kleinwort benson elite pcc limited › fileadmin › user... · kleinwort benson elite pcc limited...

Kleinwort Benson Elite PCC LimitedInterim Report and Unaudited Condensed Financial StatementsFor the period 1 August 2016 to 31 January 2017Guernsey Registered Company Number: 42365

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

2

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

3

Contents Investor Information 4

Alternative Investment Fund Manager’s Report 8

Directors’ Report 14

Statement of Directors’ Responsibilities 16

Comparative Table 17

Condensed Interim Statement of Total Return 18

Condensed Interim Statement of Change in Net Assets Attributable to Shareholders 18

Condensed Interim Balance Sheet 22

Notes to the Condensed Interim Financial Statements 26

Cell Portfolio of Investments 35

Cell Summary of Material Portfolio Changes 44

Kleinwort Benson Elite PCC LimitedInterim Report and Unaudited Condensed Financial StatementsFor the period 1 August 2016 to 31 January 2017Guernsey Registered Company Number: 42365

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

4

Investor Information

General informationThe Company was incorporated as a company with limited liability in Guernsey on 30 September 2004 and is authorised by the Guernsey Financial Services Commission (“GFSC”) as a Class B Scheme under The Protection of Investors (Bailiwick of Guernsey) Law, 1987. The Company is an open-ended investment Protected Cell Company governed by the provisions of The Companies (Guernsey) Law, 2008 (“The Law”). The assets of each cell are held in a segregated portfolio. Persons investing and dealing in a cell of the Company only have recourse to the assets attributable to that particular Cell. They have no recourse to the assets of any other Cell, except as provided under the Law against any non-cellular assets of the Company. Therefore under Guernsey Law the assets of any cell are not exposed to the liabilities within the umbrella structure.

Principal activity and investment objectiveThe investment philosophy of the Company is to achieve long-term capital growth, income or total return (depending on the specific objectives of each Cell).

The Company currently has eleven active Cells which include multiple share classes. Thirty three share classes within ten of the Cells, are listed on The International Stock Exchange (“TISE”), formerly known as the Channel Islands Securities Exchange (“CISE”).

The functional and reporting currency of the Company and of each Cell is Pounds Sterling except for Kleinwort Benson Elite USD Currency Fund which is United States Dollar as well as Kleinwort Benson Elite EUR Currency Fund and Kleinwort Benson Elite EUR Fixed Income Fund which are in Euro.

The CellsKleinwort Benson Elite Sterling Fixed Income Fund

This Fund was launched on 28 April 2006 and was formerly known as Kleinwort Benson Elite Sterling Income Fund. The investment objective of the Cell is primarily to produce returns by way of income with the possibility of capital growth over the medium to long term with low volatility through a portfolio of fixed income and cash investments.

The Cell will seek to achieve its objective through a diversified portfolio of predominantly sterling denominated securities, bonds, notes or negotiable instruments issued or guaranteed by sovereign or corporate borrowers within the member states of the Organisation for Economic Co-operation and Development (OECD).

The Investment Manager may also choose to hold collective investment schemes, cash, money market instruments and other instruments (such as, but not limited to, warrants, convertible preference shares and structured products)

as the Investment Manager may consider appropriate in achieving the overall objective of the Cell. The Cell may use derivatives for investment purposes as well as for efficient portfolio management.

Kleinwort Benson Elite Multi Asset Balanced FundThis Fund was launched on 3 October 2005, the investment objective of the Cell is to achieve long term equity returns with a moderate level of risk through a well diversified portfolio across asset classes.

The Cell will seek to achieve its objective by investing directly in a range of equities, bonds, money market instruments, derivative instruments, forward transactions, collective investment schemes and other instruments as the Investment Manager may consider appropriate in achieving the overall objective of the Cell. The Cell may use derivatives for investment purposes as well as for efficient portfolio management.

Kleinwort Benson Elite Multi Asset Conservative FundThis Fund was launched on 3 August 2005, the investment objective of the Cell is to achieve consistent returns with a low level of risk through a well diversified portfolio across asset classes.


Kleinwort Benson Elite Multi Asset Growth FundThis Fund was launched on 11 September 2007 the investment objective of the Cell is to outperform equity returns with equity-like risk through a well diversified portfolio across asset classes.


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

5

Kleinwort Benson Elite International Equity FundThis Fund was launched on 12 October 2012, the investment objective of the Cell is to maximise capital growth over medium to long term. The Cell will seek to achieve its objective through a diversified portfolio of predominantly international equity based securities.

The Investment Manager may also choose to hold collective investment schemes, cash, money market instruments and other instruments (such as, but not limited to, warrants, convertible preference shares and structured products) as the Investment Manager may consider appropriate in achieving the overall objective of the Cell. The Cell may use derivatives for investment purposes as well as for efficient portfolio management.

Kleinwort Benson Elite Sterling Currency FundThe Fund was launched on 12 October 2012 and has been established as a feeder fund which invests exclusively in the Sterling A Shares of the HSBC Sterling Liquidity Fund, a sub-fund of the HSBC Global Liquidity Fund plc (‘Underlying Fund’).

The investment objective of the Underlying Fund is to provide investors with security of capital and daily liquidity together with an investment return which is comparable to normal Pounds Sterling denominated money market interest rates.

Kleinwort Benson Elite EUR Currency FundThe Fund was launched on 12 October 2012 and has been established as a feeder fund which invests exclusively in the Euro A Shares of the HSBC Euro Liquidity Fund, a sub-fund of the HSBC Global Liquidity Fund plc (‘Underlying Fund’).

The investment objective of the Underlying Fund is to provide investors with security of capital and daily liquidity together with an investment return which is comparable to normal Euro denominated money market interest rates.

Kleinwort Benson Elite US Dollar Currency FundThe Fund was launched on 12 October 2012 and has been established as a feeder fund which invests exclusively in the US Dollar A Shares of the HSBC US Dollar Liquidity Fund, a sub-fund of the HSBC Global Liquidity Fund plc (‘Underlying Fund’).

The investment objective of the Underlying Fund is to provide investors with security of capital and daily liquidity together with an investment return which is comparable to normal US Dollar denominated money market interest rates.

Kleinwort Benson Elite International Bond FundThis Fund was launched on 12 October 2012, the investment objective of the Cell is to maximise total returns over the medium to long term whilst generating income through a portfolio of fixed income and cash investments. The Cell will seek to achieve its objective through a diversified portfolio of predominantly international bonds and Government securities.

The Investment Manager may also choose to hold collective investment schemes, cash, money market instruments and other instruments (such as, but not limited to, warrants, convertible preference shares and structured products) as the Investment Manager may consider appropriate in achieving the overall objective of the Cell. The Cell may use derivatives for investment purposes as well as for efficient portfolio management.

Kleinwort Benson Elite EUR Fixed Income FundThis Fund was launched on 12 October 2012, the investment objective of the Cell is primarily to produce returns by way of income with the possibility of capital growth over the medium to long term with low volatility through a portfolio of fixed income and cash investments.

The Cell will seek to achieve its objective through a diversified portfolio of predominantly Euro denominated securities, bonds, notes or negotiable instruments issued or guaranteed by sovereign or corporate borrowers within the member states of the Organisation for Economic Co-operation and Development (OECD). The Investment Manager may also choose to hold collective investment schemes, cash, money market instruments and other instruments (such as, but not limited to, warrants, convertible preference shares and structured products) as the Investment Manager may consider appropriate in achieving the overall objective of the Cell. The Cell may use derivatives for investment purposes as well as for efficient portfolio management.

Kleinwort Benson Elite Trojan FundThe Participating Share share class of this Fund holds illiquid investment assets in EEA Life Settlements Fund. If the cash flow is sufficient the Directors will consider making further distributions to shareholders.

Investor Information (continued)

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

6

Cells and Class NamesKleinwort Benson Elite Sterling Fixed Income Fund:• A Income Reporting Shares*• B Income Reporting Shares*

Kleinwort Benson Elite Multi Asset Balanced Fund:• A GBP Income Reporting Shares*• A GBP Reinvest Reporting Shares*• B GBP Income Reporting Shares*• A USD Accumulating Reporting Shares*• A USD Accumulating Non-reporting Shares*• A EUR Accumulating Reporting Shares*• B USD Accumulating Non-reporting Shares*• B EUR Accumulating Non-reporting Shares*• B GBP Accumulating Non-reporting Shares*

Kleinwort Benson Elite Multi Asset Conservative Fund:• A GBP Income Reporting Shares*• B GBP Income Reporting Shares*• A EUR Accumulating Reporting Shares*• B USD Accumulating Non-reporting Shares*• B EUR Accumulating Non-reporting Shares*• B GBP Accumulating Non-reporting Shares*

Kleinwort Benson Elite Multi Asset Growth Fund:• A GBP Income Reporting Shares*• A GBP Reinvest Reporting Shares*• B GBP Income Reporting Shares*• A USD Accumulating Reporting Shares*• B USD Accumulating Non-reporting Shares*• B EUR Accumulating Non-reporting Shares*• B GBP Accumulating Non-reporting Shares*

Kleinwort Benson Elite International Equity Fund• A GBP Income Reporting Shares*• A GBP Reinvest Reporting Shares*• B GBP Accumulating Non-reporting Shares*

Kleinwort Benson Elite GBP Currency Fund• B GBP Accumulating Non-reporting Shares*

Kleinwort Benson Elite EUR Currency Fund• B EUR Accumulating Non-reporting Shares*

Kleinwort Benson Elite USD Currency Fund• B USD Accumulating Non-reporting Shares*

Kleinwort Benson Elite International Bond Fund• B GBP Accumulating Non-reporting Shares*

Kleinwort Benson Elite EUR Fixed Income Fund• B EUR Income Reporting Shares*

Kleinwort Benson Elite Trojan Fund• Participating Shares (suspended)

*These share classes are listed on the TISE (formerly known as “CISE”).


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

7

DirectorsR Phillips (Chairman)Ground FloorDorey CourtAdmiral ParkSt Peter Port Guernsey GY1 2HT

A MoorsheadGround FloorDorey CourtAdmiral ParkSt Peter Port Guernsey GY1 2HT

M MaubecGround FloorDorey CourtAdmiral ParkSt Peter Port Guernsey GY1 2HT

M Bright (resigned on 31 March 2017)Ground FloorDorey Court Admiral ParkSt Peter PortGuernsey GY1 2HT

M Wilson (appointed on 31 March 2017)Ground FloorDorey CourtAdmiral ParkSt Peter Port Guernsey GY1 2HT

Registered OfficeGround FloorDorey CourtAdmiral ParkSt Peter Port Guernsey GY1 2HT

Administrator, Company Secretary, Designated Manager, Registrar and Sponsor to the TISE ListingJTC Fund Solutions (Guernsey) Limited Ground FloorDorey Court Admiral ParkSt Peter PortGuernsey GY1 2HT

CustodianBNP Paribas Securities Services SCA – Guernsey BranchBNP Paribas HouseSt Julian’s AvenueSt Peter PortGuernsey GY1 1WA

Independent AuditorDeloitte LLPRegency Court Glategny EsplanadeSt Peter PortGuernsey GY1 3HW

Legal AdvisersCarey OlsenPO Box 98Carey HouseLes BanquesSt Peter PortGuernsey GY1 4BZ

Alternative Investment Fund ManagerKleinwort Benson (Channel Islands) Investment Management LimitedDorey CourtAdmiral ParkSt Peter Port Guernsey GY1 2HT

Sub-Investment ManagerKleinwort Benson Bank Limited14 St George StreetLondonW1S 1FE


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

8

Alternative Investment Fund Manager’s Report

Portfolio Commentary: 6 months August 2016 to January 2017

Multi Asset FundsKleinwort Benson Elite Multi Asset Conservative FundPerformanceThe fund rose 2.3% over the 6-month period ending 31st January 2017. Global equity markets were up 10.8% over the period in GBP terms, benefiting from the devaluation of sterling in October, compared to the UK equity market that returned 7.3%; UK conventional Gilts fell 4.8% as investors factored in future rate rises.

Portfolio activityThe six months under review tested investors resolve, but eventually a “risk-on” stance was rewarded. Major equity bellwethers such as the FTSE 100 and the S&P 500 were up 7.4% and 11.8%, respectively. On the flip side returns from fixed income markets were muted as investors focused on the changing trajectory of interest rates. While conventional Gilts declined, this was offset by indexed linked gilts, with the FTSE Index Linked All Stocks returning 5.8%. Credit markets saw modest capital declines, though high yield bonds were able to offset this with their higher coupons, delivering a small total return overall.

The rally that started in June paused at the end of August, testing investor’s nerve to maintain their risk on positioning. This was rewarded in September as rates remained unchanged, removing uncertainty in markets. Janet Yellen noted that future increases in rates could be slower than previously expected at the Fed, Mario Draghi noting that no further stimulus was required at this time in Europe, and Mark Carney leaving the door open for a further cut in interest rates in the future at the Bank of England.

Brexit remained in the headlines, with major debates around whether the UK would enact a “hard” or a “soft” exit. As we moved into October, Theresa May commenced setting a timeline to begin the exit from Europe by triggering Article 50 by the end of March 2017.

As October drew to a close markets were spooked as Presidential candidate Donald Trump gained ground in the polls over Hilary Clinton. Post his election, these fears were discounted by markets which again continued their upwards path. Indeed, when the Federal Reserve increased the Fed funds rate in December, the first time in a year, markets took it in their stride.

The principle driver of returns over the period came from the fund’s equity allocation, in particular the US, European and Asian exposures. Elsewhere commodities and credit added value, but governments were broadly flat; declines from conventional gilts being offset by strong gains in index linked positions.

In comparison to the first half of 2016 we made few changes to the portfolio over the period. In November after a further devaluation of sterling we decided to hedge the commodities US$ exposure as we considered it likely that sterling would rebound from these extreme levels.

The final changes were made in January, fine tuning the equity allocation, though the overall equity allocation remained unchanged. We made modest reductions to the US and Asia ex Japan allocations and added to European and emerging market positions.

Kleinwort Benson Elite Multi Asset Balanced FundPerformanceThe fund rose 4.9% over the 6-month period ending 31st January 2017. Global equity markets were up 10.8% over the period in GBP terms, benefiting from the devaluation of sterling in October, compared to the UK equity market that returned 7.3%; UK conventional Gilts fell 4.8% as investors factored in future rate rises.





Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

9

Alternative Investment Fund Manager’s Report (continued)

The principle driver of returns over the period came from the fund’s equity allocation, in particular the US, European and Asian exposures. Commodities also added value. In fixed income, credit and gilt positions were broadly flat overall. Declines from conventional gilts were offset by strong gains in index linked positions and in credit, gains from high yield were offset by losses in credit.

In comparison to the first half of 2016 we made few changes to the portfolio over the period. In November after a further devaluation of sterling we decided to hedge the commodities US$ exposure as we considered it likely that sterling would rebound from these extreme levels.

The final changes were made in January, fine tuning the equity allocation, though the overall equity allocation remained unchanged. We made modest reductions to the US and Asia ex Japan allocations and added to European and emerging market positions.

Kleinwort Benson Elite Multi Asset Growth FundPerformanceThe fund rose 6.9% over the 6-month period ending 31st January 2017. Global equity markets were up 10.8% over the period in GBP terms, benefiting from the devaluation of sterling in October, compared to the UK equity market that returned 7.3%; UK conventional Gilts fell 4.8% as investors factored in future rate rises.





The principle driver of returns over the period came from the fund’s equity allocation, in particular the US, European and Asian exposures. Commodities also added value. In fixed income, credit and gilt positions were broadly flat overall. Declines from conventional gilts were offset by strong gains in index linked positions and in credit, gains from high yield were offset by losses in credit.

In May we took the decision to remove the fund’s UK commercial property exposure, adding an allocation to commodities in its place. We also further reduced the UK equity holdings adding Asian and Japanese positions with the proceeds.

Taken together these changes, since the start of the year, have significantly reduced our UK equity exposure which proved beneficial post the Brexit vote for the fund.

Fixed Income FundsKleinwort Benson Elite Sterling Fixed Income Fund PerformanceDuring the period under review the fund returned 1.2 per cent and its current benchmark returned 4.2 per cent.

Portfolio activityIn the aftermath of the “Brexit” vote The Bank of England (BoE) warned of a deteriorating economic outlook for the UK and potentially Europe. Following the BoE’s Monetary Policy Committee decision a cut interest rates to 0.25% in August and increasing its quantitative easing program by £70 bln and added £10 bln for the purchase of UK corporate bonds, 10yr Gilt yields fell to an all-time low of 0.52%.

A survey taken after the leave vote showed UK consumer confidence recorded its sharpest one-month drop since December 1994. Updating its World Economic Outlook, the IMF lowered its growth forecast for the UK to 1.7% and 1.3% for 2016 and 2017 respectively. With an uncertain future for the UK’s economy; expectations a Brexit will cause a DIY recession, Moody’s ratings agency cut the UK’s AAA status to AA1.

10 year Gilt yields rose sharply in October as sterling weakness and increasing energy costs were expected to push inflation above, although temporarily, the Bank of England’s 2% target. Inflation leapt to 1% in the year to September, its highest rate in nearly two years.

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

10


Post-Brexit economic figures have been far better than many had forecast. But we would be wise to remember the UK is still in Europe, with exporters enjoying open access and a cheap pound. Following sterling’s depreciation UK export optimism for October rose to its highest level in two-and-a-half.

Following Donald Trump’s presidential election success US Treasuries rose 50 bps as a consensus developed that huge US infrastructure spending will cause a surge of growth, which in turn will lead to an overshoot in inflation. UK 10 year gilts also rose by 25 bps. Pressure on higher yields continued to build with the consumer prices in the UK reported at 1.6% higher in December versus a year ago. More evidence that Brexit-related weakness in sterling is feeding into inflationary pressures, was evident in December’s factory gate prices which rose 2.5% y/y, input prices rose 17% y/y. This data is consistent with expectations for steady pick-up in price pressures into 2017. Sterling yields continued to rise with 10 year Gilt yields ending the period at 1.41%.marking an 89 bps rise since hitting all-time lows of 0.52% in August.

As expected, the US Federal Reserve (Fed) raised interest rates by 25 bp to 0.50-0.75% in December. Reiterating near-term risks to the outlook are “roughly balanced”. Most Fed policymakers expect three rate hikes in each of the next three years – ending at 3% in the “longer run”.

The British Chamber of Commerce’s quarterly economic survey showed that inflation is the biggest concern for firms in the year ahead and that firms in manufacturing and services are under pressure from the rising cost of raw materials and other overheads.

At a recent speech, Mark Carney noted that the MPC is willing to tolerate above target inflation but there are limits. He said monetary policy can respond in either direction to ensure a sustainable return of inflation to target. Q4 UK GDP growth was slightly better than forecast, increasing 0.6% q/q, leaving the y/y rate at 2.2%. The ONS highlighted Q4 growth was dominated by services, with a strong contribution from consumer-focused industries such as retail, travel and leisure.

Despite the relative underperformance to the fund’s benchmark we maintain our cautious, short duration strategy, and continue to resist the temptation to increase overall portfolio duration as we see future risks are skewed to the upside and further capital losses.

Kleinwort Benson Elite International Bond Fund PerformanceDuring the period under review the fund returned -1.2 per cent and its current benchmark returned -0.8 per cent.

Portfolio activityThe aftermath of the Brexit vote has highlighted major fissures in the European Union, with the far right gaining popularity

as the region struggled to recover from the financial crisis, employment was stuck as 10% across the region, with hot-spots like Spain suffering with 20% unemployment, a moribund economy and an inability to form a government. The ECB was very cogniscent of these pressures and continued to maintain a very loose monetary policy but may be running out of fire power for any future shocks.

The US economy is undeniably on an increasingly solid footing: unemployment is below 5%, real wages are rising and businesses appear optimistic. With Donald Trump being elected US president US Treasuries rose 50 bps as a consensus developed that huge US infrastructure spending will cause a surge of growth, which in turn will lead to an overshoot in inflation. In response the USD trade weighted index continued its positive momentum rising 4.6% from the election of Mr Trump.

Eurozone economic data continues to improve pushing yields higher. Eurozone flash manufacturing PMI was reported at 55.1 vs 54.9 in December, hitting a 69-month high. The services component was at 53.6 vs 53.7. Markit, the compiler of the data, said the Eurozone economy continued to expand at a robust pace at the start of 2017, with employment rising at the fastest rate since 2008 amid rising optimism about the business outlook and added hiring gaining momentum in both services and manufacturing on the back of sustained growth of new orders. By the end of the period Eurozone unemployment had declined to 9.6%. Inflationary pressures meanwhile intensified further, CPI for January was reported at 1.85% and q/q Eurozone growth rose 0.5% q/q and 1.8% y/y. Minutes from December’s European Central Bank meeting showed a strong appetite to continue the quantitative easing program throughout 2017. This is welcome news with undeniably strong signs of recovery. However, Germany may demand the ECB tightens faster than it wishes. The German economy is doing well, Q3 2016 growth at 1.7% and strong economic sentiment indicators, Germany will want the stimulus to end before it causes the economy to overheat.

As expected, the US Federal Reserve (Fed) raised interest rates by 25 bp to 0.50-0.75%. Reiterating near-term risks to the outlook are “roughly balanced”. Most Fed policymakers expect three rate hikes in each of the next three years – ending at 3% in the “longer run”. At the same time the Bank of England Policy setting committee left interest rates at 0.25% and QE target unchanged at £435b. It sees Q4 GDP growth at 0.4%, and expects a slowdown ahead and inflation reaching 2% within six months.

December’s FOMC minutes highlighted uncertainty surrounding timing, size and composition of any future policy initiatives, as well as about how they might affect aggregate demand and supply. However, the minutes showed members noted upside risks to their forecasts for economic growth had increased as a result of prospects for more expansionary fiscal policies in coming years. In addition there was some talk of upside risks to inflation forecasts. As with other bond

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

11


markets US Yields rose at the start of the year, amplified by a surge in crude oil prices and the prospect of a new, aggressive administration in Washington. The US economy grew at an annual rate of 3.5% in the third quarter, an upward revision from its previous estimate of 3.2%.

Despite having a relative underweight duration strategy in a rising interest rate environment the fund underperformed its benchmark. Relative to the benchmark we are overweight sterling with a 15% allocation to USD and 10% to the Euro which has proved a headwind to performance. The benchmark has only a 5% sterling exposure with a 68% and 21% allocation to the USD and Euro respectively. With a widening GBP/USD interest rate differential we have been increasing our USD exposure during period of weakness. We are sanguine on the GBP/EUR keeping a 10% allocation.

Kleinwort Benson Elite Euro Fixed Income Fund PerformanceDuring the period under review the fund returned -2.8 per cent and its current benchmark returned -3.8 per cent.

Portfolio activityThe aftermath of the Brexit vote has highlighted major fissures in the European Union, with the far right gaining popularity as the region struggles to recover from the financial crisis, employment was stuck as 10% across the region, with hot-spots like Spain suffering with 20% unemployment, a moribund economy and an inability to form a government. The ECB was very cogniscent of these pressures and continued to maintain a very loose monetary policy but may be running out of fire power for any future shocks.

Eurozone economic data continues to improve pushing yields higher. Eurozone flash manufacturing PMI was reported at 55.1 vs 54.9 in December, hitting a 69-month high. The services component was at 53.6 vs 53.7 in December. Markit, the compiler of the data, said the Eurozone economy continued to expand at a robust pace at the start of 2017, with employment rising at the fastest rate since 2008 amid rising optimism about the business outlook and added hiring gained momentum in both services and manufacturing on the back of sustained growth of new orders. By the end of the period Eurozone unemployment had declined to 9.6%. Inflationary pressures meanwhile intensified further, CPI for January was reported at 1.85% and q/q Eurozone growth rose 0.5% q/q and 1.8% y/y. Minutes from December’s European Central Bank meeting showed a strong appetite to continue the quantitative easing program throughout 2017. This is welcome news with undeniably strong signs of recovery. However, Germany may demand the ECB tightens faster than it wishes. The German economy is doing well with Q3 2016 growth at 1.7% and strong economic sentiment indicators, Germany will want the stimulus to end before it causes the economy to overheat.

Looking forward a few months, risks are skewed to the upside with French, Dutch and German elections due in 2017. French and Dutch elections present the greatest risks to market volatility as the far right parties continue to gain in popularity. In response to the heightened political uncertainty the yield spread between 10 year French and German government bonds recently reached its widest in 5 years reflecting the perceived risks of a right wing victory.

In a rising yield environment the fund was able to mitigate some of the risks with its shorter duration strategy. In addition the fund has a ~15% exposure to the USD. During the period under review the USD strengthened against the Euro by some 4.6% to end the period at $1.0691 and reaching a 15 year low in December of 1.0378. With the expectation of a widening EUR/USD interest rate differential we maintain the current USD allocation.

Kleinwort Benson Elite International Equity Fund PerformanceFor the 6 months ending 31 January 2016, the Fund generated a healthy positive return in GBP terms, though lagged the global market according to the FTSE World Index of equities. Over the period, the fund was well positioned in terms of both sector allocation and regional allocations, but stock selection within each classification meant lagging the wider market somewhat.

Portfolio activityOn balance, sector allocations contributed positively to performance. The Fund’s overweight to the Financials sector and underweights to Real Estate and Health Care were positive. Financials were by far the best performing sector over the period globally while Real Estate and Health Care were the worst performers. The Fund’s higher allocations to Consumer Staples and Utilities, however, detracted somewhat as such lower growth and interest-rate sensitive stocks underperformed the wider market.

While the sector allocations were positive, stock selection within sectors lagged the market. The lag was as much to do with what stocks the Fund did not hold, and certain mega and large cap technology stocks were crucial to performance. Apple, Microsoft, Nvidia, and Facebook all performed exceptionally well; by not holding these, the Fund underperformed the tech sector. Additionally, a few of the Fund’s tech holdings performed poorly over the period, particularly Ericsson and Cap Gemini, though both have since been sold in response to their deteriorating fundamentals. Even the Fund’s best performing tech stock over the period – Intel Corp (+12.8% in GBP terms) – failed to beat the sector returns (+15.5%), thus it was a challenging period to outperform in technology.

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

12


Regional allocations were also positive, particularly given the Fund’s bias to Western Europe, but again stock selection within regions and countries meant lagging in a strong up market. In both Europe and North America, not holding enough banks meant lagging behind, though the Fund’s higher allocations to banks in Canada and Asia compensated somewhat for this. And again, when looking at regions, not holding substantial amounts of mega-cap US technology stocks led to relative underperformance versus the US market.

All told, the Fund generated a healthy positive return over the period. With the Fund’s somewhat lower risk profile relative to the market index, it is perhaps to be expected that it would lag during a period of outperformance from lower-quality cyclical stocks. Indeed, when compared to the benchmark, the Fund’s portfolio was generally cheaper on nearly all standard valuation measures (Price to Earnings, Price to Cash Flow, Price to Book, etc.). Over time, we would expect such a profile to generate outperformance.

Looking forward, we continue to see divergence of performance between the Fund and global equity market benchmarks due to our active management and allocations to opportunities irrespective of market capitalisation.

Kleinwort Benson Elite Trojan Fund PerformanceThe Fund remains in run-off with the remaining assets continuing to be the remaining shares in EEA Life Settlement Fund (EEA) and cash. The EEA shares themselves continue to be in run-off and the eventual liquidation of the KB Elite Trojan Fund is dependent upon the liquidation of the EEA shares or the ability to sell them.

Portfolio activityHaving registered interest in an offer from Tullet Prebon the Directors of KB Elite Trojan Fund declined to accept after they offered less than 30% of the net asset value of the EEA shares (NAV). The Directors will consider any future offers on their merits but felt the discount to NAV offered by Tullet Prebon did not represent good value for shareholders of KB Elite Trojan Fund.

Cash flows from EEA continue to be received when the fund has sufficient excess capital after allowing for the premiums it is due to pay on the underlying life insurance policies in which it invests. EEA has recently reduced its policy of holding two years premiums to only holding one years, making more cash available to its investors. Partly as a result of this and partly as a result of some life policies maturing the KB Elite Trojan Fund has received a boost to its cash position.

EEA has continued to receive cash flows from policy maturities at the lower end of the forecast range. As cash flows are received and the balance increases the Directors of KB Elite Trojan Fund will consider making a further distribution, however there are insufficient funds available at present to make a worthwhile distribution.

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

13

This page has been left blank intentionally

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

14

Directors’ Report

The Directors of Kleinwort Benson Elite PCC Limited (“the Company”) are pleased to submit their interim report and unaudited condensed financial statements for the period ended 31 January 2017 with unaudited comparatives for the period ended 31 January 2016 and audited balance sheet comparatives for the year ended 31 July 2016.

Results and dividendsThe results for the period are shown in the condensed statement of total return on page 18.

The Directors are entitled, in their sole discretion, to declare and pay dividends.

In accordance with the Cell Particulars dividends can be declared by 31 January, 30 April, 31 July and 31 October in each year in respect of Kleinwort Benson Elite Sterling Fixed Income Fund, Kleinwort Benson Elite International Equity Fund, Kleinwort Benson Elite International Bond Fund and Kleinwort Benson Elite EUR Fixed Income Fund.

Dividends can also be declared by 31 January and 31 July in each year in respect of Kleinwort Benson Elite Multi Asset Conservative Fund and declared by 31 July each year in respect of Kleinwort Benson Elite Multi Asset Balanced Fund and Kleinwort Benson Elite Multi Asset Growth Fund.

Dividend income will be distributed within two months of the relevant date (the “Payment Date”) to all shareholders registered on the register as of the date of declaration of the dividend.

No dividends are declared by Kleinwort Benson Elite GBP Currency Fund, Kleinwort Benson Elite EUR Currency Fund, Kleinwort Benson Elite USD Currency Fund and Kleinwort Benson Elite Global Trojan Fund.

Under Guernsey law, companies can pay dividends in excess of accounting profit provided they satisfy the solvency test prescribed under The Law. The solvency test considers whether a company is able to pay its debts when they become due and whether the value of a company’s assets are greater than its liabilities after any dividend is paid.

All expenses in respect of the Kleinwort Benson Elite Sterling Fixed Income Fund, the Kleinwort Benson Elite Multi Asset Conservative Fund, the Kleinwort Benson International Bond Fund and the Kleinwort Benson EUR Fixed Income Fund have been charged to capital.

Going concernIn the opinion of the Directors, there is a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason the condensed financial statements have been prepared on the going concern basis.

The Directors have arrived at this opinion by considering, inter alia, the following factors:

• the Company has sufficient liquidity to meet all on-going expenses (net current asset position at 31 January 2017 of £24,941,240* (2016: £24,034,779);

• in the event of significant cell share redemptions the Directors can suspend all dealings;

• the Company holds a large amount of investments which are able to be settled within three business days of the trade date and therefore will have sufficient resources to meet future redemption requests and other liquidity requirements;

• the Company deals on a weekly basis and has a settlement period of up to seven days following the relevant dealing day. On this basis, the Company is well placed to meet all future cash flows associated with redemption requests; and

• the KB Elite Trojan Fund is currently in the process of being realised. The last valuation date of the Cell was 31 January 2017.

*The net current asset position is derived as follows:

Total assets £221,585,073

Less total liabilities (£3,413,530)

Less investment assets net of short positions (£193,230,303)

£24,941,240

DirectorsThe Directors are noted on page 7. On 31 March 2017 Mr Wilson was appointed as Director following the resignation of Mr Bright. The remaining Directors served throughout the period.

None of the Directors has a service contract with the Company and no such contract is proposed. As at 31 January 2017 none of the Directors, their associates or the Investment Manager held any participating shares in the Company. Mr Bright and Mr Moorshead waived their entitlement to Directors’ fees, Mr Phillips is entitled to a fee of £22,500 per annum and Mr Maubec is entitled to a fee of £15,000 per annum.

Related partiesDetails of the related parties are disclosed in note 6 to the condensed financial statements.

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

15

Directors’ Report (continued)

The Alternative Investment Fund Managers DirectiveThe Directive, which was implemented by EU Member States in 2013, covers the management, administration and marketing of alternative investment funds (“AIFs”). Its focus is on regulating alternative investment fund managers (“AIFMs”) established in the EU and prohibits such managers from managing any AIFs or marketing shares in such funds to investors in the EU unless an AIFMD authorisation is granted to the AIFM. The Fund is a non-EU AIF whose AIFM is Kleinwort Benson (Channel Islands) Investment Management Limited, a non-EU AIFM for the purpose of the Alternative Investment Fund Managers Directive 2011/61/EU (“AIFMD”).

Taxation

The Income Tax Authority in Guernsey has granted the Company exemption from Guernsey income tax under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989 and the income of the Company may be distributed or accumulated without deduction of Guernsey income tax. Exemption under the above mentioned Ordinance entails payment of an annual fee of £1,200.

UK Offshore Fund Rules and Reporting Fund Regime

The Company complies with the provisions of the UK offshore fund rules to enable UK investors to benefit from capital (as opposed to income) tax on gains made on the disposal of shares. The Company is comprised of a number of Cells and share classes that are each treated as separate funds for the purpose of these rules.

The Reporting Fund regime requires funds to be entered into the regime to disclose certain information to UK investors for each reporting period.

The following Funds have been accepted into the Reporting Fund regime with effect from 31 July 2015.

• Kleinwort Benson Elite Sterling Fixed Income Fund – A GBP Income Reporting Shares

• Kleinwort Benson Elite Sterling Fixed Income Fund – B GBP Income Reporting Shares

• Kleinwort Benson Elite Multi Asset Conservative Fund – A GBP Income Reporting Shares

• Kleinwort Benson Elite Multi Asset Conservative Fund – B GBP Income Reporting Shares

• Kleinwort Benson Elite Multi Asset Conservative Fund – A EUR Accumulating Reporting Shares

• Kleinwort Benson Elite Multi Asset Balanced Fund – A GBP Income Reporting Shares

• Kleinwort Benson Elite Multi Asset Balanced Fund – A GBP Reinvest Reporting Shares

• Kleinwort Benson Elite Multi Asset Balanced Fund – B GBP Income Reporting Shares

• Kleinwort Benson Elite Multi Asset Balanced Fund – A EUR Accumulating Reporting Shares

• Kleinwort Benson Elite Multi Asset Balanced Fund – A USD Accumulating Reporting Shares

• Kleinwort Benson Elite Multi Asset Growth Fund – A GBP Income Reporting Shares

• Kleinwort Benson Elite Multi Asset Growth Fund – A GBP Reinvest Reporting Shares

• Kleinwort Benson Elite Multi Asset Growth Fund – B GBP Income Reporting Shares

• Kleinwort Benson Elite Multi Asset Growth Fund – A USD Accumulating Reporting Shares

• Kleinwort Benson Elite International Equity Fund – A GBP Income Reporting Shares

• Kleinwort Benson Elite International Equity Fund – A GBP Reinvest Reporting Shares

• Kleinwort Benson Elite EUR Fixed Income Fund – B EUR Income Reporting Shares

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

16

Directors’ Report (continued)

Directors’ responsibilities

The Law requires the Directors to prepare financial statements for each financial period, which give a true and fair view of the state of affairs of the Company as at the end of the financial period and of the profit or loss of the Company for that period. In preparing those financial statements, the Directors are required to:

• select suitable accounting policies and apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements; and

• prepare the condensed financial statements on the going concern basis, unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company to enable them to ensure that the financial statements comply with The Law, The Protection of Investors (Bailiwick of Guernsey) Law, 1987, The Authorised Collective Investment Schemes (Class B) Rules, 2013 and the principal documents. They are also responsible for the system of internal control, for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Director: R Phillips

Director: M Maubec

18 May 2017

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

17

Comparative Table

Three year record net asset value per shareThe net asset value per share is summarised in the table below.

31 January 2017 31 July 2016 31 July 2015 31 July 2014

Sterling Fixed Income FundA Income Reporting Shares £10.88 £11.21 £10.94 £10.77 B Income Reporting Shares £0.94 £0.97 £0.94 £0.93 Multi Asset Balanced FundA GBP Income Reporting Shares £1.60 £1.52 £1.45 £1.38 A GBP Reinvest Reporting Shares £1.60 £1.52 £1.45 £1.38 B GBP Income Reporting Shares £1.54 £1.47 £1.40 £1.34 A USD Accumulating Reporting Shares $1.24 $1.19 $1.12 $1.08 A USD Accumulating Non-reporting Shares $1.24 $1.19 $1.12 $1.08 A EUR Accumulating Reporting Shares €1.14 €1.10 €1.05 €1.02B USD Accumulating Non-reporting Shares $1.22 $1.16 $1.11 $1.06 B EUR Accumulating Non-reporting Shares €1.17 €1.13 €1.08 €1.05 B GBP Accumulating Non-reporting Shares £1.25 £1.20 £1.13 £1.08 Multi Asset Conservative FundA GBP Income Reporting Shares £1.10 £1.09 £1.06 £1.04 B GBP Income Reporting Shares £1.06 £1.05 £1.03 £1.01 A EUR Accumulating Reporting Shares €1.07 €1.06 €1.02 €1.00 B USD Accumulating Non-reporting Shares $1.10 $1.08 $1.03 $1.01 B EUR Accumulating Non-reporting Shares €1.07 €1.05 €1.02 €1.00 B GBP Accumulating Non-reporting Shares £1.13 £1.11 £1.06 £1.02 Multi Asset Growth Fund A GBP Income Reporting Shares £1.47 £1.38 £1.27 £1.20 A GBP Reinvest Reporting Shares £1.47 £1.37 £1.27 £1.20 B GBP Income Reporting Shares £1.37 £1.28 £1.18 £1.12 A USD Accumulating Reporting Shares $1.34 $1.27 $1.17 $1.12 B USD Accumulating Non-reporting Shares $1.32 $1.24 $1.15 $1.10 B EUR Accumulating Non-reporting Shares €1.28 €1.21 €1.13 €1.09 B GBP Accumulating Non-reporting Shares £1.37 £1.28 £1.18 £1.11 International Equity Fund A GBP Income Reporting Shares £1.52 £1.41 £1.14 £0.97 A GBP Reinvest Reporting Shares £1.52 £1.42 £1.15 £0.98 B GBP Accumulating Non-reporting Shares £1.89 £1.76 £1.41 £1.20 Sterling Currency FundB GBP Accumulating Non-reporting Shares £0.99 £0.99 £0.99 £0.99Euro Currency Fund B EUR Accumulating Non-reporting Shares €0.97 €0.97 €0.98 €0.99US Dollar Currency Fund B USD Accumulating Non-reporting Shares $0.95 $0.95 $0.96 $0.98International Bond FundB GBP Accumulating Non-reporting Shares £0.98 £0.99 £0.92 £0.89EUR Fixed Income Fund B EUR Income Reporting Shares €0.96 €1.00 €1.00 €0.99Elite Trojan Fund Participating Shares £0.64 £0.61 £0.57 £0.72

The above table does not include those shares classes which are not active or have been fully redeemed.

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

18

For the period ended 31 January 2017

TotalNon-

Cellular

SterlingFixed Income

Fund

Multi Asset Balanced

Fund

Multi Asset Conservative

Fund

Multi AssetGrowth Fund

International Equity Fund

GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund

International Bond Fund

EUR Fixed

Income

Trojan Fund

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017Notes £ £ £ £ £ £ £ £ € US$ £ € £

Net capital (losses)/gains 9,807,216 (693,463) 4,313,034 339,619 4,316,591 1,708,581 1 (7,765) 75 (58,495) (159,034) 24,999

Other losses - capital expenses 3 (351,724) (167,072) - (128,026) - - - - - (25,980) (35,570) -

Revenue 2,228,164 494,216 814,452 149,696 415,378 241,859 4,533 - 3,959 45,082 69,412 2

Expenses 3 (1,487,708) - (724,735) - (507,225) (220,341) (12,055) (14,048) (9,271) - - (3,891)

Interest payable and similar charges (969) - - - - (792) - (11) - (12) (180) -

Net revenue/(expense) before taxation 739,487 - 494,216 89,717 149,696 (91,847) 20,726 (7,522) (14,059) (5,312) 45,070 69,232 (3,889)

Taxation (114,542) - (21,701) (3,250) (28,431) (56,538) - - - - (5,364) -

Net revenue/(expense) after taxation 624,945 - 494,216 68,016 146,446 (120,278) (35,812) (7,522) (14,059) (5,312) 45,070 63,868 (3,889)

Total return before distribution 10,080,437 (366,319) 4,381,050 358,039 4,196,313 1,672,769 (7,521) (21,824) (5,237) (39,405) (130,736) 21,110

Distributions 4 (762,744) (506,414) (379) (150,000) - (790) - - - (48,891) (65,310) -

Change in net assets attributable to shareholders from investment activities

9,317,693 (872,733) 4,380,671 208,039 4,196,313 1,671,979 (7,521) (21,824) (5,237) (88,296) (196,046) 21,110

Condensed Interim Statement of Total Return

All activities derive from continuing operations except for the Trojan Fund that is being wound up. The Company has no recognised gains or losses other than those reflected in the statement of total return above, therefore a separate statement of total recognised gains and losses has not been prepared.

The notes on pages 26 to 34 form an integral part of these condensed financial statements.

Condensed Interim Statement of Change in Net Assets Attributable to Shareholders

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017Notes £ £ £ £ £ £ £ £ € US$ £ € £

Opening net assets attributable to shareholders

219,192,586 100 30,104,089 81,826,137 13,822,088 55,423,201 22,721,862 3,403,680 4,002,318 1,141,448 3,305,442 4,735,076 367,133

Effect of foreign exchange rate changes

193,503 - - - - - - - - - - - -

Amounts receivable on issues of shares

6,995,067 - 2,039,795 1,906,482 1,590,380 342,714 599,030 43,659 484,753 - - 64,246 -

Amounts payable on redemptions of shares

(17,676,609) - (3,060,392) (6,418,863) (1,521,043) (4,314,946) (1,618,375) (461,075) (19,427) (18,124) (101,699) (173,046) -

(10,681,542) - (1,020,597) (4,512,381) 69,337 (3,972,232) (1,019,345) (417,416) 465,326 (18,124) (101,699) (108,800) -


9,317,693 - (872,733) 4,380,671 208,039 4,196,313 1,671,979 (7,521) (21,824) (5,237) (88,296) (196,046) 21,110

Retained distribution on accumulation shares

149,403 - - - 100,786 - 171 - - - 48,446 - -

Closing net assets attributable to shareholders

218,171,643 100 28,210,759 81,694,427 14,200,250 55,647,282 23,374,667 2,978,743 4,445,820 1,118,087 3,163,893 4,430,230 388,243


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

19

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017Notes £ £ £ £ £ £ £ £ € US$ £ € £

Net capital (losses)/gains 9,807,216 (693,463) 4,313,034 339,619 4,316,591 1,708,581 1 (7,765) 75 (58,495) (159,034) 24,999

Other losses - capital expenses 3 (351,724) (167,072) - (128,026) - - - - - (25,980) (35,570) -

Revenue 2,228,164 494,216 814,452 149,696 415,378 241,859 4,533 - 3,959 45,082 69,412 2

Expenses 3 (1,487,708) - (724,735) - (507,225) (220,341) (12,055) (14,048) (9,271) - - (3,891)

Interest payable and similar charges (969) - - - - (792) - (11) - (12) (180) -

Net revenue/(expense) before taxation 739,487 - 494,216 89,717 149,696 (91,847) 20,726 (7,522) (14,059) (5,312) 45,070 69,232 (3,889)

Taxation (114,542) - (21,701) (3,250) (28,431) (56,538) - - - - (5,364) -

Net revenue/(expense) after taxation 624,945 - 494,216 68,016 146,446 (120,278) (35,812) (7,522) (14,059) (5,312) 45,070 63,868 (3,889)

Total return before distribution 10,080,437 (366,319) 4,381,050 358,039 4,196,313 1,672,769 (7,521) (21,824) (5,237) (39,405) (130,736) 21,110

Distributions 4 (762,744) (506,414) (379) (150,000) - (790) - - - (48,891) (65,310) -


9,317,693 (872,733) 4,380,671 208,039 4,196,313 1,671,979 (7,521) (21,824) (5,237) (88,296) (196,046) 21,110

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017Notes £ £ £ £ £ £ £ £ € US$ £ € £


219,192,586 100 30,104,089 81,826,137 13,822,088 55,423,201 22,721,862 3,403,680 4,002,318 1,141,448 3,305,442 4,735,076 367,133


193,503 - - - - - - - - - - - -


6,995,067 - 2,039,795 1,906,482 1,590,380 342,714 599,030 43,659 484,753 - - 64,246 -


(17,676,609) - (3,060,392) (6,418,863) (1,521,043) (4,314,946) (1,618,375) (461,075) (19,427) (18,124) (101,699) (173,046) -

(10,681,542) - (1,020,597) (4,512,381) 69,337 (3,972,232) (1,019,345) (417,416) 465,326 (18,124) (101,699) (108,800) -


9,317,693 - (872,733) 4,380,671 208,039 4,196,313 1,671,979 (7,521) (21,824) (5,237) (88,296) (196,046) 21,110


149,403 - - - 100,786 - 171 - - - 48,446 - -


218,171,643 100 28,210,759 81,694,427 14,200,250 55,647,282 23,374,667 2,978,743 4,445,820 1,118,087 3,163,893 4,430,230 388,243

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

20

All activities derive from continuing operations aside from the Trojan Fund that is being wound up. The Company has no recognised gains or losses other than those reflected in the statement of total return above, therefore a separate statement of total recognised gains and losses has not been prepared.

The notes on pages 26 to 34 form an integral part of these condensed financial statements.

Condensed Interim Statement of Change in Net Assets Attributable to Shareholders

Condensed Interim Statement of Total ReturnFor the period ended 31 January 2016

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016Notes £ £ £ £ £ £ £ £ € US$ £ € £

Net capital (losses)/gains (3,033,155) – (376,164) (2,430,979) (109,599) (1,226,160) 1,074,519 184 (2,370) 413 21,879 (7,354) 19,987

Other losses - capital expenses 3 (353,039) – (172,456) – (123,809) – – – – – (29,090) (37,931) –

Revenue 3,731,134 – 591,857 1,580,452 204,418 957,780 257,911 9,100 – 1,208 59,561 94,857 17

Expenses 3 (1,400,372) – – (724,284) – (446,971) (190,779) (14,075) (16,931) (12,211) – – (3,761)

Interest payable and similar charges (2,580) – – – – – (2,560) – – – 43 (86) –

Net revenue/(expense) before taxation 2,328,182 – 591,857 856,168 204,418 510,809 64,572 (4,975) (16,931) (11,003) 59,604 94,771 (3,744)

Taxation (227,557) – (13,172) (99,534) (7,105) (51,277) (55,478) – – – – (1,358) –

Net revenue/(expense) after taxation 2,100,625 – 578,685 756,634 197,313 459,532 9,094 (4,975) (16,931) (11,003) 59,604 93,413 (3,744)

Total return before distribution (1,285,569) – 30,065 (1,674,345) (36,095) (766,628) 1,083,613 (4,791) (19,301) (10,590) 52,393 48,128 16,243

Distributions 4 (941,176) – (586,703) (22,525) (191,287) (9,446) (1,579) – – – (62,687) (91,728) –


(2,226,745) – (556,638) (1,696,870) (227,382) (776,074) 1,082,034 (4,791) (19,301) (10,590) (10,294) (43,600) 16,243

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016Notes £ £ £ £ £ £ £ £ € US$ £ € £


227,027,165 100 32,272,882 89,231,243 13,998,901 53,391,864 21,690,713 4,343,434 4,758,171 1,443,058 3,880,831 4,861,502 481,631


592,045 – – – – – – – – – – – –


4,376,923 – 1,571,018 2,073,537 296,016 295,975 59,675 30,048 6,683 – – 62,718 –


(15,310,921) – (2,636,852) (6,113,562) (764,766) (2,550,732) (2,196,950) (143,450) (672,586) (56,088) (302,473) (101,149) –

(10,933,998) – (1,065,834) (4,040,025) (468,750) (2,254,757) (2,137,275) (113,402) (665,903) (56,088) (302,473) (38,431) –


(2,226,745) – (556,638) (1,696,870) (227,382) (776,074) 1,082,034 (4,791) (19,301) (10,590) (10,294) (43,600) 16,243


198,533 – – – 136,704 – – – – – 61,829 – –


214,657,000 100 30,650,410 83,494,348 13,439,473 50,361,033 20,635,472 4,225,241 4,072,967 1,376,380 3,629,893 4,779,471 497,874


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

21

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016Notes £ £ £ £ £ £ £ £ € US$ £ € £

Net capital (losses)/gains (3,033,155) – (376,164) (2,430,979) (109,599) (1,226,160) 1,074,519 184 (2,370) 413 21,879 (7,354) 19,987

Other losses - capital expenses 3 (353,039) – (172,456) – (123,809) – – – – – (29,090) (37,931) –

Revenue 3,731,134 – 591,857 1,580,452 204,418 957,780 257,911 9,100 – 1,208 59,561 94,857 17

Expenses 3 (1,400,372) – – (724,284) – (446,971) (190,779) (14,075) (16,931) (12,211) – – (3,761)

Interest payable and similar charges (2,580) – – – – – (2,560) – – – 43 (86) –

Net revenue/(expense) before taxation 2,328,182 – 591,857 856,168 204,418 510,809 64,572 (4,975) (16,931) (11,003) 59,604 94,771 (3,744)

Taxation (227,557) – (13,172) (99,534) (7,105) (51,277) (55,478) – – – – (1,358) –

Net revenue/(expense) after taxation 2,100,625 – 578,685 756,634 197,313 459,532 9,094 (4,975) (16,931) (11,003) 59,604 93,413 (3,744)

Total return before distribution (1,285,569) – 30,065 (1,674,345) (36,095) (766,628) 1,083,613 (4,791) (19,301) (10,590) 52,393 48,128 16,243

Distributions 4 (941,176) – (586,703) (22,525) (191,287) (9,446) (1,579) – – – (62,687) (91,728) –


(2,226,745) – (556,638) (1,696,870) (227,382) (776,074) 1,082,034 (4,791) (19,301) (10,590) (10,294) (43,600) 16,243

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016Notes £ £ £ £ £ £ £ £ € US$ £ € £


227,027,165 100 32,272,882 89,231,243 13,998,901 53,391,864 21,690,713 4,343,434 4,758,171 1,443,058 3,880,831 4,861,502 481,631


592,045 – – – – – – – – – – – –


4,376,923 – 1,571,018 2,073,537 296,016 295,975 59,675 30,048 6,683 – – 62,718 –


(15,310,921) – (2,636,852) (6,113,562) (764,766) (2,550,732) (2,196,950) (143,450) (672,586) (56,088) (302,473) (101,149) –

(10,933,998) – (1,065,834) (4,040,025) (468,750) (2,254,757) (2,137,275) (113,402) (665,903) (56,088) (302,473) (38,431) –


(2,226,745) – (556,638) (1,696,870) (227,382) (776,074) 1,082,034 (4,791) (19,301) (10,590) (10,294) (43,600) 16,243


198,533 – – – 136,704 – – – – – 61,829 – –


214,657,000 100 30,650,410 83,494,348 13,439,473 50,361,033 20,635,472 4,225,241 4,072,967 1,376,380 3,629,893 4,779,471 497,874

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

22

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017Note £ £ £ £ £ £ £ £ € US$ £ € £

Assets

Fixed assets

Investments 193,230,303 - 27,784,339 71,521,435 12,727,569 50,697,753 23,318,801 - - - 3,110,099 4,382,653 305,637

Current assets

Debtors 3,208,984 - 2,446,440 372,916 54,783 213,044 34,809 833 487 1,096 32,286 60,961 218

Cash and bank balances 25,145,786 100 289,636 10,446,451 1,499,311 5,027,328 61,037 2,979,539 4,447,393 1,118,350 25,841 28,342 82,997

Total Assets 221,585,073 100 30,520,415 82,340,802 14,281,663 55,938,125 23,414,647 2,980,372 4,447,880 1,119,446 3,168,226 4,471,956 388,852

Liabilities

Creditors

Bank overdrafts (434,280) - - (375,065) - (59,215) - - - - - - -

Distributions payable (331,011) - (294,615) - (51,399) - - - - - - (35,904) -

Other creditors (2,648,239) - (2,015,041) (271,310) (30,014) (231,628) (39,980) (1,629) (2,060) (1,359) (4,333) (5,822) (609)

Total Liabilities (3,413,530) - (2,309,656) (646,375) (81,413) (290,843) (39,980) (1,629) (2,060) (1,359) (4,333) (41,726) (609)

Net assets attributable to holders of Management shares

100 100

Net assets attributable to holders of Redeemable Participating Shares

218,171,643 - 28,210,759 81,694,427 14,200,250 55,647,282 23,374,667 2,978,743 4,445,820 1,118,087 3,163,893 4,430,230 388,243

Net asset value per Participating Share 3.19 1.27 1.07 1.24 1.87 0.99 0.97 0.95 0.98 0.96 0.64

Condensed Interim Balance Sheet

As at 31 January 2017

The financial statements on pages 18 to 34 were approved by the Board of Directors on 18 May 2017 and are signed on its behalf by:

R Phillips M MaubecDirector Director

Date: 18 May 2017

The notes on pages 26 to 34 form an integral part of these financial statements.

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

23

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017Note £ £ £ £ £ £ £ £ € US$ £ € £

Assets

Fixed assets

Investments 193,230,303 - 27,784,339 71,521,435 12,727,569 50,697,753 23,318,801 - - - 3,110,099 4,382,653 305,637

Current assets

Debtors 3,208,984 - 2,446,440 372,916 54,783 213,044 34,809 833 487 1,096 32,286 60,961 218


Total Assets 221,585,073 100 30,520,415 82,340,802 14,281,663 55,938,125 23,414,647 2,980,372 4,447,880 1,119,446 3,168,226 4,471,956 388,852

Liabilities

Creditors

Bank overdrafts (434,280) - - (375,065) - (59,215) - - - - - - -

Distributions payable (331,011) - (294,615) - (51,399) - - - - - - (35,904) -

Other creditors (2,648,239) - (2,015,041) (271,310) (30,014) (231,628) (39,980) (1,629) (2,060) (1,359) (4,333) (5,822) (609)

Total Liabilities (3,413,530) - (2,309,656) (646,375) (81,413) (290,843) (39,980) (1,629) (2,060) (1,359) (4,333) (41,726) (609)


100 100


218,171,643 - 28,210,759 81,694,427 14,200,250 55,647,282 23,374,667 2,978,743 4,445,820 1,118,087 3,163,893 4,430,230 388,243


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

24

Condensed Interim Balance Sheet (continued)

The notes on pages 26 to 34 form an integral part of these financial statements.

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016Notes £ £ £ £ £ £ £ £ € US$ £ € £

Assets

Fixed assets

Investments 195,157,807 - 29,977,608 71,778,749 12,721,830 50,627,245 22,541,871 - - - 3,236,064 4,656,296 352,693

Current assets

Debtors 6,299,819 - 319,226 5,470,453 64,575 304,306 32,500 1,078 8 439 32,169 89,256 -


Total Assets 220,244,879 100 30,392,432 82,285,509 13,874,370 55,580,981 22,766,617 3,406,314 4,005,161 1,143,426 3,310,181 4,780,126 367,694

Liabilities

Creditors

Bank overdrafts - - - - - - - - - - - - -

Distributions payable (726,654) - (259,313) (325,330) (31,683) (69,437) (8,233) - - - - (38,775) -

Other creditors (325,639) - (29,030) (134,042) (20,599) (88,343) (36,522) (2,634) (2,843) (1,978) (4,739) (6,275) (561)

Total Liabilities (1,052,293) - (288,343) (459,372) (52,282) (157,780) (44,755) (2,634) (2,843) (1,978) (4,739) (45,050) (561)


100 100


219,192,486 - 30,104,089 81,826,137 13,822,088 55,423,201 22,721,862 3,403,680 4,002,318 1,141,448 3,305,442 4,735,076 367,133


As at 31 July 2016 (Audited)

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

25

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016Notes £ £ £ £ £ £ £ £ € US$ £ € £

Assets

Fixed assets

Investments 195,157,807 - 29,977,608 71,778,749 12,721,830 50,627,245 22,541,871 - - - 3,236,064 4,656,296 352,693

Current assets

Debtors 6,299,819 - 319,226 5,470,453 64,575 304,306 32,500 1,078 8 439 32,169 89,256 -


Total Assets 220,244,879 100 30,392,432 82,285,509 13,874,370 55,580,981 22,766,617 3,406,314 4,005,161 1,143,426 3,310,181 4,780,126 367,694

Liabilities

Creditors

Bank overdrafts - - - - - - - - - - - - -

Distributions payable (726,654) - (259,313) (325,330) (31,683) (69,437) (8,233) - - - - (38,775) -

Other creditors (325,639) - (29,030) (134,042) (20,599) (88,343) (36,522) (2,634) (2,843) (1,978) (4,739) (6,275) (561)

Total Liabilities (1,052,293) - (288,343) (459,372) (52,282) (157,780) (44,755) (2,634) (2,843) (1,978) (4,739) (45,050) (561)


100 100


219,192,486 - 30,104,089 81,826,137 13,822,088 55,423,201 22,721,862 3,403,680 4,002,318 1,141,448 3,305,442 4,735,076 367,133


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

26

Notes to the Condensed Interim Financial StatementsFor the period ended 31 January 2017

1. Principal activityThe Company was registered as a company with limited liability in Guernsey on 30 September 2004 and is authorised by the GFSC as a Class B Scheme under The Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended. The Company is an open-ended investment Protected Cell Company governed by the provisions of The Law and has elected to be treated as an authorised investment scheme under the Authorised Collective Investment Schemes (Class B) Rules, 2013. The Company retains the option to create new Cells with different investment objectives and terms in the future. The active Cells in issue as at 31 January 2017 were as follows:

• Kleinwort Benson Elite Multi Asset Conservative Fund• Kleinwort Benson Elite Multi Asset Balanced Fund• Kleinwort Benson Elite Sterling Fixed Income Fund• Kleinwort Benson Elite Multi Asset Growth Fund • Kleinwort Benson Elite International Equity Fund• Kleinwort Benson Elite GBP Currency Fund• Kleinwort Benson Elite EUR Currency Fund• Kleinwort Benson Elite US Dollar Currency Fund• Kleinwort Benson Elite International Bond Fund• Kleinwort Benson Elite EUR Fixed Income Fund• Kleinwort Benson Elite Trojan Fund

2. Accounting policiesThe following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Company’s financial statements:

Basis of preparationThese financial statements have been prepared in accordance with FRS 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland, and in accordance with the Statement of Recommended Practice “Financial Statements of UK Authorised Funds”, issued by the Investment Association, (previously the Investment Management Association), (the “IA SORP”) in May, 2014. The guidelines set out in FRS 104, the Financial Reporting Standard for the preparation of interim financial reports, was used in preparing these financial statements.

The same accounting policies, presentation and methods of computation are followed in these condensed financial statements as those followed in the preparation of the Company’s audited financial statements for the year ended 31 July 2016. These financial statements have been prepared under the historical cost convention, as modified for the revaluation of investments.

Any departure from the IA SORP is detailed in the notes below.

The comparative numbers used for the Condensed Interim Statement of Total Return and Condensed Interim Statements of Movement in Net Assets Attributable to Shareholders are for the Interim period ended 31 January 2016, which is considered a comparable period as defined per the United Kingdom accounting standards. The comparatives used in the condensed interim Balance Sheet are that of the previous financial year end, 31 July 2016.

Departure from IA SORPAs far as possible these accounts have been prepared in accordance with IA SORP except for the below:

• All expenses in respect of the Sterling Fixed Income Fund, Multi Asset Conservative Fund, International Bond Fund and EUR Fixed Income Fund have been charged to capital and are shown in the Statement of Total Return as ‘Other losses – expenses’. This is a departure from the IA SORP that requires expenses only to be charged against revenue.

• A comparative table in line with the IA SORP requirements have not been prepared. Due to the number of share classes per Cell, disclosing this level of disclosure would not be practical. The Directors have therefore only disclosed the NAV per Share Class in line with prior periods.

• For quoted investments, fair value is determined by reference to the bid market price ruling at the balance sheet date, or if this is not available, the latest bid price for the quoted investment. Unquoted investments are valued by the Directors based upon prices received from investment advisers, fund managers and other sources where available. Prices generally reflect the prices at which it would be possible to redeem or add to the Company’s holding excluding exit and entry charges. Net asset values reported to the market via TISE announcements are on a mid pricing basis of underlying investments, whereas financial statements that are IA SORP compliant has to be prepared on a bid basis. The Directors however do not consider the bid price adjustment to have a material impact on the total net asset value of the Company or individual cell share classes therefore no adjustments to the condensed interim financial statements were made.

Statement of Cash FlowsThe Company is exempt from preparing a Statement of Cash Flows as it meets all the criteria set out in FRS 102 section 7. Therefore these accounts do not include a Statement of Cash Flow.

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

27

Functional and presentational Currency The financial information shown in the financial statements is shown in Pounds Sterling, being the Company’s reporting and presentational currency, except for Kleinwort Benson Elite US Dollar Currency Fund which is in United States Dollar, as well as Kleinwort Benson Elite EUR Currency Fund and Kleinwort Benson Elite EUR Fixed Income Fund which are in Euro.

3. ExpensesThe Alternative Investment Fund Manager (the “AIFM”) has agreed with the Company that until further notice its investment management fee per annum in respect of each of the Share Classes attributable to the Net Asset Value of each respective Share Class will be as follows:

Kleinwort Benson Elite Sterling Fixed Income Fund‘A’ GBP Income Reporting Shares 0.75%‘B’ GBP Income Reporting Shares 1.0%

Kleinwort Benson Elite Multi Asset Balanced Fund‘A’ GBP Income Reporting Shares 1.25%‘A’ GBP Reinvest Reporting Shares 1.25%‘B’ GBP Income Reporting Shares 1.5%‘B’ GBP Accumulating Non-Reporting Shares 1.5%‘A’ EUR Accumulating Reporting Shares 1.25%‘B’ EUR Accumulating Non-Reporting Shares 1.5%‘A’ USD Accumulating Reporting Shares 1.25%‘A’ USD Accumulating Non-Reporting Shares 1.25%‘B’ USD Accumulating Non-Reporting Shares 1.5%

Kleinwort Benson Elite Multi Asset Conservative Fund‘A’ GBP Income Reporting Shares 1.25%‘B’ GBP Income Reporting Shares 1.5%‘B’ GBP Accumulating Non-Reporting Shares 1.5%‘A’ EUR Accumulating Reporting Shares 1.25%‘B’ EUR Accumulating Non-Reporting Shares 1.5%‘B’ USD Accumulating Non-Reporting Shares 1.5%

Kleinwort Benson Elite Multi Asset Growth Fund‘A’ GBP Income Reporting Shares 1.25%‘A’ GBP Reinvest Reporting Shares 1.25%‘B’ GBP Income Reporting Shares 1.5%‘B’ GBP Accumulating Non-Reporting Shares 1.5%‘B’ EUR Accumulating Non-Reporting Shares 1.5%‘A’ USD Accumulating Reporting Shares 1.25%‘B’ USD Accumulating Non-Reporting Shares 1.5%

Kleinwort Benson Elite International Equity Fund‘A’ GBP Income Reporting Shares 1.25%‘A’ GBP Reinvest Reporting Shares 1.25%‘B’ GBP Accumulating Non-Reporting Shares 1.5%

Kleinwort Benson Elite Sterling Currency FundThe AIFM has agreed with the Company that until further notice its investment management fee in respect of the Cell will be 0.05% per annum of the Net Asset Value of the Cell.

Kleinwort Benson Elite EUR Currency FundThe AIFM has agreed with the Company that until further notice its investment management fee in respect of the Cell will be 0.05% per annum of the Net Asset Value of the Cell.

Kleinwort Benson Elite US Dollar Currency FundThe AIFM has agreed with the Company that until further notice its investment management fee in respect of the Cell will be 0.05% per annum of the Net Asset Value of the Cell.

Kleinwort Benson Elite International Bond Fund‘B’ GBP Accumulating Non-Reporting Shares 1.0%

Kleinwort Benson Elite EUR Fixed Income Fund‘B’ EUR Income Reporting Shares 1.0%

Kleinwort Benson Elite Trojan FundThe AIFM has agreed with the Company that until further notice its investment management fee in respect of the Cell will be 0.3% per annum of the Net Asset Value of the Cell. These fees have been waived for 2016 and 2017.

These fees will be accrued weekly and payable monthly in arrears. The fees of the Sub-Investment Manager will be borne out of the investment management fees paid to the AIFM.

Notes to the Condensed Interim Financial Statements (continued)

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

28


3. Expenses (continued)Custodian feesIn respect of Kleinwort Benson Elite Multi Asset Conservative Fund, Kleinwort Benson Elite Multi Asset Balanced Fund, Kleinwort Benson Elite Sterling Fixed Income Fund, Kleinwort Benson Elite Multi Asset Growth Fund, Kleinwort Benson Elite International Equity Fund, Kleinwort Benson Elite International Bond Fund, Kleinwort Benson Elite EUR Fixed Income Fund, Kleinwort Benson Elite GBP Currency Fund, Kleinwort Benson Elite EUR Currency Fund and Kleinwort Benson Elite US Dollar Currency Fund, the Custodian is entitled to receive a fee of up to 0.06 percent per annum of each Cell’s Net Asset Value, subject to a minimum of £6,500 per annum, payable monthly in arrears.

At present, the Custodian intends to charge the Cell in accordance with the Net Asset Value of the Company, as set out in the following tiered structure, but subject to a minimum fee of £6,500 per annum payable by the Cell.

£0 to £400,000,000 0.035% per annum

£400,000,001 to £500,000,000 0.03% per annum

Above £500,000,000 0.025% per annum

In respect of the Kleinwort Benson Elite Trojan Fund, the Custodian is entitled to receive a fee of 0.035 percent per annum of the net asset value of each Cell subject to a minimum of £6,500 per annum.

Administrator’s feesThe Administrator has agreed with the Company that until further notice its administration fee shall be accrued weekly and payable monthly in arrears at the rate of 0.15% per annum of the Net Asset Value of the all Cells across all share classes.

In addition to this fee, the Administrator shall also be entitled to receive a fee of £50 per trading transaction.

The Administrator is entitled to be reimbursed by the Company in respect of all out of pocket expenses incurred by the Administrator in connection with the administration of the cells of the Company. Any such expenses which are not attributable to a particular cell will be apportioned between the relevant cells pro rata to their respective Net Asset Values.

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

29

This page has been left blank intentionally

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

30


TotalSterlingFixed

Income Fund

Multi AssetBalanced

Fund

Multi AssetConservative

Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR FixedIncome Fund

Trojan Fund

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017£ £ £ £ £ £ £ € US$ £ € £

Investment manager fee 1,449,994 121,286 593,566 101,607 415,594 179,264 806 1,041 288 16,474 23,528 -

Custodian fee 57,399 5,263 14,716 3,312 9,975 4,215 3,312 3,838 4,184 3,312 3,850 3,349

Other expenses

Admin fees 176,051 23,355 63,920 11,499 43,752 19,914 3,269 3,766 1,370 2,821 3,701 -

Directors fees 18,953 2,480 7,094 1,213 4,829 2,033 264 366 98 274 396 32

Audit fee 21,892 2,512 7,526 1,343 6,221 3,054 91 429 98 234 515 20

Sundry expenses 115,143 12,176 37,913 9,052 26,854 11,861 4,313 4,608 3,233 2,865 3,580 490

Total other expenses 332,039 40,523 116,453 23,107 81,656 36,862 7,937 9,169 4,799 6,194 8,192 542

Total expenses 1,839,432 167,072 724,735 128,026 507,225 220,341 12,055 14,048 9,271 25,980 35,570 3,891

TotalSterlingFixed

Income Fund

Multi AssetBalanced

Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund



Trojan Fund

2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016£ £ £ £ £ £ £ € US$ £ € £

Investment manager fee 1,370,115 123,946 590,927 96,415 367,391 153,491 1,069 1,132 354 18,376 23,891 -

Custodian fee 59,326 6,000 14,768 3,880 8,839 3,601 3,232 6,774 6,513 3,232 4,458 3,232

Other expenses

Admin fees 170,098 24,832 63,942 10,628 38,634 17,237 4,057 4,359 1,825 3,307 4,196 -

Directors fees 18,549 2,661 7,237 1,146 4,327 1,776 374 396 120 324 403 41

Audit fee 21,294 3,144 7,940 1,124 4,931 2,450 532 476 200 374 374 45

Sundry expenses 114,030 11,873 39,470 10,616 22,849 12,224 4,811 3,794 3,199 3,477 4,609 443


Total expenses 1,753,411 172,456 724,284 123,809 446,971 190,779 14,075 16,930 12,211 29,090 37,931 3,761



3. Expenses (continued)

The cell expenses of Kleinwort Benson Elite Sterling Fixed Income Fund, Kleinwort Benson Elite Multi Asset Conservative Fund, Kleinwort Benson International Bond Fund and Kleinwort Benson EUR Fixed Income Fund are charged directly to capital.

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

31

TotalSterlingFixed

Income Fund

Multi AssetBalanced

Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund



Trojan Fund

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017£ £ £ £ £ £ £ € US$ £ € £

Investment manager fee 1,449,994 121,286 593,566 101,607 415,594 179,264 806 1,041 288 16,474 23,528 -

Custodian fee 57,399 5,263 14,716 3,312 9,975 4,215 3,312 3,838 4,184 3,312 3,850 3,349

Other expenses

Admin fees 176,051 23,355 63,920 11,499 43,752 19,914 3,269 3,766 1,370 2,821 3,701 -

Directors fees 18,953 2,480 7,094 1,213 4,829 2,033 264 366 98 274 396 32

Audit fee 21,892 2,512 7,526 1,343 6,221 3,054 91 429 98 234 515 20

Sundry expenses 115,143 12,176 37,913 9,052 26,854 11,861 4,313 4,608 3,233 2,865 3,580 490


Total expenses 1,839,432 167,072 724,735 128,026 507,225 220,341 12,055 14,048 9,271 25,980 35,570 3,891

TotalSterlingFixed

Income Fund

Multi AssetBalanced

Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund



Trojan Fund

2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016£ £ £ £ £ £ £ € US$ £ € £

Investment manager fee 1,370,115 123,946 590,927 96,415 367,391 153,491 1,069 1,132 354 18,376 23,891 -

Custodian fee 59,326 6,000 14,768 3,880 8,839 3,601 3,232 6,774 6,513 3,232 4,458 3,232

Other expenses

Admin fees 170,098 24,832 63,942 10,628 38,634 17,237 4,057 4,359 1,825 3,307 4,196 -

Directors fees 18,549 2,661 7,237 1,146 4,327 1,776 374 396 120 324 403 41

Audit fee 21,294 3,144 7,940 1,124 4,931 2,450 532 476 200 374 374 45

Sundry expenses 114,030 11,873 39,470 10,616 22,849 12,224 4,811 3,794 3,199 3,477 4,609 443


Total expenses 1,753,411 172,456 724,284 123,809 446,971 190,779 14,075 16,930 12,211 29,090 37,931 3,761


3. Expenses (continued)

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

32

TotalSterling

Fixed Income Fund


Fund


Fund

Multi Asset GrowthFund


International BondFund

Euro Fixed IncomeFund

£ £ £ £ £ £ £ £

Interim dividend paid 31 December 2016 (Ex-dividend 31 October 2016) 294,995 247,501 - - - - 22,516 28,991

Interim Dividend paid 31 March 2017 (Ex dividend 31 January 2017) 458,831 248,771 - 152,185 - 1,011 25,930 35,904

753,826 496,272 - 152,185 - 1,011 48,446 64,895

Accrued income paid on shares redeemed 28,376 17,893 1,599 7,803 - 5 445 732

Equalisation received on shares issued (19,458) (7,751) (1,220) (9,988) - (226) - (317)

Dividends paid during the period 762,744 506,414 379 150,000 - 790 48,891 65,310

TotalSterling

Fixed Income Fund


Fund


Fund





£ £ £ £ £ £ £ £



899,578 582,952 - 186,371 - 1,576 61,829 91,592

Accrued income paid on shares redeemed 61,468 14,652 28,750 6,234 10,563 3 858 559

Equalisation received on shares issued (19,870) (10,901) (6,225) (1,318) (1,117) - - (423)

Dividends paid during the period 941,176 586,703 22,525 191,287 9,446 1,579 62,687 91,728

4. Income DistributionsFor the period ended 31 January 2017



Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

33

TotalSterling

Fixed Income Fund


Fund


Fund





£ £ £ £ £ £ £ £



753,826 496,272 - 152,185 - 1,011 48,446 64,895

Accrued income paid on shares redeemed 28,376 17,893 1,599 7,803 - 5 445 732

Equalisation received on shares issued (19,458) (7,751) (1,220) (9,988) - (226) - (317)

Dividends paid during the period 762,744 506,414 379 150,000 - 790 48,891 65,310

TotalSterling

Fixed Income Fund


Fund


Fund





£ £ £ £ £ £ £ £



899,578 582,952 - 186,371 - 1,576 61,829 91,592

Accrued income paid on shares redeemed 61,468 14,652 28,750 6,234 10,563 3 858 559

Equalisation received on shares issued (19,870) (10,901) (6,225) (1,318) (1,117) - - (423)

Dividends paid during the period 941,176 586,703 22,525 191,287 9,446 1,579 62,687 91,728


4. Income Distributions (continued)

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

34

5. Related party transactionsJTC Fund Solutions (Guernsey) Limited, Kleinwort Benson (Channel Islands) Investment Management Limited (the “Alternative Investment Fund Manager”), BNP Paribas Securities Services SCA – Guernsey Branch (the “Custodian”) and the Directors are regarded as related parties.

The only related party transactions are described below:

Mr A Moorshead is a Director of the Administrator. There were no fees payable to Mr A Moorshead during the period.

Directors fees of £18,953 were charged during the period (2016: £18,549) of which £Nil was due at the period end (2016: £187).

The fees and expenses payable to the AIFM, Administrator and the Custodian are explained in note 3. The balances payable at the end of the period were £237,559, £29,780 and £9,779 respectively (31 January 2016: AIFM £210,620, Administrator £24,985 and Custodian £8,129).

6. Subsequent eventsOn 27 January 2017 the following dividends were declared: Kleinwort Benson Sterling Fixed Income Fund £248,771, Kleinwort Benson Multi Asset Conservative Fund £152,185 and Kleinwort Benson EUR Fixed Income Fund €35,904. These dividends were paid on 17 March 2017.

On 27 April 2017 the following dividends were declared: Kleinwort Benson Sterling Fixed Income Fund £206,913, Kleinwort Benson International Equity Fund £172 and Kleinwort Benson EUR Fixed Income Fund €28,985. These dividends are payable on 16 June 2017.


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

35


Nominal Description Cost £ Market Value £ % of Net Assets

Government Bonds (2016: 39.70%)

1,100,000 UK Government 1.875% 22/11/2022 1,650,901 1,806,043 6.40

1,800,000 UK Government 2.25% 07/09/2023 1,731,078 1,948,500 6.91

500,000 UK Treasury 3.75% 07/09/2020 563,820 559,550 1.98

800,000 UK Treasury 4% 07/03/2022 946,024 932,880 3.31

1,550,000 UK Government 5% 07/03/2025 1,862,837 2,007,560 7.12

200,000 UK Government 4.25% 07/12/2027 251,508 254,560 0.90

1,400,000 UK Government 2.75% 07/9/2024 1,561,106 1,566,040 5.55

550,000 UK Treasury 4.25% 07/6/2032 727,529 731,170 2.59

9,294,803 9,806,303 34.76

Corporate Bonds (2016: 59.88%)

500,000 National Grid Electricity Trans. 5.875% 02/02/2024 589,475 631,300 2.25

1,000,000 Tesco Plc 5% 24/03/2023 1,068,949 1,092,900 3.87

815,000 Admiral Group 5.5% 25/07/2024 826,655 868,301 3.08

750,000 American InternationaI Group 5% 26/04/2023 798,075 858,863 3.04

1,000,000 Barclays Bank Floating 0.57188% 15/09/2017 1,000,800 1,000,450 3.55

1,000,000 BPCE 1.37125% 06/03/2017 1,004,000 1,000,550 3.55

700,000 Commonwealth Bank of Australia 1.28% 26/10/2018 703,290 704,235 2.50

350,000 Daimler AG 3.5% 06/06/2019 369,880 370,878 1.31

560,000 Experian Finance plc 3.5% 15/10/2021 587,720 611,436 2.17

1,400,000 European Investment Bank 0.608380% 17/2/2020 1,406,720 1,406,160 4.98

500,000 KFW 1.125% 23/12/2019 502,740 507,150 1.80

775,000 Morrison (W) Supermarket 3.5% 27/07/2026 706,498 808,441 2.87

1,000,000 Nordea Bank 2.125% 13/11/2019 1,009,450 1,035,550 3.67

750,000 Marks & Spencer Plc 4.75% 12/6/2025 884,918 832,463 2.95

1,000,000 Verizon Communications 4.073% 18/06/2024 1,062,800 1,112,750 3.94

850,000 William Hill 4.875% 7/9/2023 851,420 844,858 2.99

750,000 Barclays Bank Plc 14% 15/06/2020 1,023,750 924,037 3.28

1,100,000 Thames Water Utilities Cayman 4% 19/6/2025 1,257,476 1,260,764 4.47

750,000 TSB Banking Group Plc 5.75% 6/5/2026 798,525 785,175 2.78

550,000 Ladbrokes Group Finance Plc 5.125% 16/09/2022 550,000 558,800 1.98

500,000 Anheuser-Busch 9.75% 30/07/2024 764,250 762,975 2.70

17,767,391 17,978,036 63.73

Total Investments (2016: 99.58%) 27,062,194 27,784,339 98.49

Net Current Assets (2016: 0.42%) 426,420 1.51

Net Assets attributable to Participating Shareholders as at 31 January 2017 £28,210,759 100.00

Cell Portfolio of InvestmentsSterling Fixed Income Fund

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

36

Cell Portfolio of Investments (continued)Multi Asset Balanced Fund



United Kingdom (2016: 20.59%)

1,234,000 UK Government 2% 26/01/2035 2,991,216 3,303,418 4.04

11,000,000 UK Government 4.75% 07/03/2020 12,964,252 12,496,000 15.30

15,955,468 15,799,418 19.34

Corporate Bonds (2016: 0%)

United Kingdom (2016: 0%)

4,135,000 SG Issuer 9/12/2024 4,135,000 4,337,615 5.31

4,135,000 4,337,615 5.31

Funds (2016: 67.03%)


2,659,781 FIL Investment Services (UK) Limited Institutional Emerging Markets W Acc 2,650,997 3,436,437 4.21

5,100,124 FIL Investment Services 5,923,557 8,122,967 9.94

1,029,073 JP Morgan UK Ltd 1,652,691 2,146,646 2.63

2,800,874 Threadneedle UK Inc 3,611,794 4,110,282 5.03

4,134,929 Kames Capital High Yield Bond Fund 4,146,653 4,093,166 5.01

195,042 Tapestry Investment Co Pcc Ltd 14,968 24,770 0.03

18,000,660 21,934,268 26.85

Euroland (2016: 38.70%)

4,610,104 FIL Investment Management 4,568,613 5,836,394 7.14

23,446 Ishares VII Plc 3,557,883 4,011,376 4.91

2,084,984 Hermes Investment Management 2,824,111 3,628,081 4.44

1,088,231 J O Hambro Capital 3,628,162 4,444,335 5.44

11,827 Legg Mason FD Clearbridge 1,848,560 2,560,427 3.13

407,829 Pimco Global 5,554,631 5,587,257 6.84

15,988 Tokio-Marine Funds 2,749,744 3,341,538 4.09

24,731,704 29,409,408 35.99

Equities (2016: 0.10%)


561,734 Duet Real Estate Finance 269,848 40,726 0.05

269,848 40,726 0.05


Net Current Assets (2016: 12.28%) 10,172,992 12.46



Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

37

Cell Portfolio of Investments (continued)Multi Asset Conservative Fund




395,000 UK Government 2% 26/01/2035 957,480 1,057,415 7.45

1,306,000 UK Government 4.75% 07/03/2020 1,537,782 1,483,616 10.45

1,200,000 UK Government 1.75% GILT 22/07/2019 1,241,112 1,244,280 8.76

3,736,374 3,785,311 26.66



527,000 Abbey National Treasury Services Plc 2.2175% 05/04/2017 547,095 528,449 3.72

547,095 528,449 3.72

Funds (2016: 54.69%)


252,031 FIL Investment Services(UK)Limited Institutional Emerging Markets W Acc 250,882 325,624 2.29

673,570 FIL Investment Services 799,337 1,072,793 7.55

10,610 iShares IV Plc 1,065,562 1,064,236 7.49

201,404 Threadneedle UK Inc 268,719 295,561 2.08

533,502 Kames Capital High Yield Bond Fund 514,697 528,114 3.72

60,079 Tapestry Investment Company 4,259 7,630 0.05

2,903,456 3,293,958 23.18

Euroland (2016: 25.02%)

529,367 FIL Investment Management 551,067 670,179 4.72

165,775 Hermes Investment Management 224,542 288,465 2.03

132,472 J O Hambro Capital 441,662 541,016 3.81

2,800 Multi Units Luxembourg 388,398 387,492 2.73

450,000 SG Issuer 450,000 472,050 3.32

68,655 Pimco Global 935,081 940,574 6.62

1,013,400 Smith & Williamson Inc 986,159 966,277 6.80

1,305 Tokio-Marine Funds 225,525 272,749 1.92

14,500 SSGA SPDR Barclays Corporate Bond 555,855 581,049 4.09

4,758,289 5,119,851 36.04





Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

38

Cell Portfolio of Investments (continued)Multi Asset Growth Fund




305,000 Treasury 2% 26/01/2035 711,724 816,485 1.47

2,615,000 UK Government 4.75% 07/03/2020 3,076,871 2,970,639 5.34

3,788,595 3,787,124 6.81

Corporate Bonds (2016: 0%)

United Kingdom (2016: 0%)

2,850,000 SG Issuer 2,850,000 2,989,650 5.37

2,850,000 2,989,650 5.37

Funds (2016: 84.30%)


3,122,559 FIL Investment Services(UK)Limited Institutional Emerging Markets W Acc 3,113,364 4,034,346 7.25

3,565,860 FIL Investment Services 4,142,228 5,679,346 10.21

1,078,575 JP Morgan UK Ltd 1,732,191 2,249,907 4.04

1,681,412 Kames Capital High Yield Bond Fund 1,633,601 1,664,430 2.99

2,254,977 Threadneedle UK Inc 2,849,712 3,309,179 5.95

8,113 Tapestry Investment Co Pcc Ltd 683 1,030 -

13,471,779 16,938,238 30.44

Euroland (2016: 54.17%)

3,130,487 FIL Investment Management 3,102,313 3,963,197 7.12

31,818 SPRD S&P Us Div Aristocrats 1,086,267 1,171,539 2.11

2,007,138 Hermes Investment Management 2,718,668 3,492,621 6.28

32,003 iShares VII Plc 4,856,391 5,475,393 9.84

953,109 J O Hambro Capital 3,177,665 3,892,497 6.99

18,741 Legg Mason FD Clearbridge 2,929,218 4,057,239 7.29

156,884 Pimco Global 2,142,621 2,149,311 3.86

13,155 Tokio-Marine Funds 2,273,398 2,749,433 4.94

22,286,541 26,951,230 48.43

Equities (2016: 0.11%)


434,628 Duet Real Estate Finance 228,946 31,511 0.06

228,946 31,511 0.06





Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

39

Cell Portfolio of Investments (continued)International Equity Fund



Equities (2016: 99.21%)

Asia (2016: 13.94%)

580,000 China Construction Bank 257,485 345,194 1.48

8,600 Bridgestone Coporation 224,304 251,690 1.08

27,000 Mitsubishi Tanabe 409,888 430,934 1.84

11,000 Nippon Tel&Tel CP 376,493 386,897 1.66

125,000 Osaka Gas Company 380,668 372,977 1.60

8,000 Toyota Motor Coporation 307,929 372,151 1.59

91,500 CLP Holdings Limited 512,646 711,179 3.04

191,400 Mizuho Financial Group 252,265 284,403 1.22

2,721,678 3,155,425 13.51

Canada (2016: 10.82%)

15,234 National Bank of Canada 393,931 521,639 2.23

7,347 Canadian National Railways Co 288,635 405,211 1.73

10,872 Bank of Montreal 431,877 652,155 2.79

11,280 Royal Bank of Canada 396,568 643,172 2.75

8,450 George Weston Ltd 452,875 571,345 2.44

1,963,886 2,793,522 11.94

Euroland (2016: 18.80%)

8,493 Nestle SA 592,589 494,530 2.12

6,200 BASF SE 342,581 472,621 2.02

5,150 CAP Gemini 300,084 333,512 1.43

35,100 Relx NV 370,882 471,255 2.02

7,900 Vinci 415,394 440,347 1.88

5,300 Fresenius Medical Care 357,987 342,870 1.47

5,300 Thales 364,856 395,376 1.69

3,531 Allianz Ag 367,622 477,050 2.04

3,401 Muenchener Rueckversicherungs-Gesellschaft Ag 410,851 507,080 2.17

16,087 Scor Se 366,989 433,249 1.85

10,603 Amadeus IT Group 397,359 389,386 1.67

4,287,194 4,757,276 20.36


35,662 Compass Group Plc 400,923 503,547 2.15

12,211 Amdocs Limited 452,578 569,882 2.44

853,501 1,073,429 4.59

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

40

Cell Portfolio of Investments (continued)International Equity Fund (continued)



United States of America (2016: 47.41%)

880 Autozone Inc 389,222 507,001 2.17

2,974 Amgen Inc (USD) 304,544 370,444 1.58

17,048 Cisco Systems Inc 313,398 416,342 1.78

14,760 Coca-Cola Europe 396,812 405,222 1.73

11,779 Intel 278,922 344,775 1.47

17,541 Kroger Co Com 461,183 473,416 2.03

8,034 Murphy Oil Corporation 120,255 184,646 0.79

10,339 Procter & Gamble Co 690,358 719,851 3.08

6,183 Valero Energy Corp 338,485 323,205 1.38

12,765 Verizon Communications 462,813 497,318 2.13

11,508 Wells Fargo and Company 387,246 515,303 2.20

5,200 Berkshire Hathaway Class'b' 478,585 678,364 2.90

6,170 Cintas Corporation 344,922 569,478 2.44

6,071 Nextera Energy Inc 421,347 596,990 2.55

3,385 General Dynamics Corporation 311,056 487,006 2.08

4,728 International Flavors & Fragrances 345,783 440,387 1.88

8,916 Jack Henry & Associates Inc 383,041 636,189 2.72

2,204 Lockheed Martin Corporation 274,126 440,283 1.88

4,159 Teleflex Inc 357,957 554,395 2.37

4,721 United Technologies Corp 340,110 411,553 1.76

10,331 Waste Management Inc 327,878 570,787 2.44

4,710 Smucker(J.M.) Co 343,650 508,568 2.18

6,525 Dr Pepper Snapple Group Inc 315,674 472,947 2.02

8,387,367 11,124,470 47.56

Australia (2016: 1.61%)

33,000 Sonic Healthcare 393,162 414,679 1.77

393,162 414,679 1.77




Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

41

Cell Portfolio of Investments (continued)International Bond Fund





200,000 Old Mutual Plc 8% 03/06/2021 219,340 231,880 7.33

250,000 Barclays Bank Floating 0.57188% 15/09/2017 250,175 250,113 7.91

200,000 WPP Finance 4.75% 21/11/2021 143,835 171,703 5.43

250,000 GE Capital UK Funding 4.375% 31/07/2019 273,958 271,363 8.58

887,308 925,059 29.25

Euroland (2016: 15.46%)

170,000 Anheuser-Busch Inbev N.V./S.A 2.75% 17/3/2036 169,185 154,082 4.87

200,000 Turkiye Garanti Bankasi 3.375% 8/7/2019 172,183 174,917 5.53

310,000 Landwirtschaftliche Rentenbank 3/6/2021 248,824 246,526 7.79

200,000 BMW Finance NV 1.75% 20/11/2017 199,150 201,760 6.38

135,000 European Investment Bank 4.5% 07/06/2029 156,618 171,470 5.42

945,960 948,755 29.99



200,000 UK Government 5% 07/03/2025 240,366 259,040 8.19

120,000 UK Government 1.875% 22/11/2022 180,098 197,024 6.23

245,000 UK Government 2.25% 07/09/2023 236,589 265,213 8.38

285,000 UK Government 2.75% 07/9/2024 298,084 318,800 10.08

955,137 1,040,077 32.88


250,000 USA Treasury 1.75% 15/05/2022 152,617 196,208 6.20

152,617 196,208 6.20




Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

42

Cell Portfolio of Investments (continued)Euro Fixed Income Fund


Nominal Description Cost € Market Value € % of Net Assets


Euroland (2016: 56.75%)

250,000 Societe Generale 9.375% Perpetual 302,500 298,787 6.74

200,000 Turkiye Garanti Bankasi 3.375% 8/7/2019 202,680 203,630 4.60

200,000 Assic Generali Spa 5.125% 16/09/2024 250,400 255,010 5.76

200,000 British Telecommunications Plc 1.75% 10/3/2026 201,652 202,640 4.57

150,000 ITV Plc 2.125% 21/09/2022 147,750 155,175 3.50

150,000 SPP Infrastructure Financing 2.625% 12/2/2025 157,772 160,380 3.62

190,000 Tyco International Finance 1.375% 25/02/2025 188,366 182,438 4.12

200,000 Total Capital Intl Sa 2.5% Gtd Nts 25/03/2026 198,266 226,310 5.11

100,000 Pernod Ricard 2% 22/06/2020 99,598 105,835 2.39

200,000 Anheuser-Busch 2.875% 25/09/2024 231,910 228,740 5.16

350,000 European Investment Bank 3% 14/10/2033 419,825 449,663 10.15

2,400,719 2,468,608 55.72


200,000 Bank of America Corporation 4.625% 14/09/2018 215,300 215,690 4.87

100,000 American Express Company 22/05/18 89,752 92,921 2.10

310,000 Bank of America 1.3171% 22/03/2018 292,946 289,160 6.53

597,998 597,771 13.50


Euroland (2016: 23.30%)

210,000 Spain Government 4.65% 30/07/2025 239,008 264,212 5.96

300,000 Republic of Italy 4.5% 01/03/2024 336,117 355,740 8.03

300,000 Germany (Federal Republic) 3.5% 04/07/2019 347,382 330,855 7.47

922,507 950,807 21.46


400,000 USA Treasury 1.75% 15/05/2022 309,984 365,467 8.25

309,984 365,467 8.25




Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

43

Cell Portfolio of Investments (continued)Global Trojan Fund



Funds (2016: 96.07%)


2,461 EEA Fund Management Guernsey Ltd 383,739 305,637 78.72

383,739 305,637 78.72

Total Investments (2016: 96.07%) 383,739 305,637 78.72


Net Assets attributable to Participating Shareholders as at 30 January 2017 £388,243 100.00

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

44

Cell Summary of Material Portfolio ChangesSterling Fixed Income Fund

Disposals Proceeds £

Government Bonds

UK Government 4.25% 07/12/2027 1,597,020

UK Government 2.25% 07/09/2023 1,296,384

2,893,404

Corporate Bonds

Santander UK Plc Float 01/20/2017 1,500,070

GKN plc 5.375% 19/09/2022 652,674

EDP Finance B 8.625% 04/01/2024 1,027,500

Lloyds Banking Grp 7.625% 27/06/2023 976,220

4,156,464

Total disposals in the period 7,049,868

Acquisitions Cost £

Government Bonds

UK Government 2.75% 07/09/2024 589,255

UK Treasury 4.25% 07/6/2032 727,529

1,316,784

Corporate Bonds

European Investment Bank 0.608380% 17/2/2020 1,406,720

Marks & Spencer Plc 4.75% 12/6/2025 884,918

Thames Water Utilities Cayman 4% 19/6/2025 1,257,476

TSB Banking Group Plc 5.75% 6/5/2026 798,525

4,347,639

Total acquisitions in the period 5,664,423

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

45

Cell Summary of Material Portfolio Changes (continued)Multi Asset Balanced Fund


Government Bonds

UK Government 4.75% 07/03/2020 636,729

UK Government 2% 26/01/2035 198,210

834,939

Funds

GO UCITS ETF Solutions 4,287,327

Legg Mason FD Clearbridge 2,507,935

FIL Investment Services 1,967,115

FIL Investment Management 1,086,516

JP Morgan UK Ltd 657,881

iShares VII Plc 459,175

Tokio-Marine Funds 167,322

Threadneedle UK Inc 164,429

11,297,700

Top 10 disposals in the period 12,132,639


Corporate Bonds

SG Issuer 4,135,000

4,135,000

Funds

Ishares VII Plc 3,973,673

Fil Investment Management Lux American Growth GBP Acc 24,198

3,997,871


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

46

Cell Summary of Material Portfolio Changes (continued)Multi Asset Conservative Fund


Government Bonds

UK Government 4.75% 07/03/2020 274,589

274,589

Corporate Bonds

National Australia Bank 0.8125% 12/08/2016 547,000

547,000

Funds

FIL Investment Services 551,631

GO UCITS ETF Solutions 452,246

iShares FTSE 388,706

FIL Investment Management 95,817

J O Hambro Capital 80,083

Hermes Investment Management 53,960


1,676,277

Total disposals in the period 2,497,866


Corporate Bonds

SG Issuer 450,000

450,000

Funds

Smith & Williamson Inc 572,946

SSGA SPDR ETFS 555,855

Multi Units Luxembourg 388,398


Threadneedle UK Inc 4,857

Fil Inv Services(UK)Ltd Institutional Emerging Markets W Acc Nav 1,977

1,770,793


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

47

Cell Summary of Material Portfolio Changes (continued)Multi Asset Growth Fund


Funds

Wells Fargo US Growth 4,054,038

Powershares Global 2,860,197

GO UCITS ETF Solutions 2,853,459

iShares VII Plc 633,714

FIL Investment Services 600,966

Legg Mason FD Clearbridge 565,050

Hermes Investment Management 403,405



JP Morgan UK Ltd 282,338

12,923,612



Corporate Bonds

SG Issuer 2,850,000

2,850,000

Funds

iShares VII Plc 5,402,684

SPRD S&P Us Div Aristocrats 1,086,267

Pimco Global 187,279

Kames Capital High Yield Bond Fund 148,243

FIL Investment Services(UK)Limited Institutional Emerging Markets W Acc 26,082

6,850,555


Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

48

Cell Summary of Material Portfolio Changes (continued)International Equity Fund


Equities

Service Corporation International 452,938

British American Tobacco Plc 448,779

Asahi Kasei Corporation 433,492

Skandinaviska Enskilda Banken 408,535

Woodside Petroleum NPV 377,676

Novartis Ag 362,428

Canon Inc 362,375

Nordea Bank AB 337,839

Ericsson LM 247,536

Wells Fargo and Company 214,621

3,646,219



Equities

Procter & Gamble Co 690,358

Mitsubishi Tanabe 409,888

Amadeus IT Group 397,359

Sonic Healthcare 393,162

Osaka Gas Company 380,668

Nippon Tel&Tel CP 376,493

Thales 364,856

Fresenius Medical Care 357,987

Valero Energy Corp 338,485

Coca-Cola Europe 128,005

3,837,261

Top 10 acquisitions in the period 3,837,261

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

49

Cell Summary of Material Portfolio Changes (continued)International Bond Fund


Corporate Bonds

Landwirtschaftliche Rentenbank 3/6/2021 248,824

Turkiye Garanti Bankasi 3.375% 8/7/2019 172,183

Anheuser-Busch Inbev N.V./S.A 2.75% 17/3/2036 169,185

590,192

Total acquisitions in the period 590,192


Government Bonds

UK Government 2.25% 07/09/2023 61,772

USA Treasury 1.75% 15/05/2022 38,374

100,146

Corporate Bonds

Santander UK Plc Float 01/20/2017 250,000

JP Morgan Chase & Co 4.4% 22/07/2020 185,578

GDF Suez 6.125% 11/02/2021 122,420

557,998

Total disposals in the period 658,144

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

50

Cell Summary of Material Portfolio Changes (continued)EUR Fixed Income Fund

Acquisitions Cost €

Corporate Bonds

Turkiye Garanti Bankasi 3.375% 8/7/2019 202,680

American Express Company 22/05/18 89,752

292,432

Total acquisitions in the period 292,432

Disposals Proceeds €

Government Bonds

Spain Government 2.75% 30/04/2019 106,821

106,821

Corporate Bonds

GE Capital European Funding 4.125% 27/10/2016 200,000

Siemens Financier 5.25% 09/2066 100,000

300,000

Total disposals in the period 406,821

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

51

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

52

Inte

rim R

epor

t & U

naud

ited

Con

den

sed

Fina

ncia

l Sta

tem

ents

53

Contact details

For details of our services and general information about Kleinwort Benson please visit www.kleinwortbenson.com.

kleinwort benson elite pcc limited › fileadmin › user... · kleinwort benson elite pcc limited...

Documents