annual report and financial statements · director’s report we are pleased to present the annual...

Annual Reportand Financial Statements

For the year ended 30 June 2019

Fidelity Institutional Funds

Fidelity Institutional Funds Annual Report and Financial Statements for the year ended 30 June 2019

Contents

Director’s Report* 2

Statement of Authorised Corporate Director’s responsibilities 3

Certification of the Annual Report and Financial Statements by Directors 3

Report of the Depositary 3

Independent Auditors’ report 4

Authorised Corporate Director’s Report*, including the financial highlights and financial statements

Market Performance review 6

Accounting Policies of Fidelity Institutional Funds and its sub-funds 8

Risk Management Policies of Fidelity Institutional Funds and its sub-funds 10

America Fund 12

Emerging Markets Fund 21

Europe (ex-UK) Fund 31

Global Focus Fund 40

Index-Linked Bond Fund 49

Japan Fund 59

Long Bond Fund 67

Pacific (ex-Japan) Fund 77

Pre-Retirement Bond Fund 85

Select Emerging Markets Equities Fund 95

Select Global Equities Fund 104

South East Asia Fund 113

Sterling Core Plus Bond Fund 122

UK Aggregate Bond Fund 134

UK Corporate Bond Fund 144

UK Fund 155

UK Gilt Fund 164

UK Long Corporate Bond Fund 174

Pan European Fund** 185

UK Investment Grade Long Credit Fund** 191

Portfolio Statements (unaudited)* 197

EU Securities Financing Transaction Regulation (unaudited) 271

Further Information* 272

*These collectively comprise the Authorised Corporate Director’s (ACD) report.

** Fund Manager reviews are not prepared for funds which are closed.

1


Director’s Report

We are pleased to present the annual report and financial statements for Fidelity Institutional Funds (the “Company”), covering the year to 30 June 2019.

Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities; but is included for the purpose of illustration only. Investors should also note that the views expressed may no longer be current and may already have been acted upon by Fidelity.

Company and Status

The Company is an open-ended investment company with variable capital incorporated in England and Wales under number IC3 and authorised by the Financial Conduct Authority (FCA) on 22 July 1997.

The Company is structured as an umbrella company comprising various funds, each of which is operated as a distinct fund, with their own portfolio of investments.

The funds in which shares are currently available are:

America Fund

Emerging Markets Fund

Europe (ex-UK) Fund

Global Focus Fund

Index-Linked Bond Fund

Japan Fund

Long Bond Fund

Pacific (ex-Japan) Fund

Pre-Retirement Bond Fund

Select Emerging Markets Equities Fund

Select Global Equities Fund

South East Asia Fund

Sterling Core Plus Bond Fund

UK Aggregate Bond Fund

UK Corporate Bond Fund

UK Fund

UK Gilt Fund

UK Long Corporate Bond Fund

In the future additional funds or new classes of shares within the existing funds, may be launched by the Authorised Corporate Director (“ACD”).

Each fund has the investment powers equivalent to those of an undertaking for collective investment in transferable securities (a UCITS) scheme as per the Prospectus.

Shareholders are not liable for the debts of the Company. A shareholder is not liable to make any further payment to the Company after they have paid the purchase price of the shares.

The Company is governed by the requirements of the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) (“OEIC Regulations”) and the FCA’s Handbook of rules and guidance, specifically the Collective Investment Schemes sourcebook (“COLL”). As permitted by the COLL, the Company no longer holds Annual General Meetings.

The Company has segregated liability status between funds. This means that the assets of a fund belong exclusively to that fund and shall not be used to discharge directly or indirectly the liability of, or claims against, any other person or body, including the Company, or any other fund.

Remuneration Disclosure

The Fidelity International Remuneration Committee has established a Global Remuneration Policy to ensure the requirements of the UCITS Directive are met at global level for all its UCITS management companies. The Remuneration Committee reviews the remuneration policy at least annually. The Directors of relevant management companies are responsible for the adoption of the Global Remuneration Policy, for reviewing its general principles at least annually, for overseeing its implementation and for ensuring compliance with relevant local legislation and regulation. The Global Remuneration Policy is consistent with and promotes sound and effective risk management and is designed not to encourage risk-taking which is inconsistent with the risk profile of the funds. The Global Remuneration Policy is in line with the business strategy, objectives, values and interests of the ACD and the funds and includes measures to avoid conflicts of interest.

During 2017 the Global Remuneration Policy was reviewed and changes were made to ensure compliance with the applicable European remuneration requirements. The Global Remuneration Policy applies to all employees, with particular focus on the staff whose professional activities have a material impact on the risk profile of the ACD or the funds (the Material Risk Takers). The UCITS Material Risk Takers (‘UCITS MRTs’) are individuals whose roles can materially affect the risk of the management company or any UCITS fund that it manages. These roles are identified in line with the requirements of the UCITS Directive and guidance issued by the European Securities and Markets Authority.

The aggregate total remuneration paid to the UCITS MRTs related to FISL, considering all the existing delegation arrangements, in respect of the performance period started 1 June 2017 and ended 30 June 2018, is EUR 20.6 million (GBP £18.3 million). This figure includes the amounts attributed either to the FISL entity or to the UCITS funds that it manages. For any additional on remuneration policy, a copy of the summary Remuneration Policy is available at https://www.fil.com.

Holdings in other sub-funds within the same Company

There were no such holdings as at 30 June 2019 (2018: none).

Objectives

The broad aim of the Company is to provide access to the global research resources and stock picking skills of Fidelity’s investment management teams throughout the world.

The aim of the equity funds is to provide investors with long term capital growth from diversified and actively managed portfolios of securities in a wide range of stock markets. The income from these funds is expected to be low. The equity funds will gain exposure to equities in the markets reflected in the title of each individual fund and in companies established outside those markets but which derive a significant proportion of their earnings from those markets.

The aim of the bond funds is to provide investors with relatively high income with the possibility of capital gains.

The investment objective and a review of the investment activities of each sub-fund during the year under review are included within the Fund Manager Reviews.

Changes to the Prospectus

For the year ended 30 June 2019 the following significant changes were made to the Prospectus and Instrument of Incorporation:

• Pan European Fund closed on 14 November 2018. Consequently, the financial statements have been prepared on a basis other than going concern.

• UK Investment Grade Long Credit Fund closed on 21 June 2019. Consequently, the financial statements have been prepared on a basis other than going concern.

2


Statement of Authorised Corporate Director’s (ACD) Responsibilities in relation to the Annual Report and Financial Statements of the Company

The Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) and Collective Investment Schemes sourcebook (COLL) require the ACD to prepare financial statements for each annual and half-yearly accounting period which give a true and fair view of the financial position of the Company and of its net revenue and net capital gains or losses on the property of the Company for the year. In preparing the financial statements the ACD is required to:

• select suitable accounting policies and then apply them consistently

• comply with the requirements of the UK Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice for Financial Statements of UK Authorised Funds issued by the Investment Management Association (IMA) in May 2014, the COLL, the Prospectus and the Instrument of Incorporation

• follow generally accepted accounting principles and applicable accounting standards

• keep proper accounting records which enable it to demonstrate that the financial statements as prepared comply with the above requirements

• prepare the financial statements on the going concern basis unless it is inappropriate to presume the Company will continue in operation

• take reasonable steps for the prevention and detection of fraud or other irregularities.

Certification of the Annual Report and Financial Statements by Directors of the ACD

In accordance with the requirements of the COLL as issued and amended by the Financial Conduct Authority, the report and financial statements are approved on behalf of the Directors of FIL Investment Services (UK) Limited, the ACD.

John Clougherty Anthony LanserDirector Director

FIL Investment Services (UK) Limited30 August 2019

Report of the Depositary to the shareholders of the Fidelity Institutional Funds

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

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

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

The Depositary must ensure that:

• the Company’s cash flows are properly monitored and that cash of the Company is booked into the cash accounts in accordance with the Regulations;

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

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

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

• the company’s income is applied in accordance with the regulations; and the instructions of the Authorised Corporate Director (“the ACD”), which is the UCITS Management Company, are carried out (unless they conflict with the regulations).

The Depositary also has a duty to take reasonable care to ensure that the Company is managed in accordance with the Regulations and Scheme documents in relation to the investment and borrowing powers applicable to the Company.

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

(i) has carried out the issue, sale, redemption and cancellation and calculation of the price of the Company’s shares and the application of the Company’s income in accordance with the Regulations and the Scheme documents of the Company; and

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

J.P. Morgan Europe LimitedLondon30 August 2019

3


Independent Auditors’ report to the shareholders of Fidelity Institutional Funds

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

In our opinion, Fidelity Institutional Funds’ financial statements:

• give a true and fair view of the financial position of the Company and each of the sub-funds as at 30 June 2019 and of the net revenue/(expenses) and the net capital gains/(losses) on the scheme property of the Company and each of the sub-funds for the year then ended; and

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law), the Statement of Recommended Practice for UK Authorised Funds, the Collective Investment Schemes sourcebook and the Instrument of Incorporation.

Fidelity Institutional Funds (the “Company”) is an open-ended investment company (‘OEIC’) with 20 sub-funds. The financial statements of the Company comprise the financial statements of each of the sub-funds. We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the Balance Sheets as at 30 June 2019; the Statements of Total Return and the Statements of Change in Net Assets Attributable to Shareholders for the year then ended; the Distribution Tables; the Accounting Policies of Fidelity Institutional Funds and its sub-funds and the Notes to the Financial Statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Emphasis of matter - financial statements prepared on a basis other than going concern

In forming our opinion on the financial statements, which is not modified, we draw attention to note 1a) to the financial statements which describes the Authorised Corporate Director’s reasons why the financial statements have been prepared on a basis other than going concern for the Company’s “UK Investment Grade Long Credit Fund” and “Pan European Fund” sub-funds.

Conclusions relating to going concern

Other than the emphasis on matter in relation to the “UK Investment Grade Long Credit Fund” and “Pan European Fund” sub-funds, we have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you when:

• the Authorised Corporate Directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Authorised Corporate Director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company’s or any of the sub-funds’ ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s or any of the sub-funds’ ability to continue as a going concern. For example, the terms on which the United Kingdom may withdraw from the European Union are not clear, and it is difficult to evaluate all of the potential implications on the Company’s trade, customers, suppliers and the wider economy.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Authorised Corporate Director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

Authorised Corporate Director’s Report

In our opinion, the information given in the Authorised Corporate Director’s Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

4


Responsibilities for the Financial Statements and the audit

Responsibilities of the Authorised Corporate Director for the financial statements

As explained more fully in the Authorised Corporate Director’s Responsibilities Statement set out on page 3, the Authorised Corporate Director is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Authorised Corporate Director is also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Authorised Corporate Director is responsible for assessing the Company’s and each of the sub-funds ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Authorised Corporate Director either intends to wind up or terminate the Company or individual sub-fund, or has no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

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

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

Use of this report

This report, including the opinions, has been prepared for and only for the Company’s shareholders as a body in accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebook as required by paragraph 67(2) of the Open-Ended Investment Companies Regulations 2001 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

OTHER REQUIRED REPORTING

Opinion on matter required by the Collective Investment Schemes sourcebook

In our opinion, we have obtained all the information and explanations we consider necessary for the purposes of the audit.

Collective Investment Schemes sourcebook exception reporting

Under the Collective Investment Schemes sourcebook we are also required to report to you if, in our opinion:

• proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records.

We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLPChartered Accountants and Statutory Auditors London30 August 2019

5


Market Review - 12 months ended 30 June 2019

Global equities gained over the 12-month period to June 2019. Healthy corporate earnings provided support, while rising US interest rates, trade issues, uncertainties in Europe, geopolitical tensions in the Middle East and concerns about emerging markets led to volatility. Equities came under pressure in the fourth quarter of 2018, as global growth concerns intensified. However, investor sentiment rebounded in 2019 in view of the accommodative monetary policy stance adopted by major economies. Expectations that the US and China would resolve their trade dispute via dialogue further supported markets. At the tail end of the period, US President Donald Trump met with his Chinese counterpart Xi Jinping during the Group of 20 (G20) summit in Osaka and agreed to restart trade negotiations. On the monetary policy front, the US Federal Reserve (Fed) kept its key interest rate unchanged in 2019 and signalled the possibility of rate cuts at its June meeting amid signs of a slowing economy. The European Central Bank (ECB) and Bank of Japan (BoJ) also indicated their readiness to introduce additional stimulus measures if needed. China also introduced policy measures to stimulate growth. Meanwhile, the UK’s exit from the European Union (EU) has been delayed until 31 October 2019, after UK politicians failed to agree on exit deals.

Against this global backdrop, US, Pacific ex Japan and Europe ex UK equities rose significantly, while Japanese stocks fell. Emerging markets gained, but underperformed most developed markets. Overall, returns in sterling terms were supported by its depreciation against the US dollar, euro and yen.

European equites ended a volatile 12-months in positive territory. The first half of the period was characterised by rising US central bank rates, a sharp slowdown in eurozone business confidence, weaker Chinese growth and rising geopolitical concerns, all of which hurt investor sentiment. There was volatility due to tensions between Italy and the European Commission, before a compromise was reached on Italy’s budget and plans to reduce its deficit. Encouragingly, markets rebounded in 2019, as investor sentiment was supported by indications of monetary policy easing by major central banks. ECB President Mario Draghi indicated that interest rates are expected to remain at current levels at least through the first half of 2020. He also said that additional monetary stimulus, including rate cuts and asset purchase programmes, would be delivered if the economic outlook does not improve. However, market returns were moderated due an escalation in trade tensions between the US and China.

UK equites ended higher over the period. Markets fell sharply towards the end of 2018 due to concerns around a slowdown in the global economy and tightening by central banks, particularly the US Fed. Against a weakening macroeconomic backdrop, the Fed adopted a more accommodative stance, while Draghi also suggested fresh stimulus measures. This alleviated investors’ concerns and markets rebounded strongly in 2019. On the policy front, the Bank of England (BoE) raised interest rates by a quarter of a percentage point, from 0.5% to 0.75%, in August 2018. However, it decided unanimously to leave interest rates unchanged at its latest meeting. Overall, the technology, basic materials and health care sectors outperformed, while telecommunications stocks lagged the broader market. Meanwhile, large-cap stocks outperformed their mid and small-cap peers.

US equities rose as expectations of a truce in US-China trade frictions and strong corporate earnings supported stock prices. The US Fed increased its benchmark interest rate two times by a total of 0.50%, to now range between 2.25% and 2.50%. However, the Fed signalled the possibility of interest rate reductions going forward, in light of an uncertain economic environment. At a sector level, utilities, consumer staples and information technology stocks were among the leading gainers.

Japanese equities fell over the year. Persistent worries about ongoing trade frictions between the US and China and its increasing impact on global trade and manufacturing weighed on investor sentiment. Nevertheless, stock prices rose over the year-to-date period in 2019, supported by an accommodative monetary policy stance by the US Fed and expectations of progress on trade negotiations between the US and China. First-quarter real GDP growth was better than expected. The increase was fuelled primarily by a faster decline in imports compared to exports, while capital spending rose. However, the upturn in momentum was expected to dissipate as the global manufacturing Purchasing Managers’ Index (PMI) continued to weaken. Earnings expectations have moderated, but stock valuations are supportive and the monetary policy remains very accommodative. In terms of style, larger companies performed relatively better than their smaller peers, while growth names outpaced value stocks. From a sector perspective, energy, consumer staples, financials and materials were among the biggest decliners, while communication services was the only sector to record positive returns.

Market Performance Review

6

Source: Refinitiv DataStream, Total Returns, GBP, 30.06.2018 - 30.06.2019Source: Refinitiv DataStream, Total Returns in GBP rebased to 100, MSCI World and BofA ML Global Broad, 30.06.2018 - 30.06.2019

80

90

100

110

120

Jun-

18

Jul-1

8

Aug-

18

Sep-

18

Oct

-18

Nov

-18

Dec

-18

Jan-

19

Feb-

19

Mar

-19

Apr-1

9

May

-19

Jun-

19

MSCI World Global Bonds

-0.24

1.68

5.40

8.19

9.93

10.93

12.23

14.36

MSCI Japan

MSCI UK

MSCI EM

MSCI Europe ex UK

Global Bonds

MSCI World

MSCI Pacific ex Japan

MSCI USA

-0.24

1.68

5.40

8.19

9.93

10.93

12.23

14.36

MSCI Japan

MSCI UK

MSCI EM

MSCI Europe ex UK

Global Bonds

MSCI World

MSCI Pacific ex Japan

MSCI USA


7

Equities in the Asia Pacific region advanced. Investor sentiment received a boost ahead of optimism over trade talks at the G20 summit. However, gains were limited amid concerns over a slowdown in global economic growth. Chinese equities declined amid concerns about a slowdown in economic activity. Trade-related frictions with the US and a domestic deleveraging campaign also led to risk aversion during most of 2018. Subsequently, investor confidence towards Chinese equities strengthened on hopes that fresh stimulus measures would aid the economy. South Korean equities declined amid subdued macroeconomic data, weak earnings outlook and depreciation of the Korean won against the US dollar. On a positive note, buying activity by foreign institutional investors buoyed Indian markets. Additionally, the incumbent government’s victory in the national general elections lifted sentiment towards Indian equities in May. Investors welcomed the stable, single-party led majority government at the Centre on expectations of political stability and business friendly economic policies. Strength in communication services and industrials stocks buoyed Australian markets. Falling bond yields led investors to favour high quality businesses with sustainable earnings and attractive dividend yields. Gains in financials and consumer staples buoyed equities in Indonesia and the Philippines, respectively. Additionally, in the Philippines, investors welcomed the results of the 13 May mid-term elections, which showed a resounding victory for President Rodrigo Roa Duterte’s coalition. At the regional level, communication services, industrials and financials ended higher.

Emerging market equities advanced. During a tumultuous period for the asset class, renewed optimism about progress on trade negotiations between the US and China and indications that the US Fed may lower interest rates boosted sentiment towards riskier assets. However, returns were partially offset due to concerns over the US-China trade war and slowing economic growth in emerging markets, which resulted in periods of volatility. Thailand recorded positive returns during the year, supported by a major uptick in June. This, coupled with hopes of interest rate cuts by the US Fed boosted investor sentiment. In Latin America, Brazilian markets were volatile but ended the period in positive territory. Political uncertainty in the country ended with the appointment of Jair Bolsonaro as President. Stock prices were also supported by the increasing likelihood of an easing monetary stance by the country’s central bank. Russian markets recorded gains as investors looked for attractively valued segments of the market, particularly those that are relatively insulated from the trade war. At a sector level, energy, financials and real estate stocks performed well.

Bonds

Fixed income markets posted positive returns over a period that was characterised by a changing monetary policy regime as investors grew increasingly concerned over the health of the global economy. Yields rose in the first half of the period, in line with US Treasuries, as the US Fed increased interest rates twice and the BoE raised interest rates in August 2018. However, sovereign bond yields fell later in the year as central banks across the world adopted a cautious monetary policy stance, reflecting a combination of weak economic data, continued uncertainty over US-China trade negotiations and a decline in oil prices. Yields on 10-year US Treasuries slipped below 2% for the first time since December 2016. 10-year government bond yields fell to record lows in Germany and France as well. Meanwhile, UK government bond yields touched their lowest level since October 2006, amid growing worries over the outcome of the UK’s exit from the EU. In credit markets, corporate bonds recorded strong performance due to the rally in government bonds and tighter investment grade credit spreads. However, slower than expected growth, stock market volatility and China-US trade tensions led high yield spreads to widen both in the US and Europe.

Market Performance Review


Accounting Policies of Fidelity Institutional Funds and its sub-funds

1. Accounting policies

a) Basis of preparation - The Financial Statements of the sub-funds have been prepared on a going concern basis, under the historical cost convention as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss except as outlined below. The financial statements are also prepared in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UK GAAP) and the Statement of Recommended Practice (SORP) for UK Authorised Funds issued by the Investment Management Association (IMA) in May 2014.

Pan European Fund ceased trading on 14 November 2018 and UK Investment Grade Long Credit Fund ceased trading on 21 June 2019. Consequently, the Authorised Corporate Director no longer regards the going concern basis of accounting appropriate for these sub-funds. Therefore the financial statements for these funds have been prepared on a basis other than going concern. No adjustments were required in these financial statements to reduce assets to their realised values, to provide for liabilities arising from the decision to cease trading or to reclassify non-current assets and liabilities as current. The comparative financial information for Pan European and UK Investment Grade Long Credit Fund is prepared on a going concern basis.

b) Recognition of revenue - Dividends on quoted equities are recognised when the security is quoted ex-dividend. Interest from debt securities are accounted for on an effective yield basis. Effective yield recognises any discount or premium on the purchase of an investment as revenue over its remaining life. For some securities that are valued at significantly distressed levels or where the Authorised Corporate Director expects future cash flows to be uncertain, the discount or premium is not recognised as revenue. Distributions on underlying funds are recognised when the shares/units are quoted ex-distribution. Other revenue is accounted for on an accruals basis. Underwriting commission is recognised when the issue takes place. Special dividends are treated as revenue or capital depending on the facts of each particular case.

c) Treatment of stock dividends - Where the fund manager has elected to receive a dividend in the form of shares rather than cash, the dividend is treated as revenue but does not form part of the distribution.

d) Treatment of expenses:

• All expenses are accounted for on an accruals basis.

• Annual charges - In accordance with the COLL and as agreed with the Depositary, charges and expenses for the fund may be treated as capital charges, which will enhance income returns but may constrain capital growth. Where the management fees are ultimately borne by the capital of an underlying fund, the rebates are credited to capital for the purpose of calculating the distribution.

• Other expenses - All other expenses are chargeable against revenue for distribution purposes other than those relating to purchases and sales of investments which are excluded for the purpose of calculating the distribution.

• Underlying fund charges - The sub-funds may invest in other collective investment schemes, various other charges and expenses may be incurred indirectly by the fund at the level of the underlying funds. Where any fund invests in other collective investment schemes managed by independent fund managers, the ACD will seek to negotiate a high level of rebate of the underlying funds’ management charges, so as to minimise the effect of charging at both the fund and underlying fund levels. Where any fund invests in other collective investment schemes managed by the ACD or an associate of the ACD, to avoid a double management charge in respect of the same portfolio, the full amounts of the charges which the ACD and/or any associated company of the ACD receives for managing the investments of the underlying fund, will be credited to the fund, to the extent that such charges are attributable to investment in the underlying funds by the fund.

e) Allocation of multiple share classes – All charges and expenses which are directly attributable to a particular fund (or class within a fund) will be charged to that fund (or class). Otherwise, if there is more than one class within a fund, charges and expenses which are directly attributable to the fund (but not a particular class) will normally be allocated between the classes within the fund pro rata to the net asset value of the fund attributable to each class. Any charges and expenses not attributable to any one fund will normally be allocated by the ACD to all funds (and their classes) pro rata to the net asset values of the funds (and their classes), although the ACD has the discretion to allocate such charges and expenses in a different manner which it considers fair to shareholders generally.

f) Distribution policy - The distribution policy of the individual funds is to distribute/accumulate all available revenue after deduction of expenses properly chargeable against revenue. Interest from debt securities has been distributed on an accrual of coupon basis where this exceeds the amount determined on an effective yield basis.

g) Taxation - Provision is made for corporation tax at the current rate on the excess of taxable revenue over allowable expenses, with relief for overseas tax taken where appropriate. Deferred tax is provided using the liability method on all timing differences arising from the different treatment of items for taxation and accounting purposes. Deferred tax assets are recognised to the extent that they are considered recoverable.

8


Accounting Policies of Fidelity Institutional Funds and its sub-funds

h) Basis of valuation of investments - Investments in securities and underlying funds have been valued using the market price at the noon valuation point on the last business day of the accounting period. Market value is defined by the SORP as fair value, which in an active market is the value of long positions at the quoted bid price and fair value of short positions is the quoted offer price. Holdings in other collective investment schemes are valued at bid price for dual priced funds and at the single price for single priced funds. It is the responsibility of the Fair Value Committee (FVC) to ensure pricing sources and methodologies used to value securities are appropriate as delegated by the ACD. Where there is no price source from an active market for an investment, the FVC will assess information available from internal and external sources in order to arrive at a fair value. In seeking to value such securities, the FVC will gather valuation related information from multiple internal and external sources and may apply judgement in determining the fair value. These sources include historic trading and pricing information (including grey market trades), the views of internal security analysts, company specific news and fundamental data as well as information relating to comparable companies within related industries and sectors. The FVC policies and procedures remain under continuous review by the ACD.

Fair value adjustments may be implemented to protect the interests of the Shareholder Funds against market timing practices. Accordingly, if a fund invests in markets that are closed for business at the time the fund is valued, the ACD may, by derogation from the provisions above, allow for the securities included in a particular portfolio to be adjusted to reflect more accurately the fair value of the fund’s investments at the point of valuation.

There were no fair value market adjustments applied to investments as at 30 June 2019 (2018: none).

The market value disclosed alongside each investment in the Portfolio Statement represents the fair value. Each derivative position is shown as a separate investment. The Portfolio Statement includes for each investment the percentage of the net assets. This may result in the geographical or sector allocations being different to the comparative index. The largest holdings disclosure is consistent with this basis, and therefore derivative positions may not appear in the list of largest holdings. A copy of the Fund factsheet report disclosing the sector/industry exposure, country exposure and top holdings including derivatives exposures may be obtained upon request from the ACD alternatively, please go to http://www.fidelity.co.uk.

i) Derivatives - Where appropriate, certain permitted transactions such as derivatives are used. Where such transactions are used to protect or enhance revenue, the revenue and expenses derived from them are included in Revenue or Expenses in the Statement of Total Return. Where such transactions are used to protect or enhance capital, the gains or losses are included in Net capital gains/(losses) in the Statement of Total Return. Any positions on such transactions open at the year-end are reflected in the Balance Sheet at their market value. All gains and losses in the value of futures contracts, interest rates swaps, credit default swaps, equity forwards, contracts for difference, equity linked notes and options are disclosed in the Statement of Total Return under Net capital gains/(losses).

For futures, equity forwards and contracts for difference, the dividend element is included in revenue along with the associated finance costs of these contracts. Ongoing premia on credit default swaps are charged or credited to revenue/expenses on an accruals basis, depending on whether protection is bought or sold. Revenue receivable/payable on interest rate swaps is included in revenue on an accruals basis. The premium received on covered call options is taken to revenue over the life of the contract provided the strike price of the option is greater than the price of the underlying security at the time of trade.

For all funds, where forward currency contracts have been entered into to hedge the capital performance of the portfolio against currency exchange rate movements, any subsequent hedge gain or loss is taken to capital. The difference between spot and forward contract rate, when the contract is first acquired, is recognised as revenue within the fund, over the duration of the contract. The reason for this is so that shareholders are not exposed to foreign exchange rate movements in their monthly distribution.

j) Exchange rates - Assets and liabilities denominated in foreign currencies have been translated into sterling at the rate of exchange ruling at the noon valuation point on the last business day of the accounting period. Revenue items denominated in foreign currency are translated into sterling at exchange rates ruling at the date of the transaction. Differences on exchange are dealt with in the Statement of Total Return.

k) Price adjustment policy - The Board of Directors of the Company implemented a price adjustment policy in order to protect the interests of the Company’s shareholders. The purpose of the price adjustment policy is to allocate the costs associated with large inflows and outflows to investors transacting that day, thereby protecting the long-term shareholder from the worst effects of dilution. It achieves this purpose by adjusting the share class price at which deals in a sub-fund are transacted. In other words, share class prices may be adjusted up or down depending on the level and type of investor transactions on a particular day within a sub-fund. In this way the existing and remaining shareholders do not suffer an inappropriate level of dilution. The Company will only trigger an adjustment in the price when there are significant net flows that are likely to have a material impact on existing and remaining shareholders. The adjustment will be based on the normal dealing costs for the particular assets in which a sub-fund is invested. Once an adjustment is made to the share class price, that price is the official price for that share class for all deals that day.

At 30 June 2019 there were no price adjustments made on the sub-funds as a result of this price adjustment policy (2018: none).

9


10

Risk Management policies of Fidelity Institutional Funds and its sub-funds

Risk framework

The Board of Directors of FIL Limited, the ultimate parent company of the ACD, has established a Risk Policy, a Risk Appetite statement and a number of other risk related policies for adoption throughout the Fidelity International group of companies, including the ACD. There is a clearly defined structure operating within a corporate governance and management framework that is designed to address the related business risks, including those arising from financial instruments. Risk management policies and procedures are established by the Board and updated according to market, industry and government initiatives and regulatory developments. The Board monitors that a robust system of internal control exists to ensure compliance with rules, regulations and policies. It is the Board of Directors of the ACD that is ultimately responsible for monitoring risk but day to day management of the risk process has been delegated to other areas as appropriate.

Fidelity operates a ‘multiple lines of defence’ approach to risk management; also, the risk control processes are comprehensive, multi-layered, both quantitative and qualitative and do not rely on any one risk measure or system. The primary responsibility for financial instrument risk management rests with the portfolio manager of each fund who is overseen by the relevant Chief Investment Officer (CIO). On a regular basis each fund is formally reviewed in a meeting involving the portfolio manager, the relevant CIO, Investment Management Portfolio Analytics and others; the review covers multiple aspects of the fund’s profile including trading activity, turnover, performance, structure, style profile, the use of derivatives and other relevant subjects such as yield curve exposure and sector and credit rating positioning in the case of Fixed Income funds. In addition to this review there is a formal Investment Risk Oversight Committee (IROC), chaired by the head of the Investment Management Risk function, whose remit includes review of various risk and performance measures, liquidity and other investment risks.

Furthermore, there is a Derivative and Counterparty Risk Committee that focuses on all aspects of risk arising from the use of derivative instruments and counterparty exposure. The global exposure relating to derivatives held in a fund may not exceed the net value of that fund. Global exposure calculations for all funds – unless otherwise indicated - use the commitment approach as part of their risk management process, measure and limits. The funds in this umbrella OEIC are governed by EU UCITS rules. The rules and prospectus limits are monitored and reported on by an independent Investment Compliance function.

Sterling Core Plus Bond Fund employs the relative Value-at-Risk (VaR) approach to measure its global risk exposure. The expected level of leverage is 150% of the Net Asset Value of the fund; this is however not a limit and higher levels may occur. The expected levels of leverage may be higher when volatility decreases sustainably, when interest rates are expected to change or when credit spreads are expected to widen or tighten.

Risk factors

The main risks arising from financial instruments are market price, foreign currency, interest rate, liquidity, counterparty and credit risks. There are policies in place to ensure each of these risks are managed in an appropriate manner.

Market price risk

Market price risk arises from the uncertainty about future price movements on financial instruments held. It represents the potential loss each fund might suffer through holding market positions in the face of adverse price movements. The value of investments (including derivatives) is not fixed and may go down as well as up. This may be as a result of a specific factor affecting the value of an individual investment, or may be caused by general market factors. Some of the funds may invest in securities of countries experiencing rapid economic growth. Investors should appreciate that these securities may be more volatile than securities in more developed markets with the result that there may be greater risk of price fluctuation and the suspension of redemptions in such funds compared with funds in more mature markets. This volatility may stem from political and economic factors, and be exacerbated by legal, trading liquidity, settlement, currency and other factors. Some emerging market countries may have relatively prosperous economies but may be sensitive to world commodity prices or other factors. Where derivatives are used for either efficient management of the fund or for investment purposes, market price risk will exist as for any other non-derivative investments. The volatility of option prices could be greater than for other derivatives.

Foreign currency risk

The funds’ total returns and balance sheets can be significantly affected by foreign exchange movements if the assets and revenue are denominated in currencies other than the funds’ base currency. Three principal areas where foreign currency risk could impact each fund have been identified as:

• movements in rates affecting the value of investments

• movements in rates affecting short term timing differences

• movements in rates affecting the revenue received

The funds may hold forward foreign exchange contracts to hedge the funds’ base currency. The funds may be exposed to short term exchange rate movements, for example between the date when an investment is bought or sold and the date when settlement of the transaction occurs. The ACD may seek to manage exposure to currency movements by using forward and spot foreign exchange contracts. Revenue received in other currencies is converted into base currency on or near the date of receipt.

Interest rate risk

Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a fixed rate debt security can fall when interest rates rise and can rise when interest rates fall. Securities with longer maturities can be more sensitive to interest rate changes. The fixed rate component of an interest rate swap will have a similar interest rate risk profile to that of a fixed rate debt security where the currency, fixed rate and maturity are the same.

Liquidity risk

The funds’ assets comprise mainly realisable securities which can be readily sold or redeemed in normal market conditions. The funds’ main liability is the redemption of any shares that investors wish to sell. In general, the ACD manages the cash to ensure it can meet its liabilities. Assets from a fund may need to be sold if insufficient cash is available to finance such redemptions. The funds’ holdings are reviewed on a regular basis, with emphasis on the market capitalisation of the issuer (securities issued by larger capitalised companies generally have greater liquidity) and the number of days it would take to trade out of a given security position or percentage of the fund (determined by reference to available market trading volumes). Where investments cannot be realised in time to meet any potential liability, the fund may borrow up to 10% of its value to ensure settlement.


Risk Management policies of Fidelity Institutional Funds and its sub-funds

Counterparty risk

All security transactions and derivatives are transacted with brokers and carry the risk that the counterparty to a transaction may not meet their financial obligations. All counterparties for any type of trading are assessed by an independent Credit Research and Analysis function and approved for use by any Fidelity company, including the ACD. Exposures to counterparties are monitored and reported frequently. Margin on exchange-traded derivatives mitigates counterparty risk exposure and in the case of over-the-counter derivatives, collateral is transferred to reduce counterparty risk exposure in accordance with the terms outlined in market standard (ISDA) derivative legal contracts.

Credit risk

Investments may be adversely affected if any of the institutions with which money is deposited suffers insolvency or other financial difficulties. The process outlined above under ‘Counterparty risk’ is used to review, approve and report on exposures to institutions with which money is deposited.

Credit risk also arises from the uncertainty about the payment of interest and the repayment of principal bond investments. Default risk is based on the issuer’s ability to make interest payments and to repay the loan at maturity. Due to the higher possibility of default, an investment in corporate bonds is generally less secure than an investment in government bonds. Default risk may therefore vary between different government issuers as well as between different corporate issuers. In certain cases, government bonds may have higher probability of default than specific corporate issuers. The funds may hold credit default swaps to manage their credit risk profile. Credit default swaps are transacted to take advantage of expected movements in credit spreads on either individual securities or baskets of securities.

Fair values of financial assets and financial liabilities

There is no material difference between the value of the financial assets and liabilities, as shown in the balance sheet, and their fair value. The numerical information in respect of financial instruments disclosure is provided in the financial statements for the individual funds.

11

America Fund

12

Fund Manager’s Review

Investment Objective and PolicyThe fund’s investment objective is to achieve long term capital appreciation. The fund will invest primarily in the shares of companies in the United States of America. There is no policy to restrict investment to particular economic sectors.

Performance and Portfolio ActivityThe fund delivered positive returns over the period, supported largely by positions in the information technology (IT) sector. Holdings in IT companies such as Oracle and Microsoft added value, as did the position in Abbott Laboratories. Gains were capped by the performance of the energy sector, where the allocation to Apache detracted from returns. Over the period, holdings were purchased in Walt Disney and Baxter International, while positions in Praxair and Pfizer were sold.

OutlookThe US economy is in the later stages of the business cycle and economic data remains mixed. The relatively high valuations of US stocks could be a headwind. However, the US Federal Reserve’s easing cycle is likely to support domestic growth stocks.

Nick Peters & Ayesha AkbarFund Managers

30 June 2019

Risk and Reward Indicator

SRRI

Accumulation Shares 5

1 3 4 5 6 72

Lower risk Higher risk

Typically lower rewards Typically higher rewards

The risk category was calculated using historical volatility data, based upon the methods set by European Union rules. Volatility is influenced by changes in the stock market prices, currencies and interest rates which can be affected unpredictably by diverse factors including political and economic events.

• The risk category was calculated using historical performance data.

• The risk category may not be a reliable indication of the future risk profile of the fund, is not guaranteed and may change over time.

• The lowest category does not mean a "risk free" investment.

• The risk and reward profile is classified by the level of historical fluctuation of the Net Asset Values of the share class, and within this classification, categories 1-2 indicate a low level of historical fluctuations, 3-5 a medium level and 6-7 a high level.

• The value of your investment may fall as well as rise and you may get back less than you originally invested.

• The fund may invest in instruments denominated in currencies other than the fund base currency. Changes in currency exchange rates can therefore affect the value of your investment.

• Currency hedging may be used which aims to reduce the effect of such changes. However, the effects may not be completely eliminated to the degree expected.

Comparative Performance Table

America Fund

13

Accumulation Shares

Change in net assets (pence per share) 2019 2018 2017

Opening net asset value per share 580.41 536.56 447.93

Return before operating charges* 76.56 48.73 93.20

Operating charges (5.37) (4.88) (4.57)

Return after operating charges* 71.19 43.85 88.63

Distributions (16.65) (1.94) (3.34)

Retained distributions on accumulation shares 16.65 1.94 3.34

Closing net asset value per share 651.60 580.41 536.56

*after direct transaction costs of 0.15 0.11 0.23

Performance

Return after charges 12.3% 8.2% 19.8%

Other information

Closing net asset value (£'000) 180,782 220,953 228,160

Closing number of shares 27,744,455 38,068,646 42,522,307

Operating charges 0.88% 0.89% 0.88%

Direct transaction costs 0.02% 0.02% 0.04%

Prices (pence per share)

Highest share price 659.10 591.50 567.00

Lowest share price 545.30 517.00 461.30

America Fund

14

Statement of Total Return

for the year ended 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 4 15,545 16,580

Revenue 5 8,293 3,097

Expenses 6 (1,758) (1,924)

Interest payable and similar charges 8 (131) (8)

Net revenue/(expense) before taxation 6,404 1,165

Taxation 7 (367) (395)

Net revenue/(expense) after taxation xxx 6,037 xxx 770

Total return before distributions 21,582 17,350

Distributions 8 (6,037) (770)

Change in net assets attributable to shareholders from investment activities 15,545 16,580

Statement of Change in Net Assets Attributable to Shareholders


Note £'000 £'000 £'000 £'000

Opening net assets attributable to shareholders 220,953 228,160

Movement due to sales and repurchases of shares

Amounts receivable on issue of shares 13,836 14,966

Amounts payable on cancellation of shares (74,186) (39,492)

xxx (60,350) xxx (24,526)

Swing price adjustment 15 -

Change in net assets attributable to shareholders from investment activities (see above) 15,545 16,580

Retained distribution on accumulation shares 8 4,619 739

Closing net assets attributable to shareholders 180,782 220,953

Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets

Investments 161,273 193,531

Current assets:

Debtors 9 603 1,138

Cash and bank balances 10 19,305 27,228

Total other assets xxx 19,908 xxx 28,366

Total assets 181,181 221,897

Liabilities:

Investment liabilities - (453)

Creditors

Other creditors 11 (399) (491)

Total other liabilities xxx (399) xxx (491)

Total liabilities (399) (944)

Net assets attributable to shareholders 180,782 220,953

Notes to the Financial Statements

America Fund

15

1 Accounting policies

The fund’s financial statements have been prepared in accordance with the Company Accounting Polices and Risk Management sections.

2 Equalisation

Equalisation applies only to shares purchased during the distribution year (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is credited to the holders of these shares as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of shares for Capital Gains Tax purposes.

3 Contingent liabilities

At the year end there are no contingent liabilities or commitments (2018: nil).

4 Net capital gains/(losses)

30/06/19 30/06/18

£'000 £'000

Gains/(losses) on non-derivative securities 13,121 14,741

Gains/(losses) on derivative contracts 1,147 2,165

Other currency gains/(losses) 1,294 (317)

Transaction charges (17) (13)

Broker fee rebates - 4

Net capital gains/(losses) 15,545 16,580

5 Revenue

30/06/19 30/06/18

£'000 £'000

Interest on securities - 1

Derivative revenue - 43

UK dividends - 37

Overseas dividends 7,973 2,818

Overseas property income distributions 45 21

Bank interest 275 177

Total revenue 8,293 3,097

6 Expenses

30/06/19 30/06/18

£'000 £'000Payable to the ACD, associates of the ACD, and agents of either of them:

Investment management fees 1,609 1,749

Service charges 100 109

Foreign exchange administration fees 6 5

1,715 1,863Payable to the Depositary, associates of the Depositary, and agents of either of them:

Depositary fees 20 23

Custody fees 3 4

23 27Other expenses:

Audit fee 8 8

Other operating expenses 12 26

20 34

Total expenses 1,758 1,924


America Fund

16

7 Taxation

30/06/19 30/06/18

£'000 £'000a) Analysis of charge/(credit) for the year

Overseas taxation 367 395

Total current taxation 367 395

b) Factors affecting tax charge/(credit) for the year


Net revenue/(expense) multiplied by the standard rate of corporation tax of 20% (2018: 20%). 1,281 233Effects of:

Increase/(decrease) in unutilised management expenses 316 339

Overseas tax expensed (1) (1)


Revenue not included for tax purposes (1,596) (571)

Current tax charge/(credit) 367 395

Open ended investment companies are exempt from UK tax on capital gains. The fund has unrelieved excess management expenses resulting in a potential deferred tax asset of £2,862,000 (2018: £2,546,000). It is unlikely that the fund will generate sufficient taxable profits in the future to utilise these and therefore no deferred tax asset has been recognised.

8 Finance costs

30/06/19 30/06/18

£'000 £'000

DistributionsThe distribution takes account of revenue received on the issue of shares and revenue deducted on cancellation of shares.

Accumulation Shares

Final 4,619 739

Add: Revenue deducted on cancellation of shares 1,694 55

Deduct: Revenue received on issue of shares (276) (24)

Net distribution for the year 6,037 770

Interest/other

Derivative expense 131 8

Total finance costs 6,168 778

Details of the distribution per share is set out in the Distribution Statement.

9 Debtors

30/06/19 30/06/18

£'000 £'000

Amounts receivable for issue of shares 300 58

Sales awaiting settlement 50 858

Sales of currency awaiting settlement 111 55

Accrued revenue 120 146

Overseas tax recoverable 22 21

Total debtors 603 1,138

10 Cash and bank balances

30/06/19 30/06/18

£'000 £'000

Amounts held at futures clearing houses and brokers 679 1,401

Cash and bank balances 18,626 25,827

Total cash and bank balances 19,305 27,228


America Fund

17

11 Other creditors

30/06/19 30/06/18

£'000 £'000

Amounts payable for cancellation of shares 111 19

Purchases awaiting settlement 32 235

Purchases of currency awaiting settlement 111 54

Accrued expenses 145 183

Total other creditors 399 491

12 Financial instruments exposure

Currency exposure

A portion of the financial assets of the fund are denominated in currencies other than UK Pound, which is the fund's base currency, with the effect that the Balance Sheet and total return can be affected by currency movements.The currency exposure of the fund was:

Non-monetary exposures Monetary exposures Monetary exposures Total exposureCurrency Investments Cash balances Debtors/(Creditors)30/06/19 £'000 £'000 £'000 £'000

Canadian Dollar 2,610 5 - 2,615

Euro 1,234 1 2 1,237

Swedish Krona 930 - - 930

Swiss Franc 306 - - 306

UK Pound 14,014 709 44 14,767

US Dollar 142,179 18,590 158 160,927

Total 161,273 19,305 204 180,782

30/06/18 £'000 £'000 £'000 £'000

Canadian Dollar 3,247 6 - 3,253

Euro 930 1 2 933


UK Pound 18,654 1,533 (143) 20,044

US Dollar 169,379 25,688 788 195,855

Total 193,078 27,228 647 220,953

The currency disclosure provided is based on the trading currency of the investments and foreign currency contracts. For further information on risk disclosures refer to the Risk management policies section.

Interest rate risk profile

The only interest bearing financial instruments in the fund are its bank balances and/or amounts held at futures clearing houses and brokers.

Fair value of financial assets and financial liabilities

There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair value.

Market value sensitivity analysis

Currency risk

A rise or fall of 1% in non UK Pound currencies is likely to result in a 0.92% rise or fall in the fund's market value (2018: 0.91%).

Other price risk

Fluctuations in securities and underlying funds prices will directly be reflected in the fund's market value.

Equity derivatives

The fund invests into futures to gain exposure to the equity markets. A 10% change in the price of the futures would result in a 0.95% (2018: 0.90%) change in the fund's market value.


America Fund

18

13 Portfolio transaction costs

30/06/19 Purchases Commissions TaxesAnalysis of total purchases costs £'000 £'000 % £'000 %

Equity 100,868 18 0.02 1 -

Corporate actions 87 - - - -

Derivative - 1 - - -

Total 100,955 19 1

Total including transaction costs 100,975

Sales Commissions TaxesAnalysis of total sales costs £'000 £'000 % £'000 %

Equity 144,821 26 0.02 2 -

Corporate actions 1,682 - - - -


Total 146,503 27 2


Total as a percentage of average net assets* xxx 0.02 % xxx 0.00 % xxx


Equity 79,859 15 0.02 - -

Bond 1 - - - -



Total 81,253 16 -



Equity 101,565 25 0.02 2 -



Total 104,986 26 2


Total as a percentage of average net assets xxx 0.02 % xxx 0.00 % xxx

*During the year dealing spread costs may be applicable to purchases and sales (the difference between bid and offer prices of all investments expressed as a percentage of the offer price value), which are not separately identifiable and do not form part of the analysis above. Dealing spread costs suffered by the fund vary considerably for the different asset/instrument types depending on a number of factors including transaction value and market sentiment. At the Balance Sheet date the average portfolio dealing spread was 0.04% (2018: 0.05%).

14 Basis of valuation

30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000

Assets Liabilities Assets Liabilities

Level 1: Quoted prices 160,228 - 193,530 (453)

Level 2: Observable market data 571 - 1 -

Level 3: Unobservable data* 474 - - -

161,273 - 193,531 (453)


America Fund

19

*It is the responsibility of the Fair Value Committee (FVC) to ensure pricing sources and methodologies used to value securities are appropriate as delegated by the ACD. Investments classified as using inputs that are not based on observable market data comprise fair value adjusted securities and single sourced bonds. In seeking to value such securities where no liquid market exists, the FVC will gather valuation related information from multiple internal and external sources. These sources include historic trading and pricing information (including grey market trades) and the views of internal security analysts. Internal security analysts have access to a range of material including, company specific news and earnings, cash flow forecasts, valuations of the underlying portfolio company and competitor company valuations within related industries and sectors to determine a valuation recommendation for each unlisted security. The FVC has the ability to apply discounts to security valuations. Management determines the discount based on its judgement, after considering market liquidity conditions and company specific factors such as the development stage of the portfolio company. Generally for fair valued securities and single source bonds where there is no price source from an active market, the FVC has applied judgement in determining the fair value. This fair value is established by using measures such as; suspended securities where the last traded price is used or the price of a recent transaction made by management or a third party which will also factor in a discount where negative news has been observed. Generally unlisted securities are valued at cost, a trade executed by another Fidelity Fund, grey market trades or at a nil value where companies have gone into liquidation, administration or are deemed worthless. Single sourced broker prices use data received from a single pricing vendor and stale prices use the most recent broker quote available. The valuation approaches used by FIL are fully transparent and aim to be consistent with industry standards and best practice principles, including guidance from the IPEV (International Private Equity and Venture Capital) Valuation Guidelines, International Organization of Securities Commissions (IOSCO) valuation principles and the required accounting standards. For further detail on the basis of valuation of investments please refer to note 1h) of the accounting policies section.

15 Shares in issue reconciliation

Shares in issue as at 30/06/18 Issued shares Cancelled shares

Shares in issue as at 30/06/19

Accumulation Shares 38,068,646 2,323,603 (12,647,794) 27,744,455

16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £128,000 (2018: £156,000) are included within accrued expenses in Note 11.

17 Counterparty details of financial derivative transactions

30/06/19

Broker Currency Contracts Futures Swaps Options Grand Total

£'000 £'000 £'000 £'000 £'000

UBS - 224 - - 224

Total - 224 - - 22430/06/18


£'000 £'000 £'000 £'000 £'000

UBS - (453) - - (453)

Total - (453) - - (453)

18 Shareholders' funds

The fund has one share class; Accumulation Shares. The annual management charge is as follows:Accumulation Shares : 0.80%The distributions per share class are given in the Distribution Statement.

19 Post balance sheet event

The net asset value in pence per share at the balance sheet date and the latest practicable date prior to the publication of this report have been recorded below. The percentage increase/(decrease) is a reflection of market fluctuation during this period.

NAV as at 30/06/19 NAV as at 27/08/19 Increase/(decrease)%

Accumulation Shares 651.60 661.60 1.53

Distribution Statement

America Fund

20

for the year ended 30 June 2019

Accumulation Shares - final distribution No. 22 in pence per share

Group 1 - Shares purchased on or before 30 June 2018.Group 2 - Shares purchased from 1 July 2018 to 30 June 2019.

xxx Net revenueEqualisation

(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 16.6486 - 16.6486 1.9407

Group 2 6.3818 10.2668 16.6486 1.9407

xxx xxx xxx xxx xxx


21


Investment Objective and PolicyThe fund’s investment objective is to achieve long term capital appreciation. The fund will invest primarily in securities of countries experiencing rapid economic growth including, without limitation, Africa, the Indian sub-continent, Latin America, South East Asia, Europe and the Middle East. There is no policy to restrict investment to particular economic sectors.

Performance and Portfolio ActivityThe fund generated positive returns, driven by stock selection in the financials and consumer staples sectors. Positioning in communication services names also boosted performance. At a country level, Hong Kong and Chinese holdings added value. I raised the exposure to Alibaba Group Holding as it has the potential to be a long-term winner in a growing online ecosystem. It is also likely to benefit from the growth opportunity in cloud computing and artificial intelligence. The allocation to AIA Group was also increased. It is a beneficiary of growth in Asia’s underpenetrated insurance markets. Meanwhile, I sold positions in sporting goods and athletic shoes manufacturer Li Ning and in cookware and small appliances manufacturer Zhejiang Supor.

OutlookEmerging markets are likely to be impacted by the monetary policy in the US and continued easing by policymakers globally. Nonetheless, from a long-term perspective, emerging markets continue to offer numerous opportunities, supported by structural growth drivers such as urbanisation.

Nick PriceFund Manager

30 June 2019


SRRI


Retail Accumulation Shares 6

W Accumulation Shares 6

1 3 4 5 6 72











• Liquidity is a measure of how easily an investment can be converted into cash. Under certain market conditions assets may be more difficult to sell.

• Emerging markets may be more volatile and it could be harder to sell or trade securities. There may be less supervision, regulation and less well defined procedures than in more developed countries. Emerging markets can be sensitive to political instability, which can result in greater volatility and uncertainty, subjecting the fund to the risk of losses.

• In some emerging markets, such as Russia, the safekeeping provisions for securities benefit from less governed standards.



22

Retail Accumulation Shares W Accumulation Shares

Change in net assets (pence per share) 2019 2018 2017 2019 2018 2017

Opening net asset value per share 182.35 170.81 137.92 153.44 142.66 114.33

Return before operating charges* 12.85 14.79 35.63 10.96 12.32 29.64

Operating charges (2.97) (3.25) (2.74) (1.41) (1.54) (1.31)

Return after operating charges* 9.88 11.54 32.89 9.55 10.78 28.33

Distributions (1.40) (0.52) (0.34) (2.35) (1.60) (1.28)

Retained distributions on accumulation shares 1.40 0.52 0.34 2.35 1.60 1.28

Closing net asset value per share 192.23 182.35 170.81 162.99 153.44 142.66

*after direct transaction costs of 0.35 0.57 0.54 0.35 0.57 0.54

Performance

Return after charges 5.4% 6.8% 23.9% 6.2% 7.6% 24.8%

Other information

Closing net asset value (£'000) 21,042 25,761 23,289 1,951,990 1,925,099 1,329,214

Closing number of shares 10,946,232 14,127,386 13,634,137 1,197,647,802 1,254,637,209 931,743,685

Operating charges 1.71% 1.71% 1.74% 0.96% 0.96% 0.99%

Direct transaction costs 0.20% 0.30% 0.32% 0.20% 0.30% 0.32%


Highest share price 192.30 200.20 175.60 163.10 168.10 146.70

Lowest share price 156.30 170.60 141.20 131.90 142.50 117.00

Accumulation Shares






Distributions (6.46) (4.19) (3.40)




Performance


Other information









23



Note £'000 £'000 £'000 £'000

Income


Revenue 5 63,575 53,001

Expenses 6 (23,489) (23,789)



Taxation 7 (3,857) (4,994)

Net revenue/(expense) after taxation xxx 35,974 xxx 24,090


Distributions 8 (35,975) (24,090)




Note £'000 £'000 £'000 £'000

Opening net assets attributable to shareholders 2,485,573 1,987,813




In specie cancellation of shares - (68,722)

xxx (131,500) xxx 356,615

Swing price adjustment - 468


Retained distribution on accumulation shares 8 35,176 24,965

Closing net assets attributable to shareholders 2,495,682 2,485,573

Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets

Investments 2,485,465 2,430,298

Current assets:

Debtors 9 24,345 56,230



Total assets 2,523,506 2,504,641

Liabilities:Creditors

Other creditors 10 (27,824) (19,068)

Total other liabilities xxx (27,824) xxx (19,068)

Total liabilities (27,824) (19,068)

Net assets attributable to shareholders 2,495,682 2,485,573



24



2 Equalisation





30/06/19 30/06/18

£'000 £'000


Gains/(losses) on derivative contracts 498 1,387

Other currency gains/(losses) (240) (779)




5 Revenue

30/06/19 30/06/18

£'000 £'000

Interest on securities 3,576 4,572

Derivative revenue 247 336

UK dividends 1,149 1,064




6 Expenses

30/06/19 30/06/18



Registrar fees 1,893 1,960

Service charges 1,190 1,178




Custody fees 949 892

1,035 970Other expenses:

Audit fee 8 8


142 222




25

7 Taxation

30/06/19 30/06/18


Overseas taxation 3,857 4,994

Total current taxation 3,857 4,994



Net revenue/(expense) multiplied by the standard rate of corporation tax of 20% (2018: 20%). 7,966 5,817Effects of:

Increase/(decrease) in unutilised management expenses 955 1,595


Overseas taxation 3,857 4,994

Revenue not included for tax purposes (8,589) (7,156)

Current tax charge/(credit) 3,857 4,994


8 Finance costs

30/06/19 30/06/18

£'000 £'000

DistributionsThe distributions take account of revenue received on the issue of shares and revenue deducted on cancellation of shares.

Retail Accumulation Shares

Final 153 73

W Accumulation Shares

Final 28,183 20,073

Accumulation Shares

Final 6,840 4,819

35,176 24,965



Net distributions for the year 35,975 24,090

Interest/other

Interest 11 6

Contract for difference finance costs 233 107


255 128

Total finance costs 36,230 24,218

Reconciliation of Net revenue after taxation to Net distribution for the year:

Net revenue after taxation for the year, per the Statement of Total Return 35,974 24,090

Add back (revenue)/expenses transferred to capital:

Equalisation on conversions 1 -

Revenue b/f 1 1

Revenue c/f (1) (1)

35,975 24,090

Details of the distributions per share are set out in the Distribution Statement.



26

9 Debtors

30/06/19 30/06/18

£'000 £'000

Amounts receivable for issue of shares 101 7,323

Sales awaiting settlement 2,467 20,590

Sales of currency awaiting settlement 5,437 14,670

Accrued revenue 16,252 13,564


VAT recoverable 4 -

Total debtors 24,345 56,230

10 Other creditors

30/06/19 30/06/18

£'000 £'000

Amounts payable for cancellation of shares 10,154 151

Purchases awaiting settlement 10,000 1,611

Purchases of currency awaiting settlement 5,432 14,689

Accrued expenses 2,014 2,253

Foreign capital gains tax payable 224 364

Total other creditors 27,824 19,068


Currency exposure



Brazilian Real 85,728 - 69 85,797

Chinese Yuan Renminbi 184,487 8,985 699 194,171

Euro 27,501 - 84 27,585

Hong Kong Dollar 509,734 684 (545) 509,873

Indian Rupee 297,061 513 903 298,477

Indonesian Rupiah 85,915 - - 85,915

Korean Won 100,327 7 75 100,409

Mexican Peso 81,543 - - 81,543

Nigerian Naira 6,576 - - 6,576

South African Rand 229,262 - 1 229,263

Taiwan Dollar 164,994 23 2,823 167,840

Thai Baht 8,718 - (783) 7,935

UAE Dirham 13,461 6 201 13,668

UK Pound 31,338 448 (10,343) 21,443

US Dollar 658,820 3,030 3,337 665,187

Total 2,485,465 13,696 (3,479) 2,495,682



27

30/06/18 £'000 £'000 £'000 £'000

Brazilian Real 50,007 - - 50,007


Euro 17,041 - 7,140 24,181

Hong Kong Dollar 393,010 1,352 669 395,031

Indian Rupee 233,076 351 3,232 236,659


Korean Won 199,839 7 415 200,261

Mexican Peso 54,380 - - 54,380

Nigerian Naira 8,416 - - 8,416

South African Rand 314,002 - - 314,002

Taiwan Dollar 162,342 22 3,462 165,826

Turkish Lira 27,615 - - 27,615

UAE Dirham 33,435 - - 33,435

UK Pound 28,624 - 4,620 33,244

US Dollar 668,335 13,809 17,484 699,628

Total 2,430,298 18,113 37,162 2,485,573







Currency risk


Other price risk


Equity derivatives

At the year end the fund holds no equity derivatives that could impact it significantly (2018: same).



Equity 1,801,618 1,225 0.07 955 0.05



Total 1,801,639 1,226 955

Total including transaction costs 1,803,820


Equity 1,790,773 1,369 0.08 1,311 0.07


Total 1,790,892 1,369 1,311





28


Equity 2,370,624 2,117 0.09 1,613 0.07

Bond 1,000 - - - -


Total 2,371,865 2,117 1,613



Equity 2,009,604 1,753 0.09 1,504 0.07

Bond 1,000 - - - -


In-specie 68,722 - - - -

Total 2,079,605 1,753 1,504





30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000


Level 1: Quoted prices 2,356,604 - 2,142,413 -

Level 2: Observable market data 128,861 - 287,885 -

Level 3: Unobservable data - - - -

2,485,465 - 2,430,298 -


Shares in issue as at 30/06/18 Issued shares Cancelled shares Conversion shares


Retail Accumulation Shares 14,127,386 2,606,932 (5,696,445) (91,641) 10,946,232

W Accumulation Shares 1,254,637,209 132,877,166 (189,975,045) 108,472 1,197,647,802

Accumulation Shares 114,940,540 3,799,845 (12,813,486) - 105,926,899

15 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 10.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £1,865,000 (2018: £1,955,000) are included within accrued expenses in Note 10.


30/06/19


£'000 £'000 £'000 £'000 £'000

Goldman Sachs - 83 - - 83

HSBC Global Markets - 583 - - 583

Total - 666 - - 66630/06/18


£'000 £'000 £'000 £'000 £'000

HSBC Global Markets - 177 - - 177

Total - 177 - - 177



29


The fund has three share classes; Retail Accumulation Shares, W Accumulation Shares and Accumulation Shares. The annual management charge on each share class is as follows:Retail Accumulation Shares : 1.50%W Accumulation Shares : 0.75%Accumulation Shares : 1.00%The distributions per share class are given in the Distribution Statement. All classes have the same rights on winding up.




Retail Accumulation Shares 192.23 189.30 (1.52)

W Accumulation Shares 162.99 160.69 (1.41)

Accumulation Shares 493.41 486.30 (1.44)



30


Retail Accumulation Shares - final distribution No. 10 in pence per share



(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 1.3963 - 1.3963 0.5176

Group 2 1.2723 0.1240 1.3963 0.5176

xxx xxx xxx xxx xxxW Accumulation Shares - final distribution No. 7 in pence per share



(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 2.3532 - 2.3532 1.5999

Group 2 1.8572 0.4960 2.3532 1.5999

xxx xxx xxx xxx xxxAccumulation Shares - final distribution No. 22 in pence per share



(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 6.4576 - 6.4576 4.1930

Group 2 5.2602 1.1974 6.4576 4.1930

xxx xxx xxx xxx xxx

Europe (ex-UK) Fund

31


Investment Objective and PolicyThe fund’s investment objective is to achieve long term capital appreciation. The fund will invest primarily in the shares of European companies excluding those in the United Kingdom. There is no policy to restrict investment to particular economic sectors.

Performance and Portfolio ActivityThe fund generated strong returns over a volatile period. Defensive holdings supported performance. For instance, positions in pharmaceuticals company Roche Holdings and food producer Nestle advanced. Selected holdings were also buoyed by encouraging results. In particular, sports goods manufacturer Adidas and software provider SAP added value. I found new opportunities in the health care sector. A new position was purchased in hearing aids manufacturer Sonova Holding. The company has a strong product pipeline and the launch of its new Marvel platform is expected to accelerate revenue growth. Within the sector, I also purchased shares in Sanofi and QIAGEN, while holdings in Getinge and Koninklinje Philips were sold.

OutlookGlobal activity is heading for a modest acceleration and the European Central Bank’s indication of an easing monetary policy should support equities. However, uncertainties related to the UK’s exit from the European Union and ongoing trade concerns between the US and its major trading partners could negatively impact the eurozone’s economy.

Vincent DurelFund Manager

30 June 2019


SRRI


1 3 4 5 6 72












Europe (ex-UK) Fund

32

Accumulation Shares






Distributions (5.58) (6.54) (5.84)




Performance


Other information








Europe (ex-UK) Fund

33



Note £'000 £'000 £'000 £'000

Income


Revenue 5 3,853 11,521

Expenses 6 (2,258) (4,266)



Taxation 7 (324) (1,710)



Distributions 8 (1,264) (4,920)




Note £'000 £'000 £'000 £'000





In specie cancellation of shares (169,667) (101,980)

xxx (269,439) xxx (152,212)

Swing price adjustment 93 50




Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,018 4,548

Cash and bank balances 10 1,795 51


Total assets 126,682 397,666


Other creditors 11 (1,471) (6,013)





Europe (ex-UK) Fund

34



2 Equalisation





30/06/19 30/06/18

£'000 £'000


Gains/(losses) on derivative contracts - 49





5 Revenue

30/06/19 30/06/18

£'000 £'000

Interest on securities (3) (16)


UK dividends 43 244



Overseas scrip dividends - 615


6 Expenses

30/06/19 30/06/18







Custody fees 25 52


Audit fee 8 8


43 66



Europe (ex-UK) Fund

35

7 Taxation

30/06/19 30/06/18


Overseas taxation 324 1,710

Total current taxation 324 1,710



Net revenue/(expense) multiplied by the standard rate of corporation tax of 20% (2018: 20%). 318 1,449Effects of:



Overseas taxation 324 1,710

Revenue not included for tax purposes (753) (2,157)

Current tax charge/(credit) 324 1,710


8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final 1,179 4,780

Add: Revenue deducted on cancellation of shares 88 160



Interest/other

Interest 7 10





Overseas scrip dividends - (615)

1,264 4,920


9 Debtors

30/06/19 30/06/18

£'000 £'000


Sales of currency awaiting settlement 82 2,824


Overseas tax recoverable 717 1,340



30/06/19 30/06/18

£'000 £'000

Amounts held at futures clearing houses and brokers 1 1

Cash and bank balances 1,794 50

Total cash and bank balances 1,795 51


Europe (ex-UK) Fund

36

11 Other creditors

30/06/19 30/06/18

£'000 £'000

Amounts payable for cancellation of shares 77 2,811

Purchases awaiting settlement 1,207 48

Purchases of currency awaiting settlement 82 2,829




Currency exposure



Danish Krone - - 78 78

Euro 99,518 1,795 567 101,880

Hong Kong Dollar 1,299 - - 1,299

Norwegian Krone 2,520 - - 2,520

Swiss Franc 20,532 - (1,070) 19,462

UK Pound - - (28) (28)

Total 123,869 1,795 (453) 125,211

30/06/18 £'000 £'000 £'000 £'000


Euro 327,108 51 1,517 328,676

Hong Kong Dollar 7,405 - - 7,405

Norwegian Krone 7,424 - - 7,424

Swedish Krona 2,498 - - 2,498

Swiss Franc 48,632 - - 48,632

UK Pound - - (3,059) (3,059)

Total 393,067 51 (1,465) 391,653







Currency risk


Other price risk



Europe (ex-UK) Fund

37



Equity 126,836 48 0.04 82 0.06

Total 126,836 48 82



Equity 222,315 78 0.04 2 -

In-specie 169,667 - - - -

Total 391,982 78 2




Equity 339,243 161 0.05 392 0.12



Total 339,858 162 392



Equity 387,261 199 0.05 1 -


In-specie 101,980 - - - -


Total 489,254 200 1





30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000


Level 1: Quoted prices 123,853 - 387,280 -

Level 2: Observable market data 16 - 5,787 -


123,869 - 393,067 -





16 Related parties



Europe (ex-UK) Fund

38








Europe (ex-UK) Fund

39





(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 5.5751 - 5.5751 6.5419

Group 2 5.3005 0.2746 5.5751 6.5419

xxx xxx xxx xxx xxx

Global Focus Fund

40


Investment Objective and PolicyThe fund aims to achieve long-term growth from a portfolio primarily invested in stocks across the world’s stock markets. The manager is free to select any company regardless of size, industry or location and will concentrate its investments in a more limited number of companies and therefore the resulting portfolio will be less diversified.

Performance and Portfolio ActivityThe fund generated strong positive returns over the period. Robust quarterly earnings and hopes of a resolution of global trade frictions (particularly during the latter half of the period) buoyed information technology (IT) stocks such as Booz Allen Hamilton Holding C (A) and Lenovo Group. In contrast, selected energy sector holdings such as Concho Resources and Canadian Natural Resources declined due to a downtrend in crude oil prices despite their solid business fundamentals. I used the weakness in health care names ahead of the next US elections to add quality franchises with sustainable pricing power such as Boston Scientific, Gilead Sciences and Illumina. Meanwhile, certain IT names such as Intel and Qualcomm were sold to rebalance the portfolio.

OutlookThe outlook for global equities remains cautious in view of risks in the current late-cycle environment such as a global economic slowdown, trade frictions and geopolitical issues. However, market volatility can present attractive buying opportunities.

Amit LodhaFund Manager

30 June 2019


SRRI


1 3 4 5 6 72












Global Focus Fund

41

Accumulation Shares






Distributions (3.11) (2.39) (2.50)




Performance


Other information








Global Focus Fund

42



Note £'000 £'000 £'000 £'000

Income


Revenue 5 1,638 1,743

Expenses 6 (796) (953)

Interest payable and similar charges 8 - (1)

Net revenue/(expense) before taxation 842 789

Taxation 7 (250) (186)

Net revenue/(expense) after taxation xxx 592 xxx 603


Distributions 8 (622) (537)




Note £'000 £'000 £'000 £'000



Amounts receivable on issue of shares 784 1,020


xxx (17,708) xxx (43,775)



Retained distribution on accumulation shares 8 527 495


Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,117 1,781

Cash and bank balances 279 152


Total assets 82,882 93,163


Other creditors 10 (646) (1,237)

Total other liabilities xxx (646) xxx (1,237)

Total liabilities (646) (1,237)



Global Focus Fund

43



2 Equalisation





30/06/19 30/06/18

£'000 £'000


Other currency gains/(losses) 61 (125)




5 Revenue

30/06/19 30/06/18

£'000 £'000

Interest on securities 55 34

UK dividends 91 52

UK scrip dividends - 19



Overseas scrip dividends 45 47

Bank interest 2 2


6 Expenses

30/06/19 30/06/18


Investment management fees 717 855



765 913Payable to the Depositary, associates of the Depositary, and agents of either of them:


Custody fees 7 8


Audit fee 8 8


15 21

Total expenses 796 953


Global Focus Fund

44

7 Taxation

30/06/19 30/06/18



Overseas capital gains tax 75 -



Net revenue/(expense) before taxation 842 789

Net revenue/(expense) multiplied by the standard rate of corporation tax of 20% (2018: 20%). 168 158Effects of:


Overseas capital gains tax 75 -



Revenue not included for tax purposes (311) (323)



8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final 527 495



Net distributions for the year 622 537

Interest/other

Interest - 1

Total finance costs 622 538


Net revenue after taxation for the year, per the Statement of Total Return 592 603


UK scrip dividends - (19)

Overseas scrip dividends (45) (47)

Indian capital gains tax 75 -

622 537


9 Debtors

30/06/19 30/06/18

£'000 £'000

Sales awaiting settlement 392 1,115






Global Focus Fund

45

10 Other creditors

30/06/19 30/06/18

£'000 £'000




Total other creditors 646 1,237


Currency exposure



Brazilian Real - 1 - 1

Canadian Dollar 325 - - 325

Danish Krone 757 - 9 766

Euro 7,649 19 38 7,706

Hong Kong Dollar 2,752 - 33 2,785

Indian Rupee 2,229 147 (135) 2,241

Japanese Yen 5,681 10 58 5,749

Korean Won 1,471 71 (56) 1,486

South African Rand 898 - - 898


Swiss Franc 3,743 - - 3,743

Taiwan Dollar - 23 - 23

UK Pound 4,170 - (72) 4,098

US Dollar 49,326 8 596 49,930

Total 81,486 279 471 82,236

30/06/18 £'000 £'000 £'000 £'000



Danish Krone 1,659 - 7 1,666

Euro 11,616 20 38 11,674


Indian Rupee 3,431 99 (86) 3,444

Japanese Yen 5,890 6 15 5,911

Korean Won 723 7 - 730

Singapore Dollar 677 - 34 711



Swiss Franc 2,490 - - 2,490

Taiwan Dollar - 2 - 2

UK Pound 6,723 - (75) 6,648

US Dollar 52,256 17 592 52,865

Total 91,230 152 544 91,926







Global Focus Fund

46


Currency risk


Other price risk




Equity 40,171 13 0.03 16 0.04


Total 40,177 13 16



Equity 57,065 17 0.03 6 0.01

Total 57,065 17 6




Equity 49,672 18 0.04 17 0.03


Total 50,452 18 17



Equity 91,731 28 0.03 6 0.01


Total 93,239 28 6





30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000





81,486 - 91,230 -




Accumulation Shares 20,673,774 179,788 (3,912,008) 16,941,554


Global Focus Fund

47

15 Related parties









Global Focus Fund

48





(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 3.1092 - 3.1092 2.3948

Group 2 2.5408 0.5684 3.1092 2.3948

xxx xxx xxx xxx xxx


49


Investment Objective and PolicyThe fund’s investment objective is to achieve both capital growth and income. The fund will obtain exposure primarily to UK and overseas index-linked gilts and other index-linked fixed interest securities.

The fund may invest directly in index-linked securities or may achieve exposure indirectly through the use of derivatives. The fund may also invest in other transferable securities, money market instruments, collective investment schemes, cash and near cash and deposits. Derivatives may be used for efficient portfolio management and investment purposes and may include (but are not limited to) derivatives on exchange rates, interest rates, inflation and credit. The fund may also take positions which enable it to benefit from falling asset prices.

Performance and Portfolio ActivityThe fund posted positive returns over the period. The breakeven position in sterling supported returns as inflation breakevens widened, supported by a depreciating sterling. The small exposure to corporate bonds also aided returns as investment credit spreads tightened across major regions. We tactically managed the sterling duration position by reducing the sensitivity to interest rate changes in sterling. We maintained a position in favour of falling UK inflation amid uncertainty related to the UK’s exit from the European Union (EU). A small exposure of 5.46% to a globally diversified basket of investment grade corporate bonds, with a bias towards utilities was maintained. We bought and sold UK inflation linked bonds of the same maturity. We bought interest rate swaps issued by Morgan Stanley and sold interest rate swaps issued by Lloyds Banking Group.

OutlookWorries over the UK’s exit from the EU, alongside rising trade tensions and a review of the Retail Price Index (RPI) as an inflation measure leads to a cautious stance on inflation in the near term. However, given a tight UK labour market, inflation could rise in the long term.

Tim Foster & Ian FishwickFund Managers

30 June 2019


SRRI


Income Shares 5

1 3 4 5 6 72











• The use of derivatives may result in ‘‘leverage’’ by which we mean a level of exposure which could expose the fund to the potential of greater gains or losses than would otherwise be the case.

• There is a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. While we seek to mitigate this, the fund may be exposed to the risk of financial loss if it invests into an instrument issued by an entity that subsequently defaults on its borrowings. Losses may also be realised if an entity that the fund is exposed to ceases to make interest payments over a period of time or indefinitely. Bond prices have an inverse relationship with interest rates such that when interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall.

• The fund may be exposed to the risk of financial loss if a counterparty used for derivative instruments subsequently defaults.



50

Income Shares Accumulation Shares






Distributions (0.60) (1.05) (0.79) (0.73) (1.32) (0.96)

Retained distributions on accumulation shares - - - 0.73 1.32 0.96


*after direct transaction costs of - - 0.01 - - 0.01

Performance


Other information

Closing net asset value (£'000) 3,828 4,101 5,395 164,080 159,355 405,526

Closing number of shares 1,080,228 1,261,939 1,684,102 37,823,861 40,117,183 103,915,262


Direct transaction costs 0% 0% 0% 0% 0% 0%





51



Note £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 4 11,706 (7,604)

Revenue 5 3,170 7,413

Expenses 6 (539) (1,078)



Taxation 7 - -


Total return before distributions 14,252 (1,400)


Change in net assets attributable to shareholders from investment activities 13,965 (2,200)



£'000 £'000 £'000 £'000






xxx (9,803) xxx (246,242)


Change in net assets attributable to shareholders from investment activities (see above) 13,965 (2,200)

Retained distribution on accumulation shares 280 737


Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,441 281

Cash and bank balances 10 745 1,027


Total assets 168,650 163,764

Liabilities:

Investment liabilities (611) (187)

Creditors

Distribution payable (2) (8)







52



2 Equalisation





30/06/19 30/06/18

£'000 £'000

Gains/(losses) on non-derivative securities 11,246 (7,476)

Gains/(losses) on derivative contracts 454 (533)

Gains/(losses) on forward currency contracts 6 571



Net capital gains/(losses) 11,706 (7,604)

5 Revenue

30/06/19 30/06/18

£'000 £'000



Bank interest 2 1


6 Expenses

30/06/19 30/06/18






Custody fees 3 7


Audit fee 10 10


38 56

Total expenses 539 1,078



53

7 Taxation

30/06/19 30/06/18


Total current taxation - -





Indexation gains not subject to tax (777) (1,895)

Current tax charge/(credit) - -

Open ended investment companies are exempt from UK tax on capital gains. The fund has unrelieved excess management expenses resulting in a potential deferred tax asset of £2,242,000 (2018: £1,974,000). It is unlikely that the fund will generate sufficient taxable profits in the future to utilise these and therefore no deferred tax asset has been recognised. The fund is an interest distributing fund under Corporation Tax Act 2009 and as interest distributions are deductible when calculating the liability, the corporation tax charge will usually be reduced to nil, except where there are expenses which are not deductible.

8 Finance costs

30/06/19 30/06/18

£'000 £'000


Income Shares

Final 2 8

Interim 4 6

Accumulation Shares

Final 103 341

Interim 177 396

286 751



Add: Revenue deducted on in specie shares - 48


Interest/other

Currency amortisation - 44

FX Hedging Expense - 7

Swap expenses 77 80

Interest 1 -

Derivative expense 7 -

85 131





UK capital indexation (3,886) (9,473)

Overseas capital indexation (187) (450)

Coupon distribution adjustment* 1,814 4,519

287 800


*Revenue on debt securities is accounted for on an effective yield basis. For the purpose of calculating the distribution, revenue on debt securities is computed on a coupon basis where this exceeds the amount determined on an effective yield basis.



54

9 Debtors

30/06/19 30/06/18

£'000 £'000


Sales of currency awaiting settlement 13 -

Amounts receivable for issue of shares 1,180 -

Total debtors 1,441 281


30/06/19 30/06/18

£'000 £'000



Total cash and bank balances 745 1,027

11 Other creditors

30/06/19 30/06/18

£'000 £'000

Amounts payable for cancellation of shares - 27


Amounts payable on closure of derivative contract 54 14

Purchases of currency awaiting settlement 14 -



Currency exposure



Australian Dollar 69 - 1 70

Euro (95) 35 (4) (64)

Japanese Yen 6 24 1 31

New Zealand Dollar (154) 13 (17) (158)

Swedish Krona (282) - (30) (312)

Swiss Franc 200 9 11 220

UK Pound 165,706 659 1,304 167,669

US Dollar 403 5 44 452

Total 165,853 745 1,310 167,908

30/06/18 £'000 £'000 £'000 £'000

Canadian Dollar - 1 - 1

Euro - 20 - 20

UK Pound 162,270 1,007 158 163,435

Total 162,270 1,028 158 163,456




55

Interest rate risk profile of financial assets and financial liabilities

The interest rate risk profile of the fund's financial assets was:

Currency Floating rate financial assets Fixed rate financial assetsFinancial assets on which no

interest is paid Total assets30/06/19 £'000 £'000 £'000 £'000

Australian Dollar - 69 1 70

Euro 35 - - 35


New Zealand Dollar 13 - - 13

Swedish Krona - - 9 9


UK Pound 156,539 1,820 9,447 167,806

US Dollar 5 403 47 455

Total 156,625 2,509 9,516 168,650

30/06/18 £'000 £'000 £'000 £'000


Euro 19 - - 19

UK Pound 157,653 2,736 3,355 163,744

Total 157,673 2,736 3,355 163,764

The interest rate risk profile of the fund's financial liabilities was:

CurrencyFloating rate financial

liabilities Fixed rate financial liabilitiesFinancial liabilities on which

no interest is paid Total liabilities30/06/19 £'000 £'000 £'000 £'000

Euro 95 - 4 99

Japanese Yen - 8 - 8

New Zealand Dollar 154 - 17 171

Swedish Krona 291 - 30 321

Swiss Franc - - 3 3

UK Pound^ 59 - 167,986 168,045

US Dollar - - 3 3

Total 599 8 168,043 168,650

30/06/18 £'000 £'000 £'000 £'000

UK Pound 186 - 163,578 163,764

Total 186 - 163,578 163,764

^ Includes £167,908,000 in respect of the fund's liability to redeem all shares (2018: £163,456,000).




Currency risk


Interest rate risk

A rise or fall of 1% in global interest rates is likely to result in a 23.97% fall or rise in the fund's market value (2018: 24.37%).

Other price risk


Interest rate swaps exposure

At the year end the fund holds no interest rate swaps that could impact it significantly (2018: same).

Bond futures

At the year end the fund holds no derivatives that could impact it significantly (2018: same).



56



Bond 47,370 - - - -

Total 47,370 - -



Bond 62,486 - - - -

Total 62,486 - -




Bond 213,983 - - - -


Total 213,983 1 -



Bond 351,770 - - - -

In-specie 74,333 - - - -


Total 426,103 1 -





30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000



Level 2: Observable market data 17,786 (611) 13,633 (187)


166,464 (611) 162,456 (187)




Income Shares 1,261,939 171,772 (353,483) 1,080,228


16 Related parties




57


30/06/19


£'000 £'000 £'000 £'000 £'000

CIBC (1) - - - (1)

Citibank 10 - - - 10

HSBC Global Markets (3) - - - (3)

Morgan Stanley - - 82 - 82

Royal Bank of Canada 1 - - - 1

UBS - 24 - - 24

Total 7 24 82 - 11330/06/18


£'000 £'000 £'000 £'000 £'000

Barclays - - (112) - (112)

Citigroup Global Markets - - 21 - 21

Deutsche Bank - - (52) - (52)

Lloyd's - - 19 - 19

UBS - 71 - - 71

Total - 71 (124) - (53)


The fund has two share classes; Income Shares and Accumulation Shares. The annual management charge on each share class is as follows:Income Shares : 0.25%Accumulation Shares : 0.25%The distributions per share class are given in the Distribution Statement. All classes have the same rights on winding up.




Income Shares 354.32 385.10 8.69




58


Income Shares - final distribution No. 45 in pence per share

Group 1 - Shares purchased on or before 31 December 2018.Group 2 - Shares purchased from 1 January 2019 to 30 June 2019.

xxx Gross revenueEqualisation

(Note 2)

Amount distributed

31/08/19

Amount distributed

31/08/18

Group 1 0.2261 - 0.2261 0.6701

Group 2 0.1573 0.0688 0.2261 0.6701

xxx xxx xxx xxx xxxIncome Shares - interim distribution No. 44 in pence per share

Group 1 - Shares purchased on or before 30 June 2018.Group 2 - Shares purchased from 1 July 2018 to 31 December 2018.


(Note 2)

Amount distributed

28/02/19

Amount distributed

28/02/18

Group 1 0.3716 - 0.3716 0.3810

Group 2 0.3247 0.0469 0.3716 0.3810




(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 0.2736 - 0.2736 0.8495

Group 2 0.1510 0.1226 0.2736 0.8495

xxx xxx xxx xxx xxxAccumulation Shares - interim distribution No. 32 in pence per share



(Note 2)

Amount accumulated

28/02/19

Amount accumulated

28/02/18

Group 1 0.4597 - 0.4597 0.4692

Group 2 0.3696 0.0901 0.4597 0.4692

xxx xxx xxx xxx xxx

Japan Fund

59


Investment Objective and PolicyThe fund’s investment objective is to achieve long term capital appreciation. The fund will invest primarily in the shares of companies in Japan. There is no policy to restrict investment to particular economic sectors.

Performance and Portfolio ActivityThe fund generated negative returns over the period. Stock selection in the electric appliances and machinery sectors, including analytical and measuring instrument maker Shimadzu and power tool maker Makita disappointed. Encouragingly, in the information and communication sector, Raksul was supported by its positive outlook. I capitalised on the share price weakness to purchase a new position in Kubota, a leading maker of agricultural machinery and construction equipment. Within pharmaceuticals, I bought a new holding in Daiichi Sankyo Kabushik Kaisha for its promising research and development pipeline. Conversely, I selectively sold positions in the transportation equipment (Suzuki Motor) and electric appliances (Sysmex) sectors.

OutlookJapanese stocks have lagged their global peers so far this year. While earnings trends should stabilise in the coming quarters, share prices may remain volatile amid a steady stream of political newsflow. With valuations testing historical lows in some parts of the market, there are opportunities to capitalise on negative sentiment.

Jun TanoFund Manager

30 June 2019


SRRI


1 3 4 5 6 72












Japan Fund

60

Accumulation Shares



Return before operating charges* (9.88) 43.34 53.22


Return after operating charges* (12.56) 40.61 51.00

Distributions (1.46) (1.10) (1.26)




Performance

Return after charges (4.0%) 14.9% 23.0%

Other information








Japan Fund

61



Note £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 4 (18,071) 54,921

Revenue 5 2,015 4,012

Expenses 6 (1,326) (2,815)


Net revenue/(expense) before taxation 680 1,191

Taxation 7 (202) (401)

Net revenue/(expense) after taxation xxx 478 xxx 790

Total return before distributions (17,593) 55,711


Change in net assets attributable to shareholders from investment activities (18,071) 54,921



Note £'000 £'000 £'000 £'000






xxx (128,839) xxx (183,394)


Change in net assets attributable to shareholders from investment activities (see above) (18,071) 54,921

Retained distribution on accumulation shares 8 374 781


Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 411 7,879

Cash and bank balances 498 1,720

Total other assets xxx 909 xxx 9,599








Japan Fund

62



2 Equalisation





30/06/19 30/06/18

£'000 £'000

Gains/(losses) on non-derivative securities (18,076) 54,397

Other currency gains/(losses) 31 498



Net capital gains/(losses) (18,071) 54,921

5 Revenue

30/06/19 30/06/18

£'000 £'000



6 Expenses

30/06/19 30/06/18







Custody fees 14 32


Audit fee 8 8


27 46


7 Taxation

30/06/19 30/06/18






Net revenue/(expense) multiplied by the standard rate of corporation tax of 20% (2018: 20%). 136 238


Japan Fund

63

Effects of:






8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final 374 781



Add: Revenue deducted on in specie shares 63 -


Interest/other

Interest 9 6



9 Debtors

30/06/19 30/06/18

£'000 £'000


Sales awaiting settlement 188 2,570




10 Other creditors

30/06/19 30/06/18

£'000 £'000


Purchases awaiting settlement 446 1,435





Currency exposure



Japanese Yen 76,996 497 (252) 77,241

UK Pound - - (58) (58)

US Dollar - 1 - 1

Total 76,996 498 (310) 77,184


Japan Fund

64

30/06/18 £'000 £'000 £'000 £'000

Japanese Yen 222,540 1,720 (472) 223,788

UK Pound - - (2,480) (2,480)

US Dollar - - 2,307 2,307

Total 222,540 1,720 (645) 223,615







Currency risk


Other price risk


Equity derivatives

At the year end the fund holds no equity derivatives (2018: same).



Equity 110,937 40 0.04 - -

Total 110,937 40 -



Equity 142,708 50 0.04 - -

In-specie 95,621 - - - -

Total 238,329 50 -




Equity 263,079 127 0.05 - -

Total 263,079 127 -



Equity 297,298 143 0.05 - -

In-specie 141,686 - - - -

Total 438,984 143 -





Japan Fund

65


30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000



Level 2: Observable market data - - - -


76,996 - 222,540 -





15 Related parties









Japan Fund

66





(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 1.4585 - 1.4585 1.0954

Group 2 1.1251 0.3334 1.4585 1.0954

xxx xxx xxx xxx xxx

Long Bond Fund

67


Investment Objective and PolicyThe fund’s investment objective is to achieve both capital growth and income. The fund will obtain exposure mainly to UK and overseas gilts and other fixed interest securities.

The fund may invest directly in UK and overseas gilts and other fixed interest securities with a remaining maturity of at least 15 years or may achieve exposure indirectly through the use of derivatives. The fund may also invest in other transferable securities, money market instruments, collective investment schemes, cash and near cash and deposits. Derivatives may be used for efficient portfolio management and investment purposes and may include (but are not limited to) derivatives on exchange rates, interest rates, inflation and credit. The fund may also take positions which enable it to benefit from falling asset prices.

Performance and Portfolio ActivityThe fund advanced over the period, primarily driven by coupon income and favourable selection in corporate bonds. Holdings in Lloyds Banking Group, BHP Billiton and Society of Lloyds were the top contributors to performance. The interest rate risk positioning detracted from performance. The short sterling duration position and short US dollar duration position (at the front end of the Treasury yield curve) weighed on returns. We increased the beta element of the portfolio taking advantage of the attractive valuations at the start of 2019. We participated in new issues of Berkshire Hathaway and Motability Operations Group while reducing the exposure to UK government bonds (Gilts).

OutlookMuted business investment, coupled with ebbing momentum in key trading partners, will restrain the UK economy. While UK Gilts will remain heavily influenced by other rate markets, we maintain an underweight stance in the asset class given its expensive valuations. We maintain a cautious position in credit due to the lack of clear growth drivers and the build-up of various headwinds such as deteriorating credit fundamentals.


30 June 2019


SRRI


Income Shares 5

1 3 4 5 6 72















Long Bond Fund

68






Return after operating charges* 3.90 2.28 0.06 6.90 3.94 (0.08)

Distributions (1.04) (1.14) (1.38) (1.83) (1.97) (2.19)



*after direct transaction costs of - - - - - -

Performance

Return after charges 6.8% 4.0% 0.2% 6.9% 4.1% (0.1%)

Other information








Long Bond Fund

69



Note £'000 £'000 £'000 £'000

Income


Revenue 5 3,215 4,705

Expenses 6 (442) (612)



Taxation 7 - -







£'000 £'000 £'000 £'000





xxx (15,727) xxx (52,852)



Retained distribution on accumulation shares 2,039 3,295


Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,207 1,132



Total assets 140,133 146,109

Liabilities:

Investment liabilities (1,192) (1,139)

Creditors


Other creditors 11 (1,866) (184)

Total other liabilities xxx (1,970) xxx (266)




Long Bond Fund

70



2 Equalisation





30/06/19 30/06/18

£'000 £'000


Gains/(losses) on derivative contracts 394 517

Gains/(losses) on forward currency contracts (221) 388

Other currency gains/(losses) - (212)



5 Revenue

30/06/19 30/06/18

£'000 £'000



Bank interest 2 1


6 Expenses

30/06/19 30/06/18







Custody fees 4 5


Audit fee 10 10


23 31



Long Bond Fund

71

7 Taxation

30/06/19 30/06/18






Interest distributions (480) (743)


Open ended investment companies are exempt from UK tax on capital gains. The fund is an interest distributing fund under Corporation Tax Act 2009 and as interest distributions are deductible when calculating the liability, the corporation tax charge will usually be reduced to nil, except where there are expenses which are not deductible.

8 Finance costs

30/06/19 30/06/18

£'000 £'000


Income Shares

Final 104 82

Interim 245 293

Accumulation Shares

Final 558 552

Interim 1,481 2,743

2,388 3,670




Interest/other

Currency amortisation 47 87

FX Hedging Expense 1 2

Swap expenses 321 283

Interest 1 -


375 377



9 Debtors

30/06/19 30/06/18

£'000 £'000





30/06/19 30/06/18

£'000 £'000


Cash and bank balances 1,075 549



Long Bond Fund

72

11 Other creditors

30/06/19 30/06/18

£'000 £'000

Amounts payable for cancellation of shares - 23



Purchases awaiting settlement 1,747 -

Total other creditors 1,866 184


Currency exposure



Australian Dollar (14) 1 - (13)

Euro 2,273 2 7 2,282

UK Pound 130,648 1,484 (732) 131,400

US Dollar 3,339 1 (38) 3,302

Total 136,246 1,488 (763) 136,971

30/06/18 £'000 £'000 £'000 £'000

Australian Dollar - 5 - 5

Canadian Dollar (90) 49 - (41)

Euro (361) 3 (4) (362)

UK Pound 139,464 775 920 141,159

US Dollar 3,974 19 (50) 3,943

Total 142,987 851 866 144,704






Australian Dollar 1 - - 1


Euro 384 2,012 20 2,416

UK Pound 4,321 126,830 2,181 133,332

US Dollar 1 3,993 389 4,383

Total 4,708 132,835 2,590 140,133

30/06/18 £'000 £'000 £'000 £'000



Euro 3 350 18 371

UK Pound 3,637 133,701 4,112 141,450

US Dollar 599 3,208 427 4,234

Total 4,293 137,259 4,557 146,109


Long Bond Fund

73





Australian Dollar - - 14 14

Canadian Dollar - - 1 1

Euro - - 134 134

UK Pound^ 21 - 138,882 138,903

US Dollar 784 - 297 1,081

Total 805 - 139,328 140,133

30/06/18 £'000 £'000 £'000 £'000


Euro - 719 14 733

UK Pound - 74 144,920 144,994

US Dollar - - 292 292

Total - 793 145,316 146,109





Currency risk


Interest rate risk


Credit rating risk

As at the year end 0.25% (2018: 0.00%) of the fund's market value was invested in securities rated as below investment grade, additionally 3.88% (2018: 2.32%) of the fund's market value was invested into securities for which no rating was available at the year end.

Other price risk


Futures exposure

The fund invests into futures to gain exposure to the bond markets. A 1% change in interest rates would lead to a change representing 1.64% (2018: 0.80%) of the fund's market value.


The fund invests into interest rate swaps to manage interest rate exposure. A 1% percent change in interest rates would lead to a change representing 1.04% (2018: 0.99%) of the fund's market value.

Leverage risk

The use of derivatives can introduce higher levels of risk into a fund with a view to increasing returns, which is commonly referred to as "leverage". Leverage includes any method by which a fund may generate exposure to investments exceeding the net asset value of the fund and may be provided through borrowing of cash or securities or through the use of derivatives. Since many derivatives have a leverage component, adverse changes in the value or level of the underlying asset, rate or index can result in a loss substantially greater than the amount of a premium paid, if any, to enter into the derivative transaction itself. After taking into account netting and hedging arrangements the average level of leverage employed during the year was 40.03% (2018: 18.23%).


Long Bond Fund

74



Bond 64,704 - - - -


Total 64,704 3 -



Bond 75,089 - - - -



Total 75,300 3 -




Bond 54,957 - - - -


Total 54,957 3 -



Bond 106,891 - - - -


Total 106,891 3 -





30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000


Level 1: Quoted prices 105,281 (167) 119,007 (218)

Level 2: Observable market data 32,157 (1,025) 25,119 (921)


137,438 (1,192) 144,126 (1,139)




Income Shares 32,353,997 15,714,837 (12,580,716) 35,488,118


16 Related parties



Long Bond Fund

75


30/06/19


£'000 £'000 £'000 £'000 £'000

Barclays - - 454 - 454

BNP Paribas (10) - - - (10)

Deutsche Bank - - (680) - (680)

HSBC Global Markets 4 - 101 - 105

Lloyd's - - 1,023 - 1,023

Morgan Stanley - - (73) - (73)

National Australia Bank 5 - - - 5

Royal Bank of Canada (99) - - - (99)

Societe Generale (108) - - - (108)

UBS - 192 - - 192

Total (208) 192 825 - 80930/06/18


£'000 £'000 £'000 £'000 £'000

Barclays - - 34 - 34

BNP Paribas 3 - - - 3

Deutsche Bank - - 467 - 467

Goldman Sachs - - 137 - 137

HSBC Global Markets 13 - (19) - (6)

Lloyd's - - 151 - 151



UBS - 177 - - 177

Total (106) 177 164 - 235






Income Shares 60.45 65.28 7.99



Long Bond Fund

76



Group 1 - Shares purchased on or before 31 March 2019.Group 2 - Shares purchased from 1 April 2019 to 30 June 2019.


(Note 2)

Amount distributed

31/08/19

Amount distributed

31/08/18

Group 1 0.2935 - 0.2935 0.2533

Group 2 0.1793 0.1142 0.2935 0.2533

xxx xxx xxx xxx xxxIncome Shares - interim distributions in pence per share

Group 1 - Distribution No. 86 Shares purchased on or before 30 June 2018.Group 1 - Distribution No. 87 Shares purchased on or before 30 September 2018.Group 1 - Distribution No. 88 Shares purchased on or before 31 December 2018.Group 2 - Distribution No. 86 Shares purchased from 1 July 2018 to 30 September 2018.Group 2 - Distribution No. 87 Shares purchased from 1 October 2018 to 31 December 2018.Group 2 - Distribution No. 88 Shares purchased from 1 January 2019 to 31 March 2019.


(Note 2)

Amount distributed 2018/2019

Amount distributed 2017/2018

Group 1

Distribution No. 86 0.2455 - 0.2455 0.3064

Distribution No. 87 0.2504 - 0.2504 0.3025

Distribution No. 88 0.2502 - 0.2502 0.2782Group 2

Distribution No. 86 0.1221 0.1234 0.2455 0.3064

Distribution No. 87 0.1105 0.1399 0.2504 0.3025

Distribution No. 88 0.1396 0.1106 0.2502 0.2782


Group 1 - Shares purchased on or before 31 March 2019.Group 2 - Shares purchased from 1 April 2019 to 30 June 2019.


(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 0.5189 - 0.5189 0.4400

Group 2 0.2265 0.2924 0.5189 0.4400

xxx xxx xxx xxx xxxAccumulation Shares - interim distributions in pence per share

Group 1 - Distribution No. 62 Shares purchased on or before 30 June 2018.Group 1 - Distribution No. 63 Shares purchased on or before 30 September 2018.Group 1 - Distribution No. 64 Shares purchased on or before 31 December 2018.Group 2 - Distribution No. 62 Shares purchased from 1 July 2018 to 30 September 2018.Group 2 - Distribution No. 63 Shares purchased from 1 October 2018 to 31 December 2018.Group 2 - Distribution No. 64 Shares purchased from 1 January 2019 to 31 March 2019.


(Note 2)

Amount accumulated

2018/2019

Amount accumulated

2017/2018

Group 1

Distribution No. 62 0.4283 - 0.4283 0.5240

Distribution No. 63 0.4390 - 0.4390 0.5203


Distribution No. 62 0.2810 0.1473 0.4283 0.5240

Distribution No. 63 0.3850 0.0540 0.4390 0.5203

Distribution No. 64 0.2660 0.1746 0.4406 0.4811

xxx xxx xxx xxx xxx


77


Investment Objective and PolicyThe fund’s investment objective is to achieve long term capital appreciation. The fund will invest primarily in the shares of companies in Australia, Hong Kong, Malaysia, New Zealand and Singapore. The fund may not invest in Japan. There is no policy to restrict investment to particular economic sectors.

Performance and Portfolio ActivityThe fund generated positive returns over the period. In the information technology (IT) sector, Lenovo Group reported upbeat earnings, driven by an improvement in the product mix in its personal computer business. In consumers, Aristocrat Leisure benefited from optimism about market share gains and healthy growth in its social casino business revenues. I bought new holdings in property developers Wharf Real Estate Investment and Sun Hung Kai Properties at attractive valuations. Both companies are likely to offer sustainable dividends over the next 12–18 months. Meanwhile, I sold the position in insurer Suncorp Group and reduced the exposure to diversified financial services company Macquarie Group due to concerns over regulatory headwinds.

OutlookThe long-term outlook for the region remains strong, supported by solid structural growth drivers and reform-focused governments that are committed to support growth in key economies. Overall, regional equities trade at reasonable valuations.

Polly KwanFund Manager

30 June 2019


SRRI


1 3 4 5 6 72













78

Accumulation Shares






Distributions (11.20) (9.69) (7.23)




Performance


Other information









79



Note £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 4 82 2,127

Revenue 5 1,078 1,996

Expenses 6 (304) (613)


Taxation 7 (11) (17)

Net revenue/(expense) after taxation xxx 763 xxx 1,366

Total return before distributions 845 3,493

Distributions 8 (755) (1,286)

Change in net assets attributable to shareholders from investment activities 90 2,207



Note £'000 £'000 £'000 £'000





xxx (43,271) xxx (11,724)


Change in net assets attributable to shareholders from investment activities (see above) 90 2,207

Retained distribution on accumulation shares 8 465 1,215


Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 128 261


Total other assets xxx 553 xxx 697









80



2 Equalisation





30/06/19 30/06/18

£'000 £'000

Gains/(losses) on non-derivative securities 127 2,154




Net capital gains/(losses) 82 2,127

5 Revenue

30/06/19 30/06/18

£'000 £'000


UK dividends 7 25




Bank interest 5 4


6 Expenses

30/06/19 30/06/18






Depositary fees 3 6

Custody fees 4 8

7 14Other expenses:

Audit fee 8 8


11 16




81

7 Taxation

30/06/19 30/06/18













8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final 465 1,215



Net distributions for the year 755 1,286

Interest/other

Total finance costs 755 1,286


Net revenue after taxation for the year, per the Statement of Total Return 763 1,366



755 1,286


9 Debtors

30/06/19 30/06/18

£'000 £'000




Sales awaiting settlement 4 -

Total debtors 128 261

10 Other creditors

30/06/19 30/06/18

£'000 £'000







82


Currency exposure



Australian Dollar 12,603 - 70 12,673

Hong Kong Dollar 8,641 4 14 8,659

Singapore Dollar 1,174 - - 1,174

UK Pound - 1 (21) (20)

US Dollar 199 420 (15) 604

Total 22,617 425 48 23,090

30/06/18 £'000 £'000 £'000 £'000




UK Pound - - (61) (61)

US Dollar 2,986 436 - 3,422

Total 65,119 436 165 65,720







Currency risk


Other price risk


Equity derivatives




Equity 16,932 11 0.07 10 0.06

Total 16,932 11 10



Equity 58,129 21 0.04 28 0.05


Total 58,220 21 28





83


Equity 17,784 12 0.07 8 0.05


Total 17,989 12 8



Equity 27,613 22 0.08 9 0.03


Total 27,862 22 9





30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000





22,617 - 65,119 -




Accumulation Shares 12,534,546 458,417 (8,843,481) 4,149,482

15 Related parties










84





(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 11.2041 - 11.2041 9.6905

Group 2 5.8593 5.3448 11.2041 9.6905

xxx xxx xxx xxx xxx


85


Investment Objective and PolicyThe fund’s investment objective is to achieve both capital growth and income relating to changes in annuity rates. The fund will obtain exposure primarily to Sterling denominated (or hedged back to Sterling) government and corporate bonds.

The fund may invest directly in securities or may achieve exposure indirectly through the use of derivatives. The fund may also invest in other transferable securities, money market instruments, collective investment schemes, cash and near cash and deposits. Derivatives may be used for efficient portfolio management and investment purposes and may include (but are not limited to) derivatives on exchange rates, interest rates, inflation and credit. The fund may also take positions which enable it to benefit from falling asset prices.

Performance and Portfolio ActivityThe fund advanced over the period, supported by its interest rate risk positioning. Specifically, the bias towards the long end of the US Treasury yield curve contributed significantly to returns. The long sterling duration position also added value. Credit selection enhanced gains, with the largest contribution to returns coming from Tesco following its ratings upgrade. I increased the beta element of the portfolio taking advantage of the attractive valuations at the start of 2019. I participated in new issues of Berkshire Hathaway and Motability Operations Group. Meanwhile, the exposure to utility names was reduced by selling positions in Iberdrola and Anglian Water Services.

OutlookMuted business investment, coupled with ebbing momentum in key trading partners, will restrain the UK economy. While UK government bonds (Gilts) will remain heavily influenced by other rate markets, I maintain an underweight stance in the asset class given its expensive valuations. I maintain a cautious position in credit due to the lack of clear growth drivers and the build-up of various headwinds such as deteriorating credit fundamentals.

Ian FishwickFund Manager

30 June 2019


SRRI

F Accumulation Shares 4

Y Accumulation Shares 4

1 3 4 5 6 72
















86

Y Accumulation Shares F Accumulation Shares


Opening net asset value per share 13,874.48 13,608.69 12,913.13 14,167.51 13,835.02 13,068.90




Distributions (261.10) (305.54) (362.41) (331.61) (374.53) (428.81)

Retained distributions on accumulation shares 261.10 305.54 362.41 331.61 374.53 428.81

Closing net asset value per share 14,707.90 13,874.48 13,608.69 15,073.91 14,167.51 13,835.02


Performance


Other information

Closing net asset value (£'000) 214 80 85 186,853 183,665 170,059

Closing number of shares 1,455 578 623 1,239,579 1,296,379 1,229,190




Highest share price 14,780.00 14,150.00 14,110.00 15,160.00 14,390.00 14,300.00

Lowest share price 13,480.00 13,440.00 12,790.00 13,790.00 13,700.00 12,960.00


87



Note £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 4 6,912 (534)

Revenue 5 4,894 5,184

Expenses 6 (145) (146)



Taxation 7 - -




Change in net assets attributable to shareholders from investment activities 6,912 (534)



£'000 £'000 £'000 £'000





xxx (7,752) xxx 9,278

Swing price adjustment 47 -

Change in net assets attributable to shareholders from investment activities (see above) 6,912 (534)



Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,987 2,117



Total assets 192,937 185,076

Liabilities:


Creditors







88



2 Equalisation





30/06/19 30/06/18

£'000 £'000






Net capital gains/(losses) 6,912 (534)

5 Revenue

30/06/19 30/06/18

£'000 £'000



Bank interest 14 5


6 Expenses

30/06/19 30/06/18






Custody fees 8 8


Audit fee 10 10


21 28


7 Taxation

30/06/19 30/06/18










89


8 Finance costs

30/06/19 30/06/18

£'000 £'000


Y Accumulation Shares

Final 4 2

F Accumulation Shares

Final 4,111 4,855

4,115 4,857




Interest/other


FX Hedging Expense 5 -


Interest - 1


478 327



9 Debtors

30/06/19 30/06/18

£'000 £'000





30/06/19 30/06/18

£'000 £'000

Amounts held at futures clearing houses and brokers 1,454 1,031



11 Other creditors

30/06/19 30/06/18

£'000 £'000



Purchases awaiting settlement 2,957 -

Amounts payable for cancellation of shares 473 -




90




Australian Dollar 191 1 5 197

Euro 12,384 1 137 12,522

UK Pound 154,176 9,106 (1,782) 161,500

US Dollar 12,685 27 136 12,848

Total 179,436 9,135 (1,504) 187,067

30/06/18 £'000 £'000 £'000 £'000



Euro 3,721 1 49 3,771

UK Pound 151,671 15,327 1,921 168,919

US Dollar 10,736 40 78 10,854

Total 166,258 15,434 2,053 183,745








Euro 518 13,360 169 14,047

UK Pound 11,804 151,378 1,779 164,961

US Dollar 27 13,275 387 13,689

Total 12,352 178,245 2,340 192,937

30/06/18 £'000 £'000 £'000 £'000



Euro 1 4,408 72 4,481

UK Pound 17,676 149,195 2,123 168,994

US Dollar 225 10,898 165 11,288

Total 17,968 164,742 2,366 185,076







Euro - 809 716 1,525

UK Pound^ - - 190,528 190,528

US Dollar 274 - 567 841

Total 274 809 191,854 192,937



91

30/06/18 £'000 £'000 £'000 £'000



Euro - 639 71 710

UK Pound - 43 183,777 183,820

US Dollar - - 434 434

Total - 682 184,394 185,076





Currency risk


Interest rate risk


Credit rating risk


Other price risk


Futures exposure

At the year end the fund holds no futures that could impact it significantly (2018: same).



Credit default swaps exposure

At the year end the fund holds no credit default swaps that could impact it significantly (2018: same).

Leverage risk




Bond 93,025 - - - -



Total 93,129 5 -



Bond 85,391 - - - -



Total 85,908 4 -





92


Bond 84,389 - - - -


Total 84,389 3 -



Bond 81,137 - - - -



Total 81,975 3 -





30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000



Level 2: Observable market data 106,062 (2,019) 72,342 (1,062)


181,815 (2,379) 167,525 (1,267)




Y Accumulation Shares 578 946 (69) 1,455

F Accumulation Shares 1,296,379 178,752 (235,552) 1,239,579

16 Related parties



30/06/19


£'000 £'000 £'000 £'000 £'000

BNP Paribas (6) - - - (6)

Citibank (6) - - - (6)


JP Morgan (513) - - - (513)

Lloyd's - - 66 - 66


National Australia Bank (1) - - - (1)


UBS - (59) - - (59)

Total (886) (59) (643) - (1,588)



93

30/06/18


£'000 £'000 £'000 £'000 £'000


Goldman Sachs - - (19) - (19)




UBS - 8 - - 8

Total (347) 8 (434) - (773)


The fund has two share classes; Y Accumulation Shares and F Accumulation Shares. The annual management charge on each share class is as follows:Y Accumulation Shares : 0.35%F Accumulation Shares : 0.05%The distributions per share class are given in the Distribution Statement. All classes have the same rights on winding up.




Y Accumulation Shares 14,697.60 15,370.00 4.57

F Accumulation Shares 15,073.95 15,770.00 4.62



94


Y Accumulation Shares - final distribution No. 6 in pence per share



(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 261.1021 - 261.1021 305.5365

Group 2 68.8665 192.2356 261.1021 305.5365

xxx xxx xxx xxx xxxF Accumulation Shares - final distribution No. 6 in pence per share



(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 331.6109 - 331.6109 374.5296

Group 2 193.9202 137.6907 331.6109 374.5296

xxx xxx xxx xxx xxx


95


Investment Objective and PolicyThe fund’s investment objective is to achieve long term capital appreciation. The fund will invest primarily in the shares of companies in developing countries, including those in Africa, the Indian sub-continent, Latin America, South East Asia, Europe and the Middle East. There is no policy to restrict investment to particular economic sectors.

Performance and Portfolio ActivityThe fund generated positive returns over the period. From a sector perspective, stock picking in financials and positioning in communication services names aided returns. At a country level, South Africa was the largest contributor to performance. Within financials, we bought a position in Bank Central Asia for its strong cash management business and focus on retail banking. We also purchased shares in Russia’s internet company Yandex (A), as it benefits from strong structural drivers in online advertising, as well as from a market leading position in the ride-hailing market. However, the exposure to Baidu (A) (ADR) was decreased. The position in India-based automobile parts manufacturer Motherson Sumi was sold due to a slowdown in the domestic automobile market.

OutlookEmerging markets are likely to be impacted by the monetary policy in the US and continued easing by policymakers globally. Nonetheless, from a long-term perspective, emerging markets continue to offer numerous opportunities, supported by structural growth drivers such as urbanisation.

Cesar Hernandez & John ChowFund Managers

30 June 2019


SRRI


1 3 4 5 6 72















96

Accumulation Shares






Distributions (2.16) (1.45) (1.34)




Performance


Other information









97



Note £'000 £'000 £'000 £'000

Income


Revenue 5 3,287 3,191

Expenses 6 (1,507) (1,666)

Interest payable and similar charges 8 1 (1)


Taxation 7 (193) (415)







Note £'000 £'000 £'000 £'000





xxx (8,275) xxx (10,983)





Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,982 8,062



Total assets 142,736 150,069

Liabilities:


Creditors

Other creditors 11 (1,362) (4,485)






98



2 Equalisation





30/06/19 30/06/18

£'000 £'000


Gains/(losses) on derivative contracts (34) 320



Broker fee rebates 12 33


5 Revenue

30/06/19 30/06/18

£'000 £'000






6 Expenses

30/06/19 30/06/18







Custody fees 48 58


Audit fee 8 8


16 24




99

7 Taxation

30/06/19 30/06/18



Overseas capital gains tax 17 19












8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final 1,574 1,128




Interest/other

Interest (1) 1





Indian capital gains tax 17 19

1,605 1,128


9 Debtors

30/06/19 30/06/18

£'000 £'000

Amounts receivable for issue of shares - 3,426




Foreign capital gains tax receivable - 32




100


30/06/19 30/06/18

£'000 £'000




11 Other creditors

30/06/19 30/06/18

£'000 £'000




Foreign capital gains tax payable (1) -



Currency exposure



Brazilian Real 9,463 1 218 9,682

Hong Kong Dollar 25,115 4 177 25,296

Hungarian Forint 1,022 - - 1,022

Indian Rupee 13,346 109 (78) 13,377


Korean Won 15,776 79 22 15,877

Mexican Peso 3,467 - - 3,467

Philippine Peso 2,024 - - 2,024

Polish Zloty 765 - - 765

Qatari Rial 425 - - 425



Taiwan Dollar 11,074 23 151 11,248

Thai Baht 1,818 - - 1,818

Turkish Lira 284 - - 284

UAE Dirham 1,078 - - 1,078

UK Pound - 40 (139) (99)

US Dollar 31,916 11,925 269 44,110

Total 128,573 12,181 620 141,374

30/06/18 £'000 £'000 £'000 £'000

Brazilian Real 6,622 - 77 6,699

Hong Kong Dollar 29,191 - (406) 28,785

Hungarian Forint 912 - - 912

Indian Rupee 13,202 1 25 13,228


Korean Won 18,411 7 56 18,474

Malaysian Ringgit 1,004 - - 1,004

Mexican Peso 3,292 - - 3,292

Philippine Peso 1,258 - - 1,258

Polish Zloty 876 - - 876


Taiwan Dollar 12,824 22 266 13,112



101

Thai Baht 2,378 - - 2,378

Turkish Lira 2,244 - - 2,244

UAE Dirham 397 - - 397

UK Pound - 10 3,299 3,309

US Dollar 30,432 8,126 260 38,818

Total 133,647 8,166 3,577 145,390







Currency risk


Other price risk


Equity derivatives

The fund invests into futures to gain exposure to the equity markets. A 10% change in the price of the futures would result in a 0.52% change in the fund's market value (2018: The fund held no futures that could impact it significantly).The fund invests into ELNs to gain exposure to the equity markets. A 10% change in the price of the ELNs would result in a 0.45% change in the fund's market value (2018: The fund held no ELNs that could impact it significantly) .



Equity 116,193 147 0.13 52 0.04



Total 116,214 148 52



Equity 124,277 146 0.12 134 0.11



Total 124,281 147 134




Equity 99,143 117 0.12 49 0.05



Total 99,238 118 49



Equity 114,144 127 0.11 136 0.12



Total 114,158 128 136





102



30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000



Level 2: Observable market data 7,012 - 974 -


128,573 - 133,841 (194)





16 Related parties



30/06/19


£'000 £'000 £'000 £'000 £'000

UBS - 283 - - 283

Total - 283 - - 28330/06/18


£'000 £'000 £'000 £'000 £'000

UBS - (194) - - (194)

Total - (194) - - (194)









103





(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 2.1574 - 2.1574 1.4510

Group 2 1.4103 0.7471 2.1574 1.4510

xxx xxx xxx xxx xxx


104


Investment Objective and PolicyThe fund’s investment objective is to achieve long term capital appreciation. The fund will invest primarily in the shares of companies in markets throughout the world. In order to manage risk, the Investment Manager aims to hold a portfolio whose constituents are normally within a range of the MSCI World (Net) Index as the reference risk benchmark (or if no longer compiled or relevant such other index as the ACD may deem appropriate). However, the Investment Manager is not restricted by this in its selection of investments and will choose stocks based on the availability of attractive investment opportunities. The fund may hold cash and near cash and deposits and may use derivatives for the purpose of efficient portfolio management.

Performance and Portfolio ActivityThe fund recorded negative returns over the period. Biotech firm InflaRx fell after its leading drug candidate for a chronic inflammatory skin disease failed a critical clinical trial. Pharmaceuticals company Perrigo weighed on returns after the Irish tax authority unexpectedly announced a $1.8 billion tax bill for royalty sales on its multiple sclerosis drug Tysabri. Both holdings were sold. Conversely, wireless chipset maker Qualcomm added value on news that it had reached a six-year license agreement with Apple. The increased exposure to integrated oil company Chevron continues to be supported by strong free cash flow. New positions were purchased in broadband-focussed cable company Charter Communications, which has a strong market position, and distiller Constellation Brands, which has a stake in fast-growing cannabis manufacturer Canopy Growth.

OutlookSentiment remains cautious across global stock markets in view of risks in the current late-cycle environment. Factors driving market volatility, trade tensions, and lukewarm global growth prospects remain in place.

Cesar HernandezFund Manager

30 June 2019


SRRI


1 3 4 5 6 72













105

Accumulation Shares






Distributions (4.25) (4.21) (4.00)




Performance


Other information









106



Note £'000 £'000 £'000 £'000

Income


Revenue 5 6,956 10,232

Expenses 6 (3,038) (4,115)



Taxation 7 (700) (979)


Total return before distributions (291) 37,195





Note £'000 £'000 £'000 £'000





In specie cancellation of shares (197,211) -

xxx (247,437) xxx (38,485)





Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,405 1,595



Total assets 224,783 474,206

Liabilities:


Creditors







107



2 Equalisation





30/06/19 30/06/18

£'000 £'000

Compensation payments - 69


Gains/(losses) on derivative contracts (422) 1,421

Other currency gains/(losses) 576 74


Broker fee rebates 6 89


5 Revenue

30/06/19 30/06/18

£'000 £'000


UK dividends 634 769

UK property income distributions 16 -

UK scrip dividends 47 27




Bank interest 23 21


6 Expenses

30/06/19 30/06/18







Custody fees 15 23


Audit fee 8 8


34 58




108

7 Taxation

30/06/19 30/06/18













8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final 2,071 4,620




Net distribution for the year 2,916 4,744

Interest/other

Interest 78 65

Derivative expense 33 -

111 65





UK scrip dividends (47) (27)


Stapled scrip dividends (5) (10)

2,916 4,744


9 Debtors

30/06/19 30/06/18

£'000 £'000

Amounts receivable for issue of shares - 17

Sales awaiting settlement 1,106 610

Sales of currency awaiting settlement - 130






109


30/06/19 30/06/18

£'000 £'000

Amounts held at futures clearing houses and brokers 265 1,067



11 Other creditors

30/06/19 30/06/18

£'000 £'000



Purchases of currency awaiting settlement - 130




Currency exposure



Australian Dollar 4,025 1,521 38 5,584

Canadian Dollar 7,475 496 6 7,977

Danish Krone 1,356 - 30 1,386

Euro 24,500 663 (42) 25,121

Hong Kong Dollar 3,624 165 - 3,789

Israeli Shekel 200 7 - 207

Japanese Yen 17,504 682 16 18,202

New Zealand Dollar - 417 - 417

Norwegian Krone 997 880 - 1,877

Singapore Dollar 1,013 199 - 1,212

Swedish Krona 1,287 2,981 - 4,268

Swiss Franc 6,487 74 - 6,561

UK Pound 12,110 170 100 12,380

US Dollar 134,018 527 419 134,964

Total 214,596 8,782 567 223,945

30/06/18 £'000 £'000 £'000 £'000

Australian Dollar 8,824 3,087 182 12,093

Canadian Dollar 15,287 1,281 35 16,603

Danish Krone 1,657 655 28 2,340

Euro 55,411 2,392 236 58,039

Hong Kong Dollar 6,485 1,309 21 7,815

Israeli Shekel - 41 - 41

Japanese Yen 38,223 3,695 211 42,129

New Zealand Dollar 357 24 - 381

Norwegian Krone 2,303 176 - 2,479

Singapore Dollar 2,151 27 - 2,178

Swedish Krona 5,164 1,456 - 6,620

Swiss Franc 9,264 4,556 - 13,820

UK Pound 28,304 24 (422) 27,906

US Dollar 276,466 3,713 (129) 280,050

Total 449,896 22,436 162 472,494



110







Currency risk


Other price risk


Equity derivatives




Equity 182,832 99 0.05 79 0.04



Total 182,835 100 79



Equity 216,671 113 0.05 6 -


In-specie 197,911 - - - -


Total 414,888 114 6




Equity 284,615 138 0.05 144 0.05



Total 284,983 139 144



Equity 326,414 135 0.04 8 -



Total 326,543 136 8






111


30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000



Level 2: Observable market data 526 - 6 -


214,596 - 450,175 (279)





16 Related parties



30/06/19


£'000 £'000 £'000 £'000 £'000

UBS - 103 - - 103

Total - 103 - - 10330/06/18


£'000 £'000 £'000 £'000 £'000

UBS - (279) - - (279)

Total - (279) - - (279)









112





(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 4.2464 - 4.2464 4.2050

Group 2 3.0690 1.1774 4.2464 4.2050

xxx xxx xxx xxx xxx


113


Investment Objective and PolicyThe fund’s investment objective is to achieve long term capital appreciation. The fund will invest primarily in the shares of companies throughout the Pacific Basin but excluding those in Japan. There is no policy to restrict investment to particular economic sectors.

Performance and Portfolio ActivityThe fund generated strong positive returns over the period. Positions in the information technology sector, notably Appen, supported performance given its upbeat financials and strong growth prospects. Selected holdings in the financials sector, including insurer AIA Group and Bank Rakyat Indonesia also added value. AIA is a beneficiary of growth in Asia’s underpenetrated insurance markets, while Bank Rakyat reported robust loan growth. I bought new holdings in property developers Wharf Real Estate Investment and Sun Hung Kai Properties at attractive valuations. Both companies are likely to offer sustainable dividends over the next 12–18 months. I sold positions in Angel Yeast and agricultural feed producer Guangdong Haid Group amid cost concerns.

OutlookGrowth in the region is expected to remain resilient, buoyed by solid structural growth drivers. Several key economies have reform-focused governments that are committed to support growth. Overall, regional equities trade at reasonable valuations.

Polly KwanFund Manager

30 June 2019


SRRI


1 3 4 5 6 72















114

Accumulation Shares






Distributions (11.90) (8.55) (8.64)




Performance


Other information









115



Note £'000 £'000 £'000 £'000

Income


Revenue 5 4,794 5,485

Expenses 6 (1,382) (1,927)



Taxation 7 (119) (536)







Note £'000 £'000 £'000 £'000






xxx (11,748) xxx (82,074)





Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,447 4,339



Total assets 164,526 172,949








116



2 Equalisation





30/06/19 30/06/18

£'000 £'000


Other currency gains/(losses) (52) 101




5 Revenue

30/06/19 30/06/18

£'000 £'000




Bank interest 17 13


6 Expenses

30/06/19 30/06/18







Custody fees 46 56


Audit fee 8 8

Other operating expenses (27) 64

(19) 72


7 Taxation

30/06/19 30/06/18







Net revenue/(expense) multiplied by the standard rate of corporation tax of 20% (2018: 20%). 682 710



117

Effects of:



Overseas tax expensed - (1)


Revenue not included for tax purposes (923) (1,053)



8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final 3,188 2,469





Interest/other

Interest 2 8





Indian capital gains tax 8 38

3,299 3,052


9 Debtors

30/06/19 30/06/18

£'000 £'000




Foreign capital gains tax receivable - 8


10 Other creditors

30/06/19 30/06/18

£'000 £'000


Purchases awaiting settlement - 708






118


Currency exposure




Chinese Yuan Renminbi 4,855 2,646 - 7,501

Euro 11 - - 11

Hong Kong Dollar 58,454 60 461 58,975

Indian Rupee 17,984 - 20 18,004


Korean Won 17,310 7 67 17,384


Philippine Peso 2,470 - 18 2,488


Taiwan Dollar 13,366 23 164 13,553

Thai Baht 1,713 - - 1,713

UK Pound - - (196) (196)

US Dollar 7,265 854 194 8,313

Total 159,489 3,590 775 163,854

30/06/18 £'000 £'000 £'000 £'000



Hong Kong Dollar 53,620 132 52 53,804

Indian Rupee 16,215 - 31 16,246


Korean Won 17,653 7 96 17,756


Philippine Peso 576 - (15) 561


Taiwan Dollar 17,748 22 238 18,008

Thai Baht 3,663 - - 3,663

UK Pound - 29 (2,338) (2,309)

US Dollar 10,179 761 100 11,040

Total 164,185 4,425 (1,666) 166,944







Currency risk


Other price risk


Equity derivatives




119



Equity 59,799 39 0.06 30 0.05

Total 59,799 39 30



Equity 69,403 41 0.06 84 0.12


Total 69,584 41 84




Equity 74,435 62 0.08 43 0.06


Total 74,436 62 43



Equity 121,329 74 0.06 167 0.14


In-specie 31,056 - - - -

Total 152,481 74 167





30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000




Level 3: Unobservable data* 223 - 152 -

159,489 - 164,185 -




120





15 Related parties










121





(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 11.8955 - 11.8955 8.5465

Group 2 6.3667 5.5288 11.8955 8.5465

xxx xxx xxx xxx xxx


122


Investment Objective and PolicyThe fund’s investment objective is to achieve both capital growth and income. The fund will obtain exposure primarily to UK government and international government and corporate bonds.

The fund may invest directly in UK government and international government and corporate bonds and may also invest in emerging market debt and high yield securities, or may achieve exposure indirectly through the use of derivatives. The fund may also invest in other transferable securities, money market instruments, collective investment schemes, cash and near cash and deposits. Derivatives may be used for efficient portfolio management and investment purposes and may include (but are not limited to) derivatives on exchange rates, interest rates, inflation and credit. The investment strategies attempt to maintain at least 90% of currency exposure in UK Sterling. The fund may also take positions which enable it to benefit from falling asset prices.

Performance and Portfolio ActivityThe fund advanced over the period, supported by its interest rate risk positioning. Specifically, the bias towards the long end of the US Treasury yield curve contributed significantly to returns. The sterling duration position also added value. Credit selection enhanced gains, with the largest contribution to returns coming from Tesco following its ratings upgrade. We increased the beta element of the portfolio taking advantage of the attractive valuations at the start of 2019. We participated in new issues of Berkshire Hathaway and Motability Operations Group. Meanwhile, the exposure to credits such as EDF and Daimler International Finance was reduced.

OutlookMuted business investment, coupled with ebbing momentum in key trading partners, will restrain the UK economy. While UK government bonds (Gilts) will remain heavily influenced by other rate markets, we maintain an underweight stance in the asset class given its expensive valuations. We maintain a cautious position in credit due to the lack of clear growth drivers and the build-up of various headwinds such as deteriorating credit fundamentals.

Kristian Atkinson, Ian Fishwick, Ario Emami Nejad & Sajiv VaidFund Managers

30 June 2019


SRRI


Income Shares 4

Monthly Accumulation Shares 4

1 3 4 5 6 72
















123







Distributions (3.34) (3.59) (3.39) (5.55) (5.84) (5.95)




Performance


Other information

Closing net asset value (£'000) 802 1,300 5,289 36,017 51,596 45,337

Closing number of shares 499,312 857,836 3,492,454 13,270,939 20,574,501 18,522,701


Direct transaction costs 0% 0% 0.01% 0% 0% 0.01%




Monthly Accumulation Shares


Opening net asset value per share 1,233.21 1,203.66 1,155.39




Distributions (27.31) (28.69) (29.29)


Closing net asset value per share 1,334.68 1,233.21 1,203.66


Performance


Other information




Direct transaction costs 0% 0% 0.01%


Highest share price 1,346.00 1,261.00 1,277.00

Lowest share price 1,179.00 1,178.00 1,127.00


124



Note £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 4 5,971 165

Revenue 5 3,984 3,916

Expenses 6 (552) (570)



Taxation 7 - -




Change in net assets attributable to shareholders from investment activities 5,971 165



£'000 £'000 £'000 £'000





xxx (20,228) xxx 968


Change in net assets attributable to shareholders from investment activities (see above) 5,971 165



Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,503 1,504



Total assets 116,667 122,303

Liabilities:


Creditors








125



2 Equalisation





30/06/19 30/06/18

£'000 £'000

Gains/(losses) on non-derivative securities 4,949 (749)

Gains/(losses) on derivative contracts 1,603 959




Net capital gains/(losses) 5,971 165

5 Revenue

30/06/19 30/06/18

£'000 £'000



Bank interest 2 1


6 Expenses

30/06/19 30/06/18




Foreign exchange administration fees 2 -



Custody fees 7 5


Audit fee 10 10


17 22




126

7 Taxation

30/06/19 30/06/18









8 Finance costs

30/06/19 30/06/18

£'000 £'000


Income Shares

Final 9 14

Interim 10 26

Accumulation Shares

Final 388 564

Interim 559 588

Monthly Accumulation Shares

Final 121 110

Interim 1,367 1,455

2,454 2,757




Interest/other




Interest 1 1


941 592



9 Debtors

30/06/19 30/06/18

£'000 £'000

Sales awaiting settlement - 22


Amounts receivable for issue of shares 17 -




127


30/06/19 30/06/18

£'000 £'000




11 Other creditors

30/06/19 30/06/18

£'000 £'000







Currency exposure





Euro 8,472 6 114 8,592



Norwegian Krone 3 - - 3

Swedish Krona (385) - (45) (430)


UK Pound 86,294 2,427 (714) 88,007

US Dollar 11,818 21 171 12,010

Total 106,446 2,571 (455) 108,562

30/06/18 £'000 £'000 £'000 £'000

Australian Dollar (31) - (9) (40)

Canadian Dollar (1) 20 (2) 17

Euro 2,656 1 107 2,764

Japanese Yen (63) - (9) (72)

New Zealand Dollar 42 11 38 91


Swedish Krona (3) 1 (1) (3)

Swiss Franc 12 - 14 26

UK Pound 107,147 2,527 1,101 110,775

US Dollar 6,560 90 76 6,726

Total 116,345 2,650 1,315 120,310




128





Australian Dollar 30 1,043 20 1,093


Euro 327 9,998 183 10,508



Norwegian Krone - - 62 62

Swedish Krona - - 15 15


UK Pound 3,957 84,732 1,201 89,890

US Dollar 619 13,290 394 14,303

Total 5,031 109,717 1,919 116,667

30/06/18 £'000 £'000 £'000 £'000


Canadian Dollar 24 4 10 38

Euro 24 3,918 134 4,076





Swiss Franc - 12 14 26

UK Pound 4,016 101,398 5,537 110,951

US Dollar 738 6,216 122 7,076

Total 4,816 111,604 5,883 122,303






Euro 217 1,197 502 1,916





Swiss Franc 4 - 5 9

UK Pound^ 113 - 110,332 110,445

US Dollar 1,835 - 458 2,293

Total 4,014 1,207 111,446 116,667

30/06/18 £'000 £'000 £'000 £'000


Canadian Dollar 9 - 12 21

Euro 9 1,199 104 1,312

Japanese Yen 76 - 10 86

New Zealand Dollar - - 2 2


UK Pound 26 39 120,420 120,485

US Dollar - - 350 350

Total 155 1,238 120,910 122,303






129


Currency risk


Interest rate risk


Credit rating risk


Other price risk


Analysis of derivatives exposure

Value-at-Risk (VaR) analysis assesses potential losses for a given statistical confidence level and a specified time horizon. The company uses a 99% confidence level and a 20 trading day (approx. 1 calendar month) time horizon for its analysis. The model employed is based on a Monte Carlo simulation of market risk factors to simulate the expected changes to the valuation of individual assets held in a fund. The sum of these simulations provides the basis for the estimation process at fund level. The reliability of VaR analysis can be negatively affected by significant changes to the volatility of market risk factors as well as the deviation of actual market prices from those derived in the simulation framework. For this fund the lowest, the highest and the average utilisation of the value-at-risk limit calculated during the financial year are 32.73% (2018: 47.42%), 56.93% (2018: 62.05%) and 48.24% (2018: 50.13%) respectively. The model and inputs used for the VaR calculation are the Monte Carlo Simulation model with 5,000 simulations, 99% confidence level and 20 days holding period. Additionally as this fund is an Absolute VaR fund the reference portfolio is not used as part of limit.



Bond 57,307 - - - -


Total 57,307 3 -



Bond 66,863 - - - -



Total 67,075 3 -




Bond 40,682 - - - -


Total 40,682 3 -



Bond 41,420 - - - -


Total 41,420 3 -






130


30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000





112,593 (6,147) 118,149 (1,804)




Income Shares 857,836 55,465 (413,989) 499,312


Monthly Accumulation Shares 5,466,541 212,747 (303,987) 5,375,301

16 Related parties



30/06/19


£'000 £'000 £'000 £'000 £'000

Bank of America (16) - - - (16)


CIBC 4 - - - 4

Citigroup Global Markets - - (432) - (432)


Goldman Sachs - - (257) - (257)

HSBC Global Markets 6 - - - 6

JP Morgan (397) - 252 - (145)

Lloyd's - - 566 - 566

Morgan Stanley - - (1,007) - (1,007)


UBS - 122 - - 122

Total (635) 122 (910) - (1,423)30/06/18


£'000 £'000 £'000 £'000 £'000

Bank of America (133) - - - (133)

Citigroup Global Markets - - (550) - (550)



Lloyd's - - 118 - 118


Northern Trust 26 - - - 26


UBS - 98 - - 98

Total (135) 98 (634) - (671)



131


The fund has three share classes; Income Shares, Accumulation Shares and Monthly Accumulation Shares. The annual management charge on each share class is as follows:Income Shares : 0.40%Accumulation Shares : 0.40%Monthly Accumulation Shares : 0.40%The distributions per share class are given in the Distribution Statement. All classes have the same rights on winding up.




Income Shares 160.57 172.50 7.43


Monthly Accumulation Shares 1,334.68 1,433.48 7.40



132





(Note 2)

Amount distributed

31/08/19

Amount distributed

31/08/18

Group 1 1.7477 - 1.7477 1.6764

Group 2 0.6095 1.1382 1.7477 1.6764




(Note 2)

Amount distributed

28/02/19

Amount distributed

28/02/18

Group 1 1.5913 - 1.5913 1.9125

Group 2 0.9353 0.6560 1.5913 1.9125




(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 2.9218 - 2.9218 2.7429

Group 2 1.4267 1.4951 2.9218 2.7429




(Note 2)

Amount accumulated

28/02/19

Amount accumulated

28/02/18

Group 1 2.6325 - 2.6325 3.0941

Group 2 1.3629 1.2696 2.6325 3.0941

xxx xxx xxx xxx xxxMonthly Accumulation Shares - final distribution No. 44 in pence per share

Group 1 - Shares purchased on or before 31 May 2019.Group 2 - Shares purchased from 1 June 2019 to 30 June 2019.


(Note 2)

Amount accumulated

18/08/19

Amount accumulated

18/08/18

Group 1 2.2555 - 2.2555 2.0113

Group 2 0.4905 1.7650 2.2555 2.0113

xxx xxx xxx xxx xxx



133

Monthly Accumulation Shares - interim distributions in pence per share

For the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)

Amount accumulated

2018/2019

Amount accumulated

2017/2018

Group 1

Distribution No. 33 2.0105 - 2.0105 2.4886

Distribution No. 34 2.0506 - 2.0506 2.5420

Distribution No. 35 2.0861 - 2.0861 2.4387

Distribution No. 36 2.3019 - 2.3019 2.6357

Distribution No. 37 2.2354 - 2.2354 2.5200

Distribution No. 38 2.2609 - 2.2609 2.5812

Distribution No. 39 2.2587 - 2.2587 2.5080

Distribution No. 40 2.3585 - 2.3585 2.4235

Distribution No. 41 2.4961 - 2.4961 2.4078

Distribution No. 42 2.4688 - 2.4688 2.0088


Distribution No. 33 0.3375 1.6730 2.0105 2.4886

Distribution No. 34 0.1664 1.8842 2.0506 2.5420

Distribution No. 35 0.0016 2.0845 2.0861 2.4387

Distribution No. 36 - 2.3019 2.3019 2.6357

Distribution No. 37 0.0009 2.2345 2.2354 2.5200

Distribution No. 38 0.8999 1.3610 2.2609 2.5812

Distribution No. 39 0.0002 2.2585 2.2587 2.5080

Distribution No. 40 - 2.3585 2.3585 2.4235

Distribution No. 41 0.7208 1.7753 2.4961 2.4078

Distribution No. 42 0.5763 1.8925 2.4688 2.0088

Distribution No. 43 0.0464 2.4846 2.5310 2.1291

xxx xxx xxx xxx xxx


134


Investment Objective and PolicyThe fund’s investment objective is to achieve both capital growth and income. The fund will obtain exposure primarily to UK gilts and non-gilt fixed interest securities.

The fund may invest directly in UK gilts and non-gilt fixed interest securities or may achieve exposure indirectly through the use of derivatives. The fund may also invest in other transferable securities, money market instruments, collective investment schemes, cash and near cash and deposits. Derivatives may be used for efficient portfolio management or investment purposes and may include (but are not limited to) derivatives on currencies, interest rates, inflation and credit. The fund may also take positions which enable it to benefit from falling asset prices.

Performance and Portfolio ActivityThe fund advanced over the period, supported by its interest rate risk positioning. Specifically, the bias towards the long end of the US Treasury yield curve contributed significantly to returns. The long sterling duration position also added value. Credit selection enhanced gains, with the largest contribution to returns coming from Tesco following its ratings upgrade. We increased the beta element of the portfolio taking advantage of the attractive valuations at the start of 2019. We participated in new issues of Berkshire Hathaway and Motability Operations Group. Meanwhile, the exposure to utility names was reduced by selling positions in Iberdrola and Anglian Water Services.



30 June 2019


SRRI


1 3 4 5 6 72
















135

Accumulation Shares






Distributions (4.10) (4.26) (5.23)




Performance


Other information




Direct transaction costs 0% 0% 0%





136



Note £'000 £'000 £'000 £'000

Income


Revenue 5 13,247 14,878

Expenses 6 (2,080) (2,384)

Interest payable and similar charges 8 (1,621) (971)


Taxation 7 - -







£'000 £'000 £'000 £'000





In specie creation of shares - 27,385

xxx 2,411 xxx 46,549





Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 6,745 6,177



Total assets 646,741 598,640

Liabilities:


Creditors

Bank overdrafts (14) -







137



2 Equalisation





30/06/19 30/06/18

£'000 £'000



Gains/(losses) on forward currency contracts (2,458) 1,269




5 Revenue

30/06/19 30/06/18

£'000 £'000



Bank interest 9 2


6 Expenses

30/06/19 30/06/18







Custody fees 22 22


Audit fee 10 10


46 67




138

7 Taxation

30/06/19 30/06/18






Interest distributions (1,909) (2,305)



8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final 6,073 5,626

Interim 4,093 6,120

10,166 11,746


Deduct: Revenue received on issue of shares (1,174) (246)

Deduct: Revenue received on in specie shares - (153)


Interest/other



Swap expenses 1,161 520

Interest 4 1


1,621 971



9 Debtors

30/06/19 30/06/18

£'000 £'000




Sales of currency awaiting settlement 108 -



30/06/19 30/06/18

£'000 £'000






139

11 Other creditors

30/06/19 30/06/18

£'000 £'000





Purchases of currency awaiting settlement 108 -



Currency exposure





Euro 32,729 3 396 33,128



Norwegian Krone - 9 - 9

Swedish Krona (845) - (86) (931)


UK Pound 545,763 3,717 (4,574) 544,906

US Dollar 50,376 137 552 51,065

Total 628,417 3,961 (3,688) 628,690

30/06/18 £'000 £'000 £'000 £'000

Australian Dollar (75) 1 (21) (95)


Euro 10,464 1 347 10,812

Japanese Yen (153) - (21) (174)





UK Pound 539,383 5,373 5,032 549,788

US Dollar 32,701 96 268 33,065

Total 582,434 5,546 5,722 593,702




140





Australian Dollar - 1,893 66 1,959


Euro 1,442 33,186 447 35,075





UK Pound 12,446 537,071 5,783 555,300

US Dollar 137 52,334 680 53,151

Total 14,129 625,570 7,042 646,741

30/06/18 £'000 £'000 £'000 £'000



Euro 1 12,666 388 13,055






UK Pound 13,648 495,559 41,065 550,272

US Dollar 167 34,240 496 34,903

Total 13,903 542,637 42,100 598,640






Euro 333 - 1,614 1,947


New Zealand Dollar 964 - 65 1,029


UK Pound^ 269 - 638,815 639,084

US Dollar - - 2,086 2,086

Total 4,000 34 642,707 646,741

30/06/18 £'000 £'000 £'000 £'000



Euro 18 1,997 228 2,243




UK Pound 68 106 594,012 594,186

US Dollar 2 - 1,836 1,838

Total 385 2,103 596,152 598,640






141


Currency risk


Interest rate risk


Credit rating risk


Other price risk



The fund invests into interest rate swaps to manage interest rate exposure. A 1% percent change in interest rates would lead to a change representing 0.40% (2018: the fund held no interest rate swaps that could impact it significantly) of the fund's market value.

Bond futures

The fund invests into futures to gain exposure to the bond markets. A 1% change in interest rates would lead to a change representing 0.98% of the fund's market value (2018: the fund held no bond futures that could impact it significantly).

Leverage risk




Bond 352,309 - - - -


Total 352,309 8 -



Bond 289,506 - - - -



Total 293,402 9 -




Bond 242,498 - - - -


Total 242,498 8 -



Bond 196,427 - - - -



Total 199,789 8 -






142


30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000





636,021 (7,604) 586,917 (4,483)





16 Related parties



30/06/19


£'000 £'000 £'000 £'000 £'000

BNP Paribas (28) - - - (28)


HSBC Global Markets - - 202 - 202

Lloyd's - - 131 - 131


Royal Bank of Canada (1,238) - - - (1,238)

Societe Generale (1,356) - - - (1,356)

UBS - (682) - - (682)

Total (2,622) (682) 834 - (2,470)30/06/18


£'000 £'000 £'000 £'000 £'000

Bank of America (1,026) - - - (1,026)



HSBC Global Markets 30 - (39) - (9)

Morgan Stanley - - (1,750) - (1,750)


UBS - (72) - - (72)

Total (1,068) (72) (1,858) - (2,998)









143





(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 2.1337 - 2.1337 1.9730

Group 2 0.9509 1.1828 2.1337 1.9730




(Note 2)

Amount accumulated

28/02/19

Amount accumulated

28/02/18

Group 1 1.9685 - 1.9685 2.2911

Group 2 0.9720 0.9965 1.9685 2.2911

xxx xxx xxx xxx xxx


144


Investment Objective and PolicyThe fund’s investment objective is to achieve both capital growth and income. The fund will obtain exposure primarily to non-gilt fixed interest securities.


Performance and Portfolio ActivityThe fund advanced over the period, supported by its interest rate risk positioning. Specifically, the bias towards the long end of the US Treasury yield curve contributed significantly to returns. The long sterling duration position also added value. Credit selection enhanced gains, with the largest contribution to returns coming from Tesco following its ratings upgrade. We increased the beta element of the portfolio taking advantage of the attractive valuations at the start of 2019. We participated in new issues of Berkshire Hathaway and Motability Operations Group. Meanwhile, the exposure to utility names was reduced by selling positions in Thames Water Utilities and Anglian Water Services.



30 June 2019


SRRI


Income Shares 3

1 3 4 5 6 72
















145







Distributions (3.17) (3.29) (4.07) (6.45) (6.52) (7.84)




Performance


Other information









146



Note £'000 £'000 £'000 £'000

Income


Revenue 5 12,656 14,502

Expenses 6 (1,644) (1,987)

Interest payable and similar charges 8 (1,626) (834)


Taxation 7 - -







£'000 £'000 £'000 £'000






xxx (77,736) xxx (96,989)





Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 4,612 5,778



Total assets 368,051 422,542

Liabilities:


Creditors

Distribution payable (2,570) (2,942)







147



2 Equalisation





30/06/19 30/06/18

£'000 £'000


Gains/(losses) on derivative contracts (1,001) (639)

Gains/(losses) on forward currency contracts (1,881) 241




5 Revenue

30/06/19 30/06/18

£'000 £'000



Bank interest 5 2


6 Expenses

30/06/19 30/06/18







Custody fees 26 23


Audit fee 10 10


42 65




148

7 Taxation

30/06/19 30/06/18









8 Finance costs

30/06/19 30/06/18

£'000 £'000


Income Shares

Final 2,570 2,942

Interim 2,385 1,741

Accumulation Shares

Final 1,814 2,008

Interim 1,955 3,113

Gross paying Income Shares

Interim - 1,303

8,724 11,107

Add: Revenue deducted on cancellation of shares 358 1,023


Add: Revenue deducted on in specie shares 517 92


Interest/other



Swap expenses 1,205 455

Interest 2 1


1,626 834



9 Debtors

30/06/19 30/06/18

£'000 £'000







149


30/06/19 30/06/18

£'000 £'000




11 Other creditors

30/06/19 30/06/18

£'000 £'000







Currency exposure




Euro 23,692 1 272 23,965




Swedish Krona (673) - (76) (749)


UK Pound 290,262 5,201 (4,696) 290,767

US Dollar 36,698 43 540 37,281

Total 350,394 5,418 (3,941) 351,871

30/06/18 £'000 £'000 £'000 £'000

Australian Dollar (36) - (10) (46)


Euro 7,317 1 210 7,528

Japanese Yen (72) - (10) (82)





UK Pound 375,920 2,937 1,934 380,791

US Dollar 26,811 24 240 27,075

Total 409,990 3,005 2,415 415,410




150





Australian Dollar 23 1,170 23 1,216

Euro 968 26,224 355 27,547





UK Pound 11,814 268,537 18,910 299,261

US Dollar 43 38,345 552 38,940

Total 12,998 335,157 19,896 368,051

30/06/18 £'000 £'000 £'000 £'000



Euro 1 9,088 238 9,327






UK Pound 10,068 357,972 16,246 384,286

US Dollar 614 27,273 850 28,737

Total 10,731 394,410 17,401 422,542






Euro 260 2,023 1,299 3,582




Swiss Franc 11 - - 11

UK Pound^ 124 - 360,241 360,365

US Dollar - - 1,659 1,659

Total 2,676 2,040 363,335 368,051

30/06/18 £'000 £'000 £'000 £'000



Euro 7 1,598 194 1,799




UK Pound 42 233 418,630 418,905

US Dollar 1 - 1,661 1,662

Total 191 1,831 420,520 422,542





Currency risk




151

Interest rate risk


Credit rating risk


Other price risk


Futures exposure




Credit default swaps exposure

The fund invests into credit default swaps during the year selling protection in return for a premium greater than the credit spread of the underlying bonds, and buying protection against the credit risk of the underlying bonds. A 2% change in credit spreads would lead to a change representing 0.51% (2018: 0.37%) of the fund's market value.

Leverage risk




Bond 186,821 - - - -


Total 186,821 6 -



Bond 204,615 - - - -


In-specie 51,930 - - - -


Total 260,227 7 -




Bond 292,149 - - - -


Total 292,149 7 -



Bond 348,001 - - - -


In-specie 13,471 - - - -


Total 365,272 7 -





152



30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000




Level 3: Unobservable data* - - 1 -

358,021 (7,627) 413,759 (3,769)





Income Shares 192,382,768 28,321,437 (65,385,368) 155,318,837


16 Related parties



30/06/19


£'000 £'000 £'000 £'000 £'000

BNP Paribas (16) - - - (16)



Morgan Stanley - - (1,769) - (1,769)



Societe Generale (1,008) - - - (1,008)

UBS - (661) - - (661)

Total (1,983) (661) (1,263) - (3,907)



153

30/06/18


£'000 £'000 £'000 £'000 £'000

Bank of America (949) - - - (949)




JP Morgan - - (11) - (11)

Morgan Stanley 51 - (1,317) - (1,266)


UBS - (301) - - (301)

Total (861) (301) (942) - (2,104)






Income Shares 132.12 136.09 3.00




154





(Note 2)

Amount distributed

31/08/19

Amount distributed

31/08/18

Group 1 1.6547 - 1.6547 1.5291

Group 2 0.8296 0.8251 1.6547 1.5291




(Note 2)

Amount distributed

28/02/19

Amount distributed

28/02/18

Group 1 1.5154 - 1.5154 1.7577

Group 2 0.9682 0.5472 1.5154 1.7577




(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 3.3864 - 3.3864 3.0560

Group 2 1.6684 1.7180 3.3864 3.0560




(Note 2)

Amount accumulated

28/02/19

Amount accumulated

28/02/18

Group 1 3.0649 - 3.0649 3.4661

Group 2 1.6561 1.4088 3.0649 3.4661

xxx xxx xxx xxx xxx

UK Fund

155


Investment Objective and PolicyThe fund’s investment objective is to achieve long term capital appreciation. The fund will invest primarily in the shares of companies in the United Kingdom. There is no policy to restrict investment to particular economic sectors.

Performance and Portfolio ActivityThe fund delivered negative returns, primarily due to holdings in the telecommunications and consumer services sectors. At a stock level, shares in Vodafone Group and fashion company ASOS declined over the period. On a positive note, the allocation to beverage company Diageo and pharmaceuticals firm AstraZeneca added notable value. Over the period, positions were purchased in InterContinental Hotels Group and pharmaceuticals firm Roche Holdings. Meanwhile, shares in Aviva and Barclays were sold.

OutlookThe economic environment in the UK remains uncertain given the its ongoing negotiations to exit the European Union and a challenging external backdrop. This has negatively impacted UK asset prices and presents an opportunity for long-term investors.

Nick Peters & Ayesha AkbarFund Managers

30 June 2019


SRRI


1 3 4 5 6 72












UK Fund

156

Accumulation Shares



Return before operating charges* (5.48) 22.58 69.23


Return after operating charges* (9.17) 18.82 65.76

Distributions (11.74) (9.50) (9.02)




Performance

Return after charges (2.1%) 4.5% 18.5%

Other information








UK Fund

157



Note £'000 £'000 £'000 £'000

Income


Revenue 5 10,961 11,269

Expenses 6 (2,568) (3,061)

Interest payable and similar charges 8 (1) -


Taxation 7 (121) (120)


Total return before distributions (9,422) 15,107





Note £'000 £'000 £'000 £'000





xxx (51,818) xxx (81,399)





Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,662 2,996



Total assets 267,058 330,932







UK Fund

158



2 Equalisation





30/06/19 30/06/18

£'000 £'000


Gains/(losses) on derivative contracts - 8





5 Revenue

30/06/19 30/06/18

£'000 £'000

UK dividend distributions 58 51

Overseas dividend distributions - 7


ACD fee rebate/waiver to income 211 240

UK dividends 8,990 8,967

UK property income distributions 143 211

UK scrip dividends 105 129


Overseas scrip dividends - 269

Bank interest 25 6

Underwriting commission 3 1


6 Expenses

30/06/19 30/06/18







Custody fees 6 7


Audit fee 8 8


28 54



UK Fund

159

7 Taxation

30/06/19 30/06/18












8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final 7,254 7,091



Net distribution for the year 8,166 7,690

Interest/other

Interest 1 -





UK scrip dividends (105) (129)


8,166 7,690


9 Debtors

30/06/19 30/06/18

£'000 £'000




ACD fee rebate/waiver recoverable 15 20

UK income tax recoverable 21 19




UK Fund

160

10 Other creditors

30/06/19 30/06/18

£'000 £'000







Currency exposure



Danish Krone 2,209 - 16 2,225

Euro 1,611 137 - 1,748

Swiss Franc 2,310 - - 2,310

UK Pound 245,459 3,468 1,006 249,933

US Dollar 6,432 3,770 (94) 10,108

Total 258,021 7,375 928 266,324

30/06/18 £'000 £'000 £'000 £'000

Danish Krone 2,527 - 9 2,536

Euro 942 171 - 1,113

UK Pound 315,950 6,584 (54) 322,480

US Dollar 1,700 62 461 2,223

Total 321,119 6,817 416 328,352







Currency risk


Other price risk


Equity derivatives

At the year end, the fund holds no derivatives that could impact it significantly (2018: same).


UK Fund

161



Equity 179,237 76 0.04 717 0.40

Mutual Fund 3,440 - 0.01 2 0.07


Total 183,614 76 719



Equity 220,911 96 0.04 2 -

Mutual Fund 7,327 - - - -


Total 229,344 96 2




Equity 209,047 116 0.06 881 0.42

Mutual Fund 3,878 - - 1 0.02


Total 213,825 116 882



Equity 255,212 134 0.05 3 -

Mutual Fund 13,290 - - - -


Total 270,407 134 3





30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000





258,021 - 321,119 -


UK Fund

162






15 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 10.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £184,000 (2018: £234,000) are included within accrued expenses in Note 10.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5 and amounts receivable at the year end are included within the ACD fee rebate/waiver recoverable in note 9.








UK Fund

163





(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 11.7351 - 11.7351 9.5030

Group 2 6.2544 5.4807 11.7351 9.5030

xxx xxx xxx xxx xxx

UK Gilt Fund

164


Investment Objective and PolicyThe fund’s investment objective is to achieve both capital growth and income. The fund will obtain exposure primarily to UK gilts.


Performance and Portfolio ActivityThe fund advanced over the period, primarily driven by coupon income and favourable selection in corporate bonds. Holdings in Lloyds Banking Group, BHP Billiton and Society of Lloyds were the top contributors to performance. The interest rate risk positioning, specifically the short sterling duration position weighed on returns. We increased the beta element of the portfolio taking advantage of the attractive valuations at the start of 2019. We participated in new issues of Berkshire Hathaway and Motability Operations Group. Meanwhile, the exposure to UK government bonds (Gilts) was reduced.

OutlookMuted business investment, coupled with ebbing momentum in key trading partners, will restrain the UK economy. While Gilts will remain heavily influenced by other rate markets, we maintain an underweight stance in the asset class given its expensive valuations. We maintain a cautious position in credit due to the lack of clear growth drivers and the build-up of various headwinds such as deteriorating credit fundamentals.


30 June 2019


SRRI


Income Shares 4

1 3 4 5 6 72















UK Gilt Fund

165







Distributions (1.91) (2.04) (2.39) (3.20) (3.37) (3.88)



*after direct transaction costs of - - 0.01 - - 0.01

Performance


Other information








UK Gilt Fund

166



Note £'000 £'000 £'000 £'000

Income


Revenue 5 1,578 3,971

Expenses 6 (259) (661)



Taxation 7 - -







£'000 £'000 £'000 £'000






xxx (132,697) xxx (22,743)



Retained distribution on accumulation shares 193 1,896


Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 662 1,721




Liabilities:

Investment liabilities (698) (1,173)

Creditors

Bank overdrafts - (278)







UK Gilt Fund

167



2 Equalisation





30/06/19 30/06/18

£'000 £'000

Gains/(losses) on non-derivative securities 1,603 115






5 Revenue

30/06/19 30/06/18

£'000 £'000



Bank interest 2 1


6 Expenses

30/06/19 30/06/18







Custody fees 2 6


Audit fee 10 10


23 32



UK Gilt Fund

168

7 Taxation

30/06/19 30/06/18









8 Finance costs

30/06/19 30/06/18

£'000 £'000


Income Shares

Final 305 444

Interim 294 536

Accumulation Shares

Final 93 879

Interim 100 1,017

792 2,876





Interest/other




Interest 1 -


310 322



9 Debtors

30/06/19 30/06/18

£'000 £'000



Accrued revenue 585 1,699



30/06/19 30/06/18

£'000 £'000





UK Gilt Fund

169

11 Other creditors

30/06/19 30/06/18

£'000 £'000

Amounts payable for cancellation of shares 6 -






Currency exposure





Euro 783 1 - 784

Japanese Yen 2 14 - 16


Swedish Krona (102) - (12) (114)


UK Pound 53,412 944 (470) 53,886

US Dollar 2,193 13 24 2,230

Total 56,337 1,003 (449) 56,891

30/06/18 £'000 £'000 £'000 £'000



Euro (61) - 40 (21)

Japanese Yen (55) - (8) (63)




UK Pound 182,796 460 1,069 184,325

US Dollar 3,450 60 5 3,515

Total 186,141 549 1,138 187,828








Euro 158 694 6 858

Japanese Yen 14 5 - 19



UK Pound 3,488 50,891 621 55,000

US Dollar 13 2,274 41 2,328

Total 3,709 54,305 686 58,700


UK Gilt Fund

170

30/06/18 £'000 £'000 £'000 £'000



Euro - 682 63 745





UK Pound 3,558 179,926 1,696 185,180

US Dollar 86 3,612 98 3,796

Total 3,677 184,278 1,907 189,862






Euro 34 - 40 74




Swiss Franc^ 38 - 2 40

UK Pound 23 5 57,977 58,005

US Dollar - - 98 98

Total 555 8 58,137 58,700

30/06/18 £'000 £'000 £'000 £'000



Euro 4 719 43 766




UK Pound 302 22 188,359 188,683

US Dollar 1 - 280 281

Total 412 741 188,709 189,862





Currency risk


Interest rate risk


Credit rating risk


Other price risk




Bond futures

At the year end the fund holds no derivatives that could impact it significantly (2018: same).


UK Gilt Fund

171

Leverage risk




Bond 26,202 - - - -


Total 26,202 1 -



Bond 157,365 - - - -



Total 157,479 1 -




Bond 68,092 - - - -


Total 68,092 2 -



Bond 69,641 - - - -

In-specie 13,826 - - - -


Total 83,467 2 -





30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000



Level 2: Observable market data 14,791 (646) 23,602 (1,038)


57,035 (698) 187,314 (1,173)




Income Shares 45,927,217 4,245,179 (19,442,902) 30,729,494



UK Gilt Fund

172

16 Related parties



30/06/19


£'000 £'000 £'000 £'000 £'000


Citibank 2 - - - 2

JP Morgan (27) - - - (27)




UBS - (35) - - (35)

Total (83) (35) 25 - (93)30/06/18


£'000 £'000 £'000 £'000 £'000

Bank of America (163) - - - (163)




Royal Bank of Canada 39 - - - 39

Societe Generale 3 - - - 3

UBS - (14) - - (14)

Total (98) (14) (468) - (580)






Income Shares 141.50 147.80 4.45



UK Gilt Fund

173





(Note 2)

Amount distributed

31/08/19

Amount distributed

31/08/18

Group 1 0.9911 - 0.9911 0.9668

Group 2 0.3380 0.6531 0.9911 0.9668




(Note 2)

Amount distributed

28/02/19

Amount distributed

28/02/18

Group 1 0.9151 - 0.9151 1.0747

Group 2 0.5685 0.3466 0.9151 1.0747




(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 1.6680 - 1.6680 1.6048

Group 2 0.3950 1.2730 1.6680 1.6048




(Note 2)

Amount accumulated

28/02/19

Amount accumulated

28/02/18

Group 1 1.5298 - 1.5298 1.7700

Group 2 0.9330 0.5968 1.5298 1.7700

xxx xxx xxx xxx xxx


174


Investment Objective and PolicyThe fund’s investment objective is to achieve both capital growth and income. The fund will obtain exposure primarily to non-gilt fixed interest securities.

The fund may invest directly in non-gilt fixed interest securities, at least half of which will have a remaining maturity of at least 10 years. The fund may achieve exposure indirectly through the use of derivatives. The fund may also invest in other transferable securities, money market instruments, collective investment schemes, cash and near cash and deposits. Derivatives may be used for efficient portfolio management and investment purposes and may include (but are not limited to) derivatives on exchange rates, interest rates, inflation and credit. The fund may also take positions which enable it to benefit from falling asset prices.

Performance and Portfolio ActivityThe fund advanced over the period, supported by its interest rate risk positioning. Specifically, the bias towards the long end of the US Treasury yield curve contributed significantly to returns. The long sterling duration position also added value. Credit selection enhanced gains, with the largest contribution to returns coming from Tesco following its ratings upgrade. We increased the beta element of the portfolio taking advantage of the attractive valuations at the start of 2019. We participated in new issues of Berkshire Hathaway and Motability Operations Group. Meanwhile, the exposure to utility names was reduced by selling positions in Severn Trent and Anglian Water Services.



30 June 2019


SRRI


Income Shares 4

1 3 4 5 6 72
















175







Distributions (4.44) (4.29) (4.91) (8.90) (8.36) (9.28)




Performance


Other information









176



Note £'000 £'000 £'000 £'000

Income


Revenue 5 20,687 16,997

Expenses 6 (2,491) (2,139)



Taxation 7 - -



Distributions 8 (17,281) (13,958)




£'000 £'000 £'000 £'000





xxx 25,788 xxx 66,275





Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 8,726 7,093



Total assets 632,029 535,959

Liabilities:


Creditors








177



2 Equalisation





30/06/19 30/06/18

£'000 £'000


Gains/(losses) on derivative contracts 998 (276)

Gains/(losses) on forward currency contracts (3,793) 1,089




5 Revenue

30/06/19 30/06/18

£'000 £'000



Bank interest 8 3


6 Expenses

30/06/19 30/06/18







Custody fees 39 24


Audit fee 10 10


38 64




178

7 Taxation

30/06/19 30/06/18









8 Finance costs

30/06/19 30/06/18

£'000 £'000


Income Shares

Final 192 239

Interim 236 133

Accumulation Shares

Final 8,515 7,029

Interim 8,394 6,990

Income Shares

Interim - 213

17,337 14,604


Deduct: Revenue received on issue of shares (630) (1,301)


Interest/other




Interest 3 2


915 900



9 Debtors

30/06/19 30/06/18

£'000 £'000







179


30/06/19 30/06/18

£'000 £'000




11 Other creditors

30/06/19 30/06/18

£'000 £'000







Currency exposure





Euro 56,490 62 708 57,260



Swedish Krona (1,098) - (115) (1,213)


UK Pound 477,745 6,760 (3,588) 480,917

US Dollar 73,378 55 1,088 74,521

Total 606,999 6,918 (1,904) 612,013

30/06/18 £'000 £'000 £'000 £'000



Euro 21,497 1 519 22,017

Japanese Yen (88) - (12) (100)




UK Pound 458,069 4,846 5,293 468,208

US Dollar 40,476 70 524 41,070

Total 519,976 4,958 6,376 531,310




180





Australian Dollar - 272 4 276


Euro 1,816 58,116 903 60,835

Japanese Yen - 54 2 56



UK Pound 8,513 475,284 7,749 491,546

US Dollar 55 76,752 1,255 78,062

Total 10,425 611,620 9,984 632,029

30/06/18 £'000 £'000 £'000 £'000



Euro 1 21,998 522 22,521





UK Pound 5,352 448,131 15,532 469,015

US Dollar 110 43,126 965 44,201

Total 5,509 513,351 17,099 535,959





Euro 278 - 3,297 3,575


New Zealand Dollar 954 - 74 1,028

Swedish Krona 1,098 - 115 1,213

Swiss Franc 1 - - 1

UK Pound^ 202 - 622,440 622,642

US Dollar - - 3,541 3,541

Total 2,533 29 629,467 632,029

30/06/18 £'000 £'000 £'000 £'000



Euro 10 - 494 504




UK Pound 59 93 531,965 532,117

US Dollar 2 - 3,129 3,131

Total 238 93 535,628 535,959






181


Currency risk


Interest rate risk


Credit rating risk


Other price risk


Futures exposure



Bond futures


Leverage risk




Bond 325,587 - - - -


Total 325,587 13 -



Bond 263,677 - - - -



Total 266,820 12 -




Bond 236,513 - - - -


Total 236,513 8 -



Bond 149,934 - - - -



Total 157,784 9 -





182



30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000


Level 1: Quoted prices 23,775 (2,083) 123,092 (2,083)



616,385 (9,386) 523,908 (3,932)





Income Shares 11,552,259 1,777,216 (4,961,047) 8,368,428


16 Related parties



30/06/19


£'000 £'000 £'000 £'000 £'000

BNP Paribas (38) - - - (38)

Citibank (2,624) - - - (2,624)

HSBC Global Markets (1,955) - - - (1,955)

JP Morgan 8 - - - 8

Morgan Stanley - - 2,482 - 2,482


Societe Generale 86 - - - 86

UBS - (1,032) - - (1,032)

Total (4,536) (1,032) 2,482 - (3,086)



183

30/06/18


£'000 £'000 £'000 £'000 £'000

Bank of America (1,304) - - - (1,304)

Barclays - - 23 - 23

Citibank (23) - - - (23)


HSBC Global Markets 73 - (18) - 55

JP Morgan - - (74) - (74)

Merrill Lynch - - 20 - 20

Morgan Stanley 3 - 249 - 252



UBS - (1,217) - - (1,217)

Total (1,407) (1,217) 555 - (2,069)






Income Shares 158.73 167.50 5.53




184





(Note 2)

Amount distributed

31/08/19

Amount distributed

31/08/18

Group 1 2.2904 - 2.2904 2.0703

Group 2 1.0465 1.2439 2.2904 2.0703




(Note 2)

Amount distributed

28/02/19

Amount distributed

28/02/18

Group 1 2.1461 - 2.1461 2.2196

Group 2 1.1657 0.9804 2.1461 2.2196




(Note 2)

Amount accumulated

31/08/19

Amount accumulated

31/08/18

Group 1 4.6263 - 4.6263 4.0658

Group 2 2.7213 1.9050 4.6263 4.0658




(Note 2)

Amount accumulated

28/02/19

Amount accumulated

28/02/18

Group 1 4.2732 - 4.2732 4.2967

Group 2 2.1681 2.1051 4.2732 4.2967

xxx xxx xxx xxx xxx

Pan European Fund

185



Note £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 4 2,026 70

Revenue 5 342 4,413

Expenses 6 (143) (1,210)



Taxation 7 (7) (402)

Net revenue/(expense) after taxation xxx 190 xxx 2,794


Distributions 8 (190) (2,602)

Change in net assets attributable to shareholders from investment activities 2,026 262



Note £'000 £'000 £'000 £'000

Opening net assets attributable to shareholders* 126,014 153,109


Amounts receivable on issue of shares 5,192 967


In specie cancellation of shares (94,454) -

xxx (128,044) xxx (29,878)


Change in net assets attributable to shareholders from investment activities (see above) 2,026 262

Retained distribution on accumulation shares 8 - 2,502

Closing net assets attributable to shareholders 46 126,014

Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets

Investments - 124,122

Current assets:

Debtors 9 205 1,097



Total assets 346 129,762

Liabilities:


Creditors




Net assets attributable to shareholders 46 126,014

*This fund closed on 14 November 2018.


Pan European Fund

186



2 Equalisation





30/06/19 30/06/18

£'000 £'000

Compensation payments (80) -

Gains/(losses) on non-derivative securities 2,155 64





Net capital gains/(losses) 2,026 70

5 Revenue

30/06/19 30/06/18

£'000 £'000

UK dividend distributions 2 7

Overseas dividend distributions - 5

Interest on securities - 2


UK dividends 162 1,157

UK property income distributions - 3

UK scrip dividends - 20

Overseas dividends 150 3,038


Bank interest - 1

Total revenue 342 4,413

6 Expenses

30/06/19 30/06/18


Investment management fees 130 1,079



141 1,152Payable to the Depositary, associates of the Depositary, and agents of either of them:


Custody fees 1 11

3 27Other expenses:

Audit fee - 8

Other operating expenses (1) 23

(1) 31

Total expenses 143 1,210


Pan European Fund

187

7 Taxation

30/06/19 30/06/18








Overseas tax expensed - (1)





8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final - 2,502


Deduct: Revenue received on issue of shares - (2)


Net distribution for the year 190 2,602

Interest/other

Interest 2 7

Total finance costs 192 2,609


Net revenue after taxation for the year, per the Statement of Total Return 190 2,794


UK scrip dividends - (20)


190 2,602

9 Debtors

30/06/19 30/06/18

£'000 £'000


Accrued revenue - 301




Pan European Fund

188


30/06/19 30/06/18

£'000 £'000

Amounts held at futures clearing houses and brokers - 78



11 Other creditors

30/06/19 30/06/18

£'000 £'000

Amounts payable for cancellation of shares - 3,250

Purchases awaiting settlement - 364




The currency exposure of the fund was:Non-monetary exposures Monetary exposures Monetary exposures Total exposure

Currency Investments Cash balances Debtors/(Creditors)30/06/19 £'000 £'000 £'000 £'000


Euro - - 130 130

Swiss Franc - - 1 1

UK Pound - 141 (300) (159)

Total - 141 (95) 46

30/06/18 £'000 £'000 £'000 £'000



Danish Krone 3,594 2 73 3,669

Euro 68,667 2,818 340 71,825

Norwegian Krone 2,040 9 - 2,049


Swedish Krona 3,717 8 - 3,725

Swiss Franc 10,501 10 1 10,512

Turkish Lira - 1 - 1

UK Pound 34,597 1,681 (3,056) 33,222

US Dollar 774 12 5 791

Total 124,108 4,543 (2,637) 126,014







Currency risk


Other price risk


Equity derivatives



Pan European Fund

189



Equity 5,886 3 0.05 11 0.18

Total 5,886 3 11



Equity 37,107 13 0.03 - -

Bond 6 - - - -

Mutual Fund 79 - 0.07 - -


In-specie 94,596 - - - -

Total 131,803 13 -




Equity 46,535 24 0.05 84 0.18

Bond 12 - - - -

Mutual Fund 22 - 0.17 - 0.20


Total 47,044 24 84



Equity 94,334 47 0.05 1 -

Mutual Fund 198 - 0.10 - -


Total 95,209 47 1




30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000


Level 1: Quoted prices - - 123,799 (14)

Level 2: Observable market data - - 322 -

Level 3: Unobservable data - - 1 -

- - 124,122 (14)




Accumulation Shares 35,838,431 1,158,524 (36,996,955) -

16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £0 (2018: £91,000) are included within accrued expenses in Note 11.


Pan European Fund

190


The fund has no derivatives as at 30 June 2019.30/06/18


£'000 £'000 £'000 £'000 £'000

UBS - (14) - - (14)

Total - (14) - - (14)


The fund had one share class; Accumulation Shares. The annual management charge was as follows:Accumulation Shares : 0.80%

UK Investment Grade Long Credit Fund

191



Note £'000 £'000 £'000 £'000

Income


Revenue 5 1,700 1,724

Expenses 6 (248) (264)



Taxation 7 - -


Total return before distributions 3,954 (314)





£'000 £'000 £'000 £'000

Opening net assets attributable to shareholders* 62,071 56,272



Amounts payable on cancellation of shares (68,703) (457)

xxx (64,864) xxx 6,005



Retained distribution on accumulation shares - 1,505

Closing net assets attributable to shareholders 4 62,071

Balance Sheet

as at 30 June 201930/06/19 30/06/18

Note £'000 £'000 £'000 £'000

Assets

Investments - 58,759

Current assets:

Debtors 9 - 766



Total assets 17 62,408

Liabilities:


Creditors




Net assets attributable to shareholders 4 62,071

*This fund closed on 21 June 2019.



192



2 Equalisation





30/06/19 30/06/18

£'000 £'000







5 Revenue

30/06/19 30/06/18

£'000 £'000



Bank interest 2 2


6 Expenses

30/06/19 30/06/18




Foreign exchange administration fees 2 -


Depositary fees 6 7

Custody fees 4 3


Audit fee 10 10


13 16




193

7 Taxation

30/06/19 30/06/18









8 Finance costs

30/06/19 30/06/18

£'000 £'000


Accumulation Shares

Final - 1,505




Interest/other


FX Hedging Expense - 1


12 35


9 Debtors

30/06/19 30/06/18

£'000 £'000

Accrued revenue - 766

Total debtors - 766


30/06/19 30/06/18

£'000 £'000

Amounts held at futures clearing houses and brokers - 379



11 Other creditors

30/06/19 30/06/18

£'000 £'000





194


Currency exposure



UK Pound - 17 (13) 4

Total - 17 (13) 4

30/06/18 £'000 £'000 £'000 £'000

Australian Dollar 2 4 - 6


Euro 1,075 5 18 1,098

UK Pound 55,644 2,834 683 59,161

US Dollar 1,799 8 30 1,837

Total 58,457 2,883 731 62,071





UK Pound 17 - - 17

Total 17 - - 17

30/06/18 £'000 £'000 £'000 £'000



Euro 5 1,080 43 1,128

UK Pound 2,834 55,570 793 59,197

US Dollar 8 1,928 109 2,045

Total 2,883 58,578 947 62,408





UK Pound - - 17 17

Total - - 17 17

30/06/18 £'000 £'000 £'000 £'000


Euro - - 30 30

UK Pound - - 62,107 62,107

US Dollar - - 208 208

Total - - 62,408 62,408

^ Includes £4,000 in respect of the fund's liability to redeem all shares (2018: £62,071,000).




Currency risk


Interest rate risk




195

Credit rating risk


Other price risk


Futures exposure


Leverage risk




Bond 27,516 - - - -


Total 27,516 2 -



Bond 87,978 - - - -



Total 88,095 2 -




Bond 21,785 - - - -


Total 21,785 1 -



Bond 15,577 - - - -



Total 15,873 1 -




30/06/19 30/06/19 30/06/18 30/06/18

£'000 £'000 £'000 £'000


Level 1: Quoted prices - - 5,142 (193)

Level 2: Observable market data - - 53,617 (109)


- - 58,759 (302)



196




Accumulation Shares 538,067 31,973 (570,040) -

16 Related parties



The fund has no derivatives as at 30 June 2019.

30/06/18


£'000 £'000 £'000 £'000 £'000

Bank of America 4 - - - 4


Morgan Stanley 13 - - - 13


UBS - (64) - - (64)

Total (56) (64) - - (120)


The fund had one share class; Accumulation Shares. The annual management charge was as follows:Accumulation Shares : 0.35%

Portfolio Statement

America Fund

197

as at 30 June 2019

Percentage Holdings/ Market value/ of total Holdings Unrealised gain/(loss) net assets Equivalent Portfolio of investments £’000 %

Financials - (21.71%)

2,718,489 Fidelity US Quality Income UCITS ETF 14,014 7.75

26,102 Berkshire Hathaway 4,361 2.41

19,126 Willis Towers Watson 2,848 1.58

24,254 JPMorgan Chase 2,080 1.15

5,194 Fairfax Financial Holdings 2,034 1.13

54,694 Wells Fargo 1,994 1.10

48,319 Bank of New York Mellon 1,652 0.91

47,601 Morgan Stanley 1,631 0.90

12,269 The Travelers Companies 1,442 0.80

13,811 Marsh & McLennan 1,080 0.60

13,085 Northern Trust 906 0.50

5,392 Goldman Sachs Group 847 0.47

10,892 Nasdaq 825 0.46

6,822 Cboe Global Markets 570 0.32

6,795 First Republic Bank San Francisco 513 0.28

8,432 Texas Capital Bancshares 406 0.22

9,041 Loews 383 0.21

7,986 SEI Investments 348 0.19

7,754 Tradeweb Markets (A) 259 0.14

1,270 S&P Global 227 0.13

6,808 Bank of The Ozarks 158 0.09

844 Transferwise 59 0.03

805 Transferwise Pdf Perpetual 56 0.03

0 Fidelity Institutional Liquidity Fund - USD A Acc 1 0.00

38,694 21.40

Information Technology - (23.61%)

102,996 Oracle 4,609 2.55

33,038 Microsoft 3,493 1.93

62,754 Cisco Systems 2,756 1.52

41,515 Amdocs 2,018 1.12

8,468 MasterCard (A) 1,743 0.96

10,934 Apple 1,721 0.95

23,769 Qualcomm 1,413 0.78

14,079 Check Point Software Technologies 1,278 0.71

71,886 Sabre 1,268 0.70

19,232 Leidos Holdings 1,203 0.67

11,647 Total System Services 1,177 0.65

52,000 Juniper Networks 1,100 0.61

15,042 PTC 1,040 0.58

123,227 Ericsson (B) 930 0.51

29,253 Genpact 869 0.48

8,762 Worldpay (A) 851 0.47

21,803 Intel 815 0.45

10,234 NXP Semiconductors 800 0.44

3,553 FleetCor Technologies 782 0.43

10,703 Fiserv 766 0.42

58,779 Nuance Communications 734 0.41

5,592 Fidelity National Information Services 535 0.30

2,529 Global Payments 318 0.18

2,126 Visa (A) 287 0.16

Portfolio Statement

America Fund

198

as at 30 June 2019


6,953 Inphi 274 0.15

5,870 SS&C Technologies 262 0.14

8,440 Evo Payments (A) 206 0.11

2,160 CDW 188 0.10

3,154 LogMein 182 0.10

5,505 Ciena 180 0.10

5,291 CoreLogic 174 0.10

6,153 Nutanix (A) 124 0.07

833 Salesforce.com 99 0.05

6,183 SolarWinds 89 0.05

20,847 Innoviz Technology Service C + Preferred Shs 86 0.05

2,643 Talend (spons ADR) 78 0.04

2,100 Descartes Systems Group (US) 61 0.03

34,509 19.09

Health Care - (12.55%)

47,138 Abbott Laboratories 3,109 1.72

25,607 Baxter International 1,649 0.91

13,449 Johnson & Johnson 1,491 0.82

20,577 AmerisourceBergen 1,389 0.77

13,621 Alexion Pharmaceuticals 1,354 0.75

10,880 Danaher 1,217 0.67

17,308 Merck 1,144 0.63

10,175 Jazz Pharmaceuticals 1,108 0.61

4,445 Anthem 990 0.55

22,744 CVS Health 981 0.54

11,425 Quest Diagnostics 905 0.50

15,204 Gilead Sciences 803 0.44

3,363 UnitedHealth Group 653 0.36

5,510 Universal Health Services (B) 556 0.31

32,048 Mylan 479 0.26

19,807 Horizon Therapeutics 375 0.21

23,130 Heron Therapeutics 336 0.19

4,082 PRA Health Sciences 309 0.17

1,162 Lonza Group 306 0.17

13,115 Coherus BioSciences 222 0.12

9,088 Wright Medical Group 210 0.12

2,699 Incyte 180 0.10

3,925 Boston Scientific 130 0.07

3,623 Avanos Medical 125 0.07

1,746 BioMarin Pharmaceutical 116 0.06

271 Humana 57 0.03

20,194 11.17

Communication Services - (1.80%)

57,163 T-Mobile US 3,301 1.83

3,225 Alphabet (A) 2,736 1.51

15,788 Walt Disney 1,733 0.96

51,449 Comcast (A) 1,703 0.94

9,195 Facebook (A) 1,373 0.76

24,776 Verizon Communications 1,118 0.62

49,480 Liberty Global (C) 1,022 0.57

3,023 Charter Communications (A) 933 0.52

Portfolio Statement

America Fund

199

as at 30 June 2019


21,557 TripAdvisor (A) 791 0.44

17,900 Activision Blizzard 667 0.37

592 Alphabet (C) 502 0.28

7,734 Zillow Group (C) 273 0.15

16,152 8.93

Consumer Discretionary - (7.03%)

75,700 eBay 2,344 1.30

1,328 Amazon.com 1,992 1.10

18,738 Grubhub 1,125 0.62

13,189 Dollar Tree 1,124 0.62

13,965 Lowes 1,093 0.60

34,587 LKQ 716 0.40

5,671 Advance Auto Parts 678 0.38

27,129 Tapestry 663 0.37

242 NVR 635 0.35

14,369 ServiceMaster Global Holdings 595 0.33

13,290 Lennar (A) 507 0.28

9,054 KAR Auction Services 443 0.25

12,901 Frontdoor 440 0.24

159 Booking Holdings 231 0.13

12,586 6.96

Consumer Staples - (3.74%)

45,623 Colgate-Palmolive 2,594 1.43

18,531 Walmart 1,608 0.89

10,840 PepsiCo 1,125 0.62

32,166 Archer Daniels Midland 1,029 0.57

25,130 Coca-Cola 1,012 0.56

16,000 Bunge 695 0.38

28,412 Kroger 479 0.26

4,189 J.M. Smucker 386 0.21

6,442 Monster Beverage 323 0.18

3,922 Tyson Foods (A) 246 0.14

10,861 Sprouts Farmers Market 159 0.09

9,656 5.34

Energy - (3.94%)

21,177 Chevron 2,053 1.14

19,954 Valero Energy 1,319 0.73

81,527 SBM Offshore 1,234 0.68

25,302 Marathon Petroleum 1,084 0.60

28,374 Apache 640 0.35

23,491 Suncor Energy 576 0.32

4,779 Diamondback Energy 405 0.22

3,097 Pioneer Natural Resources 368 0.20

14,201 Cabot Oil & Gas 254 0.14

7,933 4.39

Materials - (4.87%)

7,281 Martin Marietta Materials 1,302 0.72

8,117 Linde 1,276 0.71

79,935 Valvoline 1,230 0.68

15,625 FMC 1,023 0.57

Portfolio Statement

America Fund

200

as at 30 June 2019


14,659 Ashland Global Holdings 909 0.50

35,890 Mosaic 690 0.38

6,317 Scotts Miracle-Gro 488 0.27

2,883 Vulcan Materials 308 0.17

7,000 Farmers Business Network 0% Preferred Perpetual 129 0.07

7,355 4.07

Industrials - (6.27%)

9,299 Honeywell International 1,274 0.70

3,838 Northrop Grumman 962 0.53

10,046 Woodward 895 0.50

105,210 General Electric 862 0.48

10,549 Jacobs Engineering Group 698 0.39

13,620 IHS Markit 677 0.37

2,147 Norfolk Southern 327 0.18

4,293 FTI Consulting 284 0.16

1,450 Huntington Ingalls Industries 256 0.14

7,441 Casella Waste Systems (A) 229 0.13

10,432 Tradeshift Holdings 144 0.08

2,157 Oshkosh 140 0.08

9,010 Welbilt 116 0.06

787 United Rentals 82 0.05

918 XPO Logistics 40 0.02

6,986 3.86

Utilities - (1.49%)

49,053 Exelon 1,839 1.02

9,607 NextEra Energy 1,549 0.86

9,705 Edison International 498 0.28

21,553 NiSource 486 0.27

4,372 2.42

Real Estate - (0.59%)

6,480 American Tower 1,051 0.58

1,727 Equinix 678 0.38

11,377 Rexford Industrial Realty 360 0.20

6,800 CyrusOne 306 0.17

8,486 Americold Realty Trust 217 0.12

2,612 1.44

Futures - ((0.21)%)

7,450 E-Mini S&P 500 Index Future 20/09/2019 224 0.12

224 0.12

Portfolio of investments 161,273 89.19

Cash and other net assets/(liabilities) 19,509 10.81

Net assets 180,782 100.00

The figures in brackets represent the sector distributions at 30 June 2018. Where securities are reclassified in the current period comparative percentages have been restated.The percentage of net assets disclosed above is subject to rounding.Unless otherwise stated, all holdings are on an official stock exchange listing or are permitted collective investment schemes.Where the holdings/holdings equivalent value is reported to be nil this is due to a fractional share position.

Portfolio Statement


201

as at 30 June 2019


China - (23.99%)

752,649 Alibaba Group Holding (ADR) 101,399 4.06

32,905,000 China Mengniu Dairy 100,465 4.03

10,290,000 ANTA Sports Products 55,668 2.23

465,271 Kweichow Moutai (A) (CN) 52,538 2.11

21,403,000 Zhongsheng Group Holdings 46,877 1.88

10,036,658 Inner Mongolia Yili Industrial Group (A) (CN) 38,469 1.54

6,130,334 Midea Group (A) (CN) 36,476 1.46

3,867,931 Midea Group (A) 23,015 0.92

5,407,130 Inner Mongolia Yili Industrial Group (A) (CN) 15/05/2020 (ELN) 20,725 0.83

13,596,000 CSPC Pharmaceutical Group 17,263 0.69

4,079,380 Inner Mongolia Yili Industrial Group (A) 15,636 0.63

5,465,200 Sinopharm Group (H) 15,169 0.61

4,282,540 China Resource Sanjiu Medical & Pharmaceutical (A) (CN) 14,419 0.58

1,974,200 BOC Aviation 13,052 0.52

1,072,800 Shenzhou International Group Holdings 11,597 0.46

1,168,836 China Resource Sanjiu Medical & Pharmaceutical (A) 3,935 0.16

1,100,845 China Resource Sanjiu Medical & Pharmaceutical (A) (CN) 23/11/2021 (ELN) 3,706 0.15

570,409 22.86

India - (9.94%)

4,749,528 HDFC Bank 132,246 5.30

3,458,621 Housing Development Finance 86,480 3.47

3,836,548 Infosys 32,013 1.28

3,509,001 Infosys (ADR) 29,372 1.18

4,566,376 HDFC Life Insurance 24,198 0.97

1,364,957 ICICI Lombard General Insurance 17,253 0.69

602,716 MakeMy Trip (A) 11,881 0.48

644,308 Godrej Consumer Products 4,871 0.20

338,314 13.56

Hong Kong - (8.88%)

21,922,800 AIA Group 186,310 7.47

5,161,500 Techtronic Industries 30,997 1.24

9,298,834 Samsonite International 16,800 0.67

19,433,500 WH Group 15,535 0.62

249,642 10.00

Russia - (8.69%)

30,289,938 Sberbank Russia (USD) 90,805 3.64

25,341,277 Sberbank of Russia Preferred 65,391 2.62

1,722,890 PhosAgro (GDR) 18,088 0.72

785,106 Mail.Ru Group (GDR) 15,483 0.62

733,557 Novolipetsk Steel (GDR) 14,732 0.59

200,814 PJSC LUKOIL (USD) 13,488 0.54

2,148,189 Gazprom (ADR) 12,513 0.50

4,266,461 Gazprom O A O (USD) 12,511 0.50

22,858 PJSC LUKOIL (ADR) 1,534 0.06

244,545 9.80

Portfolio Statement


202

as at 30 June 2019


South Africa - (10.40%)

998,952 Naspers (N) 188,873 7.57

1,764,035 Absa Group 17,259 0.69

1,519,525 Discovery 12,625 0.51

10,591,886 Pepkor Holdings 10,505 0.42

229,262 9.19

United States - (6.68%)

7,365 Fidelity Institutional Liquidity Fund - USD A Acc 103,764 4.16

628,705 Copa Holdings (A) 47,819 1.92

535,267 Cognizant Technology Solutions (A) 26,600 1.07

178,183 7.14

Taiwan - (6.53%)

17,604,514 Taiwan Semiconductor Manufacturing 106,547 4.27

13,094,720 Chailease Holding 42,700 1.71

2,789,000 Catcher Technology 15,747 0.63

164,887 Taiwan Semiconductor Manufacturing (ADR) 5,141 0.21

170,135 6.82

Korea - (8.04%)

1,157,631 SK Hynix 54,841 2.20

1,048,941 KB Financial Group 32,794 1.31

396,033 Samsung Electronics 12,692 0.51

100,327 4.02

Indonesia - (2.04%)

51,417,900 Bank Central Asia 85,915 3.44

85,915 3.44

Brazil - (2.01%)

6,240,900 Rumo 26,272 1.05

2,412,500 Localiza Rent A CAR 20,033 0.80

1,874,083 Suzano 13,013 0.52

1,031,600 Vale 11,006 0.44

3,283,978 Itausa Investimentos Itau 8,769 0.35

888,401 Itau Unibanco Holding 6,635 0.27

85,728 3.44

Mexico - (2.19%)

9,651,791 Grupo Financiero Banorte 44,280 1.77

18,092,475 Grupo Mexico 37,263 1.49

81,543 3.27

United Kingdom - (3.39%)

2,644,524 EVRAZ 17,306 0.69

414,915 Wizz Air Holdings 14,028 0.56

3,335 Vivo Energy 4 0.00

31,338 1.25

Germany - (0.69%)

113,134 adidas 27,501 1.10

27,501 1.10

Portfolio Statement


203

as at 30 June 2019


Peru - (0.61%)

89,923 Credicorp 16,372 0.66

16,372 0.66

Argentina - (0.00%)

292,966 Banco Macro (B) (ADR) 16,311 0.65

16,311 0.65

Cyprus - (0.56%)

993,581 TCS Group Holding (A) (GDR) 15,255 0.61

15,255 0.61

United Arab Emirates - (1.35%)

7,558,065 Abu Dhabi Commercial Bank 13,461 0.54

13,461 0.54

Nigeria - (0.59%)

151,306,868 Zenith Bank 6,576 0.26

1,429,788 Guaranty Trust Bank (GDR) 4,643 0.19

11,219 0.45

Cayman Islands - (0.10%)

319,386 Noah Holdings (ADR) 10,621 0.43

10,621 0.43

Thailand - (0.00%)

3,956,000 CP All Public (F) 8,718 0.35

8,718 0.35

Contracts for Difference - (0.01%)

53,029 Credicorp (CFD) 583 0.02

40,094 Credicorp (CFD) 83 0.00

666 0.03

Turkey - (1.11%)

6,230 Koytas Tekstil Sanayi Ve Ticaret 0 0.00

0 0.00

Portfolio of investments 2,485,465 99.61


Net assets 2,495,682 100.00


Portfolio Statement

Europe (ex-UK) Fund

204

as at 30 June 2019


France - (33.28%)

14,294 LVMH Moet Hennessy 4,752 3.80

42,906 EssilorLuxottica 4,415 3.53

17,305 LOreal 3,852 3.08

29,609 Safran 3,397 2.71

48,207 Sanofi 3,279 2.62

40,216 Vinci SA 3,249 2.59

23,728 Dassault Systemes 2,996 2.39

27,969 Iliad Group 2,437 1.95

95,062 Valeo 2,415 1.93

30,876 ICADE 2,188 1.75

98,699 Neoen 1,895 1.51

191,070 Beneteau 1,642 1.31

40,306 Edenred 1,614 1.29

27,504 Worldline 1,571 1.25

73,432 SRP Groupe 88 0.07

39,790 31.78

Germany - (23.67%)

54,048 SAP 5,798 4.63

29,425 Allianz SE 5,542 4.43

40,634 Deutsche Boerse 4,535 3.62

16,903 adidas 4,109 3.28

43,438 Symrise 3,310 2.64

62,647 QIAGEN 2,001 1.60

73,722 Deutsche Post 1,892 1.51

10,954 Linde (DE) 1,721 1.37

32,345 VARTA 1,555 1.24

49,927 Dermapharm Holding SE 1,364 1.09

31,827 25.42

Switzerland - (12.42%)

99,875 Nestle 8,136 6.50

27,688 Roche Holdings 6,100 4.87

10,283 Lonza Group 2,705 2.16

13,526 Sonova Holding 2,414 1.93

63,006 Aluflexpack 1,176 0.94

20,531 16.40

Spain - (5.85%)

40,210 Amadeus IT Group (A) 2,517 2.01

109,365 Grifols (A) 2,515 2.01

124,205 Red Electrica 2,061 1.65

322,082 Solaria Energia Y Medio Ambiente 1,431 1.14

8,524 6.81

Netherlands - (8.79%)

281,745 ING Groep 2,577 2.06

1,032,637 KPN 2,507 2.00

145,647 ABN AMRO Group 2,457 1.96

73,835 Wessanen 752 0.60

8,293 6.62

Portfolio Statement

Europe (ex-UK) Fund

205

as at 30 June 2019



131,271 RELX (NL) 2,513 2.01

95,913 Royal Dutch Shell (A) (NL) 2,475 1.98

4,988 3.98

Belgium - (2.63%)

47,812 Anheuser-Busch InBev 3,317 2.65

3,317 2.65

Italy - (3.01%)

172,169 Nexi 1,408 1.12

533,000 Prada 1,299 1.04

2,707 2.16

Norway - (1.90%)

172,197 DNB ASA 2,520 2.01

2,520 2.01

Finland - (1.76%)

118,520 Wartsila 1,356 1.08

1,356 1.08

Ireland - (1.48%)

1 Fidelity Institutional Liquidity Fund - Euro A Acc 16 0.01

16 0.01



Net assets 125,211 100.00


Portfolio Statement

Global Focus Fund

206

as at 30 June 2019



21,165 Microsoft 2,238 2.72

157 Fidelity Institutional Liquidity Fund - USD A Acc 2,205 2.68

2,041 Alphabet (A) 1,732 2.11

11,305 Visa (A) 1,524 1.85

21,025 Merck 1,389 1.69



37,115 Boston Scientific 1,227 1.49

27,433 Oracle 1,227 1.49

4,246 Illumina 1,192 1.45

29,577 Coca-Cola 1,191 1.45

6,607 SBA Communications (A) 1,170 1.42

10,629 Walt Disney 1,167 1.42

7,060 Norfolk Southern 1,076 1.31

11,787 American Water Works 1,071 1.30

29,181 Wells Fargo 1,064 1.29

3,309 Charter Communications (A) 1,021 1.24

17,295 Colgate-Palmolive 983 1.20

13,815 Valero Energy 913 1.11

28,293 eBay 876 1.07

16,253 Booz Allen Hamilton Holding C (A) 848 1.03


5,381 CME Group (A) 822 1.00

19,149 Voya Financial 819 1.00

15,907 Hess 806 0.98

8,593 KLA 797 0.97

21,211 TripAdvisor (A) 779 0.95


4,568 Workday (A) 742 0.90

11,501 Leidos Holdings 720 0.88

1,142 Texas Pacific Land Trust 708 0.86

5,637 Advance Auto Parts 674 0.82

17,042 CBS (B) 656 0.80

8,174 Concho Resources 656 0.80

11,194 T-Mobile US 646 0.79

14,808 Bunge 643 0.78

15,656 Flowserve 636 0.77

421 Amazon.com 632 0.77

31,280 Baker Hughes (A) 608 0.74

7,646 Copa Holdings (A) 582 0.71

9,879 DowDuPont 575 0.70

32,076 Cabot Oil & Gas 573 0.70

10,646 Gilead Sciences 563 0.68

6,630 Royal Gold 533 0.65

9,293 Autoliv 516 0.63

2,528 Intuit 514 0.63

20,885 Corteva 486 0.59

2,351 Apple 370 0.45

8,973 Heron Therapeutics 130 0.16

734 Bridgebio Pharma 16 0.02

44,377 53.96

Portfolio Statement

Global Focus Fund

207

as at 30 June 2019



51,623 Royal Dutch Shell (A) (NL) 1,332 1.62

16,018 AstraZeneca 1,031 1.25

172,132 Beazley 947 1.15

66,278 Ocado Group 777 0.94

80,171 Rolls-Royce Holdings 671 0.82

61,490 Standard Chartered 437 0.53

54,791 Standard Chartered (HK) 386 0.47

243,950 Vivo Energy 301 0.37

6,587,238 Rolls-Royce Holdings 7 0.01

5,889 7.16

Japan - (6.41%)

40,000 Recruit Holdings 1,050 1.28

3,100 Nintendo 895 1.09

1,800 Keyence 870 1.06

72,100 ORIX 848 1.03

37,400 Komatsu 711 0.86

23,100 Sumitomo Mitsui Trust Holdings 660 0.80

12,600 Sysmex 647 0.79

5,681 6.91

Germany - (7.67%)

12,944 SAP 1,389 1.69

9,271 Deutsche Boerse 1,035 1.26

8,582 Siemens 800 0.97

4,878 Volkswagen Preferred 642 0.78

30,855 RWE 593 0.72

19,940 Deutsche Wohnen 575 0.70

5,034 6.12



5,613 Sonova Holding 1,002 1.22

19,908 LafargeHolcim 767 0.93

17,605 Julius Baer Group 614 0.75

3,744 4.55

Sweden - (4.22%)

152,338 Ericsson (B) 1,149 1.40

8,447 Spotify Technology 954 1.16

40,168 Assa Abloy 719 0.87

54,044 Elekta 617 0.75

3,439 4.18

Canada - (4.01%)

78,517 Fairfax India Holdings 781 0.95

9,677 Franco-Nevada (US) 637 0.77

14,885 Agnico Eagle Mines (US) 596 0.72

830 Fairfax Financial Holdings 325 0.40

2,339 2.84

Portfolio Statement

Global Focus Fund

208

as at 30 June 2019


India - (3.73%)

47,369 Reliance Industries 677 0.82

34,827 Kotak Mahindra Bank 586 0.71

44,445 ICICI Lombard General Insurance 562 0.68

90,952 ICICI Prudential Life Insurance 404 0.49

2,229 2.71

Korea - (0.79%)

39,844 Samsung Electronics Preferred 1,039 1.26

5,579 NAVER 432 0.53

1,471 1.79

China - (1.50%)

277,400 China Pacific Insurance Group (H) 855 1.04

978,000 Lenovo Group 596 0.72

1,451 1.76


43,751 ArcelorMittal Luxembourg 613 0.75

7,736 NXP Semiconductors 605 0.74

1,218 1.48

Hong Kong - (0.00%)

107,600 AIA Group 914 1.11

914 1.11


4,750 Naspers (N) 898 1.09

898 1.09

Denmark - (1.81%)

20,527 Novozymes 757 0.92

757 0.92

Mexico - (0.85%)

9,976 Fomento Economico Mexicano (ADR) 754 0.92

754 0.92

France - (2.04%)

17,831 BNP Paribas 666 0.81

666 0.81

Spain - (1.02%)

38,298 Grifols CL B Preferred (ADR) 621 0.76

621 0.76

Ireland - (0.00%)

0 Fidelity Institutional Liquidity Fund - Euro A Acc 4 0.00

4 0.00


Cash and other net assets/(liabilities) 750 0.93

Net assets 82,236 100.00


Portfolio Statement


209

as at 30 June 2019


Gilt Edged Securities - (91.00%)

10,750,000 UK Gilt 0.125% I/L 22/03/2044 Reg S 20,993 12.50

4,930,000 UK Gilt 1.25% I/L 22/11/2055 19,034 11.34

9,950,000 UK Gilt 0.125% I/L 22/11/2036 Reg S 16,378 9.75

3,466,000 UK Gilt 2.00% I/L 26/01/2035 10,037 5.98

3,425,000 UK Gilt 0.375% I/L 22/03/2062 Reg S 9,883 5.89

3,425,000 UK Gilt 0.75% I/L 22/11/2047 9,408 5.60

3,075,000 UK Gilt 0.125% I/L 22/03/2068 Reg S 8,879 5.29

3,054,000 UK Gilt 0.50% I/L 22/03/2050 Reg S 8,127 4.84

3,175,000 UK Gilt 0.625% I/L 22/03/2040 Reg S 7,143 4.25

3,060,000 UK Gilt 0.125% I/L 22/03/2058 Reg S 7,089 4.22

2,200,000 UK Gilt 0.125% I/L 22/11/2065 Reg S 5,773 3.44

1,408,000 UK Gilt 4.125% I/L 22/07/2030 5,375 3.20

3,450,000 UK Gilt 0.125% I/L 22/03/2029 Reg S 5,347 3.18

2,600,000 UK Gilt 0.75% I/L 22/03/2034 Reg S 4,907 2.92

3,150,000 UK Gilt 0.125% I/L 22/03/2026 Reg S 4,202 2.50

1,450,000 UK Gilt 0.125% I/L 22/03/2046 Reg S 2,742 1.63

2,000,000 UK Gilt 0.125% I/L 10/08/2028 Reg S 2,614 1.56

300,000 UK Gilt 0.625% I/L 22/11/2042 Reg S 723 0.43

148,654 88.53


385 Fidelity Institutional Liquidity Fund - Sterling A Acc 8,041 4.79

8,041 4.79

Mortgage Related Bonds - (4.22%)

1,420,000 Dwr Cymru (Financing) 3.514% 31/03/2030 3,557 2.12

800,000 UPP Bond 1 Issuer 2.7291% 31/08/2047 EMTN 1,602 0.95

750,000 High Speed Rail Finance 1 1.566% 01/11/2038 EMTN Reg S 1,220 0.73

230,000 Southern Water Services Finance 3.706% 31/03/2034 631 0.38

114,000 Southern Water Services Finance 3.816% 31/03/2023 Reg S 215 0.13

7,225 4.30

Corporate Bonds - (2.24%)

1,050,000 Thames Water Utilities Caymen Finance 2.875% 03/05/2027 EMTN Reg S 1,039 0.62

800,000 Northumbrian Water Finance 1.625% 11/10/2026 Reg S 781 0.47

1,820 1.08

Interest Rate Swaps - (0.04%)

3,200,000 Receive fixed 0.5323% pay float 6 Month CHF LIBOR 12/11/2028 202 0.12

2,000,000 Receive fixed 2.7163% pay float 3 Month USD LIBOR 19/02/2029 106 0.06




2,300,000 Receive fixed 2.1497% pay float 6 Month AUD Bank Bill 23/04/2029 69 0.04

177,300,000 Receive fixed 0.1298% pay float 6 Month JPY LIBOR 18/03/2029 14 0.01

200,000 Receive fixed 0.1587% pay float 6 Month CHF LIBOR 11/06/2029 1 0.00

312,000,000 Receive fixed 0.0085% pay float 6 Month JPY LIBOR 24/06/2029 (8) 0.00

700,000 Pay fixed 0.6312% receive float 6 Month EURIBOR 12/02/2029 (29) (0.02)

1,000,000 Pay fixed 0.5237% receive float 6 Month EURIBOR 06/05/2029 (31) (0.02)


1,500,000 Pay fixed 1.4532% receive float 6 Month GBP LIBOR 13/12/2028 (59) (0.04)

22,500,000 Pay fixed 0.9122% receive float 3 Month STIBOR 08/04/2029 (71) (0.04)

Portfolio Statement


210

as at 30 June 2019


2,600,000 Pay fixed 2.36% receive float NZD Bank Bill 3 Month Index 18/03/2029 (75) (0.04)



82 0.05

Futures - (0.04%)

2,200,000 Long Gilt Commodity Future 26/09/2019 24 0.01

24 0.01

Forward Foreign Exchange Contracts - (0.00%)

1,992,000 Bought SEK sold GBP @ 0.080347 for settlement 14/08/2019 10 0.01

(221,000) Bought GBP sold USD @ 1.266917 for settlement 14/08/2019 1 0.00


(100,000) Bought GBP sold USD @ 1.280462 for settlement 14/08/2019 (1) 0.00

(219,000) Bought GBP sold CHF @ 1.256950 for settlement 14/08/2019 (3) 0.00

7 0.00



Net assets 167,908 100.00


Portfolio Statement

Japan Fund

211

as at 30 June 2019


Electric Appliances - (22.37%)

33,800 Nidec 3,637 4.71

7,300 Keyence 3,528 4.57

141,700 Yokogawa Electric 2,186 2.83

78,500 Azbil 1,511 1.96

49,300 Hamamatsu Photonics K.K. 1,510 1.96

13,300 Tokyo Electron 1,468 1.90

32,800 IRISO Electronics 1,294 1.68

40,300 Hitachi 1,164 1.51

35,400 Nihon Kohden 755 0.98

18,400 NEC 570 0.74

28,700 Stanley Electric 556 0.72

37,700 Mitsubishi Electric 391 0.51

10,300 Murata Manufacturing 365 0.47

9,300 SCREEN Holdings 305 0.40

5,100 Rohm 270 0.35

47,700 Renesas Electronics 186 0.24

3,900 Koito Manufacturing 164 0.21

1,700 TDK 104 0.13

1,000 Horiba 41 0.05

1,700 Taiyo Yuden 25 0.03

3,000 Ichikoh Industries 16 0.02

20,046 25.97

Machinery - (19.59%)

30,900 Daikin Industries 3,177 4.12

75,700 Makita 2,022 2.62

38,500 Daifuku 1,702 2.21

126,100 Kubota 1,654 2.14

10,300 Disco 1,331 1.72

4,000 SMC 1,174 1.52

8,200 Nabtesco 179 0.23

9,700 KITO 118 0.15

5,200 Ebara 111 0.14

5,500 THK 104 0.13

3,500 CKD 28 0.04

11,600 15.03

Wholesale Trade - (7.66%)

175,700 MISUMI Group 3,470 4.50

116,400 ITOCHU 1,753 2.27

40,000 Hitachi High Technologies 1,619 2.10

24,600 Trusco Nakayama 416 0.54

7,258 9.40

Precision Instruments - (4.69%)

144,200 Shimadzu 2,785 3.61

20,200 Hoya 1,220 1.58

80,300 Olympus 702 0.91

18,600 Asahi Intecc 361 0.47

5,068 6.57

Portfolio Statement

Japan Fund

212

as at 30 June 2019


Pharmaceutical - (2.87%)

33,000 Nippon Shinyaku 1,833 2.37

132,900 Santen Pharmaceutical 1,734 2.25

31,300 Daiichi Sankyo Kabushik Kaisha 1,289 1.67

3,000 Takeda Pharmaceutical 84 0.11

4,940 6.40

Information & Communication - (4.72%)

38,600 Otsuka 1,222 1.58

31,200 Raksul 900 1.17

24,600 NS Solutions 615 0.80

11,600 SoftBank Group 438 0.57

17,500 Mercari 365 0.47

15,900 GMO Internet 227 0.29

7,900 Square Enix Holdings 199 0.26

4,200 Nippon Telegraph & Telephone 154 0.20

1,600 OBIC 143 0.19

7,600 SoftBank Group Corp. 78 0.10

5,700 Nomura Research Institute 72 0.09

2,000 Digital Garage 50 0.06

4,463 5.78

Chemicals - (5.53%)

20,900 Kao 1,254 1.62

38,700 Denka 902 1.17

38,600 Kansai Paint Osaka 637 0.83

27,900 Nifco 544 0.70

13,800 Sumitomo Bakelite 388 0.50

19,800 Air Water 267 0.35

6,100 Fuso Chemical 95 0.12

4,087 5.30

Services - (6.08%)

112,900 Recruit Holdings 2,963 3.84

40,400 Nomura 397 0.51

3,400 Oriental Land 332 0.43

3,500 H.I.S. 69 0.09

3,400 Relo Group 67 0.09

3,828 4.96

Insurance - (7.61%)

75,700 Tokio Marine Holdings 2,989 3.87

39,300 Sony Financial Holdings 744 0.96

3,733 4.84

Retail Trade - (5.31%)

24,900 Pan Pacific International Holdings 1,245 1.61

2,600 Fast Retailing 1,237 1.60

48,500 Marui Group 778 1.01

8,900 Welcia Holdings 285 0.37

3,545 4.59

Portfolio Statement

Japan Fund

213

as at 30 June 2019


Transportation Equipment - (5.44%)

16,300 Shimano 1,910 2.47

50,600 Yamaha Motor 708 0.92

3,500 Denso 116 0.15

2,734 3.54

Other Financing Business - (2.10%)

105,200 ORIX 1,237 1.60

20,300 Zenkoku Hosho 614 0.80

6,800 Tokyo Century 225 0.29

2,076 2.69

Construction - (1.98%)

111,500 Penta-Ocean Construction 430 0.56

13,400 SHO-BOND Holdings 371 0.48

15,400 Comsys Holdings 307 0.40

7,200 Kyowa Exeo 141 0.18

7,300 Raito Kogyo 73 0.09

4,800 Toshiba Plant Systems & Services 71 0.09

1,393 1.80

Real Estate - (0.00%)

60,300 Mitsubishi Estate 885 1.15

885 1.15

Land Transportation - (0.00%)

15,300 Hitachi Transport System 391 0.51

391 0.51

Fishing, Agriculture, & Forestry - (0.27%)

11,000 Sakata Seed 252 0.33

252 0.33

Other Products - (0.92%)

6,300 Bandai Namco Holdings 241 0.31

241 0.31

Iron & Steel - (0.18%)

6,600 Yamato Kogyo 151 0.20

8,100 Hitachi Metals 72 0.09

223 0.29

Glass & Ceramics Products - (0.00%)

5,000 TOTO 155 0.20

155 0.20

Portfolio Statement

Japan Fund

214

as at 30 June 2019


Rubber Products - (0.33%)

2,500 Bridgestone 78 0.10

78 0.10



Net assets 77,184 100.00


Portfolio Statement

Long Bond Fund

215

as at 30 June 2019



17,400,000 UK Gilt 3.75% 22/07/2052 Reg S 28,069 20.49

14,100,000 UK Gilt 3.25% 22/01/2044 Reg S 19,311 14.10

7,200,000 UK Gilt 3.50% 22/07/2068 12,662 9.24

6,740,000 UK Gilt 4.25% 07/09/2039 Reg S 10,172 7.43

4,035,000 UK Gilt 4.75% 07/12/2038 6,403 4.67

3,700,000 UK Gilt 4.25% 07/12/2046 6,027 4.40

3,155,000 UK Gilt 4.00% 22/01/2060 Reg S 5,719 4.18

2,800,000 UK Gilt 4.25% 07/12/2055 5,071 3.70

2,950,000 UK Gilt 4.50% 07/12/2042 4,760 3.48

1,600,000 UK Gilt 2.50% 22/07/2065 Reg S 2,219 1.62

1,270,000 UK Gilt 4.25% 07/12/2049 2,144 1.57

650,000 UK Gilt 3.50% 22/01/2045 Reg S 932 0.68

600,000 UK Gilt 1.50% 22/07/2047 Reg S 605 0.44

104,094 76.00


1,900,000 Pension Insurance 5.625% 20/09/2030 Reg S 1,932 1.41

1,150,000 Lloyds TSB Bank 6.00% 08/02/2029 Reg S 1,595 1.16

850,000 Society of Lloyds 4.75% 30/10/2024 Reg S 939 0.69

900,000 New York Life Global Funding 1.625% 15/12/2023 Reg S 912 0.67

925,000 Shaftesbury Carnaby 2.487% 30/09/2031 910 0.66

801,000 Orsted 2.50% 16/05/2033 EMTN Reg S 831 0.61

750,000 University of Cambridge 2.35% 27/06/2078 Reg S 801 0.58

725,000 Berkshire Hathaway Finance 2.625% 19/06/2059 764 0.56

719,000 Motability Operations Group 1.75% 03/07/2029 EMTN Reg S 709 0.52

650,000 Intu Metrocentre Finance 4.125% 06/12/2028 658 0.48


550,000 BHP Billiton Finance 6.50% VRN 22/10/2077 Reg S 624 0.46

600,000 AA Bond 4.2487% 31/07/2043 Reg S 609 0.44

640,000 KKR Group Finance V 1.625% 22/05/2029 Reg S 586 0.43


600,000 Danske Bank 1.375% 24/05/2022 EMTN Reg S 550 0.40

639,000 Bristol-Myers Squibb 4.25% 26/10/2049 144A 548 0.40

500,000 Ford Motor Credit 4.535% 06/03/2025 EMTN 525 0.38

500,000 HSBC Holdings 3.00% VRN 22/07/2028 522 0.38

330,000 GE Capital UK Funding 8.00% 14/01/2039 EMTN Reg S 499 0.36

400,000 Lloyds Bank 4.875% 30/03/2027 EMTN 498 0.36

350,000 THFC Funding No 3 5.20% 11/10/2043 EMTN Reg S 495 0.36

350,000 British Land 5.264% 24/09/2035 466 0.34

465,000 Gatwick Funding 2.875% 05/07/2051 Reg S 456 0.33

500,000 CPI Property Group 1.45% 14/04/2022 EMTN Reg S 454 0.33

450,000 Intu SGS Finance 4.25% 17/09/2035 EMTN Reg S 449 0.33

300,000 Walmart Stores 5.625% 27/03/2034 441 0.32

375,000 National Grid Electric Transmission 2.75% 06/02/2035 EMTN Reg S 403 0.29

450,000 New York Life Insurance 4.45% 15/05/2069 144A 390 0.28

400,000 Volkswagen Bank 1.875% 31/01/2024 EMTN Reg S 376 0.27

350,000 Close Brothers Group 4.25% 24/01/2027 Reg S 366 0.27

450,000 Scentre Management 2.375% 05/11/2019 144A 354 0.26

322,000 Barclays 7.125% VRN (Perpetual) 336 0.25

300,000 Home Group 3.125% 27/03/2043 Reg S 304 0.22

384,000 Mexico City Airport Trust 5.50% 31/07/2047 Reg S 301 0.22

Portfolio Statement

Long Bond Fund

216

as at 30 June 2019


200,000 Bankers Investment Trust 8.00% 31/10/2023 240 0.18

200,000 Edinburgh Investment Trust 7.75% 30/09/2022 235 0.17

200,000 PRS Finance 2.00% 23/01/2029 Reg S 209 0.15

202,000 Land Securities Capital Markets 2.625% 22/09/2039 EMTN Reg S 208 0.15

183,000 Northern Electric Finance 2.75% 24/05/2049 Reg S 190 0.14

175,000 United Utilities Water Finance 2.625% 12/02/2031 EMTN Reg S 187 0.14

100,000 Digital Stout Holding 3.75% 17/10/2030 Reg S 107 0.08

50,000 Autostrade Per Litalia 1.625% 12/06/2023 46 0.03

150,000 Cattles 7.125% 05/07/2017 (Defaulted) 0 0.00

23,261 16.98


1,550,000 Newday Partnership Funding 2017 1 1.4765% VRN 15/12/2027 Reg S 1,533 1.12

907,250 Income Contingent Student Loans 1 2002-2006 2.50% 24/07/2056 Reg S 894 0.65

519,350 Together Asset Backed Securitisation 1 1.7927% VRN 12/03/2049 Reg S 520 0.38


430,000 SLM Student Loan Trust FRN 5.15% 15/12/2039 Reg S 409 0.30

425,000 Taurus 2019-1 FR Srl 1.00% VRN 02/02/2031 Reg S 382 0.28

374,645 Together Asset Backed Securitisation 2018-1 1.9727% VRN 12/07/2050 Reg S 376 0.27

83,328 Juturna European Loan Conduit No 16 5.0636% 10/08/2033 EMTN Reg S 104 0.08

4,672 3.41

Government Bonds - (1.48%)

1,050,000 Qatar 3.375% 14/03/2024 Reg S 854 0.62

1,050,000 Qatar 2.375% 02/06/2021 Reg S 827 0.60

900,000 Kuwait 2.75% 20/03/2022 Reg S 718 0.52

2,399 1.75



1,011 0.74


10,000,000 Receive fixed 1.725% pay float 6 Month GBP LIBOR 27/01/2042 1,023 0.75

7,500,000 Receive fixed 1.617% pay float 6 Month GBP LIBOR 15/12/2031 454 0.33


1,000,000 Receive fixed 1.2486% pay float Sonia O/N Deposit Rates Swap 07/03/2039 51 0.04


4,000,000 Pay fixed 2.3517% receive float 3 Month USD LIBOR 24/01/2026 (103) (0.08)


825 0.60

Futures - (0.12%)

7,400,000 US Ultra Bond Commodity Future 19/09/2019 231 0.17

9,100,000 US 10 Year Treasury Note (CBT) Commodity Future 19/09/2019 116 0.08

1,300,000 US 10 Year Ultra Future 19/09/2019 11 0.01

(900,000) Euro-Schatz Commodity Future 06/09/2019 (1) 0.00

800,000 Canadian 10 Year Commodity Bond Future 19/09/2019 (1) 0.00

(800,000) US 2 Year Treasury Note (CBT) Commodity Future 30/09/2019 (3) 0.00

(100,000) EURO BUXL 30 Year Commodity Future 06/09/2019 (5) 0.00

(1,900,000) Euro-BOBL Commodity Future 06/09/2019 (9) (0.01)

(4,100,000) Long Gilt Commodity Future 26/09/2019 (9) (0.01)

(900,000) EURO-BUND Commodity Future 06/09/2019 (11) (0.01)

Portfolio Statement

Long Bond Fund

217

as at 30 June 2019


(1,700,000) Australian 10 Year Bond Commodity Future 16/09/2019 (14) (0.01)

(4,300,000) US 5 Year Treasury Note (CBT) Commodity Future 30/09/2019 (47) (0.03)

(2,600,000) US 20 Year Long Bond (CBT) Commodity Future 19/09/2019 (66) (0.05)

192 0.14

Forward Foreign Exchange Contracts - ((0.07)%)

216,000 Bought EUR sold GBP @ 0.877430 for settlement 14/08/2019 5 0.00



815,000 Bought USD sold GBP @ 0.789318 for settlement 14/08/2019 (3) 0.00

(659,000) Bought GBP sold USD @ 1.305580 for settlement 14/08/2019 (14) (0.01)

(4,636,000) Bought GBP sold USD @ 1.306058 for settlement 14/08/2019 (97) (0.07)

(3,163,000) Bought GBP sold EUR @ 1.156994 for settlement 14/08/2019 (108) (0.08)

(208) (0.15)



Net assets 136,971 100.00


Portfolio Statement


218

as at 30 June 2019


Australia - (50.70%)

12,848 CSL 1,525 6.60

61,067 BHP Group 1,388 6.01

74,544 Westpac Banking 1,166 5.05

24,464 Commonwealth Bank Australia 1,118 4.84

18,078 Ramsay Healthcare 721 3.12

44,027 ANZ Bank 686 2.97

26,812 CIMIC Group 663 2.87

26,934 Wesfarmers 538 2.33

112,404 Insurance Australia Group 512 2.22

28,026 Aristocrat Leisure 475 2.06

71,050 QBE Insurance Group 463 2.01

5,019 Macquarie Group 347 1.50

38,008 Treasury Wine Estates 313 1.36

123,887 Evolution Mining 298 1.29

71,005 Oil Search 277 1.20

266,617 Nine Entertainment Company Holdings 275 1.19

37,872 Lovisa Holdings 237 1.03

101,798 CSR 219 0.95

53,329 Origin Energy 215 0.93

28,797 Lendlease Group 207 0.90

12,651 Appen 196 0.85

148,743 Cleanaway Waste Management 191 0.83

64,674 Orora 115 0.50

56,977 Lynas 81 0.35

12,226 52.95

Hong Kong - (26.97%)

277,200 AIA Group 2,356 10.20

39,600 Hang Seng Bank 777 3.37

54,000 Sun Hung Kai Properties 722 3.13

80,500 CK Hutchison Holdings 626 2.71

470,000 HKT Trust & HKT 588 2.55

584,600 Chow Tai Fook Jewellery Group 501 2.17

48,000 Link Real Estate Investment Trust 465 2.01

80,500 Power Assets Holdings 457 1.98

57,500 CK Infrastructure Holdings 369 1.60

239,000 New World Development 295 1.28

42,000 Wharf Real Estate Investment 233 1.01

79,800 Samsonite International 144 0.62

23,000 Techtronic Industries 138 0.60

14,700 ASM Pacific Technology 119 0.52

20,295 Convenience Retail Asia 8 0.03

7,798 33.77

Singapore - (6.50%)

41,500 United Overseas Bank 632 2.74

181,100 Mapletree Industrial Trust (REIT) 236 1.02

17,500 Venture Corporation 166 0.72

144,600 Keppel (REIT) 140 0.61

1,174 5.08

Portfolio Statement


219

as at 30 June 2019


China - (11.05%)

78,000 China Mengniu Dairy 238 1.03

6,600 Tencent Holdings 235 1.02

2,555 New Oriental Education & Technology Group (ADR) 193 0.84

18,300 BOC Aviation 121 0.52

63,600 China International Capital (H) 101 0.44

85,000 China Resources Pharmaceutical Group 76 0.33

112,000 Dongfeng Motor Group (H) 72 0.31

1,036 4.49

New Zealand - (0.00%)

26,968 Fisher & Paykel Healthcare 221 0.96

20,417 A2 Milk (AU) 156 0.68

377 1.63



6 0.03



Net assets 23,090 100.00


Portfolio Statement


220

as at 30 June 2019




1,100,000 Reseau Ferre de France 4.83% 25/03/2060 EMTN 1,878 1.00

1,049,000 Engie 5.95% 16/03/2111 EMTN Reg S 1,780 0.95

1,350,000 GE Capital UK Funding 6.25% 05/05/2038 EMTN 1,777 0.95

1,700,000 BFCM Paris 1.875% 13/12/2022 EMTN Reg S 1,724 0.92

1,675,000 Barclays 3.00% 08/05/2026 EMTN Reg S 1,692 0.90

1,950,000 Glencore Funding 4.875% 12/03/2029 144A 1,616 0.86

1,600,000 Barclays 2.375% VRN 06/10/2023 Reg S 1,600 0.86

970,000 Lloyds Bank 6.50% 17/09/2040 EMTN Reg S 1,580 0.84

1,629,000 CPI Property Group 4.875% VRN (Perpetual) Reg S 1,438 0.77

1,300,000 Intu Metrocentre Finance 4.125% 06/12/2028 1,315 0.70

1,300,000 HSBC Holdings 2.175% VRN 27/06/2023 1,312 0.70

1,150,000 Prudential 6.25% VRN 20/10/2068 Reg S 1,309 0.70

1,300,000 Daimler International Finance 1.50% 18/08/2021 EMTN Reg S 1,302 0.70

1,230,000 New York Life Global Funding 1.625% 15/12/2023 Reg S 1,246 0.67

1,250,000 AA Bond 2.875% 31/07/2043 Reg S 1,190 0.64

1,114,000 Orsted 2.50% 16/05/2033 EMTN Reg S 1,156 0.62

1,300,000 Petroleos Mexicanos 4.875% 21/02/2028 Reg S 1,135 0.61

1,125,000 Aroundtown 3.625% 10/04/2031 EMTN Reg S 1,130 0.60

1,076,000 Ladbrokes Group Finance 5.125% 08/09/2023 Reg S 1,124 0.60

997,000 Berkshire Hathaway Finance 2.625% 19/06/2059 1,050 0.56

750,000 Lloyds TSB Bank 6.00% 08/02/2029 Reg S 1,040 0.56

1,000,000 Abertis Infraestructure 3.375% 27/11/2026 EMTN Reg S 1,022 0.55


950,000 University of Cambridge 2.35% 27/06/2078 Reg S 1,014 0.54


750,000 America Movil 4.948% 22/07/2033 975 0.52

950,000 AA Bond 4.2487% 31/07/2043 Reg S 964 0.52

1,000,000 Blackstone Property Partners EUR Holdings 2.20% 24/07/2025 EMTN Reg S 946 0.51

600,000 EDF 6.00% 23/01/2114 EMTN Reg S 940 0.50


800,000 Royal London Finance Bonds 6.125% VRN 30/11/2043 Reg S 900 0.48



750,000 Phoenix Group Holdings Capital 5.75% 07/07/2021 Reg S 806 0.43


900,000 Federal-Mogul / Federal-Mogul Financing 5.00% 15/07/2024 Reg S 798 0.43







550,000 British Land 5.264% 24/09/2035 732 0.39


690,000 Fidelity National Information Services 3.36% 21/05/2031 729 0.39

700,000 Volkswagen International Finance 3.375% 16/11/2026 Reg S 729 0.39


825,000 Glencore Funding 4.125% 12/03/2024 144A 673 0.36

625,000 Anglian Water Services Finance 2.75% 26/10/2029 EMTN Reg S 668 0.36

550,000 Lloyds Bank 5.125% 07/03/2025 EMTN Reg S 663 0.35

Portfolio Statement


221

as at 30 June 2019



650,000 RAC Bond 4.565% 06/05/2046 EMTN Reg S 646 0.35

750,000 UniCredit 6.572% 14/01/2022 144A 628 0.34


700,000 Petroleos Mexicanos 3.75% 21/02/2024 Reg S 624 0.33

650,000 Vodafone Group 3.375% 08/08/2049 EMTN Reg S 623 0.33


750,000 ABN AMRO Bank 3.40% 27/08/2021 144A 603 0.32

550,000 CPUK Finance 3.69% 28/02/2047 Reg S 588 0.31

400,000 Walmart Stores 5.625% 27/03/2034 588 0.31

600,000 Bankia 3.75% VRN 15/02/2029 EMTN Reg S 570 0.30

600,000 KBC Groep 4.75% VRN (Perpetual) Reg S 570 0.30

559,000 Fiserv 3.00% 01/07/2031 567 0.30

600,000 Volkswagen Bank 1.875% 31/01/2024 EMTN Reg S 564 0.30


500,000 CNP Assurances 7.375% VRN 30/09/2041 Reg S 557 0.30

600,000 JPMorgan Chase 1.09% VRN 11/03/2027 EMTN Reg S 555 0.30

550,000 CYBG 5.00% VRN 09/02/2026 Reg S 550 0.29

500,000 Virgin Media Secured Finance 6.25% 28/03/2029 Reg S 528 0.28

400,000 IPIC GMTN 6.875% 14/03/2026 EMTN Reg S 523 0.28


515,000 Aroundtown 4.75% VRN (Perpetual) Reg S 508 0.27

550,000 Blackstone Property Partners EUR Holdings 1.40% 06/07/2022 EMTN Reg S 505 0.27

550,000 AA Bond 2.75% 31/07/2043 EMTN Reg S 502 0.27

600,000 Svenska Handelsbanken 6.25% VRN (Perpetual) EMTN Reg S 500 0.27

600,000 ING Groep 6.75% VRN (Perpetual) Reg S 491 0.26

490,000 NewRiver (REIT) 3.50% 07/03/2028 Reg S 490 0.26

400,000 Bank of Scotland 7.281% VRN (Perpetual) 488 0.26

400,000 Clydesdale Bank 4.625% 08/06/2026 EMTN 486 0.26


450,000 WM Treasury 3.25% 20/10/2048 Reg S 483 0.26

469,000 Next Group 3.00% 26/08/2025 Reg S 480 0.26

525,000 EDF 6.00% 22/01/2114 144A 480 0.26

450,000 London & Quadrant Housing Trust 2.625% 05/05/2026 Reg S 467 0.25


550,000 Pershing Square Holdings 5.50% 15/07/2022 Reg S 451 0.24

400,000 Zurich Finance (UK) 6.625% VRN (Perpetual) EMTN 449 0.24

550,000 BP Capital Markets America 2.75% 10/05/2023 438 0.23

425,000 Yorkshire Building Society 3.00% VRN 18/04/2025 Reg S 432 0.23

425,000 Home Group 3.125% 27/03/2043 Reg S 431 0.23

400,000 UniCredit 9.25% VRN (Perpetual) Reg S 401 0.21

450,000 Microsoft 4.00% 12/02/2055 393 0.21

350,000 Glencore Finance (Europe) 6.00% VRN 03/04/2022 Reg S 388 0.21

300,000 University of Liverpool 3.375% 25/06/2055 Reg S 378 0.20

400,000 Bharti Airtel International Netherlands 3.375% 20/05/2021 Reg S 376 0.20

350,000 Annington Funding 3.935% 12/07/2047 EMTN Reg S 375 0.20

350,000 Abbey National Treasury Services 5.125% 14/04/2021 EMTN Reg S 375 0.20

350,000 CPUK Finance 3.588% 28/02/2042 EMTN Reg S 374 0.20

350,000 Assura Financing 3.00% 19/07/2028 Reg S 372 0.20

300,000 GE Capital UK Funding 5.875% 18/01/2033 EMTN 370 0.20

400,000 Phoenix Group Holdings 5.75% VRN (Perpetual) Reg S 355 0.19

344,000 TP ICAP 5.25% 29/05/2026 Reg S 351 0.19

Portfolio Statement


222

as at 30 June 2019


250,000 Northern Powergrid Yorkshire 5.125% 04/05/2035 341 0.18

250,000 RWE Finance 6.25% 03/06/2030 EMTN 341 0.18

350,000 Yorkshire Building Society 3.375% VRN 13/09/2028 EMTN Reg S 335 0.18

200,000 Reseau Ferre de France 5.00% 11/03/2052 EMTN 330 0.18


300,000 TSB Banking Group 5.75% VRN 06/05/2026 EMTN 305 0.16

300,000 Provident Financial 7.00% 04/06/2023 EMTN Reg S 305 0.16

200,000 AT&T 7.00% 30/04/2040 EMTN 302 0.16


200,000 EDF 5.50% 27/03/2037 EMTN 276 0.15


250,000 Marks & Spencer 4.75% 12/06/2025 EMTN 271 0.14

250,000 Land Securities Capital Markets 2.399% 08/02/2031 Reg S 261 0.14

250,000 Phoenix Group Holdings 4.125% 20/07/2022 EMTN Reg S 260 0.14


250,000 Intu SGS Finance 4.625% 17/03/2028 Reg S 258 0.14

245,000 PRS Finance 2.00% 23/01/2029 Reg S 256 0.14


200,000 Lloyds Bank 4.875% 30/03/2027 EMTN 249 0.13


200,000 Massachusetts Institute of Technology 5.60% 01/07/2111 237 0.13


200,000 Investec Bank 9.625% 17/02/2022 EMTN Reg S 235 0.13

400,000 European Investment Bank 6.00% 06/08/2020 232 0.12

200,000 UNITE (USAF) II 3.921% 30/06/2025 Reg S 223 0.12

200,000 Admiral Group 5.50% 25/07/2024 Reg S 221 0.12

200,000 EDF 5.875% VRN (Perpetual) Reg S 212 0.11

150,000 University of Cambridge 3.75% 17/10/2052 212 0.11

200,000 CYBG 9.25% VRN (Perpetual) 209 0.11

200,000 Anglian Water (Osprey) Financing 5.00% 30/04/2023 EMTN Reg S 202 0.11


200,000 Empresa de Transporte de Pasajeros Metro 4.75% 04/02/2024 Reg S 170 0.09

200,000 Continental Resources 4.50% 15/04/2023 165 0.09


100,000 Statoil 4.25% 10/04/2041 EMTN Reg S 136 0.07

100,000 Suez Environnement 5.375% 02/12/2030 EMTN 135 0.07

100,000 Freshwater Finance 5.182% 20/04/2035 135 0.07

100,000 Aviva 6.875% VRN 20/05/2058 EMTN 128 0.07


100,000 London Merchant Securities 6.50% 16/03/2026 127 0.07

100,000 America Movil 5.00% 27/10/2026 121 0.06



100,000 Lloyds Bank 5.75% VRN 09/07/2025 EMTN 104 0.06

100,000 Credit Suisse 5.75% VRN 18/09/2025 95 0.05

100,000 America Movil 4.125% 25/10/2019 EMTN 91 0.05

100,000 UnitedHealth Group 4.25% 15/03/2043 86 0.05

50,000 Engie 5.00% 01/10/2060 EMTN Reg S 80 0.04

50,000 Peel Holdings 8.375% STEP 30/04/2040 71 0.04

50,000 East Japan Railway 4.875% 14/06/2034 EMTN Reg S 69 0.04

50,000 Wales & West Utilities Finance 5.75% 29/03/2030 68 0.04


Portfolio Statement


223

as at 30 June 2019


50,000 HSBC Holdings 6.00% 29/03/2040 EMTN Reg S 66 0.04

50,000 Broadgate Financing 4.821% 05/07/2036 66 0.04

50,000 Annes Gate Property 5.661% 30/06/2031 66 0.04

50,000 BAT International Finance 5.75% 05/07/2040 EMTN 64 0.03

50,000 HSBC Bank 4.75% 24/03/2046 EMTN 61 0.03


50,000 Home Depot 4.875% 15/02/2044 48 0.03

92,587 49.49


9,250,000 UK Gilt 3.25% 22/01/2044 Reg S 12,669 6.77

5,550,000 UK Gilt 4.75% 07/12/2038 8,807 4.71

5,750,000 UK Gilt 4.25% 07/03/2036 8,347 4.46

7,000,000 UK Gilt 2.75% 07/09/2024 Reg S 7,760 4.15

4,300,000 UK Gilt 3.75% 22/07/2052 Reg S 6,937 3.71

3,200,000 UK Gilt 4.00% 22/01/2060 Reg S 5,800 3.10

3,100,000 UK Gilt 4.25% 07/12/2055 5,614 3.00

2,950,000 UK Gilt 4.25% 07/12/2046 4,805 2.57

4,000,000 UK Gilt 4.00% 07/03/2022 4,367 2.33

2,250,000 UK Gilt 3.50% 22/07/2068 3,957 2.12

1,150,000 UK Gilt 4.25% 07/12/2049 1,942 1.04

950,000 UK Gilt 4.50% 07/12/2042 1,533 0.82

750,000 UK Gilt 1.50% 22/07/2047 Reg S 756 0.40

73,294 39.18



700,000 Broadgate Financing 4.999% 05/10/2031 Reg S 854 0.46


750,000 Swan Housing Capital 3.625% 05/03/2048 Reg S 808 0.43




450,000 Greene King Finance 3.593% 15/03/2035 Reg S 467 0.25


339,003 Tesco Property Finance 3 5.744% 13/04/2040 Reg S 443 0.24

509,000 Dignity Finance 4.6956% 31/12/2049 Reg S 410 0.22

255,161 Tesco Property Finance 2 6.0517% 13/10/2039 336 0.18


200,000 High Speed Rail Finance 1 4.375% 01/11/2038 Reg S 252 0.13

162,088 Equity Release Funding 3 5.70% 26/02/2031 193 0.10

125,512 Channel Tunnel Rail Link 5.234% 02/05/2035 164 0.09

197,438 Sprint Spectrum 3.36% 20/03/2023 144A 156 0.08

108,411 Meadowhall Finance 4.986% 12/07/2037 Reg S 133 0.07

100,000 Dali Capital 4.7992% 21/12/2037 132 0.07



89,292 Premiertel 6.175% 08/05/2032 107 0.06

100,000 RHP Finance 3.25% 05/02/2048 Reg S 107 0.06

100,000 Telereal Securitisation 4.0902% VRN 10/12/2033 104 0.06



71,601 Unique Pub Finance 5.659% 30/06/2027 80 0.04

Portfolio Statement


224

as at 30 June 2019


50,000 Peel South East 10.00% 30/04/2026 70 0.04

57,734 Longstone Finance 4.791% 19/04/2036 67 0.04


44,254 White City Property Finance 5.1202% 17/04/2035 57 0.03

41,242 Trafford Centre Finance 6.50% 28/07/2033 56 0.03


37,992 RMPA Services 5.337% 30/09/2038 50 0.03

17,560 BL Superstores Finance 5.27% 04/10/2030 19 0.01

10,386 5.55


1,400,000 Qatar 3.375% 14/03/2024 Reg S 1,139 0.61

1,350,000 Qatar 3.25% 02/06/2026 Reg S 1,094 0.58

1,350,000 Qatar 2.375% 02/06/2021 Reg S 1,063 0.57

1,050,000 Kuwait 2.75% 20/03/2022 Reg S 838 0.45

575,000 Romania 4.625% 03/04/2049 Reg S 623 0.33

4,757 2.54







166 0.09

Futures - (0.00%)



2,000,000 US 20 Year Long Bond (CBT) Commodity Future 19/09/2019 34 0.02

200,000 US Ultra Bond Commodity Future 19/09/2019 6 0.00


2,000,000 Canadian 10 Year Commodity Bond Future 19/09/2019 (2) 0.00



(4,400,000) Australian 10 Year Bond Commodity Future 16/09/2019 (36) (0.02)

(2,100,000) US 10 Year Ultra Future 19/09/2019 (46) (0.02)

(1,300,000) EURO BUXL 30 Year Commodity Future 06/09/2019 (68) (0.04)


(7,300,000) EURO-BUND Commodity Future 06/09/2019 (105) (0.06)

(59) (0.03)

Index Credit Default Swap - ((0.35)%)

8,000,000 Bought Protection on ITRAXX XOver S31 20/06/2024 (809) (0.43)

(809) (0.43)

Portfolio Statement


225

as at 30 June 2019



1,768,000 Bought USD sold GBP @ 0.769979 for settlement 14/08/2019 29 0.02



1,695,000 Bought USD sold GBP @ 0.786894 for settlement 14/08/2019 (1) 0.00

(400,000) Bought GBP sold AUD @ 1.860492 for settlement 14/08/2019 (6) 0.00




(886) (0.47)



Net assets 187,067 100.00


Portfolio Statement


226

as at 30 June 2019


China - (31.92%)

201,001 Tencent Holdings 7,149 5.06


3,805,000 China Construction Bank (H) 2,581 1.83

254,500 Ping An Insurance (Group) Company of China 2,409 1.70

17,600 Kweichow Moutai (A) 08/04/2020 (ELN) 1,987 1.41

190,111 Shanghai International Airport (A) 15/04/2020 (ELN) 1,827 1.29

224,900 Meituan-Dianping (B) 1,551 1.10

17,010 New Oriental Education & Technology Group (ADR) 1,284 0.91

136,700 Hangzhou Tigermed Cons (A) 28/10/2019 (ELN) 1,209 0.86

40,900 Ctrip.com International (ADR) 1,196 0.85

137,500 Sunny Optical Technology Group 1,118 0.79

817,000 CNOOC Group 1,100 0.78

353,500 Longfor Group Holdings 1,049 0.74

2,985,000 Bank of China (H) 991 0.70

91,000 Shenzhou International Group Holdings 984 0.70

1,707,000 Industrial & Commercial Bank of China (H) 980 0.69

3,930 NetEase (ADR) 810 0.57

178,900 Inner Mongolia Yili Industrial Group (A) 18/03/2020 (ELN) 686 0.49

234,000 China Overseas Land & Investment 679 0.48

18,500 Yum China Holdings 672 0.48

321,000 China Life Insurance (H) 623 0.44

2,170,000 MMG 598 0.42

1,100,000 China Petroleum & Chemical (H) 590 0.42

95,950 Midea Group (A) 11/11/2019 (ELN) 571 0.40

123,000 China Merchants Bank (H) 484 0.34

8,600 YY (A) (ADR) 468 0.33

2,234,000 China Tower (H) 462 0.33

522,000 Brilliance China Automotive Holdings 455 0.32

128,600 China Pacific Insurance Group (H) 397 0.28

16,320 JD.Com (ADR) 390 0.28

12,310 Momo (ADR) 349 0.25

470,000 Nine Dragons Paper Holdings 328 0.23

4,470 51job (ADR) 262 0.19

2,800 Baidu (A) (ADR) 256 0.18

42,894 30.34

Korea - (12.66%)


7,155 LG Chemical 1,729 1.22

9,947 Samsung SDI 1,602 1.13

48,841 KB Financial Group 1,527 1.08

22,947 SK Hynix 1,087 0.77

4,689 POSCO 783 0.55

8,013 Hyundai Motor 763 0.54

22,943 Hana Financial Group 586 0.41

41,983 LG Uplus 416 0.29

7,042 S-Oil 402 0.28

Portfolio Statement


227

as at 30 June 2019


12,786 Shinhan Financial Group 392 0.28

19,948 Hyundai Marine & Fire Insurance 387 0.27

15,776 11.16

India - (9.08%)

201,355 Reliance Industries 2,879 2.04

83,665 Housing Development Finance 2,092 1.48

219,645 Axis Bank 2,029 1.44

266,626 ICICI Bank 1,328 0.94

38,078 HDFC Bank 1,060 0.75

207,506 Indraprastha Gas 745 0.53

459,355 NTPC 739 0.52

237,294 Bharti Infratel 721 0.51

76,774 Infosys 641 0.45

1,921 Shree Cement 475 0.34

116,649 ITC 364 0.26

66,051 State Bank of India 273 0.19

13,346 9.44

Brazil - (7.20%)

239,617 Banco Bradesco 1,873 1.32

228,600 B3 S.A. - Brasil 1,769 1.25

140,400 Petroleo Brasileiro-Petrobras (ADR) 1,720 1.22

185,100 Estacio Participacoes 1,104 0.78

35,700 Azul (ADR) 927 0.66

74,600 Banco do Brasil 828 0.59

92,100 Notre Dame Intermedica Participacoes 755 0.53

90,456 Itau Unibanco Holding 676 0.48

146,500 Atacadao 656 0.46

60,457 Vale (ADR) 640 0.45

96,600 Ultrapar Participacoes 409 0.29

19,100 Equatorial Energia 354 0.25

48,300 Suzano 335 0.24

16,200 IRB Brasil Resseguros 332 0.23

30,100 Telefonica Brasil 312 0.22

9,800 Petroleo Brasileiro-Petrobras 60 0.04

12,750 9.02

Taiwan - (8.82%)

942,000 Taiwan Semiconductor Manufacturing 5,701 4.03

1,499,929 E.SUN Financial Holding Company 990 0.70

150,000 Realtek Semiconductor 870 0.62

95,000 MediaTek 756 0.53

7,000 Largan Precision 685 0.48

94,000 Hiwin Technologies 620 0.44

76,698 BizLink Holding 418 0.30

432,000 Unimicron Technology 386 0.27

Portfolio Statement


228

as at 30 June 2019


110,000 Chroma ATE 385 0.27

30,000 AirTAC International Group 263 0.19

11,074 7.83


19,070 Naspers (N) 3,606 2.55

75,290 AngloGold Ashanti 1,059 0.75

196,681 Telkom SOC 1,021 0.72

7,122 Capitec Bank Holdings 513 0.36

64,987 MTN Group 388 0.27

15,099 Sasol 292 0.21

6,879 4.87

Russia - (3.58%)

12,819 Novatek (GDR) 2,150 1.52

709,867 Sberbank Russia (USD) 2,128 1.51

19,076 PJSC LUKOIL (ADR) 1,280 0.91

671,940 ALROSA 731 0.52

6,289 4.45

Mexico - (2.71%)

512,800 Walmart de Mexico 1,118 0.79

209,900 Grupo Aeroportuario del Centro Norte (B) 1,050 0.74

53,000 America Movil (ADR) 612 0.43

60,700 Fomento Econom Mexica 458 0.32

59,140 Gruma (B) 439 0.31

87,700 Grupo Financiero Banorte 402 0.28

4,079 2.89

Thailand - (1.64%)

2,436,300 Thai Beverage 1,171 0.83

219,200 Kasikornbank (F) 1,068 0.76

340,200 CP All Public (F) 750 0.53

2,989 2.11

Indonesia - (1.85%)

3,845,100 Bank Rakyat Indonesia 935 0.66

3,994,700 PT Telekomunikasi Indonesia Persero TBK 923 0.65

1,568,100 Astra International 650 0.46

264,600 Bank Central Asia 442 0.31

2,950 2.09

Philippines - (0.87%)

2,605,100 Ayala Land 2,024 1.43

2,024 1.43

Cayman Islands - (0.00%)

28,050 Pinduoduo (A) (ADR) 459 0.32

23,400 Huya (ADR) 459 0.32

313,500 CStone Pharmaceuticals 365 0.26

240,500 Koolearn Technology Holding 222 0.16

1,505 1.06

Portfolio Statement


229

as at 30 June 2019


United Arab Emirates - (1.27%)

339,507 First Abu Dhabi Bank 1,078 0.76

1,078 0.76

Hungary - (0.63%)

32,517 OTP Bank 1,022 0.72

1,022 0.72

Peru - (0.72%)

4,440 Credicorp 808 0.57

808 0.57

Poland - (0.60%)

32,446 Bank Polska Kasa Opieki Spolka Akcyjna 765 0.54

765 0.54


23,400 Yandex (A) 716 0.51

716 0.51

Qatar - (0.00%)

103,180 Qatar National Bank 425 0.30

425 0.30

Argentina - (0.25%)

52,700 Central Puerto (B) (ADR) 377 0.27

377 0.27

Turkey - (1.54%)

18,297 Turkiye Petrol Rafinerileri AS 284 0.20

284 0.20

Futures - ((0.13)%)

8,850 Mini MSCI Em MK Index Future 20/09/2019 283 0.20

283 0.20

Colombia - (0.30%)

6,500 BanColombia (ADR) 260 0.18

260 0.18



Net assets 141,374 100.00


Portfolio Statement


230

as at 30 June 2019



65,600 Microsoft 6,935 3.10

3,100 Amazon.com 4,651 2.08

28,200 Apple 4,439 1.98

36,200 Chevron 3,508 1.57

118,900 Bank of America 2,643 1.18

18,300 Visa (A) 2,468 1.10

86,400 AT&T 2,245 1.00

116,300 Marvell Technology Group 2,190 0.98

19,300 Walt Disney 2,119 0.95

35,100 Qualcomm 2,086 0.93

2,382 Alphabet (C) 2,020 0.90

37,460 Citigroup 2,012 0.90

58,500 Comcast (A) 1,936 0.86

11,900 McDonalds 1,934 0.86

9,300 MasterCard (A) 1,914 0.85

9,700 UnitedHealth Group 1,884 0.84

49,300 Wells Fargo 1,798 0.80

54,300 Boston Scientific 1,795 0.80

16,800 Sarepta Therapeutics 1,718 0.77

6,600 Northrop Grumman 1,655 0.74

37,500 Cisco Systems 1,647 0.74

16,000 Crown Castle International 1,645 0.73

14,637 Danaher 1,638 0.73

22,900 Capital One Financial 1,612 0.72


43,600 Bristol-Myers Squibb 1,549 0.69

12,900 Salesforce.com 1,532 0.68

37,700 Coca-Cola 1,518 0.68

6,400 Adobe 1,479 0.66

1,740 Alphabet (A) 1,476 0.66

8,700 Berkshire Hathaway 1,454 0.65

13,700 Alexion Pharmaceuticals 1,362 0.61

8,900 Norfolk Southern 1,357 0.61

6,900 Becton Dickinson 1,355 0.61

6,300 Humana 1,314 0.59

10,000 Union Pacific 1,309 0.58

119,000 Huntington Bancshares 1,280 0.57

8,900 Vertex Pharmaceuticals 1,253 0.56

7,600 Home Depot 1,240 0.55

31,000 MetLife 1,200 0.54

44,400 Synchrony Financial 1,200 0.54

16,500 AMETEK 1,148 0.51

12,200 Royal Caribbean Cruises 1,146 0.51

87,800 AES 1,144 0.51

43,100 Corning 1,129 0.50

10,300 Dollar General 1,107 0.49

18,000 Philip Morris International 1,105 0.49

8,100 M&T Bank 1,077 0.48

5,000 Intuit 1,017 0.45

17,444 DowDuPont 1,015 0.45

15,100 Neurocrine Biosciences 981 0.44

Portfolio Statement


231

as at 30 June 2019


12,500 Lowes 979 0.44

15,600 Akamai Technologies 976 0.44

25,800 Exelon 967 0.43

54,400 Vistra Energy 953 0.43

16,400 T-Mobile US 947 0.42

9,300 United Technologies 945 0.42

8,000 The Travelers Companies 940 0.42

12,400 Blueprint Medicines 906 0.40

18,700 ConocoPhillips 903 0.40

19,400 Delta Airlines 869 0.39

6,200 General Dynamics 868 0.39

6,900 Cigna 858 0.38

9,700 Walmart 842 0.38

9,000 J.M. Smucker 829 0.37

16,400 ITT 828 0.37

29,300 US Foods Holding 823 0.37

12,968 Fortive 821 0.37

26,100 HD Supply Holdings 814 0.36

12,700 Tyson Foods (A) 797 0.36

18,900 TJX 788 0.35

10,900 Phillips 66 788 0.35


18,200 CVS Health 785 0.35

9,100 Dollar Tree 776 0.35

5,900 Deere 767 0.34

2,600 Netflix 758 0.34

23,600 Archer Daniels Midland 755 0.34

11,400 Leidos Holdings 713 0.32

16,300 Bunge 708 0.32

28,500 Tapestry 697 0.31

2,400 Boeing 688 0.31

7,700 Eli Lilly 676 0.30

5,300 Global Payments 667 0.30


33,200 Conagra Brands 665 0.30

4,400 Willis Towers Watson 655 0.29

2,900 Broadcom 653 0.29

12,000 Cheniere Energy 645 0.29

3,100 Arista Networks 630 0.28

18,200 D.R. Horton 620 0.28

2,000 Charter Communications (A) 617 0.28

13,600 Oracle 609 0.27

7,700 Electronic Arts 602 0.27

10,500 Best Buy 567 0.25

13,100 Mondelez International 559 0.25

31,900 Noble Energy 549 0.25

6,300 Cboe Global Markets 527 0.24

3,500 Constellation Brands (A) 519 0.23

13,900 Activision Blizzard 518 0.23

20,100 Hilton Grand Vacations 500 0.22

8,600 AbbVie 474 0.21

12,500 CF Industries Holdings 464 0.21

Portfolio Statement


232

as at 30 June 2019


26,300 Kroger 443 0.20

7,900 Westlake Chemical 430 0.19

3,700 Jones Lang LaSalle 403 0.18

5,270 Immunomedics 57 0.03

132,401 59.12

Japan - (8.09%)

22,600 Toyota Motor 1,105 0.49

24,800 SoftBank Group 936 0.42

60,900 ITOCHU 917 0.41

24,100 Nippon Telegraph & Telephone 885 0.40

183,200 Mitsubishi UFJ Financial Group 685 0.31

23,900 Sumitomo Mitsui Financial Group 665 0.30

1,200 Keyence 580 0.26

8,500 Hoya 513 0.23

8,200 Kao 492 0.22

12,000 Tokio Marine Holdings 474 0.21

11,300 Sony 467 0.21

22,200 Subaru 425 0.19

2,900 Fanuc 422 0.19

10,900 Bandai Namco Holdings 416 0.19

15,500 Recruit Holdings 407 0.18

9,600 Hitachi High Technologies 389 0.17

22,900 Mitsubishi Estate 336 0.15

17,400 Mitsui Fudosan 333 0.15

25,900 JSR 322 0.14

1,100 Nintendo 318 0.14

23,700 Minebea Mitsumi 316 0.14

8,300 Suzuki Motor 307 0.14

10,500 Hitachi 303 0.14

2,900 Daikin Industries 298 0.13

2,700 Tokyo Electron 298 0.13

1,000 SMC 294 0.13

15,000 Mitsui Chemicals 293 0.13

10,700 Asahi Glass 291 0.13

31,900 Isuzu Motors 286 0.13

3,800 Shin-Etsu Chemical 279 0.12

10,000 Takeda Pharmaceutical 279 0.12

2,500 Nidec 269 0.12

13,600 Sony Financial Holdings 257 0.11

4,200 Shiseido 249 0.11

10,000 Terumo 234 0.10

11,000 Shimadzu 212 0.09

3,300 TDK 201 0.09

5,200 Asahi Group Holdings 184 0.08

6,400 CyberAgent 183 0.08

1,600 Nitori Holdings 167 0.07

4,600 Mitsubishi Heavy Industries 158 0.07

8,200 MonotaRO 158 0.07

39,500 Renesas Electronics 154 0.07

5,300 Taisei 152 0.07

7,900 Kamigumi 147 0.07

Portfolio Statement


233

as at 30 June 2019


11,800 ORIX 139 0.06

3,900 Makita 104 0.05

1,800 Oracle Corporation Japan 103 0.05

6,900 Zozo 102 0.05

17,504 7.82


310,991 BP 1,707 0.76

22,308 AstraZeneca 1,436 0.64

28,742 Diageo 972 0.43

115,837 Standard Chartered 823 0.37

16,798 Unilever 819 0.37

46,745 Prudential 796 0.36

30,802 Anglo American 684 0.31

162,106 Standard Life Aberdeen 475 0.21

24,208 Compass Group 457 0.20

15,084 British American Tobacco 416 0.19

691,640 Lloyds Banking Group 393 0.18

7,582 InterContinental Hotels Group 392 0.18

14,600 CRH 373 0.17

16,923 Micro Focus International 349 0.16

266,685 Vodafone Group 344 0.15

13,277 Experian 316 0.14

5,054 Rio Tinto 245 0.11

11,559 Bunzl 242 0.11

25,712 Informa 215 0.10

8,373 Ashtead Group 190 0.08

15,845 St James Place 174 0.08

8,892 Mondi Group 158 0.07

9,975 Weir Group 151 0.07

5,810 Imperial Brands 108 0.05

11,507 Rolls-Royce Holdings 96 0.04

13,831 Network International Holdings 80 0.04

14,011 B&M European Value Retail S.A. 47 0.02

2,591 Land Securities Group 21 0.01

2,402,427 Rolls-Royce Holdings 2 0.00

12,481 5.57

France - (4.13%)

30,981 Total 1,362 0.61

12,586 Vinci SA 1,017 0.45

2,973 LVMH Moet Hennessy 988 0.44

12,846 Sanofi 874 0.39

9,443 Danone 629 0.28

17,879 Compagnie de Saint-Gobain 545 0.24

4,413 Airbus 493 0.22

4,467 Capgemini 441 0.20

2,511 Teleperformance 394 0.18

6,931 Amundi 376 0.17

2,501 Pernod Ricard 362 0.16

33,496 Rexel 332 0.15

13,707 Vivendi SA 295 0.13

8,108 3.62

Portfolio Statement


234

as at 30 June 2019


Germany - (3.72%)

11,321 SAP 1,215 0.54

4,919 Allianz SE 927 0.41

11,738 Daimler 510 0.23

19,686 Deutsche Post 505 0.23

12,931 Vonovia SE 486 0.22

5,131 Siemens 478 0.21

6,022 MorphoSys 456 0.20

21,582 RWE 415 0.19

2,355 Linde (DE) 370 0.17

4,795 HeidelbergCement 305 0.14

5,271 Bayer 288 0.13

4,915 BMW 284 0.13

1,477 MTU Aero Engines 274 0.12

1,920 Hannover Rueck 243 0.11

40,221 Commerzbank 226 0.10

15,075 K&S 220 0.10

5,557 Talanx 189 0.08

1,872 LEG Immobilien 166 0.07

3,300 Akasol 122 0.05

487 adidas 118 0.05

7,797 3.48

Canada - (3.23%)

22,400 Toronto-Dominion Bank 1,026 0.46

15,400 Royal Bank of Canada 959 0.43

21,452 Suncor Energy 526 0.23

9,100 Alimentation Couche-Tard (B) 455 0.20

11,500 Sun Life Financial 374 0.17

2,000 Canadian Pacific Railway 368 0.16

4,100 Intact Financial 297 0.13

67,600 Lundin Mining 286 0.13

14,900 Quebecor (B) 277 0.12

14,900 Great-West Lifeco 269 0.12

4,300 CGI (A) 260 0.12

8,100 Canadian Apartment Properties (REIT) 236 0.11

3,500 Franco-Nevada 230 0.10

32,200 Cenovus Energy 224 0.10

5,600 Agnico Eagle Mines 224 0.10

4,100 Restaurant Brands International 223 0.10

7,700 Pembina Pipeline 222 0.10

10,000 CAE 209 0.09

4,940 Nutrien 209 0.09

16,200 PrairieSky Royalty 180 0.08

200 Constellation Software 146 0.07

106,500 Bombardier (B) 140 0.06

34,200 Encana 135 0.06

7,475 3.34

Portfolio Statement


235

as at 30 June 2019




15,825 Nestle 1,289 0.58

14,553 Novartis 1,047 0.47

7,118 Swiss Re Group 567 0.25

1,950 Zurich Insurance Group 534 0.24

1,970 Lonza Group 518 0.23

55,451 UBS Group 517 0.23

2,002 Sika 268 0.12

6,487 2.90

Australia - (1.87%)

34,326 Newcrest Mining 605 0.27

6,180 Macquarie Group 428 0.19

9,239 Commonwealth Bank Australia 422 0.19

61,761 QBE Insurance Group 403 0.18

41,089 Treasury Wine Estates 338 0.15

16,349 Woodside Petroleum 328 0.15

44,529 Lendlease Group 319 0.14

65,893 Insurance Australia Group 300 0.13

27,672 James Hardie Industries 285 0.13

2,245 CSL 267 0.12

95,881 South32 168 0.08

2,830 Rio Tinto 162 0.07

4,025 1.80

Hong Kong - (1.37%)

92,600 AIA Group 787 0.35

613,000 HKT Trust & HKT 767 0.34

64,000 CK Asset Holdings 395 0.18

126,500 Bank of China (Hong Kong) 392 0.18

286,131 Sino Land 378 0.17

57,500 Techtronic Industries 345 0.15

61,000 Galaxy Entertainment Group 324 0.14

264,000 SJM Holdings 236 0.11

3,624 1.62


22,855 Unilever 1,089 0.49

14,526 Koninklijke Philips 498 0.22

9,160 Coca-Cola European Partners 401 0.18

3,879 Heineken 340 0.15

131,252 KPN 319 0.14

5,027 Wolters Kluwer 289 0.13

1,553 ASML Holding 256 0.11

3,192 1.43

Portfolio Statement


236

as at 30 June 2019


Italy - (0.36%)

80,790 Enel 446 0.20

3,415 Ferrari (IT) 433 0.19

42,405 Mediobanca 345 0.15

59,635 Pirelli 277 0.12

29,085 Davide Campari-Milano 223 0.10

117,207 Intesa Sanpaolo 198 0.09

1,922 0.86

Denmark - (0.35%)

8,505 Orsted 586 0.26

11,325 Netcompany Group 354 0.16

239 AP Moller Maersk (B) 231 0.10

2,393 DSV 185 0.08

1,356 0.61

Sweden - (1.09%)

26,529 Lundin Petroleum 652 0.29

84,214 Ericsson (B) 635 0.28

1,287 0.57

Spain - (0.82%)

98,202 Iberdrola 771 0.34

15,072 Ferrovial 305 0.14

128,953 Unicaja Banco 92 0.04

1,168 0.52

Finland - (0.52%)

35,599 Fortum 619 0.28

26,581 Stora Enso 243 0.11

7,600 UPM Kymmene 156 0.07

1,018 0.45

Singapore - (0.46%)

36,283 United Overseas Bank 552 0.25

30,500 DBS Group Holdings 461 0.21

1,013 0.45

Norway - (0.49%)

18,251 Equinor ASA 284 0.13

7,325 Yara International ASA 280 0.13

11,113 Schibsted (A) 242 0.11

13,700 Adevinta (B) 119 0.05

8,215 Adevinta (A) 72 0.03

997 0.45

Belgium - (0.95%)

12,924 KBC Groep 665 0.30

9,007 Umicore 224 0.10

889 0.40

Ireland - (0.00%)

4,300 Linde 676 0.30

676 0.30

Portfolio Statement


237

as at 30 June 2019


Israel - (0.00%)

61,300 Teva Pharmaceutical Industries (ADR) 439 0.20

48,485 Israel Chemicals 200 0.09

639 0.29

Austria - (0.17%)

14,914 Erste Group Bank 434 0.19

434 0.19

Futures - ((0.06)%)

1,900 E-Mini S&P 500 Index Future 20/09/2019 57 0.03

1,500 Mini MSCI Eafe Index Future 20/09/2019 46 0.02

103 0.05



Net assets 223,945 100.00


Portfolio Statement


238

as at 30 June 2019


China - (30.98%)

252,200 Tencent Holdings 8,970 5.47


5,523,400 China Construction Bank (H) 3,746 2.29

492,500 China Mobile 3,534 2.16

938,000 China Resources Land 3,257 1.99

4,776,000 Industrial & Commercial Bank of China (H) 2,743 1.67

195,500 Shenzhou International Group Holdings 2,113 1.29

1,031,000 China Life Insurance (H) 2,000 1.22

418,300 Zhuzhou CRRC Times Electric (H) 1,735 1.06

1,238,420 Zhejiang Sanhua (A) 1,499 0.91

3,134,000 PetroChina (H) 1,363 0.83

2,472,600 China Petroleum & Chemical (H) 1,325 0.81

150,429 Jiangsu Hengrui Medicine (A) 1,139 0.70

138,400 Sunny Optical Technology Group 1,126 0.69

596,800 China International Capital (H) 949 0.58

942,000 Shenzhen Expressway (H) 892 0.54

264,625 Hangzhou Hikvision Digital Technology (A) 838 0.51

279,635 SAIC Motor (A) 818 0.50

3,030,000 China Molybdenum (H) 752 0.46

775,500 China Resources Pharmaceutical Group 690 0.42

651,000 Tong Ren Tang Technologies (H) 611 0.37

865,000 Sinopec Engineering Group (H) 576 0.35

204,700 Focused Photonics Hangzhou (A) 561 0.34

794,000 Dongfeng Motor Group (H) 512 0.31

855,000 SenseTime Group 212 0.13

49,011 29.91

Australia - (18.03%)

41,408 CSL 4,916 3.00

246,691 Westpac Banking 3,859 2.36

131,766 BHP Group 2,995 1.83

53,651 Ramsay Healthcare 2,140 1.31

131,451 Appen 2,032 1.24

118,228 Aristocrat Leisure 2,005 1.22

35,818 Commonwealth Bank Australia 1,637 1.00

1,101,714 Cleanaway Waste Management 1,417 0.86

713,815 Orora 1,273 0.78

324,691 Oil Search 1,268 0.77

391,944 Evolution Mining 944 0.58

416,621 CSR 897 0.55

7,938,620 BGP Holdings 11 0.01

25,394 15.50

Hong Kong - (10.73%)

813,800 AIA Group 6,916 4.22

389,500 Power Assets Holdings 2,209 1.35

306,500 CK Infrastructure Holdings 1,969 1.20

98,100 Hang Seng Bank 1,926 1.18

1,402,000 HKT Trust & HKT 1,755 1.07

120,000 Sun Hung Kai Properties 1,605 0.98

162,500 Link Real Estate Investment Trust 1,575 0.96

Portfolio Statement


239

as at 30 June 2019


168,200 ASM Pacific Technology 1,357 0.83

209,000 Wharf Real Estate Investment 1,161 0.71

880,000 New World Development 1,085 0.66

21,558 13.16

India - (9.71%)

209,882 Reliance Industries 3,001 1.83

117,694 Tata Consultancy Services 2,990 1.82

93,672 HDFC Bank 2,608 1.59

101,319 Housing Development Finance 2,533 1.55

230,435 Container Corporation of India 1,493 0.91

100,533 ICICI Lombard General Insurance 1,271 0.78

132,727 Havells India 1,186 0.72

67,464 Kotak Mahindra Bank 1,135 0.69

110,815 Cummins India 962 0.59

146,096 Future Retail 805 0.49

17,984 10.98

Korea - (10.57%)


55,830 Shinhan Financial Group 1,711 1.04

64,850 Samsung Electronics Preferred 1,691 1.03

50,542 KB Financial Group 1,580 0.96

8,723 SK Telecom 1,539 0.94

14,821 Hyundai Motor 1,411 0.86

32,548 Hyundai Mipo Dockyard 1,098 0.67

9,001 SK Innovation 977 0.60

3,747 Samsung Fire & Marine Insurance 686 0.42

66,524 LG Uplus 659 0.40

17,311 10.56

Taiwan - (10.63%)

1,023,000 Taiwan Semiconductor Manufacturing 6,191 3.78

266,000 MediaTek 2,116 1.29

2,280,000 Mega Financial Holding 1,788 1.09

144,771 Advantech 968 0.59

197,088 Gourmet Master 868 0.53

57,000 ST Shine Optical 797 0.49

182,000 Chroma ATE 637 0.39

13,365 8.16

Singapore - (2.00%)

173,200 United Overseas Bank 2,636 1.61

1,328,400 Keppel (REIT) 1,285 0.78

3,921 2.39

Indonesia - (1.50%)

4,726,500 Astra International 1,958 1.19

7,776,800 Bank Rakyat Indonesia 1,892 1.15

3,850 2.35

Philippines - (0.35%)

3,356,600 Robinsons Land 1,335 0.81

1,988,500 SM Prime Holdings 1,135 0.69

2,470 1.51

Portfolio Statement


240

as at 30 June 2019


Thailand - (2.19%)

104,200 Electricity Generating (F) 870 0.53

672,900 PTT (F) 843 0.51

1,713 1.05

Malaysia - (0.71%)

1,044,900 CIMB Group Holdings Berhad 1,070 0.65

1,448,700 SP Setia 597 0.36

1,667 1.02

New Zealand - (0.67%)

151,638 Fisher & Paykel Healthcare 1,242 0.76

1,242 0.76



3 0.00



Net assets 163,854 100.00


Portfolio Statement


241

as at 30 June 2019



1,400,000 GE Capital UK Funding 8.00% 14/01/2039 EMTN Reg S 2,117 1.95

2,250,000 Gilead Sciences 4.75% 01/03/2046 1,996 1.84

1,972,000 AA Bond 2.875% 31/07/2043 Reg S 1,877 1.73

1,847,000 EDF 6.00% 22/01/2114 144A 1,687 1.55

1,625,000 AT&T 3.15% 04/09/2036 1,645 1.52


2,200,000 BAT International Finance 2.25% 09/09/2052 EMTN Reg S 1,560 1.44

1,250,000 Bank of Scotland 7.281% VRN (Perpetual) 1,526 1.41

1,450,000 Westpac Banking 2.125% 02/05/2025 1,493 1.38

770,000 Thames Water Utilities 7.738% 09/04/2058 Reg S 1,487 1.37

1,400,000 National Grid Gas Finance 2.625% 22/09/2038 EMTN Reg S 1,379 1.27

1,000,000 HSBC Holdings 6.00% 29/03/2040 EMTN Reg S 1,313 1.21

1,100,000 Cadent Finance 2.75% 22/09/2046 EMTN Reg S 1,074 0.99

1,100,000 Petroleos Mexicanos 4.875% 21/02/2028 Reg S 961 0.89

950,000 Barclays 3.00% 08/05/2026 EMTN Reg S 959 0.88

1,150,000 Glencore Funding 4.875% 12/03/2029 144A 953 0.88


600,000 AT&T 7.00% 30/04/2040 EMTN 906 0.83

900,000 Deutsche Bank 1.875% 28/02/2020 EMTN 899 0.83

986,000 CPI Property Group 4.875% VRN (Perpetual) Reg S 870 0.80

600,000 EDF 6.125% 02/06/2034 EMTN 859 0.79


824,000 Quadgas Finance 3.375% 17/09/2029 EMTN Reg S 837 0.77

1,000,000 Credit Agricole 6.875% VRN (Perpetual) 144A 827 0.76

800,000 TSB Banking Group 5.75% VRN 06/05/2026 EMTN 813 0.75

700,000 Prudential 6.25% VRN 20/10/2068 Reg S 797 0.73

900,000 WPP Finance 2010 5.625% 15/11/2043 769 0.71

500,000 Orange 5.375% 22/11/2050 EMTN 750 0.69


800,000 Volkswagen International Finance 2.70% VRN (Perpetual) 726 0.67

662,000 Orsted 2.50% 16/05/2033 EMTN Reg S 687 0.63

650,000 Ladbrokes Group Finance 5.125% 08/09/2023 Reg S 679 0.63

600,000 University of Cambridge 2.35% 27/06/2078 Reg S 640 0.59

625,000 Aroundtown 3.625% 10/04/2031 EMTN Reg S 628 0.58


450,000 Enel Finance International 5.75% 14/09/2040 EMTN 613 0.56

600,000 Abertis Infraestructure 3.375% 27/11/2026 EMTN Reg S 613 0.56


600,000 Daimler International Finance 2.00% 04/09/2023 EMTN Reg S 609 0.56

750,000 Dai-ichi Life Insurance 4.00% VRN (Perpetual) Reg S 598 0.55

550,000 Peabody Capital No 2 3.25% 14/09/2048 Reg S 581 0.54

550,000 Goldman Sachs Group 3.125% 25/07/2029 EMTN Reg S 580 0.54

600,000 Rabobank 4.625% VRN (Perpetual) 577 0.53

550,000 Gatwick Funding 3.125% 28/09/2041 EMTN Reg S 572 0.53


563,000 London & Quadrant Housing Trust 3.125% 28/02/2053 Reg S 570 0.53




500,000 AT&T 4.25% 01/06/2043 555 0.51

500,000 Verizon Communications 3.375% 27/10/2036 550 0.51

Portfolio Statement


242

as at 30 June 2019


525,000 McKesson 3.125% 17/02/2029 544 0.50

500,000 Orbit Capital 3.375% 14/06/2048 Reg S 542 0.50

531,000 Intu SGS Finance 3.875% 17/03/2023 Reg S 532 0.49

600,000 Federal-Mogul / Federal-Mogul Financing 5.00% 15/07/2024 Reg S 532 0.49

350,000 Orsted 5.75% 09/04/2040 EMTN Reg S 529 0.49


500,000 Liberty Living Finance 3.375% 28/11/2029 Reg S 519 0.48


500,000 University of Southampton 2.25% 11/04/2057 Reg S 469 0.43








400,000 Anglian Water Services Finance 2.75% 26/10/2029 EMTN Reg S 428 0.39

400,000 Walmart 5.625% 15/04/2041 421 0.39







500,000 ABN AMRO Bank 3.40% 27/08/2021 144A 402 0.37

400,000 CYBG 5.00% VRN 09/02/2026 Reg S 400 0.37

300,000 Southern Electric Power Distribution 5.50% 07/06/2032 399 0.37

475,000 UniCredit 6.572% 14/01/2022 144A 398 0.37

350,000 Royal London Finance Bonds 6.125% VRN 30/11/2043 Reg S 394 0.36

260,000 Eastern Power Networks 6.25% VRN 12/11/2036 EMTN Reg S 393 0.36

475,000 Glencore Funding 4.125% 12/03/2024 144A 388 0.36

400,000 Vodafone Group 3.375% 08/08/2049 EMTN Reg S 383 0.35

250,000 Veolia Environnement 6.125% 29/10/2037 EMTN 380 0.35



250,000 Walmart Stores 5.625% 27/03/2034 367 0.34

328,000 Fiserv 3.00% 01/07/2031 333 0.31

400,000 Svenska Handelsbanken 6.25% VRN (Perpetual) EMTN Reg S 333 0.31

326,000 Manchester Airport Group Funding 2.875% 30/09/2044 EMTN Reg S 329 0.30

300,000 WM Treasury 3.25% 20/10/2048 Reg S 322 0.30

300,000 CPUK Finance 3.69% 28/02/2047 Reg S 321 0.30

300,000 Annington Funding 3.685% 12/07/2034 Reg S 318 0.29

318,000 NewRiver (REIT) 3.50% 07/03/2028 Reg S 318 0.29




350,000 Lyondell Basell International Finance 4.875% 15/03/2044 293 0.27

350,000 ING Groep 6.75% VRN (Perpetual) Reg S 287 0.26


300,000 Bankia 3.75% VRN 15/02/2029 EMTN Reg S 285 0.26


Portfolio Statement


243

as at 30 June 2019


273,000 Next Group 3.00% 26/08/2025 Reg S 280 0.26

200,000 Northumbrian Water Finance 5.125% 23/01/2042 280 0.26

250,000 Society of Lloyds 4.875% VRN 07/02/2047 Reg S 274 0.25

250,000 Legal & General Group 5.125% VRN 14/11/2048 Reg S 274 0.25



250,000 Home Group 3.125% 27/03/2043 Reg S 254 0.23



250,000 Akelius Residential 2.375% 15/08/2025 EMTN Reg S 249 0.23

200,000 Phoenix Group Holdings Capital 5.75% 07/07/2021 Reg S 215 0.20





203,000 TP ICAP 5.25% 29/05/2026 Reg S 207 0.19

200,000 Westfield America Management 2.625% 30/03/2029 Reg S 206 0.19

150,000 Severn Trent Water Utilities Finance 4.875% 24/01/2042 EMTN Reg S 205 0.19




200,000 KBC Groep 4.75% VRN (Perpetual) Reg S 190 0.18

200,000 Phoenix Group Holdings 5.75% VRN (Perpetual) Reg S 177 0.16




50,000 Yorkshire Water Services 6.375% 19/08/2039 81 0.07

53,000 Yorkshire Water Services 6.6011% 17/04/2031 78 0.07

50,000 Yorkshire Power Finance 7.25% 04/08/2028 71 0.07


74,208 68.36


7,350,000 UK Gilt 3.50% 22/07/2068 12,926 11.91

5,150,000 UK Gilt 3.75% 22/07/2052 Reg S 8,308 7.65

200,000 UK Gilt 4.25% 07/12/2055 362 0.33

21,596 19.89


1,732,000 Dignity Finance 4.6956% 31/12/2049 Reg S 1,397 1.29

832,119 Tesco Property Finance 1 7.6227% 13/07/2039 1,222 1.13

808,009 Tesco Property Finance 2 6.0517% 13/10/2039 1,063 0.98

900,000 Newday Partnership Funding 2017 1 1.4765% VRN 15/12/2027 Reg S 890 0.82

800,000 Abu Dhabi Crude Oil Pipeline 4.60% 02/11/2047 Reg S 691 0.64

550,000 Elm 4.50% VRN (Perpetual) EMTN Reg S 566 0.52


416,100 UPP Bond 1 Issuer 4.9023% 28/02/2040 EMTN Reg S 523 0.48


300,000 Broadgate Financing 4.999% 05/10/2031 Reg S 366 0.34




Portfolio Statement


244

as at 30 June 2019




158,372 Bishopsgate Asset Finance 4.808% 14/08/2044 185 0.17

9,418 8.68


1,200,000 Saudi Arabia 3.25% 26/10/2026 Reg S 964 0.89

825,000 Qatar 3.375% 14/03/2024 Reg S 671 0.62

750,000 Kuwait 3.50% 20/03/2027 Reg S 629 0.58

350,000 Romania 4.625% 03/04/2049 Reg S 379 0.35

2,643 2.43











2,300,000 Receive fixed 3.22% pay float NZD Bank Bill 3 Month Index 29/01/2028 152 0.14







900,000 Receive fixed 3.2425% pay float New Zealand Bank Bill 3 Month Index 05/02/2028 60 0.06

500,000 Receive fixed 3.305% pay float NZD Bank Bill 3 Month Index 12/02/2028 35 0.03



1,400,000 Receive fixed 0.0728% pay float 6 Month EURIBOR 18/01/2022 14 0.01

100,000 Pay fixed 1.4067% receive float 6 Month GBP LIBOR 03/01/2029 (3) 0.00

800,000 Pay fixed 0.1553% receive float 6 Month CHF LIBOR 11/06/2029 (5) 0.00

402,900,000 Receive fixed 0.0085% pay float 6 Month JPY LIBOR 24/06/2029 (10) (0.01)



350,000 Pay fixed 1.6502% receive float 6 Month GBP LIBOR 20/06/2048 (37) (0.03)










3,600,000 Pay fixed 2.981% receive float 6 Month AUD Bank Bill 29/01/2028 (245) (0.23)



Portfolio Statement


245

as at 30 June 2019





562 0.52

Futures - (0.08%)

4,800,000 US Ultra Bond Commodity Future 19/09/2019 150 0.14





(200,000) EURO BUXL 30 Year Commodity Future 06/09/2019 (10) (0.01)






122 0.11


0 Fidelity Institutional Liquidity Fund - Sterling A Acc 4 0.00

4 0.00

Inflation Index Swap - (0.06%)

2,250,000 Receive fixed 3.55% pay float UK Retail Price Index 15/01/2027 6 0.01

3,750,000 Pay fixed 2.2775% receive float US Urban CPI Consumer Index 26/01/2026 (106) (0.10)

6,000,000 Pay fixed 2.29% receive float US Urban CPI Consumer Index 27/01/2026 (175) (0.16)

(275) (0.25)


12,567,000 Bought NOK sold GBP @ 0.087571 for settlement 14/08/2019 62 0.06

1,404,000 Bought EUR sold GBP @ 0.878720 for settlement 14/08/2019 28 0.03

3,000,000 Bought SEK sold GBP @ 0.080043 for settlement 14/08/2019 15 0.01




(314,000) Bought GBP sold CHF @ 1.257483 for settlement 14/08/2019 (5) 0.00



(12,567,000) Bought GBP sold NOK @ 11.388336 for settlement 14/08/2019 (59) (0.05)



(635) (0.58)

Portfolio Statement


246

as at 30 June 2019





(1,197) (1.10)



Net assets 108,562 100.00


Portfolio Statement


247

as at 30 June 2019



34,560,000 UK Gilt 4.75% 07/12/2030 48,861 7.77

21,920,000 UK Gilt 4.25% 07/09/2039 Reg S 33,083 5.26

15,295,000 UK Gilt 3.75% 22/07/2052 Reg S 24,674 3.92

14,250,000 UK Gilt 4.75% 07/12/2038 22,613 3.60

20,000,000 UK Gilt 2.75% 07/09/2024 Reg S 22,171 3.53

12,190,000 UK Gilt 4.25% 07/12/2055 22,076 3.51

15,000,000 UK Gilt 2.25% 07/09/2023 Reg S 16,027 2.55

14,000,000 UK Gilt 1.50% 22/07/2026 Reg S 14,791 2.35

9,810,000 UK Gilt 4.50% 07/09/2034 Reg S 14,328 2.28

7,700,000 UK Gilt 4.00% 22/01/2060 Reg S 13,957 2.22

7,800,000 UK Gilt 4.25% 07/12/2049 13,170 2.09

12,175,000 UK Gilt 3.75% 07/09/2021 Reg S 13,015 2.07

7,750,000 UK Gilt 4.50% 07/12/2042 12,505 1.99

11,220,000 UK Gilt 4.00% 07/03/2022 12,251 1.95

10,450,000 UK Gilt 1.50% 22/01/2021 Reg S 10,595 1.69

5,100,000 UK Gilt 3.50% 22/07/2068 8,969 1.43

5,700,000 UK Gilt 4.25% 07/12/2040 Reg S 8,715 1.39

6,180,000 UK Gilt 1.75% 07/09/2022 6,412 1.02

2,160,000 UK Gilt 4.25% 07/03/2036 3,135 0.50

1,700,000 UK Gilt 3.50% 22/01/2045 Reg S 2,437 0.39

1,750,000 UK Gilt 1.50% 22/07/2047 Reg S 1,765 0.28

320,000 UK Gilt 4.25% 07/12/2027 412 0.07

100,000 UK Gilt 6.00% 07/12/2028 147 0.02

326,109 51.87


4,260,000 America Movil 4.948% 22/07/2033 5,539 0.88




3,100,000 EDF 6.00% 23/01/2114 EMTN Reg S 4,854 0.77

4,727,000 DNB Bank 1.625% 15/12/2023 EMTN Reg S 4,775 0.76







3,800,000 Deutsche Bank 1.875% 28/02/2020 EMTN 3,797 0.60

4,450,000 Credit Agricole 6.875% VRN (Perpetual) 144A 3,683 0.59

3,483,000 Orsted 2.50% 16/05/2033 EMTN Reg S 3,614 0.57


3,300,000 Gazprom Capital Luxembourg 4.25% 06/04/2024 Reg S 3,496 0.56

3,285,000 Berkshire Hathaway Finance 2.625% 19/06/2059 3,460 0.55

3,611,000 AA Bond 2.875% 31/07/2043 Reg S 3,437 0.55

3,010,000 Society of Lloyds 4.75% 30/10/2024 Reg S 3,324 0.53

3,295,000 Motability Operations Group 1.75% 03/07/2029 EMTN Reg S 3,247 0.52



2,704,000 Royal London Finance Bonds 6.125% VRN 30/11/2043 Reg S 3,042 0.48

3,200,000 Blackstone Property Partners EUR Holdings 2.20% 24/07/2025 EMTN Reg S 3,028 0.48

Portfolio Statement


248

as at 30 June 2019




2,700,000 Phoenix Group Holdings Capital 5.75% 07/07/2021 Reg S 2,902 0.46


1,715,000 Lloyds Bank 6.50% 17/09/2040 EMTN Reg S 2,794 0.44

2,450,000 BHP Billiton Finance 6.50% VRN 22/10/2077 Reg S 2,782 0.44

2,800,000 Shaftesbury Carnaby 2.487% 30/09/2031 2,754 0.44

2,638,000 AA Bond 4.2487% 31/07/2043 Reg S 2,676 0.43



2,760,000 KKR Group Finance V 1.625% 22/05/2029 Reg S 2,525 0.40


2,694,000 Bristol-Myers Squibb 4.25% 26/10/2049 144A 2,312 0.37



2,200,000 RAC Bond 4.565% 06/05/2046 EMTN Reg S 2,187 0.35

1,750,000 Clydesdale Bank 4.625% 08/06/2026 EMTN 2,127 0.34

2,121,000 Gatwick Funding 2.875% 05/07/2051 Reg S 2,079 0.33

2,200,000 Danske Bank 1.375% 24/05/2022 EMTN Reg S 2,018 0.32

1,900,000 Ford Motor Credit 4.535% 06/03/2025 EMTN 1,994 0.32

2,140,000 EDF 6.00% 22/01/2114 144A 1,955 0.31

2,200,000 Federal-Mogul / Federal-Mogul Financing 5.00% 15/07/2024 Reg S 1,952 0.31


1,850,000 Fiserv 3.00% 01/07/2031 1,876 0.30


1,850,000 CYBG 5.00% VRN 09/02/2026 Reg S 1,852 0.29

1,900,000 Vodafone Group 3.375% 08/08/2049 EMTN Reg S 1,821 0.29

1,250,000 THFC Funding No 3 5.20% 11/10/2043 EMTN Reg S 1,766 0.28

1,200,000 Walmart Stores 5.625% 27/03/2034 1,764 0.28

1,550,000 Zurich Finance (UK) 6.625% VRN (Perpetual) EMTN 1,739 0.28

3,769,000 Rowan Companies 5.40% 01/12/2042 1,738 0.28

1,850,000 Logicor Financing SARL 1.50% 14/11/2022 EMTN Reg S 1,716 0.27

1,665,000 Manchester Airport Group Funding 2.875% 30/09/2044 EMTN Reg S 1,680 0.27

1,688,000 Aroundtown 4.75% VRN (Perpetual) Reg S 1,665 0.26

1,550,000 WM Treasury 3.25% 20/10/2048 Reg S 1,665 0.26

1,900,000 Pershing Square Holdings 5.50% 15/07/2022 Reg S 1,558 0.25

1,700,000 CPI Property Group 1.45% 14/04/2022 EMTN Reg S 1,545 0.25

1,478,000 Barclays 7.125% VRN (Perpetual) 1,541 0.25

1,600,000 KBC Groep 4.75% VRN (Perpetual) Reg S 1,521 0.24

1,800,000 Svenska Handelsbanken 6.25% VRN (Perpetual) EMTN Reg S 1,500 0.24

1,400,000 Anglian Water Services Finance 2.75% 26/10/2029 EMTN Reg S 1,497 0.24

1,725,000 New York Life Insurance 4.45% 15/05/2069 144A 1,496 0.24

1,493,000 NewRiver (REIT) 3.50% 07/03/2028 Reg S 1,492 0.24

1,400,000 Volkswagen International Finance 3.375% 16/11/2026 Reg S 1,459 0.23

859,000 Engie 5.95% 16/03/2111 EMTN Reg S 1,457 0.23

1,725,000 UniCredit 6.572% 14/01/2022 144A 1,444 0.23

1,393,000 Fidelity National Information Services 2.602% 21/05/2025 1,432 0.23

1,500,000 Bankia 3.75% VRN 15/02/2029 EMTN Reg S 1,425 0.23

1,325,000 National Grid Electric Transmission 2.75% 06/02/2035 EMTN Reg S 1,423 0.23


1,750,000 ABN AMRO Bank 3.40% 27/08/2021 144A 1,407 0.22

1,372,000 Next Group 3.00% 26/08/2025 Reg S 1,405 0.22

Portfolio Statement


249

as at 30 June 2019


1,400,000 Intu SGS Finance 4.25% 17/09/2035 EMTN Reg S 1,396 0.22

1,700,000 ING Groep 6.75% VRN (Perpetual) Reg S 1,392 0.22

1,300,000 CPUK Finance 3.69% 28/02/2047 Reg S 1,389 0.22

1,250,000 Society of Lloyds 4.875% VRN 07/02/2047 Reg S 1,372 0.22

1,030,000 British Land 5.264% 24/09/2035 1,371 0.22

1,400,000 Volkswagen Bank 1.875% 31/01/2024 EMTN Reg S 1,315 0.21

1,400,000 Apple 4.65% 23/02/2046 1,303 0.21

1,400,000 Phoenix Group Holdings 5.75% VRN (Perpetual) Reg S 1,242 0.20

1,175,000 Yorkshire Building Society 3.00% VRN 18/04/2025 Reg S 1,194 0.19

900,000 IPIC GMTN 6.875% 14/03/2026 EMTN Reg S 1,177 0.19

1,100,000 Assura Financing 3.00% 19/07/2028 Reg S 1,171 0.19

1,150,000 Home Group 3.125% 27/03/2043 Reg S 1,167 0.19

1,030,000 Glencore Finance (Europe) 6.00% VRN 03/04/2022 Reg S 1,142 0.18

1,112,000 TP ICAP 5.25% 29/05/2026 Reg S 1,134 0.18

1,100,000 Provident Financial 7.00% 04/06/2023 EMTN Reg S 1,117 0.18

1,072,000 Intu SGS Finance 4.625% 17/03/2028 Reg S 1,104 0.18


1,050,000 TSB Banking Group 5.75% VRN 06/05/2026 EMTN 1,067 0.17

1,357,000 Mexico City Airport Trust 5.50% 31/07/2047 Reg S 1,063 0.17

850,000 Lloyds Bank 4.875% 30/03/2027 EMTN 1,059 0.17

1,000,000 Close Brothers Group 4.25% 24/01/2027 Reg S 1,047 0.17



1,000,000 Yorkshire Building Society 3.375% VRN 13/09/2028 EMTN Reg S 957 0.15

1,210,000 Scentre Management 2.375% 05/11/2019 144A 953 0.15


700,000 Aviva 6.875% VRN 20/05/2058 EMTN 899 0.14



680,000 Massachusetts Institute of Technology 5.60% 01/07/2111 807 0.13


900,000 Credit Agricole Assurances 2.625% VRN 29/01/2048 796 0.13


700,000 EDF 5.875% VRN (Perpetual) Reg S 740 0.12

600,000 Investec Bank 9.625% 17/02/2022 EMTN Reg S 706 0.11



650,000 Virgin Media Secured Finance 6.25% 28/03/2029 Reg S 686 0.11




620,000 PRS Finance 2.00% 23/01/2029 Reg S 649 0.10




450,000 America Movil 5.00% 27/10/2026 544 0.09






400,000 Empresa de Transporte de Pasajeros Metro 4.75% 04/02/2024 Reg S 340 0.05

Portfolio Statement


250

as at 30 June 2019



200,000 PGH Capital 6.625% 18/12/2025 220 0.03

150,000 Petroleos Mexicanos 8.25% 02/06/2022 EMTN Reg S 164 0.03


160,000 Westpac Banking 3.35% 08/03/2027 131 0.02

120,000 Aviva 5.125% VRN 04/06/2050 EMTN Reg S 130 0.02

100,000 Investec 4.50% 05/05/2022 EMTN Reg S 107 0.02

100,000 Close Brothers Finance 3.875% 27/06/2021 EMTN Reg S 105 0.02

50,000 AT&T 7.00% 30/04/2040 EMTN 76 0.01

50,000 Southern Electric Power Distribution 5.50% 07/06/2032 67 0.01

50,000 HSBC Holdings 6.75% 11/09/2028 Reg S 65 0.01

60,000 Microsoft 4.75% 03/11/2055 60 0.01


635,000 Cattles 6.875% VRN 17/01/2014 EMTN (Defaulted) 0 0.00

250,863 39.90



4,100,000 Abu Dhabi Crude Oil Pipeline 4.60% 02/11/2047 Reg S 3,543 0.56

2,912,750 Income Contingent Student Loans 1 2002-2006 2.50% 24/07/2056 Reg S 2,872 0.46

1,684,061 Tesco Property Finance 2 6.0517% 13/10/2039 2,216 0.35

1,585,384 Together Asset Backed Securitisation 1 1.7927% VRN 12/03/2049 Reg S 1,587 0.25


1,200,000 Broadgate Financing 4.999% 05/10/2031 Reg S 1,463 0.23

1,600,000 Taurus 2019-1 FR Srl 1.00% VRN 02/02/2031 Reg S 1,439 0.23

1,375,000 SLM Student Loan Trust FRN 5.15% 15/12/2039 Reg S 1,307 0.21


1,248,817 Together Asset Backed Securitisation 2018-1 1.9727% VRN 12/07/2050 Reg S 1,252 0.20

1,200,000 Greene King Finance 3.593% 15/03/2035 Reg S 1,244 0.20

900,502 Highbury Finance 7.017% 20/03/2023 1,032 0.16

824,825 Telereal Securitisation 5.5534% 10/12/2033 1,002 0.16



739,075 Empresa Electrica Angamos 4.875% 25/05/2029 Reg S 607 0.10

500,000 RHP Finance 3.25% 05/02/2048 Reg S 535 0.09

577,688 Sprint Spectrum 3.36% 20/03/2023 144A 455 0.07


366,098 Premiertel 6.175% 08/05/2032 437 0.07





190,000 Peel South East 10.00% 30/04/2026 268 0.04




160,000 Greene King Finance 5.702% 15/12/2034 130 0.02

45,264 Aspire Defence Finance 4.674% 31/03/2040 58 0.01



33,466 5.32

Portfolio Statement


251

as at 30 June 2019



6,350,000 Saudi Arabia 3.25% 26/10/2026 Reg S 5,100 0.81

4,500,000 Qatar 2.375% 02/06/2021 Reg S 3,543 0.56

3,950,000 Qatar 3.375% 14/03/2024 Reg S 3,214 0.51

3,200,000 Kuwait 2.75% 20/03/2022 Reg S 2,554 0.41

1,750,000 Mexico 5.625% 19/03/2114 EMTN 1,809 0.29

1,650,000 Romania 4.625% 03/04/2049 Reg S 1,787 0.28

200,000 Qatar 3.25% 02/06/2026 Reg S 162 0.03

18,169 2.89

Municipal Bond - (0.32%)

2,370,000 University of California Revenues 4.858% 15/05/2112 2,265 0.36

2,265 0.36


15,000,000 Receive fixed 2.9077% pay float 6 Month AUD Bank Bill 12/10/2028 1,007 0.16












2,200,000 Receive fixed 3.2425% pay float New Zealand Bank Bill 3 Month Index 05/02/2028 148 0.02







1,300,300,000 Receive fixed 0.0085% pay float 6 Month JPY LIBOR 24/06/2029 (34) (0.01)
















834 0.13

Portfolio Statement


252

as at 30 June 2019




16 0.00

Futures - ((0.01)%)


2,200,000 US 10 Year Ultra Future 19/09/2019 17 0.00

(2,800,000) US 5 Year Treasury Note (CBT) Commodity Future 30/09/2019 3 0.00

(8,100,000) Euro-Schatz Commodity Future 06/09/2019 (4) 0.00





(5,000,000) US 20 Year Long Bond (CBT) Commodity Future 19/09/2019 (127) (0.02)


(8,100,000) US Ultra Bond Commodity Future 19/09/2019 (256) (0.04)

(683) (0.11)



(2,181,000) Bought GBP sold USD @ 1.266917 for settlement 14/08/2019 6 0.00


(59,634,000) Bought GBP sold USD @ 1.306058 for settlement 14/08/2019 (1,244) (0.20)

(39,680,000) Bought GBP sold EUR @ 1.156994 for settlement 14/08/2019 (1,356) (0.22)

(2,622) (0.42)



Net assets 628,690 100.00


Portfolio Statement


253

as at 30 June 2019



7,000,000 European Investment Bank 5.625% 07/06/2032 10,458 2.97



5,650,000 Westpac Banking 2.125% 02/05/2025 5,820 1.65


3,875,000 Barclays Bank 10.00% 21/05/2021 EMTN 4,453 1.27


3,450,000 Glencore Finance (Europe) 6.00% VRN 03/04/2022 Reg S 3,824 1.09

2,400,000 EDF 6.00% 23/01/2114 EMTN Reg S 3,758 1.07


3,600,000 Deutsche Bank 1.875% 28/02/2020 EMTN 3,597 1.02

4,390,000 Westpac Banking 3.35% 08/03/2027 3,595 1.02

3,230,000 Aviva 5.125% VRN 04/06/2050 EMTN Reg S 3,507 1.00

3,234,000 DNB Bank 1.625% 15/12/2023 EMTN Reg S 3,267 0.93



2,890,000 Society of Lloyds 4.75% 30/10/2024 Reg S 3,191 0.91



2,550,000 Lloyds Bank 4.875% 30/03/2027 EMTN 3,177 0.90

3,000,000 Banco Santander 2.75% 12/09/2023 EMTN Reg S 3,101 0.88

2,650,000 Phoenix Group Holdings Capital 5.75% 07/07/2021 Reg S 2,848 0.81


1,587,000 Engie 5.95% 16/03/2111 EMTN Reg S 2,691 0.76

2,680,000 UBS 1.25% 10/12/2020 EMTN Reg S 2,683 0.76

2,359,000 Royal London Finance Bonds 6.125% VRN 30/11/2043 Reg S 2,654 0.75


2,597,000 Quadgas Finance 3.375% 17/09/2029 EMTN Reg S 2,638 0.75




2,475,000 Western Power Distribution 3.50% 16/10/2026 Reg S 2,580 0.73


2,289,000 Petrobras Global Finance 6.625% 16/01/2034 2,546 0.72

1,700,000 RWE Finance 6.125% 06/07/2039 EMTN 2,528 0.72

2,070,000 Massachusetts Institute of Technology 5.60% 01/07/2111 2,455 0.70



2,375,000 Shaftesbury Carnaby 2.487% 30/09/2031 2,336 0.66

2,450,000 EDF 6.00% 22/01/2114 144A 2,239 0.64

2,124,000 Orsted 2.50% 16/05/2033 EMTN Reg S 2,204 0.63

1,550,000 University of Cambridge 3.75% 17/10/2052 2,188 0.62


2,000,000 Virgin Media Secured Finance 6.25% 28/03/2029 Reg S 2,112 0.60


1,350,000 Rabobank 5.25% 23/05/2041 GMTN 2,069 0.59





1,850,000 University of Cambridge 2.35% 27/06/2078 Reg S 1,975 0.56

Portfolio Statement


254

as at 30 June 2019



1,550,000 Apple 3.60% 31/07/2042 1,934 0.55

1,875,000 Unilever 1.875% 15/09/2029 EMTN Reg S 1,912 0.54

1,350,000 RWE Finance 6.25% 03/06/2030 EMTN 1,841 0.52


1,750,000 London & Quadrant Housing Trust 2.625% 05/05/2026 Reg S 1,816 0.52


1,864,000 AA Bond 2.875% 31/07/2043 Reg S 1,774 0.50

1,750,000 CYBG 5.00% VRN 09/02/2026 Reg S 1,752 0.50



1,100,000 AT&T 7.00% 30/04/2040 EMTN 1,661 0.47


1,500,000 Orbit Capital 3.375% 14/06/2048 Reg S 1,625 0.46

1,250,000 HSBC Holdings 6.75% 11/09/2028 Reg S 1,618 0.46

1,550,000 Liberty Living Finance 3.375% 28/11/2029 Reg S 1,608 0.46

1,590,000 Microsoft 4.75% 03/11/2055 1,581 0.45


1,500,000 Annington Funding 3.184% 12/07/2029 EMTN Reg S 1,552 0.44


1,850,000 Pershing Square Holdings 5.50% 15/07/2022 Reg S 1,517 0.43


1,600,000 Logicor Financing SARL 1.50% 14/11/2022 EMTN Reg S 1,484 0.42




1,350,000 UNITE (USAF) II 3.374% 30/06/2028 1,439 0.41

1,350,000 Close Brothers Finance 3.875% 27/06/2021 EMTN Reg S 1,418 0.40


1,325,000 McKesson 3.125% 17/02/2029 1,374 0.39


1,250,000 Investec 4.50% 05/05/2022 EMTN Reg S 1,333 0.38


1,150,000 Time Warner Cable 5.25% 15/07/2042 1,314 0.37

1,200,000 EDF 6.95% 26/01/2039 144A 1,313 0.37




1,550,000 ABN AMRO Bank 3.40% 27/08/2021 144A 1,246 0.35

950,000 IPIC GMTN 6.875% 14/03/2026 EMTN Reg S 1,242 0.35


1,150,000 WM Treasury 3.25% 20/10/2048 Reg S 1,236 0.35

1,150,000 Annington Funding 3.685% 12/07/2034 Reg S 1,218 0.35

1,100,000 Admiral Group 5.50% 25/07/2024 Reg S 1,217 0.35

1,540,000 Scentre Management 2.375% 05/11/2019 144A 1,213 0.34


1,200,000 Intu SGS Finance 4.25% 17/09/2035 EMTN Reg S 1,196 0.34

1,425,000 UniCredit 6.572% 14/01/2022 144A 1,193 0.34


800,000 Walmart Stores 5.625% 27/03/2034 1,176 0.33



Portfolio Statement


255

as at 30 June 2019





820,000 British Land 5.264% 24/09/2035 1,091 0.31

1,060,000 Fiserv 3.00% 01/07/2031 1,075 0.31


1,049,000 NewRiver (REIT) 3.50% 07/03/2028 Reg S 1,048 0.30



850,000 Investec Bank 9.625% 17/02/2022 EMTN Reg S 1,000 0.28

1,150,000 New York Life Insurance 4.45% 15/05/2069 144A 997 0.28

1,000,000 Volkswagen International Finance 2.625% 16/11/2027 Reg S 975 0.28

1,050,000 Blackstone Property Partners EUR Holdings 1.40% 06/07/2022 EMTN Reg S 963 0.27



903,000 Next Group 3.00% 26/08/2025 Reg S 925 0.26

1,180,000 Mexico City Airport Trust 5.50% 31/07/2047 Reg S 924 0.26

1,000,000 Phoenix Group Holdings 5.75% VRN (Perpetual) Reg S 887 0.25

955,000 Comcast 4.70% 15/10/2048 879 0.25







800,000 Home Group 3.125% 27/03/2043 Reg S 812 0.23

900,000 Credit Agricole Assurances 2.625% VRN 29/01/2048 796 0.23

650,000 America Movil 5.00% 27/10/2026 785 0.22










668,000 TP ICAP 5.25% 29/05/2026 Reg S 681 0.19




500,000 America Movil 4.375% 07/08/2041 632 0.18

350,000 Rabobank 5.375% 03/08/2060 EMTN 622 0.18


585,000 Comcast 4.95% 15/10/2058 555 0.16

515,000 PRS Finance 2.00% 23/01/2029 Reg S 539 0.15

400,000 Freshwater Finance 5.182% 20/04/2035 539 0.15



450,000 Petroleos Mexicanos 8.25% 02/06/2022 EMTN Reg S 492 0.14



Portfolio Statement


256

as at 30 June 2019


355,000 AA Bond 4.2487% 31/07/2043 Reg S 360 0.10




200,000 PGH Capital 6.625% 18/12/2025 220 0.06


1,485,000 TXU Eastern Funding 7.25% 08/03/2030 EMTN (Defaulted) 0 0.00



284,539 80.86



2,140,561 Tesco Property Finance 3 5.744% 13/04/2040 Reg S 2,795 0.79

1,718,082 Tesco Property Finance 2 6.0517% 13/10/2039 2,261 0.64

1,430,000 Canary Wharf Finance II 5.952% 22/10/2037 2,063 0.59


1,433,249 Juturna European Loan Conduit No 16 5.0636% 10/08/2033 EMTN Reg S 1,792 0.51

1,240,220 Aspire Defence Finance 4.674% 31/03/2040 1,591 0.45


1,300,000 Swan Housing Capital 3.625% 05/03/2048 Reg S 1,401 0.40



1,200,000 Channel Link Enterprises Finance 3.043% VRN 30/06/2050 Reg S 1,230 0.35

1,175,371 Together Asset Backed Securitisation 1 1.7927% VRN 12/03/2049 Reg S 1,177 0.33

1,217,178 SLM Student Loan Trust FRN 5.15% 15/12/2039 Reg S 1,157 0.33


835,152 Tesco Property Finance 5 5.6611% 13/10/2041 Reg S 1,072 0.30

933,853 Highbury Finance 7.017% 20/03/2023 1,070 0.30

870,228 Telereal Securitisation 5.5534% 10/12/2033 1,058 0.30

840,000 Equity Release Funding 3 5.05% 26/04/2033 1,053 0.30


1,075,000 Taurus 2019-1 FR Srl 1.00% VRN 02/02/2031 Reg S 967 0.27




650,000 RHP Finance 3.25% 05/02/2048 Reg S 695 0.20



475,117 Bishopsgate Asset Finance 4.808% 14/08/2044 556 0.16



280,000 Peel South East 10.00% 30/04/2026 395 0.11

325,916 Premiertel 6.175% 08/05/2032 389 0.11




39,105 11.11



15,019 4.27

Portfolio Statement


257

as at 30 June 2019



4,050,000 Qatar 2.375% 02/06/2021 Reg S 3,188 0.91

2,750,000 Kuwait 3.50% 20/03/2027 Reg S 2,307 0.66

2,775,000 Qatar 3.375% 14/03/2024 Reg S 2,258 0.64

1,450,000 Mexico 5.625% 19/03/2114 EMTN 1,499 0.43

1,125,000 Romania 4.625% 03/04/2049 Reg S 1,219 0.35

10,471 2.98


1,080,000 UK Gilt 4.25% 07/12/2046 1,759 0.50

1,550,000 UK Gilt 1.50% 22/07/2047 Reg S 1,563 0.44

3,322 0.94



1,845 0.52















900,000 Receive fixed 3.2425% pay float New Zealand Bank Bill 3 Month Index 05/02/2028 60 0.02

660,000 Receive fixed 3.305% pay float NZD Bank Bill 3 Month Index 12/02/2028 46 0.01




1,700,000 Pay fixed 0.1553% receive float 6 Month CHF LIBOR 11/06/2029 (10) 0.00

2,100,000 Pay fixed 1.3287% receive float 3 Month STIBOR 29/01/2028 (14) 0.00

643,500,000 Receive fixed 0.0085% pay float 6 Month JPY LIBOR 24/06/2029 (17) 0.00














760 0.22

Portfolio Statement


258

as at 30 June 2019


Futures - ((0.07)%)


300,000 US 20 Year Long Bond (CBT) Commodity Future 19/09/2019 5 0.00


(1,400,000) US 5 Year Treasury Note (CBT) Commodity Future 30/09/2019 (15) 0.00





(7,500,000) US Ultra Bond Commodity Future 19/09/2019 (237) (0.07)


(661) (0.19)









(1,983) (0.56)


20,000,000 Bought Protection on ITRAXX XOver S31 20/06/2024 (2,023) (0.57)

(2,023) (0.57)



Net assets 351,871 100.00


Portfolio Statement

UK Fund

259

as at 30 June 2019



695,118 Fidelity Special Situations Fund - W Acc 25,594 9.61

319,078 Prudential 5,435 2.04

780,687 HSBC Holdings 5,120 1.92

7,665,118 Lloyds Banking Group 4,359 1.64

1,786,945 RBS Group 3,899 1.46

48,095 London Stock Exchange 2,659 1.00

356,064 Phoenix Group Holdings 2,516 0.94

221,460 St James Place 2,433 0.91

378,641 British Land 2,021 0.76

74,962 Admiral Group 1,651 0.62

97,228 Hiscox 1,646 0.62

1,076,887 Greencoat UK Wind 1,521 0.57

536,257 Legal & General Group 1,450 0.54

340,546 Jupiter Fund Management 1,442 0.54

261,064 Beazley 1,436 0.54

197,638 Liontrust Asset Management 1,431 0.54


1,467,227 IP Group 1,097 0.41

645,876 Primary Health Properties 864 0.32

258,089 Direct Line Insurance Group 854 0.32

111,447 Great Portland Estates 764 0.29

47,855 Close Brothers Group 678 0.25

88,411 Lancashire Holdings 608 0.23

118,321 Investec 603 0.23

425,692 Redde 439 0.16

81,233 Chesnara 274 0.10


71,935 27.01

Consumer Goods - (13.24%)

286,368 Diageo 9,684 3.64

186,561 Unilever 9,091 3.41

52,198 Reckitt Benckiser Group 3,224 1.21

105,039 British American Tobacco 2,899 1.09

100,737 Imperial Brands 1,875 0.70

71,417 Cranswick 1,830 0.69

44,374 Coca-Cola 1,787 0.67

33,295 Berkeley Group Holdings 1,226 0.46

250,756 Headlam Group 1,204 0.45

57,690 Persimmon 1,143 0.43

82,740 Tate & Lyle 612 0.23

34,107 Nichols 583 0.22

35,158 13.20

Consumer Services - (13.61%)

785,140 International Consolidated Airlines Group 3,704 1.39

165,772 Compass Group 3,130 1.18

151,316 RELX 2,898 1.09

389,030 Rightmove 2,065 0.78

39,412 InterContinental Hotels Group 2,039 0.77

210,236 Pearson 1,731 0.65

179,559 Ryanair Holdings (GB) 1,611 0.60

Portfolio Statement

UK Fund

260

as at 30 June 2019


189,969 Informa 1,587 0.60

561,750 Dominos Pizza UK & Ireland 1,572 0.59

240,430 GVC Holdings 1,550 0.58

73,668 WHSmith 1,453 0.55

135,724 WPP 1,338 0.50

21,945 Next 1,233 0.46

121,340 easyJet 1,131 0.42

429,968 Cineworld Group 1,082 0.41

534,154 Wm Morrison Supermarkets 1,078 0.40

466,607 EI Group 919 0.35

45,941 Go-Ahead Group 903 0.34

17,566 Wizz Air Holdings 594 0.22

24,731 Greggs 571 0.21

393,333 Stagecoach Group 507 0.19

74,275 Dignity 485 0.18

59,472 Just Eat 371 0.14

42,076 Inchcape 260 0.10

33,812 12.70

Oil & Gas - (7.81%)

2,148,220 BP 11,794 4.43

404,707 Royal Dutch Shell (A) 10,448 3.92

800,831 Cairn Energy 1,384 0.52

51,925 Royal Dutch Shell (B) 1,344 0.50

10,774 Pioneer Natural Resources 1,281 0.48

511,218 Gulf Keystone Petroleum 1,140 0.43

1,992,589 Hurricane Energy 1,018 0.38

28,409 10.67

Industrials - (14.49%)

416,911 Meggitt 2,177 0.82

459,312 Essentra 1,950 0.73

123,061 Weir Group 1,866 0.70

28,989 Ferguson 1,623 0.61

545,848 BBA Aviation 1,517 0.57

52,239 Spectris 1,510 0.57

245,887 Smart Metering Systems 1,302 0.49

264,310 Polypipe Group 1,165 0.44

219,489 Howden Joinery Group 1,114 0.42

170,047 Electrocomponents 1,082 0.41

1,632,899 Breedon Group 999 0.38

60,117 Ultra Electronics Holdings 984 0.37

88,290 PayPoint 862 0.32

291,603 Forterra 857 0.32

580,393 Serco Group 843 0.32

267,547 Rotork 842 0.32

154,713 PageGroup 796 0.30

230,709 IWG 788 0.30

429,784 Melrose Industries 776 0.29

50,233 Diploma 770 0.29

485,865 Hays 765 0.29

132,296 Network International Holdings 765 0.29

Portfolio Statement

UK Fund

261

as at 30 June 2019


280,014 Ibstock 674 0.25

599,367 Cobham 633 0.24

26,660 10.01

Health Care - (6.56%)

448,907 GlaxoSmithKline 7,096 2.66

109,115 AstraZeneca 7,023 2.64


54,943 Novo Nordisk (B) 2,209 0.83

226,310 Oxford BioMedica 1,575 0.59

53,666 Genus 1,407 0.53

21,621 8.12

Basic Materials - (4.96%)

151,151 Rio Tinto 7,323 2.75

233,978 KAZ Minerals 1,407 0.53

68,945 BHP 1,382 0.52

66,404 Mondi Group 1,178 0.44

30,611 Johnson Matthey 1,009 0.38

730,352 Elementis 1,006 0.38

335,989 Glencore 896 0.34

99,081 Fresnillo 864 0.32

15,065 5.66

Utilities - (3.30%)

300,043 SSE 3,351 1.26

385,786 National Grid 3,221 1.21

298,506 United Utilities Group 2,340 0.88

247,714 Pennon Group 1,832 0.69

75,853 Severn Trent 1,547 0.58

795,648 Centrica 689 0.26

219,207 Drax Group 584 0.22

13,564 5.09

Telecommunications - (1.71%)

1,710,762 BT Group 3,352 1.26

2,168,411 Vodafone Group 2,795 1.05

6,147 2.31

Technology - (2.23%)

14,134 Apple 2,225 0.84

233,445 GB Group 1,291 0.48

158,057 Sage Group 1,271 0.48

41,839 Micro Focus International 863 0.32

5,650 2.12



Net assets 266,324 100.00


Portfolio Statement

UK Gilt Fund

262

as at 30 June 2019



5,420,000 UK Gilt 3.25% 22/01/2044 Reg S 7,423 13.05

6,200,000 UK Gilt 3.75% 07/09/2021 Reg S 6,628 11.65

4,500,000 UK Gilt 4.50% 07/09/2034 Reg S 6,573 11.55

2,470,000 UK Gilt 4.00% 22/01/2060 Reg S 4,477 7.87

3,870,000 UK Gilt 2.75% 07/09/2024 Reg S 4,290 7.54

2,500,000 UK Gilt 3.75% 22/07/2052 Reg S 4,033 7.09

1,500,000 UK Gilt 4.50% 07/12/2042 2,420 4.25

1,850,000 UK Gilt 1.50% 22/07/2026 Reg S 1,955 3.44

850,000 UK Gilt 3.50% 22/07/2068 1,495 2.63

440,000 UK Gilt 4.25% 07/12/2055 797 1.40

700,000 UK Gilt 1.75% 07/09/2022 726 1.28

250,000 UK Gilt 1.50% 22/07/2047 Reg S 252 0.44

150,000 UK Gilt 4.75% 07/12/2030 212 0.37

41,281 72.56




900,000 Pension Insurance 5.625% 20/09/2030 Reg S 915 1.61



300,000 British Land 5.264% 24/09/2035 399 0.70


313,000 Orsted 2.50% 16/05/2033 EMTN Reg S 325 0.57


300,000 AA Bond 4.2487% 31/07/2043 Reg S 304 0.53





















10,813 19.00

Portfolio Statement

UK Gilt Fund

263

as at 30 June 2019










3,019 5.31


1,200,000 Qatar 2.375% 02/06/2021 Reg S 945 1.66

450,000 Qatar 3.375% 14/03/2024 Reg S 366 0.64

1,311 2.30






800,000 Receive fixed 2.6843% pay float 3 Month USD LIBOR 04/02/2029 41 0.07




800,000 Receive fixed 2.1497% pay float 6 Month AUD Bank Bill 23/04/2029 24 0.04



103,000,000 Receive fixed 0.0085% pay float 6 Month JPY LIBOR 24/06/2029 (3) (0.01)

6,000,000 Receive fixed 0.7125% pay float 6 Month GBP LIBOR 17/01/2020 (5) (0.01)






800,000 Pay fixed 2.415% receive float NZD Bank Bill 3 Month Index 12/02/2029 (25) (0.04)

900,000 Pay fixed 2.36% receive float NZD Bank Bill 3 Month Index 18/03/2029 (26) (0.05)

500,000 Pay fixed 2.7953% receive float 6 Month AUD Bank Bill 13/08/2028 (31) (0.05)

600,000 Pay fixed 0.5142% receive float 6 Month CHF LIBOR 13/11/2028 (37) (0.07)





25 0.05



6 0.01

Portfolio Statement

UK Gilt Fund

264

as at 30 June 2019


Futures - ((0.01)%)

600,000 US 10 Year Treasury Note (CBT) Commodity Future 19/09/2019 8 0.01

600,000 US 5 Year Treasury Note (CBT) Commodity Future 30/09/2019 7 0.01

100,000 US Ultra Bond Commodity Future 19/09/2019 3 0.01

100,000 Long Gilt Commodity Future 26/09/2019 0 0.00


(100,000) EURO-BUND Commodity Future 06/09/2019 (2) 0.00

(100,000) EURO BUXL 30 Year Commodity Future 06/09/2019 (5) (0.01)


(800,000) US 10 Year Ultra Future 19/09/2019 (18) (0.03)

(800,000) US 20 Year Long Bond (CBT) Commodity Future 19/09/2019 (20) (0.04)

(35) (0.06)






(258,000) Bought GBP sold EUR @ 1.138978 for settlement 14/08/2019 (5) (0.01)

(787,000) Bought GBP sold EUR @ 1.156682 for settlement 14/08/2019 (27) (0.05)


(83) (0.15)



Net assets 56,891 100.00


Portfolio Statement


265

as at 30 June 2019



7,900,000 GE Capital UK Funding 6.25% 05/05/2038 EMTN 10,392 1.70

8,100,000 Apple 3.60% 31/07/2042 10,108 1.65

10,700,000 Gilead Sciences 4.75% 01/03/2046 9,492 1.55

6,850,000 GlaxoSmithKline Capital 4.25% 18/12/2045 EMTN Reg S 8,989 1.47

6,100,000 EDF 5.125% 22/09/2050 EMTN Reg S 8,688 1.42

4,850,000 Rabobank 5.375% 03/08/2060 EMTN 8,615 1.41

6,200,000 Enel Finance International 5.75% 14/09/2040 EMTN 8,447 1.38

6,300,000 BHP Billiton Finance 4.30% 25/09/2042 8,386 1.37






4,150,000 E.ON International Finance 6.75% 27/01/2039 EMTN 6,545 1.07

5,731,000 Walmart Stores 6.20% 15/04/2038 6,303 1.03

4,500,000 Statoil 4.25% 10/04/2041 EMTN Reg S 6,123 1.00

3,550,000 Engie 5.95% 16/03/2111 EMTN Reg S 6,019 0.98

5,800,000 Quadgas Finance 3.375% 17/09/2029 EMTN Reg S 5,891 0.96



3,788,000 Rabobank 5.25% 23/05/2041 GMTN 5,804 0.95


2,850,000 Thames Water Utilities 7.738% 09/04/2058 Reg S 5,503 0.90

3,600,000 Eastern Power Networks 6.25% VRN 12/11/2036 EMTN Reg S 5,436 0.89

4,700,000 Time Warner Cable 5.25% 15/07/2042 5,368 0.88

6,100,000 Microsoft 4.00% 12/02/2055 5,330 0.87

3,700,000 Allianz Finance II 4.50% 13/03/2043 Reg S 5,289 0.86


3,300,000 EDF 6.00% 23/01/2114 EMTN Reg S 5,167 0.84



4,750,000 Cadent Finance 2.75% 22/09/2046 EMTN Reg S 4,636 0.76

5,600,000 Credit Agricole 6.875% VRN (Perpetual) 144A 4,635 0.76

3,050,000 Orange 5.375% 22/11/2050 EMTN 4,574 0.75

4,200,000 Digital Stout Holding 3.75% 17/10/2030 Reg S 4,490 0.73

4,200,000 ING Groep 3.00% 18/02/2026 EMTN Reg S 4,389 0.72


4,100,000 BAT International Finance 4.00% 23/11/2055 EMTN Reg S 4,147 0.68

3,700,000 AT&T 4.25% 01/06/2043 4,110 0.67

3,875,000 Western Power Distribution 3.50% 16/10/2026 Reg S 4,039 0.66

3,831,000 Orsted 2.50% 16/05/2033 EMTN Reg S 3,975 0.65

2,700,000 EDF 6.125% 02/06/2034 EMTN 3,868 0.63





3,400,000 Zuerich Versicherungs Gesellsc 3.50% VRN 01/10/2046 Reg S 3,507 0.57

2,550,000 Northern Powergrid Yorkshire 5.125% 04/05/2035 3,479 0.57



2,600,000 America Movil 4.948% 22/07/2033 3,381 0.55

Portfolio Statement


266

as at 30 June 2019


2,750,000 AT&T 4.875% 01/06/2044 3,325 0.54


3,850,000 WPP Finance 2010 5.625% 15/11/2043 3,291 0.54

2,700,000 Massachusetts Institute of Technology 5.60% 01/07/2111 3,203 0.52


2,300,000 EDF 5.50% 27/03/2037 EMTN 3,178 0.52

2,050,000 AT&T 7.00% 30/04/2040 EMTN 3,096 0.51

2,850,000 Gazprom Capital Luxembourg 4.25% 06/04/2024 Reg S 3,020 0.49

2,200,000 RWE Finance 6.25% 03/06/2030 EMTN 3,000 0.49


2,250,000 IPIC GMTN 6.875% 14/03/2026 EMTN Reg S 2,942 0.48


2,050,000 University of Cambridge 3.75% 17/10/2052 2,894 0.47

2,700,000 University of Cambridge 2.35% 27/06/2078 Reg S 2,882 0.47

3,250,000 Microsoft 3.75% 12/02/2045 2,778 0.45




2,800,000 Rabobank 4.625% VRN (Perpetual) 2,691 0.44


2,500,000 Peabody Capital No 2 3.25% 14/09/2048 Reg S 2,642 0.43

2,450,000 Verizon Communications 3.125% 02/11/2035 2,625 0.43


2,000,000 HSBC Holdings 6.75% 11/09/2028 Reg S 2,589 0.42

1,500,000 Citigroup 7.375% 01/09/2039 EMTN Reg S 2,586 0.42



2,377,000 Fidelity National Information Services 3.36% 21/05/2031 2,512 0.41


1,878,000 British Land 5.264% 24/09/2035 2,499 0.41




2,200,000 Orbit Capital 3.375% 14/06/2048 Reg S 2,384 0.39

1,600,000 RWE Finance 6.125% 06/07/2039 EMTN 2,379 0.39


2,450,000 BMW Finance 0.625% 06/10/2023 EMTN Reg S 2,241 0.37

2,214,000 London & Quadrant Housing Trust 3.125% 28/02/2053 Reg S 2,240 0.37


1,500,000 Northern Gas Networks 5.625% 23/03/2040 EMTN 2,194 0.36

2,100,000 Gatwick Funding 3.125% 28/09/2041 EMTN Reg S 2,182 0.36


1,950,000 Verizon Communications 3.375% 27/10/2036 2,144 0.35



1,400,000 Walmart Stores 5.625% 27/03/2034 2,058 0.34



1,250,000 Yorkshire Water Services 6.375% 19/08/2039 2,030 0.33


2,375,000 UniCredit 6.572% 14/01/2022 144A 1,988 0.32


Portfolio Statement


267

as at 30 June 2019


1,900,000 Liberty Living Finance 3.375% 28/11/2029 Reg S 1,972 0.32


2,100,000 University of Southampton 2.25% 11/04/2057 Reg S 1,968 0.32





1,450,000 Scottish Widows 7.00% 16/06/2043 Reg S 1,911 0.31


1,830,000 Fiserv 3.00% 01/07/2031 1,856 0.30

2,125,000 New York Life Insurance 4.45% 15/05/2069 144A 1,843 0.30

1,600,000 Prudential 5.70% VRN 19/12/2063 EMTN Reg S 1,835 0.30

2,250,000 ABN AMRO Bank 3.40% 27/08/2021 144A 1,809 0.30


1,900,000 Volkswagen Bank 1.875% 31/01/2024 EMTN Reg S 1,785 0.29

1,559,000 Petrobras Global Finance 6.625% 16/01/2034 1,734 0.28


1,350,000 Lloyds Bank 4.875% 30/03/2027 EMTN 1,682 0.27

1,647,000 Aroundtown 4.75% VRN (Perpetual) Reg S 1,624 0.27

1,456,000 Barclays 7.125% VRN (Perpetual) 1,518 0.25

1,917,000 Mexico City Airport Trust 5.50% 31/07/2047 Reg S 1,502 0.25

2,850,000 Teva Pharmaceutical Finance Neth III BV 4.10% 01/10/2046 1,497 0.24

1,400,000 Virgin Media Secured Finance 6.25% 28/03/2029 Reg S 1,478 0.24


932,000 Wellcome Trust 4.00% 09/05/2059 Reg S 1,455 0.24

1,400,000 Land Securities Capital Markets 2.75% 22/09/2059 EMTN Reg S 1,452 0.24

1,425,000 Home Group 3.125% 27/03/2043 Reg S 1,446 0.24

1,300,000 Legal & General Group 5.125% VRN 14/11/2048 Reg S 1,426 0.23

1,550,000 FCA Bank Ireland 1.00% 21/02/2022 EMTN Reg S 1,412 0.23




1,450,000 Comcast 4.70% 15/10/2048 1,335 0.22

1,200,000 WM Treasury 3.25% 20/10/2048 Reg S 1,289 0.21

950,000 Freshwater Finance 5.182% 20/04/2035 1,280 0.21

1,150,000 CPUK Finance 3.588% 28/02/2042 EMTN Reg S 1,229 0.20

1,150,000 Rabobank Global 5.80% 30/09/2110 144A 1,224 0.20

950,000 BAT International Finance 5.75% 05/07/2040 EMTN 1,218 0.20

800,000 Veolia Environnement 6.125% 29/10/2037 EMTN 1,217 0.20

1,194,000 TP ICAP 5.25% 29/05/2026 Reg S 1,217 0.20

900,000 Broadgate Financing 4.821% 05/07/2036 1,191 0.19

1,150,000 Aquarius & Investments 4.25% VRN 02/10/2043 EMTN 1,185 0.19

1,100,000 Annington Funding 3.685% 12/07/2034 Reg S 1,165 0.19

1,250,000 Apple 4.65% 23/02/2046 1,164 0.19

900,000 Freshwater Finance 4.556% 03/04/2036 Reg S 1,145 0.19

700,000 Engie 5.00% 01/10/2060 EMTN Reg S 1,123 0.18


1,100,000 UniCredit 9.25% VRN (Perpetual) Reg S 1,103 0.18


1,200,000 Shell International Finance 4.375% 11/05/2045 1,087 0.18

1,000,000 Assura Financing 3.00% 19/07/2028 Reg S 1,064 0.17

1,200,000 Phoenix Group Holdings 5.75% VRN (Perpetual) Reg S 1,064 0.17

Portfolio Statement


268

as at 30 June 2019


1,050,000 LafargeHolcim Sterling Finance 3.00% 12/05/2032 EMTN Reg S 1,058 0.17

700,000 Heathrow Funding 5.875% 13/05/2043 EMTN Reg S 1,051 0.17

750,000 Gatwick Funding 5.75% 23/01/2037 EMTN Reg S 1,050 0.17

850,000 HSBC Bank 4.75% 24/03/2046 EMTN 1,029 0.17

950,000 Annington Funding 3.935% 12/07/2047 EMTN Reg S 1,017 0.17

800,000 London Merchant Securities 6.50% 16/03/2026 1,015 0.17

950,000 Investec 4.50% 05/05/2022 EMTN Reg S 1,013 0.17

800,000 University of Liverpool 3.375% 25/06/2055 Reg S 1,009 0.16

710,000 Annes Gate Property 5.661% 30/06/2031 944 0.15

1,000,000 EDF 6.00% 22/01/2114 144A 914 0.15


650,000 East Japan Railway 4.875% 14/06/2034 EMTN Reg S 897 0.15

855,000 PRS Finance 2.00% 23/01/2029 Reg S 895 0.15


900,000 Comcast 4.95% 15/10/2058 853 0.14

750,000 Citigroup 6.675% 13/09/2043 824 0.13






600,000 RWE Finance 4.75% 31/01/2034 EMTN Reg S 746 0.12



800,000 Pershing Square Holdings 5.50% 15/07/2022 Reg S 656 0.11

500,000 Aviva 6.875% VRN 20/05/2058 EMTN 642 0.10

1,274,000 Rowan Companies 5.40% 01/12/2042 587 0.10


500,000 Glencore Finance (Europe) 6.00% VRN 03/04/2022 Reg S 554 0.09




150,000 General Electric Capital 4.875% 18/09/2037 EMTN 158 0.03

100,000 PGH Capital 6.625% 18/12/2025 110 0.02


1,125,000 TXU Eastern Funding 7.25% 08/03/2030 EMTN (Defaulted) 0 0.00

1,000,000 Cattles 6.875% VRN 17/01/2014 EMTN (Defaulted) 0 0.00

526,036 85.95



6,082,977 Juturna European Loan Conduit No 16 5.0636% 10/08/2033 EMTN Reg S 7,607 1.24



3,000,000 Abu Dhabi Crude Oil Pipeline 4.60% 02/11/2047 Reg S 2,592 0.42

2,200,000 Swan Housing Capital 3.625% 05/03/2048 Reg S 2,371 0.39



1,715,701 Equity Release Funding 3 5.70% 26/02/2031 2,038 0.33

1,950,000 Taurus 2019-1 FR Srl 1.00% VRN 02/02/2031 Reg S 1,754 0.29


1,550,000 Greene King Finance 3.593% 15/03/2035 Reg S 1,607 0.26

1,150,000 Equity Release Funding 3 5.05% 26/04/2033 1,442 0.24

Portfolio Statement


269

as at 30 June 2019



1,058,817 Meadowhall Finance 4.986% 12/07/2037 Reg S 1,294 0.21

850,000 Peel South East 10.00% 30/04/2026 1,198 0.20

1,150,000 Channel Link Enterprises Finance 3.043% VRN 30/06/2050 Reg S 1,179 0.19


659,868 Trafford Centre Finance 6.50% 28/07/2033 890 0.15

600,000 Dali Capital 4.7992% 21/12/2037 790 0.13


531,043 White City Property Finance 5.1202% 17/04/2035 679 0.11


500,000 RHP Finance 3.25% 05/02/2048 Reg S 535 0.09

245,553 Premiertel 6.175% 08/05/2032 293 0.05




53,327 8.71


12,450,000 UK Gilt 4.50% 07/12/2042 20,088 3.28

350,000 UK Gilt 4.75% 07/12/2038 555 0.09

20,643 3.37


4,925,000 Qatar 3.375% 14/03/2024 Reg S 4,008 0.65

2,050,000 Romania 4.625% 03/04/2049 Reg S 2,221 0.36

1,150,000 Mexico 4.00% 15/03/2115 1,046 0.17

1,000,000 Mexico 5.625% 19/03/2114 EMTN 1,034 0.17

8,309 1.36


17,000,000 Receive fixed 1.4713% pay float 6 Month GBP LIBOR 05/04/2049 1,042 0.17










2,500,000 Receive fixed 3.22% pay float NZD Bank Bill 3 month Index 29/01/2028 165 0.03




1,200,000 Receive fixed 3.2425% pay float New Zealand Bank Bill 3 Month Index 05/02/2028 80 0.01




2,500,000 Pay fixed 1.3287% receive float 3 Month STIBOR 29/01/2028 (16) 0.00

1,103,200,000 Receive fixed 0.0085% pay float 6 Month JPY LIBOR 24/06/2029 (29) 0.00





Portfolio Statement


270

as at 30 June 2019









2,482 0.41



1,768 0.29



2 0.00

Futures - ((0.23)%)











(34,900,000) US Ultra Bond Commodity Future 19/09/2019 (1,104) (0.18)

(1,032) (0.17)







4,796,000 Bought USD sold GBP @ 0.784881 for settlement 14/08/2019 8 0.00



(96,149,000) Bought GBP sold USD @ 1.305510 for settlement 14/08/2019 (1,975) (0.32)


(4,536) (0.74)



Net assets 612,013 100.00



271

EU Securities Financing Transaction Regulation

The Securities Financing Transaction Regulations (SFTR) requires further transparency to address perceived risks in the use of securities financing transactions.

The following disclosures relate to the long contracts for difference (“CFDs”) held by Emerging Markets Fund which may be considered Total Return swaps under SFTR. CFDs were contracted bilaterally with HSBC (US) and had an open maturity. At 30 June 2019 the fair value of CFDs was £666,000 (2018: £177,000) which represented 0.03% (2018: 0.01%) of net assets. Collateral of £571,000 (2018: £194,000) was held by HSBC (US) in a segregated account on behalf of the sub-fund. Collateral was held in cash denominated in US Dollars and maturing in less than one day. The total return for the year ended 30 June 2019 from CFDs was a gain of £14,000 (2018: gain £244,000).


272

Further Information

Fidelity Institutional Funds Registered Office

Oakhill House 130 Tonbridge Road Hildenborough Tonbridge Kent TN11 9DZ United Kingdom www.fidelity.co.uk

Authorised and regulated in the UK by the Financial Conduct Authority.

Authorised Corporate Director (ACD), General Distributor, Administrator and Registrar

FIL Investment Services (UK) Limited Oakhill House 130 Tonbridge Road Hildenborough Tonbridge Kent TN11 9DZ United Kingdom

The ACD is FIL Investment Services (UK) Limited and is the sole director. Authorised and regulated in the UK by the Financial Conduct Authority. Registered in England and Wales No 2016555.

Depositary

J.P. Morgan Europe Limited Registered Office: 25 Bank Street Canary Wharf London E14 5JP United Kingdom

Head Office: Chaseside Bournemouth Dorset BH7 7DA United Kingdom

Authorised and regulated in the UK by the Financial Conduct Authority.

Independent Auditors

PricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT United Kingdom


Further Information

• All Fidelity employees are subject to a Code of Ethics which, among other things, sets out procedures for personal account dealings in securities. These procedures, which are rigorously monitored, are designed to ensure that there is no conflict between personal account dealing by Fidelity staff and the interests of Fidelity’s customers.

The two basics of the Code of Ethics require that deals have to be pre-authorised before an individual may undertake them, and they must afterwards be reported to the Compliance Department. Individuals are required to use specified brokers which enables this process to be checked on a continual basis.

In addition, there are specific provisions to ensure that any investment idea is first acted upon by the funds Fidelity manages, and that fund managers may not deal within a defined period either side of a fund (for which they are responsible) dealing in that stock.

• The Report and Financial Statements of the Company and the Instrument of Incorporation may be inspected free of charge between 9.00 a.m. and 5.00 p.m. on every business day at the offices of the Authorised Corporate Director (ACD) at Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ, United Kingdom.

Shareholders may obtain copies of the above documents, including long form accounts, free of charge, from the same address, or alternatively from our website www.fidelity.co.uk.

It is possible to receive information about the full holdings of the funds in which you invest. This is available on request, and may, at our discretion, be subject to you entering into an agreement with us to keep the information confidential. If you wish to receive full holdings information in accordance with the policy, please put your request in writing to: Data Policy Fund Holdings, Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ quoting your name, address and account number or client reference number.

FIL Limited and its respective subsidiaries form the global investment management organisation that is commonly referred to as Fidelity International. Fidelity International only gives information on its products and does not provide investment advice based on individual circumstances.

Any service, security, investment, fund or product outlined may not be available to or suitable for you and may not be available in your jurisdiction. It is your responsibility to ensure that any service, security, investment, fund or product outlined is available in your jurisdiction before any approach is made regarding that service, security, investment, fund or product. This document may not be reproduced or circulated without prior permission and must not be passed to private investors.

Past performance is not a reliable indicator of future results. The value of investments may go down as well as up and an investor may not get back the original amount invested. Unless otherwise stated all products are provided by Fidelity International, and all views expressed are those of Fidelity International.

In certain countries, and for certain types of investments, transaction costs are higher, and liquidity is lower than elsewhere. There may also be limited opportunities to find alternative ways of managing cash flows especially where the focus of investment is on small and medium sized firms. For funds specialising in such countries and investment types, transactions, particularly those large in size, are likely to have a greater impact on the costs of running a fund than similar transactions in larger funds. Prospective investors should bear this in mind in selecting funds.

Issued by FIL Investment Services (UK) Limited (FCA registered number 121939) a firm authorised and regulated by the Financial Conduct Authority.

FIL Investment Services (UK) Limited is a member of the Fidelity International group of companies and is registered in England and Wales under the company number 2016555. The registered office of the company is Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ, United Kingdom. FIL Investment Management Limited VAT group identification number is 395 3090 35.

273

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