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WAVERTON INVESTMENT FUNDS PLC

HALF YEARLY

FINANCIAL STATEMENTS

Unaudited For the half financial year ended 31 October 2015

(Waverton Investment Funds Plc is an investment company with variable capital incorporated with limited liability in Ireland under registration number 383680

and established as an umbrella fund with segregated liability between sub-funds)

Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)

1

Table of Contents

Background of the Company 2 Investment Objectives, Investment Manager‟s Reports, Top 5 Investments, Portfolio Analysis and Portfolio Investments

Waverton Asia Pacific Fund 3

Waverton Global Equity Fund 8 Waverton UK Fund 14

Waverton European Fund 20

Waverton Sterling Bond Fund 21

Waverton Equity Fund 27

Waverton Global Bond Fund 31 Waverton Global Equity Wealth Creation Fund 37

Waverton Alternatives Fund 46

Waverton Cautious Income Fund 50

Statement of Financial Position 56 Statements of Comprehensive Income 60

Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares 64

Notes to the Financial Statements 68

Statements of Changes in Composition of Portfolio 110

Directors and Other Information 134


Background of the Company

2

Waverton Investment Funds Plc (the “Company”) is an open-ended investment company with variable capital, incorporated

on 25 March 2004 in Ireland as a public limited company pursuant to the Companies Act 2014 and authorised by Central

Bank of Ireland (the “Central Bank”) as an investment company pursuant to the European Communities (Undertakings for

Collective Investment in Transferable Securities) Regulations, 2011, as amended (the “Regulations”).

Except where the context otherwise requires, defined terms shall bear the meaning given to them in the prospectus dated 26

September 2014, which may be amended from time to time (the “Prospectus”).

The Company is an umbrella type open-ended investment company with segregated liability between sub-funds. The

Company currently has ten sub-funds as follows (individually a “Fund”, collectively the “Funds”):

Sub Fund Launched Operations

Waverton Asia Pacific Fund (“Asia Pacific Fund”) 1 November 2005

Waverton Global Equity Fund (“Global Equity Fund”) 1 April 2007

Waverton UK Fund (“UK Fund”) 1 April 2007

Waverton European Fund (“European Fund”)1 1 April 2007

Waverton Sterling Bond Fund (“Sterling Bond Fund”) 12 January 2010

Waverton Equity Fund (“Equity Fund”) 12 January 2010

Waverton Global Bond Fund (“Global Bond Fund”) 12 January 2010

Waverton Global Equity Wealth Creation Fund (“Global Equity Wealth Creation Fund”) 6 March 2014 Waverton Alternatives Fund (“Alternatives Fund”) 9 March 2014 Waverton Cautious Income Fund (“Cautious Income Fund”) 6 October 2014

As at 31 October 2015, one or more of the following classes of shares are available in respect of the Funds: Class A Euro,

Class A Euro Acc, Class A US$, Class A Stg£, Class B Euro, Class B US$, Class B Stg£, Class P Stg£, Class I Euro Acc,

Class I US$, Class I Stg£ Class A US$ Institutional, Class B US$ Institutional, Class M Euro and Class M Stg£ in

accordance with Schedule IV of the Prospectus. Further classes of shares may be issued in accordance with the requirements

of the Central Bank.

Citibank Europe plc (the “Administrator”) determines the net asset value per share of each class of each fund on each

Dealing Day. The valuation point is 12 noon (Irish time) on each dealing day (except for the last dealing day of each calendar

quarter when assets are valued at the close of the regular trading session of the London Stock Exchange and securities traded

on the London Stock Exchange will be valued using post-auction prices, or such other time as the directors of the company

may decide and notify to its shareholders).

Other information

Annual report and audited financial statements and unaudited half-yearly financial statements are available to Shareholders at

the registered office of the Company and are sent to shareholders at their registered addresses by post (or where consented to

by the relevant shareholder, shall be sent electronically to such shareholder).

1On 30 June 2015, the Waverton European Fund was merged with the Odey European Focus Fund and thereafter it ceased to

be a sub-fund of the Waverton Investment Funds plc.


Asia Pacific Fund

3

The investment objective of the Asia Pacific Fund (the “Fund”) is to achieve capital growth and generate an income through

diversified investment in equities of Asian Pacific companies (excluding the equities of Japanese companies).

Investments may be made in ordinary shares (including ADRs, EDRs and GDRs), preferred shares and up to 25% of the total

assets of the Fund may be invested in debt securities convertible into shares. Investments will not be concentrated in any one

Asian-Pacific country or in any one industrial or economic sector. The securities in which the Fund may invest will be quoted

or traded on one of the regulated markets set out in Schedule I of the Prospectus. The Fund may not invest more than 10% of

its net asset value in collective investment schemes generally, of which up to 5% of its net asset value may be invested in

collective investment schemes investing in Asian-Pacific equities. These collective investment schemes will be established as

UCITS. The Fund may utilise any of the financial derivative instruments described in the Prospectus for efficient portfolio

management purposes. Furthermore, the Fund may hold ancillary liquid assets.

The base currency of the Fund is U.S. Dollar.

The performance benchmark against which the Fund‟s performance is measured is the MSCI AC Asia Pacific Ex Japan

Index (total return)*.

Class A US$, Class A Euro and Class A Stg£ of the Fund launched on 1 November 2005. Class M Stg£ launched on 2

October 2014. Class B Euro is also available.

Investment Manager’s Report

Performance

The Fund returned -11.19% over the 6 month period ending 31 Oct 2015, outperforming the MSCI AC Asia ex Japan Index

(total return) benchmark by 4.82% (in geometric terms), which returned -16.01%. The largest negative contributions came

from Asia Satellite (-2.1%), China Meidong (-1.6%), Osim (-1.5%) and Kunlun Energy (-1.2%). The largest contributors to

performance were Peak Sport (+0.8%), Netease (+0.8%) BYD (+0.6%) and Hyundai (+0.3%).

Review

The period was a dramatic time in Asian equity markets, with the benchmark falling considerably by over 15%. The sell-off

was a result of the Peoples Bank of China unexpectedly devaluing their currency, an effective stimulus to the economy which

was interpreted as a signal that the macroeconomic environment was worsening.

An examination of the reasons behind the extreme negative contribution from Asia Satellite is appropriate: The principle

reason, we believe, for the significant sell-off in the market is due to the forced selling of Aberdeen Asset Management who

experienced significant redemptions in their funds at a time when liquidity in the stock was falling dramatically. The

investment thesis was that after the special dividend the stock would move from a price to earnings multiple of 20x (pre

dividend), down to a price to earnings ratio of 12x and then rerate up to circa 16x. What occurred was the stock further

derated down from 12x to its current level of 8x. Other than the forced selling by Aberdeen, a further reason for the derating

of the name was a poor set of results, due to a weak pricing environment generally in the satellite industry. The poor

performance from China Meidong was another case of a stock derating sharply, it sells luxury cars in China, which is judged

as vulnerable to a China macroeconomic downturn. We have been selling down our holding in Asia Satellite, but continue to

hold China Meidong.

Kunlun energy‟s share prices fell as a result of the decline in the oil price, which disrupted the economics of its LNG

distribution business which requires an oil price above $50 barrel in order for China‟s diesel engine truck drivers to justify

the conversion of their engines to take LNG.

As value investors, we would hope that in the majority of cases, the businesses we have invested in are strong enough, such

that declines in the share prices of those holdings, represent a buying opportunity, rather than a change in the fortunes of the

businesses.

In this regard we have sold or are selling some of the largest positive contributors to the fund after their prices reached their

exit multiples, such as Peak Sports, BYD and Hyundai.


Asia Pacific Fund (continued)

4

Investment Manager’s Report (continued)

Outlook

Whilst the outlook in China is still uncertain, the fund has been marginally repositioned to take advantage of any rebound in

sentiment towards the region, through the accumulation of an 8% position in a collection of Chinese banks. In other areas, the

fund remains similarly positioned to the previous periods, with a large underweight position in the commodities sector and a

bias towards high dividend paying, defensive stocks.

The largest macro risk we see a the moment is a possible sharp decline in the currencies of ASEAN (South East Asian)

countries when the US rate rises start and /or an inflation shock in the US resulting in a dramatic increase in US rate

expectations.

W Hanbury

November 2015

*References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its

benchmark.

Asia Pacific Fund Top 5 Investments as at 31 October 2015

Shares/Par Security Description Fair Value USD % Net Assets

506,380 CK Hutchison Holdings Ltd. 6,958,843 7.63%

48,950 NetEase, Inc. 6,894,118 7.56%

2,031,288 Great Eagle Holdings Ltd. 6,631,365 7.27%

228,000 Melco Crown Entertainment Ltd. 4,195,200 4.60%

137,800 JD.com Inc. 3,814,304 4.18%

28,493,830 31.24%

Asia Pacific Fund Portfolio Analysis as at 31 October 2015 Fair Value USD % Total Assets

Transferable securities and money market instruments admitted to official

stock exchanges or traded on a regulated market 93,050,110 93.72%

Collective Investment Schemes 397,490 0.40%

OTC financial derivative instruments 18 0.00%

Cash 5,669,206 5.71%

Other assets 170,898 0.17%

Total assets 99,287,722 100.00%



5

Portfolio Investments as at 31 October 2015

Shares/Par Security description

Fair Value

USD % Net Assets

Investment Fund

Equity Fund (2015*: 2.05%, $2,068,320)

59,336 PXP Vietnam Fund Ltd. 397,490 0.44%

Total Investment Fund (Cost $372,021) 397,490 0.44%

Equity Investment

Apparel (2015*: -%, $-)

7,390,172 Peak Sport Products Co., Ltd. 2,221,884 2.44%

Auto Manufacturers (2015*: 2.66%, $2,679,418)

126,000 Qingling Motors Co., Ltd. 40,321 0.04%

Banks (2015*: 4.82%, $4,860,910)

4,765,000 Agricultural Bank of China Ltd. 1,955,244 2.14%

4,170,000 Bank of China Ltd. 1,969,373 2.16%

2,684,000 China Construction Bank Corp. 1,946,389 2.13%

3,018,000 Industrial & Commercial Bank of China Ltd. 1,919,893 2.10%

7,790,899 8.53%

Biotechnology (2015*: -%, $-)

2,667,200 Cordlife Group Ltd. 2,571,577 2.82%

Distribution/Wholesale (2015*: -%, $-)

121,200 Jardine Cycle & Carriage Ltd. 2,818,366 3.09%

Healthcare-Services (2015*: -%, $-)

2,710,100 Bangkok Dusit Medical Services PCL 1,448,004 1.59%

Holding Companies-Diversified (2015*: 12.24%, $12,353,058)

2,173,300 Boustead Singapore Ltd. 1,482,290 1.63%

90,200 Jardine Matheson Holdings Ltd. 2,713,216 2.97%

7,073,600 Jasmine Broadband Internet Infrastructure Fund 2,048,842 2.25%

6,550,000 Noble Group Ltd. 2,362,342 2.59%

8,606,690 9.44%

Internet (2015*: 5.39%, $5,436,786)

137,800 JD.com Inc. 3,814,304 4.18%

48,950 NetEase, Inc. 6,894,118 7.56%

10,708,422 11.74%



6

Portfolio Investments as at 31 October 2015 (continued)


Fair Value

USD % Net Assets

Equity Investment (continued)

Investment Companies (2015*: -%, S-)

3,232,200 Asian Pay Television Trust 1,823,625 2.00%

Lodging (2015*: -%, $-)

228,000 Melco Crown Entertainment Ltd. 4,195,200 4.60%

1,590,000 SJM Holdings Ltd. 1,325,380 1.45%

1,256,800 Wynn Macau Ltd. 1,732,002 1.90%

7,252,582 7.95%

Oil & Gas Services (2015*: 6.76%, $6,818,193)

3,715,000 Kunlun Energy Co., Ltd. 3,029,610 3.32%

120,073 Reliance Industries Ltd. 3,440,091 3.77%

6,469,701 7.09%

Real Estate (2015*: 9.95%, $10,036,614)

2,031,288 Great Eagle Holdings Ltd. 6,631,365 7.27%

Retail (2015*: 17.16%, $17,320,380)

17,850,000 China Meidong Auto Holdings Ltd. 2,119,029 2.32%

506,380 CK Hutchison Holdings Ltd. 6,958,843 7.63%

2,263,517 OSIM International Ltd. 2,198,532 2.41%

1,991,220 Robinsons Retail Holdings, Inc. 3,271,205 3.59%

14,547,609 15.96%

Semiconductors (2015*: 5.15%, $5,205,854)

229,448 Kulicke & Soffa Industries Inc. 2,425,265 2.66%

2,523 Samsung Electronics Co., Ltd. 3,036,719 3.33%

5,461,984 5.99%

Technology Hardware & Equipment (2015*: 8.86%, $8,940,392)

2,550,000 Hana Microelectronics PCL 2,473,945 2.71%

Telecommunication (2015*: 6.12%, $6,174,776)

2,151,700 Asia Satellite Telecommunications Holdings Ltd. 3,198,491 3.51%

14,300,000 Jasmine International PCL 2,251,930 2.47%

278,500 VTech Holdings Ltd. 3,378,035 3.70%

8,828,456 9.68%

Total Equity Investment (Cost $101,764,995) 89,695,430 98.34%



7



Fair Value

USD % Net Assets

Preferred Shares

Semiconductors (2015*: 3.05%, $3,081,173)

3,200 Samsung Electronics Co., Ltd. 3,354,680 3.68%

Total Preferred Shares (Cost $3,052,620) 3,354,680 3.68%

Total financial assets at fair value through profit or loss (Cost

$105,189,636) 93,447,600 102.46%

Unrealised Appreciation on Forward Currency Contracts (2015*:-, $-)

Currency Principal

Currency Principal Current Settlement Unrealised

Appreciation

USD

% Net Assets

Purchased Amount Sold Amount Fair Value Date

USD 5,216 SGD (5,198) 7,279 2-Nov-15 18 0.00%

Total Unrealised Appreciation on Forward Currency Contracts

18 0.00%

Other Liabilities in Excess of other Assets (2,239,512) (2.46%)

Net Assets Attributable to Holder of Redeemable Shares 91,208,106 100.00%

*Comparatives as at 30 April 2015.


Global Equity Fund

8

The investment objective of the Global Equity Fund (the “Fund”) is to achieve capital growth through investment in a

focussed list of equities on a global basis.

At least two thirds of the total assets of the Fund (without taking into account ancillary liquid assets) is invested in ordinary

shares (including ADRs, EDRs and GDRs) and preferred shares worldwide. The Fund may invest up to one third of its total

assets (excluding ancillary liquid assets) in debt securities convertible into shares (not exceeding 25% of the total assets of

the Fund), and in fixed income securities, such as OECD government or supranational debt securities, corporate bonds,

bankers‟ acceptances and commercial paper rated investment grade or better or deemed by Waverton Investment

Management Limited (the “Investment Manager”) to have an equivalent rating. Not more than 20% of the net asset value of

the Fund will be invested in securities of issuers established in emerging market countries. The Investment Manager will not

concentrate investments in any one country or region or in any one industrial or economic sector. The Fund may utilise any

of the financial derivative instruments described in the Prospectus for efficient portfolio management purposes. The

securities in which the Fund may invest will be quoted or traded on one of the regulated markets set out in Schedule I of the

Prospectus. The Fund may not invest more than 10% of its net asset value in collective investment schemes generally of

which up to 5% of its net asset value may be invested in collective investment schemes investing in equity markets globally.

Those collective investment schemes which invest in equity markets globally will be established as UCITS. Furthermore, the

Fund may hold ancillary liquid assets.

The base currency of the Fund is Sterling.

The performance benchmark against which the Fund‟s performance is measured is the MSCI World Free Net Total Return

Index*.

Class A Stg£ and Class A US$ Shares of the Fund launched on 30 March 2007. Class B US$ Shares are also available.


Performance The Fund fell -8.5% over the six months versus the MSCI World Free Net Total Return Index which fell -3.9%. Having

underperformed as the market gradually fell in the three months to the end of July, the fund made back this underperformance

during the period of market volatility in August, only to underperform in the strong October rally. The fund suffered from

poor stock selection, especially in the industrials sector where attractive valuations failed to protect against negative

momentum.

Review The MSCI World Free Net Total Return Index fell -3.9% over the six months in Sterling terms. Having peaked in late May,

the index sold off sharply in August before recovering the majority of those losses in October.

The US was the best performing major market, with the S&P 500 falling -1% over the six month period in Sterling terms.

The US Dollar continued to be strong especially against emerging market currencies. Over the six month period, it

appreciated 28% against the Brazilian Real, and 23% against the Russian Rouble. Economic data from the US continues to

surprise on the upside; the futures market now suggests that an increase in the Fed Funds rates will occur within the next six

months. Over the six month period, the MSCI Emerging Markets index fell 20% in sterling terms as stocks in the materials

and commodities sectors underperformed and emerging market currencies suffered steep declines.

On a sector basis, the consumer staples sector was the best performing sector over the six months period, closely followed by

the technology sector. Large consumer technology stocks enjoyed strong periods of performance, with Amazon returning

47% over the period in sterling terms as sales and earnings exceeded analysts‟ estimates. Energy was the worst performing

sector, falling -19% over the six month period as crude oil prices declined to test new lows in August. The materials sector

also performed poorly as commodity prices declined.


Global Equity Fund (continued)

9


Review (continued)

Stocks which contributed positively to performance included:

Tech Data, the technology distributor, rose 28% over the six months in sterling terms following positive Q3 results. The

company is focusing on margins and cash generation and has exited businesses in Latin America where it could not generate

adequate returns. We believe that the valuation pay-off remains attractive, and that the focus of management on cash

generation is an appropriate wealth creating strategy given that this is a mature business in our Life Cycle framework.

Bechtle, the German IT consulting and services company rose 27% in sterling terms over the period. The company is in the

Compounding part of the Life Cycle, we see good long-term growth potential with management‟s market share gain strategy

an opportunity to create significant value for shareholders.

IT Holdings Corp, a Japanese IT services business, rose 25% over the six months in sterling terms. The company covers a

broad range of IT systems integration, outsourcing and data services. It is a mature business, and our original thesis was

based on management‟s focus on generating cost and revenue synergies across its 50+ businesses, aiming to improve cash -

flow return on investment and enable higher growth. Management‟s recent announcement of an additional 3 year plan

including more aggressive restructuring and integration of business units has made this investment opportunity even more

attractive.

Detractors from performance included:

Cummins, which designs and manufactures large engines for use in transport and power generation, declined 24% over the

period in sterling terms following disappointing results which reported a slowdown in growth. We reduced our position prior

to the announcement of Q3 results over concerns about the company‟s prospects. The company is the leading high power

diesel engine manufacturer globally. In time, engines wear out and new environmental legislation on emissions is also

driving an upgrade cycle. The company has been hit by the slowdown in emerging markets and the pull back in oil prices

which in the short term reduces the incentive to upgrade to more fuel efficient engines.

International Paper, the US listed paper and packaging company, declined 20% over the six month period in sterling terms.

The fall in the share price is the result of the recent weakness in paper, and in particular, container board prices. However, we

still believe the long-term prospects for the company are attractive, with management pursuing an appropriate wealth creation

strategy for their business; focussing on generating cash, shrinking unproductive assets and improving efficiency.

Union Pacific, the North American railroad operator, declined 15% over the period in sterling terms. We had previously

reduced our position in August 2014 as the valuation pay-off was deteriorating. The company has been hit by a structural

decline in coal volumes shipped due to lower demand for coal in electricity generation in the USA. We think this will be a 3-

4 year revenue headwind, but having reviewed our position we have now added to it again on valuation grounds. We believe

the value proposition to customers remains intact and that this continues to be reflected in solid core pricing gains.

Outlook

The objective of the Fund is to achieve capital growth through investment in a focussed list of equities on a global basis.

While we are aware of the country and sector breakdown of the benchmark index, this does not dictate the construction of the

Fund and our asset allocation will tend to differ significantly from the benchmark, reflecting instead our best global ideas at

the time. Our disciplined investment process aims to outperform using a stock selection approach to identify stocks that trade

at a discount to intrinsic value. The sterling denominated MSCI World Free Net Total Return Index is the benchmark

comparison against which the performance of the Fund is measured.



10


Outlook (continued) All the holdings in the portfolio continue to pursue wealth creating business models and in cases of underperformance, have

improved in value relative to our calculations of intrinsic value. We believe that the effect of momentum on the returns in the

market continues to be strongly influenced by the loose monetary policy that is being pursued by central banks globally. As

the US economy continues to improve we expect that monetary policy will normalise over time and valuation will again

become more relevant with markets less driven by momentum as has been the case over this period.

We remain focused on identifying wealth creating companies that are attractively valued and where there is a margin of

safety in our analysis. It is our belief that successful identification of these businesses will generate above market returns

with below market risk over the long term for our clients.

W Kenney

November 2015

*References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its

benchmark.

Global Equity Fund Top 5 Investments as at 31 October 2015

Shares/Par Security Description Fair Value GBP % Net Assets

51,200 Union Pacific Corp. 3,019,025 5.75%

31,530 Berkshire Hathaway, Inc. 2,833,139 5.40%

286,045 Svenska Handelsbanken AB 2,543,342 4.85%

62,800 Toyota Motor Corp. 2,501,506 4.77%

67,200 Wells Fargo & Corp. 2,411,196 4.59%

13,308,208 25.36%

Global Equity Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP % Total Assets



Cash 2,178,428 4.13%


Total assets 52,759,173 100.00%



11



Fair Value

GBP % Net Assets

Equity Investment

Apparel (2015*: 2.57%, £1,595,054)

31,180 VF Corp. 1,383,679 2.64%

Auto Manufacturers (2015*: 5.01%, £3,110,382)

62,800 Toyota Motor Corp. 2,501,506 4.77%

Banks (2015*: 9.16%, £5,684,409)

286,045 Svenska Handelsbanken AB 2,543,342 4.85%

67,200 Wells Fargo & Corp. 2,411,196 4.59%

4,954,538 9.44%

Building Materials (2015*: 4.22%, £2,618,294)

127,531 CRH Plc 2,264,313 4.32%

Computers (2015*: 1.98%, £1,228,344)

13,680 Apple, Inc. 1,074,220 2.05%

99,000 Convergys Corp. 1,693,217 3.23%

2,767,437 5.28%

Data Processing & Outsourced (2015*: 3.12%, £1,935,080)

75,418 DH Corp. 1,307,276 2.49%

Electrical Components & Equipment (2015*: 3.03%, £1,880,067)

46,503 Legrand SA 1,658,358 3.16%

Electronics (2015*: 7.58%, £4,705,903)

78,676 Avnet, Inc. 2,297,536 4.38%

32,350 Tech Data Corp. 1,516,960 2.89%

3,814,496 7.27%

Forest Products & Paper (2015*: 3.87%, £2,401,029)

63,000 International Paper Corp. 1,763,819 3.36%

Healthcare-Products (2015*: 2.37%, £1,473,857)

87,800 Nihon Kohden Corp. 1,123,514 2.14%



12



Fair Value

GBP % Net Assets


Insurance (2015*: 7.91%, £4,914,650)

114,900 Admiral Group Plc 1,861,380 3.55%

31,530 Berkshire Hathaway, Inc. 2,833,139 5.40%

4,694,519 8.95%

Internet (2015*: -%, £-)

39,950 CDW Corp/DE 1,164,037 2.22%

IT Consulting & Other Services (2015*: 3.29%, £2,042,148)

32,300 Bechtle AG 1,944,844 3.71%

71,000 IT Holdings Corp. 1,153,910 2.20%

3,098,754 5.91%

Machinery-Diversified (2015*: 5.43%, £3,368,087)

28,330 Cummins, Inc. 1,907,863 3.64%

Media (2015*: 1.60%, £994,756)

453,772 Entertainment One Ltd. 1,004,197 1.91%

Oil & Gas Services (2015*: 2.79%, £1,728,324)

58,900 Canadian Natural Resources Ltd. 884,734 1.69%

37,150 Helmerich & Payne, Inc. 1,336,848 2.55%

2,221,582 4.23%

Pharmaceuticals (2015*: -%, £-)

17,500 Novartis AG 1,040,543 1.98%

6,000 Roche Holding AG 1,063,549 2.03%

2,104,092 4.01%

Retail (2015*: -%, £ -)

23,650 Casey's General Stores Inc. 1,642,310 3.13%

Semiconductors (2015*: 3.01%, £1,865,992)

192,100 ON Semiconductor Corp. 1,287,926 2.45%

106,000 Taiwan Semiconductor Manufacturing Co., Ltd. 1,506,294 2.87%

2,794,220 5.32%



13



Fair Value

GBP % Net Assets


Toys/Games/Hobbies (2015*: -%, £-)

75,500 Bandai Namco Holdings, Inc. 1,217,654 2.32%

Transportation (2015*: 6.74%, £4,182,015)

47,700 Old Dominion Freight Line, Inc. 1,957,975 3.73%

51,200 Union Pacific Corp. 3,019,025 5.75%

4,977,000 9.48%

Total Equity Investment (Cost £46,381,306) 50,365,164 95.99%


£46,381,306) 50,365,164 95.99%

Other Assets in Excess of other Liabilities 2,103,859 4.01%




UK Fund

14

The investment objective of the UK Fund (the “Fund”) is to achieve long-term capital growth and income through diversified

investment in UK equities.

Not less than two thirds of the total assets of the Fund (without taking into account ancillary liquid assets) will be invested in

securities of issuers domiciled in the UK and which are quoted on markets established in the UK. Up to one third of the total

assets of the Fund (without taking into account ancillary liquid assets) may be invested in securities of issuers carrying out

business in the UK or which are quoted on other markets. The Investment Manager will not concentrate investments in any

one industrial or economic sector or companies of a particular market capitalisation. The Fund may not invest more than 10%

of its net asset value in collective investment schemes generally, of which up to 5% of its net asset value may be invested in

collective investment schemes investing in UK equities. Those collective investment schemes which invest in UK equities

will be established as UCITS. The Fund may utilise any of the financial derivative instruments described in the Prospectus

for efficient portfolio management purposes. Furthermore, the Fund may hold ancillary liquid assets.


The performance benchmark against which the Fund‟s performance is measured is the FTSE All- Share Index (total return)*.

Class A Stg£ and Class B Stg£ shares of the Fund launched on 30 March 2007.


Performance

The Fund fell 1.2% net of fees, outperforming the FTSE All-Share Index (total return) by 4.5% over the half year. This

performance was encouraging with the majority of relative return coming from positive stock selection as opposed to our

industry allocation. Some of the best performers came from the mid-cap space which has been an area of the market which

has generally held up well in the sell-off.

Review

The objective of the Fund is to achieve long-term capital growth and income through diversified investment in UK equities.

Whilst we remain conscious of sector weightings this does not dictate our investment approach and the focus remains on

identifying companies with good long term growth prospects and attractive return profiles.

The FTSE All-Share Index (total return) was down 5.7% over the 6 month period in question. The weak absolute

performance of UK equities was primarily driven by investor concern surrounding the prospect of deteriorating global

economic growth on account of the slowdown in China. The devaluation of the Yuan and market intervention from Chinese

authorities had further knock on effects in emerging markets where currencies weakened considerably and commodity prices

fell sharply. Looking at this from a UK perspective, there were, as a result, large implications on an index which is reliant on

internationally derived revenues and where there is a considerable weighting to the Energy and Commodities sectors –

together they represent circa 15% in the Index at the time of writing.

At the corporate level, in the aftermath of the fears concerning global economic slowdown there has been a period of high

volatility. This point was no better demonstrated than by the extreme case of Glencore at the end of September which fell

over 40% on fears of both distressed credit and a potential liquidity crisis. The shares consequently rebounded and were up

33% in just two days as some of these fears were assuaged. Energy stocks have remained volatile too as investors question

the prospect of a „lower for longer‟ oil price environment.

Large scale M&A continues to feature in 2015 with the most attention-grabbing proposal coming from Anheuser-Busch

InBev which has had its offer of almost $106bn to take over SABMiller accepted. In what is seemingly becoming a more

difficult environment to grow organically, one would expect to see corporates continuing to use their strong balance sheets

and the low cost of debt to acquire growth as we move into next year.


UK Fund (continued)

15


Review (continued)

Perhaps unsurprisingly, the best performing sectors were Consumer Goods and Utilities as capital flowed towards the

assumed „safe-havens‟ within the market at a time when uncertainty was elevated. To some degree our underweight in these

two sectors has been a slight detractor to relative performance but we remain comfortable with our long term view.

Again it is no shock that Oil & Gas and Basic Materials have been the worst performing sectors. The price of Brent Crude oil

fell just under 40% from its peak in early May to trough before a slight recovery towards the end of the period. Given the

high degree of leverage to commodity prices in the Oil & Gas sector, this performance is clearly understandable. The

weakness in Basic Materials is largely a function of industrial slowdown in China and an expectation of weaker demand. Our

underweight positions in these two worst performing sectors of the Index have been a helpful contributor to relative return.

Looking through the individual holdings, the key performers included Dairy Crest (the UK dairy food company) and DCC

(an international sales, marketing, distribution and support services group).

Dairy Crest was up 45.0% in absolute terms after the decision to sell its dairies business to Müller was agreed by the CMA.

The remainder of the business is made up of a number of top end brands with attractive returns and strong cash generation

while the group also has some optionality in the development of the base product for infant formula. We have reduced this

position in light of the significant increase in its share price.

DCC has continued to perform well and was up 26.6% in the half year. The company has an enviable record driving

consistent earnings growth, maintaining strong cash flows and having a solid acquisition and disposal record – the latest of

which is the purchase of Butagaz, a French liquefied petroleum gas business which strengthens DCC‟s Energy offering.

The largest detractors of performance were Johnson Matthey (the multinational specialty chemicals company), Entertainment

One (the global Film and TV acquirer and distributor) and IMI (the specialist engineering company).

Johnson Matthey fell 30.3% in what can mainly be attributed to the implications surrounding the Volkswagen scandal and

wider industrial pressure. The catalytic converters they produce for diesel engines are more profitable than those for petrol

engines and the growth prospects are more attractive. As a result of the Volkswagen news, there have been apprehensions

that the viability of diesel engines in small cars could prove unsustainable. Therefore whilst Johnson Matthey was not directly

implicated we believe the risk for investors is on the downside and as such we have exited the position.

Entertainment One is a holding which we bought opportunistically when a large shareholder sold a significant stake and the

shares dropped circa 10%. We like the strong network effect from which this business benefits as a result of its scale and we

remain excited by the growth opportunity of the continued roll out of Peppa Pig. The company has recently announced a

rights issue which saw the shares react negatively but our view is that the capital raised in order to increase the stake in Peppa

Pig is a wealth creating strategy in the long term. Therefore, although the shares are down 30.4% we continue to hold.

IMI, as a specialist industrial engineer focusing on flow control, has struggled in difficult trading conditions – falling 22.9%

over the period. The company has significant exposure to Oil & Gas, Fossil Power, Petrochemicals and Iron & Steel so its

end markets have been weak. In our opinion this has masked the continued operational improvements going on within the

business under the new CEO, Mark Selway who has looked to put more emphasis on growth.

Outlook We are of the view that equities remains the most attractive asset class for long term investors although the outlook is likely

to continue to be difficult to predict. The global economy still seems robust though it must be recognised this is in a period

where economies are receiving the benefits of ultra-low interest rates and quantitative easing (“QE”).

Despite mentioning previously that we do not focus on our sector weightings versus the benchmark, it is something that at the

same time we cannot ignore. The consensual call at present is an underweight position in Resources and Commodity stocks

but we need to be aware that there will come a time when these sectors are too heavily discounted. If and when these end

markets stabilize there are likely to be good money making opportunities.


UK Fund (continued)

16


Outlook (continued)

It is worth noting that a lot of the recent additions to the fund over the period in question have been in the Mid Cap space.

These names include Entertainment One, RPC Group and Poundland. Looking further down the market capitalization

spectrum is an area we feel that we can add more value and typically these stocks are less well covered by the analyst

universe. Currently small/mid cap balance sheets are also extremely robust with Net debt / EBITDA ratios nearing their lows

– an indication of the scope for inorganic growth.

While macroeconomic uncertainty persists principally surrounding the timing of US and UK rate hikes, the market is likely to

remain volatile and unpredictable. It is at these moments when it is best to stick to our longer term investment philosophy.

A Buchan / T Faber

Nov 2015

* References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its

benchmark.

UK Fund Top 5 Investments as at 31 October 2015


74,500 Prudential Plc 1,132,959 4.61%

1,350,000 Lloyds Banking Group Plc 996,300 4.05%

15,250 Reckitt Benckiser Group Plc 971,120 3.95%

100,000 Babcock International Group Plc 964,500 3.92%

200,000 BT Group Plc 930,800 3.79%

4,995,679 20.32%

UK Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP % Total Assets




Cash 1,235,242 4.96%


Total assets 24,922,012 100.00%


UK Fund (continued)

17



Fair Value

GBP % Net Assets

Equity Investment

Advertising (2015*: 2.65%, £681,750)

53,800 WPP Plc 786,556 3.20%

Auto Parts & Equipment (2015*: 2.97%, £763,400)

184,000 GKN Plc 527,896 2.15%

Banks (2015*: 4.04%, £1,039,500)

100,000 HSBC Holdings Plc 508,250 2.07%

1,350,000 Lloyds Banking Group Plc 996,300 4.05%

1,504,550 6.12%

Beverages (2015*: 5.58%, £1,435,020)

12,500 SABMiller Plc 498,469 2.03%

Building Materials (2015*: 3.86%, £994,125)

46,500 CRH Plc 825,375 3.36%

Commercial Services (2015*: 3.83%, £985,000)

100,000 Babcock International Group Plc 964,500 3.92%

Distribution/Wholesale (2015*: 7.50%, £1,927,175)

15,000 DCC Plc 775,875 3.16%

238,333 Entertainment One Ltd. 527,430 2.14%

65,000 Inchcape Plc 518,375 2.11%

15,000 Wolseley Plc 568,650 2.31%

2,390,330 9.72%

Diversified Financial Services (2015*: 3.37%, £865,940)

116,000 IG Group Holdings Plc 876,380 3.57%

Food (2015*: -%, £-)

120,000 Dairy Crest Group Plc 775,500 3.16%

Forest Products & Paper (2015*: 2.69%, £692,000)

200,000 DS Smith Plc 778,600 3.17%

Household Products/Wares (2015*: 2.49%, £641,740)


Industrial Machinery (2015*: 5.17%, £1,331,160)

50,000 IMI Plc 479,250 1.95%

274,999 Melrose Industries Plc 734,247 2.99%

1,213,497 4.94%


UK Fund (continued)

18



Fair Value

GBP % Net Assets


Insurance (2015*: 8.89%, £2,287,650)

50,000 Admiral Group Plc 810,000 3.30%

150,000 Aviva Plc 725,475 2.95%

74,500 Prudential Plc 1,132,959 4.61%

2,668,434 10.86%

Internet (2015*: 1.95%, £500,555)

130,370 Just Eat Plc 558,505 2.27%

Mining (2015*: 2.34%, £603,330)

21,000 Rio Tinto Plc 499,433 2.03%

Oil & Gas (2015*: 6.64%, £1,709,912)

71,000 BG Group Plc 731,123 2.97%

40,000 Royal Dutch Shell Plc 681,800 2.77%

1,412,923 5.74%

Packaging & Containers (2015*: -%, £-)

74,000 RPC Group Plc 479,520 1.95%

Pharmaceuticals (2015*: 1.98%, £509,600)

70,000 BTG Plc 367,500 1.50%

Real Estate Investment Trust (2015*: 3.22%, £828,000)

100,000 British Land Co., Plc 871,250 3.55%

Retail (2015*: 4.67%, £1,202,825)

180,000 Dixons Carphone Plc 828,360 3.37%

93,000 Dunelm Group Plc 886,755 3.61%

175,000 Poundland Group Plc 480,900 1.96%

2,196,015 8.94%

Semiconductors (2015*: -%, £-)

50,000 ARM Holdings Plc 514,750 2.09%

Telecommunication (2015*: 9.75%, £2,509,500)

200,000 BT Group Plc 930,800 3.79%

55,000 Inmarsat Plc 538,450 2.19%

220,000 Vodafone Group Plc 470,140 1.91%

1,939,390 7.89%


UK Fund (continued)

19



Fair Value

GBP % Net Assets



£21,101,385) 23,620,493 96.11%

Other Assets in Excess of other Liabilities 955,256 3.89%




European Fund

20

The investment objective of the European Fund (the “Fund”) is to generate long term capital growth through investing in

equities of Pan European companies in developed Pan European equity markets, primarily amongst larger capitalised

companies.

Investments may be made in ordinary shares (including ADRs, EDRs and GDRs) and preferred shares of Pan European

companies. At least two thirds of the total assets of the Fund (excluding ancillary liquid assets) will be invested in shares in

Pan European companies. Up to one third of the total assets of the Fund may be held in ancillary liquid assets. Investments

will not be concentrated in any one Pan European country or in any one industrial or economic sector. The securities in

which the Fund may invest, will be quoted or traded on one of the regulated markets set out in Schedule I of the Prospectus.

The Fund aims to generate substantial absolute returns over the course of an investment cycle. The Fund will invest primarily

in large and mid-capitalisation companies in Europe, including the U.K. The Fund is managed along a best ideas principle,

meaning that it will invest in a relatively concentrated number of holdings. The Fund will seek to invest in companies which

are perceived to generate high returns and where management is perceived as having reinvestment opportunities in order to

sustain such returns and the Fund may also invest in issuers with restructuring potential where the returns in the past have

been low. The Fund may not invest more than 10% of its net asset value in collective investment schemes generally, of which

up to 5% of its net asset value may be invested in collective investment schemes investing in Pan European companies.

Those collective investment schemes which invest in Pan European Companies will be established as UCITS. The Fund may

utilise any of the financial derivative instruments described in the Prospectus for efficient portfolio management purposes.

Notwithstanding the asset allocation limits outlined above, the Fund may hold ancillary liquid assets where, in view of

market circumstances, the Investment Manager believes that it would not be in the interests of Shareholders for the Fund to

be fully invested or where the Fund needs to maintain liquidity to meet repurchase requests.

The base currency of the Fund is Euro.

The performance benchmark against which the Fund‟s performance is measured is the FTSE World Europe Index (total

return)*.

Class A Euro, Class A Stg£ and Class B Euro Shares of the Fund launched on 30 March 2007. Class A Euro Acc Shares

of the Fund launched on 2 October 2014. Class M Euro Shares of the Fund are also available.


On 30th

June 2015, the Fund was merged with the Odey European Focus Fund and thereafter it ceased to be a sub-fund of the

Waverton Investment Funds plc umbrella. For this reason, this report is for the part period up to the date of this merger.

Performance

The Fund fell 1.9% for the two months to 30 June over outperforming the FTSE World Europe Index (total return) which fell

3.0% in Euro terms.

Review

The Fund fell 1.9% over the period outperforming the FTSE World Europe Index (total return)which fell 3.0% in Euro terms.

During May, markets continued their upward trend before becoming nervous in June with the escalation of the Greek debt

crisis, a further move higher in German bond yields and the start of the Chinese equity sell-off. This caused a broad European

equity market sell-off to which the fund was not immune. However, performance was helped by stock selection and the

relative strength of the Fund‟s financial positions, ING, Danske Bank and Lloyds Banking Group as well as gains in the sugar

company, Suedzucker. On the negative side, the Fund was held back by its holdings in the German utilities, RWE and E.ON,

and its relative currency positions.


benchmark.


Sterling Bond Fund

21

The investment objective of the Sterling Bond Fund (the “Fund”) is to achieve capital growth and income through investment

in fixed and/or floating rate UK and international government corporate debt securities.

The corporate debt securities in which the Fund invests shall not be from any particular industry sector. The debt securities

shall be predominantly investment grade rated by an agency such as Moody‟s or Standard & Poor‟s. The bonds may be

denominated in any currency but the Fund will have a minimum exposure of 80% to Sterling at all times. The Fund may

utilise any of the financial derivative instruments described in the Prospectus for efficient portfolio management and

investment purposes to make a positive return for the Fund. The securities in which the Fund may invest will be quoted or

traded on one of the regulated markets set out in Schedule I of the Prospectus. The Fund may not invest more than 10 % of

its net asset value in collective investment schemes generally which have similar investment objectives and policies to the

Fund or which invest in fixed income or money market instruments, of which up to 5% of its net asset value may be invested

in collective investment schemes investing in bond markets globally. Those collective investment schemes which invest in

Debt Securities markets globally will be established as UCITS or UCITS equivalent schemes. The Fund may hold ancillary

liquid assets where in view of market circumstances the Investment Manager believes that it would not be in the interests of

Shareholders for the Fund to be fully invested or where the Fund needs to maintain liquidity to meet redemption requests.


The performance benchmark against which the Fund‟s performance is measured is the FTSE Actuaries UK Gilts Index

Series-Gilts (All) (total return)*.

Class A Stg£ and Class B Stg£ Shares of the Fund launched on 12 January 2010. Class P Stg£ Shares of the Fund launched

on 8 January 2014.


Performance

The Fund fell 1.4% in the six months to end October whilst the FTSE Actuaries UK Gilts Index Series – Gilts (All) (total

return) rose 0.6%.

Review

Market turbulence in August and September hurt the fund as fears of a global slowdown sparked by softening data from

China saw risk assets weaken and core government bonds rally. A sharp widening in credit spreads was perhaps symptomatic

of a few idiosyncratic issues such as VW and Glencore causing nervousness which was exacerbated by a lack of liquidity in

bond markets. However, October saw a material recovery in sentiment due to policy response in China, the suggestion of

further action by the ECB and a pickup in US economic data which led to the Federal Reserve becoming more hawkish. The

improvement in risk appetite helped the Fund recover some absolute and relative return as credit spreads recovered from the

sell-off and the asymmetric risk of government bonds was again highlighted as they weakened as the prospect of a US

December interest rate hike was revived.

Outlook

The recovery in US economic data showing the consumer side is compensating for the softer manufacturing sector and

further global monetary easing driven by China and the ECB seem supportive of credit markets and keep government bond

yields vulnerable to the prospect of an improvement in growth and inflation. We therefore remain long credit with lower than

benchmark duration, endeavouring to capture the additional spread available in an improving economic backdrop whilst

protecting against the headwind of higher yields.

C Lee

November 2015


benchmark.


Sterling Bond Fund (continued)

22

Sterling Bond Fund Top 5 Investments by issuer as at 31 October 2015


11,000,000 United Kingdom Treasury Bill & Gilt 11,730,700 8.76%

6,608,000 Barclays Bank Plc 6,357,213 4.75%

7,300,000 Standard Chartered Plc 5,158,795 3.86%

7,000,000 UBS 4,798,020 3.59%

4,510,000 PGH Capital Ltd 4,710,202 3.52%

32,754,930 24.48%

Sterling Bond Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP % Total Assets



Financial derivative instruments dealt in on a regulated market 164,160 0.12%

OTC financial derivative instruments 306,504 0.23%

Cash 4,421,546 3.25%

Other assets 4,442,139 3.27%

Total assets 135,995,771 100.00%



23


Shares/Par Security description Fair Value GBP % Net Assets

Corporate Bonds

Auto Manufacturers (2015*: 2.16%, £2,948,935)

2,750,000 Jaguar Land Rover Automotive Plc, 5.00%, due 15/02/22 2,827,000 2.11%

Auto Parts & Equipment (2015*: 1.87%, £2,560,956)

2,176,000 GKN Holdings Plc, 6.75%, due 28/10/19 2,454,484 1.83%

Banks (2015*: 31.34%, £42,844,870)

4,200,000 Banco Bilbao Vizcaya Argentaria SA, 9.00%, due 09/05/18 2,958,855 2.21%

2,608,000 Barclays Bank Plc, 14.00%, due 15/06/19 3,376,160 2.52%


2,000,000 Close Brothers Finance Plc, 3.88%, due 27/06/21 2,060,540 1.54%

4,400,000 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, 11.00%, due 30/06/19 3,577,795 2.67%

1,500,000 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, 8.38%, due 26/07/16 1,011,532 0.76%

1,700,000 Goldman Sachs Group, Inc., 5.50%, due 12/10/21 1,870,459 1.40%

5,000,000 JPMorgan Chase & Co, 6.75%, due 01/02/24 3,528,572 2.64%

800,000 Keystone Financing Plc, 9.50%, due 15/10/19 841,176 0.63%

2,535,000 LBG Capital No.2 Plc, 15.00%, due 21/12/19 3,544,184 2.65%

901,000 LBG Capital No.2 Plc, 10.50%, due 29/09/23 1,036,177 0.77%

4,500,000 Royal Bank of Scotland Group Plc, 5.50%, due 29/11/49 3,211,683 2.40%

3,000,000 Standard Chartered Plc, 5.13%, due 06/06/34 2,671,800 2.00%


3,700,000 Svenska Handelsbanken AB, 5.25%, due 01/03/21 2,329,110 1.74%

5,000,000 UBS AG/Jersey, 7.25%, due 22/02/22 3,446,052 2.58%

2,000,000 UBS Group AG, 7.30%, due 19/02/20 1,351,968 1.01%

3,500,000 Wells Fargo & Corp., 5.90%, due 15/06/24 2,354,541 1.76%

44,981,342 33.63%

Commercial Services 2015*: 0.87%, £1,190,090)

1,100,000 A2D Funding Plc, 4.75%, due 18/10/22 1,151,117 0.86%

Diversified Financial Services (2015*: 7.93%, £10,860,427)

1,000,000 ICAP Plc, 5.50%, due 31/07/18 1,042,830 0.78%

1,000,000 Intermediate Capital Group Plc, 5.00%, due 24/03/23 992,410 0.74%

509,000 International Personal Finance Plc, 6.13%, due 08/05/20 496,275 0.37%

1,500,000 London Stock Exchange Group Plc, 4.75%, due 02/11/21 1,601,415 1.20%

1,000,000 Paragon Group of Cos Plc, 6.13%, due 30/01/22 1,015,140 0.76%

375,000 Paragon Group of Cos Plc, 6.00%, due 28/08/24 381,409 0.28%

6,882,000 Pershing Square Holdings Ltd., 5.50%, due 15/07/22 4,249,101 3.18%

1,800,000 Provident Financial Plc, 7.00%, due 04/10/17 1,873,350 1.40% 678,000 Tesco Personal Finance Plc, 1.00%, due 16/12/19 690,265 0.52%

1,242,000 Tesco Personal Finance Plc, 5.00%, due 21/11/20 1,288,712 0.96%

13,630,907 10.19%



24



Corporate Bonds (continued)

Energy (2015*: 1.27%, £1,737,869)

1,350,000 Petroleos Mexicanos, 8.25%, due 02/06/22 1,670,045 1.25%

Insurance (2015*: 10.80%, £14,754,493)

1,500,000 Admiral Group Plc, 5.50%, due 25/07/24 1,494,495 1.12%

6,000,000

Aquarius + Investments Plc for Swiss Reinsurance Co Ltd.,

8.25%, due 01/09/18 4,222,048 3.15%

600,000 Aviva Plc, 6.13%, due 29/09/49 623,442 0.47%

3,100,000 Liverpool Victoria Friendly Society Ltd., 6.50%, due 22/05/43 3,046,618 2.28%

2,310,000 PGH Capital Ltd., 5.75%, due 07/07/21 2,499,004 1.87%


14,096,805 10.54%

Real Estate (2015*: 7.62%, £10,418,528)

750,000 Bruntwood Ltd., 6.00%, due 27/07/20 790,500 0.59%

1,200,000 CLS Holdings Plc, 5.50%, due 31/12/19 1,239,300 0.93%

2,500,000 Grainger Plc, 5.00%, due 16/12/20 2,598,225 1.94%

1,300,000 Helical Bar Plc, 6.00%, due 24/06/20 1,358,058 1.02%

1,500,000 QED Finance Plc, 6.50%, due 29/07/20 1,764,645 1.32%

1,124,800 UNITE Group Plc/The, 6.12%, 12/06/20 1,201,793 0.90%

1,000,000 Workspace Group Plc, 6.00%, due 09/10/19 1,059,700 0.79%

10,012,221 7.49%

Real Estate Investment Trust (2015*: 0.88%, £1,198,878)

1,144,000 Primary Health Properties Plc, 5.38%, due 23/07/19 1,178,160 0.88%

Retail (2015*: 3.78%, £5,168,510)

1,593,500 Burford Capital Plc, 6.50%, due 19/08/22 1,674,912 1.25%

2,000,000 Debenhams Plc, 5.25%, due 15/07/21 1,989,480 1.49%

1,300,000 Marks & Spencer Plc, 6.13%, due 02/12/19 1,471,418 1.10%

5,135,810 3.84%

Savings & Loans (2015*: 1.47%, £2,009,280)

2,700,000 Nationwide Building Society, 6.88%, due 11/03/49 2,720,196 2.03%

Telecommunication (2015*: 0.77%, £1,053,893)

25,000,000 America Movil SAB de CV, 7.13%, due 09/12/24 967,377 0.72%

Total Corporate Bonds (Cost £99,276,950) 100,825,464 75.37%



25



Government Obligation

Government Bonds (2015*: 6.57%, £8,972,526)

800,000 Brazil Notas do Tesouro Nacional Serie F, 10.00%, due 01/01/23 1,076,575 0.80%

800,000 Mexican Bonos, 6.50%, due 10/06/21 3,305,453 2.47%

2,000,000 United States Treasury Note/Bond, 3.63%, due 15/02/44 1,480,038 1.11%

5,862,066 4.38%

Sovereign (2015*: 5.87%, £8,022,350)

6,000,000 United Kingdom Gilt, 3.25%, due 22/01/44 6,733,200 5.02%

Total Government Obligation (Cost £14,561,397) 12,595,266 9.40%

Floating Rate Note

Banks (2015*: 5.00%, £6,829,250)

4,000,000 Lloyds Banking Group Plc, 6.66%, due 29/01/49 2,921,306 2.19%

6,000,000 Wachovia Capital Trust III, 5.57%, due 29/03/49 3,842,436 2.87%

6,763,742 5.06%


500,000 Morgan Stanley & Co International Plc, 0.00%, due 17/06/16 505,650 0.38%

1,000,000 SG Issuer SA 973,800 0.73%

1,479,450 1.11%

Total Floating Rate Note (Cost £7,358,058) 8,243,192 6.16%

Zero Coupon Bonds

Sovereign (2015*: -%, £-)

5,000,000 United Kingdom Treasury Bill 4,997,500 3.74%

Zero Coupon Bonds (Cost £4,993,250) 4,997,500 3.74%


£126,189,655) 126,661,422 94.68%

Unrealised Appreciation on Forward Currency Contracts (2015*:0.96%, £1,325,061)

Currency Principal

Currency Principal Current Settlement

Unrealised

Appreciation

Purchased Amount Sold Amount Fair Value Date GBP % Net Assets

GBP 3,393,880 EUR (3,307,043) 4,600,000 08-Jan-16 86,837 0.07%

GBP 39,318,480 USD (39,103,109) 60,000,000 08-Jan-16 215,370 0.16%

USD 651,718 GBP (647,421) 647,421 08-Jan-16 4,297 0.00%

Total Unrealised Appreciation on Forward Currency Contracts

306,504 0.23%

Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited


26


Unrealised Appreciation on Option Contracts (2015*: 0.07%, £100,486)

Contract Size Security Description Expiry Date

Unrealised

Gain GBP % Net Assets

375 Call US Bond Based Future/Option 24/12/2015 164,160 0.12%

Total Unrealised Appreciation on Option Contracts

164,160 0.12%

Unrealised Depreciation on Future Contracts (2015*: (0.23%)%, £(312,246)

Contract Size Security Description Expiry Date

Unrealised

Gain GBP % Net Assets

(335) US 10 Year Note Future 21/12/15 (131,644) (0.10%)

(270) Long Gilt Future 29/12/15 (72,900) (0.05%)

Total Unrealised Depreciation on Future Contracts

(204,544) (0.15%)





Equity Fund

27

The investment objective of the Equity Fund (the “Fund”) is to achieve capital growth and income through investment of up

to 100% of its net asset value in international equities either by way of direct investment or through the use of collective

investment schemes to provide exposure to the underlying asset class. Depending on market circumstances the Fund may also

invest directly in structured products which are listed, traded or dealt in on a regulated market to enhance upside potential.

The Fund‟s investment strategy shall not be specific to any particular industry sector or geographic region. The equity

securities in which the Fund may invest include ordinary shares or common stock, preference shares, American depository

receipts, European depositary receipts and global depository receipts which are listed, traded or dealt in on a regulated

market. The Fund may not invest more than 10% of its net asset value in any one collective investment scheme. The

collective investment schemes in which the Fund invests will be established as UCITS under the Directive in any EU

Member State or UCITS Equivalent Schemes. Investment in UCITS Equivalent Schemes shall be subject to an aggregate

limit of 30% of the Fund‟s net asset value. Investment in structured products shall be subject to an aggregate limit of 20% of

the Fund‟s net asset value. The structured products shall comprise securities in which the issuer undertakes to provide a

return to investors based on the performance of a reference asset such as an equity, bond, financial derivative instrument,

index or collective investment scheme. The securities in which the Fund may invest will be quoted or traded on one of the

regulated markets set out in Schedule I of the Prospectus. The Fund may utilise any of the financial derivative instruments

described in the Prospectus for efficient portfolio management purposes. The Fund may acquire Shares in another sub-fund

of the Company by investing up to 10% of its net asset value in that other sub-fund. However, the Fund may not invest in a

sub-fund of the company which itself holds shares in other sub-funds of the Company or another sub-fund managed or

advised by the Investment Manager. Where the Fund invests in another sub-fund, of the company or any other fund managed

or advised by the Investment Manager, it may not charge an annual management and/or investment management fee in

respect of the portion of its assets invested in the other sub-fund/fund. The Fund may invest up to 10% of its assets in

transferable securities that are not listed, traded or dealt in on regulated markets. These transferable securities may include

equities, units of collective investment schemes (including exchange traded Funds) which are not UCITS, or any other

transferable security which is a permitted investment under the Regulations. The Fund may hold ancillary liquid assets where

in view of market circumstances the Investment Manager believes that it would not be in the interests of Shareholders in the

Fund to be fully invested where the Fund needs to maintain liquidity to meet repurchase requests.


The performance benchmark against which the Fund‟s performance is measured is the FTSE All-World Index (total return)*.

Class A Stg£ and Class B Stg£ Shares of the Fund launched on 12 January 2010. Class P Stg£ Shares of the Fund launched

on 8 January 2014.


Performance

The Fund had a very difficult period in the six months to 31st October 2015 on a relative and an absolute basis. The Fund fell

by circa 7.26% vs. a fall of 4.93% by the FTSE All-World Index (total return).

Review

In April, the markets began falling after what had been a very positive start to the year. This was prompted by recurring

concerns about the situation in Greece and a reversal in fortunes for the Chinese market that had stalled. This downward

trajectory accelerated significantly in August when the Chinese authorities surprised markets with a currency

devaluation. October proved to be a much better month for investors but was not able to undo the majority of the damage.

Up until this point in the year the fund had performed quite well. The overweights in Japan and Europe had served us well as

had the currency hedging in each of these regions. The risk off environment was particularly unkind to these positions. We

felt that most of the issues were sentiment driven rather than fundamental so we did not make any dramatic changes to the

structure of the portfolio. The subsequent rebound has, thus far, shown that to be the correct decision.


Equity Fund (continued)

28


Review (continued)

During the period we parted company with our holding of Allianz UK Growth Fund. This was replaced with Sanditon UK

Fund. This new fund is run by Julie Dean who has just resurfaced after leaving Schroders in 2014. We had invested

extremely successfully for many years with Julie at Cazenove and Schroders and are happy to support her in her new

venture.

Outlook

In the US our largest position, Pershing Square Holdings, was particularly weak as their biggest holding, Valeant, was caught

up in some political shenanigans involving prescription drug prices. We met very recently with Pershing Square and they are

very comfortable with their exposure and stress that only 10% of Valeant‟s revenues derive from businesses that build

strategies around drug price increases. Once again this is a conviction position for us and one that we feel will deliver

superior risk adjusted returns in the long run but the nature of their underlying investments mean that the relative returns will

be volatile.

J Bellamy

November 2015


benchmark.

Equity Fund Top 5 Investments as at 31 October 2015


69,395

Odey Investment Funds Plc - Odey Allegra Developed

Markets Fund 9,432,862 7.30%

127,420 iShares Russell 1000 Growth ETF 8,427,420 6.52%

4,685,565 FP Argonaut Funds - FP Argonaut European Alpha Fund 7,009,919 5.42%

526,078 Pershing Square Holdings Ltd. 6,896,462 5.34%

333,549 Polar Capital Funds Plc - Japan Fund 6,764,374 5.23%

38,531,037 29.81%

Equity Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP % Total Assets



Collective Investment Schemes 106,564,976 81.92%

Cash 1,483,826 1.14%


Total assets 130,087,632 100.00%



29



Corporate Bonds

Banks (2015*: 4.08%, £5,275,635)

6,680,000 SGA Societe Generale Acceptance NV, 3.89% , due 10/02/20 6,388,752 4.94%


Zero Coupon Bonds

Banks (2015*: 12.38%, £16,020,842)

6,000,000 Credit Suisse AG/London, 0.00%, due 08/04/19 5,073,600 3.93%

7,497,750 Deutsche Bank AG/London, 0.00%, due 08/02/21 4,931,573 3.82%

6,467,000 Morgan Stanley, 0.00%, 02/11/18 5,387,481 4.17%

15,392,654 11.92%

Total Zero Coupon Bonds (Cost £14,972,519) 15,392,654 11.92%

Equity Investment

Equity Fund (2015*: 82.77%, £107,079,841)

3,125,665

Edinburgh Partners Opportunities Fund Plc - European Opportunities

Fund Plc 5,785,606 4.48%

4,685,565 FP Argonaut Funds - FP Argonaut European Alpha Fund 7,009,919 5.42%

292,536 Guinness Asset Management Funds Plc - Global Equity Income Fund 3,937,622 3.05%

401,193 Guinness Global Innovators Fund 4,168,957 3.23%

4,217,871 Hermes Asia Ex-Japan Equity Fund 6,480,978 5.01%

225,395 HSBC EURO STOXX 50 UCITS ETF 5,663,806 4.38%

2,482,434 Neptune Investment Funds - Japan Opportunities Fund 4,758,826 3.68%

69,395 Odey Investment Funds Plc - Odey Allegra Developed Markets Fund 9,432,862 7.30%

526,078 Pershing Square Holdings Ltd. 6,896,462 5.34%

333,549 Polar Capital Funds Plc - Japan Fund 6,764,374 5.23%

38,802 Prusik Asian Equity Income Fund 3,650,311 2.82%

28,565 RAM Lux Systematic Funds - Emerging Markets Equities Fund 2,780,379 2.15%

2,607,789 Schroder Asian Alpha Plus Fund 1,588,926 1.23%

782,580 SIG - Lyrical Fund H 5,068,312 3.92%

2,651,779 Somerset Emerging Markets Dividend Growth Fund 3,232,519 2.50%

65,261 Source JPX-Nikkei 400 UCITS ETF 5,101,452 3.95%

250,000

Waverton Investment Funds Plc - Global Equity Wealth Creation

Fund 1,633,763 1.26%

83,955,074 64.95%




30



Fair Value

GBP

% Net

Assets

Investment Fund

Equity Fund (2015*: -%, £-)

434,165 HSBC MSCI WORLD UCITS ETF 4,794,825 3.71%

316,807 HSBC S&P 500 UCITS ETF 4,341,441 3.36%

127,420 iShares Russell 1000 Growth ETF 8,427,420 6.52%

5,513,784 Thesis Unit Trust Management - TM Sanditon UK Fund 5,046,216 3.90%

Total Investment Fund (Cost £22,453,331) 22,609,902 17.49%

Total financial assets at fair value through profit or loss (Cost £122,867,445) 128,346,382 99.30%





Global Bond Fund

31

The investment objective of the Global Bond Fund (the “Fund”) is to achieve capital growth and income through investment

in fixed and/or floating rate global government and corporate debt securities.

The corporate debt securities in which the Fund invests shall not be from any particular industry sector. The debt securities

shall be predominantly investment grade rated by a rating agency such as Moody‟s or Standard & Poor‟s. The bonds may be

denominated in any currency. The Fund may utilise any of the financial derivative instruments described in the Prospectus

for efficient portfolio management and investment purposes. The securities in which the Fund may invest will be quoted or

traded on one of the regulated markets set out in Schedule I of the Prospectus. The Fund may not invest more than 10% of its

net asset value in collective investment schemes generally which have similar investment objectives and policies to the Fund

or which invest in Debt Securities or money market instruments, of which up to 5% of its net asset value may be invested in

collective investment schemes investing in Debt Securities markets globally. Those collective investment schemes which

invest in bond markets globally will be established as UCITS or UCITS Equivalent Schemes. Furthermore, the Fund may

hold ancillary liquid assets where in view of market circumstances the Investment Manager believes that it would not be in

the interests of Shareholders for the Fund to be fully invested or where the Fund needs to maintain liquidity to meet

repurchase requests.

The base currency of the Fund is U.S. Dollar. It is intended that the non-base currency denominated classes of the Fund will,

so far as practicable, be fully hedged against the U.S. Dollar.

The performance benchmark against which the Fund‟s performance is measured is the US Cash Indices LIBOR Total Return

1 month*.

Class A Stg£ and Class A US$ Shares of the Fund launched on 12 January 2010. Class I US$ Shares launched on 17

September 2012 and Class I Euro Acc Shares launched on the 6 July 2015. Class B US$ and Class I Stg£ Shares of the Fund

are also available.


Performance

The Fund fell 2.4% in the six month period ending 31 October 2015, US Cash Indices LIBOR Total Return 1 month edged

up 0.1%, and the Citigroup Government Bond Index was down 1.0%.

Review

Market turbulence in August and September hurt the fund as fears of a global slowdown sparked by softening data from

China saw risk assets weaken and core government bonds rally. A sharp widening in credit spreads was perhaps symptomatic

of a few idiosyncratic issues such as VW and Glencore causing nervousness which was exacerbated by a lack of liquidity in

bond markets. However, October saw a material recovery in sentiment due to policy response in China, the suggestion of

further action by the European Central Bank (“ECB”) and a pickup in US economic data which led to the Federal Reserve

becoming more hawkish. The improvement in risk appetite helped the fund recover some absolute and relative return as

credit spreads recovered from the sell-off and the asymmetric risk of government bonds was again highlighted as they

weakened as the prospect of a US December interest rate hike was revived.

Outlook

The recovery in US economic data showing the consumer side is compensating for the softer manufacturing sector and

further global monetary easing driven by China and the ECB seem supportive of credit markets and keep government bond

yields vulnerable to the prospect of an improvement in growth and inflation. We therefore remain long credit with lower than

benchmark duration, endeavouring to capture the additional spread available in an improving economic backdrop whilst

protecting against the headwind of higher yields.

C Lee

November 2015

* References to benchmarks are for illustrative purposes only. There is no guarantee that the fund will outperform its

benchmark.


Global Bond Fund (continued)

32

Global Bond Fund Top 5 Investments by issuer as at 31 October 2015


4,800,000 Barclays Bank Plc 6,219,232 6.84%

5,000,000 UBS 5,248,400 5.78%

750,000 Mexican Bonos, 4,756,134 5.23%

2,425,000 Lloyds 4,015,291 4.42%

3,100,000 Standard Chartered Plc 3,532,024 3.89%

23,771,081 26.16%

Global Bond Fund Portfolio Analysis as at 31 October 2015 Fair Value USD % Total Assets



OTC financial derivative instruments 68,388 0.07%

Cash 3,453,349 3.73%

Other assets 3,804,317 4.11%

Total assets 92,533,020 100.00%



33



Fair Value

USD % Net Assets

Corporate Bonds

Auto Manufacturers (2015*: 1.32%, $1,323,268)

800,000 Jaguar Land Rover Automotive Plc, 5.00%, due 15/02/22 1,262,220 1.39%

Banks (2015*: 30.20%, $30,227,884)

1,800,000 Banco Bilbao Vizcaya Argentaria SA, 9.00%, due 09/05/18 1,946,250 2.14%

620,000 Bank of Scotland Plc, 9.38%, due 15/05/21 1,199,652 1.32%



1,600,000 Barclays Plc, 6.25%, due 14/09/19 1,580,000 1.74%

2,600,000

Cooperatieve Centrale Raiffeisen-Boerenleenbank

BA/Netherlands, 11.00%, due 30/06/19 3,244,800 3.57%

900,000

Cooperatieve Centrale Raiffeisen-Boerenleenbank

BA/Netherlands, 8.38%, due 26/07/16 931,500 1.03%

1,514,000 Goldman Sachs Group, Inc., 5.50%, due 12/10/21 2,556,683 2.81%

2,000,000 JPMorgan Chase & Co, 6.75%, due 01/02/24 2,166,260 2.38%

1,425,000 Lloyds Bank Plc, 12.00%, due 16/12/24 2,094,750 2.31%

1,000,000 Lloyds Banking Group Plc, 7.63%, due 22/04/25 1,920,541 2.11%



1,550,000 Svenska Handelsbanken AB, 5.25%, due 01/03/21 1,497,517 1.65%

3,000,000 UBS AG/Jersey, 7.25%, due 22/02/22 3,173,400 3.50%

2,000,000 UBS Group AG, 7.30%, due 19/02/20 2,075,000 2.28%

1,300,000 Wells Fargo & Corp., 5.90%, due 15/06/24 1,342,250 1.48%

33,899,859 37.31%

Commercial Services (2015*: 1.42%, $1,418,506)

850,000 A2D Funding Plc, 4.75%, due 18/10/22 1,367,813 1.51%

Diversified Financial Services (2015*: 9.69%, $9,699,329)

500,000 Burford Capital Plc, 6.50%, due 19/08/22 809,676 0.89%

500,000 Intermediate Capital Group Plc, 5.00%, due 24/03/23 761,575 0.84%

500,000 International Personal Finance Plc, 6.13%, due 08/05/20 763,564 0.84%

1,000,000 London Stock Exchange Group Plc, 4.75%, due 02/11/21 1,638,568 1.80%



3,100,000 Pershing Square Holdings Ltd., 5.50%, due 15/07/22 2,937,622 3.23%

1,000,000 Provident Financial Plc, 7.00%, due 04/10/17 1,606,552 1.77%

1,304,600 Tesco Personal Finance Plc, 5.00%, due 21/11/20 2,097,630 2.31%

11,597,008 12.76%

Energy (2015*: 0.85%, $850,485)

750,000 Petroleos Mexicanos, 6.00%, due 05/03/20 815,483 0.90%



34



Fair Value

USD % Net Assets

Corporate Bonds (continued)

Insurance (2015*: 9.24%, $9,243,321)

600,000 Admiral Group Plc, 5.50%, due 25/07/24 917,500 1.01%

2,500,000

Aquarius + Investments Plc for Swiss Reinsurance Co Ltd.,

8.25%, due 01/09/18 2,700,000 2.97%

750,000 Legal & General Group Plc, 5.50%, due 27/06/64 1,072,526 1.18%

900,000 Liverpool Victoria Friendly Society Ltd., 6.50%, due 22/05/43 1,357,536 1.49%


700,000 PGH Capital Ltd., 6.63%, due 18/12/25 1,079,828 1.19%

8,787,767 9.67%

Oil & Gas (2015*: 1.19%, $1,191,405)

600,000 Petroleos Mexicanos, 8.25%, due 02/06/22 1,139,552 1.25%

Real Estate (2015*: 6.60%, $6,599,418)

209,500 Bruntwood Ltd., 6.00%, due 27/07/20 338,904 0.38%

300,000 CLS Holdings Plc, 5.50%, due 31/12/19 475,519 0.52%

1,500,000 Grainger Plc, 5.00%, due 16/12/20 2,392,653 2.64%

611,700 Helical Bar Plc, 6.00%, due 24/06/20 990,154 1.09%

250,000 QED Finance Plc, 6.50%, due 29/07/20 456,384 0.50%

700,000 UNITE Group Plc/The, 6.12%, 12/06/20 1,147,900 1.26%

5,801,514 6.39%

REITS (2015*: 0.65%, $654,568)

150,000 Primary Health Properties Plc, 5.38%, due 23/07/19 239,397 0.26%

250,000 Workspace Group Plc, 6.00%, due 09/10/19 405,981 0.45%

645,378 0.71%

Retail (2015*: 2.66%, $2,660,319)

500,000 Debenhams Plc, 5.25%, due 15/07/21 763,363 0.84%

450,000 Marks & Spencer Plc, 6.13%, due 02/12/19 781,730 0.86%

1,545,093 1.70%

Savings & Loans (2015*: 1.55%, $1,549,657)

1,300,000 Nationwide Building Society, 6.88%, due 11/03/49 2,010,164 2.21%

Telecommunication (2015*: 1.52%, $1,523,808)

15,000,000 America Movil SAB de CV, 7.13%, due 09/12/24 890,838 0.98%




35



Fair Value

USD % Net Assets


Government Bonds (2015*: 18.18%, $18,195,748)

500,000 Brazil Notas do Tesouro Nacional Serie F, 10.00%, due 01/01/23 1,032,705 1.14%

750,000 Mexican Bonos, 6.50%, due 10/06/21 4,756,134 5.23%

2,500,000 United States Treasury Note/Bond, 3.63%, due 15/02/44 2,839,453 3.13%

Total Governemnt Obligation (Cost £10,993,398) 8,628,292 9.50%

Floating Rate Note

Banks (2015*: 5.34%, $5,338,020)

2,000,000 Royal Bank of Scotland Group Plc, 6.99%, due 29/10/49 2,332,500 2.57%

3,000,000 Wachovia Capital Trust III, 5.57%, due 29/03/49 2,948,685 3.24%

5,281,185 5.81%

Diversified Financial Services (2015*: -%, £-)

1,000,000 SG Issuer SA, 4.57%, due 10/04/20 1,534,800 1.69%

Total Floating Rate Note (Cost £6,889,550) 6,815,985 7.50%


£88,989,505) 85,206,966 93.78%

Unrealised Appreciation on Forward Currency Contracts (2015*: 0.21%, $214,381)

Unrealised

Currency Principal Currency Principal Current Settlement Appreciation

Purchased Amount Sold Amount Fair Value Date USD % Net Assets

GBP 1,894,451 USD (1,891,708) 1,891,708 02-Nov-15 2,743 0.00%

USD 2,703,960 EUR (2,647,451) 2,400,000 08-Jan-16 56,509 0.06%

USD 3,318,273 EUR (3,309,231) 3,000,000 08-Jan-16 9,042 0.01%

USD 20,544 EUR (20,450) 18,563 02-Nov-15 94 0.00%

Total Unrealised Appreciation on Forward Currency Contracts 68,388 0.07%

Unrealised Depreciation on Forward Currency Contracts (2015*: (2.12%), $(2,115,937))

Unrealised

Currency Principal Currency Principal Current Settlement Appreciation

Purchased Amount Sold Amount Fair Value Date USD % Net Assets

EUR 1,114,903 USD (1,143,398) 1,143,398 02-Nov-15 (28,495) (0.03%)

USD 43,491,000 GBP (43,730,661) 28,500,000 08-Jan-16 (239,660) (0.27%)

GBP 767,204 USD (771,246) 771,246 08-Jan-16 (4,043) (0.00%)

GBP 537,042 USD (540,617) 540,617 08-Jan-16 (3,575) (0.00%)

Total Unrealised Depreciation on Forward Currency Contracts (275,773) (0.30%)



36


Unrealised Depreciation on Future Contracts (2015*:(0.29%)%, £(298,828)

Contract

Size Security Description Expiry Date

Unrealised

Gain USD % Net Assets

(200) US 10 Year Note Future 21/12/2015 (120,625) (0.13%)

155) Long Gilt Future 29/12/2015 (64,231) (0.07%)

Total Unrealised Depreciation on Future Contracts

(184,856) (0.20%)


Net Assets Attributable to Holder of Redeemable

Shares 90,852,234 100.00%


Global Equity Wealth Creation Fund

37

The investment objective of Global Equity Wealth Creation Fund (the “Fund”) is to achieve capital growth through

investment in a diversified portfolio of equities on a global basis. At least two thirds of the total assets of the Fund (excluding ancillary liquid assets) shall be invested in ordinary shares

(including ADRs, EDRs and GDRs) and preferred shares worldwide. The Fund may invest up to one third of its total assets

(excluding ancillary liquid assets) in debt securities convertible into shares (not exceeding 25% of the total assets of the

Fund) and in fixed income securities, such as OECD government or supranational debt securities, corporate bonds, bankers‟

acceptances and commercial paper rated investment grade or better or deemed by the Investment Manager to have an

equivalent rating. Not more than 20%. of the net asset value of the Fund will be invested in securities of issuers established in

emerging market countries.The Fund‟s investment strategy shall not be specific to any particular industry or economic sector

or geographic region. The Fund aims to generate returns by investing in a diversified portfolio of companies which the

Investment Manager believes create wealth at a corporate level by allocating capital efficiently. Following this wealth

creation assessment, analysis is undertaken to ascertain which companies are also Fundamentally undervalued. It is intended

that the Fund will normally hold between 150-250 positions in companies with any market capitalisation worldwide, with the

number varying from time to time. The Fund may utilise any of the financial derivative instruments described in the

Prospectus for efficient portfolio management purposes. The securities in which the Fund may invest will be quoted or traded

on one of the regulated markets set out in Schedule I of the Prospectus. The Fund may not invest more than 10% of its net

asset value in collective investment schemes generally, of which up to 5% of its net asset value may be invested in collective

investment schemes investing in equity markets globally. Those collective investment schemes which invest in equity

markets globally will be established as UCITS under the Directive in any EU Member State. The Fund may invest up to 10%

of its assets in transferable securities that are not listed, traded or dealt in on regulated markets. These transferable securities may

include equities, units of collective investment schemes (including exchange traded Funds) which are not UCITS, or any other

transferable security which is a permitted investment under the Regulations. Furthermore, the Fund may hold ancillary liquid

assets.

The base currency of the Fund is U.S. Dollar. The performance benchmark against which the Fund‟s performance is measured is the MSCI World Free Net Total Return

Index*. Class A US$ Institutional of the Fund launched on 6 March 2014. Class B US$ Institutional Shares of the Fund are also

available.


Performance

The Fund was down 4.5% on a net basis over the six months versus the MCSI World Free Net Total Return Index which fell

3.2%. The fund benefited from strong stock selection in the energy sector, this was outweighed by weak stock selection in the

information technology, utilities and consumer discretionary sectors.

Review

Having peaked in late May, the index sold off sharply in August before recovering the majority of those losses in October.

The only major market to record positive returns over the six month period was the US, with the MSCI USA generating a

slight positive return of +0.4%. The US Dollar continued to be strong especially against emerging market currencies, over the

six months it appreciated 28% against the Brazilian Real and 23% against the Russian Rouble. Economic data from the US

continues to surprise on the upside; the futures market now suggests that an increase in the Fed Funds rates will occur within

the next six months. Over the period the MSCI Emerging Markets index fell 17.6% as stocks in the materials and

commodities sectors underperformed and emerging market currencies suffered steep declines.


Global Equity Wealth Creation Fund (continued)

38


Review (continued)

On a sector basis the consumer staples sector was the best performing sector over the six months, closely followed by the

technology sector. Large consumer technology stocks enjoyed strong periods of performance, with Amazon returning 48%

over the period as sales and earnings exceeded analysts‟ estimates. Energy was the worst performing sector, falling -16.8%

over the six months as crude oil prices declined to test new lows in August. The materials sector also performed poorly as

commodity prices declined.

Outlook

The objective of the fund is to provide capital growth through highly diversified investments in global equities. The fund has

exposure to each sector on the basis of where the managers believe superior wealth creating strategies are being pursued by

corporate management. The MCSI World Free Net Total Return Index is the benchmark against which the performance of

the Fund is measured.

The Fund is focused on identifying wealth creating companies and diversifying the exposure across sectors and geographies.

It is our belief that successful identification of these businesses will generate above market returns with below market risk

over the long term for our clients.

W Kenney

November 2015


benchmark.

Global Equity Wealth Creation Fund Top 5 Investments as at 31 October 2015


4,070 Exxon Mobil Corp. 334,676 3.10%

2,200 Apple, Inc. 265,144 2.46%

3,380 Wells Fargo & Corp. 186,137 1.73%

246 Alphabet Inc. 179,761 1.67%

3,360 Microsoft Corp. 179,256 1.66%

1,144,974 10.62%

Global Equity Wealth Creation Fund Portfolio Analysis as at 31 October 2015 Fair Value USD % Total Assets




Cash 31,622 0.29%


Total assets 10,898,466 100.00%



39



Fair Value

USD % Net Assets

Equity Investment

Basic Materials (2015*: 3.84%, $417,821)

1,060 BASF SE 85,744 0.80%

4,010 BHP Billiton Plc 64,867 0.60%

640 EI du Pont de Nemours & Co. 40,538 0.38%

1,100 First Quantum Minerals Ltd. 5,828 0.05%

1,260 GoldCorp., Inc. 16,875 0.16%

950 International Paper Corp. 40,822 0.38%

880 Potash Corp. of Saskatchewan, Inc. 18,415 0.17%

1,910 Steel Dynamics, Inc. 35,431 0.32%

82 Syngenta AG 27,535 0.26%

336,055 3.12%

Building Materials (2015*: 0.39%, $42,643)

2,320 CRH Plc 63,221 0.59%

Chemicals (2015*: 0.92%, $100,303)

3,000 Kansai Paint Co., Ltd. 46,119 0.43%

700 Nitto Denko Corp. 45,450 0.42%

91,569 0.85%

Communications (2015*: 9.63%, $1,048,434)

246 Alphabet Inc. 179,761 1.67%

230 Amazon.com, Inc. 144,061 1.34%

1,530 CenturyLink, Inc. 42,947 0.40%

2,540 Cisco Systems, Inc. 73,990 0.69%

1,330 Comcast Corp. 83,870 0.78%

2,300 Deutsche Telekom AG 42,718 0.40%

415 Facebook Inc. 43,525 0.40%

8,950 Koninklijke KPN NV 32,703 0.30%

93 LinkedIn Corp. 20,181 0.19%

470 Omnicom Group, Inc. 35,400 0.33%

38 Priceline Group, Inc./The 54,175 0.50%

520 Rogers Communications, Inc. 20,949 0.19%

10,000 Singapore Telecommunications Ltd. 28,353 0.25%

700 SoftBank Corp. 39,460 0.37%

9,990 Spark New Zealand Ltd. 22,566 0.21%

2,380 Telefonica SA 31,252 0.29%

860 Time Warner, Inc. 64,904 0.60%

2,230 Verizon Communications, Inc. 103,450 0.96%

1,920 Vivendi SA 46,500 0.43%

1,110,765 10.30%



40


Shares/Par Security description Fair Value

USD % Net Assets


Consumer, Cyclical (2015*: 10.30%, $1,121,573)

96 AutoZone, Inc. 75,217 0.70%

1,000 Bandai Namco Holdings, Inc. 24,753 0.23%

450 Bayerische Motoren Werke AG 46,072 0.43%

460 Berkeley Group Holdings Plc 23,348 0.22%

670 BorgWarner, Inc. 27,859 0.26%

420 Casey's General Stores Inc. 44,764 0.42%

515 Costco Wholesale Corp. 81,494 0.75%

1,350 Crown Resorts Ltd. 10,823 0.10%

620 CVS Health Corp. 64,356 0.60%

1,600 Daihatsu Motor Co., Ltd. 19,776 0.18%

13,433 Entertainment One Ltd. 45,625 0.42% 2,290 Ford Motor Corp. 33,709 0.31%

395 Fossil Group, Inc. 20,935 0.19%

2,300 ITOCHU Corp. 29,058 0.27%

880 Kohl's Corp. 39,222 0.36%

500 Lawson, Inc. 37,229 0.35%

300 Lear Corp. 37,092 0.34%

1,100 Mattel, Inc. 27,082 0.25%

680 Nokian Renkaat OYJ 25,394 0.24%

180 Panera Bread Co. 32,344 0.30%

300 Ralph Lauren Corp. 33,093 0.31%

422 Sodexo 37,181 0.34%

1,510 Texas Roadhouse, Inc. 53,061 0.49%

940 TJX Cos, Inc./The 68,676 0.64%

1,800 Toyota Motor Corp. 108,550 1.01%

880 VF Corp. 59,937 0.56%

285 Whirlpool Corp. 46,384 0.43%

110 Wynn Resorts Ltd. 7,689 0.07%

1,160,723 10.77%

Consumer, Non-cyclical (2015*: 21.52%, $2,341,344)

2,500 Abcam Plc 22,869 0.21%

205 Allergan Plc 62,525 0.58%

230 Amgen, Inc. 36,908 0.34%

660 Baxalta Inc. 22,737 0.20%

660 Baxter International, Inc. 24,803 0.23%

860 Bayer AG 113,448 1.05%

155 Biogen, Inc. 45,525 0.42%

540 Bright Horizons Family Solutions, Inc. 34,852 0.32%

1,845 British American Tobacco Plc 109,685 1.02%

1,140 Church & Dwight Co., Inc. 98,530 0.91%



41



Fair Value

USD % Net Assets


Consumer, Non-cyclical (2015*: 21.52%, $2,341,344)

(continued)

1,190 Colgate-Palmolive Co. 82,384 0.76%

600 Colruyt SA 29,743 0.28%

1,090 DH Corp. 28,998 0.27%

2,040 Diageo Plc 58,344 0.54%

590 Express Scripts Holding Corp. 51,419 0.48%

990 Fresenius SE & Co KGaA 71,902 0.67%

835 Gilead Sciences, Inc. 91,182 0.85%

1,180 Grifols SA 54,322 0.50%

420 Heineken NV 38,337 0.36%

270 Henry Schein, Inc. 40,730 0.38%

1,640 Johnson & Johnson 166,263 1.54% 450 L'Oreal SA 81,868 0.76%

400 McGraw Hill Financial, Inc. 37,704 0.35%

500 Miraca Holdings,Inc. 22,412 0.21%

890 Mylan NV 40,735 0.38%

2,030 Nestle SA 155,269 1.44%

2,200 Nihon Kohden Corp. 43,207 0.40%

1,180 Novartis AG 107,685 1.00%

1,480 Novo Nordisk A/S 80,101 0.74%

2,600 Park24 Co Ltd. 54,905 0.51%


395 Roche Holding AG 107,462 1.00%

2,500 Santen Pharmaceutical Co., Ltd. 34,241 0.32%

860 St Jude Medical, Inc. 54,662 0.51%

1,100 Sysco Corp. 45,969 0.43%

500 Sysmex Corp. 28,928 0.27%

500 Takeda Pharmaceutical Co., Ltd. 24,475 0.23%

1,130 Tyson Foods, Inc. 49,551 0.46%

785 UnitedHealth Group, Inc. 93,972 0.87%

1,780 Wesfarmers Ltd. 49,855 0.46%

316 WEX, Inc. 27,492 0.25%

2,529,599 23.46%

Energy (2015*: 7.56%, $823,818)

1,420 Canadian Natural Resources Ltd. 32,737 0.30%

1,420 Continental Resources, Inc. 47,272 0.44%

520 Enbridge, Inc. 22,138 0.21%

4,070 Exxon Mobil Corp. 334,676 3.10%

1,200 Halliburton Corp. 45,828 0.42%

310 Helmerich & Payne, Inc. 17,121 0.16%

670 HollyFrontier Corp. 33,011 0.31%



42



Fair Value

USD % Net Assets


Energy (2015*: 7.56%, $823,818)

640 National Oilwell Varco, Inc. 23,309 0.22%

710 Occidental Petroleum Corp. 52,639 0.49%

980 PDC Energy Inc. 59,212 0.55%

1,260 Suncor Energy, Inc. 36,059 0.33%

800 Valero Energy Corp. 52,648 0.49%

840 Woodside Petroleum Ltd. 17,611 0.16%

774,261 7.18%

Engineering & Construction (2015*: 0.30%, $32,664)

740 Jacobs Engineering Group, Inc. 28,875 0.27%

Financial (2015*: 18.84%, $2,053,812)

410 ACE Ltd. 47,257 0.44%

1,750 Admiral Group Plc 43,512 0.40%

205 Affiliated Managers Group, Inc. 36,855 0.34%

8,200 AIA Group Ltd. 48,196 0.45%

1,150 American Express Corp. 85,319 0.79%

420 American Tower Corp. 42,823 0.40%

1,960 AXA SA 52,294 0.49%

9,220 Banco Santander SA 25,941 0.24%

1,800 Bank of America Corp. 30,744 0.29%

730 Berkshire Hathaway, Inc. 100,674 0.93%

1,170 Brookfield Asset Management, Inc. 41,496 0.38%

1,300 Credit Agricole SA 16,340 0.15%

1,320 Credit Suisse Group AG 32,933 0.31%

300 Daito Trust Construction Co., Ltd. 32,697 0.30%

3,000 DBS Group Holdings Ltd. 37,002 0.34%

740 Franklin Resources, Inc. 29,674 0.28%

286 Goldman Sachs Group, Inc. 54,329 0.50%

12,460 GPT Group 42,151 0.38%

1,080 Great-West Lifeco, Inc. 27,747 0.26%

12,000 Hang Lung Properties Ltd. 29,389 0.27%

8,800 HSBC Holdings Plc 68,640 0.64%

1,200 Hulic Co Ltd. 11,296 0.10%

670 Industrial Alliance Insurance & Financial Services, Inc. 21,389 0.20%

8,260 Intesa Sanpaolo SpA 28,826 0.27%

220 Jones Lang LaSalle, Inc. 36,632 0.34%

2,320 JPMorgan Chase & Co. 151,241 1.40%

330 KBC Groep NV 19,980 0.19%

1,260 Land Securities Group Plc 25,914 0.24%



43



USD % Net Assets


Financial (2015*: 18.84%, $2,053,812)

37,100 Lloyds Banking Group Plc 41,552 0.39%

1,501 London Stock Exchange Group Plc 58,584 0.54%

680 Marsh & McLennan Co., Inc. 38,277 0.36%

1,170 MetLife, Inc. 59,658 0.55%

1,100 MS&AD Insurance Group Holdings Inc. 32,798 0.30%

1,000 National Australia Bank Ltd. 21,428 0.20%

670 Regency Centers Corp. 45,841 0.43%

400 Societe Generale SA 18,489 0.17%

520 State Street Corp. 36,291 0.34%

1,400 Sumitomo Mitsui Financial Group, Inc. 56,450 0.52%

1,000 Suruga Bank Ltd. 19,905 0.18%

3,210 Svenska Handelsbanken AB 43,805 0.41%

370 Swiss Re AG 34,571 0.32%

2,230 Toronto-Dominion Bank/The 93,516 0.87%

3,380 Wells Fargo & Corp. 186,137 1.73%

3,290 Westpac Banking Corp. 73,303 0.68%

710 Weyerhaeuser Corp. 20,711 0.19%

164 Zurich Insurance Group AG 43,439 0.40%

2,146,046 19.90%

Industrial (2015*: 8.47%, $920,059)

590 AGCO Corp. 28,704 0.26%

710 AMETEK, Inc. 38,809 0.36%

720 Andritz AG 36,322 0.34%

1,260 Avnet, Inc. 56,471 0.52%

320 B/E Aerospace, Inc. 15,216 0.14%

2,100 Corning Inc. 39,564 0.37%

450 Cummins, Inc. 46,512 0.43%

400 East Japan Railway Co. 38,366 0.36%

400 General Dynamics Corp 59,992 0.56%

3,800 Konica Minolta Inc. 39,366 0.37%

1,230 Legrand SA 67,322 0.62%

3,000 MISUMI Group, Inc. 39,520 0.37%

800 Old Dominion Freight Line, Inc. 50,400 0.47%

1,000 Omron Corp. 33,452 0.31%

880 Pentair Plc 48,646 0.45%

6,870 PostNL NV 28,123 0.26%

750 Renishaw Plc 21,998 0.20%

300 Rinnai Corp. 23,956 0.22%

3,420 Sandvik AB 33,758 0.31%

300 Snap-on Inc. 49,422 0.46%



44



USD % Net Assets


Industrial (2015*: 8.47%, $920,059)

2,020 Ultra Electronics Holdings Plc 52,659 0.49%

880 Union Pacific Corp. 79,640 0.74%

640 United Technologies Corp. 63,373 0.59%

3,100 Ushio, Inc. 43,025 0.40%

1,034,616 9.60%

Mining (2015*: 0.17%, $18,222)

1,120 Orica Ltd. 12,951 0.12%

Miscellaneous Manufacturing (2015*: 1.76%, $192,650)

370 3M Co. 58,319 0.54%

3,230 General Electric Corp. 94,768 0.88%

275 Roper Technologies, Inc. 50,669 0.47%

203,756 1.89%

Technology (2015*: 8.08%, $879,422)

500 ANSYS Inc. 47,740 0.44%

2,200 Apple, Inc. 265,144 2.46%

2,210 ARM Holdings Plc 34,920 0.33%

330 Bechtle AG 30,496 0.28% 105 Constellation Software Inc./Canada 45,093 0.42%

1,698 Convergys Corp. 44,573 0.41%

2,000 IT Holdings Corp. 49,888 0.46%

480 Jack Henry & Associates, Inc. 37,291 0.35%

650 KLA-Tencor Corp. 43,108 0.40%

3,360 Microsoft Corp. 179,256 1.66%

3,300 ON Semiconductor Corp. 33,957 0.31%

2,100 Oracle Corp. 81,585 0.76%

580 Skyworks Solutions, Inc. 43,280 0.40%

2,250 Taiwan Semiconductor Manufacturing Co., Ltd. 49,073 0.46%

985,404 9.14%

Utilities (2015*: 2.87%, $312,108)

1,120 AES Corp. 12,320 0.11%

1,260 CenterPoint Energy, Inc. 23,348 0.22%

7,410 Centrica Plc 25,782 0.24%

3,100 E.ON SE 32,452 0.30%

880 Edison International 53,354 0.49%

400 Entergy Corp. 27,000 0.25%

1,830 Fortum OYJ 27,296 0.25%

880 Public Service Enterprise Group, Inc. 36,458 0.34%



45



USD % Net Assets


Utilities (2015*: 2.87%, $312,108)

1,330 Questar Corp. 27,544 0.26%

5,000 Tokyo Gas Co., Ltd. 24,956 0.23%

290,510 2.69%


Preferred Shares

Consumer, Non-cyclical (2015*: 0.60%, $65,862)

550 Henkel AG & Co KGaA 59,580 0.55%

Total Preferred Shares (Cost £59,910) 59,580 0.55%


£10,958,491) 10,827,931 100.43%

Other Liabilities in Excess of other Assets (46,306) (0.43%)




Alternatives Fund

46

The investment objective of Alternatives Fund (the “Fund”) is to achieve long-term capital growth through investment of up to 100% of its net asset value in a diversified portfolio of equities, structured products, deposits, cash, money market instruments and collective investment schemes, which may themselves invest in equities and alternative asset classes such as hedge Funds, real estate, private equity Funds and commodities to the extent that these are permitted under the Regulations. Not more than 20% of the net asset value of the Fund will be invested in securities of issuers established in emerging market

countries.The Fund‟s investment strategy shall not be specific to any particular industry sector or geographic region. The

Fund seeks to invest in asset classes that demonstrate little or no correlation with traditional fixed income or equity markets.

The Investment Manager seeks to identify investments that have the potential to produce positive real returns regardless of

the direction of the bond and equity markets. The Investment Manager employs quantitative screens to analyse an underlying

collective investment schemes or other issuer's nominal returns, volatility of returns and the correlation of the returns with

traditional asset classes. A qualitative approach is then used when interviewing prospective managers of underlying collective

investment schemes or issuers in order to gain a thorough understanding of how past performance has been achieved, the

investment process and to ascertain whether that process is repeatable.

The Fund may invest in equity securities issued by companies with any market capitalisation which may include ordinary

shares or common stock, preference shares, American depository receipts, European depositary receipts and global

depository receipts which are listed, traded or dealt in on a regulated market. The Fund may invest up to 20% of its net asset

value in debt securities convertible into shares. The Fund may not invest more than 20% of its net asset value in any one

collective investment scheme. The collective investment schemes in which the Fund invests will be established as UCITS

under the Directive in any EU Member State and/or UCITS equivalent schemes. Investment in UCITS equivalent schemes

shall be subject to an aggregate limit of 30% of the Fund‟s net asset value. The underlying collective investment schemes in

which the Fund may invest will provide exposure to one or more of the asset classes which form part of the Fund‟s

investment policy. Investment in structured products shall be subject to an aggregate limit of 20% of the Fund‟s net asset

value. The structured products shall comprise securities in which the issuer undertakes to provide a return to investors based

on the performance of a reference asset such as an equity, bond, financial derivative instrument, index or collective

investment scheme. Examples of such structured products include: (i) notes which give exposure to a basket of equity

securities of companies from a particular industry sector over a specified term; or (ii) certificates which give a structured

return based on the performance of a reference index over a specified term. Issuers of structured products are typically banks,

investment firms, brokers or other institutions. The structured products may employ leverage. Please see the section in the

Prospectus entitled “Leverage” for a discussion of the potential leverage level of the Fund. The Fund may utilise any of the

financial derivative instruments in the Prospectus for efficient portfolio management and/or investment purposes. The Fund

may acquire shares in another sub-fund of the Company by investing up to 20% of its net asset value in that other sub-fund.

However, the Fund may not invest in a sub-fund of the Company which itself holds Shares in other sub-funds of the

Company. Where the Fund invests in another sub-fund of the Company or any other Fund managed or advised by the

Investment Manager, it may not charge an annual management and/or investment management fee in respect of the portion of its

assets invested in the other sub-fund/fund. The Fund may invest up to 10% of its assets in transferable securities that are not

listed, traded or dealt in on regulated markets. These transferable securities may include equities, units of collective investment

schemes (including exchange traded funds) which are not UCITS, or any other transferable security which is a permitted

investment under the Regulations. Furthermore, the Fund may hold ancillary liquid assets where in view of market

circumstances the Investment Manager believes that it would not be in the interests of Shareholders for the Fund to be fully

invested or where the Fund needs to maintain liquidity to meet repurchase requests. The base currency of the Fund is Sterling. The performance benchmark against which the Fund‟s performance is measured is the BBA LIBOR 3 Month GBP*. The

benchmark comparison for the period was a rise of 0.29%. Class A Stg£ and Class P Stg£ Shares of the Fund launched on 2 March 2014. Class B Stg£ Shares of the Fund are also

available.


Alternatives Fund (continued)

47


Performance

The Fund returned a modest loss of -1.19% over the six months to 31st October 2015, against the benchmark (ICE Libor 1

Month) which returned 0.29%, in what turned out to be an eventful period in global markets.

Review

Markets experienced heightened volatility during the third quarter of the year initially on concerns over the extent of the

slowdown in China, triggered by the government‟s decision to devalue the renmimbi, and the Federal Reserve‟s decision to

delay raising US interest rates. After a period of relative stability, risk assets sold off sharply in August only to recover

equally sharply in October. Not surprisingly, in an environment where global equity markets experienced two marked

reversals in trend within a short space of time the performance of our active long short and macro managers was decidedly

mixed. Those who were positioned defensively protected capital in the sell-off but did not participate in October‟s rally,

whilst those who were more bullishly positioned suffered in the sell-off but did participate in the recovery. In that regard,

there was a clear case of managers cancelling each other out over the period. Equally frustrating were the mixed returns from

our asset backed income investments. Whilst our infrastructure and property holdings produced positive returns over the

period, our aircraft leasing investments fell in value on renewed concerns over the future residual values of Airbus A380

super jumbos.

Outlook

Investors should prepare for continuing volatility as markets adjust to monetary tightening for the first time in almost seven

years in the US and continuing quantitative easing in Europe and Japan. A further and continuing factor, which was very

evident during the third quarter, is the influence of algorithm and systematic trading strategies which have the effect of

distorting short term market movements.

T Satchell

November 2015


benchmark.

Alternatives Fund Top 5 Investments as at 31 October 2015


1,171,566 GCP Student Living Plc 1,628,477 7.23%

15,000 Spinnaker Emerging Markets Macro Fund 1,490,850 6.62%

15,000 Keynes Dynamic Beta Strategy Fund 1,462,500 6.50%

1,516 Alpha UCITS SICAV - Silvaris Global Equity Fund 1,445,955 6.42%

1,478 Alpha UCITS SICAV - Quantmetrics Multi Strategy Fund 1,414,968 6.29%

7,442,750 33.06%

Alternatives Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP % Total Assets




Cash 172,997 0.77%


Total assets 22,589,822 100.00%



48



Equity Investment


700,000 Amedeo Air Four Plus Ltd. 710,500 3.15%

307,600 Doric Nimrod Air Three Ltd. 307,600 1.37%

1,018,100 4.52%

Real Estate Investment Trust (2015*: 0.91%, £188,570)

1171566 GCP Student Living Plc 1,628,477 7.23%

154,172 International Public Partnerships Ltd. 180,604 0.80%

1,809,081 8.03%


Investment Fund

Alternative Investment (2015*: 14.15%, £2,937,643)

907 JL Equity Market Neutral 1,037,136 4.61%

10,169

Lyxor Dimension IRL plc - Lyxor/Tiedemann Arbitrage Strategy

Fund 995,403 4.42%

7,530

MontLake UCITS Platform plc - Dunn WMA Institutional UCITS

Fund 982,164 4.36%

15,000 Spinnaker Emerging Markets Macro Fund 1,490,850 6.62%

4,505,553 20.01%

Asset Allocation Fund (2015*: 30.80%, £6,390,242)

1,478 Alpha UCITS SICAV - Quantmetrics Multi Strategy Fund 1,414,968 6.29%

410,000 CF Odey Absolute Return Fund 1,348,285 5.99%

875,000 JPM Multi-Asset Macro Fund 1,164,625 5.17%

6,120 Odey Investments Plc - Odey Odyssey Fund 919,376 4.08%

1,203,000

Standard Life Investment Co - Global Absolute Return Strategies

Fund 1,013,888 4.50%

5,861,142 26.03%

Closed-end Funds (2015*: 2.84%, £588,564)

116,731 3i Infrastructure Plc 200,777 0.89%

156,692 GCP Infrastructure Investments Ltd. 189,284 0.84%

128,725 HICL Infrastructure Co., Ltd. Fund 199,009 0.88%

15,000 Keynes Dynamic Beta Strategy Fund 1,462,500 6.50%

2,051,570 9.11%

Debt Fund (2015*: 10.36%, £2,148,099)

95,700 Neuberger Berman Global Bond Absolute Return Fund 950,301 4.22%



49


Shares/Par Security description Fair Value GBP % Net Assets Investment Fund (continued)

Equity Fund (2015*: 19.46%, £4,037,706)

1,516 Alpha UCITS SICAV - Silvaris Global Equity Fund 1,445,955 6.42%

505,615 FP Argonaut European Absolute Return Fund 1,073,855 4.77%

146,000

Goldman Sachs Structured Investments SICAV - GS Equity Risk

Premia Long/Short Port 985,119 4.38%

9,590 Verrazzano SICAV - European Long-Short 1,023,855 4.55%

4,528,784 20.12%

Property Funds (2015*: 7.84%, £1,626,709)

1,150,000 Channel Islands Property Fund Ltd. 1,108,336 4.92%


Preferred Shares


278,132 Doric Nimrod Air Two Ltd. 579,905 2.58%



£21,864,893) 22,412,772 99.54%





Cautious Income Fund

50

The investment objective of Waverton Cautious Income Fund (the “Fund”) is to achieve capital growth and generate income through investment of up to 100 per cent. of its Net asset value in a diversified portfolio of equities, fixed and/ or floating rate, global government and corporate debt securities, structured products, deposits, cash, money market instruments and collective investment schemes which may themselves invest in the foregoing asset Classes and commodities to the extent that these are permitted by the Regulations. The Fund‟s investment strategy shall not be specific to any particular industry sector or geographic region. The Investment

Manager seeks to identify a combination of investments that have the potential to produce positive real returns over a

medium to long term investment horizon, while providing income through the investment cycle. The Investment Manager

employs quantitative screens to analyse an underlying collective investment scheme‟s or other issuer's nominal returns,

volatility of returns and the correlation of the returns with traditional asset Classes. A qualitative approach is then used when

interviewing prospective managers of underlying collective investment schemes or issuers in order to gain a thorough

understanding of how past performance has been achieved, the investment process and to ascertain whether that process is

repeatable. The Fund may invest in equity securities issued by companies with any market capitalisation which may include ordinary shares or common stock, preference shares, American depository receipts, European depositary receipts and global depository receipts which are listed, traded or dealt in on a regulated market. The Fund may invest up to 20 per cent. of its net asset value in debt securities, such as OECD government or supranational debt securities, corporate debt securities, bankers‟ acceptances and commercial and in convertible debt securities. The debt securities in which the Fund invests shall not be from any particular industry sector. The debt securities in which the Fund invests shall be predominantly investment grade rated by a rating agency such as Moody‟s or Standard & Poor‟s. Not more than 20 per cent. of the net asset value of Fund will be invested in securities of issuers established in emerging market countries. The Fund may not invest more than 20 per cent. of its Net asset value in any one collective investment scheme. The collective investment schemes in which the Fund invests will be established as UCITS under the Directive in any EU Member State and/or UCITS equivalent schemes. Investment in UCITS equivalent schemes shall be subject to an aggregate limit of 30 per cent. of the Fund‟s net asset value. The underlying collective investment schemes in which the Fund may invest will provide exposure to one or more of the asset Classes which form part of the Fund‟s investment policy. Investment in structured products shall be subject to an aggregate limit of 20 per cent. of the Fund‟s net asset value. The structured products shall comprise securities in which the issuer undertakes to provide a return to investors based on the performance of a reference asset such as an equity, debt security, financial derivative instrument, index or collective investment scheme. Examples of such structured products include: (i) notes which give exposure to a basket of equity securities of companies from a particular industry sector over a specified term; or (ii) certificates which give a structured return based on the performance of a reference index over a specified term. Issuers of structured products are typically banks, investment firms, brokers or other institutions. The structured products may employ leverage. Please see the section below entitled “Leverage” for a discussion of the potential leverage level of the Fund. The Fund may utilise any of the financial derivative instruments described in the section entitled “Investment Techniques and Instruments” for efficient portfolio management and/or investment purposes. The Fund may acquire shares in another sub-fund of the Company by investing up to 20 per cent. of its net asset value in that other sub-fund. However, the Fund may not invest in a sub-fund of the Company which itself holds Shares in other Sub-Funds of the Company. Where the Fund invests in another sub-fund of the Company or any other Fund managed or advised by the Investment Manager, it may not charge an annual management and/or investment management fee in respect of the portion of its assets invested in the other sub-fund/fund. The Fund may invest up to 10 per cent. of its assets in transferable securities that are not listed, traded or dealt in on regulated markets. These transferable securities may include equities, units of collective investment schemes (including exchange traded funds) which are not UCITS, or any other transferable security which is a permitted investment under the Regulations. Furthermore, the Fund may hold ancillary liquid assets where in view of market circumstances the Investment Manager believes that it would not be in the interests of Shareholders for the Fund to be fully invested or where the Fund needs to maintain liquidity to meet repurchase requests. The base currency of the Fund is Sterling. The performance benchmark against which the Fund‟s performance is measured is the combined performance of the following benchmarks, with the contribution of such benchmark to the overall performance being indicated in the brackets after its name: FTSE All-World Index (total return) (45 per cent.), FTSE Actuaries UK Gilts Series (total return) (35 per cent.) and GBP 1 month Libor (20 per cent.)*. Class B Stg£ and Class P Stg£ Shares of the Fund launched on 6 October 2014.


Cautious Income Fund (continued)

51


Performance

The Fund struggled over the period (performance was -2.22% versus the benchmark of -1.76%), as global risk assets sold off

from their peak in April. As mentioned in the last update, the investment objective of the fund is to “achieve capital growth

and generate income”. While we believe we can generate capital growth that will at least keep up with inflation over time

(indeed, we have generated positive absolute performance since inception), dependability and consistency of income is

paramount, and we are pleased to report that the fund has paid three dividends to date, annualising at ~3.8% on a forward

looking basis (according to Citi data).

Review

Early April saw risk assets continue the ascension they had been on since the beginning of the year, however they reached a

high on the 28th

of that month, beginning a decline that culminated in a sharp sell-off in August. In the initial weak period for

equity markets, duration bonds offered little protection, only really providing diversification benefit in the August drawdown.

Since the sharp sell-off equity markets have cautiously retrenched much of the lost ground and volatility has come back to

post-Global Financial Crisis average.

Our underweight to duration bonds hurt performance during the teeth of the drawdown, as did our overweight to equities, in

particular Europe and Japan. Our underweight to North American equities also hurt performance in the period. However,

despite volatile markets we have maintained an overweight equity stance on valuation grounds, as well as our preference for

Japanese and European equities based on our outlook for growth in both regions. Such positioning has aided the Fund in the

retrenchment of markets: Japanese and European equities bounced notably, while duration bonds have lagged.

The Fund‟s allocation to Alternative asset classes has also contributed positive relative performance over the period. The

allocation helped limit the drawdown of the fund, as well as providing positive capital growth and income since inception.

Outlook

We remain cautiously optimistic about the performance of risk assets, particularly relative to duration bonds. The following

six months could conceivably see the first Federal Reserve rate-hike since the Global Financial Crisis (which may have a

negative effect on performance of the Fund), however we believe the move will be small, well flagged and followed by a

very shallow path upwards (ceteris paribus). We continue to hold an overweight equity position, however are currently

running a low beta approach, mindful of valuations and other macroeconomic risks.

J Mee

November 2015


benchmark.



52

Cautious Income Fund Top 5 Investments by issuer as at 31 October 2015

Shares/Par Security Description Fair Value GBP

% Net Assets

777,582 GPC 1,010,394 8.91%

1,236,304 Schroder 781,401 6.89%

62,200

Waverton Investment Funds Plc - Waverton Sterling Bond

Fund 592,268 5.22%

10,269 iShares Core US Growth ETF 553,193 4.88%

9,109 Vanguard Dividend Appreciation ETE 469,694 4.14%

3,406,950 30.04%

Cautious Income Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP

% of Total Assets

Transferable securities and money market instruments admitted to official stock

exchanges or traded on a regulated market 1,823,110 15.89%


Cash 1,258,204 10.96%


Total assets 11,476,561 100.00%



53



Fair Value

GBP % Net Assets

Corporate Bonds

Financial (2015*: 1.46%, £147,915)

320,000 SGA Societe Generale Acceptance NV, 3.89% , due 10/02/20 306,048 2.70%

Savings & Loans (2015*: -%, £-)

104,000 Nationwide Building Society, 6.88%, due 11/03/49 104,778 0.92%

Total Corporate Bonds (Cost £407,838) 410,826 3.62%


Government Bonds - (2015*: 4.72%, £480,057)

136,609 United Kingdom Gilt, 2.75%, due 07/09/24 146,882 1.30%

80,000 United Kingdom Gilt, 3.25%, due 22/01/44 89,740 0.79%

223,800 United States Treasury Note/Bond, 2.38%, due 15/08/24 148,870 1.31%

120,000 United States Treasury Note/Bond, 3.63%, due 15/02/44 88,802 0.78%

Total Government Obligation (Cost £447,588) 474,294 4.18%

Equity Investment

Equity Fund (2015*: -%, £-)

150,651 International Public Partnerships Ltd. 198,407 1.75%

Financial (2015*: 2.04%, £207,297)

18,831 International Public Partnerships Ltd. 132 0.00%

Financial Fund (2015*: -%, £-)

25,852 P2P Global Investments Plc/Fund 255,935 2.25%

246,204 Sequoia Economic Infrastructure Income Fund Ltd. 8,925 0.08%

264,860 2.33%

Real Estate Investment Trust (2015*: %, £-)

390,522 GCP Student Living Plc 542,826 4.79%

Total Equity Investment (Cost £984,537) 1,006,225 8.87%

Preferred Shares

Financial - (2015*: 1.93%, £195,705)

92,314 Doric Nimrod Air Two Ltd. 192,475 1.70%




54



Fair Value

GBP % Net Assets

Investment Fund

Alternative Investment (2015*: 1.05%, £106,849)

1,046

Lyxor Dimension IRL plc - Lyxor/Tiedemann Arbitrage Strategy

Fund 101,970 0.90%

1,599

MontLake UCITS Platform plc - Dunn WMA Institutional UCITS

Fund 208,576 1.84%

310,546 2.74%

Asset Allocation Fund (2015*: 1.06%, £107,825)

83,969 JPM Multi-Asset Macro Fund 111,090 0.98%

Debt Fund (2015*: 8.96%, £910,015)

62,200 Waverton Investment Funds PLC - Waverton Sterling Bond Fund 592,268 5.22%

Equity Fund (2015*: 51.10%, £5,190,942)

396,620 Artemis Global Income Fund 316,463 2.79%

27,902 BlackRock Global Funds - European Equity Income fund 287,182 2.53%

117,685 CF Morant Wright Nippon Yield Fund 299,179 2.63%

275,347

FP Argonaut Funds - FP Argonaut European Enhanced Income

Fund 420,354 3.71%

35,158 Goldman Sachs Structured Investments SICAV 352,146 3.11%

10,269 iShares Core US Growth ETF 553,193 4.88%

91,292 JPMorgan Fund ICVC - US Equity Income Fund 195,182 1.72%

3,718 RWC Funds - Global Enhanced Dividend Fund 347,186 3.06%

1,055,661 Schroder Asian Income Maximiser Fund 490,566 4.33%

180,643 Schroder European Alpha Income Fund 290,835 2.56%

305,939 Somerset Emerging Markets Dividend Growth Fund 322,704 2.85%

45,194 Source JPX-Nikkei 400 UCITS ETF USD Hedged 420,197 3.71%

188,749 TB Wise Evenlode Income Fund 313,474 2.76%

9,109 Vanguard Dividend Appreciation ETF 469,694 4.14%

6,884 WisdomTree Total Dividend Fund 328,816 2.90%

5,407,171 47.68%

Financial Fund (2015*: 13.75%, £1,397,038)

387,060 GCP Infrastructure Investments Ltd. 467,568 4.12%

46,068 Martin Currie Pacific Trust Plc 121,447 1.07%

295,445 Sequoia Economic Infrastructure Income Fund Ltd. 305,047 2.69%

894,062 7.88%



55



Fair Value

GBP % Net Assets

Real Estate Fund (2015*: 5.03%, £510,647)

486,000 Channel Islands Property Fund Ltd. 468,392 4.13%


Floating Rate Note

Diversified Financial Services - (2015*: -%, £-)

300,000 SG Issuer SA, 4.57%, due 10/04/20 292,140 2.58%

Total Floating Rate Note (Cost £300,000) 292,140 2.58%


£10,144,731) 10,159,489 89.58%




STATEMENT OF FINANCIAL POSITION

As at 31 October 2015

56

Asia Pacific Fund Global Equity Fund UK Fund

31 October 2015

20152015

30 April 2015 31 October 2015 30 April 2015 31 October 2015 30 April 2015

Notes USD USD GBP GBP GBP GBP

Current Assets: Financial assets at fair value through profit or loss, at cost 105,189,636 90,543,454

46,381,306 47,908,887

46,490,482

46,490,482

21,101,385 21,783,723

Financial assets at fair value through profit or loss, at fair value 1 93,447,600 94,651,378

50,365,164 59,525,178 23,620,493 25,270,447

Cash 8 5,669,206 6,114,691

2,178,428 2,797,179

1,235,242 837,378

Margins held with futures brokers - - - - - -

Dividends and interest receivable 96,837 105,612

69,965 120,815

66,277 162,243

Receivable from investments sold 24,414 932,305

- 4,419,752 - -

Unrealised gain on futures contracts 1 - - - - - -

Unrealised gain on options contracts 1 - - - - - -

Unrealised appreciation on forward currency contracts 1 18 - - - - -

Receivable from subscriptions due 49,384 17,687

145,616 53,860 -

- -

Receivable from investment manager 3 263 337 - - - -

Other assets - - - - - -

Total Assets 99,287,722 101,822,010

52,759,173 66,916,784

24,922,012 26,270,068

Liabilities (amounts falling due within one financial year):

Financial liabilities at fair value through profit or loss, at cost - - - - - - Financial liabilities at fair value through profit or loss, at fair value

vvalue vavalue

value

value value

1 - - - - - - Bank Overdraft 1,097,759 - - - - -

Distributions payable 4,351,215 77,784

158,630 162,665

274,001 192,260

Payable for investments purchased 2,510,531 687,426

– - 4,286,517 - -

Unrealised loss on futures contracts - - - - - -

Unrealised depreciation on forward currency contracts - 749

– - 2,308

- -

Payable for redemptions due - - 62,980 324,397

25,232 296,393

Accrued expenses:

Investment management fee 3 73,863 72,481

45,640 50,288

-

20,252 20,733

Performance fee 3 - - - - - -

Administration fee 3 6,301 19,828

900 6,561

1,039 5,023

Custodian and trustee fees 3 10,782 12,442

3,189 3,174 4,790 4,450

Transfer agency fee 3 2,640 12,687

3,647 6,489

2,666 4,235

Directors fees 4 1,655 659

777 234

344 133

Audit fee 5 2,554 8,305

1,557 4,930

2,825 4,780

Other liabilities 22,316 36,267

12,830 11,856

15,114 12,474

Total Liabilities (excluding net assets attributable to holders of

redeemable shares) 8,079,616 928,628 290,150 4,859,419 346,263 540,481

Net Assets attributable to holders of redeemable shares 91,208,106 100,893,382

52,469,023 62,057,365

24,575,749 25,729,587

The Statement of Financial Position are continued on pages 57 to 59.

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


STATEMENT OF FINANCIAL POSITION (continued)


57

European Fund Sterling Bond Fund Equity Fund

31 October 2015 30 April 2015 31 October 2015 30 April 2015 31 October 2015 30 April 2015

Notes EUR EUR GBP GBP GBP GBP

Current Assets: Financial assets at fair value through profit or loss, at cost - 1,134,660,123

126,189,655 115,643,196

46,490,482

46,490,482

122,867,445 112,400,583

Financial assets at fair value through profit or loss, at fair value 1 - 1,355,555,855

126,661,422 121,090,855 128,346,382 128,376,318 Cash 8 3,248,978 248,085,953

4,421,546 13,406,774

1,483,826 1,129,018

Margins held with futures brokers - - 1,826,437 - - -

Dividends and interest receivable - 2,588,047

2,521,973 2,832,315 242,522 46,826

Receivable from investments sold - 39,471,869

- - - -

Unrealised gain on futures contracts 1 - - - 385,000 - -

Unrealised gain on options contracts 1 - - 164,160 100,486 - -

Unrealised appreciation on forward currency contracts 1 - - 306,504 1,325,061 - -

Receivable from subscriptions due - 628,683

93,729 168,792

6,822 149,769

Receivable from investment manager 3 - 1,492 - 5,394 8,080 8,080

Other assets - - - - - 1,929

Total Assets 3,248,978 1,646,331,899

135,995,771 139,314,677

130,087,632 129,711,940


Financial liabilities at fair value through profit or loss, at cost - - - - - - Financial liabilities at fair value through profit or loss, at fair value

valuevalue value

1 - - - - - - Bank Overdraft - - - - - -

Distributions payable - 6,889,618 1,692,714 1,797,846 391,309 28,239

Payable for investments purchased - 22,521,016 - - - - Unrealised loss on futures contracts - - 204,544 312,246 - - Unrealised depreciation on forward currency contracts - - - 176,813 - 181,434

Payable for redemptions due - 1,431,563 187,396 166,685 322,124 -

Accrued expenses:

Investment management fee 3 2,958,395 1,429,065 80,732 82,882 88,460 88,126


Administration fee 3 2,065 103,081 4,885 20,988 4,163 18,728

Custodian and trustee fees 3 58,190 22,555 10,592 10,615 944 –

Transfer agency fee 3 13,089 28,929 4,118 9,664 6,488 9,217

Directors fees 4 1,063 5,894 1,554 676 1,735 451

Audit fee 5 12,282 5,598 5,077 4,592 5,078 4,592

Other liabilities 203,894 30,618 21,445 13,330 14,658 6,941


redeemable shares) 3,248,978 32,467,937 2,213,057 2,596,337 834,959 337,728

Net Assets attributable to holders of redeemable shares - 1,613,863,962

133,782,714 136,718,340

129,252,673 129,374,212

The Statement of Financial Position are continued on pages 58 to 59.





58

Global Bond Fund

Global Equity

Wealth Creation Fund Alternatives Fund

31 October 2015

2015

30 April 2015 31 October 2015 30 April 2015 31 October 2015 30 April 2015

Notes USD USD USD USD GBP GBP

Current Assets: Financial assets at fair value through profit or loss, at cost 88,989,505 90,624,756 10,958,491 10,289,750 21,864,893 18,093,002

Financial assets at fair value through profit or loss, at fair value 1 85,206,966 90,475,736 10,827,931 10,705,180 22,412,772 18,917,551 Cash 8 3,453,349 10,751,638 31,622 236,761 172,997 1,884,327

Margins held with futures brokers 1,957,978 - - - -

Dividends and interest receivable 1,760,825 1,969,624 13,359 17,871 2,977 39,892

Receivable from investments sold - - - 72,309 - -

Unrealised gain on futures contracts 1 - 262,997 - - - -

Unrealised gain on options contracts 1 - 58,125 - - - -

Unrealised appreciation on forward currency contracts 1 68,388 214,381 - - - -

Receivable from subscriptions due 85,290 169,904 - - 1,076 55,058

Receivable from investment manager 3 224 10,906 - - - -

Other assets - - 25,554 13,621 - 1,080

Total Assets 92,533,020 103,913,311 10,898,466 11,045,742

22,589,822 20,897,908


Financial liabilities at fair value through profit or loss, at cost - - - - - -

Financial liabilities at fair value through profit or loss, at fair value

vvaluevaluevaluevalue fair value 1 - - - - - -

Bank Overdraft - - -

Distributions payable 1,111,609 1,310,466 86,650 84,024 53,650 16,092

Payable for investments purchased - - - 48,036 - -

Unrealised loss on futures contracts 184,856 298,828 - - - -

Unrealised depreciation on forward currency contracts 1 275,773 2,115,937 - - - -

Payable for redemptions due 1 13,851 - - - 2,797 107,627

Accrued expenses:

Investment management fee 3 45,266 53,928 - - 8,001 7,314



Custodian and trustee fees 3 5,789 4,675 4,773 - - -

Transfer agency fee 3 4,372 12,530 - 6,100 46 5,399

Directors fees 4 1,273 374 147 42 351 61

Audit fee 5 3,506 8,211 9,781 7,648 1,603 4,967

Other liabilities 25,846 10,973 9,750 4,330 5,630 2,851


redeemable shares) 1,680,786 3,836,405 116,841 158,887 73,289 149,299

Net Assets attributable to holders of redeemable shares 90,852,234 100,076,906 10,781,625 10,886,855

22,516,533 20,748,609

The Statement of Financial Position are continued on page 59.





59


:

Cautious Income Fund Cautions Income Fund Total Company

31 October 2015 30 April 2015 31 October 2015 30 April 2015

Notes GBP GBP EUR EUR

Current Assets: Financial assets at fair value through profit or loss, at cost 10,144,731 8,922,550 713,908,727 1,753,305,565 Financial assets at fair value through profit or loss, at fair value 1 10,159,489 9,254,290 714,813,259 2,030,044,680

Cash 8 1,258,204 945,264 28,389,017 292,309,960 Margins held with futures brokers - 4,716,403 - Dividends and interest receivable 58,868 37,226 6,208,779 8,922,711 Receivable from investments sold - - 26,969 46,460,865 Unrealised gain on futures contracts 1 - - - 765,601 Unrealised gain on options contracts 1 - - 229,510 190,426 Unrealised appreciation on forward currency contracts 1 - - 504,085 2,017,770 Receivable from subscriptions due - 25,000 494,436 1,419,908 Receivable from investment manager 3 - - 13,327 30,107 Other assets - 11,268 28,665 31,847

Total Assets 11,476,561 10,273,048

755,424,450 2,382,193,875


Financial liabilities at fair value through profit or loss, at cost - - - -

Financial liabilities at fair value through profit or loss at fair value

iross,lossfavvaluev

1 - - - - Bank Overdraft - 1,212,639 - Distributions payable 109,529 90,555 9,876,875 11,357,975 Payable for investments purchased - - 2,773,258 29,085,897 Unrealised loss on futures contracts - - 490,172 697,344 Unrealised depreciation on forward currency contracts 1 - - 304,633 2,138,117 Payable for redemptions due 1 - - 854,894 2,915,262 Accrued expenses: Investment management fee 3 23,313 5,224 3,462,440 1,892,859 Performance fee 3 - - - - Administration fee 3 - - 41,972 224,453 Custodian and trustee fees 3 - - 109,052 62,986 Transfer agency fee 3 - - 44,553 105,153 Directors fees 4 536 - 11,865 8,998 Audit fee 5 1,129 2,796 53,925 63,927 Other liabilities 1,440 15,771 367,281 163,835

Total Liabilities (excluding net assets attributable to holders

of redeemable shares) 135,947 114,346 19,603,559 48,716,806

Net Assets attributable to holders of redeemable shares 11,340,614 10,158,702

735,820,891 2,333, 477,069


STATEMENT OF COMPREHENSIVE INCOME

For the half financial year ended 31 October 2015

60


for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014


Investment Income:

Dividend income 1 5,018,093 1,556,536 647,258 483,536 443,897 482,375

Withholding tax 1 (33,446) (196,715) (130,081) (106,361) (3,502) (2,396)

Interest income 1 - (1,655) - 932 - -

Margin Interest Income - - - - - -

Other income (3,745) (2,426) - 2,242 - 3

Net (loss)/gain on financial assets and liabilities at fair value

through profit or loss 1 (15,727,403) 107,812 (5,148,775) 1,288,878 (527,094) (1,139,905)

Total Income (10,746,501) 1,463,552 (4,631,598) 1,669,227 (86,699) (659,923)

Expenses: Investment management fee 3 470,470 471,800 290,426 264,082 126,171 134,124



Custodian & trustee fee 3 65,265 46,561 11,966 10,541 5,535 4,381


Directors fee 4 4,933 2,381 2,980 1,369 1,264 672

Audit fee 5 3,433 3,547 2,580 2,153 3,997 2,154

Legal fees 9,276 4,068 5,374 2,562 2,281 1,299

Transaction costs 1 608,384 172,310 37,922 183,800 74,791 39,013

Other expenses 24,300 27,863 12,826 8,975 7,159 6,638

Total Expenses 1,248,302 796,489 396,468 511,589 241,184 214,003

Net Investment (Loss)/Gain (11,994,803) 667,063 (5,028,066) 1,157,638 (327,883) (873,926)

Finance Costs: Dividends to holders of redeemable shares 14 (4,351,215) (879,721) (158,630) (52,560) (274,001) (304,992)

Net (Decrease)/Increase in Net Assets Attributable to Holders

of Redeemable Shares Resulting from Operations (16,346,018) (212,658) (5,186,696) 1,105,078 (601,884) (1,178,918)

Gains and losses arise solely from continuing operations. There were no gains or losses other than those reflected above.

The Statement of Comprehensive Income are continued on pages 61 to 63.



STATEMENT OF COMPREHENSIVE INCOME (continued)


61

European Fund1 Sterling Bond Fund Equity Fund

for the

period

to 30 June

2015

for the half

financial year

ended 31 October

2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

Note EUR EUR GBP GBP GBP GBP

Investment Income:

Dividend income 1 13,210,278 10,343,167 - - 508,395 -

Withholding tax 1 (1,787,050) (2,441,537) (129,946) (31,576) (7,769) -

Interest income 1 - (1,464) 3,691,122 3,617,975 529,463 116

Margin interest income - - 1,457 - - -

Other income 109 1,593 (9) 26,616 - 996


through profit or loss 1 (31,520,428) (5,106,367) (4,837,074) (1,725,789) (9,049,002) 3,528,440

Total Income (20,097,091) 2,795,392 (1,274,450) 1,887,226 (8,018,913) 3,529,552

Expenses:

Investment management fee 3 2,733,602 6,151,826 499,895 510,895 504,603 419,112



Custodian & trustee fee 3 202,151 213,712 22,977 25,862 28,648 18,297


Directors fee 4 11,347 30,535 6,697 4,156 6,744 3,040

Audit fee 5 6,684 3,066 6,437 2,788 6,438 2,790

Legal fees 29,303 50,675 11,249 5,868 12,583 5,465

Transaction costs 1 3,129,757 1,736,809 - - 142,917 22,346

Other expenses 312,318 67,061 13,478 8,646 15,529 8,722

Total Expenses 6,610,098 8,573,273 625,913 629,581 782,187 546,417

Net Investment (Loss)/Gain (26,707,189) (5,777,881) (1,900,363) 1,257,645 (8,801,100) 2,983,135

Finance Costs:

Dividends to holders of redeemable shares 14 - (1,162,556) (3,575,682) (3,705,234) (391,309) -

Net (Decrease)/Increase in Net Assets Attributable to

Holders of Redeemable Shares Resulting from Operations (26,707,189) (6,940,437) (5,476,045) (2,447,589) (9,192,409) 2,983,135

1The European Fund on the 30 June merged with Odey European Focus Fund thereafter it ceased operation.

Fund theresceas

.


The Statement of Comprehensive Income are continued on pages 62 to 63.





62

Global Bond Fund

Global Equity Wealth

Creation Fund Alternatives Fund

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

for the half

financial year

ended 31

October 2015

for the half

financial year

ended 31

October 2014

Notes USD USD USD USD GBP GBP Investment Income: Dividend income 1 - - 126,063 98,303 136,164 33,453 Withholding tax 1 (111,062) (27,459) (25,797) (20,631) - (616) Interest income 1 2,743,092 2,382,658 - - - 990 Margin interest income 944 - - Other income 49 18,114 48,354 19,364 2,506 50 Net (loss)/gain on financial assets and liabilities at fair value

through profit or loss 1 (4,555,512) (1,930,897) (586,390) (114,096) (232,480)

42,305

Total Income (1,922,489) 442,416 (437,770) (17,060) (93,810) 76,182

Expenses: Investment management fee 3 278,434 253,663 - - 46,392 26,801 Performance fee 3 - 113,186 - - - - Administration fee 3 36,847 39,105 16,419 7,330 9,251 4,842 Custodian & trustee fee 3 20,040 19,504 16,202 4,864 6,155 2,630 Transfer agency fee 3 21,342 29,653 6,469 8,401 11,491 7,748 Directors fee 4 5,100 2,423 565 167 1,227 197 Audit fee 5 4,479 3,959 11,317 2,243 2,588 1,560 Legal fees 9,446 3,206 1,098 434 2,352 494 Transaction costs 1 - - 2,276 3,791 - 2,385 Other expenses 26,380 27,182 9,807 9,636 5,816 13,330

Total Expenses 402,068 491,881 64,153 36,866 85,272 59,987

Net Investment (Loss)/Gain (2,324,557) (49,465) (501,923) (53,926) (179,082) 16,195

Finance Costs:

Dividends to holders of redeemable shares 14 (2,436,231) (2,356,704) (86,650) (63,670) (53,650) (2,919)


Holders of Redeemable Shares Resulting from Operations (4,760,788) (2,406,169) (588,573) (117,596) (232,732)

13,276


The Statement of Comprehensive Income are continued on page 63.





63


*Cautious Fund

*Cautious Income Fund

Fund

Total Company

for the half financial

year ended 31

October 2015

for the half

financial year ended 31

October 2014

for the half


October 2015

for the half


October 2014

Notes GBP GBP EUR EUR Investment Income: Dividend income 1 206,606 3,103 20,568,039 12,861,839

Withholding tax 1 (4,152) (122) (2,324,254) (2,805,035)

Interest income 1 23,058 632 8,384,328 6,364,238

Margin interest income - - 2,881 -

Other income 11,388 - 59,844 65,859


through profit or loss 1 (309,744) 15,856 (78,369,023) (4,047,959)

Total Income (72,844) 19,469 (51,678,185) 12,438,942

Expenses: Investment management fee 3 33,130 2,698 5,498,279 8,411,774

Performance fee 3 - - - 85,966

Administration fee 3 3,940 269 384,362 463,180

Custodian & trustee fee 3 6,037 311 407,120 345,650

Transfer agency fee 3 6,053 185 226,535 242,670

Directors fee 4 991 29 48,618 46,222

Audit fee 5 4,285 286 60,700 25,236 Legal fees 5,621 445 102,118 76,836 Transaction costs 1 8,757 3,956 4,050,215 2,187,122

Other expenses 2,391 201 446,615 174,732

Total Expenses 71,205 8,380 11,224,562 12,059,388

Net Investment (Loss)/Gain (144,049) 11,089 (62,902,747) 379,554

Finance Costs: Dividends to holders of redeemable shares 14 (236,990) (4,141) (12,745,034) (8,791,726)

Net (Decrease)/Increase in Net Assets Attributable to Holders

of Redeemable Shares Resulting from Operations (381,039) 6,948 (75,647,781) (8,412,172)

*The Fund was launched in 6 October 2014.




STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES


64


for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014


Net (Decrease)/Increase in Net Assets Attributable to Holders of

Redeemable Shares Resulting from Operations (16,346,018) (212,658) (5,186,696) 1,105,078 (601,884) (1,178,918)

Capital Share Transactions of Redeemable Shares:

Proceeds from shares issued 2 10,093,671 6,481,793 2,099,807 3,179,559 821,633 1,966,901

Payments for shares redeemed 2 (3,432,929) (7,829,540) (6,501,453) (2,213,677) (1,373,587) (2,359,896)

Net Increase/(Decrease) from Capital Share Transactions of

Redeemable Shares 6,660,742 (1,347,747) (4,401,646) 965,882 (551,954) (392,995)


Redeemable Shares (9,685,276) (1,560,405) (9,588,342) 2,070,960 (1,153,838) (1,571,913)

Net Assets Attributable to Holders of Redeemable Shares:

At beginning of half financial year 100,893,382 92,059,163 62,057,365 51,220,907 25,729,587 27,547,956

Notional exchange gain on aggregation of Fund 1 – – – – – –

At end of half financial year 91,208,106 90,498,758 52,469,023 53,291,867 24,575,749 25,976,043

The Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares are continued on pages 65 to 67.



STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (continued)


65

European Fund

1 Sterling Bond Fund Equity Fund

for the

period

to 30 June

2015

for the half

financial year

ended 31 October

2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

Notes EUR EUR GBP GBP GBP GBP


Redeemable Shares Resulting from Operations (26,707,189) (6,940,437) (5,476,045) (2,447,589) (9,192,409) 2,983,135


Proceeds from shares issued 2 15,257,350 535,423,115 10,450,070 19,456,881 17,163,008 19,806,564

Payments for shares redeemed 2 (1,602,414,123) (115,917,390) (7,909,651) (7,086,392) (8,092,138) (16,567,879)

Net (Decrease)/Increase from Capital Share Transactions of

Redeemable Shares (1,587,156,773) 419,505,725 2,540,419 12,370,489 9,070,870 3,238,685


Redeemable Shares (1,613,863,962) 412,565,288 (2,935,626) 9,922,900 (121,539) 6,221,820


At beginning of the financial period 1,613,863,962 877,695,693 136,718,340 128,100,735 129,374,212 101,730,399


At end of half financial year – 1,290,260,981 133,782,714 138,023,635 129,252,673 107,952,219

1The European Fund on the 30 June merged with Odey European Focus Fund thereafter it ceased operation.

The Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares are continued on pages 66 to 67.





66

Global Bond

Fund

Global Equity Wealth Creation

Fund Alternatives Fund

for the half

financial year

ended 31

October 2015

for the half

financial year

ended 31

October 2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31

October 2014

for the half

financial year

ended 31 October

2015

for the half

financial year

ended 31 October

2014

Notes USD USD USD USD GBP GBP


Holders of Redeemable Shares Resulting from operations (4,760,788) (2,406,169) (588,573) (117,596) (232,732) 13,276


Proceeds from shares issued 2 6,329,961 11,702,751 753,242 3,047,763 4,038,966 8,335,185

Payments for shares redeemed 2 (10,793,845) (3,522,638) (269,899) (323,826) (2,038,310) (2,027,814)

Net (Decrease)/Increase from Capital Share

Transactions of Redeemable Shares (4,463,884) 8,180,113 483,343 2,723,937 2,000,656 6,307,371


Holders of Redeemable Shares (9,224,672) 5,773,944 (105,230) 2,606,341 1,767,924 6,320,647

Net Assets Attributable to Holders of Redeemable

Shares:

At beginning of the financial period 100,076,906 88,006,246 10,886,855 7,709,957 20,748,609 9,286,062


At end of half financial year 90,852,234 93,780,190 10,781,625 10,316,298 22,516,533 15,606,709

The Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares are continued on page 67.





67

Cautious Income Fund* Total Company

for the half

financial year

ended 31

October 2015

for the half

financial year

ended 31

October 2014

for the half

financial year

ended 31

October 2015

for the half

financial year

ended 31

October 2014

Note GBP GBP EUR EUR


Redeemable Shares Resulting from Operations (381,039) 6,948 (75,647,781) (8,412,172)


Proceeds from shares issued 2 1,637,491 5,872,531 84,668,610 625,331,264

Payments for shares redeemed 2 (74,540) (28,415) (1,654,638,304) (162,903,996)

Net (Decrease)/Increase from Capital Share Transactions of

Redeemable Shares 1,562,951 5,844,116 (1,569,969,694) 462,427,268


Redeemable Shares 1,181,912 5,851,064 (1,645,617,475) 454,015,096


At beginning of the financial period 10,158,702 – 2,333,477,069 1,400,019,331

Notional exchange gain on aggregation of Fund 1 – – 47,961,297 31,825,871

At end of half financial year 11,340,614 5,851,064 735,820,891 1,885,860,298

* This Fund was launched in 6 October 2014.



Notes to the Financial Statements

68

1. ACCOUNTING POLICIES

The significant accounting policies and estimation techniques adopted by the Company are as follows:

BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Companies Act 2014 and Financial Reporting Standard

102 (“FRS 102”) issued by the Financial Reporting Council and promulgated for use in Ireland by Chartered Accountants

Ireland. Accounting standards generally accepted in Ireland in preparing financial statements giving a true and fair view are

those published by the Financial Reporting Council and promulgated by International Accounting Standards Board.

FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, replaced the extant Irish and UK

GAAP accounting standards (i.e. SSAPs and FRSs) for accounting periods commencing on or after 1 January 2015. The

Company has applied FRS 104, which is intended for use in the preparation of semi-annual reports by entities that apply FRS

102, when preparing their annual financial statements.

FRS 104 replaced the Statement of Half-Yearly Financial Reporting issued by the Accounting Standards Board for

accounting periods commencing on or after 1 January 2015. The Company has not applied the full disclosure requirements of

FRS 102 as according to FRS 104, issued by the Financial Reporting Council, disclosures demanded by Financial Reporting

Standards are generally not required for semi-annual reports.

The format and certain wordings of the financial statements have been adapted from those contained in the Companies Act

2014 and FRS 104 “Interim Financial Statements” so that, in the opinion of the Directors, they more appropriately reflect the

nature of the Company‟s business as an investment fund. As the Funds are highly liquid they have availed of the exemption

available to open-ended investment funds not to prepare a cash flow statement.

HISTORICAL COST CONVENTION

The financial statements are prepared under the historical cost convention as modified to include investments at fair value

through profit or loss.

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

As required by FRS 102, financial assets at fair value through profit or loss as current assets are stated at the latest bid price

in the Statement of Financial Position. This is not in accordance with the Prospectus where the mid-market price at 12 noon

(Irish time) on each Dealing Day except for the last Dealing Day of each calendar quarter. Unrealised gains and losses arising

from this valuation are recorded in the Statement of Comprehensive Income and represent the difference between Fair Value

and the cost of the investments. A reconciliation between the net asset value as per the Financial Statements and the

published net asset value can be seen in Note 12 “Net Asset Comparison”.


Notes to the Financial Statements (continued)

69

1. ACCOUNTING POLICIES (continued)

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (continued)

Each security, which is listed or traded on a regulated market, is valued on the regulated market, which is normally the

principal market for such security. For the ongoing valuations (i.e. valuations for the purpose of the calculation of the net

asset value of the relevant Fund), the valuation is carried out by reference to the closing mid-market quotation on that

regulated market. In the event that any investment is not listed or traded on any regulated market, such security shall be

valued at the probable realisation value determined with care and in good faith by a competent person (which may be the

Investment Manager) approved by the Citibank International Limited, Ireland Branch (the “Custodian”) as a competent

person for such purpose in consultation with the Investment Manager. Such probable realisation value will be determined: (i)

by using the original purchase price; (ii) where there have been subsequent trades with substantial volumes, by using the

latest trade price provided that the Administrator, in consultation with the Investment Manager, considers such trades to be at

arm‟s length; (iii) where the Investment Manager believes the investment has suffered a diminution in value, by using the

original purchase price that shall be discounted to reflect such a diminution; or (iv) if the Administrator in consultation with

the Investment Manager believes a mid quotation from brokers reliable, by using such mid quotation or, if unavailable, a bid

quotation. Alternatively, the Administrator in consultation with the Investment Manager may use such probable realisation

value estimated with care and in good faith as may be recommended by a competent professional (which may be the

Investment Manager) approved for that purpose by the Custodian in consultation with the Investment Manager. Due to the

nature of such unquoted securities and the difficulty in obtaining a valuation from other sources, such competent professional

may be related to the Investment Manager. Valuations of unquoted securities amounting to USD Nil in Waverton Asia

Pacific Fund are included at 31 October 2015 (2014: USD Nil).

Investments in a collective investment scheme are valued on the basis of the latest available net asset value relevant to the

collective investment scheme. Certain Funds may invest in one or more collective investment schemes. As a shareholder of

another collective investment scheme, a Fund would bear, along with other shareholders, its pro rata portion of the expenses

of other collective investment schemes, including management and /or other fees. These fees would be in addition to the

management fees and other expenses which a Fund bears directly in connection with its own operations.

Exchange-traded derivative instruments, including futures, are valued as at close of the regular trading session of the London

Stock Exchange on the Dealing Day at the settlement price for such instruments on the relevant exchange. If the settlement

price of an exchange-traded derivative instrument is not available, the value of such instrument shall be the probable

realisation value estimated with care and in good faith by a competent professional (which may be the Investment Manager)

appointed by the Directors approved for that purpose by the Custodian in consultation with the Investment Manager. No such

valuations were required at 31 October 2015 or 30 April 2015. Over-the-counter derivative instruments are valued as at 12.00

noon (Irish Time) of the regular trading session of the London Stock Exchange on the Dealing Day at the settlement price

provided by the counterparty to such transactions daily. Details of options and futures held as at 31 October 2015 are

included in the Portfolios of Investments.

Forward foreign exchange contracts are valued at the Valuation Point by reference to the prevailing market quotations,

namely the price at which a new forward contract of the same size and maturity could be undertaken, or, if unavailable, at the

settlement price as provided by the counterparty daily. The valuations of those securities which are valued at settlement price

are verified at least weekly by an independent person approved for that purpose by the Custodian, who may be the Investment

Manager.

The unrealised gain or loss on open forward foreign exchange contracts is calculated by reference to the difference between

the contracted rate and the rate to close out the contract. Realised gains or losses include net gains on contracts, which have

been settled or offset by other contracts. As at 31 October 2015, the Company held forward currency contracts for the Asia

Pacific Fund, Sterling Bond Fund, and the Global Bond Fund. As at 30 April 2015, the Company held forward currency

contracts for the Asia Pacific Fund, Global Equity Fund, Sterling Bond Fund, Equity Fund and the Global Bond Fund.



70


FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (continued)

For open futures contracts, changes in the fair value of the contract are recognised as unrealised gains or losses by “marking-

to-market” the value of the contract at the Statement of Financial Position date. When the contract is closed, the difference

between the proceeds from (or cost of) the closing transactions and the original transaction is recorded as a realised gain or

loss. Futures contracts are held at fair value through profit or loss. Gains and losses arising from changes in the fair value of

the futures contracts are included in the Statement of Comprehensive Income in the half financial year in which they arise. As

at 31 October 2015, the Company held futures contracts for the Sterling Bond Fund and Global Bond Fund As at 30 April

2015, the Company held futures contracts for the Sterling Bond Fund and Global Bond Fund

Options, held at fair value though profit or loss, are fair valued daily based upon the quotation provided by counterparty on

the principal exchange on which the option is traded. Realised and unrealised gains and losses arising from option contracts

are included in the Statement of Comprehensive Income in the half financial year in which they arise. As at 31 October 2015,

the Company held options for the Sterling Bond Fund. As at 30 April 2015, the Company held options for the Sterling Bond

Fund and Global Bond Fund.

Short-term investments including time deposits are valued at cost, which approximates their fair value. When calculating the

effective interest rate, the Company estimates cash flows considering all contractual terms of the financial instrument but

does not consider future credit losses.

MEASUREMENT

Financial instruments are measured initially at fair value (transaction price) plus, in the case of a financial asset or financial

liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the

financial asset or financial liability. Subsequent to initial recognition, all instruments Classified at fair value through profit or

loss are measured at fair value with changes in their fair value recognised in the Statement of Comprehensive Income.

Financial liabilities, other than those at fair value through profit or loss, are measured at amortised cost.

Financial liabilities arising from the redeemable shares issued by the Fund are carried at the redemption amount representing

the investors‟ right to a residual interest in the Fund‟s assets.

RECOGNITION AND DERECOGNITION

The Company recognises financial assets and financial liabilities when all significant rights and access to the benefits from

the assets and the exposure to the risks inherent in those benefits are transferred to the Company. A regular way purchase of

financial assets is recognised using trade date accounting. The Company derecognises financial assets and financial liabilities

when all such benefits and risks are transferred from the Company.

CASH AND OTHER LIQUID ASSETS

Cash and other liquid assets are valued at their face value with interest accrued (if any) as at the valuation point.

INVESTMENT TRANSACTIONS

Investment transactions are accounted for as of the date they are purchased or sold. During the half financial year ended 31

October 2015 and 30 April 2015 realised gains and losses on the sale of investments are calculated using the weighted

average cost method. Realised gains and losses on investment transactions are recorded in the Statement of Comprehensive

Income. Interest income is accrued daily on an effective yield basis.



71


INVESTMENT INCOME

Dividends are credited to the Statement of Comprehensive Income on the dates on which the relevant securities are listed as

“ex-dividend”. Bank interest income is accounted for on an accrued interest basis. Bond interest income is accrued daily on

an effective yield basis. Income is shown gross of non-recoverable withholding tax, which is disclosed separately in the

Statement of Comprehensive Income. The Company may benefit from a reduction in the rate of withholding tax by virtue of

the double taxation agreements in operation between Ireland and other countries. Consequently, the Company may be able to

reclaim withholding tax suffered by it in particular countries. Withholding tax reclaims are accounted for on a cash receipts

basis in the Statement of Comprehensive Income.

DISTRIBUTION POLICY

Bi-annual distributions will be declared and distributed in respect of each Fund in each financial year from net income

(excluding capital gains) on 30 April and 31 October except for the Sterling Bond Fund and the Global Bond Fund. The

Company will declare dividends quarterly in respect of the Global Bond Fund and the Sterling Bond Fund on 31 January, 30

April, 31 July and 31 October in each financial year. It is proposed that dividends will not be declared in respect of the Class

A Euro Acc shares of Global Bond Fund. Instead, any net investment income and realised and unrealised capital gains net of

realised and unrealised capital losses attributable to each of these classes will be accumulated in net asset value per share of

the relevant class and will be invested in accordance with the investment objective and policies of the relevant Fund

Shareholders should note that, in the case of Funds for which a performance fee may be charged as follows: (1) any

performance fee will be charged to capital of the relevant Fund; and (2) for those Classes of Shares identified in the column

of the table in Schedule IV of the Prospectus headed “Fees and Expenses to Capital” as “Yes”, 100% of the management

fees, Administrator fees, Custodian fees, operational expenses and borrowing expenses, where applicable will be charged to

capital of the relevant Fund. The Company has received approval from the HM Revenue & Customs for reporting Fund status

for certain Classes of certain Funds for the half financial year ending 31 October 2015 and application is intended to be made

for subsequent half financial years. Details of distributions made are included in Note 14.

FOREIGN EXCHANGE TRANSLATION

Functional and presentation currency

Items included in the Company‟s financial statements are measured using the currency of the primary economic environment

in which each Fund operates (the “Functional Currency”). The Functional Currency is: Euro (“EUR”) for the European Fund;

Sterling (“GBP”) for the Global Equity Fund, the UK Fund, the Sterling Bond Fund, the Equity Fund, the Alternatives Fund,

the Cautious Income Fund and the Absolute Fund; and U.S. Dollar (“USD”) for the Asia Pacific Fund, the Global Bond Fund

and the Global Equity Wealth Creation Fund. The presentation currency for financial statement purposes of each Fund is their

functional Currency. The Company has adopted EUR as its Functional Currency for the Company as a whole.

Transactions and balances

Assets and liabilities denominated in foreign currencies are translated into the Functional Currency of each Fund at the

exchange rates ruling at the Statements of Financial Position date. Transactions in foreign currencies are translated into the

Functional Currency of each Fund at the exchange rates ruling at the dates of the transactions. Gains and losses on foreign

exchange transactions are recognised in the Statement of Comprehensive Income in determining the result for the half

financial year. The Company‟s results and financial position are translated from the Funds‟ Functional Currency to EUR as

follows: Assets and Liabilities, including Net Assets Attributable to Holders of Redeemable Shares are translated at the

closing rate at each Statement of Financial Position date. Income and expenses for each Statement of Comprehensive Income

are translated at the average exchange rate for the half financial year. Notional Exchange gains or losses due to the

presentation of these financial statements in EUR are included in the Statements of Changes in Net Assets Attributable to

Holders of Redeemable Shares.

TRANSACTION COSTS

Transaction costs are accounted for as of the date securities are purchased or sold and are included in the Statement of

Comprehensive Income as required by FRS 102.



72


TRANSACTION COSTS (continued)

Transaction costs include fees and commissions paid to agents (including employees acting as selling agents), advisers,

brokers and dealers, levies by regulatory agencies and securities exchanges, and transfer taxes and duties. Transaction costs

do not include debt premiums or discounts, financing costs or internal administrative costs. For trades on bond the

commissions are wrapped up in the price so we are unable to split out the transaction costs.

2. SHARE CAPITAL

AUTHORISED

The Directors are authorised to issue up to 500 billion Shares of no par value.

SUBSCRIBER SHARES

There are currently two Subscriber Shares in issue to the value of EUR 2. The Subscriber Shares do not form part of the net

asset value of the Company and are thus disclosed in the Financial Statements by way of this note only.

Each of the Shares entitles the holder to attend and vote at meetings of the Company and of the Fund represented by those

Shares. No Class of Shares confers on the holder thereof any preferential or pre-emptive rights or any rights to participate in

the profits and dividends of any other Class of Shares or any voting rights in relation to matters relating solely to any other

Class of Shares.

Any resolution to alter the Class rights of the Shares requires the approval of three quarters of the holders of the Shares

represented or present and voting at a general meeting duly convened in accordance with the Articles of Association.

The Articles of Association of the Company empower the Directors to issue fractional Shares in the Company. Fractional

Shares may be issued and shall not carry any voting rights at general meetings of the Company or of any Fund or Class and

the net asset value of any fractional Share shall be the net asset value per Share adjusted in proportion to the fraction.

The Subscriber Shares entitle the Shareholders holding them to attend and vote at all meetings of the Company, but do not

entitle the holders to participate in the dividends or net assets of any Fund or of the Company.

CAPITAL SHARE TRANSACTIONS OF REDEEMABLE SHARES

The Company issues redeemable shares which can be put back to the Company at any time for cash equal to a proportionate

share of the net asset value per share of the relevant Fund. This redeemable share carried at the redemption amount that is

payable at the Statement of Financial Position date if the holder exercises the right to put the share back to the Company at

that date.


Class A US$ Class A Euro Class A Stg£ Class M Stg£

Asia Pacific Fund Shares Shares Shares Shares

At beginning of the half financial

year 841,558 616 2,273,695 179,487

Issued 95,870 - 199,334 80,292

Redeemed (46,249) (1) (72,885) (20,699)

At end of half financial year 891,179 615 2,400,144 239,080

Class A Stg£ Class A US$

Global Equity Fund Shares Shares


year 4,111,886 77,390

Issued 140,030 9,100

Redeemed (466,536) (2,400)

At end of half financial year 3,785,380 84,090



73

2. SHARE CAPITAL (continued)

CAPITAL SHARE TRANSACTIONS OF REDEEMABLE SHARES (continued)


UK Fund Shares Shares


year 1,901,747 11,193

Issued 61,685 20

Redeemed (94,623) (6,928)

At end of half financial year 1,868,809 4,285

Class A Euro Class A Stg£ Class B Euro

Class A Euro

Acc

European Fund Shares Shares Shares Shares


year 38,833,857 27,214,424 3,243,116 8,906,268

Issued 413,539 77,634 268,138 42,063

Redeemed (39,247,396) (27,292,058) (3,511,254) (8,948,331)

At end of half financial year - - - -

Class A Stg£ Class B Stg£ Class P Stg£

Sterling Bond Fund Shares Shares Shares


year 12,929,590 2,838 1,076,442

Issued 875,903 97 197,992

Redeemed (773,898) – (47,562)

At end of half financial year 13,031,595 2,935 1,226,872


Equity Fund Shares Shares Shares


year 4,456,227 1,433,370 3,182,662

Issued 335,200 333,190 631,547

Redeemed (351,234) (108,378) (119,573)

At end of half financial year 4,440,193 1,658,182 3,694,636

Class A Stg£ Class A US$ Class I Euro Class I US$

Global Bond Fund Shares Shares Shares Shares


year 115,000 8,251,264 - 2,405,367

Issued 27,900 395,370 104,599 125,015

Redeemed – (1,054,750) (1,900) (158,219)

At end of half financial year 142,900 7,591,884 102,699 2,372,163

Class A US$


Fund

Institutional

Shares

At beginning of the half financial year 1,037,894

Issued 73,287

Redeemed (28,710)

At end of half financial year 1,082,471



74



Class A Stg£ Class P Stg£

Alternatives Fund Shares Shares


year 48,120 1,947,097

Issued 23,200 365,368

Redeemed – (195,925)

At end of half financial year 71,320 2,116,540

Class B Stg£ Class P Stg£

Cautious Income Fund Shares Shares


year 632,193 330,744

Issued 123,545 36,763

Redeemed (4,122) (3,181)

At end of half financial year 751,616 364,326


Class A US$ Class A Euro Class A Stg£ Class M Stg£

Asia Pacific Fund Shares Shares Shares Shares


year 852,836 603 2,322,607

Issued 1,565 11 74,218 247,583

Redeemed (28,147) (5) (220,906) (2,554)

At end of half financial year 826,254 609 2,175,919 245,029


Global Equity Fund Shares Shares


year 3,710,120 78,300

Issued 234,515 -

Redeemed (165,429) -

At end of half financial year 3,779,206 78,300 N n Class A Stg£ Class B Stg£

UK Fund Shares Shares


year 2,133,165 11,089

Issued 159,962 35

Redeemed (185,687) (8)

At end of half financial year 2,107,440 11,116 N



75

.SHARE CAPITAL (continued)


Class A Euro Class A Stg£ Class B Euro Class A Euro

European Fund Shares Shares Shares Shares


year 23,329,859 20,765,714 1,853,817

Issued 20,342,930 7,674,336 1,971,457 199,837

Redeemed (4,512,640) (1,185,231) (1,081,582) -

At end of the half financial year 39,160,149 27,254,819 2,743,692 199,837


Sterling Bond Fund Shares Shares Shares


year 12,372,511 4,934 401,224

Issued 1,457,765 63 469,478

Redeemed (631,095) - (71,697)

At end of the half financial year 13,199,181 4,997 799,005


Equity Fund Shares Shares Shares


year 5,057,309 1,534,200 1,400,335

Issued 457,064 166,529 1,132,681

Redeemed (848,713) (248,795) (147,690)

At end of the half financial year 4,665,660 1,451,934 2,385,326

Class A Stg£ Class A US$ Class I US$

Global Bond Fund Shares Shares Shares


year 115,000 7,443,796 1,570,780

Issued - 815,755 397,305

Redeemed - (288,875) (76,933)

At end of the half financial year 115,000 7,970,676 1,891,152

Class A US$


Fund

Institutional

Shares


year 773,484

Issued 292,900

Redeemed (32,200)

At end of the half financial year 1,034,184


Alternatives Fund Shares Shares


year 12,120 920,671

Issued 41,600 794,836

Redeemed - (203,057)

At end of the half financial year 53,720 1,512,450



76




Cautious Income Fund Shares Shares


year - -

Issued 369,410 218,249

Redeemed (2,850) -

At end of the half financial year 366,560 218,249

3. SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS

INVESTMENT MANAGEMENT FEES

The Company has entered into an investment management agreement with Waverton Investment Management Limited, (the

“Investment Manager”), pursuant to which the Investment Manager manages the Company‟s investments on a discretionary

basis. The Investment Manager is a company incorporated under the laws of England and Wales and regulated by the

Financial Conduct Authority (“FCA”). The Investment Manager is entitled to receive an investment management fee from

the Company.

This fee is calculated and accrued on each Dealing Day and paid quarterly in arrears from the Net asset value of each Class

of the respective Funds at the following rates.

For the half financial year ended 31

October 2015 Class A Class B

Class B

Institutional

Class I Class P

Asia Pacific Fund 1.00% 1.50% - - -

Global Equity Fund 1.00% 1.50% - - -

UK Fund 1.00% 1.50% - - -

European Fund 1.00% 1.50% - - -

Sterling Bond Fund 0.75% 1.25% - - 0.40%

Equity Fund 1.00% 0.75% - - 0.40%

Global Bond Fund 0.50% 1.00% - 0.75% -

Global Equity Wealth Creation Fund - - 0.40% - -

Alternatives Fund 1.00% 0.75% - - 0.40%

Cautious Income Fund - 0.75% - - 0.40%

During the half financial year ended

31 October 2014 Class A Class B

Class B

Institutional Class I Class P

Asia Pacific Fund 1.00% 1.50% - - -

Global Equity Fund 1.00% 1.50% - - -

UK Fund 1.00% 1.50% - - -

European Fund 1.00% 1.50% - - -

Sterling Bond Fund 0.75% 1.25% - - 0.40%

Equity Fund 1.00% 0.75% - - 0.40%

Global Bond Fund 0.50% 1.00% - 0.75% -

Global Equity Wealth Creation Fund - - 0.40% - -

Alternatives Fund 1.00% 0.75% - - 0.40%

Cautious Income Fund - 0.75% - - 0.40%



77

3. SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS (continued)

INVESTMENT MANAGEMENT FEES (continued)

In addition, the Investment Manager is entitled to be reimbursed its reasonable vouched out-of-pocket expenses. Each Fund

bears pro rata its share of such out-of-pocket expenses.

The Investment Manager has undertaken, on a voluntary basis, to ensure that the fees payable by the Funds other than

performance fees will not exceed the total expense limit. The effect of this arrangement is that the total fees and expenses

payable by each Share Class shall not exceed the percentage limits of the net asset value of the Funds set out below:

For the half financial year ended 31 October

2015 Class A Class B Class I Class P

Asia Pacific Fund 2.00% 2.50% - -

Global Equity Fund 2.00% 2.50% - -

UK Fund 2.00% 2.50% - -

European Fund 2.00% 2.50% - -

Sterling Bond Fund 1.75% 2.25% 1.40% -

Equity Fund 2.00% 1.75% 1.40% -

Global Bond Fund 1.50% 2.00% - 1.75%

Global Equity Wealth Creation Fund - 1.40% - -

Alternatives Fund 2.00% 1.75% 1.40% -

Cautious Income Fund - 1.75% - 1.40%

During the half financial year ended 31 October

2014 Class A Class B Class I Class P

Asia Pacific Fund 2.00% 2.50% - -

Global Equity Fund 2.00% 2.50% - -

UK Fund 2.00% 2.50% - -

European Fund 2.00% 2.50% - -

Sterling Bond Fund 1.75% 2.25% 1.40% -

Equity Fund 2.00% 1.75% 1.40% -

Global Bond Fund 1.50% 2.00% - 1.75%

Global Equity Wealth Creation Fund - 1.40% - -

Alternatives Fund 2.00% 1.75% 1.40% -

Cautious Income Fund 2.00% 1.75% 1.40% -

Details of fees waived by the Investment Manager during the half financial years ended 31 October 2015 and 31 October

2014 are included in the Statement of Comprehensive Income.

PERFORMANCE FEE

The Investment Manager may receive a performance fee based on its investment management performance during a

performance period (“Performance period”). A Performance period shall: (i) in the case of the first Performance period,

commence upon the close of the Initial Offer Period and end on the next succeeding Quarter Day (as hereinafter defined);

and (ii) thereafter shall commence on the day immediately following such Quarter Day and shall end on the next succeeding

Quarter Day. A Quarter Day shall be 31 March, 30 June, 30 September or 31 December in any financial year.



78


PERFORMANCE FEES (continued)

In the case of the Class A Stg£, Class A US$ and Class B US$ Shares in Waverton Global Bond Fund, a performance fee is

payable to the Investment Manager when: (i) the increase in the net asset value per Share of the relevant Class of a Fund (as

denominated in the Functional Currency of the Fund to which the Class relates) over a Performance Period is greater than the

increase in the Benchmark for that Fund over the same Performance Period; or (ii) when the decrease in the net asset value

per Share of the relevant Class of a Fund (as denominated in the Functional Currency of the Fund to which the Class relates)

over a Performance Period is less than the decrease in the Benchmark for that Fund over the same Performance Period. The

performance fee shall be 10% in respect of Waverton Global Bond Fund of the amount by which the net asset value per

Share before the deduction of performance fees exceeds the Benchmark as aforesaid as at the end of a Performance Period,

multiplied by the number of Shares in issue in that Class at the end of the period.

The performance fee is calculated by measuring the increase or decrease of the net asset value per Share as denominated in

the Functional Currency of the relevant Fund against the performance of the relevant Benchmark. The Benchmark shall

always be denominated in the Functional Currency of the relevant Fund. As the Sterling denominated Class A of the

Waverton Global Bond Fund is intended to be fully hedged, the performance fee for this Class will be calculated using the

net asset value per Share in Sterling.

The performance fee shall be calculated and accrued on each Dealing Day and paid quarterly in arrears at the end of a

Performance Period. When calculating the performance fee payable, the net asset value is adjusted, as appropriate, for

subscriptions, redemptions, dividends paid and any accruals of performance fee and by the amount, if any, by which the net

asset value underperformed the Benchmark in any preceding Performance Period. Any dividends which are to be added back

in order to determine the performance fee will be added back as a per Share amount based on the number of Shares in issue

when the dividends were paid.

Where a performance fee is payable it is based on the net asset value of a Class as at the end of each period. As a result a

performance fee may be paid in respect of unrealised gains, which may subsequently never be realised. Furthermore, because

the performance fee is payable on the performance of a Fund relative to a Benchmark (outperformance), a performance fee

may be payable in circumstances where the net asset value of a Fund has declined. On the other hand a prior relative under

performance must be recouped before a performance fee shall again be payable.

The performance fee calculation is verified by the Custodian and by the auditors of the Company as part of the annual audit

of the Company. Performance fee worked examples are available from the Administrator and the Investment Manager upon

request.

The performance fee applicable to each Fund is set out in that Fund‟s prospectus. Currently, the Waverton Global Bond Fund

is the only Fund that is entitled to a performance fee. As at the 31 October 2015 no performance fee was accrued during the

period.

ADMINISTRATOR FEES

The Company pays the Administrator an administration and fund accounting service fee of up to 0.10 per cent. per annum of

the net asset value of each of the Funds during the half financial year, subject to a minimum annual fee per Fund of EUR

28,750 per annum with an additional Share Class fee of EUR 1,300 per annum. The Administrator receives a transfer agency

fee of up to EUR 20,000 for each Fund per annum with a Share Class fee of EUR 8,850 per Fund (applicable only to Funds

that have in excess of 2 share Classes).

The fees are calculated and accrued on each Dealing Day and payable monthly in arrears. The Administrator is also entitled

to be reimbursed its reasonable vouched out-of-pocket expenses, transaction and account fees. Administration and Fund

accounting services fees payable to the Administrator as at 31 October 2015 and 30 April 2015 and expenses incurred during

the half financial years ended 31 October 2015 and 31 October 2014 are shown on the Statement of Financial Position and

Statement of Comprehensive Income, respectively.



79


CUSTODIAN FEES

Each Fund pays the current Custodian a custody fee which will not exceed in aggregate 0.75% of the net asset value of the

Fund. The Custodian is also entitled to a trustee fee of up to 0.02% per annum of the net asset value of each of the Funds. The

Custodian fee is calculated and accrued on each Dealing Day and payable monthly in arrears.

In addition, the Custodian is entitled to receive transaction charges and to be reimbursed its reasonable vouched out-of-pocket

expenses, and the fees and expenses of any sub-custodian appointed by the Custodian (which shall be at normal commercial

rates). Custodian fees payable to the Custodian as at 31 October 2015 and 30 April 2015 and expenses incurred during the

half financial years ended 31 October 2015 and 31 October 2014 are shown on the Statement of Financial Position and

Statement of Comprehensive Income, respectively.

4. DIRECTOR‟S REMUNERATION

The total Director Remuneration in any one financial year shall not exceed EUR 135,000. In addition all of the Directors are

entitled to be reimbursed by the Company for reasonable out of pocket expenses. Fees payable to the Directors as at 31

October 2015 and 30 April 2015 and fees charged during the half financial years ended 31 October 2015 and 31 October

2014 are shown on the Statement of Financial Position and Statement of Comprehensive Income, respectively.

5. AUDITORS‟ REMUNERATION

Fees and expenses paid to our statutory auditors, Grant Thornton, in respect of the half financial years are as follows:

31 October 2015

Statutory audit fee: EUR 40,406

31 October 2014

Statutory audit fee: EUR 25,236

6. TAXATION

The Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997 (as

amended). It is not chargeable to Irish tax on its income and gains.

Tax may arise on the happening of a chargeable event. A chargeable event includes any payments of distributions to

Shareholders, any encashment, repurchase, redemption, cancellation or transfer of Shares and any deemed disposal of Shares

arising as a result of holding Shares for a period of eight years or more. No tax will arise on the Company in respect of

chargeable events in respect of:

(i) a shareholder who is not Irish resident and not ordinarily resident in Ireland at the time of the chargeable event, provided

the necessary signed statutory declarations are held by the Company; and

(ii) certain exempted Irish resident investors who have provided the Company with the necessary signed statutory

declarations.

Dividend income, interest and capital gains received by the Company may be subject to non-recoverable withholding tax in

the countries of origin.

7. SOFT COMMISSION ARRANGEMENTS

The Investment Manager may effect transactions with or through the agency of another person with whom the Investment

Manager or an entity affiliated to the Investment Manager has arrangements under which that person will, from time to time,

provide to or procure for the Investment Manager and/or an affiliated party goods, services or other benefits such as research

and advisory services, specialised computer hardware or software.



80

7. SOFT COMMISSION ARRANGEMENTS (continued)

No direct payment may be made for such goods or services but the Investment Manager may undertake to place business with

that person provided that person has agreed to provide best execution with respect to such business and the services provided

must be of a type which assists in the provision of investment services to the Company.

During the half financial years ended 31 October 2015 and 31 October 2014 there were no soft commission transactions.

8. CASH

All cash balances (excluding time deposits) are held with Citibank N.A. in the name of Citibank International Limited,

Ireland Branch, as custodian. Collateral has been provided for the open futures contracts and is held with Merrill Lynch.

9. EXCHANGE RATES

The Functional Currency of the European Fund is EUR. The Functional Currency of the Global Equity Fund, the UK Fund,

the Sterling Bond Fund, the Equity Fund, the Alternatives Fund, and the Cautious Income Fund is GBP. The Functional

Currency of the Asia Pacific Fund, the Global Bond Fund and the Global Equity Wealth Creation Fund is the USD.

The following exchange rates at 31 October 2015 have been used to translate assets and liabilities in currencies other than

EUR, GBP and USD:

AUD BRL CAD CHF CNY DKK EUR GBP HKD IDR INR

USD: 1.4071 3.8607 1.4071 0.9884 - 6.7680 0.9078 0.6516 7.7498 - 65.3381

EUR: - - - 1.0409 - 7.4583 1.0000 1.4114 - - -

GBP: - 5.9254 2.0192 1.5170 9.6961 - 1.3932 1.0000 - - -

JPY KRW MXN NOK NZD PHP SEK SGD THB TWD USD

USD: 1.2047 11.3990 16.5752 - 1.4808 46.8099 8.5150 1.4002 35.5606 32.4602 1.0000

EUR: - - - - - - 9.2419 - - - -

GBP: 184.89 - 25.4397 - - - 13.0688 - - - 1.5348

The following exchange rates at 30 April 2015 have been used to translate assets and liabilities in currencies other than EUR,

GBP and USD:

AUD BRL CAD CHF CNY DKK EUR GBP HKD IDR INR

USD: 1.2633 2.9597 1.2040 0.9357 - 6.6668 0.8935 0.6483 7.7502 12,960.08 63.5082

EUR: - - - 1.0472 - 7.4615 1.0000 1.3782 - - -

GBP: - 4.5653 1.8572 1.4433 9.5678 - 1.3782 1.0000 - - 97.9614

JPY KRW MXN NOK NZD PHP SEK SGD THB TWD USD

USD: 1.1895 10.7180 15.2788 - 1.3130 44.5196 8.2754 1.3203 32.9554 30.6251 1.0000

EUR: - - - 0.1184 - - 9.2618 - - - -

GBP: 183.48 - 23.5335 - - - 12.7650 - - 47.2392 1.5425



81

9. EXCHANGE RATES (continued)

A Fund may employ financial derivative instruments for protection against exchange risks (including foreign exchange

transactions which alter the currency characteristics of transferable securities held by the relevant Fund) and to alter the

currency exposure characteristics of transferable securities in accordance with the conditions and limits set down by the

Central Bank of Ireland. Forward currency contracts may, at the Company‟s sole discretion, be used to hedge some or all of

the exchange risk/currency exposure arising as a result of the fluctuation between the currency in which the net asset value

per Share is computed, and the currencies in which a Fund‟s investments are denominated.

In addition, each Fund may also purchase foreign currency forwards or other contracts in order to switch the underlying

currency exposure of assets within the Fund‟s portfolio into alternative currencies, whereby the characteristics of the assets

are tailored to seek to provide the desired balance between risk and return in keeping with the strategy pursued by the

relevant Fund. Accordingly, the Fund may take material positions in currencies other than currencies of denomination of the

underlying assets of the Fund.

Details of open forward currency contracts as at 31 October 2015 are shown in the Portfolios of Investments.

Notional Exchange gains or losses due to the presentation of these financial statements in EUR are included in the Statements

of Changes in Net Assets Attributable to Holders of Redeemable Shares.

10. FINANCIAL DERIVATIVE INSTRUMENTS AND EFFICIENT PORTFOLIO MANAGEMENT

Subject to the conditions and within the limits from time to time laid down by the Central Bank, and except as otherwise

stated in the investment objective and policies of a Fund, the Investment Manager may employ, for certain Funds, investment

techniques and instruments such as futures, options, forward foreign currency contracts and other derivatives for investment

and/or efficient portfolio management (“EPM”) purposes. Furthermore, new techniques and instruments may be developed

which may be suitable for use by a Fund in the future, and a Fund may employ such techniques and instruments subject to the

prior approval of, and any restrictions imposed by, the Central Bank of Ireland.

For UCITS which have invested in financial derivative instruments (“FDI”) and/or engaged in efficient portfolio management

techniques, new disclosures are required under UCITS Notice 8.4. The Investment Manager of the Funds has identified all

financial derivative instruments which are forward currency contracts and futures, for which the counterparty is Merrill

Lynch International for futures and BNY Mellon for forwards, and is detailed further in the accounting policies Note 1.

During the half financial year, futures and forward foreign currency transactions were entered into for the purpose of efficient

portfolio management in order to hedge currency and market exposure and/or for investment purposes. The notional amounts

are detailed in the Schedule of Investments. The realised and unrealised gains or losses arising from the use of futures and

forward foreign currency transactions are discussed in Note 1.

The relevant Funds may have entered into currency forwards and other foreign currency derivative transactions for the

purposes of limiting the foreign currency exposure arising out of the non-base currency denomination of the investments of

the Fund or the currency exposure arising between the Functional Currency and the currency of denomination of each Class

of shares. In addition, certain Funds may also have purchased foreign currency forwards or other contracts in order to switch

the underlying currency exposure of assets within the relevant Fund‟s portfolio into alternative currencies, whereby the

characteristics of the assets are tailored to seek to provide the desired balance between risk and return in keeping with the

strategy pursued by the relevant Fund.

The relevant Funds may have entered into futures contracts to take long or short positions in, or to increase or reduce the

relevant Fund‟s exposure to, an underlying security, currency, market or index. For example, purchased futures may serve as

a long hedge of the investments of the relevant Funds and sold futures may have served as limited short hedge equities of the

investments of the relevant Funds. Futures may also be used, for example, to equities cash balances, both pending investment

of a cash flow and with respect to fixed cash targets.



82

10. FINANCIAL DERIVATIVE INSTRUMENTS AND EFFICIENT PORTFOLIO MANAGEMENT (continued)

The relevant Funds may have purchased and sold put and call options. Call options may be purchased by certain Funds: (i) to

provide exposure to increases in the market (e.g., with respect to temporary cash positions); and (ii) to hedge against an

increase in the price of securities or other investments that a Fund intends to purchase. Put options may have been purchased

by the relevant Funds to (i) hedge against a decrease in the market generally; and (ii) hedge against the price of securities or

other investments held by certain Funds. The purpose behind a Fund writing covered call options is typically to seek

enhanced returns and when in the opinion of the Investment Manager the exercise price together with the option premium

received (unless the written calls are repurchased) would represent an acceptable sale price for some or all of the holding. Put

options, covered by cash, may be written when in the opinion of the Investment Manager the exercise price less the option

premium received (unless the written puts are repurchased) would represent an acceptable purchase price for a holding.

The Funds did not engage in the efficient portfolio management techniques of repurchase, reverse repurchase and stock

lending arrangements.

Details of all open transactions at the half financial year end are disclosed in the Portfolio Investments.

11. FINANCIAL INSTRUMENTS DISCLOSURE

In accordance with FRS 102 (“Financial Instruments: Disclosure”), this note details the way in which the Company identifies

and manages risks associated with the use of financial instruments.

The Company‟s activities involve identification, analysis, evaluation and acceptance of risk or a combination of risks. The

most significant types of risk to the Funds are market risk, currency risk, credit risk and liquidity risk. The Company‟s risk

management policies are designed to identify and analyse these risks, set risk limits and controls and to monitor these

continuously by means of a reliable and up to date risk monitoring system.

Based on the nature and magnitude of the risks that are being entered into, rules are established for the type and frequency of

ongoing risk monitoring. Monitoring of the ex-ante risk of a Fund is conducted in accordance to the Fund‟s risk assessment

which details the Fund‟s strategy and objectives.

Market Risk

FRS 102 identifies that this risk comprises of three types of risk; market price risk, currency risk and interest rate risk. The

risk monitoring system and stress testing are used to monitor these risks.

The Investment Manager is responsible on a day-to-day basis for measuring and monitoring market risk arising from all

sources, including derivatives, counterparties, and general market movements. This control is documented in a daily VaR and

commitment report which is distributed to the Fund manager and the compliance team of the Investment Manager. The

Investment Manager is responsible for managing that risk.

Market Price Risk

This is the potential for change in the market value of instruments due to adverse movements in equity, bond, commodity,

currency and other market prices, indices or rates or changes in the anticipated or calculated volatility of these movements.

Also pricing/valuation risk has been identified as the risk that the valuation/price of a specific transaction may not be

accurate. The majority of the Funds‟ financial assets at fair value through profit and loss consist of listed investments.

Each portfolio manager of a Fund is responsible for the investment decisions relating to his Fund and uses appropriate

investment experience, research and the daily VaR report to assist in the decision making process. The composition of each

Fund is reviewed by the Board of Directors on a quarterly basis.



83

11. FINANCIAL INSTRUMENTS DISCLOSURE (continued)

Market Price Risk (continued)

By way of a weekly clinic, the Head of Funds at the Investment Manager, plus two Fund managers review the underlying investments of a specific Fund. Each Fund is reviewed by this weekly clinic at least once every five weeks. The Risk and Compliance Committee of the Investment Manager, which comprises a senior member of each department of the Investment Manager reviews each Fund and its risk using the VaR analysis at monthly meetings.

The Funds apply a VaR methodology to assess the market risk positions held and to estimate the potential economic loss based upon a number of parameters and assumptions for various changes in market conditions. VaR is a method used in measuring financial risk by estimating the potential negative change in a Fund not to be exceeded given a certain confidence level and over a specified time horizon.

The Funds uses a Monte Carlo simulation to calculate VaR and uses a “Full Valuation Methodology” to theoretically value every security that forms part of a Fund. Each security is broken down and tested against three broad risk factors and a variance-covariance matrix is constructed to carry out the simulations. These risk factors are Interest Rates, Market Indices and Exchange Rates. A figure is calculated based on both a one day and two week movement and VaR is calculated as 1 day and then scaled to a 1 month Var. The two week movement is used to assess potential losses in periods of sustained downside volatility.

Objectives and limitations of the VaR Methodology

The Funds use simulation models to assess possible changes in the market value of each Fund based on historical data. The default time horizon for the historical simulation model is 500 days (2 years), although this can be amended to 1 year if deemed appropriate. The VaR models are designed to measure market risk in a normal market environment. The models assume that any changes occurring in the risk factors affecting the normal market environment will follow a lognormal distribution. The distribution is calculated by using exponentially weighted historical data. The use of VaR has limitations because it is based on historical correlations and volatilities in market prices and assumes that future price movements will follow a statistical distribution.

Due to the fact that VaR relies significantly on historical data to provide information and may not clearly predict the future changes and modifications of the risk factors, the probability of large market moves may be underestimated if changes in risk factors fail to align with the normal distribution assumption. VaR may also be under or overestimated due to assumptions placed on risk factors and the relationship between such factors for specific instruments. Even though positions may change throughout the day, the VaR only represents the risk of a Fund at the close of each business day and it does not account for any losses that may occur beyond the 99% confidence level.

In practice, the actual trading results will differ from the VaR calculation and, in particular the calculation does not provide a meaningful indication of profits and losses in stressed market conditions. Stress tests are carried out on a number of predefined scenarios that form part of a separate calculation. To determine the reliability of the VaR model, actual outcomes are monitored regularly to test validity of the assumptions and the parameters used in the VaR calculation.

The table below sets out the Funds' sensitivity to extreme market conditions and tracks the movement were such market conditions to be encountered.


Fund

Confidence

level Currency

1 Day

VaR% Min Average Max

Average level

of leverage

Asia Pacific Fund 99% USD 1.97% 1.56% 1.83% 2.02% -*

Global Equity Fund 99% GBP 2.01% 1.86% 2.00% 2.16% -*

UK Fund 99% GBP 2.26% 1.79% 1.99% 2.26% -*

European Fund 99% EUR - - - - -*

Sterling Bond 99% GBP 0.69% 0.64% 0.75% 0.98% 1.96

Equity Fund 99% GBP 1.61% 1.12% 1.35% 1.61% -*

Global Bond Fund 99% USD 0.79% 0.45% 0.60% 0.79% 2.29


Creation Fund 99% USD 1.97% 1.65% 1.82% 1.97% -*

Alternatives Fund 99% GBP 0.70% 0.54% 0.64% 0.70% -*

Cautious Income Fund 99% GBP 0.95% 0.92% 0.96% 1.08% -*



84

11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)

Objectives and limitations of the VaR Methodology (continued)

As at 30 April 2015

Fund

Confidence

level Currency

1 Day

VaR% Min Average Max

Average level

of leverage

Asia Pacific Fund 99% USD 1.72% 1.49% 1.84% 2.02% - *

Global Equity Fund 99% GBP 1.82% 1.61% 1.81% 2.05% - *

UK Fund 99% GBP 1.85% 1.78% 1.91% 2.11% - *

European Fund 99% EUR 2.10% 2.10% 2.25% 2.85% - *

Sterling Bond 99% GBP 0.63% 0.29% 0.57% 0.70% 1.85

Equity Fund 99% GBP 1.40% 1.11% 1.28% 1.40% - *

Global Bond Fund 99% USD 0.52% 0.52% 1.67% 2.05% 2.62


Creation Fund 99% USD 1.62% 1.62% 1.67% 1.80% - *

Alternatives Fund 99% GBP 0.54% 0.37% 0.46% 0.54% - *

Cautious Income Fund 99% GBP 0.95% 0.78% 0.92% 1.04% - *

Average level of leverage is calculated as the sum of the notionals of the derivatives used.

* No leverage was used in these Funds during the half financial year.

VaR Assumptions

The VaR that the Funds measure is an estimate, using a confidence level of 99%, of the potential loss that is not expected to

be exceeded if the current market risk positions were to be held unchanged for one day and two weeks. The use of a 99%

confidence level means that, within a one day horizon, losses exceeding the VaR figure should occur on average, not more

than once every hundred days.

Other Price Risk

Other price risk is managed by monitoring the schedule of investments and the Investment Manager‟s legal and compliance

team monitoring program which incorporates a review of the investment restrictions.

Currency Risk

Currency risk is defined by FRS 102 as the risk that the fair value or future cash flows of a financial instrument will fluctuate

because of changes in foreign exchange rates. Currency risk arises on financial instruments that are denominated in a

currency other than the Functional Currency in which they are measured. The Funds have exposures to currencies other than

their Functional Currency and their main investment area. This risk is considered to be normal market exposure and

consistent with the benchmark which is set for each Fund.

The Investment Manager has the ability within their investment powers to hedge any significant exposure to one particular

currency that may result from the bottom-up stock selection process. This was exercised on the Asia Pacific Fund, Sterling

Bond Fund, Equity Fund and the Global Bond Fund during the half financial year ended 31 October 2015.

The Global Bond Fund also utilises share Class hedging to reduce the exposure of the GBP share Class to fluctuations in the

Functional Currency of the Fund which is USD. Forward currency contracts held as at 31 October 2015 are included in the

Portfolios of Investments.



85


Currency Risk (continued)

The ongoing risk relating to FX rate fluctuations is reviewed by the Investment Manager‟s Legal and Compliance

Committee, in line with the underlying investments.

The following table sets out the total exposure to foreign currency risk for each Fund, possible currency movement and the

impact on the Net Assets Attributable to Holders of Redeemable Shares of each Fund of these possible currency movements.

This exposure can result in an equal increase or decrease in Net Assets.


Asia Pacific Fund

Currency

Assets/(Liabilities)

in USD

Hedging in

USD

Total Exposure

in USD

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund USD

HKD 38,589,389 - 38,589,389 42.31% 5% 1,929,469

INR (962) - (962) 0.00% 5% (48)

KRW 4,273,027 - 4,273,027 4.68% 5% 213,651

PHP 3,273,332 - 3,273,332 3.59% 5% 163,667

SGD 13,317,603 (5,198) 13,312,405 14.60% 5% 665,620

THB 6,778,805 - 6,778,805 7.43% 5% 338,940

TWD - - - 0.00% 5% -

Total 66,231,194 (5,198) 66,225,996 72.61% 3,311,299

Global Equity Fund

Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

CAD 2,195,748 - 2,195,748 4.18% 5% 109,787

CHF 2,105,155 - 2,105,155 4.01% 5% 105,258

EUR 3,620,024 - 3,620,024 6.90% 5% 181,001

JPY 6,076,721 - 6,076,721 11.58% 5% 303,836

SEK 2,540,059 - 2,540,059 4.84% 5% 127,003

USD 28,809,810 - 28,809,810 54.91% 5% 1,440,491

Total 45,347,517 - 45,347,517 86.42% 2,267,376



86



As at 31 October 2015 (continued)

UK Fund

Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

EUR 6,174 - 6,174 0.03% 5% 309

USD 6,516 - 6,516 0.03% 5% 326

Total 12,690 - 12,690 0.06% 635

European Fund

As of 31 October 2015, there is no exposure in foreign currency in European Fund.

Sterling Bond Fund

Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

BRL 1,032,003 - 1,032,003 0.77% 5% 51,600

CNY - - - 0.00% 5% -

EUR 3,221,082 (3,307,043) (85,961) (0.06%) 5% (4,298)

MXN 4,284,350 - 4,284,350 3.20% 5% 214,218

USD 43,747,564 (38,451,392) 5,296,172 3.96% 5% 264,809

Total 52,284,999 (41,758,435) 10,526,564 7.87% 526,329

Equity Fund

Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

EUR 5,671,088 - 5,671,088 4.39% 5% 283,554

USD 54,448,551 - 54,448,551 42.13% 5% 2,722,428

Total 60,119,639 - 60,119,639 46.52% 3,005,982



87




Global Bond Fund

Currency


in USD

Hedging in

USD

Total Exposure in

USD

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund USD

AUD - - - 0.00% 5% -

BRL 989,949 - 989,949 1.09% 5% 49,497

EUR 182 (4,862,228) (4,862,046) (5.35%) 5% (243,102)

GBP 40,879,620 (40,531,964) 347,656 0.38% 5% 17,383

MXN 5,660,162 - 5,660,162 6.23% 5% 283,008

SGD - - - 0.00% 5% -

Total 47,529,913 (45,394,192) 2,135,721 2.35% 106,786


Currency


in USD

Hedging in

USD

Total Exposure in

USD

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund USD

AUD 228,986 - 228,986 2.12% 5% 11,449

CAD 414,626 - 414,626 3.85% 5% 20,731

CHF 509,309 - 509,309 4.72% 5% 25,465

DKK 80,057 - 80,057 0.74% 5% 4,003

EUR 1,182,050 - 1,182,050 10.96% 5% 59,103

GBP 866,492 - 866,492 8.04% 5% 43,325

HKD 77,658 - 77,658 0.72% 5% 3,883

JPY 1,015,998 - 1,015,998 9.42% 5% 50,800

NZD 22,654 - 22,654 0.21% 5% 1,133

SEK 75,941 - 75,941 0.70% 5% 3,797

SGD 65,401 - 65,401 0.61% 5% 3,270

Total 4,539,172 - 4,539,172 42.09% 226,959

Alternatives Fund

Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

USD 987,610 - 987,610 4.39% 5% 49,380

Total 987,610 - 987,610 4.39% 49,380



88





Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

EUR 287,182 - 287,182 2.53% 5% 14,359

USD 2,010,825 - 2,010,825 17.73% 5% 100,541

Total 2,298,007 - 2,298,007 20.26% 114,900

As at 30 April 2015

Asia Pacific Fund

Currency


in USD

Hedging in

USD

Total Exposure in

USD

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund USD

HKD 34,712,163 (253,544) 34,458,619 34.15% 5% 1,722,931

INR 3,888,604 - 3,888,604 3.85% 5% 194,430

KRW 18,506,580 - 18,506,580 18.34% 5% 925,329

PHP 3,189,211 - 3,189,211 3.16% 5% 159,461

SGD 11,670,176 (455,334) 11,214,842 11.12% 5% 560,742

THB 6,758,063 - 6,758,063 6.70% 5% 337,903

TWD 5,494,509 - 5,494,509 5.45% 5% 274,725

Total 84,219,306 (708,878) 83,510,428 82.77% 4,175,521

Global Equity Fund

Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

CAD 1,941,223 - 1,941,223 3.13% 5% 97,061

CHF 1,124,568 (849,840) 274,728 0.44% 5% 13,736

EUR 3,068,737 - 3,068,737 4.95% 5% 153,437

JPY 8,022,408 - 8,022,408 12.93% 5% 401,120

SEK 3,197,522 - 3,197,522 5.15% 5% 159,876

USD 38,329,116 - 38,329,116 61.76% 5% 1,916,456

Total 55,683,574 (849,840) 54,833,734 88.36% 2,741,686

UK Fund

Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

EUR 17,559 - 17,559 0.07% 5% 878

Total 17,559 - 17,559 0.07% 878



89



As at 30 April 2015 (continued)

European Fund

Currency


in EUR

Hedging in

EUR

Total Exposure in

EUR

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund EUR

CHF 156,711,308 - 156,711,308 9.71% 5% 7,835,565

DKK 81,613,596 - 81,613,596 5.06% 5% 4,080,680

GBP 267,828,397 - 267,828,397 16.60% 5% 13,391,420

NOK 2,189 - 2,189 0.00% 5% 109

SEK 95,618,580 - 95,618,580 5.92% 5% 4,780,929

Total 601,774,070 - 601,774,070 37.29% 30,088,703

Sterling Bond Fund

Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

BRL 1,541,968 - 1,541,968 1.13% 5% 77,098

CNY - - - 0.00% 5% -

EUR 4,042,786 (4,069,131) (26,345) (0.02%) 5% (1,317)

INR - 1,408,423 1,408,423 1.03% 5% 70,421

MXN 4,630,285 - 4,630,285 3.39% 5% 231,514

SEK - 2,692,241 2,692,241 1.97% 5% 134,612

TWD - 979,089 979,089 0.72% 5% 48,954

USD 41,034,328 (28,499,862) 12,534,466 9.17% 5% 626,723

Total 51,249,367 (27,489,240) 23,760,127 17.39% 1,188,005

Equity Fund

Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

EUR 6,404,563 - 6,404,563 4.95% 5% 320,228

USD 49,032,496 - 49,032,496 37.90% 5% 2,451,625

Total 55,437,059 - 55,437,059 42.85% 2,771,853



90




Global Bond Fund

Currency


in USD

Hedging in

USD

Total Exposure in

USD

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund USD

AUD - - - 0.00% 5% -

BRL 1,486,553 - 1,486,553 1.49% 5% 74,328

EUR 3,732,457 (4,144,809) (412,352) (0.41%) 5% (20,618)

GBP 42,040,411 (44,359,195) (2,318,784) (2.32%) 5% (115,939)

IDR - 252,854 252,854 0.25% 5% 12,643

INR - 4,749,191 4,749,191 4.75% 5% 237,460

MXN 7,864,240 - 7,864,240 7.86% 5% 393,212

SEK - 3,159,532 3,159,532 3.16% 5% 157,977

Total 55,123,661 (40,342,427) 14,781,234 14.78% 739,063


Currency


in USD

Hedging in

USD

Total Exposure in

USD

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund USD

AUD 241,363 - 241,363 2.22% 5% 12,068

CAD 488,015 - 488,015 4.48% 5% 24,401

CHF 597,195 - 597,195 5.49% 5% 29,860

DKK 83,970 - 83,970 0.77% 5% 4,199

EUR 1,189,561 - 1,189,561 10.93% 5% 59,478

GBP 803,507 - 803,507 7.38% 5% 40,175

HKD 95,569 - 95,569 0.88% 5% 4,778

JPY 1,033,492 - 1,033,492 9.49% 5% 51,675

NZD 23,190 - 23,190 0.21% 5% 1,160

SEK 128,365 - 128,365 1.18% 5% 6,418

SGD 82,106 - 82,106 0.75% 5% 4,105

Total 4,766,333 - 4,766,333 43.78% 238,317

Alternatives Fund

Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

USD 979,710 - 979,710 4.72% 5% 48,986

Total 979,710 - 979,710 4.72% 48,986



91





Currency


in GBP

Hedging in

GBP

Total Exposure in

GBP

Currency

Exposure as a

% Net Assets

Reasonable %

movement in

Currency

Impact on Net

Assets of the

Fund GBP

EUR 358,666 - 358,666 3.53% 5% 17,933

USD 841,118 - 841,118 8.28% 5% 42,056

Total 1,199,784 - 1,199,784 11.81% 59.989

Limitations of sensitivity analysis on foreign currency risk

The above analysis is included for the purposes of FRS 102 only and is not used by management in managing risk. This

currency risk sensitivity analysis is based on an estimate of the impact on the Net Assets Attributable to Holders of

Redeemable Shares of each Fund, assuming a hypothetical 5% movement in exchange rates. Actual trading results could

differ from the above sensitivity analysis, and the difference could be material.

Interest Rate Risk

This risk is defined as the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The value of investments in interest bearing securities may be subject to price volatility due to changes in interest rates. An increase in interest rates will generally reduce the value of debt securities that are issued and outstanding, while a decline in interest rates will generally increase the value of debt securities that are issued and outstanding.

The magnitude of these price fluctuations will be greater when the maturity of the outstanding securities is longer. Changes in the value of securities held by a Fund due to interest rates change may cause the net asset value per Share of the Fund to go up or down because of the effect of changing interest rates on the value of the Fund‟s portfolio of debt securities. The investment manager monitors the exposure within the Funds on an ongoing basis whilst observing the investments objectives of the Funds.

The majority of the financial assets of the Company are equity shares and other investments which neither pay interest nor have a maturity date. For the two bond Funds, the Sterling Bond Fund and the Global Bond Fund, the table below shows the Funds‟ sensitivity to interest rate risk as at 31 October 2015.

Fund 31 October 2015 Duration 30 April 2015 Duration

Sterling Bond Fund 0.5 years 1.5 years

Global Bond Fund 3.1 years 0.5 years

Duration is a measure of the sensitivity of the price of a fixed-income investment to a change in interest rates and is expressed in financial years. Funds with higher duration have a greater interest rate risk. Generally, the value of debt securities will tend to decrease in value when interest rates rise and vice versa. Shorter term securities are less sensitive to interest rate changes than longer term securities, but they also usually offer lower yield.

The interest rate profile of the Funds‟ financial assets as at 31 October 2015 is as follows:


Floating rate

financial assets

Fixed rate financial

assets

Financial assets on

which no interest is

paid Total

Sterling Bond Fund 48,095,167 73,063,103 5,503,150 126,661,420

Equity Fund 6,388,752 - 15,392,654 21,781,406

Global Bond Fund 51,630,195 55,384,240 - 107,014,435

Cautious Income 10,082,748 8,508,990 - 18,591,738



92


Interest Rate Risk (continued)

The interest rate profile of the Funds‟ financial assets as at 30 April 2015 is as follows:

As at 30 April 2015

Floating rate

financial assets

Fixed rate financial

assets

Financial assets on

which no interest is

paid Total

Sterling Bond Fund 49,045,386 71,525,469 520,000 121,090,855

Equity Fund 5,275,635 - 16,020,842 21,296,477

Global Bond Fund 35,066,171 55,409,565 - 90,475,736

Cautious Income Fund 147,915 480,057 - 627,972

Credit Risk

This is the risk of loss arising if a counterparty fails to perform its obligations subsequent to the provision of credit facilities

(either on or off balance sheet). The Company will be exposed to a credit risk on parties with whom it trades and will also

bear the risk of settlement default. The Company seeks to minimise concentrations of credit risk by undertaking transactions

with a large number of counterparties on recognised and reputable exchanges. The Investment Manager monitors the credit

risk of the issuing of shares in the Funds. All brokers used are approved for trading purposes by the Investment Manager‟s

Legal and Compliance Committee.

The Sterling Bond Fund and the Global Bond Fund hold a number of futures which are held with Merrill Lynch. The

counterparty is approved for trading purposes by the Investment Manager‟s Legal and Compliance Committee.

Cash Management

The cash balance of all the Funds of the Company are managed by the Custodian and swept into either a bank account with

the Custodian itself, or another bank on a list prepared by the Custodian and approved by the Investment Manager. The risk

of repayment for all deposits held with the bank, including insolvency or sovereign risk, is solely for the account of the client.

This activity no longer takes place since end of March 2015 as the cash balances on the Funds are too small. As at 31 October

2015 the Company held no time deposits (30 April 2015: Nil).

The tables below detail the Funds‟ exposure to credit risk. Cash amounts are held with the Custodian Citibank International

Limited, Ireland Branch which has a credit rating of A1 (30 April 2015: A1 Moody‟s). Derivative instruments are held with

BNY Mellon with a credit rating of A1 Moody‟s and Merrill Lynch International with a credit rating of A (Standard &

Poor‟s).

31 October 2015 30 April 2015

USD USD

Asia Pacific Fund

Cash 5,669,206 6,114,691

Receivable from investments sold 24,414 932,305

Other receivables 146,502 123,636

Total 5,840,122 7,170,632



93


Credit Risk (continued)


GBP GBP

Global Equity Fund

Cash 2,178,428 2,797,179

Receivable from investments sold – 3,804,908


Total 2,394,009 7,391,606


GBP GBP

UK Fund

Cash 1,235,242 837,378


Total 1,301,519 999,621


EUR EUR

European Fund

Cash 3,248,978 248,085,953

Receivable from investments sold – 39,471,869

Other receivables – 3,218,222

Total 3,248,978 290,776,044


GBP GBP

Sterling Bond Fund

Cash 4,421,546 13,406,774

Other receivables 4,912,803 3,006,501

Total 9,334,349 16,413,275


GBP GBP

Equity Fund

Cash 1,483,826 1,129,018


Total 1,741,250 1,335,622



94




USD USD

Global Bond Fund

Cash 3,453,349 10,751,638

Other receivables 3,872,705 2,150,434

Total 7,326,054 12,902,072


USD USD


Cash 31,622 236,761

Receivable from investments sold – 72,309


Total 70,535 377,017


USD USD

Alternatives Fund

Cash 172,997 1,884,327


Total 177,050 1,980,357


GBP GBP


Cash 1,258,204 945,264


Total 1,317,072 1,018,758

Included in the cash balances are the following amounts which are held with Merrill Lynch International and represent the

collateral for open futures contracts:


Sterling Bond Fund GBP 1,826,437 2,268,255

Global Bond Fund USD 1,957,978 1,456,045



95



The credit rating profile of the Sterling Bond Fund, Global Bond Fund, Equity Fund and Cautious Income Fund (which are

the four Funds that hold bonds) financial assets, with reference to S&P or Moody as of 31 October 2015 are as follows:

Sterling Bond Fund

As of 31 October 2015

Credit Rating GBP

AA 10,273,778

A 4,272,831

BBB 49,409,096

BB 20,996,849

B 4,052,859

Non-Rated Securities 37,656,009

Total 126,661,422

Equity Fund


Credit Rating GBP


Total 21,781,406

Global Bond Fund


Credit Rating USD

AA 2,839,453

A 5,646,972

BBB 35,686,891

BB 14,864,729

B 3,912,500


Total 85,206,966



Credit Rating GBP

AA 474,294

BB 104,778

Non-Rated Securities 598,188

Total 1,177,260



96



The credit rating profile of the Sterling Bond Fund, Global Bond Fund, Equity Fund and Cautious Income Fund (which are

the four Funds that hold bonds) financial assets, with reference to S&P or Moody as of 30 April 2015 are as follows:

Sterling Bond Fund

As of 30 April 2015

Credit Rating GBP

AA 11,831,102

A 6,749,991

BBB 41,091,464

BB 23,141,345

B 5,074,327


Total 121,090,855

Equity Fund

As of 30 April 2015

Credit Rating GBP


Total 21,296,477

Global Bond Fund

As of 30 April 2015

Credit Rating USD

AA 7,343,750

A 7,852,178

BBB 35,050,052

BB 14,283,798

B 4,283,798


Total 90,475,736


As of 30 April 2015

Credit Rating GBP

AA 480,057

Non-Rated Securities 147,915

Total 627,972



97


Liquidity Risk

The assets of the Funds comprise of mainly readily realisable securities, which can generally be sold within 1 week. Liquidity

is assessed by taking the average number of trading days of each position in each Fund, assuming that each position accounts

for at least 25% of the daily trading volume. The main liability of the Funds tends to be outstanding payables on the purchase

of investments and the redemption of any Shares that investors wish to sell. All financial liabilities are due to mature within

one financial year. The Investment Manager monitors the volume and turnover of the portfolio for liquidity purposes.

The table below analyses the liquidity of the Funds‟ liabilities as at 31 October 2015 and 30 April 2015:


Less than 1

month Total

Less than 1

month Total

USD USD USD USD

Asia Pacific Fund

Liabilities

Financial derivative position - - 749 749

Other liabilities 8,079,616 8,079,616 927,879 927,879

Net assets attributable to holders of redeemable shares 91,208,106 91,208,106 100,893,382 100,893,382

Total Liabilities 99,287,722 99,287,722 101,822,010 101,822,010


Less than 1

month

1 to 6

months Total

Less than 1

month

1 to 6

months Total

GBP GBP GBP GBP GBP GBP

Global Equity Fund

Liabilities

Financial derivative position - - - - 2,308 2,308

Other liabilities 290,150 - 290,150 4,857,111 - 4,857,111

Net assets attributable to holders of

redeemable shares 52,469,023 - 52,469,023 62,057,365

- 62,057,365

Total Liabilities 52,759,173 - 52,759,173 66,914,476 2,308 66,916,784


Less than 1

month Total

Less than 1

month Total

GBP GBP GBP GBP

UK Fund

Liabilities

Other liabilities 346,263 346,263 540,481 540,481





98


Liquidity Risk (continued)


Less than 1

month Total

Less than 1

month Total

EUR EUR EUR EUR

European Fund

Liabilities

Other liabilities 3,248,978 3,248,978 32,467,937 32,467,937

Net assets attributable to holders of redeemable shares - - 1,613,863,962 1,613,863,962

Total Liabilities 3,248,978 3,248,978 1,646,331,899 1,646,331,899


Less than 1 1 to 6 Less than 1 1 to 6

month months Total month months Total

GBP GBP GBP GBP GBP GBP

Sterling Bond Fund

Liabilities

Financial derivative position 204,544 - 204,544 - 489,059 489,059

Other liabilities 2,008,513 - 2,008,513 2,107,278 - 2,107,278



- 136,718,340

Total Liabilities 135,995,771 - 135,995,771 138,825,618 489,059 139,314,677


Less than 1

month Total

Less than 1

month Total

GBP GBP GBP GBP

Equity Fund

Liabilities





Less than

1 month

1 to 6

months Total

Less than 1

month

1 to 6

months Total

USD USD USD USD USD USD

Global Bond Fund

Liabilities

Financial derivative position 460,629 - 460,629 - 2,414,765 2,414,765

Other liabilities 1,220,157 - 1,220,157 1,421,640 - 1,421,640



- 100,076,906

Total Liabilities 92,533,020 - 92,533,020 101,498,546 2,414,765 103,913,311



99


Liquidity Risk (continued)


Less than 1

month Total

Less than 1

month Total

USD USD USD USD


Liabilities





Less than 1

month Total

Less than 1

month Total

USD USD USD USD

Alternatives Fund

Liabilities





Less than 1

month Total

Less than 1

month Total

GBP GBP GBP GBP


Liabilities

Other liabilities 135,947 135.947 114,346 114,346

Net assets attributable to holders of redeemable shares 11,340,614 11340,614 10,158,702 10,158,702


ASSOCIATED RISK FOR DERIVATIVE INSTRUMENTS

The Company may use derivative instruments traded on an organised exchange and/or on over-the-counter markets for

investment purposes and/or efficient portfolio management in accordance with the investment objective and the policy of the

Fund. The use of these strategies involves certain special risks, including but not limited to: (i) dependence on the ability to

predict movements in the prices of securities being hedged and movement in interest rates; (ii) imperfect correlation between

the hedging instruments and the securities or market sectors being hedged; (iii) the possible absence of a liquid market for

any particular instrument; (iv) possible impediments to effective portfolio management or the ability to meet repurchase

requests or other short-term obligations because of the percentage of a Fund‟s assets segregated to cover its obligations; (v)

the risk of counterparty default delaying or impeding the recovery of a Fund‟s assets; (vi) the fact that skills needed to use

these instruments are different from those needed to select the Fund‟s securities; and (vii) the potential loss arising from the

use of FDI or EPM may not be predictable and may even exceed the margin or other collateral paid. A Fund‟s ability to use

these strategies may be limited by market conditions, regulatory limits and tax considerations and these strategies may be

used only in accordance with the investment objectives of the Fund.



100


ASSOCIATED RISK FOR DERIVATIVE INSTRUMENTS (continued)

Derivative instruments are only utilised within the Company for the purposes of reducing risk either by hedging exposure or

reducing volatility. Derivative exposures are monitored on a daily basis by the Investment Manager‟s Legal and Compliance

Committee. Details of derivative contracts held by the Company as at 31 October 2015 are included in the Portfolio

Investments.

FAIR VALUE ESTIMATION

The Company adopted FRS 102, effective 1 January 2015. FRS 102 duplicates the previous policy, FRS 29 Financial

Instruments Disclosure, of the three-level fair value measurement hierarchy however there are distinct differences in these

Classifications for Funds in preparing financial statements. The table below is to help avoid misinterpretation of this change

in policy in that it is a summary of the two different approaches. Additionally the comparative figures have been disclosed in

accordance with both the old and new accounting policies.

Prior half financial year‟s

Classification Valuation methodology Current half financial year‟s

Classification Level 1 Quoted prices for identical instruments in

active markets

Level A

Level 2 Prices of recent transactions for identical

instruments

Level B Valuation techniques using observable market

data

Level C Level 3 Valuation techniques using non-observable

data

This requires the Funds to classify fair value measurements using a fair value hierarchy that reflects the significance of the

inputs used in making the measurements. The fair value hierarchy has the following levels:

• Level A - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level B - When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of

fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the

transaction took place.

• Level C - If the market for the asset is not active and recent transactions of an identical asset on their own are not a good

estimate of fair value, an entity estimates the fair value by using a valuation technique, based on observable market data or

non-observable market data.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on

the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the

significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses

observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level C

measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement

and consideration of factors specific to the asset or liability.



101


FAIR VALUE ESTIMATION (continued)

The following table analyses within the fair value hierarchy, each Fund‟s financial assets and financial liabilities designated

at fair value through profit or loss on 31 October 2015:

Level A

Level B

Level C

Total

Asia Pacific Fund USD USD USD USD

Investments in Securities 93,050,110 397,490 - 93,447,600

Other Financial Instruments - - 18 18

Total Investments 93,050,110 397,490 18 93,447,618

Global Equity Fund GBP GBP GBP GBP

Investments in Securities 50,365,164 - - 50,365,164

Other Financial Instruments - - - -

Total Investments 50,365,164 - - 50,365,164

UK Fund GBP GBP GBP GBP



Sterling Bond Fund GBP GBP GBP GBP

Investments in Securities 11,730,700 - 114,930,722 126,661,422

Other Financial Instruments (204,544) - 470,664 266,120

Total Investments 11,526,156 - 115,401,386 126,927,542

Equity Fund GBP GBP GBP GBP

Investments in Securities 35,225,406 93,120,976 - 128,346,382

Total Investments 35,225,406 93,120,976 - 128,346,382

Global Bond Fund

Investments in Securities - - 85,206,966 85,206,966

Other Financial Instruments (184,856) - (207,385) (392,241)

Total Investments (184,856) - 84,999,581 84,814,725


Creation Fund USD USD USD USD



Alternatives Fund GBP GBP GBP GBP



Cautious Income Fund GBP GBP GBP GBP

Investments in Securities 4,140,417 5,726,932 292,140 10,159,489

Total Investments 4,140,417 5,726,932 292,140 10,159,489



102


FAIR VALUE ESTIMATION (continued)

At 30 April 2015 the inputs used in valuing the Funds‟ investments, which are carried at value, were as follows:

Level A

Level B

Level C

Total

Asia Pacific Fund USD USD USD USD


Other Financial

Instruments - - (749) (749)

Total Investments 92,583,058 2,068,320 (749) 94,650,629

Global Equity Fund GBP GBP GBP GBP


Other Financial

Instruments

- (2,308) (2,308)

Total Investments 59,525,178 - (2,308) 59,522,870

UK Fund GBP GBP GBP GBP



European Fund EUR EUR EUR EUR

Investments in Securities 1,355,555,855 - - 1,355,555,855

Total Investments 1,355,555,855 - - 1,355,555,855

Sterling Bond Fund GBP GBP GBP GBP

Investments in Securities 8,022,350 - 113,068,505 121,090,855

Other Financial

Instruments 72,754 - 1,248,734 1,321,488

Total Investments 8,095,104 - 114,317,239 122,412,343

Equity Fund GBP GBP GBP GBP



Global Bond Fund USD USD USD USD


Other Financial

Instruments (35,831) - (1,843,431) (1,879,262)

Total Investments 18,159,917 72,279,988 (1,843,431) 88,596,474


Creation Fund USD USD USD USD



Alternatives Fund GBP GBP GBP GBP


Total Investments 1,777,152 17,140,399- - 18,917,551

Cautious Income Fund GBP GBP GBP GBP





103

12. NET ASSET COMPARISON

In accordance with the provisions of the Prospectus, financial assets at fair value through profit or loss are valued at the latest

mid-market quotation on its regulated market as at the Valuation Point for the purpose of calculating the net asset value.

Financial assets at fair value through profit or loss for financial statement purposes have been valued based on the latest bid

prices. The difference between the valuation methodology of the financial statements, as required by FRS 102, and the policy

in the Prospectus, results in there being differences which are detailed in the table below.


Asia Pacific

Fund

Global Equity

Fund

UK

Fund

European

Fund

USD GBP GBP EUR


Shares

Valuation in accordance with Prospectus (mid market

price) 91,384,819 52,517,954 24,606,950 -

Adjustment to the value at latest bid price (176,713) (48,931) (31,201) -

Valuation in accordance with FRS 102 91,208,106 52,469,023 24,575,749 -

Sterling Bond

Fund

Equity

Fund

Global Bond

Fund

GBP GBP USD


Shares


price) 134,101,390 129,280,828 90,925,184

Adjustment to the value at latest bid price (318,676) (28,155) (72,950)

Valuation in accordance with FRS 102 133,782,714 129,252,673 90,852,234


Creation Fund

Alternatives

Fund

Cautious Income

Fund

USD GBP GBP

Net Assets Attributable to Holders of Redeemable Shares

Valuation in accordance with Prospectus (mid market price) 10,790,855

22,553,241 11,355,440



As at 30 April 2015

Asia Pacific

Fund

Global Equity

Fund

UK

Fund

European

Fund

USD GBP GBP EUR


Shares


price) 101,199,632 62,127,709 25,785,240 1,616,378,800

Adjustment to the value at latest bid price (306,250) (70,344) (55,653) (2,514,838)

Valuation in accordance with FRS 102 100,893,382 62,057,365 25,729,587 1,613,863,962



104

12. NET ASSET COMPARISON (continued)


Sterling Bond

Fund

Equity

Fund

Global Bond

Fund

GBP GBP USD


Shares


price) 137,139,924 130,366,419 100,371,736



Global Equity

Wealth

Creation Fund

Alternatives

Fund

Cautious

Income Fund

USD GBP GBP


Shares


price) 10,915,611 20,827,921 10,235,399



For the purpose of disclosure of the Net Assets and the net asset value per Share, these financial statements disclose the

dealing net assets and net asset value per Share at which Shareholders of redeemable participating Shares can subscribe and

redeem. This is based on the valuations per the Prospectus.

Published 31 October 2015 30 April 2015 30 April 2014

Net Assets NAV Per Share Net Assets NAV Per Share Net Assets NAV Per Share

Asia Pacific Fund

Class A US$ . . . . . . . . . . . . 16,020,469 17.98 17,888,073 21.26 16,731,760 19.62

Class A Euro . . . . . . . . . . . 13,486 21.91 15,902 23.10 14,377 17.25

Class A Stg£ . . . . . . . . . . . 71,777,760 29.91 80,122,141 22.85 75,574,807 19.35

Class B US$ . . . . . . . . . . . . – – – – – –

Class B Stg£ . . . . . . . . . . . . – – – – – –

Class M Stg£ . . . . . . . . . . . 3,573,105 14.95 3,173,603 11.46 – –

Global Equity Fund

Class A US$ . . . . . . . . . . . . 1,150,172 13.68 1,156,323 23.05 1,066,859 22.91

Class A Stg£ . . . . . . . . . . . 51,367,782 13.57 60,971,423 14.83 50,163,948 13.52

Class B US$ . . . . . . . . . . . . – – – – – –

Class B Stg£ . . . . . . . . . . . . – – – – – –

UK Fund

Class A Stg£ . . . . . . . . . . . 24,550,741 13.14 25,634,245 13.48 27,418,944 12.85

Class B Stg£ . . . . . . . . . . . . 56,209 13.12 150,995 13.49 142,636 12.86



105

12. NET ASSET COMPARISON (continued)

Published 31 October 2015

30 April 2014 30 April 2015 30 April 2014

Net Assets NAV Per Share Net Assets NAV Per Share Net Assets NAV Per Share

European Fund

Class A Euro . . . . . . . . . . . – – 723,363,115 18.63 371,855,269 15.94

Class A Stg£ . . . . . . . . . . . . – – 729,670,396 19.45 476,958,760 18.89

Class B Euro . . . . . . . . . . . – – 59,822,281 18.45 29,278,202 15.79

Class A Euro Acc. . . . . . . . .

… … … .

– – 103,523,010 11.62 – –

Sterling Bond Fund

Class A Stg£ . . . . . . . . . . . . 122,514,073 9.40 126,570,000 9.79 124,297,616 10.05

Class B Stg£ . . . . . . . . . . . . 26,892 9.16 27,148 9.56 48,683 9.87

Class P Stg£ . . . . . . . . . . . . 11,560,424 9.42 10,542,776 9.79 4,018,639 10.02

Equity Fund

Class A Stg£ . . . . . . . . . . . . 65,231,253 14.69 70,704,987 15.87 67,810,102 13.41

Class B Stg£ . . . . . . . . . . . . 24,048,561 14.50 22,450,184 15.66 20,220,194 13.18

Class P Stg£ . . . . . . . . . . . . 40,001,014 10.83 37,211,249 11.69 13,762,538 9.83

Global Bond Fund

Class A US$ . . . . . . . . . . . . 66,163,785 8.72 75,641,667 9.17 70,791,483 9.51

Class A Stg£ . . . . . . . . . . . . 1,890,054 13.23 1,606,412 9.06 1,813,873 9.38

Class I Euro . . . . . . . . . . . . 1,109,133 10.79 – – – –

Class I US$ Distribution . . . 21,762,212 9.17 23,123,660 9.61 15,511,564 9.88


Class A US$ Institutional . . . 10,790,855 9.97 10,915,611 10.52 7,712,700 9.97

Alternatives Fund

Class A Stg£ . . . . . . . . . . . . . 730,128 10.24 499,081 10.37 120,577 9.95

Class P Stg£ . . . . . . . . . . . . . 21,823,112 10.31 20,328,840 10.44 9,171,278 9.96


Class B Stg£ . . . . . . . . . . . . . 7,638,965 10.16 6,715,300 10.62 – –

Class P Stg£ . . . . . . . . . . . . . 3,716,475 10.20 3,520,099 10.64 – –

13. UMBRELLA STRUCTURE OF THE COMPANY AND CROSS-LIABILITY RISK

Each Fund will be responsible for paying its fees and expenses regardless of the level of its profitability. The Company is an

umbrella Fund with segregated liability between Funds. The adoption of segregated liability ensures that the liabilities

incurred on behalf of a Fund will generally be discharged solely out of the assets of that Fund and there can generally be no

recourse to the other Funds to satisfy those liabilities, notwithstanding the foregoing, there can be no assurance that, should

an action be brought against the Company in the courts of another jurisdiction that the segregated nature of the Funds would

necessarily be upheld.



106

14. DISTRIBUTIONS

The following distributions were made during the half financial year ended 31 October 2015:

Asia

Pacific

Fund

Global

Equity

Fund

UK

Fund

European

Fund

Sterling

Bond Fund

USD GBP GBP EUR GBP Dividends to holders of redeemable shares

Class A Euro 645 – – – – Class A Stg£ 3,348,017 155,477 273,386 – 3,273,946

Class A US$ 802,894 3,153 – – –

Class B Euro – – – – – Class B Stg£ – – 615 – 707

Class M Stg£ – – – – – Class P Stg£ 199,659 – – – 301,029

4,351,215 158,630 274,001 – 3,575,682

Equity

Fund

Global

Bond

Fund

Global Equity

Wealth

Creation Fund

Alternatives

Fund

Cautious

Income

Fund

GBP USD USD USD GBP

Dividends to holders of redeemable shares Class A Stg£ 123,908 51,792 – – – Class A US$ – 1,904,812 86,650 – – Class B Stg£ 74,675 – – – 157,653 Class I US$ distribution – 479,627 – – – Class P Stg£ 192,726 – –

53,650 79,337 391,309 2,436,231 86,650 53,650 236,990

The following distributions were made during the half financial year ended 31 October 2014:

Asia

Pacific

Fund

Global

Equity

Fund

UK

Fund

European

Fund

Sterling Bond

Fund

USD GBP GBP EUR GBP Dividends to holders of redeemable shares

Class A Euro 138 – – 230,559 – Class A Stg£ 720,838 51,490 303,740 931,997 3,505,296

Class A US$ 158,745 1,070 - – – Class B Euro – – 1,252 – –

Class B Stg£ – – – – 1,298 Class P Stg£ – – – – 198,640

879,721 52,560 304,992 1,162,556 3,705,234



107

14. DISTRIBUTIONS (continued)

Global

Bond

Fund

Global Equity

Wealth Creation

Fund

Alternatives

Fund

Cautious

Income Fund

USD USD GBP GBP

Dividends to holders of redeemable shares Class A Stg£ 47,086 – – –

Class A US$ 1,929,573 63,670 – –

Class B Stg£ – – – 2,761 Class I US$ distribution 380,045 – – –

Class P Stg£ – – 2,920 1,381

2,356,704 63,670 2,920 4,142

15. DIRECTORS' & RELATED PARTIES INTERESTS

In the opinion of the Directors, the Investment Manager is a related party under FRS 102 “The Financial Reporting Standard

applicable in the UK and Republic of Ireland”. Fees payable to the Investment Manager as at 31 October 2015 and 30 April

2015 and expenses incurred during the half financial year ended 31 October 2015 and 31 October 2014 are shown on the

Statement of Financial Position and the Statement of Comprehensive Income, respectively. All transactions with related

parties, Directors or any party in which they have a material interest are entered into in the ordinary course of business on

normal commercial terms.

The Board of Directors is satisfied that: (i) there are arrangements (evidenced by written procedures) in place to ensure that

the obligations set out in paragraph 1 of the Central Bank‟s UCITS Notice 14 are applied to all transactions with connected

parties; and (ii) transactions with connected parties entered into during the period complied with the obligations set out in

paragraph 1 of UCITS Notice 14.

Amounts receivable from the Investment Manager, are detailed in the Statement of Financial Position on pages 56 to 59.

Paul McNaughton is also a director of Hermes Asia ex Japan Fund and SIG – Lyrical Fund H, which are a Fund of Fund

investments held by the Waverton Equity Fund.

Johnny McClintock is also a director of Guinness Global Equity Income Fund and the Guinness Global Innovators Fund, in

which Waverton Equity Fund has invested. The Cautious Income Fund has also invested in the Guinness Global Equity

Income Fund.

The following Directors and related parties held shares in the Company as at 31 October 2015 and 30 April 2015:


Class Shares Shares

Asia Pacific Fund

Hugh Grootenhuis A Stg£ - 1,828

Global Equity Fund




108

15. DIRECTORS' & RELATED PARTIES INTERESTS (continued)


Class Shares Shares

UK Fund


European Fund


Hugh Grootenhuis A Euro - 7,038

Sterling Bond Fund


Alternatives Fund


16. SIGNIFICANT EVENTS DURING THE HALF FINANCIAL YEAR

An extraordinary general meeting of the shareholders of the European Fund was convened on 22 June 2015 where resolutions

proposing the merger between the European Fund and Odey European Focus Fund (the “Merger”) were approved. The

Merger took effect as of 30 June 2015. Pursuant to the Merger, the assets of the European Fund were transferred to Odey

European Focus Fund, a sub-fund of Odey Investment Funds plc. All shareholders of the European Fund were issued shares

in the Odey European Focus Fund in proportion to their current shareholding in the European Fund and their European Fund

shares were cancelled.

On 22 October 2015, Mr. Hugh Grootenhuis resigned as a director of the Company

17. SIGNIFICANT EVENTS POST HALF FINANCIAL YEAR END

Effective 31 October 2015:

RBC Investor Services Bank S.A. (Dublin Branch) was appointed as custodian of the Company in place of Citibank

Europe plc; and

RBC Investor Services Ireland Limited was appointed as administrator of the Company in place of Citibank

International Limited.

A revised prospectus of the Company was filed with the Central Bank for noting on 2 November 2015 to reflect the

following:

The appointment of RBC Investor Services Bank S.A. (Dublin Branch) as custodian of the Company;

The appointment of RBC Investment Services Ireland Limited as administrator of the Company;

The appointment of Bridge Consulting to provide secondees (designated individuals) who are responsible on

behalf of the Company for the discharge of a number of management functions services in respect of the

Company;



109

17. SIGNIFICANT EVENTS POST HALF FINANCIAL YEAR END (continued)

A general update to the prospectus to reflect the latest developments, including the resignation of Mr Grootenuis

as a director of the Company on 22 October 2015.

On 6 November 2015, Mr. Marc Geduldt was appointed as a director of the Company.

18. COMPARATIVE INFORMATION

Certain comparative information in the notes has been restated in order to conform with the current half financial year‟s

presentation.

19. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Directors on 10 December 2015.


Statements of Changes in Composition of Portfolio (unaudited)

110

Asia Pacific Fund

Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost USD

CK Hutchison Holdings Ltd. 506,380 9,573,206

Cheung Kong Property Holding 1113 Hk 1,003,880 8,843,949

Asia Satellite Telecommunications Holdings Ltd. 2,787,203 8,219,581

Melco Crown Entertainment Ltd. 251,000 4,647,356

JD.com, Inc. 153,300 4,456,872

NetEase, Inc. 32,581 4,314,051

Jardine Matheson Holdings Ltd. 137,500 4,272,479

Hyundai Motor Co. 26,300 3,189,079

Samsung Electronics Co., Ltd. 2,700 3,139,994

Jardine Cycle & Carriage Ltd. 135,500 3,079,244

Kulicke & Soffa Industries, Inc. 229,448 2,908,136

Noble Group Ltd. 6,550,000 2,607,215

Wynn Macau Ltd. 1,256,800 2,528,157

My Eg Services Bhd Myeg Mk 3,541,000 2,506,446

Hutchison Whampoa Ltd. 169,000 2,492,440

Cordlife Group Ltd. 2,485,043 2,375,588

Asian Pay Television Trust 3,232,200 2,135,730

SJM Holdings Ltd. 1,590,000 2,112,329

Jasmine Broadband Internet Infrastructure Fund 7,220,000 2,080,967

Jasmine International PCL 14,300,000 2,060,229

Bank of China Ltd. 4,170,000 1,929,507

Agricultural Bank of China Ltd. 4,765,000 1,918,915

China Construction Bank Corp. 2,684,000 1,918,631

Industrial & Commercial Bank of China Ltd. 3,018,000 1,882,775

Reliance Industries Ltd. 65,135 1,858,843

Pc Jeweller Ltd Pcjl In 300,000 1,814,117

Peak Sport Products Co., Ltd. 8,550,172 1,758,312

Byd Co 'H'Shs Cny1 354,000 1,605,927

China Meidong Auto Holdings Ltd. 8,348,000 1,604,387

Melco Crown Entertainment 6883 Hk 237,000 1,496,979

Bangkok Dusit Medical Services PCL 2,710,100 1,480,664

Hana Microelectronics PCL 1,359,000 1,282,208


Statements of Changes in Composition of Portfolio (unaudited) (continued)

111


Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds USD

Cheung Kong Property Holding 1113 Hk 1,003,880 8,517,574

Hutchison Whampoa Ltd. 445,000 6,526,517

Hyundai Motor Co. 42,900 6,028,851

Lotte Shopping Co., Ltd. 16,300 3,724,746

SK Telecom Co., Ltd. 16,800 3,659,988

Largan Precision Co., Ltd. 32,918 3,557,892


Coal India Ltd. 499,540 3,163,953

Thai Beverage PCL 5,000,000 2,810,310

Siam Cement PCL 173,000 2,680,515

Persistent Systems Ltd. 233,500 2,659,866

Samsung Electronics Co., Ltd. 2,627 2,655,629

Samsonite International SA 752,600 2,595,635

MediaTek, Inc. 190,000 2,424,257

BTS Group Holdings PCL 7,893,500 2,327,612

Asia Satellite Telecommunications Holdings Ltd. 1,571,420 2,315,041

GS Home Shopping, Inc. 10,000 2,276,648

My Eg Services Bhd Myeg Mk 3,541,000 2,132,923

OSIM International Ltd. 1,670,000 2,072,694

Byd Co 'H'Shs Cny1 354,000 2,044,794

Hang Lung Properties Ltd. 679,000 1,891,606

NetEase, Inc. 12,200 1,773,748

PXP Vietnam Fund Ltd. 288,048 1,727,259

Pc Jeweller Ltd Pcjl In 300,000 1,565,950

Reliance Industries Ltd. 50,000 1,544,789

Melco Crown Entertainment 6883 Hk 237,000 1,496,980


China Construction Bank Corp. 1,230,000 1,228,187

Industrial & Commercial Bank of China Ltd. 1,401,000 1,220,997

Bank of China Ltd. 1,790,000 1,201,267

Agricultural Bank of China Ltd. 2,171,000 1,183,143

Hilong Holding Ltd. 3,788,000 981,983



112


Additional Portfolio Information (unaudited) The following table summarises the fees paid by the underlying investment Fund held by the Asia Pacific Fund during the half financial year as stated in the prospectus or

applicable information held by the relevant Fund.

Names Manager Domicile

Management

fee %

Performance

fee %

Subscription

fee %

Redemption

fee %

PXP Vietnam Fund Ltd. Kevin Snowball Cayman 2.00% 0.00% 0.00% 0.00%

The boards of directors of the above mentioned underlying Fund may elect to reduce, increase, waive or calculate differently these fees with respect to certain

shareholders.



113

Global Equity Fund

Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost GBP

Svenska Handelsbanken AB 318,045 2,412,667

ON Semiconductor Corp. 219,550 1,898,185

Convergys Corp. 107,100 1,786,691

Canadian Natural Resources Ltd. 93,500 1,780,209

Casey's General Stores, Inc. 25,000 1,674,033

Union Pacific Corp. 20,610 1,256,839

Bandai Namco Holdings, Inc. 75,500 1,130,774

Roche Holding AG 6,000 1,055,724

Novartis AG 17,500 1,054,809

CDW Corp/DE 42,550 1,035,505

Old Dominion Freight Line, Inc. 13,200 584,821

Helmerich & Payne, Inc. 15,850 577,059

Bechtle AG 10,800 549,702

Entertainment-Full Paid Rts Etof Ln 139,622 335,985

Entertainment One Ltd. 139,622 335,984

Berkshire Hathaway, Inc. 3,200 270,585

Wells Fargo & Corp. 4,800 162,971

Entertainment One Rts Sub End 19/10/2015 139,622 122,363



114


Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds GBP

American Express Corp. 53,538 2,583,640

AGCO Corp. 78,100 2,578,351

Svenska Handelsbanken AB 106,015 2,412,667

Parker Hannifin Corp. 31,369 2,185,691

Bridgestone Corp. 89,000 1,890,504

Microsoft Corp. 58,670 1,770,693

Oracle Corp. 61,050 1,570,906

Avnet, Inc. 28,975 751,888

Cummins, Inc. 9,306 681,308

Helmerich & Payne, Inc. 12,700 566,774

Canadian Natural Resources Ltd. 34,600 501,134

Tech Data Corp. 11,500 469,297


CRH Plc 17,100 306,955

Berkshire Hathaway, Inc. 3,300 294,161

Svenska Handelsbanken AB 32,000 291,286

Union Pacific Corp. 3,900 242,288

Wells Fargo & Corp. 6,850 241,940

Toyota Motor Corp. 5,500 223,159

Admiral Group Plc 12,650 205,712



115

UK Fund


Dixons Carphone Plc 180,000 859,490


HSBC Holdings Plc 100,000 571,958

Poundland Group Plc 175,000 505,719

RPC Group Plc 74,000 505,611

ARM Holdings Plc 50,000 481,998

Dairy Crest Group Plc 55,000 283,021

Aviva Plc 50,000 271,196

Reckitt Benckiser Group Plc 4,250 253,915

Dunelm Group Plc 28,000 248,611

Prudential Plc 14,500 220,053


Johnson Matthey Plc 4,750 146,394

WPP Plc 8,800 118,421

BG Group Plc 11,000 105,227

Just Eat Plc 20,370 88,066


Just Eat Plc-Ent Rts Sub End 08/06/2015 20,370 1,493



116

UK Fund (continued)


Ultra Electronics Holdings Plc 45,000 831,283

Marston's Plc 490,000 780,915

Sports Direct International Plc 100,000 756,758

Centrica Plc 275,000 744,719

easyJet Plc 42,500 676,174

Compass Group Plc 50,000 515,197

Johnson Matthey Plc 20,750 477,264

Vodafone Group Plc 180,000 394,337

SABMiller Plc 6,500 236,807


BG Group Plc 15,000 169,133

CRH Plc 8,500 160,752

Inmarsat Plc 15,000 149,325

DCC Plc 2,500 131,112

Dairy Crest Group Plc 20,000 130,534

GKN Plc 36,000 104,147

Inchcape Plc 10,000 88,882

Entertainment One Ltd. - 65,079


Just Eat Plc-Ent Rts Sub End 08/06/2015 20,370 1,493



117

European Fund

Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost EUR

Ing Groep Nv Eur0.24 3,626,480 53,169,154

Deutsche Bank Ag Npv(Regd) 1,549,168 43,957,552

Svenska Cellulosa Ab-B Shs Scab Ss 1,873,773 43,821,385

Fresnillo Plc Fres Ll 3,141,261 33,783,292

Suedzucker AG 1,796,385 25,540,818

Centrica Plc 6,526,821 25,406,883

Assa Abloy 1,338,078 17,727,149

Alcatel-Lucent 3,062,798 10,270,952

Koninklijke DSM NV 160,066 8,120,176

E.ON SE 541,716 7,353,124

Holcim Ltd. 57,644 3,974,732

Orange SA 261,674 3,893,406

Husqvarna AB 493,219 3,307,685

Svenska Cellulosa Ab-B Shs 591571Q Vx 136,000 3,211,363



118

European Fund (continued)

Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds EUR

E.ON SE 6,238,389 85,388,668

Orange SA 6,494,430 83,546,162

Lloyds Banking Group Plc 76,508,760 82,225,182

Centrica Plc 22,140,380 81,662,169

Carrefour SA 3,081,212 81,338,818

Lonza Group AG 700,229 69,368,932

Koninklijke Philips NV 2,755,584 66,520,735

Holcim Ltd. 972,370 66,363,786

Danske Bank A/S 3,252,957 63,888,272

Alcatel-Lucent 18,553,131 59,783,567

International Consolidated Airlines Group SA 9,778,014 59,408,407

Koninklijke DSM NV 1,152,000 56,312,434

Ing Groep Nv Eur0.24 3,626,480 53,048,219

easyJet Plc 1,939,823 45,608,357

Fresenius Medical Care AG & Co KGaA 856,173 44,892,987

SES SA 1,635,964 44,365,769

Svenska Cellulosa Ab-B Shs Scab Ss 1,873,773 44,339,868

Deutsche Bank Ag Npv(Regd) 1,549,168 43,796,527

Suedzucker AG 3,146,408 43,008,819

Societe Television Francaise 1 3,274,590 41,656,868

Koninklijke KPN NV 12,464,367 40,852,002

Cap Gemini SA 619,221 36,021,828

Fresnillo Plc Fres Ll 3,141,261 34,315,701

Husqvarna AB 6,122,955 33,760,039

RWE AG 1,522,052 31,605,568

Securitas AB 2,990,541 26,482,255

Assa Abloy 1,338,078 23,506,412

Fomento de Construcciones y Contratas SA 1,735,051 18,081,945

Assa Abloy AB 449,768 17,931,657



119

Sterling Bond Fund


United Kingdom Gilt, 3.25%, due 22/01/44 6,000,000 6,974,985

United Kingdom Treasury Bill 5,000,000 4,993,250

Pershing Square Holdings Ltd. 6,882,000 4,387,752

LBG Capital No.2 Plc 2,535,000 3,604,038

United States Treasury Note/Bond, 3.63%, due 15/02/44 3,000,000 2,258,601

Barclays Plc, 7.00%, due 15/06/49 2,200,000 2,205,500

Treasury Bill 0% 14-10/Dec/15 2,500,000 1,604,684

PGH Capital Ltd, 6.63%, due 18/12/25 1,500,000 1,550,500

UBS Group AG 2,000,000 1,377,966

SG Issuer SA 1,000,000 1,000,000

Nationwide Building Society, 6.88%, due 11/03/49 700,000 687,050

Paragon Group of Cos Plc/The 375,000 375,000

Provident Financial Plc, 7.00%, due 04/10/17 300,000 316,320

Santander Uk Group 7.375% 15-24/06/22 200,000 200,000



120



United Kingdom Gilt, 3.25%, due 22/01/44 7,000,000 7,888,764


Barclays Plc, 7.00%, due 15/06/49 2,200,000 2,202,690

Treasury Bill 0% 14-10/Dec/15 2,500,000 1,637,253

Scottish Widows Plc, 5.13%, due 29/09/49 1,260,000 1,260,000

Cabot Financial Luxembourg SA, 6.50%, 01/04/21 1,000,000 960,111

Barclays Bank Plc, 4.75%, due 29/03/49 1,000,000 777,340

Tesco Personal Finance Plc, 1.00%, due 16/12/19 700,000 736,452

HSBC Capital Funding LP/Jersey, 8.21%, due 30/06/15 700,000 700,000

PGH Capital Ltd, 5.75%, due 07/07/21 490,000 552,079

Santander UK Plc, 7.04%, due 14/02/26 450,000 550,152

QED Finance Plc, 6.50%, due 29/07/20 500,000 540,693

Provident Financial Plc, 8.00%, due 23/10/19 300,000 347,698

Santander Uk Group 7.375% 15-24/06/22 200,000 198,784



121

Equity Fund


iShares Russell 1000 Growth ETF 127,420 7,999,258

Thesis Unit Trust Management - TM Sanditon UK Fund 5,513,784 5,500,000

HSBC MSCI WORLD UCITS ETF 434,165 4,661,593

HSBC S&P 500 UCITS ETF 316,807 4,292,479

Wells Fargo Lux Worldwide Fund - U.S. Premier Growth Fund 20,303 2,106,820

Odey Investment Funds Plc - Odey Allegra Developed Markets Fund 12,885 1,716,790

SIG - Lyrical Fund 195,081 1,319,251

Edinburgh Partners Opportunities Fund Plc - European Opportunities

Fund Plc

591,611 1,205,703

SGA Societe Generale Acceptance NV, 3.89% , due 10/02/20 1,330,000 1,204,315

Guinness Global Innovators Fund 74,389 781,509

Polar Capital Funds Plc - Japan Fund 30,284 663,220

FP Argonaut Funds - FP Argonaut European Alpha Fund 261,347 387,943

Prusik Asian Equity Income Fund 3,426 325,513



122



Wells Fargo Lux Worldwide Fund - U.S. Premier Growth Fund 78,200 7,667,246

Allianz UK & European Investment Funds - Allianz UK Growth

Fund 114,173 5,238,613

Premier Global Utilities Income Fund 5,142,885 5,059,336

Nordea 1 SICAV - North American All Cap Fund 30,533 3,187,960

Guinness Asset Management Funds Plc - Global Equity Income

Fund 99,077 1,295,670

HSBC EURO STOXX 50 UCITS ETF 11,168 303,440

Guinness Global Innovators Fund 26,750 257,474



123


Additional Portfolio Information (unaudited) The following table summarises the fees paid by the underlying investment Funds held by the Equity Fund during the half financial year as stated in the prospectus or applicable

information held by the relevant Fund.


Management

fee %

Performance

fee %

Subscription

fee %

Redemption

fee %

Edinburgh Partners Opportunities Fund Plc – European

Opportunities Fund Plc Dale Robertson Ireland 0.75% 0.00% 1.50% 0.00%

FP Argonaut Funds - FP Argonaut European Alpha Fund Barry Norris England 0.75% 0.00% 0.00% 0.00%

Guinness Asset Management Funds Plc - Global Equity

Income Fund Matthew Page Ireland 0.25% 0.00% 0.00% 2.00%

Guinness Global Innovators Fund Ireland

Hermes Asia Ex-Japan Equity Fund Jonathan Dan Pines Ireland 0.75% 0.00% 0.00% 0.00%

HSBC EURO STOXX 50 UCITS ETF Ireland 0.15% 0.00% 0.00% 0.00%

HSBC MSCI WORLD UCITS ETF Ireland 0.35% 0.00% 0.00% 0.00%

HSBC S&P 500 UCITS ETF Ireland 0.09% 0.00% 0.00% 0.00%

iShares Russell 1000 Growth ETF Diane Hsiung United States 0.20% 0.00% 0.00% 0.00%

Neptune Investment Funds - Japan Opportunities Fund Chris Taylor England 0.00% 0.00% 0.00% 0.00%

Odey Investments Plc - Odey Allegra Developed Markets

Fund Odey Asset Management LLP Ireland 0.70% 20.00% 0.00% 0.00%

Pershing Square Holdings Ltd William J. Doyle Guernsey 1.50% 0.00% 0.00% 0.00%

Polar Capital Funds Plc - Japan Fund James Salter Ireland 1.00% 10.00% 0.00% 0.00%

Prusik Asian Equity Income Fund Tom Naughton Ireland 1.00% 10.00% 0.00% 0.00%

RAM Lux Systematic Funds - Emerging Markets Equities

Fund Maxime Botti Luxembourg 1.00% 15.00% 0.00% 0.00%

Schroder Asian Alpha Plus Fund Schroder Investment MGT Ltd Britain 0.75% 0.00% 0.00% 0.00%

SIG – Lyrical Fund Andrew Wellington Ireland 0.75% 0.00% 0.00% 0.00%

Somerset Emerging Markets Dividend Growth Fund England

Source JPX-Nikkei 400 UCITS ETF Assenagon Asset MGT S.A. Ireland 0.20% 0.00% 0.00% 0.00%

Thesis Unit Trust Management - TM Sanditon UK Fund England 0.65% 0.00%

Waverton Investment Funds Plc - Global Equity Wealth

Creation Fund

Waverton Investment

Management Ltd Ireland 0.75% 0.00% 0.00% 0.00%

The boards of directors of the above mentioned underlying Funds may elect to reduce, increase, waive or calculate differently these fees with respect to certain shareholders.



124

Global Bond Fund


Treasury Bill 0%, due 14/12/15 5,000,000 4,997,950

Pershing Square Holdings Ltd. 3,100,000 3,090,250


UBS Group AG 2,000,000 2,085,000

Lloyds Bank PLC 1,425,000 2,060,906

Barclays PLC 1,600,000 1,590,000

SG Issuer SA 1,000,000 1,567,600

Santander Uk Group 7.37%, due 24/06/22 833,000 1,302,269


Paragon Group of Cos Plc/The 125,000 196,063



125




Treasury Bill 0%, due 14/12/15 5,000,000 4,999,702

Spain Government Bond, 5.15%, due 31/10/44 1,400,000 2,150,378

Mexican Bonos, 6.50%, due 10/06/21 250,000 1,581,428

Barclays Bank Plc, 4.75%, due 29/03/49 1,100,000 1,306,211

Santander Uk Group 7.37%, due 24/06/22 833,000 1,301,926

Cabot Financial Luxembourg SA, 6.50%, 01/04/21 750,000 1,126,138

Keystone Financing Plc, 9.50%, due 15/10/19 500,000 812,569

Marks & Spencer Plc, 6.13%, due 02/12/19 300,000 554,687

Marks & Spencer Plc, 6.25%, due 01/12/17 500,000 554,479

Verizon Communications, Inc., 4.50%, due 15/09/20 500,000 547,000



126



GCP Student Living Plc 1,171,566 1,500,000

Alpha-Silvaris Glob Eqy-Mgbp 1,516 1,500,000

Alpha-Quan Multi Str-E Gbp 1,478 1,500,000

Gcp Student Living Plc-C Shs Digc Ln 1,500,000 1,500,000

Spinnaker Emerging Markets Macro Fund 15,000 1,500,000

Keynes Dynamic Beta Strategy Fund 15,000 1,500,000

JPM Multi-Asset Macro Fund 875,000 1,195,250

Neuberger Berman Global Bond Absolute Return Fund 95,700 966,667

Amedeo Air Four Plus Ltd. 700,000 700,000

Channel Islands Property Fund Ltd. 500,000 500,000

3i Infrastructure Plc 116,731 178,546

International Public Partnerships Ltd. 17,130 23



127



Gcp Student Living Plc-C Shs Digc Ln 1,500,000 1,500,000

GAM Star Fund Plc - Cat Bond Fund 94,862 1,189,024

Old Mutual Global Investors Series Plc - Old Mutual Global Equity

Absolute Return

696,990 1,045,694

JPmorgan Funds - Systematic Alpha 11,135 1,017,962

Jupiter Absolute Return Fund/United Kingdom 1,979,433 1,005,156

Morgan Stanley Investment Funds - Diversified Alpha Plus Fund 31,519 985,914

IFSL North Row Liquid Property Fund 937,987 982,072

Neuberger Berman Global Bond Absolute Return Fund 96,667 966,667


International Public Partnerships Ltd. - 23



128

Alternatives Fund


Alphabet, Inc. 123 75,077

Alphabet, Inc. 123 74,486

General Dynamics Corp. 400 57,946

PDC Energy, Inc. 980 56,255


Snap-on, Inc. 300 49,002

Konica Minolta, Inc. 3,800 46,525

Convergys Corp. 1,698 44,734

ANSYS, Inc. 500 44,570

Casey's General Stores, Inc. 420 44,205

Constellation Software, Inc./Canada 105 43,552

ON Semiconductor Corp. 3,300 43,499

Corning Inc. 2,100 43,240

Facebook, Inc. 415 39,233

Gilead Sciences, Inc. 325 38,449

At&T Inc 1,343 37,290


Allergan Plc 205 33,642

British American Tobacco Plc 615 33,194

UnitedHealth Group, Inc. 275 32,466

Renishaw Plc 750 27,306

United Technologies Corp. 230 26,921

VF Corp. 340 23,837

American Express Corp. 300 23,103

Omron Corp. 500 22,770

Johnson & Johnson 230 22,519

Priceline Group, Inc./The 20 22,458

Biogen, Inc. 55 22,185

Berkshire Hathaway, Inc. 160 22,142

CenturyLink, Inc. 750 22,009

Continental Resources, Inc. 600 21,827

Pentair Plc 350 21,807

Grifols SA 550 21,805

CRH Plc 780 21,777

Cummins, Inc. 160 21,773

BASF SE 250 21,743

MetLife, Inc. 400 21,683

Ralph Lauren Corp. 164 21,511

Wesfarmers Ltd. 680 21,487

Admiral Group Plc 950 21,229



129



Baxalta, Inc. 660 21,153

Westpac Banking Corp. 700 17,336

TJX Cos, Inc./The 250 16,776

Legrand SA 290 16,407


Google, Inc. 123 75,077

Google, Inc. 123 74,486

DIRECTV 710 57,525


Parker Hannifin Corp. 506 54,037

Raytheon Corp. 495 49,089

Intuit, Inc. 450 47,025

eBay, Inc. 720 44,472

At&T Inc 1,343 43,410

Bridgestone Corp. 1,000 35,732

Telefonaktiebolaget LM Ericsson 3,190 35,290

Noble Energy, Inc. 700 32,687

Open Text Corp. 730 31,286

Gemalto NV 340 29,016

International Business Machines Corp. 164 28,022

Tech Data Corp. 450 25,025

Western Digital Corp. 316 24,392

Oracle Corp. 550 22,012

Baxter International, Inc. - 21,153

Admiral Group Plc 860 19,385


BHP Billiton Plc - 8,829



130


Additional Portfolio Information (unaudited) The following table summarises the fees paid by the underlying investment Funds held by the Alternatives Fund during the half financial year as stated in the prospectus or



Management

fee %

Performance

fee %

Subscription

fee %

Redemption

fee %

3i Infrastructure Plc Peter Sedgwick England 1.50% 0.00% 4.00% 0.00% Alpha UCITS SICAV - Quantmetrics Multi Strategy Fund Luxembourg 2.00% 20.00% 0.00% 0.00%

Alpha UCITS SICAV - Silvaris Global Equity Fund Luxembourg 1.25% 17.50% 0.00% 0.00%

CF Odey Absolute Return Fund Odey Asset Management Llp England 0.75% 0.00% 4.00% 0.00%

Channel Islands Property Fund Ltd. Tara Hutcheon Guam 06% of

gross nav 0.00% 0.00% 0.00%

FP Argonaut European Absolute Return Fund Argonaut Capital Partners LLP England 0.75% 20%% 5.25% 0.00%

GCP Infrastructure Investments Ltd. Gravis Capital Partners LLP England 1.00% 0.00% 0.00% 0.00%

Goldman Sachs Structured Investments SICAV - GS Equity Risk Premia Long/Short Port Luxembourg

0.35%

0.00%

0.00%

0.00%

HICL Infrastructure Co., Ltd. Fund InfraRed Capital Partners Guernsey 1.50% 6

mths 0.00% 0.00% 0.00%

JL Equity Market Neutral Sebastien Valeyre France 1.00% 20.00% 4.00% 0.00%

JPM Multi-Asset Macro Fund England 0.40%* 0.00% 0.00% 0.00%

Keynes Dynamic Beta Strategy Fund Ireland 0.75% 0.00% 0.00% 0.00% Lyxor Dimension IRL plc - Lyxor/Tiedemann Arbitrage Strategy Fund

Ireland 1.10% 20.00% 0.00% 0.00%

MontLake UCITS Platform Plc - Dunn WMA UCITS Fund William Dunn Ireland 0.80% 0.00% 0.00% 0.00%

Neuberger Berman Global Bond Absolute Return Fund Andrew Aurelius Johnson Ireland 0.50% 0.00% 0.00% 0.00%

Odey Investments Plc - Odey Odyssey Fund Odey Asset Management LLP Ireland 0.75% 20.00% 5.00% 0.00%

Spinnaker Emerging Markets Macro Fund Ireland 0.75% 10.00% 0.00% 0.00%

Standard Life Investments Global SICAV - Global Focused Strategies Fund

Standard Life Investments (Mutual Funds) Limited Luxembourg

0.75%

0.00%

0.00%

0.00%

Verrazzano Sicav - European Long-Short Fund Luxembourg 1.25% 0.00% 0.00% 0.00%

The boards of directors of the above mentioned underlying Funds may elect to reduce, increase, waive or calculate differently these fees with respect to certain shareholders.



131



iShares Core US Growth ETF 10,269 539,114

GCP Student Living Plc 390,522 500,000

Gcp Student Living Plc - C Shs Digc Ln 500,000 500,000

Source JPX-Nikkei 400 UCITS ETF USD Hedged 45,194 430,345

Doric Nimrod Air Two Ltd. 141,423 316,004

Channel Islands Property Fund Ltd. 300,000 300,000


SG Issuer SA 300,000 300,000

P2P Global Investments plc 25,852 271,927

MontLake UCITS Platform plc - Dunn WMA Institutional UCITS Fund 1,599 208,748


SGA Societe Generale Acceptance NV, 3.89% , due 10/02/20 170,000 153,935

RWC Funds - Global Enhanced Dividend Fund 1,498 145,312

FP Argonaut Funds - FP Argonaut European Enhanced Income Fund 75,165 109,583

JPM Multi-Asset Macro Fund 83,969 109,328

Vanguard Dividend Appreciation ETF 2,073 104,985

Waverton Investment Funds PLC - Waverton Sterling Bond Fund 10,989 104,879

WisdomTree Total Dividend Fund 2,258 104,836


Sequoia Economic Infrastructure Income Fund Ltd. 246,204 5,783



132



Gcp Student Living Plc - C Shs Digc Ln 500,000 500,000

Source JPX-Nikkei 400 UCITS ETF 5,553 428,450

Waverton Investment Funds PLC - Waverton Sterling Bond Fund 41,752 410,088

Guinness Asset Management Funds Plc - Global Equity Income Fund 26,884 351,573

IFSL North Row Liquid Property Fund 310,652 329,201


Doric Nimrod Air Two Ltd. 130,994 298,704

P2P Global Investments Plc 26,108 271,927



Premier Global Utilities Income Fund 160,140 164,592

JPmorgan Funds - Systematic Alpha 1,181 108,073



133


Additional Portfolio Information The following table summarises the fees paid by the underlying investment Funds held by the Cautious Income Fund during the half financial year as stated in the prospectus or



Management

fee %

Performance

fee %

Subscription

fee %

Redemption

fee %

Artemis Global Income Fund Jacob De Tusch-Lec Britain 0.75% 0.00% 1.00% 0.00%

BlackRock Global Funds – European Equity Income Fund Luxembourg 0.75% 0.00% 5.00% 0.00% CF Morant Wright Nippon Yield Fund Ranny Pahngli Britain 1.00% 0.00% 5.00% 0.00%

Channel Islands Property Fund Ltd. Tara Hutcheon Guam 0.6%of

GNA 0.00% 0.00% 0.00% FP Argonaut Funds - FP Argonaut European Enhanced Income Fund

Oliver Russ Britain 0.00% 0.00% 0.00% 0.00%

GCP Infrastructure Investments Ltd Gravis Capital Partners LLP Jersey 0.90% 0.00% 0.00% 0.00%

Goldman Sachs Structured Investments SICAV RBS Luxembourg 1.00% 0.00% 0.00% 0.00% iShares Core US Growth ETF United States 0.09% 0.00% 0.00% 0.00%

JPM Multi-Asset Macro Fund Britain 0.40%* 0.00% 0.00% 0.00% JPMorgan Fund ICVC - US Equity Income Fund Britain 0.75% 0.00% 0.00% 0.00% Lyxora Dimension IRL plc - Lyxor/Tiedemann Arbitrage Strategy Fund

Ireland 0.40% 0.00% 0.00% 0.00%

Martin Currie Pacific Trust Plc Andrew Graham Britain 0.75% 0.00% 0.00% 0.00%

MontLake UCITS Platform plc - Dunn WMA Institutional UCITS Fund William Dunn Ireland 0.80% 0.00% 0.00% 0.00%

RWC Funds - Global Enhanced Dividend Fund Luxembourg 0.80% 0.00% 0.00% 0.00% Schroder Asian Income Maximiser Fund Richard Sennitt Britain 0.75% 0.00% 0.00% 0.00%

Schroder European Alpha Income Fund James Sym Britain 0.75% 0.00% 0.00% 0.00%

Sequoia Economic Infrastructure Income Fund Ltd. Chris Gambrell Guernsey 0.06% 0.00% 0.00% 0.00% Somerset Emerging Markets Dividend Growth Fund Edward Lam Britain 1.00% 0.00% 5.00% 1.00%

Source JPX-Nikkei 400 UCITS ETF USD Hedged Assengon Asset MGT S.A. Ireland 0.20% 0.00% 0.00% 0.00% TB Wise Evenlode Income Fund Hugh Yarrow Britain 0.10% 0.00% 0.00% 0.00%

Vanguard Dividend Appreciation ETF Ryan E Ludt United States 0.75% 0.00% 0.00% 0.00% Waverton Investment Funds Plc – Waverton Sterling Bond Fund

Waverton Investment Management Ltd Ireland 0.75% 0.00% 0.00% 0.00%

WisdomTree Total Dividend Fund Karen Q. Wong United States 0.28% 0.00% 0.00% 0.00%

The boards of directors of the above mentioned underlying Funds may elect to reduce, increase, waive or calculate differently these fees with respect to certain

shareholders. *0% on cash, 0.5% bonds, 0.9% other investments quarterly then take 25% in shares lock up for 3 financial years.


Directors and Other Information

134

BOARD OF DIRECTORS

Mr. Hugh Grootenhuis (British) resigned 22 October 2015

Mr. John McClintock* (Irish)

Mr. Eanna McHugh* (Irish)

Mr. Paul McNaughton* (Irish)

Mr. Peter Troughton (British)

*Independent

REGISTERED OFFICE

1 North Wall Quay

Dublin 1

Ireland

INVESTMENT MANAGER, DISTRIBUTOR

AND PROMOTER

Waverton Investment Management Limited

16 Babmaes Street

London SW1Y 6AH

England

(with effect from 31 October 2015)

George‟s Quay House

43 Townsend Street

Dublin 2

Ireland

LEGAL ADVISERS IN ENGLAND

Berwin Leighton Paisner

Adelaide House

London Bridge

London EC4R 9HA

England

ADMINISTRATOR AND SHAREHOLDER

SERVICING AGENT

Citibank Europe plc

1 North Wall Quay

Dublin 1

Ireland

LEGAL ADVISERS IN IRELAND

Arthur Cox

Earlsfort Centre

Earlsfort Terrace

Dublin 2

Ireland

(with effect from 31 October 2015)

RBC Investor Services Ireland Limited

George‟s Quay House

43 Townsend Street

Dublin 2

Ireland

CUSTODIAN INDEPENDENT AUDITORS

Citibank International Limited, Ireland Branch

1 North Wall Quay

Dublin 1

Ireland

Grant Thomton

Chartered Accountants & Registered Auditors

24-26 City Quay

Dublin 2

Ireland

(with effect from 31 October 2015) COMPANY SECRETARY

RBC Investor Services Bank S.A., Dublin Branch Bradwell Limited

George‟s Quay House Arthur Cox Building

43 Townsend Street Earlsfort Centre

Dublin 2 Earlsfort Terrace

Ireland Dublin 2

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