.00SAS 3.63% 1.4.2019 SEK 22,000,000 2,182,778 0.22 ____________________________________________________________________________________________________________________________________________________________________________________________________________

25,278,062 2.58




Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

Switzerland Swiss Life Holding 0.00% 2.12.2020 CHF 8,835,000 8,303,970 0.85 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Taiwan Advanced Semiconductor Engineering 0.00% 5.9.2018 USD 3,600,000 3,052,785 0.31Epistar 0.00% 7.8.2018 USD 3,300,000 2,951,026 0.30Pegatron 0.00% 6.2.2017 USD 3,400,000 2,991,113 0.31 ____________________________________________________________________________________________________________________________________________________________________________________________________________

8,994,924 0.92United Arab Emirates Aabar Investments 4.00% 27.5.2016 EUR 14,800,000 18,315,000 1.87National Bank of Abu Dhabi 1.00% 12.3.2018 USD 4,200,000 3,373,409 0.34 ____________________________________________________________________________________________________________________________________________________________________________________________________________

21,688,409 2.21United Kingdom TUI Travel 6.00% 5.10.2014 GBP 500,000 767,500 0.08TUI Travel 6.00% 5.10.2014 GBP 2,800,000 4,268,840 0.43 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,036,340 0.51United States AGCO 1.25% 15.12.2036 USD 1,865,000 1,858,066 0.19Alexandria Real Estate Equities - Series D (Preferred) 7.00% 31.12.2049 USD 140,500 2,739,152 0.28American Realty Capital Properties 3.00% 1.8.2018 USD 6,150,000 4,752,224 0.48Ares Capital 4.38% 15.1.2019 USD 5,560,000 4,291,277 0.44Bank of America - Series L (Preferred) 7.25% 31.12.2049 USD 11,140 9,248,325 0.94BioMed Realty 3.75% 15.1.2030 USD 2,950,000 2,584,528 0.26CenterPoint Energy 3.72% 15.9.2029 USD 90,200 3,460,422 0.35Cobalt International Energy 2.63% 1.12.2019 USD 8,330,000 5,700,151 0.58Colony Financial 5.00% 15.4.2023 USD 3,660,000 2,823,173 0.29Cubist Pharmaceuticals 1.88% 1.9.2020 USD 3,468,000 3,041,499 0.31DDR 1.75% 15.11.2040 USD 2,837,000 2,382,607 0.24Dealertrack Technologies 1.50% 15.3.2017 USD 2,392,000 2,470,968 0.25General Cable 5.00% 15.11.2029 USD 2,817,000 2,059,226 0.21Health Care REIT 3.00% 1.12.2029 USD 3,116,000 2,683,333 0.27Hologic 2.00% 15.12.2037 USD 2,730,000 2,269,223 0.23Hologic 2.00% 1.3.2042 USD 3,330,000 2,475,001 0.25Host Hotels & Resorts 2.50% 15.10.2029 USD 1,876,000 2,131,045 0.22Intel 2.95% 15.12.2035 USD 14,767,000 12,636,195 1.29Intel 3.25% 1.8.2039 USD 5,070,000 5,150,029 0.53Jarden 1.88% 15.9.2018 USD 2,887,000 2,923,396 0.30Jarden 1.50% 15.6.2019 USD 5,465,000 4,817,687 0.49JDS Uniphase 0.63% 15.8.2033 USD 6,090,000 4,656,151 0.48Lam Research 1.25% 15.5.2018 USD 7,430,000 6,715,035 0.68Liberty Interactive 0.75% 30.3.2043 USD 8,710,000 7,856,065 0.80Liberty Interactive 1.00% 30.9.2043 USD 3,750,000 2,860,286 0.29Liberty Media 1.38% 15.10.2023 USD 5,930,000 4,047,095 0.41Linear Technology - Series A 3.00% 1.5.2027 USD 2,969,000 2,578,286 0.26Mentor Graphics 4.00% 1.4.2031 USD 2,846,000 2,578,591 0.26MetLife (Preferred) 5.00% 8.10.2014 USD 55,900 1,249,208 0.13Micron Technology - Series G 3.00% 15.11.2043 USD 6,050,000 4,831,332 0.49Molina Healthcare 1.13% 15.1.2020 USD 3,250,000 2,654,295 0.27New York Community Capital Trust V (Preferred) 6.00% 1.11.2051 USD 70,250 2,482,261 0.25Newmont Mining - Series B 1.63% 15.7.2017 USD 2,960,000 2,277,853 0.23NextEra Energy (Preferred) 5.60% 1.6.2015 USD 70,150 3,206,567 0.33Novellus Systems 2.63% 15.5.2041 USD 3,800,000 4,719,846 0.48Nuance Communications 2.75% 15.8.2027 USD 3,004,000 2,344,407 0.24NVIDIA 1.00% 1.12.2018 USD 9,100,000 7,258,709 0.74Old Republic International 3.75% 15.3.2018 USD 3,624,000 3,283,491 0.34Peabody Energy 4.75% 15.12.2041 USD 4,660,000 2,751,370 0.28priceline.com 1.00% 15.3.2018 USD 6,817,000 7,026,594 0.72priceline.com 0.35% 15.6.2020 USD 9,600,000 8,258,301 0.84ProLogis 3.25% 15.3.2015 USD 2,919,000 2,483,242 0.25Prospect Capital 5.75% 15.3.2018 USD 3,490,000 2,696,790 0.28Ryland Group 0.25% 1.6.2019 USD 3,500,000 2,406,132 0.25Salesforce.com 0.25% 1.4.2018 USD 8,900,000 7,325,188 0.75Salix Pharmaceuticals 1.50% 15.3.2019 USD 1,282,000 1,577,212 0.16SanDisk 0.50% 15.10.2020 USD 10,200,000 8,187,015 0.84SL Green Operating Partnership 3.00% 15.10.2017 USD 2,500,000 2,380,737 0.24Stanley Black & Decker (Preferred) 4.75% 17.11.2015 USD 34,500 3,191,048 0.33Starwood Property Trust 4.55% 1.3.2018 USD 4,800,000 3,992,020 0.41Starwood Property Trust 4.00% 15.1.2019 USD 3,850,000 3,212,408 0.33Teleflex 3.88% 1.8.2017 USD 2,384,000 3,075,677 0.31Teva Pharmaceutical Finance - Series C 0.25% 1.2.2026 USD 5,502,000 5,087,331 0.52Toll Brothers Finance 0.50% 15.9.2032 USD 5,637,000 4,340,481 0.44United States Steel 2.75% 1.4.2019 USD 5,070,000 4,784,452 0.49Vishay Intertechnology 2.25% 15.11.2040 USD 3,521,000 2,985,794 0.30Volcano 1.75% 1.12.2017 USD 3,570,000 2,575,672 0.26Web.com Group 1.00% 15.8.2018 USD 3,550,000 3,044,192 0.31WellPoint 2.75% 15.10.2042 USD 10,717,000 11,406,134 1.16Wells Fargo & Co - Series L (Preferred) 7.50% 31.12.2049 USD 9,625 8,137,518 0.83Yahoo! 0.00% 1.12.2018 USD 9,460,000 7,009,634 0.71 ____________________________________________________________________________________________________________________________________________________________________________________________________________

256,031,947 26.09 TOTAL BONDS 931,288,471 94.92




Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

SHARES United States Molycorp 51,800 176,269 0.02 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL SHARES 176,269 0.02 TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS

931,464,740 94.94

OTHER TRANSFERABLE SECURITIES BONDS Bermuda Seadrill 3.38% 27.10.2017 USD 3,200,000 3,224,960 0.33 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Japan Nikkiso 0.00% 2.8.2018 JPY 340,000,000 2,565,468 0.26Paramount Bed Holdings 0.00% 26.7.2018 JPY 180,000,000 1,377,528 0.14Resorttrust 0.00% 27.7.2018 JPY 380,000,000 2,968,352 0.30 ____________________________________________________________________________________________________________________________________________________________________________________________________________

6,911,348 0.70Malta Lufthansa Malta Blues 0.75% 5.4.2017 EUR 3,000,000 4,124,400 0.42 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Norway Marine Harvest 2.38% 8.5.2018 EUR 4,400,000 4,917,440 0.50 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Singapore Suntec Real Estate Investment Trust 1.40% 18.3.2018 SGD 7,000,000 4,084,166 0.42 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Spain Caja de Ahorros y Pensiones de Barcelona 1.00% 25.11.2017 EUR 8,300,000 9,661,200 0.98 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL BONDS 32,923,514 3.35 TOTAL OTHER TRANSFERABLE SECURITIES 32,923,514 3.35 TOTAL INVESTMENTS 964,388,254 98.29 OTHER ASSETS / (LIABILITIES) 16,786,720 1.71 ________________________________________________

TOTAL NET ASSETS 981,174,974 100.00 ________________________________________________






in EUR ____________________________________________________________________________________________________________________________________________________________________________________________________________


CHF 8,811,795 EUR (7,236,740) 30.4.2014 3,059CHF 25,151,953 EUR (20,656,194) 30.4.2014 8,733CHF 57,099,078 EUR (46,892,965) 30.4.2014 19,825CHF 4,387 EUR (3,602) 30.4.2014 2CHF 28,045 EUR (23,026) 30.4.2014 16CHF 12,320 EUR (10,115) 30.4.2014 7EUR 1,950,061 CAD (2,950,000) 22.5.2014 12,977EUR 25,313,228 GBP (20,850,000) 22.5.2014 99,995EUR 7,590,240 HKD (81,000,000) 22.5.2014 11,767EUR 2,058,774 HKD (22,000,000) 22.5.2014 424EUR 25,096,868 JPY (3,530,000,000) 22.5.2014 218,095EUR 607,642 JPY (85,000,000) 22.5.2014 8,578EUR 1,066,604 JPY (150,000,000) 22.5.2014 9,433EUR 1,774,812 JPY (250,000,000) 22.5.2014 12,859EUR 3,493,966 SEK (31,200,000) 22.5.2014 4,903EUR 1,430,502 SEK (12,700,000) 22.5.2014 10,275EUR 146,529 SEK (1,300,000) 22.5.2014 1,151EUR 353,609,144 USD (478,000,000) 10.4.2014 6,786,380EUR 18,873,129 USD (26,000,000) 10.4.2014 8,293EUR 23,986 USD (32,953) 30.4.2014 75SGD 1,400,000 EUR (802,881) 22.5.2014 4,951

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Gain on Forward Foreign Exchange Contracts 7,221,798 Unrealised Loss on Forward Foreign Exchange Contracts

EUR 2,257,601 AUD (3,460,000) 22.5.2014 (61,442)EUR 164,927 AUD (250,000) 22.5.2014 (2,634)EUR 926,878 CAD (1,420,000) 22.5.2014 (5,549)EUR 262,444 CAD (400,000) 22.5.2014 (211)EUR 548,714 CAD (850,000) 22.5.2014 (9,429)EUR 711,081 CAD (1,100,000) 22.5.2014 (11,222)EUR 55,572 CHF (67,686) 30.4.2014 (39)EUR 5,857,823 CHF (7,150,000) 22.5.2014 (17,884)EUR 1,315,412 GBP (1,100,000) 22.5.2014 (14,783)EUR 2,375,855 JPY (340,000,000) 22.5.2014 (20,401)EUR 17,049,251 SGD (29,550,000) 22.5.2014 (1,786)EUR 912,940 SGD (1,600,000) 22.5.2014 (10,297)JPY 115,000,000 EUR (814,630) 22.5.2014 (4,132)USD 6,500,000 EUR (4,803,315) 10.4.2014 (87,106)USD 16,000,000 EUR (11,761,973) 10.4.2014 (152,843)USD 14,000,000 EUR (10,314,109) 10.4.2014 (156,120)USD 36,000,000 EUR (26,396,407) 10.4.2014 (275,864)USD 5,143,183 EUR (3,742,856) 30.4.2014 (10,952)

____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Loss on Forward Foreign Exchange Contracts (842,694) The counterparties for forward foreign exchange contracts were Barclays Bank Plc. Wholesale, BNP Paribas S.A., Canadian Imperial Bank of Commerce, Citibank N.A., Deutsche Bank AG London, HSBC Bank Plc., JPMorgan Chase Bank N.A., Rabobank Nederland, Royal Bank of Canada, State Street Bank & Trust and Westpac Banking Corp.


F&C Portfolios Fund – F&C Global Convertible Bond Distribution of Investments by Economic Sector as at 31 March 2014

% of NetSector Assets

Financial Services 13.13Real Estate 11.65Oil & Gas 10.71Holding Companies 8.66Semiconductors 6.25Miscellaneous Manufacturers 6.13Healthcare 4.72Metals & Mining 4.20Internet 3.27Transportation 3.00Airline 2.78Retail 2.54Electrical Equipment 1.93Computers 1.89Engineering & Construction 1.80Media 1.50Insurance 1.32Software 1.24Food & Beverages 1.18Home Builders 1.10Housewares 1.05Sovereign 1.00Pharmaceuticals 0.99Leisure & Tourism 0.84Electrical Component & Equipment 0.84Machinery-Diversified 0.81Commercial Services 0.78Telecommunication 0.48Water 0.35Building Materials 0.33Agriculture 0.32Biotechnology 0.31Pipelines 0.31Auto Parts & Equipment 0.30Lodging 0.30Coal 0.28

Total Investments 98.29Other Assets / (Liabilities) 1.71



F&C Portfolios Fund F&C Global Emerging Markets Portfolio Performance Over the six months to 31 March 2014, the class A USD shares returned 2.8%. By comparison, the benchmark, the MSCI Emerging Markets index, rose by 1.4%. (All returns are net of fees)

The portfolio outperformed its benchmark over the period as our focus on high-quality companies worked well. The portfolio’s Indian holdings such as ICICI Bank, HDFC Bank and Larsen & Toubro made useful contributions as the market rallied on better-than-expected economic growth data. The South African retailer Mr Price Group also made good progress following upbeat results. Among the disappointments was Kasikornbank in Thailand. The Thai market in general suffered as the prime minister dissolved parliament and announced fresh elections following weeks of protests by the opposition party. As the Ukraine crisis developed, the portfolio’s exposure to Russian stocks Sberbank and Magnit also subtracted value.

Market Review Emerging market equities performed disappointingly over the review period. Investors remained wary of the asset class because of uncertainties about the performance of the US and Chinese economies and more general worries about falling currencies. Russia was particularly weak given threat of international sanctions in the wake of the Ukraine crisis. Latin American markets were disappointing as the Brazilian economy continued to labour, while Turkey suffered a sell-off in response to an emergency hike in interest rates to prop up the weakening lira. There was some brighter data from India, however, and shares rallied on hopes that the general election would return to power the more market-friendly BJP Party. As the period progressed, there were also some signs of investors returning assets to the market.

Outlook We continue to believe that the asset class offers good value for medium-term investors. Our focus continues to be on high quality companies in emerging markets such as Samsung Electronics, HDFC Bank, Ultrapar and AIA. This high quality strategy has worked well so far this year and we are confident that this strategy will deliver on a medium term basis. The markets where we are finding the best stock ideas include India, Turkey and Thailand. The key risk to the asset class is a sharper-than-expected tightening of US monetary policy, with the first US rate rise expected in the summer of 2015.

Sam Mahtani Portfolio Manager April 2014



F&C Portfolios Fund – F&C Global Emerging Markets Portfolio Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Brazil Ambev ADR 236,643 1,753,525 2.99BR Properties 81,900 676,178 1.15Companhia de Concessoes Rodoviarias 90,100 695,565 1.19Estacio Participacoes 69,400 703,073 1.20Souza Cruz 60,200 549,577 0.94Totvs 33,100 522,207 0.89Ultrapar Participacoes 68,300 1,662,022 2.84 ____________________________________________________________________________________________________________________________________________________________________________________________________________

6,562,147 11.20China AAC Technologies Holdings 135,000 701,362 1.20Anhui Conch Cement 'H' 179,500 770,570 1.31China Construction Bank 'H' 1,087,000 760,909 1.30China Mengniu Dairy 129,000 645,245 1.10Industrial & Commercial Bank of China 'H' 2,524,000 1,552,070 2.65PetroChina 'H' 1,034,000 1,126,369 1.92Tencent Holdings 28,100 1,954,345 3.33 ____________________________________________________________________________________________________________________________________________________________________________________________________________

7,510,870 12.81Hong Kong AIA Group 237,200 1,125,294 1.92China Overseas Land & Investment 494,000 1,276,864 2.18China State Construction International Holdings 318,000 538,674 0.92Shimao Property Holdings 248,000 543,505 0.93Wharf Holdings 114,000 728,937 1.24 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,213,274 7.19India Cairn India 110,545 614,895 1.05HDFC Bank 146,036 1,829,653 3.12ICICI Bank 46,206 961,102 1.64ITC 213,990 1,264,645 2.16Larsen & Toubro 34,564 734,367 1.25Tata Consultancy Services 29,264 1,048,109 1.79Tata Motors 127,579 851,274 1.45 ____________________________________________________________________________________________________________________________________________________________________________________________________________

7,304,045 12.46Indonesia Bank Mandiri Persero 1,298,400 1,080,095 1.84 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Korea Grand Korea Leisure 19,300 793,250 1.35Hyundai Motor 7,986 1,883,119 3.21LG Household & Health Care 2,200 949,692 1.62Samsung Electronics 2,902 3,661,408 6.25Samsung Fire & Marine Insurance 2,560 575,997 0.98SK Hynix 22,170 749,796 1.28 ____________________________________________________________________________________________________________________________________________________________________________________________________________

8,613,262 14.69Malaysia CIMB Group Holdings 463,000 1,013,765 1.73 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Mexico Fomento Economico Mexicano ADR 13,029 1,214,824 2.07Grupo Aeroportuario del Sureste ADR 6,400 784,896 1.34Grupo Financiero Banorte 'O' 163,800 1,108,298 1.89 ____________________________________________________________________________________________________________________________________________________________________________________________________________

3,108,018 5.30Peru Credicorp 7,900 1,089,568 1.86 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Philippines Puregold Price Club 634,600 622,643 1.06 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Poland Alior Bank 24,480 710,563 1.21 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Russia Lukoil ADR 23,416 1,309,540 2.24Magnit GDR 17,472 957,466 1.63Sberbank of Russia ADR 121,199 1,184,114 2.02Sberbank of Russia ADR 3,110 30,229 0.05 ____________________________________________________________________________________________________________________________________________________________________________________________________________

3,481,349 5.94South Africa Mr Price Group 48,034 718,873 1.23MTN Group 75,392 1,545,056 2.63 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,263,929 3.86Taiwan MediaTek 84,649 1,249,478 2.13Taiwan Semiconductor Manufacturing 660,000 2,568,262 4.38 ____________________________________________________________________________________________________________________________________________________________________________________________________________

3,817,740 6.51Thailand Kasikornbank 166,500 913,594 1.56Siam Commercial Bank 127,800 620,484 1.06Supalai 1,060,700 582,012 0.99 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,116,090 3.61


F&C Portfolios Fund – F&C Global Emerging Markets Portfolio Schedule of Investments as at 31 March 2014 (continued)


Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

Turkey BIM Birlesik Magazalar 48,879 1,101,331 1.88TAV Havalimanlari Holding 91,132 732,737 1.25 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,834,068 3.13United Kingdom BHP Billiton 51,254 1,585,049 2.71SABMiller 19,140 957,082 1.63 ____________________________________________________________________________________________________________________________________________________________________________________________________________


57,883,557 98.74


TOTAL NET ASSETS 58,619,321 100.00 ________________________________________________


F&C Portfolios Fund – F&C Global Emerging Markets Portfolio Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets




Real Estate 5.25

Oil & Gas 5.21



Internet 3.33

Agriculture 3.10

Insurance 2.90

Chemicals 2.83




Retail 2.29

Computers 1.79

Cosmetics & Personal Care 1.62

Lodging 1.36



Software 0.89





F&C Portfolios Fund F&C Global Smaller Cap Equity Performance In the six months to 31 March 2014, the net asset value of the I class USD shares rose by 13.4%. This compared to a return of 10.5% for the benchmark, the FTSE World Europe NR Index. All figures are net of fees.

Effective stock selection drove the portfolio’s outperformance over the review period, with a diverse range of holdings contributing positively. Cyclical, structural growth and turnaround orientated ideas all played their part as a number of the portfolio’s holdings demonstrated positive earnings momentum. The shares of ACI Worldwide (a US electronic payments specialist) were driven upwards by good results and their assertion that the prospects for organic growth remain bright. In the UK, Entertainment One progressed well on earnings thanks to good performance from its television business. James Fisher and Sons – a marine engineering specialist – made gains after announcing good 2013 results and giving an upbeat assessment of its prospects. On the negative side, a number of our European holdings lagged following strong performance earlier in the year. These included the Italian luxury leather goods manufacturer Tod’s. Some economy-sensitive companies also underperformed as demand from their end markets had yet to pick up.

Market Review Global equity markets rose over the six months under review, with some volatility through the period. The market took heart from the strength of US GDP data and share prices were relatively resilient to the start of quantitative easing tapering by the US Federal Reserve. The global purchasing managers index lead indicator for December hit a 32-month high. Despite this, after the strong market rally risk aversion returned sharply at the start of 2014. This largely dissipated as US and European economic data demonstrated continued underlying strength, even with adverse weather conditions in the US. The Japanese market saw a flattening and then sharp reversal of its gains through the previous year as investors started to question the ability of recent reforms to drive real change and mulled the potential impact of April’s consumption tax hike.

Outlook We continue to adopt a ‘high conviction’ investment strategy, focusing on companies that benefit from strong business models, high-quality management teams and attractive share price valuations. Whilst it is harder to find value after an extended period of outperformance, the smaller company market is a large, diverse and relatively under-researched one. Looking forward we expect investors to increasingly favour companies capable of generating earnings growth over more speculative situations.

Catherine Stanley Portfolio Manager April 2014 Note: The information contained in this report is historical and not indicative of future performance. All performance figures provided represent total returns. Statements contained in this report concerning future performance are the opinions of management and there can be no guarantee that such opinions will prove to be correct.


F&C Portfolios Fund – F&C Global Smaller Cap Equity Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Canada Entertainment One 73,276 403,135 0.81 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Denmark Chr Hansen Holding 12,937 513,468 1.04Topdanmark 11,972 348,750 0.70 ____________________________________________________________________________________________________________________________________________________________________________________________________________

862,218 1.74Finland Amer Sports 22,086 469,385 0.95 ____________________________________________________________________________________________________________________________________________________________________________________________________________

France Neopost 3,134 247,590 0.50Plastic Omnium 18,015 668,898 1.34 ____________________________________________________________________________________________________________________________________________________________________________________________________________

916,488 1.84Germany Aareal Bank 15,567 684,958 1.38ElringKlinger 9,143 360,524 0.72Gerresheimer 7,076 458,123 0.92Symrise 12,710 635,187 1.28 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,138,792 4.30Ireland C&C Group 113,765 744,783 1.50Glanbia 30,435 467,290 0.94Tarsus Group 93,511 319,199 0.64 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,531,272 3.08Italy Azimut Holding 22,504 803,318 1.62Banca Generali 18,445 608,852 1.22Interpump Group 34,301 528,538 1.06Tod's 2,901 376,840 0.76 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,317,548 4.66Japan Asics 31,200 614,699 1.24Disco 7,500 467,544 0.94Hitachi Chemical 38,300 522,518 1.05Kansai Paint 46,000 658,834 1.32LIXIL Group 21,500 594,154 1.19Miraca Holdings 9,700 425,732 0.86USS 54,300 764,002 1.54 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,047,483 8.14Netherlands ASM International 14,331 575,466 1.16Delta Lloyd 26,219 727,243 1.46Nutreco 14,995 666,506 1.34Ziggo 14,482 643,704 1.30 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,612,919 5.26Norway Storebrand 83,612 482,507 0.97 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Spain Mediaset Espana Comunicacion 55,648 648,472 1.30Viscofan 12,317 644,490 1.30 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,292,962 2.60Switzerland Forbo Holding 472 495,858 1.00Partners Group Holding 2,432 683,884 1.37 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,179,742 2.37United Kingdom Amerisur Resources 397,519 366,155 0.74Bellway 21,136 584,932 1.18CLS Holdings 33,583 743,519 1.50Dechra Pharmaceuticals 38,082 424,103 0.85Galliford Try 28,852 638,295 1.28Hill & Smith Holdings 62,042 562,160 1.13Hilton Food Group 69,647 585,785 1.18James Fisher & Sons 33,897 826,762 1.66Jazztel 66,378 1,009,999 2.03Keller Group 27,214 487,272 0.98Micro Focus International 35,003 484,640 0.98Novae Group 56,051 541,983 1.09Polar Capital Holdings 58,481 473,834 0.95Restaurant Group 45,949 546,186 1.10Robert Walters 74,825 392,633 0.79Senior 115,236 590,756 1.19Synergy Health 29,910 688,130 1.39Ted Baker 11,701 419,017 0.84Tyman 64,587 323,029 0.65Workspace Group REIT 69,309 684,625 1.38 ____________________________________________________________________________________________________________________________________________________________________________________________________________

11,373,815 22.89


F&C Portfolios Fund – F&C Global Smaller Cap Equity Schedule of Investments as at 31 March 2014 (continued)


Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

United States ACI Worldwide 13,390 792,554 1.59Airgas 6,903 735,238 1.48Alere 21,533 739,659 1.49Alleghany 1,772 721,877 1.45Allscripts Healthcare Solutions 47,292 852,675 1.72Conn's 7,272 282,517 0.57Covanta Holding 29,477 532,060 1.07DENTSPLY International 8,186 376,883 0.76DeVry Education Group 7,089 300,503 0.60FTI Consulting 8,933 297,826 0.60GATX 6,903 468,576 0.94Genesee & Wyoming 'A' 7,736 752,867 1.51Grand Canyon Education 7,729 360,944 0.73Granite Construction 24,735 987,669 1.99HCC Insurance Holdings 15,481 704,231 1.42Hub Group 'A' 12,388 495,396 1.00Kirby 8,520 862,650 1.74LKQ 15,495 408,293 0.82Markel 1,274 759,431 1.53Microsemi 17,099 427,988 0.86Monro Muffler Brake 11,153 634,383 1.28MSC Industrial Direct 'A' 9,703 839,504 1.69Pool 6,769 415,075 0.83Premiere Global Services 62,584 754,763 1.52Rex Energy 31,579 590,843 1.19Roper Industries 5,455 728,297 1.46Spectrum Pharmaceuticals 50,860 398,742 0.80Vail Resorts 10,800 752,760 1.51ViaSat 2,016 139,185 0.28WR Berkley 16,430 683,817 1.38 ____________________________________________________________________________________________________________________________________________________________________________________________________________


47,425,472 95.42


TOTAL NET ASSETS 49,701,319 100.00 ________________________________________________


F&C Portfolios Fund – F&C Global Smaller Cap Equity Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets

Insurance 10.00



Transportation 5.91


Chemicals 5.13


Retail 4.90


Healthcare 4.50

Software 4.29



Real Estate 2.88



Home Builders 2.46



Semiconductors 2.02

Oil & Gas 1.93

Media 1.30


Trucking & Leasing 0.94



Biotechnology 0.80

Office & Business Equipment 0.50





F&C Portfolios Fund F&C Japanese Equity Performance In the six months to 31 March 2014, the net asset value of the class I euro shares fell by 4.7% (net of fees). By comparison, the benchmark fell by 6.0%.

Although falling in value in absolute terms, the portfolio enjoyed a good six months of relative returns. The majority of the outperformance was generated by stock selection, with overweights in LIXIL Corporation (building materials), Exedy (auto parts), Mitsubishi Electric (electrical machinery), Asics (running shoe maker) and Disco (semiconductor production equipment) all adding value. Sector strategy had a broadly neutral impact. The exposure to banks in the first quarter of 2014 was unhelpful.

Market Review The Japanese market fell over the course of the review period as stocks fell victim to both profit taking after strong gains in 2013 and risk re-positioning by investors ahead of April’s consumption tax hike. There were also some doubts about prime minister Abe’s ability to get parliamentary approval for important structural reforms. Overall confidence was dented by a widening trade deficit that had been brought about by a weaker currency. News in November that the rate of economic growth had halved in the third quarter came as a disappointment and the government tabled a further stimulus programme in December. Fourth quarter growth also came in below expectations.

Outlook Earnings growth from Japan looks set to outstrip other global markets over the next couple of quarters and we expect that global investors will be more ready to consider Japanese equities now that the consumption tax hike has been implemented. The positive earnings momentum of the Japanese market, combined with cheap valuations and the accommodative monetary policy stance of the Bank of Japan underpins our positive outlook. We are currently overweight economy-senstive and financial companies and are underweight in defensives and global consumer discretionary stocks.

Jamie Jenkins Portfolio Manager April 2014



F&C Portfolios Fund – F&C Japanese Equity Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Japan Asics 154,300 2,205,698 1.57Astellas Pharma 344,400 2,969,906 2.12Canon 120,000 2,697,778 1.92Daiwa House Industry 144,000 1,776,425 1.27Disco 47,100 2,130,365 1.52East Japan Railway 78,400 4,201,173 2.99Exedy 94,500 1,922,769 1.37FANUC 23,000 2,949,964 2.10Hitachi Chemical 180,200 1,783,731 1.27Hitachi Metals 203,000 2,100,951 1.50Honda Motor 215,700 5,522,468 3.94Hoya 63,500 1,437,416 1.02Inpex 166,000 1,565,982 1.12Isuzu Motors 723,000 3,020,586 2.15Japan Tobacco 175,600 4,008,369 2.86JFE Holdings 73,600 1,007,509 0.72JX Holdings 473,400 1,657,612 1.18Kansai Paint 195,000 2,026,398 1.44KDDI 60,114 2,530,955 1.80Keyence 9,800 2,939,192 2.10Kirin Holdings 193,000 1,944,426 1.39Komatsu 218,200 3,286,704 2.34LIXIL Group 108,400 2,173,514 1.55Miraca Holdings 64,900 2,066,718 1.47Mitsubishi Electric 384,000 3,143,660 2.24Mitsubishi UFJ Financial Group 1,705,181 6,811,640 4.86Mitsui 282,660 2,905,479 2.07Mitsui Fudosan 152,619 3,385,941 2.41Mizuho Financial Group 1,624,700 2,335,079 1.66Murata Manufacturing 39,700 2,722,856 1.94Nihon Kohden 49,700 1,440,869 1.03Nintendo 10,200 881,026 0.63Nippon Telegraph & Telephone 60,234 2,384,509 1.70Nomura Holdings 266,900 1,244,815 0.89ORIX 341,000 3,490,745 2.49Rakuten 262,100 2,542,723 1.81Resona Holdings 546,400 1,920,921 1.37Shimamura 24,700 1,553,984 1.11Shin-Etsu Chemical 72,500 3,012,596 2.15SoftBank 64,800 3,560,966 2.54Sony 90,500 1,257,343 0.90Sumitomo Electric Industries 242,200 2,620,979 1.87Sumitomo Mitsui Financial Group 184,300 5,724,843 4.08Sysmex 57,800 1,339,744 0.96T&D Holdings 256,800 2,219,922 1.58Tokio Marine Holdings 178,351 3,892,738 2.77Tokyo Electron 56,200 2,504,350 1.79Toray Industries 505,000 2,426,464 1.73Toshiba 491,000 1,511,684 1.08Toyota Motor 220,915 9,067,631 6.46Toyota Tsusho 198,200 3,658,500 2.61 ____________________________________________________________________________________________________________________________________________________________________________________________________________


139,488,616 99.44


TOTAL NET ASSETS 140,276,305 100.00 ________________________________________________


F&C Portfolios Fund – F&C Japanese Equity Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets




Semiconductors 7.93


Chemicals 4.86


Insurance 4.35

Healthcare 3.46

Transportation 2.99

Agriculture 2.86

Real Estate 2.41

Oil & Gas 2.30



Office & Business Equipment 1.92

Internet 1.81

Textiles 1.73




Home Builders 1.27

Retail 1.11


Toys & Games 0.63





F&C Portfolios Fund F&C Latin American Equity Performance Over the six months to 31 March 2014, the net asset value of the class I GBP shares fell by 2.1%. This compared to a fall in the portfolio’s benchmark, the MSCI Latin America TR index, of 4.7%.

The portfolio outperformed the benchmark during the review period, with stock selection and country strategy both adding value. In the early part of the period, Banorte and two Mexican infrastructure related stocks, FibraMacquarie and Pinfra, benefited from the positive sentiment surrounding Mexican reforms. In the case of Brazilian post-secondary education provider Estacio, government initiatives continued to drive student enrolments and improve margins for the sector. As the period progressed, the portfolio also profited by being overweight position in Brazilian stocks and an underweight in Mexican stocks. However, the Brazilian portfolio is quite defensively positioned and, in light of the rally during March, an underweight position in banks in particular limited the overall level of outperformance.

Market Review Latin American markets fell back during the review period and were the most disappointing global equity region. In Brazil, weakening economic growth prospects and a lack of confidence in the incumbent administration to address the causes of it, continued to dampen sentiment. Although Mexican economic data too remained uninspiring, news surrounding energy reform proposals and the speed of their passage through the legislature positively surprised investors. There was, however, some signs in March of improving sentiment as Latin American equities enjoyed the first inflows for several months. In Brazil, the lacklustre economic growth and in particular rising inflation started to negatively impact the approval ratings of President Rousseff, fuelling a market rally on hopes that a more market-friendly candidate could replace her in the October Presidential election.

Outlook Our focus continues to be on higher-quality companies at reasonable valuations. The portfolio retains an overweight position in Brazil and underweight in Mexico. With proximity to an improving US and the potential passage of key domestic reforms, Mexico exhibits a better macro-economic environment. However, we struggle to find value within the stock market. Brazil offers better stock-selection opportunities although the top-down outlook offers a good deal less visibility due to macro headwinds and the presidential elections later this year.

Gareth Morgan Portfolio Manager April 2014



F&C Portfolios Fund – F&C Latin American Equity Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Brazil Ambev 615,230 4,621,382 7.49Banco Bradesco ADR 220,140 3,009,314 4.88BB Seguridade Participacoes 175,000 1,947,374 3.15BR Properties 223,000 1,841,121 2.98Bradespar (Preferred) 64,300 560,791 0.91Cia Brasileira de Distribuicao Grupo Pao de Acucar (Preferred) 26,338 1,164,288 1.89Companhia de Concessoes Rodoviarias 196,100 1,513,876 2.45Equatorial Energia 94,266 854,305 1.38Estacio Participacoes 279,700 2,833,566 4.59Itau Unibanco Holding (Preferred) 302,450 4,543,787 7.36Localiza Rent a Car 78,990 1,162,184 1.88Lojas Renner 34,500 981,870 1.59Petroleo Brasileiro ADR 97,455 1,351,701 2.19Petroleo Brasileiro ADR 91,454 1,202,620 1.95Telefonica Brasil (Preferred) 81,100 1,726,228 2.80Totvs 90,400 1,426,209 2.31Ultrapar Participacoes 107,100 2,606,187 4.22Vale ADR 158,700 2,194,821 3.56Vale ADR 114,074 1,420,221 2.30 ____________________________________________________________________________________________________________________________________________________________________________________________________________

36,961,845 59.88Chile Empresa Nacional de Electricidad ADR 39,457 1,703,753 2.76SACI Falabella 182,246 1,603,927 2.60 ____________________________________________________________________________________________________________________________________________________________________________________________________________

3,307,680 5.36Colombia Almacenes Exito 71,183 1,073,314 1.74 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Mexico Alfa ‘A’ 565,900 1,431,148 2.32Alsea 277,700 1,007,690 1.63America Movil ADR - Series L 110,176 2,190,299 3.55Fomento Economico Mexicano ADR 32,600 3,039,624 4.92Grupo Aeroportuario del Sureste ADR 18,000 2,207,520 3.58Grupo Financiero Banorte 'O' 502,100 3,397,292 5.50Macquarie Mexico Real Estate Management REIT 647,056 1,220,846 1.98Promotora y Operadora de Infraestructura 106,400 1,429,974 2.32 ____________________________________________________________________________________________________________________________________________________________________________________________________________

15,924,393 25.80Peru Credicorp 19,600 2,703,232 4.38 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Spain Cemex Latam Holding 210,880 1,759,119 2.85 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL SHARES 61,729,583 100.01 TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS

61,729,583 100.01

TOTAL INVESTMENTS 61,729,583 100.01 OTHER ASSETS / (LIABILITIES) (9,038) (0.01) ____________________________________________________

TOTAL NET ASSETS 61,720,545 100.00 ________________________________________________


F&C Portfolios Fund – F&C Latin American Equity Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets




Retail 7.56




Real Estate 4.96

Chemicals 4.22


Oil & Gas 4.14

Insurance 3.15



Software 2.31


Other Assets / (Liabilities) (0.01)



F&C Portfolios Fund F&C Plus Fund Performance In the six months to 31 March 2014 the Class I shares – Euro returned 6.9%. Portuguese bonds continued to be one of the best performers in the bond market, not only the corporates but especially the strong spread compression in government bonds against core and semi core countries.

The portfolio benefited from its exposure to Portuguese Corporates and Government bonds and although those were the main contributors to performance the Equity component which is now at 5% also contributed to the portfolio’s positive return.

Market Review The global economic cycle strengthened during the latter months of 2013 with the Global economy growing 2.9% last year. This improvement was driven by the acceleration of the developed economies – particularly the US, but also the Eurozone, which started to see moderate growth after recession ended in mid-2013. In the Emerging Markets, the situation is more diverse, but some of them (China) are posting relatively stable rates of growth.

The US economy ended 2013 strongly but some disappointing data emerged in early 2014 because of severe weather. The economy lost steam but is still on the right track. The improvement in activity allowed the Fed to start tapering its expansive monetary policy with no need to change its intervention rate (0.25%).

Trouble in some Emerging Markets and the rising risk of contagion created strong headwinds for equity market returns. Nevertheless, the NASDAQ Composite rose 7%, S&P500 rose around 6.5% and Dow Jones Industrial Average increased almost 6%.

After a long period of negative GDP growth, the Euro area finally returned into positive growth territory in Q4 of 2013. Consumer and producer confidence have increased slightly. Unemployment levels are high, but the increase is slowing down. Differences between countries remain large, with positive growth figures in the core countries and continuing recession in those on the periphery. The ECB has openly discussed the re-introduction of another LTRO and has been weighing the idea of cutting interest rates further, even introducing negative real interest rates. During this period, ECB cut its repo rate from 0.5% to 0.25%. European stock indexes had a positive performance during the period: DAX increased almost 6% and Eurostoxx50 rose around 3%.

Japan’s economy is definitely benefiting from the yen’s weakness, which is explained by the Bank of Japan’s aggressive easing policy. Besides this policy, the trade and the current account balances have been deteriorating recently with exports remaining weak, while imports continued to pick up. During the period, NIKKEI increased a little more than 3%.

In general, the majority of Emerging Market countries face a worsening growth caused by the after-effects of currency devaluations, rising inflation, and tighter credit conditions due to Fed tapering. The political turmoil in Ukraine and in Turkey, coupled with weak economic data from China, triggered a sell-off in several markets. China suffered a modest slowdown with slightly lower GDP growth but still driving the global growth. During this period, the Shenzhen stock exchange 300 decreased almost 10%.

Outlook Liquidity continues to be one of the main concerns; investments undertaken were mainly in liquid and public issues. The portfolio is now highly liquid as most of its assets have a high degree of liquidity.

Paulo Quintino Portfolio Manager April 2014 Note: The information contained in this report is historical and not indicative of future performance. All performance figures provided represent total returns. Statements contained in this report concerning future performance are the opinions of management and there can be no guarantee that such opinions will prove to be correct.

The accompanying notes form an integral part of these financial statementsF&C Portfolios Fund Interim Report & Account 2014 71

F&C Portfolios Fund – F&C Plus Fund Schedule of Investments as at 31 March 2014


Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS BONDS Cayman Islands BES Finance, V/R 5.72% 7.2.2035 EUR 3,000,000 2,862,000 2.00 ____________________________________________________________________________________________________________________________________________________________________________________________________________

France Credit Agricole, V/R 4.50% 22.2.2026 EUR 2,500,000 2,676,000 1.87Dexia Credit Local, V/R 1.56% 25.2.2015 EUR 2,500,000 2,461,625 1.72 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,137,625 3.59Germany Deutsche Bank, V/R 0.55% 11.3.2016 EUR 500,000 499,523 0.35Deutsche Bank, V/R 1.11% 20.9.2016 EUR 1,000,000 999,590 0.70Landesbank Baden-Wuerttemberg, V/R 0.66% 21.3.2016 EUR 3,000,000 2,869,800 2.00Norddeutsche Landesbank Girozentrale 4.50% 4.7.2014 EUR 3,000,000 3,029,262 2.11UniCredit Bank 4.40% 22.9.2014 EUR 2,000,000 2,019,800 1.41 ____________________________________________________________________________________________________________________________________________________________________________________________________________

9,417,975 6.57Luxembourg Espirito Santo Financiere 5.25% 12.6.2015 EUR 1,000,000 1,032,827 0.72 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Netherlands Achmea Hypotheekbank, V/R 0.95% 23.1.2015 EUR 1,750,000 1,755,504 1.23Cooperatieve Centrale Raiffeisen-Boerenleenbank, V/R 0.00% 15.7.2015 EUR 3,000,000 2,936,790 2.05EDP Finance 4.63% 13.6.2016 EUR 3,000,000 3,195,600 2.23EDP Finance 5.75% 21.9.2017 EUR 2,600,000 2,911,740 2.03Portugal Telecom International Finance 4.38% 24.3.2017 EUR 3,000,000 3,198,750 2.23Portugal Telecom International Finance 5.00% 4.11.2019 EUR 2,000,000 2,174,168 1.52Portugal Telecom International Finance 4.63% 8.5.2020 EUR 2,500,000 2,643,750 1.84 ____________________________________________________________________________________________________________________________________________________________________________________________________________

18,816,302 13.13Portugal Banco BPI 3.25% 15.1.2015 EUR 5,650,000 5,762,124 4.02Banco Comercial Portugues 9.25% 13.10.2014 EUR 2,400,000 2,502,372 1.75Banco Comercial Portugues 3.38% 27.2.2017 EUR 3,000,000 3,022,338 2.11Banco Comercial Portugues, V/R 5.00% 31.12.2049 EUR 192,000 81,706 0.06Banco Espirito Santo 3.38% 17.2.2015 EUR 2,000,000 2,044,894 1.43Banco Espirito Santo, V/R 7.13% 28.11.2023 EUR 500,000 526,147 0.37Caixa Geral de Depositos 8.00% 28.9.2015 EUR 4,682,000 5,132,760 3.58Caixa Geral de Depositos 3.88% 6.12.2016 EUR 2,500,000 2,662,875 1.86Caixa Geral de Depositos 4.25% 27.1.2020 EUR 2,500,000 2,731,345 1.91Galp Energia SGPS 4.13% 25.1.2019 EUR 3,000,000 3,167,310 2.21Parpublica - Participacoes Publicas 4.19% 15.10.2014 EUR 2,290,000 2,356,410 1.64Parpublica - Participacoes Publicas 5.25% 28.9.2017 EUR 7,500,000 8,625,000 6.02Portugal Obrigacoes do Tesouro 4.38% 16.6.2014 EUR 5,300,000 5,341,870 3.73Portugal Obrigacoes do Tesouro 6.40% 15.2.2016 EUR 4,000,000 4,377,600 3.05Portugal Obrigacoes do Tesouro 4.20% 15.10.2016 EUR 5,500,000 5,851,492 4.08Portugal Obrigacoes do Tesouro 4.35% 16.10.2017 EUR 3,000,000 3,206,948 2.24 ____________________________________________________________________________________________________________________________________________________________________________________________________________

57,393,191 40.06Spain Banco Bilbao Vizcaya Argentaria 3.00% 9.10.2014 EUR 1,600,000 1,620,458 1.13Santander International Debt 4.38% 4.9.2014 EUR 3,000,000 3,042,300 2.13Spain Government Bond 2.75% 30.4.2019 EUR 2,500,000 2,608,800 1.82 ____________________________________________________________________________________________________________________________________________________________________________________________________________

7,271,558 5.08Supranational European Investment Bank, V/R 2.29% 10.10.2020 EUR 2,000,000 1,995,600 1.39 ____________________________________________________________________________________________________________________________________________________________________________________________________________

United Kingdom HSBC Bank, V/R 0.61% 30.9.2020 EUR 3,000,000 2,965,500 2.07 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL BONDS 106,892,578 74.61 SHARES Portugal Banco Comercial Portugues 'R' 9,628,372 2,185,640 1.53CTT-Correios de Portugal 130,000 1,036,100 0.72 ____________________________________________________________________________________________________________________________________________________________________________________________________________

3,221,740 2.25 TOTAL SHARES 3,221,740 2.25 FUNDS Luxembourg BCP Global Sicav Institutional EURO Equities 31,135 2,825,190 1.97 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL FUNDS 2,825,190 1.97 MONEY MARKET INSTRUMENTS Portugal Portugal Treasury Bill 0.00% 20.3.2015 EUR 2,500,000 2,485,187 1.74 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL MONEY MARKET INSTRUMENTS 2,485,187 1.74


F&C Portfolios Fund – F&C Plus Fund Schedule of Investments as at 31 March 2014 (continued)


Date Currency

Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

COLLATERIZED MORTGAGE OBLIGATIONS Spain BBVA Hipotecario - Series 3 'A2', V/R 0.46% 21.11.2038 EUR 111,403 110,689 0.08 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL COLLATERIZED MORTGAGE OBLIGATIONS 110,689 0.08 ASSET BACKED SECURITIES Luxembourg Geldilux - Series 2011-TS 'A2', V/R 1.58% 8.12.2016 EUR 2,500,000 2,501,875 1.74 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Portugal TAGUS - Sociedade de Titularizacao de Creditos - Series 1 'SNR' 4.17% 16.2.2017 EUR 2,423,062 2,471,523 1.73TAGUS - Sociedade de Titularizacao de Creditos - Series 2 'SNR' 2.98% 16.2.2021 EUR 4,000,000 4,000,000 2.79 ____________________________________________________________________________________________________________________________________________________________________________________________________________

6,471,523 4.52 TOTAL ASSET BACKED SECURITIES 8,973,398 6.26 TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS

124,508,782 86.91

OTHER TRANSFERABLE SECURITIES BONDS Italy Intesa Sanpaolo, V/R 5.27% 3.2.2015 EUR 2,000,000 2,064,373 1.44 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Netherlands EDP Finance 4.13% 20.1.2021 EUR 3,000,000 3,149,250 2.20 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Portugal Banco Comercial Portugues, V/R 1.82% 29.9.2018 EUR 2,968,000 2,430,565 1.70Banco Comercial Portugues, V/R 1.74% 15.10.2018 EUR 942,500 770,189 0.54Banco Comercial Portugues, V/R 3.25% 29.6.2020 EUR 927,000 703,754 0.49Banco Comercial Portugues, V/R 4.00% 27.8.2020 EUR 459,000 360,318 0.25 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,264,826 2.98United Kingdom Bank of Scotland, V/R 3.18% 16.3.2020 EUR 2,500,000 2,672,005 1.86 ____________________________________________________________________________________________________________________________________________________________________________________________________________

United States JPMorgan Chase & Co, V/R 0.00% 2.11.2015 EUR 2,000,000 1,952,574 1.36 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL BONDS 14,103,028 9.84 SHARES Portugal Epri Estudos Planif 6,560 63,304 0.04Prosica Sociedade de Estudos Planificaco e Realizacao de Instalacoes Industriais 33,000 466,620 0.33 ____________________________________________________________________________________________________________________________________________________________________________________________________________

529,924 0.37 TOTAL SHARES 529,924 0.37 TOTAL OTHER TRANSFERABLE SECURITIES 14,632,952 10.21 TOTAL INVESTMENTS 139,141,734 97.12 OTHER ASSETS / (LIABILITIES) 4,126,990 2.88 ____________________________________________________

TOTAL NET ASSETS 143,268,724 100.00 ________________________________________________


F&C Portfolios Fund – F&C Plus Fund Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets


Sovereign 24.31



Oil & Gas 2.21

Supranational 1.39


Home Builders 0.37





F&C Portfolios Fund F&C Russia Fund Performance During the six months to 31 March 2014, the net asset value of the portfolio fell by 14.5% in US dollar terms (net of fees). By comparison, the benchmark fell by 14.4%.

The portfolio’s return broadly matched the index in what was a poor six months for the market. Among the main drivers of returns was a position in the internet stock Mail.Ru on the back of strong growth in revenues. Other profitable positions included the underweighting of sectors which are vulnerable to governmental interference, in particular the power utility companies. However, as foreign investors withdrew assets as the Ukraine crisis developed, overweight positions in Yandex and Sberbank hurt performance. Concerns about profitability in the context of a weakening economic outlook caused the credit card issuer TCS and the construction company Mostorest to underperform.

Market The Russian equity market suffered a sharp fall during the review period. Initially the market was supported by Russia’s relative isolation from concerns regards tapering of quantitative easing in the US. However, the aggressive stance taken towards Ukraine in March by President Putin caused sentiment to collapse and the stock market to sell off. The annexation of the Crimea by Russian troops drew only mild sanctions from the international community, but concerns that an escalation of the conflict would lead to a harsher response and significant damage to an already weak economy has resulted in further significant portfolio outflows.

Outlook The portfolio retains exposure to higher-quality companies offering relatively high earnings visibility and strong cash flow. Within these parameters there is a bias towards domestically orientated sectors benefiting from real wage growth and rising formal retail and banking penetration.

Gareth Morgan Fund Manager April 2014



F&C Portfolios Fund – F&C Russia Fund Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Cyprus Globaltrans Investment GDR 6,174 71,248 2.15 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Guernsey Etalon Group GDR 12,338 47,994 1.45Raven Russia 110,732 129,225 3.90 ____________________________________________________________________________________________________________________________________________________________________________________________________________

177,219 5.35Netherlands Yandex 'A' 7,000 211,330 6.37 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Russia AK Transneft (Preferred) 47 101,789 3.07Alrosa 94,300 96,773 2.92E.ON Russia 1,349,788 93,303 2.81Gazprom ADR 20,535 159,557 4.81Gazprom Neft ADR 4,144 85,491 2.58Lukoil ADR 2,933 163,919 4.95M Video 12,517 75,971 2.29Magnit GDR 5,677 311,100 9.38Mail.ru Group GDR 4,113 145,806 4.40MegaFon GDR 5,411 152,320 4.60MMC Norilsk Nickel ADR 10,453 173,834 5.25Mobile Telesystems ADR 9,400 164,406 4.96Moscow Exchange MICEX-RTS 37,610 61,726 1.86Mostotrest 'S' 14,390 37,946 1.14NOVATEK GDR 1,283 141,130 4.26Novolipetsk Steel GDR 4,022 50,838 1.53Phosagro GDR 7,558 84,271 2.55Rosneft GDR 22,441 149,435 4.51Sberbank of Russia 119,714 284,751 8.59Surgutneftegas (Preferred) 231,302 165,888 5.00Tatneft ADR 3,904 133,751 4.03 ____________________________________________________________________________________________________________________________________________________________________________________________________________


3,293,802 99.36


TOTAL NET ASSETS 3,314,999 100.00 ________________________________________________


F&C Portfolios Fund – F&C Russia Fund Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets

Oil & Gas 30.14

Internet 10.77





Real Estate 5.35

Pipelines 3.07


Chemicals 2.55

Retail 2.29

Transportation 2.15






F&C Portfolios Fund F&C Sharia Sustainable Opportunities Performance In the six months to 31 March 2014 the X shares rose 7.1% (USD; net of fees). By comparison, the benchmark, the MSCI Islamic World TR Index, returned 10.0%.

The portfolio underperformed its benchmark over the six month period and this was largely due to negative stock selection. Main detractors included the UK media group Pearson which issued weak earnings guidance in the face of a shifting market for US textbooks; Tullow Oil, which fell sharply after a series of disappointing exploration results that has left the business model challenged, and Aisin Seiki, the Japanese developer and producer of components and systems for the automotive industry, which reported slower sales due to higher-than-expected quality assurance costs. Conversely, a number of our positions in the healthcare services sector made a positive contribution to performance such as Mednax and the distribution giant Cardinal Health. Both companies showed steady earnings progress.

Review Global equity markets rose over the six months under review, with some volatility through the period. The market took heart from the strength of US GDP data and share prices were relatively resilient to the start of quantitative easing tapering by the US Federal Reserve. The global PMI lead indicator for December hit a 32-month high. Despite this, after the strong market rally risk aversion returned sharply at the start of 2014. This largely dissipated as US and European economic data demonstrated continued underlying strength, even with adverse weather conditions in the US. The Japanese market saw a flattening and then sharp reversal of its gains through the previous year, as investors started to question the ability of the Abenomic reforms to drive real change and mulled the potential impact of April’s consumption tax hike.

Outlook Despite increasing evidence that the global economic recovery is sustainable, we remain conscious that equity market valuations leave less room for error than they did at earlier stages of the recovery. 2013 results have shown that investors are quick to take profits when companies have been unable to live up to high expectations in their guidance. We have trimmed positions in number of stocks over the period where valuations have become too stretched after strong performance. Our investments remain focused around long-term themes that we expect to offer attractive returns regardless of shorter-term variables. We maintain a bias towards high-quality companies.

Alice Evans/ Jamie Jenkins Portfolio Managers April 2014



F&C Portfolios Fund – F&C Sharia Sustainable Opportunities Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Australia CSL 9,736 627,696 0.96Santos 73,277 916,877 1.41Woodside Petroleum 34,808 1,258,856 1.94 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,803,429 4.31Belgium Umicore 28,555 1,455,775 2.24 ____________________________________________________________________________________________________________________________________________________________________________________________________________

France Essilor International 6,049 610,271 0.94 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Germany Adidas 12,227 1,323,545 2.03SAP 23,228 1,881,141 2.89 ____________________________________________________________________________________________________________________________________________________________________________________________________________

3,204,686 4.92Japan Aisin Seiki 31,800 1,150,216 1.77Kubota 64,000 849,522 1.31Murata Manufacturing 10,700 1,011,453 1.55Toray Industries 223,000 1,476,778 2.27USS 72,100 1,014,448 1.56 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,502,417 8.46Netherlands QIAGEN 59,932 1,263,966 1.94 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Norway Tomra Systems 91,239 876,265 1.35 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Portugal Galp Energia 102,799 1,775,992 2.73 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Singapore ComfortDelGro 722,000 1,139,652 1.75Raffles Medical Group 263,184 671,799 1.03 ____________________________________________________________________________________________________________________________________________________________________________________________________________

1,811,451 2.78Switzerland Geberit 2,069 678,073 1.04Lindt & Spruengli 17 1,001,698 1.54Novartis 32,282 2,740,873 4.21Swatch Group 1,362 854,189 1.32 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,274,833 8.11United Kingdom Aggreko 44,914 1,123,924 1.73ASOS 6,929 598,955 0.92BG Group 73,058 1,361,100 2.09Pearson 43,553 771,838 1.19Rotork 27,603 1,218,106 1.87 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,073,923 7.80United States AGCO 21,821 1,203,646 1.85Amdocs 52,002 2,416,013 3.71Apple 1,466 786,861 1.21BorgWarner 25,704 1,580,025 2.43Calgon Carbon 66,186 1,444,840 2.22Cardinal Health 23,028 1,611,499 2.48Cognex 26,674 903,182 1.39CVS Caremark 37,004 2,770,119 4.26eBay 36,217 2,000,627 3.08Henry Schein 15,007 1,791,386 2.75Johnson Controls 31,112 1,472,220 2.26MEDNAX 27,686 1,715,978 2.64Mettler-Toledo International 6,991 1,647,639 2.53PerkinElmer 38,954 1,755,267 2.70Quanta Services 41,792 1,542,125 2.37Towers Watson & Co 'A' 13,279 1,514,470 2.33Tractor Supply 22,050 1,557,392 2.39Under Armour 'A' 5,825 667,778 1.03Union Pacific 11,862 2,226,023 3.42WW Grainger 6,877 1,737,543 2.67 ____________________________________________________________________________________________________________________________________________________________________________________________________________


61,997,641 95.30


TOTAL NET ASSETS 65,058,559 100.00 ________________________________________________


F&C Portfolios Fund – F&C Sharia Sustainable Opportunities Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets

Retail 9.53

Healthcare 9.30

Semiconductors 8.65

Oil & Gas 8.17




Transportation 5.17


Internet 4.00




Software 2.89


Textiles 2.27



Computers 1.21

Media 1.19


Biotechnology 0.96





F&C Portfolios Fund F&C Stewardship International

Performance In the six months to 31 March 2014, the class I and A shares rose 4.4% and 4.0% respectively in euro terms (net of fees). By comparison, the benchmark, the MSCI World Index, returned 7.4%.

The portfolio underperformed its benchmark over the six month period and this was largely due to negative stock selection. Key detractors included our holding in US grocer Whole Foods Market, which reported that same-store sales at its oldest stores grew at their slowest pace in at least two years. In the industrials sector the fund was heavily impacted by companies such as Kubota, amid concerns about lower farm machinery shipments in 2014, and Kansas City Southern, which suffered from slower development of some of its growth businesses and faced headline risk from potentially negative new rail regulation in Mexico. Conversely, a number of our positions in the healthcare services sector made a positive contribution to performance such as neonatology and anaesthesiology specialist Mednax and distribution giant Cardinal Health, as they both showed steady earnings progress.

Review Global equity markets rose over the six months under review, with some volatility through the period. The market took heart from the strength of US GDP data and share prices were relatively resilient to the start of quantitative easing tapering by the US Federal Reserve. The global purchasing managers index lead indicator for December hit a 32-month high. Despite this, after the strong market rally risk aversion returned sharply at the start of 2014. This largely dissipated as US and European economic data demonstrated continued underlying strength, even with adverse weather conditions in the US. The Japanese market saw a flattening and then sharp reversal of its gains through the previous year as investors started to question the ability of recent reforms to drive real change and mulled the potential impact of April’s consumption tax hike.

Outlook Despite increasing evidence that the global economic recovery is proving sustainable, we are conscious that equity market valuations leave less room for error than they did at earlier stages of the recovery. This has been illustrated by the volatility of the market in the first quarter of 2014, and 2013 corporate results have shown investors quick to take profits when companies have been unable to live up to high expectations in their guidance. This has proven to be a challenge to the portfolio over the period, though we have also trimmed positions in a number of stocks where valuations had become too stretched after strong performance. Nevertheless, we remain confident in the longer-term prospects for our investments, which remain focused around themes and stock specific developments that we expect to benefit from longer-term tailwinds beyond short-term macro and market instability. We maintain a bias towards high-quality companies and see market prospects as well balanced across each major region.

Jamie Jenkins/ Alice Evans Portfolio Managers April 2014



F&C Portfolios Fund – F&C Stewardship International Schedule of Investments as at 31 March 2014


Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES Australia Santos 188,118 1,707,834 1.40 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Belgium Umicore 49,970 1,848,390 1.52 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Brazil Itau Unibanco Holding ADR 131,701 1,419,973 1.16 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Denmark Novo Nordisk ‘B’ 48,776 1,612,370 1.32 ____________________________________________________________________________________________________________________________________________________________________________________________________________

France Essilor International 14,317 1,048,004 0.86Suez Environnement 92,266 1,360,462 1.12 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,408,466 1.98Germany Allianz 9,784 1,200,497 0.98Fresenius & Co 25,060 2,846,816 2.34Gerresheimer 27,846 1,308,066 1.07SAP 44,987 2,643,436 2.17 ____________________________________________________________________________________________________________________________________________________________________________________________________________

7,998,815 6.56Ireland Accenture 'A' 49,442 2,859,799 2.34Experian 136,657 1,786,917 1.47 ____________________________________________________________________________________________________________________________________________________________________________________________________________

4,646,716 3.81Italy Luxottica Group 39,093 1,641,124 1.35 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Japan Keyence 5,822 1,746,120 1.43Kubota 167,000 1,608,360 1.32Murata Manufacturing 21,200 1,454,019 1.19ORIX 166,200 1,701,354 1.40Toyota Motor 59,100 2,425,806 1.99USS 136,400 1,392,454 1.14 ____________________________________________________________________________________________________________________________________________________________________________________________________________

10,328,113 8.47Netherlands QIAGEN 86,021 1,316,295 1.08 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Norway DNB 148,943 1,879,014 1.54Tomra Systems 113,779 792,847 0.65 ____________________________________________________________________________________________________________________________________________________________________________________________________________

2,671,861 2.19Portugal Galp Energia 147,767 1,852,259 1.52 ____________________________________________________________________________________________________________________________________________________________________________________________________________

Switzerland Lindt & Spruengli 33 1,410,828 1.16Novartis 31,480 1,939,257 1.59Swatch Group 5,022 2,285,208 1.87 ____________________________________________________________________________________________________________________________________________________________________________________________________________

5,635,293 4.62United Kingdom ASOS 8,961 562,020 0.46BG Group 153,391 2,073,453 1.70Intertek Group 35,458 1,317,596 1.08Pearson 103,231 1,327,365 1.09Prudential 129,746 1,990,817 1.63Rotork 33,090 1,059,492 0.87Standard Chartered 95,629 1,449,976 1.19Telecity Group 76,900 649,275 0.53 ____________________________________________________________________________________________________________________________________________________________________________________________________________

10,429,994 8.55United States Agilent Technologies 47,213 1,915,583 1.57Amazon.com 7,903 1,929,634 1.58Amdocs 102,597 3,458,486 2.84Apple 9,141 3,559,834 2.92BorgWarner 18,390 820,195 0.67Cardinal Health 60,096 3,051,347 2.50Crown Castle International REIT 34,501 1,846,896 1.51CVS Caremark 46,919 2,548,418 2.09DaVita HealthCare Partners 45,850 2,290,422 1.88eBay 50,361 2,018,460 1.66Henry Schein 23,498 2,035,158 1.67IntercontinentalExchange Group 13,505 1,938,469 1.59Johnson Controls 38,502 1,321,905 1.08Kansas City Southern 23,701 1,755,070 1.44Life Time Fitness 57,363 2,001,931 1.64MEDNAX 42,205 1,897,962 1.56Mettler-Toledo International 10,748 1,837,903 1.51Nordstrom 42,216 1,912,853 1.57Praxair 31,872 3,028,679 2.48Principal Financial Group 62,293 2,078,618 1.70Roper Industries 21,064 2,040,454 1.67Spectra Energy 108,844 2,917,249 2.39State Street 32,021 1,615,862 1.33Towers Watson & Co 'A' 27,116 2,243,846 1.84


F&C Portfolios Fund – F&C Stewardship International Schedule of Investments as at 31 March 2014 (continued)


Quantity/Nominal

Value

MarketValue

in EUR% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

Tractor Supply 39,578 2,028,221 1.66Under Armour 'A' 16,518 1,373,934 1.13Union Pacific 16,165 2,200,998 1.81US Bancorp 104,059 3,235,966 2.65Whole Foods Market 47,238 1,738,030 1.43WW Grainger 11,281 2,068,027 1.70 ____________________________________________________________________________________________________________________________________________________________________________________________________________


120,227,913 98.60


TOTAL NET ASSETS 121,936,721 100.00 ________________________________________________


F&C Portfolios Fund – F&C Stewardship International Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets


Healthcare 10.74

Retail 8.33

Semiconductors 6.57


Computers 5.26

Oil & Gas 4.62


Insurance 4.31


Internet 3.70


Transportation 3.25



Chemicals 2.48

Pipelines 2.39

Software 2.17




Real Estate 1.51


Water 1.12

Media 1.09







F&C Portfolios Fund F&C US Smaller Companies Performance Over the six months to 31 March 2014, the Class A USD shares rose 9.3% (net of fees), slightly lagging the Russell 2000 NR Index, which rose 9.7%.

The portfolio slightly lagged the benchmark over the period as strong stock selection was slightly offset by negative sector allocation. Shares of Mercury Systems (a provider of computer systems for defence applications) climbed on speculation that the company was to be sold. Value was also added by Willbros Group, the contracting services provider for energy infrastructure, on improved earnings forecasts, and Pernix Therapeutics, a producer of paediatric medicines, after the company announced significant additions to its management team. Detractors over the period included America’s Car-Mart and Rex Energy.

Market Review The US smaller companies market roses of the rose over the six months under review, broadly matching the gains posted by the headline index. The market’s advance was made against a backdrop of some uncertainty, however. Worries about quantitative easing being withdrawn too quickly weighed on sentiment, as did some disappointing data on employment. The severe winter weather was also said to have had a negative impact on growth. The main driver of performance was the indication by the US Federal Reserve that interest rates were likely to remain on hold at their historic low for some to come.

Outlook Despite having started to rein in quantitative easing, the US Federal Reserve appears to have soothed investors’ concerns that stimulus will be withdrawn too quickly. The ISM manufacturing index and weekly jobless claims are normally reliable indicators and both suggest a growing economy. We expect economic growth to pick up in 2014, with a likely resurgence of capital investment by companies set to make an important contribution. The rich valuation of US equities on a number of measures nevertheless prevents us from being more bullish.

Nish Patel Portfolio Manager April 2014



F&C Portfolios Fund – F&C US Smaller Companies Schedule of Investments as at 31 March 2014


Date Currency

Quantity/Nominal

Value

MarketValue

in USD% of Net

Assets ____________________________________________________________________________________________________________________________________________________________________________________________________________

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS SHARES United States ACI Worldwide 10,269 607,822 1.94Airgas 6,107 650,457 2.08Alere 19,548 671,474 2.15Alleghany 1,337 544,667 1.74Allscripts Healthcare Solutions 38,071 686,420 2.20America's Car-Mart 14,180 520,690 1.67Andersons 3,173 187,969 0.60Astec Industries 14,590 640,647 2.05Atlantic Tele-Network 10,924 720,110 2.30Bottomline Technologies 19,938 700,821 2.24Cardinal Financial 32,535 580,099 1.86Chefs' Warehouse 28,853 617,454 1.98Conn's 7,542 293,007 0.94Covanta Holding 34,554 623,700 2.00CRA International 19,073 419,034 1.34DENTSPLY International 12,395 570,666 1.83DeVry Education Group 10,443 442,679 1.42FTI Consulting 14,214 473,895 1.52GATX 5,119 347,478 1.11Genesee & Wyoming 'A' 6,975 678,807 2.17Grand Canyon Education 8,253 385,415 1.23Granite Construction 19,464 777,197 2.49Hallmark Financial Services 33,680 279,881 0.89Harvard Bioscience 41,000 194,340 0.62HCC Insurance Holdings 12,068 548,973 1.76Hub Group 'A' 13,427 536,946 1.72ICF International 13,028 518,645 1.66INTL. FCStone 31,462 591,800 1.89Kirby 6,066 614,182 1.96LKQ 21,066 555,089 1.78Markel 925 551,392 1.76Mercury Systems 49,480 653,631 2.09Microsemi 23,879 597,691 1.91Monro Muffler Brake 11,329 644,394 2.06MSC Industrial Direct 'A' 7,338 634,884 2.03Orbital Sciences 25,293 705,675 2.26Pernix Therapeutics Holdings 63,654 340,549 1.09Pool 7,973 488,904 1.56Premiere Global Services 66,286 799,409 2.56Resolute Energy 62,204 447,869 1.43Rex Energy 37,028 692,794 2.22Roper Industries 4,393 586,509 1.88Safeguard Scientifics 27,988 620,774 1.99Sanderson Farms 2,501 196,303 0.63Simpson Manufacturing 14,041 496,069 1.59Spectrum Pharmaceuticals 61,393 481,321 1.54Tejon Ranch 14,574 493,038 1.58Universal Truckload Services 21,472 620,541 1.98Vail Resorts 8,192 570,982 1.83VASCO Data Security International 47,400 357,396 1.14ViaSat 2,028 140,013 0.45Willbros Group 55,289 697,747 2.23WR Berkley 11,375 473,427 1.51 ____________________________________________________________________________________________________________________________________________________________________________________________________________

28,271,676 90.46 TOTAL SHARES 28,271,676 90.46 WARRANTS United States Tejon Ranch 0.00% 31.8.2016 USD 2,430 8,869 0.03 ____________________________________________________________________________________________________________________________________________________________________________________________________________

TOTAL WARRANTS 8,869 0.03 TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR TRADED ON OTHER REGULATED MARKETS

28,280,545 90.49


TOTAL NET ASSETS 31,254,244 100.00 ________________________________________________


F&C Portfolios Fund – F&C US Smaller Companies Schedule of Investments as at 31 March 2014 (continued)

DERIVATIVES FUTURES CONTRACTS

Description

Numberof


in USD


in USD ____________________________________________________________________________________________________________________________________________________________________________________________________________

Unrealised Loss on Futures ContractsRussell 2000 Mini Index 12 20.6.2014 1,404,600 (16,260) ____________________________________________________________________________________________________________________________________________________________________________________________________________

Total Unrealised Loss on Futures Contracts 1,404,600 (16,260) The counterparty for futures contracts was Goldman, Sachs & Co. Collateral held for the above described derivative includes EUR 105,660 held as cash at the brokers.


F&C Portfolios Fund – F&C US Smaller Companies Distribution of Investments by Economic Sector as at 31 March 2014

% of Net

Sector Assets


Transportation 7.83

Insurance 7.66

Software 6.38

Oil & Gas 5.88


Retail 4.64

Healthcare 3.98




Internet 3.13



Aerospace & Defense 2.26

Agriculture 2.21

Biotechnology 2.16

Computers 2.09

Chemicals 2.08


Semiconductors 1.91



Trucking & Leasing 1.11






F&C Portfolios Fund Combined Statement of Net Assets As at 31 March 2014

F&C Active ReturnF&C Asia Pacific

DynamicF&C Diversified

GrowthF&C Emerging Markets Bond

EUR EUR EUR USD

ASSETS

Investments at market value 2 73,968,453 33,838,506 366,021,742 251,817,077Investments at cost 74,118,677 31,422,751 360,835,472 256,893,464 Purchased options contracts at market value 2 747,745 – 1,236,149 –Unrealised gain on futures contracts 2 – – 868,246 –Unrealised gain on forward foreign exchange contracts 2 28,195 – 923,418 578,132Unrealised gain on swap contracts 2 572,780 – 1,254,964 –Investments sold – 89,412 – 2,414,934Subscriptions receivable – – – 47Dividends and interest receivable 437,258 128,465 1,342,667 4,274,021Formation expenses 8 – – – –Other assets 852 2,809 – 8,410

Balance at bankers:

Cash and deposits 2 5,343,760 823,283 5,726,369 10,251,648Cash held at brokers 217,344 – 4,676,750 –

Total Assets 81,316,387 34,882,475 382,050,305 269,344,269

LIABILITIES

Written options contracts at market value 2 169,397 – 321,996 –Unrealised loss on futures contracts 2 53,626 – 223,245 –Unrealised loss on forward foreign exchange contracts 2 37,000 – 86,351 –Unrealised loss on swap contracts 2 147,111 – 416,605 –Payments settled on swap contracts 76,963 – 295,227 –Investment purchased – 257,283 – 4,339,742Redemptions payable – – 510,941 63,324Investment management and management company fees 4 81,985 6,250 123,229 272,830Expenses and taxes 221,224 93,668 515,568 466,996Bank overdraft 2 53 335 47,352 –Overdraft at brokers 777,365 – 825,719 –

Total Liabilities 1,564,724 357,536 3,366,233 5,142,892

NET ASSETS 79,751,663 34,524,939 378,684,072 264,201,377


F&C Portfolios Fund Combined Statement of Net Assets (continued) As at 31 March 2014

F&C Euro Inflation Linked Bond

F&C European Equity

F&C European Growth and

IncomeF&C European

High Yield BondEUR EUR EUR EUR

ASSETS

Investments at market value 2 23,946,795 50,573,104 57,975,844 28,750,792Investments at cost 23,236,357 37,459,113 40,585,761 27,027,680 Purchased options contracts at market value 2 – – – –Unrealised gain on futures contracts 2 – – – –Unrealised gain on forward foreign exchange contracts 2 – – – 102,587Unrealised gain on swap contracts 2 – – – –Investments sold – 271,751 – 354,017Subscriptions receivable – – 214,000 10,053Dividends and interest receivable 222,093 153,787 213,261 531,637Formation expenses 8 – – – –Other assets 6,663 – – 1,697

Balance at bankers:

Cash and deposits 2 107,361 44,907 22,975 1,973,639Cash held at brokers – – – –

Total Assets 24,282,912 51,043,549 58,426,080 31,724,422

LIABILITIES

Written options contracts at market value 2 – – – –Unrealised loss on futures contracts 2 – – – –Unrealised loss on forward foreign exchange contracts 2 – – – 3,652Unrealised loss on swap contracts 2 – – – –Payments settled on swap contracts – – – –Investment purchased – – – 345,112Redemptions payable – 8,971 – 719,328Investment management and management company fees 4 8,872 60,539 82,256 36,831Expenses and taxes 37,710 87,275 113,577 94,325Bank overdraft 2 – 330 – –Overdraft at brokers – – – –

Total Liabilities 46,582 157,115 195,833 1,199,248

NET ASSETS 24,236,330 50,886,434 58,230,247 30,525,174



F&C European SmallCap

F&C Global Climate

OpportunitiesF&C Global

Convertible Bond

F&C Global Emerging Markets

PortfolioEUR EUR EUR USD

ASSETS

Investments at market value 2 397,821,399 38,405,849 964,388,254 57,883,557Investments at cost 346,732,704 36,949,011 900,138,900 51,973,862 Purchased options contracts at market value 2 – – – –Unrealised gain on futures contracts 2 – – – –Unrealised gain on forward foreign exchange contracts 2 – – 7,221,798 –Unrealised gain on swap contracts 2 – – – –Investments sold 2,719,555 – 1,977,143 316,363Subscriptions receivable 5,366,181 439 2,782,807 –Dividends and interest receivable 579,739 19,773 3,928,778 163,707Formation expenses 8 – – – –Other assets 1,389 5,819 – 14,915

Balance at bankers:

Cash and deposits 2 12,717,873 295,353 4,280,754 593,610Cash held at brokers – – – –

Total Assets 419,206,136 38,727,233 984,579,534 58,972,152

LIABILITIES

Written options contracts at market value 2 – – – –Unrealised loss on futures contracts 2 – – – –Unrealised loss on forward foreign exchange contracts 2 – – 842,694 –Unrealised loss on swap contracts 2 – – – –Payments settled on swap contracts – – – –Investment purchased 8,590,295 – – –Redemptions payable 605,455 3,115 604,028 –Investment management and management company fees 4 430,274 12,391 801,977 15,873Expenses and taxes 208,735 91,875 1,155,668 254,450Bank overdraft 2 5,444 – 193 82,508Overdraft at brokers – – – –

Total Liabilities 9,840,203 107,381 3,404,560 352,831

NET ASSETS 409,365,933 38,619,852 981,174,974 58,619,321



F&C Global Smaller Cap

EquityF&C Japanese

EquityF&C Latin

American Equity F&C Plus FundUSD EUR USD EUR

ASSETS

Investments at market value 2 47,425,472 139,488,616 61,729,583 139,141,734Investments at cost 40,505,767 129,573,485 65,514,480 127,715,880 Purchased options contracts at market value 2 – – – –Unrealised gain on futures contracts 2 – – – –Unrealised gain on forward foreign exchange contracts 2 – – – –Unrealised gain on swap contracts 2 – – – –Investments sold 468,827 2,873,230 – –Subscriptions receivable – – – –Dividends and interest receivable 77,046 1,196,953 46,362 1,908,537Formation expenses 8 9,594 – – –Other assets 8,037 7,829 3,584 518

Balance at bankers:

Cash and deposits 2 2,746,388 – 501,315 6,540,621Cash held at brokers – – – –

Total Assets 50,735,364 143,566,628 62,280,844 147,591,410

LIABILITIES

Written options contracts at market value 2 – – – –Unrealised loss on futures contracts 2 – – – –Unrealised loss on forward foreign exchange contracts 2 – – – –Unrealised loss on swap contracts 2 – – – –Payments settled on swap contracts – – – –Investment purchased – 490,612 – 4,028,173Redemptions payable 880,281 1,995,984 – –Investment management and management company fees 4 63,246 105,033 46,787 168,382Expenses and taxes 89,616 197,816 513,512 126,131Bank overdraft 2 902 500,878 – –Overdraft at brokers – – – –

Total Liabilities 1,034,045 3,290,323 560,299 4,322,686

NET ASSETS 49,701,319 140,276,305 61,720,545 143,268,724



F&C Russia Fund

F&C Sharia Sustainable

OpportunitiesF&C Stewardship

InternationalF&C US Smaller

CompaniesUSD USD EUR USD

ASSETS

Investments at market value 2 3,293,802 61,997,641 120,227,913 28,280,545Investments at cost 3,411,629 52,265,965 97,960,342 21,490,677 Purchased options contracts at market value 2 – – – –Unrealised gain on futures contracts 2 – – – –Unrealised gain on forward foreign exchange contracts 2 – – – –Unrealised gain on swap contracts 2 – – – –Investments sold 30,241 620,749 503,724 227,224Subscriptions receivable 29,816 – 250,109 25,355Dividends and interest receivable – 83,261 253,384 14,058Formation expenses 8 – – – –Other assets 1,304 1,400 6,607 6,230

Balance at bankers:

Cash and deposits 2 45,387 2,515,924 941,785 2,788,346Cash held at brokers – – – 105,660

Total Assets 3,400,550 65,218,975 122,183,522 31,447,418

LIABILITIES

Written options contracts at market value 2 – – – –Unrealised loss on futures contracts 2 – – – 16,260Unrealised loss on forward foreign exchange contracts 2 – – – –Unrealised loss on swap contracts 2 – – – –Payments settled on swap contracts – – – –Investment purchased – – – –Redemptions payable – – 2,481 59,044Investment management and management company fees 4 4,873 62,571 88,340 43,682Expenses and taxes 80,678 97,082 155,964 74,188Bank overdraft 2 – 763 16 –Overdraft at brokers – – – –

Total Liabilities 85,551 160,416 246,801 193,174

NET ASSETS 3,314,999 65,058,559 121,936,721 31,254,244



CombinedEUR

ASSETS

Investments at market value 2 2,806,345,001Investments at cost 2,590,771,187 Purchased options contracts at market value 2 1,983,894Unrealised gain on futures contracts 2 868,246Unrealised gain on forward foreign exchange contracts 2 8,695,466Unrealised gain on swap contracts 2 1,827,744Investments sold 11,747,903Subscriptions receivable 8,663,653Dividends and interest receivable 14,296,312Formation expenses 8 6,961Other assets 66,020

Balance at bankers:

Cash and deposits 2 52,925,427Cash held at brokers 4,970,757

Total Assets 2,912,397,384

LIABILITIES

Written options contracts at market value 2 491,393Unrealised loss on futures contracts 2 288,669Unrealised loss on forward foreign exchange contracts 2 969,697Unrealised loss on swap contracts 2 563,716Payments settled on swap contracts 372,190Investment purchased 16,860,210Redemptions payable 5,177,783Investment management and management company fees 4 2,376,293Expenses and taxes 4,243,394Bank overdraft 2 615,673Overdraft at brokers 1,603,084

Total Liabilities 33,562,102

NET ASSETS 2,878,835,282


F&C Portfolios Fund Combined Statement of Operations and Changes in Net Assets (continued) For the period ended 31 March 2014

F&C Active Return




EUR EUR EUR USD

INCOME

Dividends (net of withholding taxes) 2 17,925 255,755 801,975 –Interest (net of withholding taxes) 2 258,311 – 783,349 8,603,003Bank interest on cash account 2 – – 2,533 –Security lending income 2 – 1,149 7,870 47,979Other income 3 38,610 9,471 132,054 97,244

Total Income 314,846 266,375 1,727,781 8,748,226

EXPENDITURE

Investment management and management company fees 4,7 (463,808) (18,741) (451,360) (1,671,952)Performance fees 12 – – – –Administration and custodian fees 5 (46,525) (38,480) (164,678) (164,801)Audit, tax and legal fees (10,867) (10,272) (25,111) (46,872)Taxe d'abonnement 9 (6,099) (1,721) (29,938) (17,556)Bank interest and charges (876) (185) (643) (1,925)Directors' fees 6 (961) (359) (3,813) (3,220)Distribution fees 10 (21,096) (8,511) (92,596) (73,310)Sundry expenses 3 (27,611) (17,538) (58,622) (797,868)

Total Expenditure (577,843) (95,807) (826,761) (2,777,504)

Net income from investments (262,997) 170,568 901,020 5,970,722

Net realised gain / (loss) on sales of investments (62,343) 298,967 628,719 (6,438,668)Net realised gain / (loss) on foreign exchange and forward foreign exchange contracts 1,249,458 (572,063) 7,760,322 3,282,210Net realised gain / (loss) on options contracts 409,644 – 535,152 –Net realised gain / (loss) on futures contracts 53,477 – 2,128,790 –Net realised gain / (loss) on swap contracts (5,475) – 807,536 –

Net realised gain / (loss) for the period 1,381,764 (102,528) 12,761,539 2,814,264

Net change in unrealised appreciation / (depreciation) on investments 2 74,815 977,076 (352,941) 9,700,820Net change in unrealised appreciation / (depreciation) on forward foreign exchange contracts 2 (438,576) – (1,342,408) (394,475)Net change in unrealised appreciation / (depreciation) on options contracts 2 (255,544) – (555,404) –Net change in unrealised appreciation / (depreciation) on futures contracts 2 598 – 1,723,143 –Net change in unrealised appreciation / (depreciation) on swap contracts 2 260,081 – 371,947 –Net change in unrealised appreciation / (depreciation) on foreign currencies 2 (14,423) 17,768 (30,829) (1,560)



F&C Active Return




EUR EUR EUR USD

Total net investment income / (loss) for the period 1,008,715 892,316 12,575,047 12,119,049

Subscriptions of shares 3 15,108 195,394 3,676,772 23,856,416Redemptions of shares 3 (13,273,337) (130,871) (2,688,404) (70,040,586)Dividends paid 15 – (736,216) – (9,980,708)

Total finance costs (13,258,229) (671,693) 988,368 (56,164,878)

Net assets at the beginning of the period 92,001,177 34,304,316 365,120,657 308,247,206

Reversal of Swing Pricing 17 – – – –Currency translation adjustment – – – –

Net assets at the end of the period 79,751,663 34,524,939 378,684,072 264,201,377



F&C Euro Inflation Linked

BondF&C European

Equity


IncomeF&C European


INCOME

Dividends (net of withholding taxes) 2 – 357,326 546,660 –Interest (net of withholding taxes) 2 – – – 1,617,675Bank interest on cash account 2 – – – –Security lending income 2 62 4,984 14,207 –Other income 3 20,766 18,390 26,407 14,009

Total Income 20,828 380,700 587,274 1,631,684

EXPENDITURE

Investment management and management company fees 4,7 (35,591) (330,514) (459,042) (272,788)Performance fees 12 – – – –Administration and custodian fees 5 (15,744) (37,339) (32,175) (36,456)Audit, tax and legal fees (2,350) (5,955) (6,912) (5,365)Taxe d'abonnement 9 (1,129) (12,800) (14,621) (11,392)Bank interest and charges (48,782) (230) (267) (152)Directors' fees 6 (207) (526) (612) (475)Distribution fees 10 (5,206) (12,836) (14,888) (13,146)Sundry expenses 3 (5,867) (12,050) (33,008) (555,402)

Total Expenditure (114,876) (412,250) (561,525) (895,176)

Net income from investments (94,048) (31,550) 25,749 736,508

Net realised gain / (loss) on sales of investments 9,021 3,321,214 2,184,767 1,676,211Net realised gain / (loss) on foreign exchange and forward foreign exchange contracts – 51,139 101,177 (184,433)Net realised gain / (loss) on options contracts – – – –Net realised gain / (loss) on futures contracts – – – –Net realised gain / (loss) on swap contracts – – – –

Net realised gain / (loss) for the period (85,027) 3,340,803 2,311,693 2,228,286

Net change in unrealised appreciation / (depreciation) on investments 2 353,269 519,456 3,071,141 (530,185)Net change in unrealised appreciation / (depreciation) on forward foreign exchange contracts 2 – – – 169,515Net change in unrealised appreciation / (depreciation) on options contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on futures contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on swap contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on foreign currencies 2 – (1,533) (1,388) (17,287)



F&C Euro Inflation Linked

BondF&C European

Equity


IncomeF&C European


Total net investment income / (loss) for the period 268,242 3,858,726 5,381,446 1,850,329

Subscriptions of shares 3 4,392,706 7,608,703 1,796,631 23,634,452Redemptions of shares 3 (64,526) (10,517,591) (6,797,664) (37,908,684)Dividends paid 15 (244,351) (477,922) (661,173) (2,474,838)

Total finance costs 4,083,829 (3,386,810) (5,662,206) (16,749,070)







F&C Global Climate

Opportunities

F&C Global Convertible

Bond

F&C Global Emerging

Markets Portfolio

EUR EUR EUR USD

INCOME

Dividends (net of withholding taxes) 2 1,348,906 144,512 1,080,453 532,413Interest (net of withholding taxes) 2 2,008 479 8,879,464 14Bank interest on cash account 2 – – – –Security lending income 2 54,233 1,483 – 1,050Other income 3 518 20,356 215,699 47,336

Total Income 1,405,665 166,830 10,175,616 580,813

EXPENDITURE

Investment management and management company fees 4,7 (1,907,338) (58,992) (4,828,463) (131,799)Performance fees 12 – – – –Administration and custodian fees 5 (43,058) (33,119) (257,779) (134,178)Audit, tax and legal fees (22,066) (7,959) (167,373) (12,973)Taxe d'abonnement 9 (57,543) (2,280) (174,595) (4,340)Bank interest and charges (762) – (4,339) (1,058)Directors' fees 6 (1,951) (539) (11,344) (879)Distribution fees 10 (74,778) (9,991) (271,951) (17,442)Sundry expenses 3 (222,625) (28,128) (792,946) (24,674)

Total Expenditure (2,330,121) (141,008) (6,508,790) (327,343)

Net income from investments (924,456) 25,822 3,666,826 253,470

Net realised gain / (loss) on sales of investments 4,525,098 10,993,271 51,016,400 1,567,538Net realised gain / (loss) on foreign exchange and forward foreign exchange contracts (28,165) (1,762,235) (3,391,362) (2,176,489)Net realised gain / (loss) on options contracts – – – –Net realised gain / (loss) on futures contracts – – – –Net realised gain / (loss) on swap contracts – – – –

Net realised gain / (loss) for the period 3,572,477 9,256,858 51,291,864 (355,481)

Net change in unrealised appreciation / (depreciation) on investments 2 35,123,041 (7,899,785) (6,718,836) 2,629,339Net change in unrealised appreciation / (depreciation) on forward foreign exchange contracts 2 – – 3,817,234 –Net change in unrealised appreciation / (depreciation) on options contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on futures contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on swap contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on foreign currencies 2 525 205 39,343 4,719




F&C Global Climate

Opportunities

F&C Global Convertible

Bond

F&C Global Emerging

Markets Portfolio

EUR EUR EUR USD

Total net investment income / (loss) for the period 38,696,043 1,357,278 48,429,605 2,278,577

Subscriptions of shares 3 309,696,885 916,995 415,644,315 3,360,352Redemptions of shares 3 (125,598,481) (14,968,570) (552,217,375) (29,960,010)Dividends paid 15 (709,635) (345,406) (17,049,569) (1,266,468)

Total finance costs 183,388,769 (14,396,981) (153,622,629) (27,866,126)

Net assets at the beginning of the period 186,812,918 51,659,555 1,086,367,998 84,206,870

Reversal of Swing Pricing 17 468,203 – – –Currency translation adjustment – – – –





EquityF&C Japanese

EquityF&C Latin


INCOME

Dividends (net of withholding taxes) 2 195,512 1,327,332 860,380 –Interest (net of withholding taxes) 2 – – – 2,242,456Bank interest on cash account 2 – – – –Security lending income 2 – 3,285 – –Other income 3 5,243 42,060 24,045 59,486

Total Income 200,755 1,372,677 884,425 2,301,942

EXPENDITURE

Investment management and management company fees 4,7 (308,245) (567,459) (255,634) (890,731)Performance fees 12 – – (378,071) –Administration and custodian fees 5 (35,854) (68,032) (71,363) (29,706)Audit, tax and legal fees (4,690) (17,132) (7,458) (7,972)Taxe d'abonnement 9 (10,083) (7,933) (3,163) (6,840)Bank interest and charges (101) (506) – –Directors' fees 6 (415) (1,514) (706) (1,400)Distribution fees 10 (10,691) (36,747) (16,231) –Sundry expenses 3 (60,864) (50,986) (27,660) (4,679)


Net income from investments (230,188) 622,368 124,139 1,360,614

Net realised gain / (loss) on sales of investments 1,807,600 6,027,591 (13,640) 1,392,736Net realised gain / (loss) on foreign exchange and forward foreign exchange contracts 167,559 (4,204,166) (941,539) –Net realised gain / (loss) on options contracts – – – –Net realised gain / (loss) on futures contracts – – – –Net realised gain / (loss) on swap contracts – – – –

Net realised gain / (loss) for the period 1,744,971 2,445,793 (831,040) 2,753,350

Net change in unrealised appreciation / (depreciation) on investments 2 3,525,543 (9,555,556) 1,099,605 6,471,077Net change in unrealised appreciation / (depreciation) on forward foreign exchange contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on options contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on futures contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on swap contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on foreign currencies 2 (2,051) (33,248) 1,507 –




EquityF&C Japanese

EquityF&C Latin


Total net investment income / (loss) for the period 5,268,463 (7,143,011) 270,072 9,224,427

Subscriptions of shares 3 15,748,875 17,522,547 (13,546) –Redemptions of shares 3 (11,021,967) (13,840,098) (5,122,438) –Dividends paid 15 – (1,312,291) (1,052,459) –

Total finance costs 4,726,908 2,370,158 (6,188,443) –






F&C Russia Fund


Opportunities

F&C Stewardship International


USD USD EUR USD

INCOME

Dividends (net of withholding taxes) 2 51,418 259,612 692,589 63,057Interest (net of withholding taxes) 2 – – 1,472 –Bank interest on cash account 2 – – – –Security lending income 2 346 – 2,079 –Other income 3 70,196 2,899 42,899 25,832

Total Income 121,960 262,511 739,039 88,889

EXPENDITURE

Investment management and management company fees 4,7 (39,884) (319,464) (647,117) (250,592)Performance fees 12 – – – –Administration and custodian fees 5 – (23,737) (52,142) (41,196)Audit, tax and legal fees (11,426) (7,007) (14,318) (3,895)Taxe d'abonnement 9 (1,740) (3,338) (18,369) (8,406)Bank interest and charges (84) – (138) –Directors' fees 6 (60) (584) (1,134) (344)Distribution fees 10 – (15,283) (29,556) (8,149)Sundry expenses 3 (51,638) (63,435) (22,117) (5,673)


Net income from investments 17,128 (170,337) (45,852) (229,366)

Net realised gain / (loss) on sales of investments (44,084) 644,811 3,175,534 3,083,218Net realised gain / (loss) on foreign exchange and forward foreign exchange contracts 39,739 (27,981) (501,259) –Net realised gain / (loss) on options contracts – – – –Net realised gain / (loss) on futures contracts – – – 23,831Net realised gain / (loss) on swap contracts – – – –

Net realised gain / (loss) for the period 12,783 446,493 2,628,423 2,877,683

Net change in unrealised appreciation / (depreciation) on investments 2 (644,998) 3,597,699 2,020,763 (286,972)Net change in unrealised appreciation / (depreciation) on forward foreign exchange contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on options contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on futures contracts 2 – – – (16,260)Net change in unrealised appreciation / (depreciation) on swap contracts 2 – – – –Net change in unrealised appreciation / (depreciation) on foreign currencies 2 – 55,915 10,453 –



F&C Russia Fund


Opportunities

F&C Stewardship International


USD USD EUR USD

Total net investment income / (loss) for the period (632,215) 4,100,107 4,659,639 2,574,451

Subscriptions of shares 3 93,415 4,954,436 49,287,948 8,100,219Redemptions of shares 3 (1,675,331) – (40,410,777) (12,406,250)Dividends paid 15 (168,158) – (151,950) –

Total finance costs (1,750,074) 4,954,436 8,725,221 (4,306,031)






CombinedEUR

INCOME

Dividends (net of withholding taxes) 2 7,997,262Interest (net of withholding taxes) 2 20,027,202Bank interest on cash account 2 2,533Security lending income 2 125,176Other income 3 838,654

Total Income 28,990,827

EXPENDITURE

Investment management and management company fees 4,7 (13,092,344)Performance fees 12 (274,312)Administration and custodian fees 5 (1,197,064)Audit, tax and legal fees (372,087)Taxe d'abonnement 9 (380,541)Bank interest and charges (59,179)Directors' fees 6 (29,339)Distribution fees 10 (693,683)Sundry expenses 3 (2,580,219)

Total Expenditure (18,678,768)

Net income from investments 10,312,059

Net realised gain / (loss) on sales of investments 85,627,436Net realised gain / (loss) on foreign exchange and forward foreign exchange contracts (1,232,359)Net realised gain / (loss) on options contracts 944,796Net realised gain / (loss) on futures contracts 2,199,558Net realised gain / (loss) on swap contracts 802,061

Net realised gain / (loss) for the period 98,653,551

Net change in unrealised appreciation / (depreciation) on investments 2 37,789,535Net change in unrealised appreciation / (depreciation) on forward foreign exchange contracts 2 1,919,551Net change in unrealised appreciation / (depreciation) on options contracts 2 (810,948)Net change in unrealised appreciation / (depreciation) on futures contracts 2 1,711,943Net change in unrealised appreciation / (depreciation) on swap contracts 2 632,028Net change in unrealised appreciation / (depreciation) on foreign currencies 2 12,053

Total net investment income / (loss) for the period 139,907,713



CombinedEUR

Subscriptions of shares 3 875,092,381Redemptions of shares 3 (912,903,316)Dividends paid 15 (33,209,458)

Total finance costs (71,020,393)

Net assets at the beginning of the period 2,817,318,058

Reversal of Swing Pricing 17 468,203Currency translation adjustment (7,838,299)

Net assets at the end of the period 2,878,835,282


F&C Portfolios Fund Number of Shares Outstanding As at 31 March 2014

Portfolio Currency F&C Active Return - Class A Shares - Euro € 100,530F&C Active Return - Class I Shares - Euro € 83,250F&C Active Return - Class I Shares - GBP (Hedged) £ 466,503F&C Asia Pacific Dynamic - Class A Shares - Euro € 25,181F&C Asia Pacific Dynamic - Class I Shares - Euro € 241,689F&C Asia Pacific Dynamic - Class X Shares - Euro € 2,646,385F&C Diversified Growth - Class A Shares - Euro € 32,694F&C Diversified Growth - Class A Shares - GBP (Hedged) £ 4,890,733F&C Diversified Growth - Class I Shares - Euro € 17,074F&C Diversified Growth - Class X Shares - Euro € 329,305F&C Diversified Growth - Class X Shares - GBP (Hedged) £ 2,509,777F&C Emerging Markets Bond - Class A Shares - US$ $ 732,055F&C Emerging Markets Bond - Class C Shares - Euro (Hedged) € 1,182,423F&C Emerging Markets Bond - Class I Shares - Euro (Hedged) € 1,183,430F&C Emerging Markets Bond - Class I Shares - US$ $ 5,609,600F&C Euro Inflation Linked Bond - Class A Shares - Euro € 21,839F&C Euro Inflation Linked Bond - Class I Shares - Euro € 2,572,967F&C European Equity - Class A Shares - Euro € 3,097,362F&C European Growth and Income - Class A Shares - Euro € 513,945F&C European Growth and Income - Class A Shares - GBP £ 2,880,926F&C European High Yield Bond - Class A Shares - Euro € 2,138,139F&C European SmallCap - Class A Shares - Euro € 10,237,897F&C European SmallCap - Class I Shares - Euro € 8,357,207F&C European SmallCap - Class I Acc Shares - Euro (1) € 939,085F&C European SmallCap - Class I Shares - GBP £ 1,621,142F&C European SmallCap - Class R Acc Shares - Euro (2) € 3,037,486F&C Global Climate Opportunities - Class A Shares - Euro € 31,762F&C Global Climate Opportunities - Class A Shares - GBP £ 3,308F&C Global Climate Opportunities - Class I Shares - Euro € 104,021F&C Global Climate Opportunities - Class I Shares - GBP £ 890F&C Global Climate Opportunities - Class X Shares - GBP £ 392,310F&C Global Climate Opportunities - Hong Kong Class A Shares - US$ $ 343F&C Global Convertible Bond - Class A Shares - CHF (Hedged) CHF 756,897F&C Global Convertible Bond - Class A Acc Shares - CHF (Hedged) CHF 4,946,453F&C Global Convertible Bond - Class A Shares - Euro € 6,572,347F&C Global Convertible Bond - Class A Shares - Euro (Hedged) € 19,103,768F&C Global Convertible Bond - Class A Acc Shares - Euro (Hedged) € 961,728F&C Global Convertible Bond - Class A Shares - GBP £ 173,844F&C Global Convertible Bond - Class A Acc Shares - US$ (Hedged) $ 465,331F&C Global Convertible Bond - Class I Shares - CHF (Hedged) CHF 2,290,000F&C Global Convertible Bond - Class I Shares - Euro € 10,292,214F&C Global Convertible Bond - Class I Shares - Euro (Hedged) € 14,744,507F&C Global Convertible Bond - Class I Acc Shares - Euro (Hedged) € 4,113,187F&C Global Convertible Bond - Class P Shares - Euro (Hedged) (3) € 10,381F&C Global Convertible Bond - Class R Shares - Euro (4) € 443,611F&C Global Convertible Bond - Hong Kong Class A Shares - US$ $ 1,399,329F&C Global Emerging Markets Portfolio - Class A Shares - US$ $ 278,538F&C Global Emerging Markets Portfolio - Class X Shares - GBP £ 3,579,977F&C Global Smaller Cap Equity - Class A Acc Shares - Euro € 1,229,451F&C Global Smaller Cap Equity - Class A Acc Shares - US$ $ 1,659,597F&C Global Smaller Cap Equity - Class I Acc Shares - GBP £ 453,940F&C Global Smaller Cap Equity - Class I Shares - US$ $ 60,780F&C Japanese Equity - Class A Shares - Euro € 201,515F&C Japanese Equity - Class I Shares - Euro € 4,112,776F&C Japanese Equity - Class I Shares - GBP £ 6,133,513F&C Japanese Equity - Class X Shares - GBP £ 445,500F&C Latin American Equity - Class I Shares - GBP £ 426,369


F&C Portfolios Fund Number of Shares Outstanding (continued) As at 31 March 2014

Portfolio Currency F&C Plus Fund - Class I Shares - Euro € 1,923,020F&C Russia Fund - Class A Shares - US$ $ 70,306F&C Sharia Sustainable Opportunities - Class A Shares - US$ (5) $ 165,000F&C Sharia Sustainable Opportunities - Class X Shares - US$ $ 4,748,448F&C Stewardship International - Class A Shares - Euro € 3,614,748F&C Stewardship International - Class A Shares - US$ $ 107,806F&C Stewardship International - Class I Shares - Euro € 4,505,365F&C Stewardship International - Class R Shares - Euro (4) € 2,245,662F&C US Smaller Companies - Class A Shares - US$ $ 207,127 (1) Launched on 16 January 2014 (2) Launched on 16 October 2013 (3) Launched on 8 January 2014 (4) Launched on 26 November 2013 (5) Launched on 20 January 2014

108

F&C Portfolios Fund Notes to the Financial Statements as at 31 March 2014

1. F&C PORTFOLIOS FUND, (THE “FUND”) The Fund is a “Société d’Investissement à Capital Variable” and is qualified as a Luxembourg investment company. Under the laws of the Grand Duchy of Luxembourg, the Fund is registered as an undertakings for collective investment pursuant to Part I of the Law of 17 December 2010 relating to undertakings for collective investment (the “Law”).

RBS (Luxembourg) S.A. was designated by the Directors of the Fund as management company by an agreement dated 30 December 2005 (the “Management Company”). The list of the funds managed by the Management Company may be obtained, on request, at the registered office of the Management Company.

The Management Company was incorporated as a “société anonyme” under the laws of the Grand Duchy of Luxembourg on 10 November 2004 and its articles have been amended for the last time on 16 September 2010 which was published in the Mémorial on 5 November 2010. The Management Company is approved as a management company and regulated by chapter 15 of the Law. The Management Company is a member of the Royal Bank of Scotland Group (“RBS Group”), which provides services to the UK collective investment schemes market, principally in the role of trustee to unit trusts.

As at 31 March 2014, the Fund consisted of the following Portfolios and share classes:

F&C Active Return, expressed in EUR, offering Class A Shares – Euro Class I Shares – Euro Class I Shares – GBP (Hedged)

F&C Asia Pacific Dynamic, expressed in EUR, offering Class A Shares – Euro Class I Shares – Euro Class X Shares – Euro

F&C Diversified Growth, expressed in EUR, offering Class A Shares – Euro Class A Shares – GBP (Hedged) Class I Shares – Euro Class X Shares – Euro Class X Shares – GBP (Hedged)

F&C Emerging Markets Bond, expressed in USD, offering Class A Shares – US$ Class C Shares – Euro (Hedged) Class I Shares – Euro (Hedged) Class I Shares – US$

F&C Euro Inflation Linked Bond, expressed in EUR, offering Class A Shares – Euro Class I Shares – Euro

F&C European Equity, expressed in EUR, offering Class A Shares – Euro

F&C European Growth and Income, expressed in EUR, offering Class A Shares – Euro Class A Shares – GBP

F&C European High Yield Bond, expressed in EUR, offering Class A Shares – Euro

F&C European SmallCap, expressed in EUR, offering Class A Shares – Euro Class I Shares – Euro Class I Acc Shares – Euro Class I Shares – GBP Class R Acc Shares – Euro


F&C Portfolios Fund Notes to the Financial Statements (continued) as at 31 March 2014

F&C Global Climate Opportunities, expressed in EUR, offering Class A Shares – Euro Class A Shares – GBP Class I Shares – Euro Class I Shares – GBP Class X Shares – GBP Hong Kong Class A Shares – US$

F&C Global Convertible Bond, expressed in EUR, offering Class A Shares – CHF (Hedged) Class A Acc Shares – CHF (Hedged) Class A Shares – Euro Class A Shares – Euro (Hedged) Class A Acc Shares – Euro (Hedged) Class A Shares – GBP Class A Acc Shares – US$ (Hedged) Class I Shares – CHF (Hedged) Class I Shares – Euro Class I Shares – Euro (Hedged) Class I Acc Shares – Euro (Hedged) Class P Shares - Euro (Hedged) Class R Shares – Euro Hong Kong Class A Shares – US$

F&C Global Emerging Markets Portfolio, expressed in USD, offering Class A Shares – US$ Class X Shares – GBP

F&C Global Smaller Cap Equity, expressed in USD, offering Class A Acc Shares – Euro Class A Acc Shares – US$ Class I Acc Shares – GBP Class I Shares – US$

F&C Japanese Equity, expressed in EUR, offering Class A Shares – Euro Class I Shares – Euro Class I Shares – GBP Class X Shares – GBP

F&C Latin American Equity, expressed in USD, offering Class I Shares – GBP

F&C Plus Fund, expressed in EUR, offering Class I Shares – Euro

F&C Russia Fund, expressed in USD, offering Class A Shares – US$

F&C Sharia Sustainable Opportunities, expressed in USD, offering Class A Shares – US$ Class X Shares – US$

F&C Stewardship International, expressed in EUR, offering Class A Shares – Euro Class A Shares – US$ Class I Shares – Euro Class R Shares – Euro

F&C US Smaller Companies, expressed in USD, offering Class A Shares – US$

110


The Fund continues to be run and valued on available market prices; based on the current liquidity conditions and the nature of the investments held some of the Portfolios would not achieve the full valuations if the entire portfolio had to be disposed of at short notice, including:

F&C Emerging Markets Bond F&C European High Yield BondF&C European SmallCap F&C Global Convertible Bond F&C US Smaller Companies

The Fund’s board of directors (the “Board”) has adopted the ALFI Code of Conduct, which sets out the principles of good governance, and considers that the Fund has been in compliance with it in all material respects throughout the financial period ended 31 March 2014.

2. SIGNIFICANT ACCOUNTING POLICIES

Presentation of financial statements The financial statements have been presented in accordance with the reporting requirements of the Luxembourg supervisory authorities and Luxembourg generally accepted accounting principles (“GAAP”).

Combined accounts The combined financial statements have been presented in Euro, the functional currency of the Fund. Financial Statements stated in currencies other than Euro have been combined at exchange rates ruling at 31 March 2014 (€ 1: $ 1.3782, € 1: £ 0.8267). For the purpose of the combined financial statements, the investments are valued on the basis of the closing prices as of 31 March 2014.

Investments As per the Prospectus and for the purpose of determining the Net Asset Value used for subscriptions and redemptions, the quoted investments and those traded in other regulated markets are valued on the basis of the last available price at 31 March 2014.

Securities which are not quoted or dealt in on an official or another regulated market, securities which are so quoted or dealt in but in which the last sale price is not available, and securities for which the last sale price is not representative of the fair market value, the value of such securities will be determined based on an agreed pricing basis and the reasonably foreseeable sales price determined prudently and in good faith, upon the advice of the Investment Manager, by the Directors.

Purchases and sales of investments are recognised on the trade date. Gains or losses on sales of investments are computed on the average cost basis and include transaction costs.

Investment income Dividends are credited to income, net of irrecoverable withholding tax, on the date upon which the relevant securities are declared “ex-dividend”. Interest income, net of irrecoverable withholding tax is accrued on a daily basis and includes the amortisation of premiums and accretion of discounts.

Translation of foreign currencies Assets and liabilities denominated in currencies other than the Portfolios’ reporting currencies have been translated at the rates of exchange ruling at 31 March 2014. Cost of investments, income and expenditure denominated in currencies other than the Portfolios’ reporting currency have been translated at the exchange rates ruling on the day of transaction. The exchange gain or loss arising from the translation of these items is taken into account in the determination of the results of operations.



Futures contracts on securities and indices Initial margin deposits are made upon entering into futures contracts and can be made either in cash or securities. During the period the futures contract is open, changes in the value of the contract are recognised as unrealised gains or losses by “marking-to-market” on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin payments are made or received, depending upon whether unrealised losses or gains are incurred. When the contract is closed, the Fund records a realised gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract.

Forward foreign exchange contracts The unrealised gain or loss on open forward foreign exchange contracts is calculated as the difference between the contracted rate and the rate to close out the contract. Realised profit or loss includes net gains or losses on forward foreign exchange contracts which have been settled or offset by other contracts with the same counterparty.

Options Purchased and Options Written For a purchased option an amount equal to the premium paid is recorded as an investment and is subsequently adjusted to the current market value of the option purchased. Premiums paid for the purchase of options which expire unexercised are treated on the expiration date as realised losses. If a purchased put option is exercised, the premium is subtracted from the proceeds of the sale of the underlying security, foreign currency or index in determining whether the relevant Portfolio has realised a gain or a loss. If a purchased call option is exercised, the premium increases the cost basis of the security, foreign currency or index purchased by the Portfolio.

For a written option an amount equal to the premium received by the relevant Portfolio is recorded as a liability and is subsequently adjusted to the current market value of the option written. Premiums received from written options which expire unexercised are treated by the relevant Portfolio on the expiration date as realised gains. If a written call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the relevant Portfolio has realised a gain or a loss. If a written put option is exercised, the premium reduces the cost basis of the security purchased by the relevant Portfolio.

Swaps

Total Return Swaps The Fund may enter into swap contracts in which the Fund and the counterparty agree to exchange payments (periodically throughout the life of the contract) where one or both parties pay the returns generated by a security, index commodities, or instruments on an agreed upon notional amount. The relevant indices include, but are not limited to, currencies, interest rates, prices and total return on interest rates indices, fixed income indices and stock indices.

Variance Swaps A variance swap is an over-the-counter financial derivative that allows to speculate on or hedge risks associated with the volatility of some underlying product, like an exchange rate, interest rate or stock index. One leg of the swap will pay an amount based upon the realised variance of the price changes of the underlying product. Conventionally, these price changes will be daily log returns, based upon the most commonly used closing price. The other leg of the swap will pay a fixed amount, which is the strike, quoted at the deal’s inception. Thus the net payoff to the counterparties will be the difference between these two and will be settled in cash at the expiration of the deal, though some cash payments will likely be made along the way by one or the other counterparties to maintain the agreed upon margin.

Correlation Swaps A correlation swap is an over-the-counter financial derivative that allows to speculate on or hedge risks associated with the observed average correlation of a collection of underlying products, where each product has periodically observable prices, as with a commodity, exchange rate, interest rate or stock index. The fixed leg of a correlation swap pays the notional times the agreed strike, while the floating leg pays the annualised realised correlation.

Dispersion Swaps A dispersion swap allows investors to buy or sell volatility on an index and sell or buy volatility on the stated component of that index.

112


Dividend Swaps Dividend swaps allow investors to take a view on the future cash dividend payouts attached to an individual share, stock index or bundle of shares without the need to own the underlying securities. Payments are made when the dividend swap matures and are calculated according to the dividends paid out.

Volatility Swaps Certain Portfolios may invest volatility swap agreements. Volatility swap agreements involve two parties agreeing to exchange cash flows based on the measured volatility of a specified underlying asset. One party agrees to exchange a “fixed rate” or volatility strike payment for the “floating rate” or unrealised volatility on the underlying asset with respect to the notional amount. At inception, the volatility strike is generally chosen such that the fair value of the swap is zero. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the unrealised volatility of the underlying asset and the volatility strike multiplied by the notional amount. As a receiver of the realised price volatility, the Portfolio would receive the payoff amount when the realised volatility of the underlying asset is greater than the volatility strike and would owe the payoff amount when the volatility is less than the strike. As a payer of the realised price volatility the Portfolio would owe the payoff amount when the realised volatility of the underlying asset is greater than the volatility strike and would receive the payoff amount when the volatility is less than the strike. This type of agreement is essentially a forward contract on the future realised volatility of the underlying asset.

Swap contracts are marked to market based on daily prices of underlying assets obtained from the third party pricing agents and verified against the value from the counterparty.

Unrealised gains or losses on swap contracts are recorded under “Unrealised gain/ Unrealised loss on swap contracts” in the Combined Statement of Net Assets. Realised gains or losses and change in unrealised gains or losses are recorded under “Net realised gains/ (losses) on swap contracts” and under “Net change in unrealised appreciation/(depreciation) on swap contracts” in the Combined Statement of Operations and Changes in Net Assets. The change in the value of the swap is reported as “Net change in unrealised appreciation/(depreciation) on swap contracts”, until termination of the contract when it is realised. Periodic interest payments to be paid or received are accrued on a daily basis and included in interest income or interest expense.

Contracts for Difference Contracts for Difference are valued based on the closing market price of the underlying security, less any financing charges attributable to each contract. Upon entering into Contracts for Difference, the Fund may be required to pledge to the broker an amount of cash and/or other assets equal to certain percentage of the contract amount (“initial margin”). Subsequently, payments known as “variation margin” are made or received by the Fund periodically, depending on fluctuations in the value of the underlying security. During the period the contracts are open, changes in the value of the contracts are recognised as unrealised gains and losses by marking to market at each valuation date in order to reflect the value of the underlying security. Realised gains or losses upon closure of the contract are equal to the difference between the value of the contract at the time it was opened including financial charges and the value at the time it was closed. Dividends received on underlying securities are recognised in income. Dividends attributable to open Contracts for Difference are also included in the value of unrealised gain/(loss) at the end of the period.

Cash and cash equivalents Cash and other liquid assets will be valued at their face value with interest accrued, where applicable. Interest is also accrued on bank overdrafts. All cash at bank balances are held either by State Street Bank Luxembourg S.A., on overnight deposit with a third party institution approved by the Board or directly with a sub-custodian.

Income from securities lending The Fund may lend its portfolio securities to specialised banks and credit institutions and other financial institutions of high standing and highly qualified registered brokers/dealers or through recognised clearing institutions such as Clearstream or Euroclear subject to complying with the provisions set forth in the CSSF Circular 08/356. The collateral received by the Fund in relation to these transactions would mainly consist of securities and other liquid assets authorised from time to time by the Luxembourg regulator. Any cash collateral will not be reinvested. Each counterparty will possess an industry standard credit rating that is acceptable to the Investment Manager with reference to the market conditions prevailing at the relevant time.



3. EQUALISATION The Fund follows the accounting practice known as “equalisation” by which a portion of the issue and redemption price representing, on a per share basis, accrued distributable investment income (excluding capital gains or losses), is credited or charged to distributable income. The amounts attributable to this income equalisation account are included in the proceeds from subscriptions to the Fund’s shares and in the Other income, or in the payment for the Fund’s shares redeemed and in the Sundry expenses, items of the Statement of Operations and changes in Net Assets.

4. INVESTMENT MANAGEMENT FEES The Fund entered into an agreement with RBS (Luxembourg) S.A. and F&C Management Limited (“FCM”) appointing FCM to act as investment manager to the Fund for a monthly fee calculated on the average of the net asset value of each Portfolio during the preceding month at the following rates:

Portfolio Investment Management Fee rates per annum

F&C Active Return - Class A Shares - Euro 1.50% F&C Active Return - Class I Shares - Euro 1.00% F&C Active Return - Class I Shares - GBP (Hedged) 1.00% F&C Asia Pacific Dynamic - Class A Shares - Euro 1.50% F&C Asia Pacific Dynamic - Class I Shares - Euro 0.75% F&C Diversified Growth - Class A Shares - Euro 1.50% F&C Diversified Growth - Class A Shares - GBP (Hedged) 1.50% F&C Diversified Growth - Class I Shares - Euro 0.75% F&C Emerging Markets Bond - Class A Shares - US$ 1.25% F&C Emerging Markets Bond - Class C Shares - Euro (Hedged) 1.25% F&C Emerging Markets Bond - Class I Shares - Euro (Hedged) 0.625% F&C Emerging Markets Bond - Class I Shares - US$ 0.625% F&C Euro Inflation Linked Bond - Class A Shares - Euro 0.75% F&C Euro Inflation Linked Bond - Class I Shares - Euro 0.30% F&C European Equity - Class A Shares - Euro 1.25% F&C European Growth and Income - Class A Shares - Euro 1.50% F&C European Growth and Income - Class A Shares - GBP 1.50% F&C European High Yield Bond - Class A Shares - Euro 1.00% F&C European SmallCap - Class A Shares - Euro 1.50% F&C European SmallCap - Class I Shares - Euro 0.75% F&C European SmallCap - Class I Acc Shares - Euro (1) 0.75% F&C European SmallCap - Class I Shares - GBP 0.75% F&C European SmallCap - Class R Acc Shares - Euro (2) 0.75% F&C Global Climate Opportunities - Class A Shares - Euro 1.50% F&C Global Climate Opportunities - Class A Shares - GBP 1.50% F&C Global Climate Opportunities - Class I Shares - Euro 1.00% F&C Global Climate Opportunities - Class I Shares - GBP 1.00% F&C Global Climate Opportunities - Hong Kong Class A Shares - US$ 1.50% F&C Global Convertible Bond - Class A Shares - CHF (Hedged) 1.00% F&C Global Convertible Bond - Class A Acc Shares - CHF (Hedged) 1.00% F&C Global Convertible Bond - Class A Shares - Euro 1.00% F&C Global Convertible Bond - Class A Shares - Euro (Hedged) 1.00% F&C Global Convertible Bond - Class A Acc Shares - Euro (Hedged) 1.00% F&C Global Convertible Bond - Class A Shares - GBP 1.00% F&C Global Convertible Bond - Class A Acc Shares - US$ (Hedged) 1.00% F&C Global Convertible Bond - Class I Shares - CHF (Hedged) 0.65% F&C Global Convertible Bond - Class I Shares - Euro 0.65% F&C Global Convertible Bond - Class I Shares - Euro (Hedged) 0.65% F&C Global Convertible Bond - Class I Acc Shares - Euro (Hedged) 0.65% F&C Global Convertible Bond - Class P Shares - Euro (Hedged) (3) 0.65% F&C Global Convertible Bond - Class R Shares - Euro (4) 0.65% F&C Global Convertible Bond - Hong Kong Class A Shares - US$ 1.00% F&C Global Emerging Markets Portfolio - Class A Shares - US$ 1.50%

114


Portfolio Investment Management

Fee rates per annum F&C Global Smaller Cap Equity - Class A Acc Shares - Euro 1.50% F&C Global Smaller Cap Equity - Class A Acc Shares - US$ 1.50% F&C Global Smaller Cap Equity - Class I Acc Shares - GBP 0.75% F&C Global Smaller Cap Equity - Class I Shares - US$ 0.75% F&C Japanese Equity - Class A Shares - Euro 1.50% F&C Japanese Equity - Class I Shares - Euro 0.75% F&C Japanese Equity - Class I Shares - GBP 0.75% F&C Latin American Equity - Class I Shares - GBP 0.75% F&C Russia Fund - Class A Shares - US$ 1.50% F&C Sharia Sustainable Opportunities - Class A Shares - US$ (5) 1.50% F&C Sharia Sustainable Opportunities - Class X Shares - US$ 1.00% F&C Stewardship International - Class A Shares - Euro 1.50% F&C Stewardship International - Class A Shares - US$ 1.50% F&C Stewardship International - Class I Shares - Euro 0.75% F&C Stewardship International - Class R Shares - Euro (4) 0.75% F&C US Smaller Companies - Class A Shares - US$ 1.50% (1) Launched on 16 January 2014 (2) Launched on 16 October 2013 (3) Launched on 8 January 2014 (4) Launched on 26 November 2013 (5) Launched on 20 January 2014

FCM is a company incorporated in England and regulated by the Financial Conduct Authority (FCA).

The Fund entered into an agreement with F&C Luxembourg S.A., RBS (Luxembourg) S.A. and F&C Portugal, Gestão de Patrimonios S.A., under which the latter is appointed as Investment Manager to F&C Plus Fund for a monthly fee calculated on the average of the net asset value of the Portfolio during the preceding month at the following rate:

F&C Plus Fund - Class I Shares - Euro 1.25%

Except for F&C Sharia Sustainable Opportunities - Class X Shares - US$ to which an Investment Management Fee of 1.00% applies, there are no Investment Management Fees payable on Class X shares.

5. CUSTODY AND ADMINISTRATION FEES State Street Bank Luxembourg S.A. is entitled to fees payable by the Fund, accruing daily and payable monthly in arrears, of up to 0.50% of the assets under custody plus a transaction charge with respect to its function as the Custodian of the Fund. In addition, for acting as Registrar, Transfer, Domiciliary, Administrative and Paying Agent to the Fund, State Street Bank Luxembourg S.A. is entitled to fees of up to 0.045% of the applicable Net Asset Value plus a transaction charge.

In addition, State Street Bank Luxembourg S.A. is entitled to pass on to the Fund fees charged by external price vendors where the cost of obtaining vendor prices is not contained within the standard State Street Bank Luxembourg S.A. fund accounting fixed percentage fee.

6. DIRECTORS’ FEES Each of the Directors of the Fund is entitled to remuneration for his services at the rate determined by the Fund in general meeting from time to time. Those Directors of the Fund who are employees of F&C Asset Management plc (parent of the Investment Managers), or any of its subsidiaries, waive their fees in carrying out their duties as Directors of the Fund. Directors’ fees are paid to the remaining directors and allocated to the Portfolios based on average net assets. During the period to 31 March 2014, the Chairman (which was Laurence Llewellyn until his retirement on 30 January 2014 and thereafter was Patrick Johns) was entitled to a pro rata fee of EUR 25,000 per annum. Directors Jacques Elvinger and John Karachalios (until his retirement on 30 January 2014) were each entitled to a fee of EUR 14,000 per annum.



7. MANAGEMENT COMPANY FEE The Fund pays to the Management Company an annual Management Company fee payable out of the assets of the Fund of up to a maximum of 0.0375% of the net asset value (on a sliding scale dependant on the size of the Portfolio), with no minimum fee.

8. FORMATION EXPENSES The formation expenses of the Fund and each Portfolio have been amortised over a five year period.

9. TAXATION Under current Luxembourg legislation, no Luxembourg tax on the Fund’s income or capital gains is presently payable. However, the Fund is subject to an annual “taxe d’abonnement” (subscription tax) of 0.05% per annum, based on its total net assets at the end of each calendar quarter, except for the institutional share classes denoted I for which the rate is 0.01% per annum.

Dividend and interest income received by the Fund may be subject to non-recoverable withholding taxes in countries of origin. Dividend and interest income are recognised in the Combined Statement of Operations and Changes in Net Assets on a net basis.

Gains realised upon disposal of securities held in certain countries by a Portfolio are subject to capital gains tax, payable prior to repartition of sale proceeds. The tax is computed on net realised gains.

As from 1 April 2007 investment vehicles listed in article 44, 1, d) of the Luxembourg VAT law (SICAVs, SICAFs and management companies of FCPs) should be registered as taxable persons for VAT purposes. As taxable persons for VAT purposes these investment vehicles must comply with the standard obligations foreseen in the Luxembourg VAT law such as VAT registration, VAT compliance and payment of the VAT due on services subject to reverse charge.

Investors should be aware that a new United Kingdom offshore funds regime was introduced applicable to United Kingdom investors into “offshore funds”. The Board has obtained reporting fund status approval from HM Revenue & Customs for certain classes of shares of the Fund, (except those listed below), for the accounting period commencing 1 October 2010 onwards or from the date of launch, for new share classes which were subsequently launched.

The following share classes were not included in the application:

F&C Active Return - Class A Shares - Euro

F&C Active Return - Class I Shares - Euro

F&C Diversified Growth - Class A Shares - Euro

F&C Diversified Growth - Class A Shares - GBP (Hedged)

F&C Diversified Growth - Class A Shares - US$ (Hedged)

F&C Diversified Growth - Class I Shares - Euro

F&C Diversified Growth - Class X Shares - Euro

F&C Diversified Growth - Class X Shares - GBP (Hedged)

F&C Global Convertible Bond - Class A Shares - CHF (Hedged)

F&C Global Convertible Bond - Class A Acc Shares - CHF (Hedged)

F&C Global Convertible Bond - Class I Shares - CHF (Hedged)

F&C Plus Fund - Class I Shares - Euro

The Board is in the process of applying for reporting fund status approval from HM Revenue &Customs for the share classes launched in the six months prior to 31 March 2014.

The directors intend to issue the semi - annual investor report on or around 31 March each year via the website www.fandc.com/reportingstatus.

116


10. RELATED PARTY TRANSACTIONS F&C Management Limited may be entitled to a placing and/or introductory fee of not more than 5% of the subscription value of the Fund shares. Out of this fee, stockbrokers or other approved introducing agents may be paid a proportion.

Patrick Johns (Chairman) is a non-executive adviser to F&C.

Jacques Elvinger, a Director of the Fund, is a partner in the Luxembourg law firm Elvinger, Hoss & Prussen. Mr. Elvinger has been an Avocat à la Cour, Grand Duchy of Luxembourg since 1984.

Ernst Hagen is Executive Director of F&C Netherlands BV.

João Santos is the Head of F&C Portugal, Gestão de Patrimónios, S.A., a subsidiary of F&C Asset Management plc, the parent company of the Investment Manager.

Hugh Moir is head Operations and IT, F&C Asset Management plc, the parent company of the Investment Manager.

Connected parties of RBS (Luxembourg) S.A. (the “Management Company”), F&C Management Limited (the “Investment Manager”) and the Directors of the F&C Portfolios Fund are those as defined in the Code on Unit Trusts and Mutual Funds issued by the Securities and Futures Commission in Hong Kong (the “UT Code”). To the best of the Management Company’s and the Directors’ knowledge, the Authorised Portfolios listed in note 16 did not enter into any transactions with Connected Parties during the period ending 31 March 2014.

The Fund has entered into an Agency Agreement for the lending of securities in return for a loan fee. During the period under review, State Street Bank GmbH, London Branch earned EUR 24,762 as securities lending agent. The Investment Manager earned EUR 16,508 for their monitoring and oversight of the securities lending programme.

At 31 March 2014, the F&C Diversified Growth portfolio had invested in the following fund that is managed by the same Investment Manager as the Fund:

F&C Portfolios Fund - F&C Emerging Markets Bond

Investment management fees for this portion of the net assets of this Portfolio is waived of EUR 84,697.

The Investment Manager may pass on to the Fund certain approved expenses incurred in the marketing of the Fund. The maximum chargeable during any accounting period is 0.025 per cent of the net asset value of the Fund as the respective Portfolio(s).

The Investment Manager will also charge a fee to the Fund to cover the costs incurred in the distribution of the Fund in the various jurisdictions in which it is registered. The amount to be charged during any accounting period is 0.05 per cent of the net asset value of the Fund or the respective Portfolio(s).

In accordance with the UT Code, no marketing expenses or distribution fee will be charged to the Hong Kong Share Classes of any portfolio. Any costs occurring in relation to the distribution of the Hong Kong Share Classes (if any) will be borne by the Investment Manager.

The Investment Manager is entitled to an annual service fee of 0.015 per cent of the equity and bond investments of the Fund for its Responsible Engagement Overlay services as described in the Prospectus. This service will not be charged to the Hong Kong Share Classes for any Portfolio.



11. STATEMENT OF CHANGES IN INVESTMENTS A list, specifying for each portfolio the total purchases and sales which occurred during the period under review, may be obtained, upon request, at the registered office of the Fund and the Fund’s Registrar/Administrative Agent, Custodian, or Paying Agent in the relevant jurisdiction.

12. PERFORMANCE FEE The Investment Manager may, in addition to the management fee, be entitled to a performance fee for F&C Euro Inflation Linked Bond, F&C Latin American Equity and F&C Russia Fund.

For F&C Euro Inflation Linked Bond (all share classes), a performance fee is payable annually on the last business day of the Calculation Period (as defined below) to the Investment Manager, in addition to the management fee, if the percentage change of the net asset value per share over the preceding 12-month period (after adding back any accrual for the performance fee) exceeds the percentage change of the Barclays Euro Inflation-Linked All Maturities (the "Benchmark"), over the same 12-month period. The performance fee is calculated in respect of each period of 12 months ending on 31 December in each year (a "Calculation Period"). Full details of the performance fee are contained in the F&C Euro Inflation Linked Bond Appendix of the Fund’s Prospectus.

For F&C Latin American Equity, a performance fee will be payable annually, if the percentage change of the net asset value per share over the previous 12-month period (after adding back any accrual for the performance fee) exceeds over the same 12-month period the MSCI EM (Emerging Markets) Latin America Index (the “Benchmark”) return. No performance fee will be payable if the percentage charge of the net asset value calculated at the end of such a 12-month period is equal or less than the percentage change of the Benchmark over the same 12-month period. The performance fee, if any, will amount to 20% of the outperformance of the Benchmark and will accrue daily.

For F&C Russia Fund a performance fee is payable annually to the Investment Manager, in addition to the management fee, if there is an increase in the net asset value per share at the end of each accounting year, compared with the net asset value per share at the beginning of the accounting year (the “Figure”), and is determined by reference to the amount (the “Excess”), if any, by which the net asset value per share at the end of the year exceeds the Figure. The Figure is calculated by in/decreasing the net asset value per share at the beginning of the accounting year by the percentage in/decrease in the MSCI Russia (10/40) Index in US Dollars or such successor index (the "Benchmark") over the same period.

The annual performance fee will equal 15 per cent of the Excess multiplied by the average number of shares in issue during the relevant period, provided that the annual performance fee may never exceed the increase in net asset value per share over the relevant period multiplied by the average number of shares in issue during the same period.

Portfolio Currency Performance Fee

F&C Latin American Equity $ 378,071

There was no performance fee charged on the remaining Portfolios during the period.

The total expense ratios (TER) with performance fees for each Portfolio are as follows:

Portfolio TER with performance fees F&C Latin American Equity - Class I Shares - GBP 2.23% Performance fees have been accrued in respect of the relevant Portfolios for the period under review.

The TER without performance fees are disclosed on pages 124 and 125 (Section Total Expense Ratio).

118


13. USE OF DEALING COMMISSION The Investment Manager is regulated by the Financial Conduct Authority (“FCA”) for the conduct of its business in the United Kingdom. The rules of the FCA restrict the use of dealing commission to execution and research services. Services may be paid for from commission but only if they are integral to either the execution of trades or to research. These are known as “permitted services”.

The Investment Manager executes transactions on behalf of the Fund with a number of selected brokers. In the normal course of business, the Investment Manager or its connected persons has entered or may enter into arrangements (“Commission Arrangements”) whereby the broker agrees to set aside a proportion of the commission earned on transactions and to use this to discharge the cost of certain permitted services related to the execution of transactions on behalf of the Fund and the provision of investment research to the Investment Manager.

The services received under such arrangements are directly relevant to and assist in the cost-effective provision of management services generally by the Investment Manager and are consistent with practices in the markets in which the Investment Manager does business.

14. SECURITIES LENDING The volume of the securities lending transactions will be kept at an appropriate level. The Fund will be entitled to request the return of the securities lent in a manner that enables it, at all times, to meet its redemption obligations. It will be ensured that securities lending transactions do not jeopardise the management of the Fund’s assets in accordance with the investment policy.

The income earned from the securities lending program is reflected net of fees in the Statement of Operations and Changes in Net Assets as disclosed in Note 2.

State Street Bank GmbH, London Branch as the securities lending agent receives a 15% fee for their services. The Investment Manager as the Fund’s securities lending co-ordinator receives an administration fee of 10% to cover operational costs. As a result, the Fund receives 75% of the gross revenues generated from securities lending. It is the Investment Manager’s policy to return all revenue to the Fund less direct and indirect operational costs.

The table below shows the value of securities on loan by Portfolio at 31 March 2014 and was € 44,087,058. The total value of collateral held was € 46,357,794 giving coverage of 105.15%.

Portfolio

Market Value of Securities on Loan

in EUR

Market Value of Collateral held

in EUR

Nature ofCollateral held

F&C Asia Pacific Dynamic 1,503,270 1,582,483 Government BondsF&C Diversified Growth 4,177,025 4,408,324 Government BondsF&C Emerging Markets Bond 9,287,352 9,673,820 Government BondsF&C European Equity 949,608 999,650 Government BondsF&C European Growth and Income 3,838,175 4,035,754 Government BondsF&C European SmallCap 22,830,327 24,074,173 Government BondsF&C Global Emerging Markets Portfolio 846,382 895,211 Government BondsF&C Japanese Equity 440,762 463,128 Government BondsF&C Stewardship International 214,157 225,251 Government Bonds

The counterparties who have provided the collaterals for the portfolios are: Barclays Capital Securities Ltd. (total exposure of EUR 1,271,948), Citigroup Global Markets Ltd. (total exposure of EUR 3,078,266), Credit Suisse Securities (Europe) Ltd. (total exposure of EUR 14,876,467), Deutsche Bank AG (total exposure of EUR 8,777,306), J.P. Morgan Securities Plc. (total exposure of EUR 6,833,355), Merrill Lynch International (total exposure of EUR 863,544), Morgan Stanley & Co. International Plc. (total exposure of EUR 228,295) and UBS AG (total exposure of EUR 10,428,612).



15. DIVIDENDS DISTRIBUTION

For all distributing classes of shares which have registered for United Kingdom Reporting Fund Status it is intended to distribute 100 per cent of reportable income (computed in accordance with the definition of reportable income under the United Kingdom Offshore Funds (Tax) Regulations 2009 (as amended)) which accrues to the Portfolio or distributing class, however it should be noted that this cannot be guaranteed. It may be that the Directors consider in certain cases that the amounts available for distribution are so minimal that a distribution is not commercially viable. Where share classes have not been registered for UK Reporting Fund Status, the Directors will determine an alternative basis for determining the level of any dividend.

The Board may decide to make dividend payments to Shareholders once a year or more frequently provided that no payment will be made as a result of which the total net assets of the Fund would become less than the minimum required by Luxembourg law.

During the period ended to 31 March 2014, dividends have been paid out to shareholders as follows:

Name Ex-Dividend

Date Payment Date Share class

CurrencyDividendper share

Amount ofDividendspaid out to

shareholders F&C Asia Pacific Dynamic - Class A Shares - Euro 30 December 2013 31 January 2014 EUR 0.0978 2,424F&C Asia Pacific Dynamic - Class I Shares - Euro 30 December 2013 31 January 2014 EUR 0.1630 38,483F&C Asia Pacific Dynamic - Class X Shares - Euro 30 December 2013 31 January 2014 EUR 0.2627 695,309F&C Emerging Markets Bond - Class A Shares - US$ 30 December 2013 31 January 2014 US$ 0.5547 834,402F&C Emerging Markets Bond - Class C Shares - Euro (Hedged) 30 December 2013 31 January 2014 EUR 3.7618 5,572,705F&C Emerging Markets Bond - Class I Shares - Euro (Hedged) 30 December 2013 31 January 2014 EUR 0.0026 3,038F&C Emerging Markets Bond - Class I Shares - US$ 30 December 2013 31 January 2014 US$ 0.2535 1,464,326F&C Euro Inflation Linked Bond - Class A Shares - Euro 30 December 2013 31 January 2014 EUR 0.0683 1,520F&C Euro Inflation Linked Bond - Class I Shares - Euro 30 December 2013 31 January 2014 EUR 0.1144 242,831F&C European Equity - Class A Shares - Euro 30 December 2013 31 January 2014 EUR 0.1471 477,922F&C European Growth and Income - Class A Shares - Euro 30 December 2013 31 January 2014 EUR 0.1502 72,292F&C European Growth and Income - Class A Shares - GBP 30 December 2013 31 January 2014 GBP 0.1580 489,802F&C European High Yield Bond - Class A Shares - Euro 30 December 2013 31 January 2014 EUR 0.5614 2,473,327F&C European SmallCap - Class A Shares - Euro 30 December 2013 31 January 2014 EUR 0.0549 454,403F&C European SmallCap - Class I Shares - Euro 30 December 2013 31 January 2014 EUR 0.0430 185,896F&C European SmallCap - Class I Shares - GBP 30 December 2013 31 January 2014 GBP 0.0318 57,670F&C Global Climate Opportunities - Class I Shares - Euro 30 December 2013 31 January 2014 EUR 0.1588 16,500F&C Global Climate Opportunities - Class I Shares - GBP 30 December 2013 31 January 2014 GBP 10.4265 8,216F&C Global Climate Opportunities - Class X Shares - GBP 30 December 2013 31 January 2014 GBP 0.6764 265,352F&C Global Convertible Bond - Class A Shares - CHF (Hedged) 30 December 2013 31 January 2014 CHF 0.1581 117,709F&C Global Convertible Bond - Class A Shares - Euro 30 December 2013 31 January 2014 EUR 0.2967 2,877,358F&C Global Convertible Bond - Class A Shares - Euro (Hedged) 30 December 2013 31 January 2014 EUR 0.2040 5,686,389F&C Global Convertible Bond - Class A Shares - GBP 30 December 2013 31 January 2014 GBP 0.2200 37,225F&C Global Convertible Bond - Class I Shares - CHF (Hedged) 30 December 2013 31 January 2014 CHF 0.0371 81,406F&C Global Convertible Bond - Class I Shares - Euro 30 December 2013 31 January 2014 EUR 0.1640 2,010,902F&C Global Convertible Bond - Class I Shares - Euro (Hedged) 30 December 2013 31 January 2014 EUR 0.3870 6,131,883F&C Global Convertible Bond - Hong Kong Class A Shares - US$ 30 December 2013 31 January 2014 US$ 0.2314 189,098F&C Global Emerging Markets Portfolio - Class A Shares - US$ 30 December 2013 31 January 2014 US$ 0.4123 149,039F&C Global Emerging Markets Portfolio - Class X Shares - GBP 30 December 2013 31 January 2014 GBP 0.1806 674,491F&C Japanese Equity - Class A Shares - Euro 30 December 2013 31 January 2014 EUR 0.0389 6,062F&C Japanese Equity - Class I Shares - Euro 30 December 2013 31 January 2014 EUR 0.0965 411,531F&C Japanese Equity - Class I Shares - GBP 30 December 2013 31 January 2014 GBP 0.1067 665,273F&C Japanese Equity - Class X Shares - GBP 30 December 2013 31 January 2014 GBP 0.1535 80,397F&C Latin American Equity - Class I Shares - GBP 30 December 2013 31 January 2014 GBP 1.3706 635,274F&C Russia Fund - Class A Shares - US$ 30 December 2013 31 January 2014 US$ 1.9914 168,158F&C Stewardship International - Class I Shares - Euro 30 December 2013 31 January 2014 EUR 0.0317 151,950

120


16. AUTHORISED PORTFOLIOS IN HONG KONG The following Portfolios are authorised for public distribution in Hong Kong:

F&C Asia Pacific Dynamic F&C Global Climate Opportunities F&C Global Convertible Bond F&C Global Emerging Markets Portfolio

Only these Portfolios are authorised by the Securities and Futures Commission in Hong Kong (the “SFC”). None of the other Portfolios referred to in this semi-annual report are authorised for sale in Hong Kong nor are they available to Hong Kong residents.

No soft commission arrangements were entered into by the Management Company or the Investment Manager with brokers during the period.

17. SWING PRICING Under certain circumstances (for example, large volumes of deals), investment and/or disinvestment costs may have an adverse effect on the shareholders' interests in a Portfolio. In order to prevent this effect, called "dilution", the Board may determine that a "swing pricing" methodology applies so as to allow for the net asset value per share to be adjusted upwards or downwards by dealing and other costs and fiscal charges which would be payable on the effective acquisition or disposal of assets in the relevant Portfolio if the net capital activity exceeds, as a consequence of the aggregate transactions in that Portfolio on a given Valuation Date (as defined in the Prospectus), a threshold (the "Threshold") set by the Board from time to time.

Description of the swing pricing methodology: If the net capital activity on a given Valuation Date leads to a net inflow of assets in excess of the Threshold in the relevant Portfolio, the net asset value used to process all subscriptions, redemptions or conversions in that Portfolio is adjusted upwards by the swing factors set by the Board from time to time.

If the net capital activity on a given Valuation Date leads to a net outflow of assets in excess of the Threshold in the relevant Portfolio, the net asset value used to process all subscriptions, redemptions or conversions in that Portfolio is adjusted downwards by the swing factors set by the Board from time to time.

In any case, the swing factors shall not exceed 2 per cent of the net asset value per share of the relevant Portfolio. Further, for the purpose of calculating the expenses of a Portfolio which are based on the net asset value of the relevant Portfolio (including any applicable performance fee), the Administrative Agent will continue to use the un-swung net asset value.

18. SUBSEQUENT EVENTS There were no other material events which occurred after the end of the financial period, which would have a bearing on the understanding of the financial statements.

19. PEA ELIGIBLE ASSETS The following Portfolios are eligible for inclusion in a personal equity plan (“plan d’épargne en actions” or “PEA”) in France:

F&C Portfolios Fund – European Growth and Income (99.56% of invested in eligible assets as at 31 March 2014)

F&C Portfolios Fund – European Small Cap (97.18% of invested in eligible assets as at 31 March 2014)

F&C Portfolios Fund – European Equity (99.38% of invested in eligible assets as at 31 March 2014)

In any circumstances these Portfolios invest more than 75% of their assets in PEA eligible assets*. At 31 March 2014, these Portfolios had the above mentioned percentage of their assets invested in PEA eligible assets.

* Eligible PEA Assets are: (i) shares or investment certificates in companies and Investment certificates in cooperative bodies, (ii) units in limited liability companies or equivalent companies (i.e. units not tradable and not listed) and Units in companies governed by the French Law No. 47-1775 of 10 September 1947 relating to cooperative bodies, and (iii) subscription rights or warrants for shares/units mentioned in (i) and (ii) above.



21. SOCIALLY RESPONSIBLE INVESTMENT F&C Management Limited is convinced that investors increasingly care about environmental, social and corporate governance (ESG) issues and that these may have a material impact on the companies in which we invest. Therefore the Fund has appointed F&C’s specialist Governance & Sustainable Investment team to engage with companies held in our portfolios in order to improve their ESG performance and safeguard investor value. The Responsible Engagement Overlay service, known as reo®, aims to encourage companies to enhance their business performance by adopting better corporate governance, social and environmental practices. reo® does not directly prevent the Fund from investing in specific companies, but over the long term is expected to lead to more sustainable companies and investment returns. reo® is about using the Investment Manager's ability, as manager of the Fund's equity and corporate bond portfolios, to encourage investee companies, through a constructive dialogue, to manage effectively their ESG risks and opportunities. In the Investment Manager's view, reo® may contribute towards business success and therefore increase the value of the investee companies and consequently the value of the Fund's investments. More information on specific companies engaged via the reo® service within each portfolio is available in the semi-annual engagement activity report on our website at:

www.fandc.com/PortfoliosFund/semiannualengagementreport.

22. APPROVAL OF THE FINANCIAL STATEMENTS The Board approved the financial statements on 16 May 2014.

122

F&C Portfolios Fund Portfolio Turnover Ratio

The Portfolio Turnover Ratio is calculated as follows:

1

PTR= (Total purchases + Total sales) - (Total subscriptions + Total redemptions)

x 100 Average net assets of the Portfolio

1

The rate of rotation is calculated on the basis of the past twelve months.

Portfolio Turnover RatioTotal Net Assets, as of 31 March 2014

Portfolio Currency average during the period (annualised) % F&C Active Return € 84,570,422 39.46F&C Asia Pacific Dynamic € 34,124,160 46.67F&C Diversified Growth € 371,414,977 57.70F&C Emerging Markets Bond $ 292,866,472 81.97F&C Euro Inflation Linked Bond € 20,908,003 24.07F&C European Equity € 51,411,912 11.10F&C European Growth and Income € 59,834,705 10.72F&C European High Yield Bond € 52,406,296 27.64F&C European SmallCap € 301,699,710 58.27F&C Global Climate Opportunities € 40,113,630 181.20F&C Global Convertible Bond € 1,097,940,090 15.41F&C Global Emerging Markets Portfolio $ 69,924,452 40.23F&C Global Smaller Cap Equity $ 42,973,818 4.35F&C Japanese Equity € 147,225,786 18.51F&C Latin American Equity $ 64,982,412 38.77F&C Plus Fund € 138,961,638 37.23F&C Russia Fund $ 4,607,597 50.42F&C Sharia Sustainable Opportunities $ 61,470,195 20.28F&C Stewardship International € 118,527,109 32.58F&C US Smaller Companies $ 32,602,272 32.92


F&C Portfolios Fund Total Expense Ratio

The following formula has been used to calculate the Total Expense Ratio: 1 1

TER = Total operating expenses in share class currency x 100 Average Portfolio assets in share class currency

Total Expense Ratioas of 31 March 2014

Portfolio Currency (annualised) % * F&C Active Return - Class A Shares - Euro € 1.76%F&C Active Return - Class I Shares - Euro € 1.22%F&C Active Return - Class I Shares - GBP (Hedged) £ 1.24%F&C Asia Pacific Dynamic - Class A Shares - Euro € 1.96%F&C Asia Pacific Dynamic - Class I Shares - Euro € 1.18%F&C Asia Pacific Dynamic - Class X Shares - Euro € 0.43%F&C Diversified Growth - Class A Shares - Euro € 1.61%F&C Diversified Growth - Class A Shares - GBP (Hedged) £ 1.65%F&C Diversified Growth - Class A Shares - US$ (Hedged) (1) $ 1.84%F&C Diversified Growth - Class I Shares - Euro € 0.83%F&C Diversified Growth - Class X Shares - Euro € 0.08%F&C Diversified Growth - Class X Shares - GBP (Hedged) £ 0.11%F&C Emerging Markets Bond - Class A Shares - US$ $ 1.46%F&C Emerging Markets Bond - Class C Shares - Euro (Hedged) € 1.47%F&C Emerging Markets Bond - Class I Shares - Euro (Hedged) € 0.89%F&C Emerging Markets Bond - Class I Shares - US$ $ 0.81%F&C Euro Inflation Linked Bond - Class A Shares - Euro € 1.10%F&C Euro Inflation Linked Bond - Class I Shares - Euro € 0.61%F&C European Equity - Class A Shares - Euro € 1.56%F&C European Growth and Income - Class A Shares - Euro € 1.83%F&C European Growth and Income - Class A Shares - GBP £ 1.82%F&C European High Yield Bond - Class A Shares - Euro € 1.30%F&C European SmallCap - Class A Shares - Euro € 1.72%F&C European SmallCap - Class I Shares - Euro € 0.92%F&C European SmallCap - Class I Acc Shares - Euro (2) € 0.91%F&C European SmallCap - Class I Shares - GBP £ 0.93%F&C European SmallCap - Class R Acc Shares - Euro (3) € 0.95%F&C Global Climate Opportunities - Class A Shares - Euro € 1.95%F&C Global Climate Opportunities - Class A Shares - GBP £ 1.93%F&C Global Climate Opportunities - Class I Shares - Euro € 1.30%F&C Global Climate Opportunities - Class I Shares - GBP £ 1.39%F&C Global Climate Opportunities - Class X Shares - GBP £ 0.39%F&C Global Climate Opportunities - Hong Kong Class A Shares - US$ $ 1.76%F&C Global Convertible Bond - Class A Shares - CHF (Hedged) CHF 1.27%F&C Global Convertible Bond - Class A Acc Shares - CHF (Hedged) CHF 1.28%F&C Global Convertible Bond - Class A Shares - Euro € 1.21%F&C Global Convertible Bond - Class A Shares - Euro (Hedged) € 1.22%F&C Global Convertible Bond - Class A Acc Shares - Euro (Hedged) € 1.21%F&C Global Convertible Bond - Class A Shares - GBP £ 1.22%F&C Global Convertible Bond - Class A Acc Shares - US$ (Hedged) $ 1.23%F&C Global Convertible Bond - Class I Shares - CHF (Hedged) CHF 0.86%F&C Global Convertible Bond - Class I Shares - Euro € 0.84%F&C Global Convertible Bond - Class I Shares - Euro (Hedged) € 0.82%F&C Global Convertible Bond - Class I Acc Shares - Euro (Hedged) € 0.82%F&C Global Convertible Bond - Class P Shares - Euro (Hedged) (4) € 0.87%F&C Global Convertible Bond - Class R Shares - Euro (5) € 0.93%F&C Global Convertible Bond - Hong Kong Class A Shares - US$ $ 1.14%F&C Global Emerging Markets Portfolio - Class A Shares - US$ $ 1.80%F&C Global Emerging Markets Portfolio - Class X Shares - GBP £ 0.54%F&C Global Smaller Cap Equity - Class A Acc Shares - Euro € 2.00%F&C Global Smaller Cap Equity - Class A Acc Shares - US$ $ 2.00%

124

F&C Portfolios Fund Total Expense Ratio (continued)

Total Expense Ratio

as of 31 March 2014Portfolio Currency (annualised) % * F&C Global Smaller Cap Equity - Class I Acc Shares - GBP £ 1.12%F&C Global Smaller Cap Equity - Class I Shares - US$ $ 1.23%F&C Japanese Equity - Class A Shares - Euro € 1.75%F&C Japanese Equity - Class I Shares - Euro € 0.96%F&C Japanese Equity - Class I Shares - GBP £ 0.95%F&C Japanese Equity - Class X Shares - GBP £ 0.21%F&C Latin American Equity - Class I Shares - GBP £ 1.06%F&C Plus Fund - Class I Shares - Euro € 1.27%F&C Russia Fund - Class A Shares - US$ $ 2.35%F&C Sharia Sustainable Opportunities - Class A Shares - US$ (6) $ 1.83%F&C Sharia Sustainable Opportunities - Class X Shares - US$ $ 1.27%F&C Stewardship International - Class A Shares - Euro € 1.72%F&C Stewardship International - Class A Shares - US$ $ 1.75%F&C Stewardship International - Class I Shares - Euro € 0.96%F&C Stewardship International - Class R Shares - Euro (5) € 1.07%F&C US Smaller Companies - Class A Shares - US$ $ 1.91% (1) Fully redeemed and closed from 8 November 2013 (2) Launched on 16 January 2014 (3) Launched on 16 October 2013 (4) Launched on 8 January 2014 (5) Launched on 26 November 2013 (6) Launched on 20 January 2014 *The Performance fees are not included in the calculation of the TERs disclosed. For share classes that opened during the year, the operating expenses incurred up until the year end have been annualised to provide a more comparable estimate of the TER for the share class. Additional Information: The list of purchases and sales is available from the Swiss representative and paying agent. The Total Expense Ratio and Portfolio Turnover Ratio were calculated in accordance with Swiss Fund Association’s guidelines 16 May 2008. In respect to its distribution in Switzerland retrocessions can be paid by the Investment Manager out of its management fee to the following Qualified Investors who, from a commercial perspective, are holding shares of the Fund for third parties: − life insurance companies − pension funds and other retirement provision institutions − investment foundations − Swiss fund management companies − foreign fund management companies and providers − investment companies. In connection with distribution in Switzerland, the Investment Manager may pay out of its management fee distribution remunerations to the following distributors and sales partners: − distributors subject to the duty to obtain authorisation pursuant to Art. 19.1 CISA − distributors exempt from the duty to obtain authorisation pursuant to Art. 19.4 CISA and Art. 8 CISO − sales partners who place the units of collective investment schemes exclusively with institutional investors with professional

treasury facilities − sales partners who place the units of collective investment schemes exclusively on the basis of a written asset management

mandate.


F&C Portfolios Fund Performance Data The performance data is calculated based on the movement of the net asset value per share during the period. Performance figures shown in the Investment Managers reports are based on total return figures, inclusive of distributions, and may differ from the below.

Portfolio

31 March2014

%

30 September2013

%

30 September2012

%

F&C Active Return - Class A Shares - Euro 0.19 1.42 (1.20)F&C Active Return - Class I Shares - Euro 0.47 1.98 (0.68)F&C Active Return - Class I Shares - GBP (Hedged) 0.58 2.44 (0.33)F&C Asia Pacific Dynamic - Class A Shares - Euro 1.04 (3.66) 19.98F&C Asia Pacific Dynamic - Class I Shares - Euro 0.87 (3.94) 23.47F&C Asia Pacific Dynamic - Class X Shares - Euro 0.42 (3.90) 22.37F&C Diversified Growth - Class A Shares - Euro 1.78 0.10 7.65F&C Diversified Growth - Class A Shares - GBP (Hedged) 1.79 0.47 7.42F&C Diversified Growth - Class A Shares - US$ (Hedged) (1) N/A 0.35 7.49F&C Diversified Growth - Class I Shares - Euro 2.19 0.84 8.46F&C Diversified Growth - Class X Shares - Euro 2.57 1.60 9.27F&C Diversified Growth - Class X Shares - GBP (Hedged) 2.58 2.08 9.06F&C Emerging Markets Bond - Class A Shares - US$ (0.21) (9.32) 15.74F&C Emerging Markets Bond - Class B Shares - US$ (2) N/A N/A 13.05F&C Emerging Markets Bond - Class C Shares - Euro (Hedged) 0.11 (9.38) 14.98F&C Emerging Markets Bond - Class I Shares - Euro (Hedged) (3) 3.96 (1.40) N/AF&C Emerging Markets Bond - Class I Shares - US$ (4) 1.30 (7.40) N/AF&C Enhanced Alpha UK Equity - Class I Shares - GBP (5) N/A N/A 13.82F&C Enhanced Alpha UK Equity - Class X Shares - GBP (5) N/A N/A 14.58F&C Euro Inflation Linked Bond - Class A Shares - Euro 0.11 (5.77) (1.52)F&C Euro Inflation Linked Bond - Class I Shares - Euro (0.21) (4.88) 1.13F&C European Equity - Class A Shares - Euro 7.04 21.92 28.34F&C European Growth and Income - Class A Shares - Euro 8.60 22.26 25.80F&C European Growth and Income - Class A Shares - GBP 7.26 28.21 16.74F&C European High Yield Bond - Class A Shares - Euro 2.81 3.43 10.44F&C European SmallCap - Class A Shares - Euro 13.80 29.75 29.85F&C European SmallCap - Class I Shares - Euro (6) 14.15 11.70 N/AF&C European SmallCap - Class I Acc Shares - Euro (7) 3.60 N/A N/AF&C European SmallCap - Class I Shares - GBP (8) 12.90 9.30 N/AF&C European SmallCap - Class R Acc Shares - Euro (9) 12.30 N/A N/AF&C Global Climate Opportunities - Class A Shares - Euro 3.74 11.78 22.79F&C Global Climate Opportunities - Class A Shares - GBP 2.65 17.29 13.59F&C Global Climate Opportunities - Class I Shares - Euro 3.77 12.04 22.83F&C Global Climate Opportunities - Class I Shares - GBP (13.45) 17.55 13.62F&C Global Climate Opportunities - Class X Shares - GBP 2.35 17.59 13.55F&C Global Climate Opportunities - Hong Kong Class A Shares - US$ 5.77 17.77 17.74F&C Global Convertible Bond - Class A Shares - CHF (Hedged) (10) 4.45 12.40 N/AF&C Global Convertible Bond - Class A Acc Shares - CHF (Hedged) (11) 5.83 11.40 N/AF&C Global Convertible Bond - Class A Shares - Euro 3.10 5.86 15.21F&C Global Convertible Bond - Class A Shares - Euro (Hedged) 4.69 10.21 11.62F&C Global Convertible Bond - Class A Acc Shares - Euro (Hedged) (11) 5.94 11.10 N/AF&C Global Convertible Bond - Class A Shares - GBP 2.15 11.88 6.50F&C Global Convertible Bond - Class A Acc Shares - US$ (Hedged) (11) 5.92 11.40 N/AF&C Global Convertible Bond - Class I Shares - CHF (Hedged) (12) 5.68 5.60 N/AF&C Global Convertible Bond - Class I Shares - Euro 3.64 6.29 15.23F&C Global Convertible Bond - Class I Shares - Euro (Hedged) 3.77 10.70 11.98F&C Global Convertible Bond - Class I Acc Shares - Euro (Hedged) 6.24 13.01 12.01F&C Global Convertible Bond - Class P Shares - Euro (Hedged) (13) 2.81 N/A N/AF&C Global Convertible Bond - Class R Shares - Euro (14) 2.90 N/A N/AF&C Global Convertible Bond - Hong Kong Class A Shares - US$ 5.11 11.30 10.47F&C Global Emerging Markets Portfolio - Class A Shares - US$ 0.87 (4.36) 14.81F&C Global Emerging Markets Portfolio - Class X Shares - GBP (1.46) (4.50) 10.93F&C Global Smaller Cap Equity - Class A Acc Shares - Euro (15) 10.61 5.60 N/AF&C Global Smaller Cap Equity - Class A Acc Shares - US$ (15) 12.74 9.90 N/AF&C Global Smaller Cap Equity - Class I Acc Shares - GBP (15) 9.79 3.20 N/AF&C Global Smaller Cap Equity - Class I Shares - US$ (15) 13.35 10.10 N/A

126

F&C Portfolios Fund Performance Data (continued)

Portfolio

31 March2014

%

30 September 2013

%

30 September2012

%

F&C Japanese Equity - Class A Shares - Euro (5.24) 16.49 6.32F&C Japanese Equity - Class I Shares - Euro (5.49) 16.40 5.96F&C Japanese Equity - Class I Shares - GBP (6.64) 22.21 (1.89)F&C Japanese Equity - Class X Shares - GBP (6.74) 22.70 (2.31)F&C Latin American Equity - Class I Shares - GBP (3.61) (9.06) 8.03F&C Plus Fund - Class I Shares - Euro 6.87 8.09 16.47F&C Russia Fund - Class A Shares - US$ (17.44) 8.10 9.77F&C Sharia Sustainable Opportunities - Class A Shares - US$ (16) 0.90 N/A N/AF&C Sharia Sustainable Opportunities - Class X Shares - US$ 7.06 20.02 21.38F&C Stewardship International - Class A Shares - Euro 3.98 14.37 23.19F&C Stewardship International - Class A Shares - US$ 6.03 20.48 18.18F&C Stewardship International - Class I Shares - Euro 4.11 14.62 23.52F&C Stewardship International - Class R Shares - Euro (14) (0.30) N/A N/AF&C US Smaller Companies - Class A Shares - US$ 9.30 29.25 27.67 (1) Fully redeemed and closed from 8 November 2013 (2) Liquidated as from 1 October 2012 and final NAV issued on 1 October 2012 (3) Launched on 25 September 2013 (4) Launched on 1 February 2013 (5) Fully redeemed and closed from 25 September 2013 (6) Launched on 11 April 2013 (7) Launched on 16 January 2014 (8) Launched on 3 May 2013 (9) Launched on 16 October 2013 (10) Launched on 25 October 2012 (11) Launched on 3 December 2012 (12) Launched on 12 April 2013 (13) Launched on 8 January 2014 (14) Launched on 26 November 2013 (15) Launched on 28 June 2013 (16) Launched on 20 January 2014 Past performance is no indication of current or future performance. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares.


F&C Portfolios Fund Administration

Registered Office

49, Avenue J.F. Kennedy

L-1855 Luxembourg

Grand Duchy of Luxembourg

Management Company

RBS (Luxembourg) S.A.

33, Rue de Gasperich

L-5826 Hesperange


Investment Manager

F&C Management Limited

Exchange House, Primrose Street

London EC2A 2NY,

United Kingdom

Authorised and Regulated in the United Kingdom by the Financial Conduct Authority (FCA)

Custodian, Registrar, Transfer, Domiciliary, Paying and Administrative Agent in Luxembourg

State Street Bank Luxembourg S.A.

49, Avenue J.F. Kennedy

L-1855 Luxembourg


Auditor

PricewaterhouseCoopers, Société coopérative

400, Route d’Esch

L-1471 Luxembourg


Legal Advisers to the Fund

Elvinger, Hoss & Prussen

2, Place Winston Churchill

L-1340 Luxembourg


Investment Manager to F&C Plus Fund

F&C Portugal, Gestão de Patrimónios, S.A.

Rua de Campolide, 372 - 1°

1070-040 Lisbon

Portugal

128

F&C Portfolios Fund Administration (continued)

INFORMATION AND PAYING AGENT IN GERMANY

CACEIS Bank Deutschland GmbH

Lilienthalallee 34-36

D-80939 Munich

Germany

INFORMATION AND PAYING AGENT IN FRANCE

CACEIS Bank

1/3, Place Valhubert

F-75013 Paris

France

INFORMATION AND FACILITIES AGENT IN IRELAND

Bridge Consulting Limited

33 Sir John Rogerson’s Quay

Dublin 2

Ireland

INFORMATION AND PAYING AGENT IN AUSTRIA

UniCredit Bank Austria AG

Schottengasse 6-8

A-1010 Vienna

Austria

Tel.: +431 33147 5613

Fax: +431 33147 6933

REPRESENTATIVE IN SWITZERLAND

Carnegie Fund Services S.A.

11, Rue du Général-Dufour,

CH-1204 Genève

Switzerland

Tel: +41 22 705 11 77

Fax: +41 22 705 11 79

REPRESENTATIVE AGENT IN SPAIN

Allfunds Bank S.A.

C/Estafeta nº6 (La Moraleja)

Complejo Plaza de la Fuete - Edificio 3

E-28109 Alcobendas - Madrid

Spain


F&C Portfolios Fund Administration (continued)

PAYING AGENT IN SWITZERLAND

Banque Cantonale de Genève

17, Quai de l’Ile,

CH-1204 Genève

Switzerland

Tel: +41 22 809 35 43

Fax: +41 22 809 35 63

PAYING AGENTS IN ITALY

SGSS S.p.A.

Maciachini Center - MAC 2

Via Benigno Crespi, 19/A

I-20159 Milano

Italy

Allfunds Bank S.A., Milan Branch

Via Santa Margherita, 7

I-20121 Milano

Italy

REPRESENTATIVE IN HONG KONG

State Street Trust (HK) Limited

68/F, Two International Finance centre

8 Finance Street

Central

Hong Kong

INFORMATION AND PAYING AGENT IN BELGIUM

BNP Paribas Securities Services S.C.A.

2, Boulevard Louis Schmidt,

1040 Brussels

Belgium

130

F&C Portfolios Fund, 49, Avenue J.F. Kennedy, L-1855 Luxembourg Phone 00 352 46 40 10 1 Fax 00 352 46 36 31

f&c portfolios fund

Documents