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Kleinwort Hambros Elite PCC LimitedFormerly Kleinwort Benson Elite PCC Limited

Interim Report and Unaudited Condensed Financial StatementsFor the period 1 August 2017 to 31 January 2018Guernsey Registered Company Number: 42365

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Contents Investor Information 4

Alternative Investment Fund Manager’s Report 8

Directors’ Report 14

Statement of Directors’ Responsibilities 16

Comparative Table 17

Condensed Interim Statement of Total Return 18

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

Condensed Interim Balance Sheet 22

Notes to the Condensed Interim Financial Statements 26

Cell Portfolio of Investments 35

Cell Summary of Material Portfolio Changes 42

Kleinwort Hambros Elite PCC LimitedFormerly Kleinwort Benson Elite PCC Limited

Interim Report and Unaudited Condensed Financial StatementsFor the period 1 August 2017 to 31 January 2018Guernsey Registered Company Number: 42365

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Investor Information

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

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

The Company currently has six active Cells which include multiple share classes. Twenty six share classes within five of the Cells, are listed on The International Stock Exchange (“TISE”).

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

The CellsKleinwort Hambros Elite Sterling Fixed Income Fund

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

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

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

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

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

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


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


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


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

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

The Fund was fully redeemed on 30 November 2017.

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

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


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

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


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



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

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


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

Investor Information (continued)

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

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

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

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

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

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

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

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

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

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

Kleinwort Hambros Elite Trojan Fund• Participating Shares (suspended)

*These share classes are listed on the TISE (formerly known as “CISE”).**These share classes were fully redeemed on 30 November 2017.


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

A MoorsheadGround FloorDorey Court Admiral ParkSt Peter Port Guernsey GY1 2HT

M Maubec Ground FloorDorey Court Admiral ParkSt Peter Port Guernsey GY1 2HT

M WilsonGround FloorDorey Court Admiral ParkSt Peter Port Guernsey GY1 2HT

Registered OfficeGround FloorDorey Court Admiral ParkSt Peter Port Guernsey GY1 2HT

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

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

Independent AuditorDeloitte LLPRegency Court Glategny EsplanadeSt Peter PortGuernsey GY1 3HW

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

Alternative Investment Fund ManagerSG Kleinwort Hambros Bank (CI) Limited (formerly known as Kleinwort Benson (Channel Islands) Investment Management Limited)18 EsplanadeSt HelierJerseyChannel Islands JE4 8PR

Sub-Investment ManagerSG Kleinwort Hambros Bank Limited(formerly known as Kleinwort Benson Bank Limited)8 St James SquareLondonSW1Y 4JU

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Alternative Investment Fund Manager’s Report

Portfolio Commentary: 6 months August 2017 to January 2018

Multi Asset FundsKleinwort Hambros Elite Multi Asset Conservative FundPerformanceThe fund rose 1.0% over the 6-month period ending 31st January 2018. Global equity markets were up 5.4% over the period in GBP terms, benefiting from the strong performance of Asian and emerging markets, compared to the UK equity market that returned 3.9%; UK conventional Gilts fell modestly as investors factored in future rate rises.

Portfolio activityThe six months under review tested investors resolve, but eventually a “risk-on” stance was rewarded. Major equity bellwethers such as the FTSE 100 and the S&P 500 were up 3.9% and 15.1%, respectively. Surprisingly sterling appreciated by 7.5% against the US Dollar; in GBP terms the return on the S&P 500 was reduced to 6.7%. On the flip side returns from fixed income markets were muted as investors focused on the changing trajectory of interest rates. While conventional Gilts declined, indexed linked gilts delivered a modest positive return. Within credit both investment grade and high yield delivered small positive returns, mostly from their coupon as spread tightening has largely played out.

The global economic scenario remains robust supported by recent developments including US wage growth that came in above expectations, strong US factory orders and non-manufacturing PMI. We should not read too much from a single monthly release. Markets may react strongly to any further better-than-expected figures that suggest the need to raise rates. Indeed, in recent weeks investors are starting to factor in an acceleration in the number of rises over the next 18 months.

Global economic growth was upgraded by the World Bank to 3.1% in 2018 after a much stronger-than-expected 2017. Though growth in the developed economies is expected to moderate slightly to 2.2%.

The Bank of England recently announced that it sees the need for monetary policy to tighten more rapidly than it did three months ago to contain a “rising degree of excess demand” and building domestic inflationary pressures, though this is likely to at a slower pace than in the US.

On the political front the re-election of Prime Minister Abe in Japan was a key event and is seen as the catalyst driving the Japanese market to new highs. In the US Donald Trump’s tax reform bill helped to stimulate the year-end rally as investors factored in its impact on their consensus earnings forecasts.

Principal driver of returns over the period came from the fund’s equity allocation, in particular the emerging market, Japanese and Asian exposures. Fixed income was broadly flat over the period; governments lost value, but this was offset by positive returns from the credit added positions. Commodities delivered a small negative return as gold fell in value.

We made few changes to the portfolio over the period. In October we removed our broad diversified commodities exposure replacing it with an exposure to gold, which we consider will give better downside protection in declining markets.

The final changes were made in November, fine tuning the equity allocation, though the overall equity allocation remained unchanged. We made modest reductions to the European exposure, adding the proceeds to the US positions.

Kleinwort Hambros Elite Multi Asset Balanced FundPerformanceThe fund rose 2.9% over the 6-month period ending 31st January 2018. Global equity markets were up 5.4% over the period in GBP terms, benefiting from the strong performance of Asian and emerging markets, compared to the UK equity market that returned 3.9%; UK conventional Gilts fell modestly as investors factored in future rate rises.


The global economic scenario remains robust supported by recent developments including US wage growth that came in above expectations, strong US factory orders and non-manufacturing PMI. We should not read too much from a single monthly release. Markets may react strongly to any further better-than-expected figures that suggest the need to raise rates. Indeed, in recent weeks investors are starting to factor in an acceleration in the number of rises over the next 18 months.


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Alternative Investment Fund Manager’s Report (continued)




We made few changes to the portfolio over the period. In October we removed our broad diversified commodities exposure replacing it with an exposure to gold, which we consider will give better downside protection in declining markets.

The final changes were made in November, fine tuning the equity allocation, though the overall equity allocation remained unchanged. We made modest reductions to the European and UK exposure, adding the proceeds to the US positions.

Kleinwort Hambros Elite Multi Asset Growth FundPerformanceThe fund rose 4.5% over the 6-month period ending 31st January 2018. Global equity markets were up 5.4% over the period in GBP terms, benefiting from the strong performance of Asian and emerging markets, compared to the UK equity market that returned 3.9%; UK conventional Gilts fell modestly as investors factored in future rate rises.


The global economic scenario remains robust supported by recent developments including US wage growth that came

in above expectations, strong US factory orders and non-manufacturing PMI. We should not read too much from a single monthly release. Markets may react strongly to any further better-than-expected figures that suggest the need to raise rates. Indeed, in recent weeks investors are starting to factor in an acceleration in the number of rises over the next 18 months.





We only made one change to the portfolio over the period. In October we removed our broad diversified commodities exposure replacing it with an exposure to gold, which we consider will give better downside protection in declining markets.

We did not make any changes to the regional equity allocation over the period as it was positioned in line with our views.

Fixed Income FundsKleinwort Hambros Elite Sterling Fixed Income Fund PerformanceDuring the period the fund declined 0.7%. ,Over the same period the Barcap Sterling Aggregate Bond Index , declined 0.42%, the Bank of America Merrill Lynch 1 to 10 year UK gilt index declined 1.28% and the Bank of America Merrill Lynch 1 to 10 year Sterling Corporate index rose 0.59%.

Portfolio activityThe UK economy expanded by 0.5% in the fourth quarter of 2017, bringing cumulative 2017 GDP growth to 1.8%. 2018 is likely to see even slower growth of between 1% and 1.5% on most forecasts. Annual UK inflation cooled fractionally

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in December to 3%, with price rises in petrol and diesel not enough to offset falls in airfares and games and toys. Core inflation – excluding volatile energy, food, alcohol and tobacco – fell to 2.5% from 2.7%. Should this begin a trend the Bank of England will then have less pressure to raise rates, thereby stifling already lacklustre growth. In theory, with UK unemployment at 4.3%, tight labour markets should push up wages – and thus “demand-pull” inflation – which may prompt the Bank of England to hike rates sooner than expected. However, wage growth, including bonuses, was unmoved at 2.5%, well below 3% inflation. Weak retail sales over the crucial Christmas period were a stark reminder of the headwinds facing the UK economy. Consumer spending growth for all of 2017 decelerated to 1.9%, its slowest rate since 2013. Despite negative real wages, retail sales continue to growing as consumers dip into their savings and binge on cheap credit. They will now have to negotiate tightening credit conditions too as financial institutions are cutting back supply of unsecured lending, such as credit cards, due to a “changing economic outlook” and a “significant” spike in default rates. Demand for credit is skyrocketing – the domestic savings rate has plummeted to its lowest since 1963 – as many attempt to maintain standards of living in the face of negative wage growth. The risks of such activity have been highlighted by the Bank of England, recently reporting on the current dangerous levels of consumer debt. It says banks are underestimating their financial losses from consumers defaulting on loans, overdrafts and credit cards in a “severe” economic downturn.

As expected, in November the BoE raised interest rates by 25 bps to 0.50% and left its QE target unchanged at £435bln commenting that any further rate rise would be at a gradual pace and to a limited extent. The BoE’s GDP growth forecast was largely unchanged at 1.6% for 2018 and 1.7% for 2019 and 2020, respectively. Inflation is expected to peak at 3.2% and gradually move lower to 2.4% in 2018 and 2.2% in 2019. In terms of the growth outlook, it highlighted that Brexit risk was a significant source of uncertainty. The dovish takeaway from the BoE update pushed sterling and UK Gilt yields lower.

During the period under review UK 10 year gilt yields rose 28 basis points to 1.51%, as inflationary pressures weighed on the long end of the yield curve. Yields had been as low as 0.97% in September but following September’s inflation report, CPI rise to 3% in September from 2.9% in August, its highest for more than five years. The increase in inflation raised the likelihood of an increase in interest rates as soon as November. Yields spiked to 1.36% and continued to rise throughout the period. Notwithstanding this rise in yields, sterling bonds yield significantly below the sum of the prevailing rates of inflation and growth. This is the result of numerous extraordinary factors, highest of all is the current uncertainty of the effects of Brexit on the British economy. With inflation hitting 3% typically we would expect to see long bond yields spike to compensate investors for the effects of the erosion of real value at redemption. With 10year yields

at 1.51% buying bonds now locks in a negative real return. Despite the recent pickup in yields in government and investment grade bonds, investors in search of higher yields are shifting down the quality curve such that yields on “junk bonds”, below investment grade, are at multi-decade lows. At these levels investors are not being compensated for the risks involved.

With long-dated Gilt yields significantly over valued, offering little to no real return over 10 years, we continue to maintain our short duration strategy within the portfolio. We expect bond yields to remain volatile in the quarters ahead, and may see long-dated yields decline further on negative news. However, there remains risk of policy errors and/or future inflation surprises which would have a negative effect on bond markets as a whole, interest rate may rise faster and higher than currently forecast. Maintaining a shorter duration, we have reduced the sensitivity of the portfolio to higher rates. The strategy of the fund remains defensive on duration and risk split 60:40 high credit quality corporate bonds and UK Gilts.

Kleinwort Hambros Elite International Bond Fund PerformanceDuring the period the fund declined 0.85%. Over the same period the Barclays Global Agg Bond index (GBP hedged) declined -1.02 %.

Portfolio activityThe Federal Reserve’s FOMC July Minutes reported officials are on course to raise their benchmark rate by 25bp one more time in 2017 and that most Federal Reserve officials supported a move towards unwinding the Fed’s massive balance sheet at “an upcoming meeting”. Despite weakness the Fed saw inflation picking up towards its 2% target in the next couple of years. Eurozone consumption and industrial production were particularly strong this month. Second-quarter figures show euro-area economic growth gathering momentum, with a 0.6% overall gain QoQ and 2.1% YoY. Undeniably, the European Central Bank’s €1.5 trillion worth of government bond purchases since early 2015 have been a potent cure to the Continental despondency which set in following the sovereign debt crisis of six years ago. The BoE downgraded its 2017 UK growth forecast to1.7% from 1.9% due to the continued uncertainty surrounding Brexit. The latest BoE’s MPC minutes showed its members voted 6-2 against raising interest rates. The Bank also said that monetary policy tightening may be required to return inflation to target. If the economy performs as it expects, the benchmark interest rate will need to rise by a “somewhat greater extent” than markets currently anticipate.

September was a dramatic month for US government bonds. Benchmark 10-year treasuries began the month at 2.12%, yields collapsed to 2% on fears of a nuclear conflict. A late month sell-off resulted in yields rising to 2.33% as investors

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side-lined the geopolitical risks and focused on the increased likelihood of US rate hikes and future inflation should tax reforms get passed in Congress. US inflation in August rose 1.9% versus 1.7% in July. However, this uptick resulted from higher gasoline prices following impact of Hurricane Harvey. Core CPI – which excludes food and energy – remained at 1.7% for the fourth month in a row. August’s inflation reading for the UK rose sharply to 2.9%. Core inflation rose to 2.7%. At the latest MPC meeting the Bank of England foreshadowed a rate hike sooner than anyone expected. Gilt yields soared to 1.31%, from below 1%. The ECB kept monetary policy unchanged. The bank sees QE running until the end of December or beyond if needed, and reiterated it can increase the size and duration if the outlook worsens. The ECB upgraded its 2017 GDP forecast from 1.9% to 2.2%, but left 2018 and 2019 unchanged at 1.8% and 1.7%, respectively.

In October yields on 10-year US Treasuries rose above 2.4% for the first time since May, back to where they began the year, hitting highs of 2.6% in March on optimism for game changing US reforms. Yields then fell to 2.0% as the early economic optimism faded. To a lesser extent, the same can be said for UK and Eurozone 10-year yields. Core US inflation was unchanged at 1.7% for the fifth month in a row, in spite of reasonable economic growth and rock-bottom unemployment rates. The US economy registered solid growth in the third quarter, growing at 3%. US manufacturing activity was reported at its fastest pace in 13 years in September, with the Institute for Supply Management’s manufacturing index at 60.8. Eurozone equivalent was also impressive, climbing to 58.1, itself a 7-year high. The UK was a notable exception to otherwise surging global economic momentum: its purchasing managers’ index slipped from 56.9 to 55.9. While still well above 50, it is moving in the wrong direction. In the third quarter the Eurozone economy grew at a solid annualised rate of 2.4%. Crucially, the increased activity helped push unemployment to 8.9%, the lowest since the financial crisis

Kleinwort Hambros Elite Euro Fixed Income Fund PerformanceDuring the period the fund rose 0.89%. Over the same period the Barclays Eur Agg - 500MM EUR bond index (unhedged) rose 1.39 %.

Portfolio activityEconomic sentiment in the Eurozone surged to its highest level since January 2001, led by Germany, reflecting the stability represented by Chancellor Angela Merkel’s re-election. But all of this confidence in “soft” surveys is meaningless if it does not translate into actual improvement in the “hard” economy. In the third quarter the Eurozone economy grew at a solid annualised rate of 2.4%. This will add weight to upgraded European GDP growth forecasts from Moody’s. The ratings

agency now expects Germany, France and Italy to grow by 2.2%, 1.6% and 1.3% in 2017, respectively. Moody’s disregarded concerns the euro’s blistering 2017 run will be a headwind to the recovery as it is driven primarily by domestic demand. Undeniably, the European Central Bank’s €1.5 trillion worth of government bond purchases since early 2015 have been a potent cure to the Continental despondency following the sovereign debt crisis of six years ago. Crucially, the increased activity helped push unemployment to 8.9%, the lowest since the financial crisis. This is all spectacular news. However, there is the same faltering inflation conundrum – inconsistent with brightening growth and employment – as in much of the developed world: core inflation has slipped to 0.9% from 1.1%. At least in Europe, with so many still out of work (i.e. spare capacity), there is a good reason why. The European Central Bank announced it will reduce the pace of its quantitative easing program, halving monthly liquidity injections to €30 billion beginning in January 2018. But purchases will carry on at least until September 2018, and beyond that, “if necessary”. The ECB also reiterated base rates will stay anchored well beyond “the horizon of the net asset purchases”.

The European Commission’s Economic Sentiment Indicator – which aggregates both business and consumer confidence – rose significantly in September, hitting its highest level since June 2007. The survey also found businesses and consumers alike expect prices to rise more rapidly over the coming 12 months. This will give the European Central Bank some comfort as it seeks to reduce its huge bond buying program. Ironically, the ECB itself expects inflation to plummet to 0.9% in the first quarter of 2018. Overall the ECB has revised lower its inflation forecast, with 2018 at 1.2% vs 1.3% and 2019 at 1.5% vs 1.6%. At its September policy meeting ECB kept monetary policy unchanged. The bank sees QE running until the end of December or beyond if needed, and reiterated it can increase the size and duration if the outlook worsens. The ECB upgraded its 2017 GDP forecast from 1.9% to 2.2%, but left 2018 and 2019 unchanged at 1.8% and 1.7%, respectively. Despite strong sentiment indicators some economic data is lagging expectations.

Kleinwort Hambros Elite International Equity Fund PerformanceFor the 6 months ending 31 January 2018, the Fund generated a healthy positive return in GBP terms, though lagged the global market according to the MSCI All-Country World Index of equities. Over the period, sector and regional allocations meant lagging the wider market somewhat, though stock selection within the fund was relatively strong.

Portfolio activityOn balance, sector allocations weighed on performance as overweight positions in Utilities and Consumer Staples dragged. Over the end of 2017 and month of January, bond

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yields drifted higher thus weighing on these relatively stable yet yield-sensitive sectors. The Fund’s slight underweight to Technology stocks was also detrimental given the especially strong performance from the sector over the period, though the Fund’s holdings in Wirecard, Texas Instruments and Amadeus IT outperformed substantially.

Regional positioning lagged somewhat. The Fund maintained a greater allocation to Western Europe, where overall value opportunities are perhaps greater. UK and Eurozone markets generally underperformed in the second half of 2017, after a strong run from continental Europe at the start of 2017.

Stock selection over the period was especially supportive, particularly in the Energy sector. The Fund’s sole holding there – US refiner Valero – returned c. 31.5% versus c. 9.8% for the sector (in GBP terms). The Materials sector was also positive, as the position in Avery Denison returned c. 23.5% versus 10.1% for the group. Global agricultural giant Monsanto (not held by the Fund), weighed on the sector overall and so avoiding it was positive. In Financials, the Fund’s holdings in China Construction Bank and Agricultural Bank of China were standout performers also, fuelled by supportive policy changes from the Chinese regulator.

The key stocks underperforming over the period included Centrica (since sold), Proctor & Gamble, and CLP Holdings. While Centrica faced the same headwind of rising bonds yields as did other Utilities stocks, it was especially under pressure given the UK’s political landscape, with growing threats of greater price controls and renationalisation should Jeremy Corbyn’s Labour party take control of Parliament.

All told, the Fund generated a healthy positive return over the period. The Fund’s somewhat lower-risk “Quality Value” profile relative to the market explains some of the difference in performance of late. Over the course of 2017, there was a massive divergence in the performance of Value and Growth stocks (e.g., as measured by MSCI Global Value and MSCI Global Growth indices). Still when compared to the benchmark, the Fund’s portfolio remains generally cheaper on nearly all standard valuation measures (Price to Earnings, Price to Cash Flow, Price to Book, etc.). We maintain this bias and expect such a profile to generate outperformance over the medium to longer term.

Kleinwort Hambros Trojan FundPerformanceThe Fund continues to be in run-off, holding a combination of cash and the EEA Life Settlements Fund (EEA).

Portfolio activityThe EEA shares are themselves in run-off and are returning cash to shareholders when sufficient is available. However, EEA has experienced maturities at a slower rate than had been previously forecast although cash flows remain within the expected tolerance range. The EEA fund has reduced the amount of cash reserves it is required to hold from 2 years premiums to 1 year, allowing some cash to be returned to shareholders and the Elite Trojan Fund has received the return of some capital as a result. Nevertheless the amount received was not sufficient for the Elite Trojan Fund to make a further payment to its shareholders. The Directors will consider further distributions to shareholders as and when further payments from EEA are received.

The Directors continue to monitor the situation and will consider any external offer for the remaining shares on merit.

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Directors’ Report

The Directors of Kleinwort Hambros Elite PCC Limited (“the Company”) are pleased to submit their interim report and unaudited condensed financial statements for the period ended 31 January 2018 with unaudited comparatives for the period ended 31 January 2017 and audited balance sheet comparatives for the year ended 31 July 2017.

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

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

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

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

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

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

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

All expenses in respect of the Kleinwort Hambros Elite Sterling Fixed Income Fund, the Kleinwort Hambros Elite Multi Asset Conservative Fund, the Kleinwort Hambros International Bond Fund and the Kleinwort Hambros EUR Fixed Income Fund have been charged to capital as prescribed by the Cell Particulars of each cell.

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

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

• the Company has sufficient liquidity to meet all on-going expenses (net current asset position at 31 January 2018 of £5,390,676* (2017: £16,748,329);

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

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

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

• the KH Elite Trojan Fund continues to be in run-off. The last valuation date of the Cell was 31 January 2018.

On 30 November 2017 the Board approved a compulsory redemption of all of the Shares of the following Cells:

• Kleinwort Hambros Elite International Bond Fund

• Kleinwort Hambros Elite EUR Fixed Income Fund

• Kleinwort Hambros Elite GBP Currency Fund

• Kleinwort Hambros Elite EUR Currency Fund

• Kleinwort Hambros Elite USD Currency Fund

The Shares of the above Cells are in the process of being delisted. Following the redemption, it is the intention of the Directors to wind up the respective Cells. On this basis, these Cells have not been prepared on a going concern basis.

The winding up of these cells does not impact the ability of the Company, as a whole, to continue as a going concern given the size of the Cells being wound up and the structure of the Company.

*The net current asset position is derived as follows:

Total assets £191,754,044

Less total liabilities (£1,329,650)

Less investment assets net of short positions (£185,033,718)

£5,390,676

DirectorsThe Directors are noted on page 7. The Directors served throughout the period.

None of the Directors has a service contract with the Company and no such contract is proposed. As at 31 January 2018 none of the Directors, their associates or the Investment Manager held any participating shares in the Company. Mr Wilson and Mr Moorshead waived their entitlement to Directors’ fees, Mr Phillips is entitled to a fee of £22,500 per annum and Mr Maubec is entitled to a fee of £15,000 per annum.

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Directors’ Report (continued)

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

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

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

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

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

The following Funds have been accepted into the Reporting Fund regime.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

• Kleinwort Hambros Elite EUR Fixed Income Fund – B EUR Income Reporting Shares*

*Fully redeemed on 30 November 2017.

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Directors’ Report (continued)

Directors’ responsibilities

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

• select suitable accounting policies and apply them consistently;

• make judgements and estimates that are reasonable and prudent;

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

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

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

At the date of approval of the financial statements each of the persons who are a Director confirms that:

• so far as the Director is aware, there is no relevant audit information of which the Company’s auditor is unaware; and

• the Director has taken all steps he/she ought to have taken as a Director to make him/herself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of Section 249 of the Law.

Director: Roger Phillips

Director: Martin Wilson

17 May 2018

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Comparative Table

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

31 January 2018 31 July 2017 31 July 2016 31 July 2015

Sterling Fixed Income FundA Income Reporting Shares £10.71 £10.93 £11.21 £10.94B Income Reporting Shares £0.92 £0.94 £0.97 £0.94Multi Asset Balanced FundA GBP Income Reporting Shares £1.70 £1.65 £1.52 £1.45A GBP Reinvest Reporting Shares £1.70 £1.65 £1.52 £1.45B GBP Income Reporting Shares £1.64 £1.60 £1.47 £1.40A USD Accumulating Reporting Shares $1.33 $1.29 $1.19 $1.12A USD Accumulating Non-reporting Shares $1.33 $1.29 $1.19 $1.12A EUR Accumulating Reporting Shares €1.19 €1.17 €1.10 €1.05B USD Accumulating Non-reporting Shares $1.30 $1.26 $1.16 $1.11B EUR Accumulating Non-reporting Shares €1.23 €1.20 €1.13 €1.08B GBP Accumulating Non-reporting Shares £1.34 £1.30 £1.20 £1.13Multi Asset Conservative FundA GBP Income Reporting Shares £1.11 £1.11 £1.09 £1.06B GBP Income Reporting Shares £1.07 £1.07 £1.05 £1.03A EUR Accumulating Reporting Shares €1.08 €1.08 €1.06 €1.02B USD Accumulating Non-reporting Shares $1.13 $1.12 $1.08 $1.03B EUR Accumulating Non-reporting Shares €1.07 €1.07 €1.05 €1.02B GBP Accumulating Non-reporting Shares £1.16 £1.15 £1.11 £1.06Multi Asset Growth Fund A GBP Income Reporting Shares £1.62 £1.55 £1.38 £1.27A GBP Reinvest Reporting Shares £1.62 £1.55 £1.37 £1.27B GBP Income Reporting Shares £1.50 £1.44 £1.28 £1.18A USD Accumulating Reporting Shares $1.50 $1.43 $1.27 $1.17B USD Accumulating Non-reporting Shares $1.46 $1.39 $1.24 $1.15B EUR Accumulating Non-reporting Shares €1.38 €1.34 €1.21 €1.13B GBP Accumulating Non-reporting Shares £1.50 £1.44 £1.28 £1.18International Equity Fund A GBP Income Reporting Shares £1.65 £1.58 £1.41 £1.14A GBP Reinvest Reporting Shares £1.66 £1.59 £1.42 £1.15B GBP Accumulating Non-reporting Shares £2.06 £1.98 £1.76 £1.41Elite Trojan Fund Participating Shares £0.58 £0.58 £0.61 £0.57

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

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For the period ended 31 January 2018

TotalNon-

Cellular

SterlingFixed Income

Fund

Multi Asset Balanced

Fund

Multi Asset Conservative

Fund

Multi AssetGrowth Fund

International Equity Fund

GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund

International Bond Fund

EUR Fixed

Income

Trojan Fund

2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018Notes £ £ £ £ £ £ £ £ € US$ £ € £

Net capital (losses)/gains 3,819,010 (397,616) 1,275,549 (13,970) 1,621,752 1,001,751 102 378,289 8,467 (42,415) 28,565 7,523

Other losses - capital expenses 3 (327,205) (144,678) - (125,449) - - - - - (18,885) (43,173) -

Revenue 1,887,703 352,163 739,391 152,797 382,641 197,447 1,617 - 4,222 24,622 38,267 57

Expenses 3 (1,776,713) - (683,624) - (503,422) (207,720) (10,548) (399,710) (18,790) - - (3,567)

Interest payable and similar charges (2,097) (265) - - (358) (723) - (282) - (11) (647) -

Net revenue/(expense) before taxation 108,893 - 351,898 55,767 152,797 (121,139) (10,996) (8,931) (399,992) (14,568) 24,611 37,620 (3,510)

Taxation (47,284) - - - 1,587 (45,873) - - - (19) (3,368) -

Net revenue/(expense) after taxation 61,609 - 351,898 55,767 152,797 (119,552) (56,869) (8,931) (399,992) (14,568) 24,592 34,252 (3,510)

Total return before distribution 3,553,414 (190,396) 1,331,316 13,378 1,502,200 944,882 (8,829) (21,703) (6,101) (36,708) 19,644 4,013

Distributions 4 (548,070) (355,813) (1,869) (145,317) - - - - - (20,929) (27,290) -

Change in net assets attributable to shareholders from investment activities

3,005,344 (546,209) 1,329,447 (131,939) 1,502,200 944,882 (8,829) (21,703) (6,101) (57,637) (7,646) 4,013

Condensed Interim Statement of Total Return

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

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

Condensed Interim Statement of Change in Net Assets Attributable to Shareholders

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018Notes £ £ £ £ £ £ £ £ € US$ £ € £

Opening net assets attributable to shareholders

210,844,599 100 27,060,791 78,066,370 13,082,008 55,629,127 23,331,985 2,838,323 3,429,112 1,046,838 2,974,780 4,080,714 350,926

Effect of foreign exchange rate changes

(73,862) - - - - - - - - - - - -

Amounts receivable on issues of shares

7,008,541 - 1,309,709 3,104,679 993,079 1,304,522 267,870 - 4,657 - 4,912 22,213 -

Amounts payable on redemptions of shares

(30,482,353) - (2,432,558) (7,008,551) (452,976) (4,074,505) (3,313,649) (2,829,494) (3,412,066) (1,040,737) (2,941,107) (4,095,281) -

(23,473,812) - (1,122,849) (3,903,872) 540,103 (2,769,983) (3,045,779) (2,829,494) (3,407,409) (1,040,737) (2,936,195) (4,073,068) -


122,125 - - - 103,073 - - - - - 19,052 - -

Retained distribution on accumulation shares

3,005,344 - (546,209) 1,329,447 (131,939) 1,502,200 944,882 (8,829) (21,703) (6,101) (57,637) (7,646) 4,013

Closing net assets attributable to shareholders

190,424,394 100 25,391,733 75,491,945 13,593,245 54,361,344 21,231,088 - - - - - 354,939


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TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018Notes £ £ £ £ £ £ £ £ € US$ £ € £

Net capital (losses)/gains 3,819,010 (397,616) 1,275,549 (13,970) 1,621,752 1,001,751 102 378,289 8,467 (42,415) 28,565 7,523


Revenue 1,887,703 352,163 739,391 152,797 382,641 197,447 1,617 - 4,222 24,622 38,267 57

Expenses 3 (1,776,713) - (683,624) - (503,422) (207,720) (10,548) (399,710) (18,790) - - (3,567)

Interest payable and similar charges (2,097) (265) - - (358) (723) - (282) - (11) (647) -

Net revenue/(expense) before taxation 108,893 - 351,898 55,767 152,797 (121,139) (10,996) (8,931) (399,992) (14,568) 24,611 37,620 (3,510)

Taxation (47,284) - - - 1,587 (45,873) - - - (19) (3,368) -


Total return before distribution 3,553,414 (190,396) 1,331,316 13,378 1,502,200 944,882 (8,829) (21,703) (6,101) (36,708) 19,644 4,013

Distributions 4 (548,070) (355,813) (1,869) (145,317) - - - - - (20,929) (27,290) -


3,005,344 (546,209) 1,329,447 (131,939) 1,502,200 944,882 (8,829) (21,703) (6,101) (57,637) (7,646) 4,013

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018Notes £ £ £ £ £ £ £ £ € US$ £ € £


210,844,599 100 27,060,791 78,066,370 13,082,008 55,629,127 23,331,985 2,838,323 3,429,112 1,046,838 2,974,780 4,080,714 350,926


(73,862) - - - - - - - - - - - -


7,008,541 - 1,309,709 3,104,679 993,079 1,304,522 267,870 - 4,657 - 4,912 22,213 -


(30,482,353) - (2,432,558) (7,008,551) (452,976) (4,074,505) (3,313,649) (2,829,494) (3,412,066) (1,040,737) (2,941,107) (4,095,281) -

(23,473,812) - (1,122,849) (3,903,872) 540,103 (2,769,983) (3,045,779) (2,829,494) (3,407,409) (1,040,737) (2,936,195) (4,073,068) -


122,125 - - - 103,073 - - - - - 19,052 - -


3,005,344 - (546,209) 1,329,447 (131,939) 1,502,200 944,882 (8,829) (21,703) (6,101) (57,637) (7,646) 4,013


190,424,394 100 25,391,733 75,491,945 13,593,245 54,361,344 21,231,088 - - - - - 354,939

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TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

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

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


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

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

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

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

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


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

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


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

Condensed Interim Statement of Total Return

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

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

Condensed Interim Statement of Change in Net Assets Attributable to Shareholders

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

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


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


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


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


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

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


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


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


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


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TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

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

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


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

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

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

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

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


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

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


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

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

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


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


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


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


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

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


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


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


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

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TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018Note £ £ £ £ £ £ £ £ € US$ £ € £

Assets

Fixed assets

Investments 185,033,718 - 25,153,573 71,514,757 12,936,005 53,983,223 21,225,055 - - - - - 221,105

Current assets

Debtors 1,053,829 - 275,370 594,046 36,489 126,168 21,559 63 - 168 - - -

Cash and bank balances 5,666,497 100 149,308 3,964,467 727,944 666,113 24,064 - - - - - 134,501

Total Assets 191,754,044 100 25,578,251 76,073,270 13,700,438 54,775,504 21,270,678 63 - 168 - - 355,606

Liabilities

Creditors

Bank overdrafts (205,307) - - (187,800.00) - (17,310) - (63) - (168) - - -

Distributions payable (202,250) - (158,274) - (43,976) - - - - - - - -

Other creditors (922,093) - (28,244) (393,525) (63,217) (396,850) (39,590) - - - - - (667)

Total Liabilities (1,329,650) - (186,518) (581,325) (107,193) (414,160) (39,590) (63) - (168) - - (667)

Net assets attributable to holders of Management shares

100 100

Net assets attributable to holders of Redeemable Participating Shares

190,424,294 - 25,391,733 75,491,945 13,593,245 54,361,344 21,231,088 - - - - - 354,939

Net asset value per Participating Share - 3.16 1.32 1.07 1.35 2.04 - - - - - 0.58

Condensed Interim Balance Sheet

As at 31 January 2018

The financial statements on pages 18 to 34 were approved by the Board of Directors on 17 May 2018 and are signed on its behalf by:

Roger Phillips Martin Wilson Director Director

Date: 17 May 2018

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

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TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018Note £ £ £ £ £ £ £ £ € US$ £ € £

Assets

Fixed assets

Investments 185,033,718 - 25,153,573 71,514,757 12,936,005 53,983,223 21,225,055 - - - - - 221,105

Current assets

Debtors 1,053,829 - 275,370 594,046 36,489 126,168 21,559 63 - 168 - - -

Cash and bank balances 5,666,497 100 149,308 3,964,467 727,944 666,113 24,064 - - - - - 134,501

Total Assets 191,754,044 100 25,578,251 76,073,270 13,700,438 54,775,504 21,270,678 63 - 168 - - 355,606

Liabilities

Creditors

Bank overdrafts (205,307) - - (187,800.00) - (17,310) - (63) - (168) - - -

Distributions payable (202,250) - (158,274) - (43,976) - - - - - - - -

Other creditors (922,093) - (28,244) (393,525) (63,217) (396,850) (39,590) - - - - - (667)

Total Liabilities (1,329,650) - (186,518) (581,325) (107,193) (414,160) (39,590) (63) - (168) - - (667)


100 100


190,424,294 - 25,391,733 75,491,945 13,593,245 54,361,344 21,231,088 - - - - - 354,939

Net asset value per Participating Share - 3.16 1.32 1.07 1.35 2.04 - - - - - 0.58

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Condensed Interim Balance Sheet (continued)

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

As at 31 July 2017 (Audited)

TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

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

Assets

Fixed assets

Investments 194,096,170 - 26,750,358 72,688,415 12,240,070 52,799,913 22,904,038 - - - 2,918,377 4,004,715 213,581

Current assets

Debtors 1,962,745 - 221,239 403,476 864,835 350,739 44,045 440 218 1,157 18,799 64,854 101

Cash and bank balances 16,710,840 100 354,342 5,375,683 858,870 2,760,986 431,433 2,840,255 3,431,607 1,047,764 42,546 50,439 137,876

Total Assets 212,769,755 100 27,325,939 78,467,574 13,963,775 55,911,638 23,379,516 2,840,695 3,431,825 1,048,921 2,979,722 4,120,008 351,558

Liabilities

Creditors

Bank overdrafts (125,136) - - (77,129) - (48,007) - - - - - - -

Distributions payable (360,192) - (233,964) (49,955) (39,710) - (7,342) - - - - (32,675) -

Other creditors (1,439,928) - (31,184) (274,120) (842,057) (234,504) (40,189) (2,372) (2,713) (2,083) (4,942) (6,619) (632)

Other creditors and accruals (1,800,120) - (265,148) (324,075) (881,767) (234,504) (47,531) (2,372) (2,713) (2,083) (4,942) (39,294) (632)

Total Liabilities (1,925,256) - (265,148) (401,204) (881,767) (282,511) (47,531) (2,372) (2,713) (2,083) (4,942) (39,294) (632)


100 100


210,844,399 - 27,060,791 78,066,370 13,082,008 55,629,127 23,331,985 2,838,323 3,429,112 1,046,838 2,974,780 4,080,714 350,926

Net asset value per Participating Share 3.09 1.31 1.09 1.32 1.95 0.98 0.96 0.94 0.99 0.94 0.58

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TotalNon-

Cellular


Fund


Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR Fixed

Income

Trojan Fund

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

Assets

Fixed assets

Investments 194,096,170 - 26,750,358 72,688,415 12,240,070 52,799,913 22,904,038 - - - 2,918,377 4,004,715 213,581

Current assets

Debtors 1,962,745 - 221,239 403,476 864,835 350,739 44,045 440 218 1,157 18,799 64,854 101

Cash and bank balances 16,710,840 100 354,342 5,375,683 858,870 2,760,986 431,433 2,840,255 3,431,607 1,047,764 42,546 50,439 137,876

Total Assets 212,769,755 100 27,325,939 78,467,574 13,963,775 55,911,638 23,379,516 2,840,695 3,431,825 1,048,921 2,979,722 4,120,008 351,558

Liabilities

Creditors

Bank overdrafts (125,136) - - (77,129) - (48,007) - - - - - - -

Distributions payable (360,192) - (233,964) (49,955) (39,710) - (7,342) - - - - (32,675) -

Other creditors (1,439,928) - (31,184) (274,120) (842,057) (234,504) (40,189) (2,372) (2,713) (2,083) (4,942) (6,619) (632)

Other creditors and accruals (1,800,120) - (265,148) (324,075) (881,767) (234,504) (47,531) (2,372) (2,713) (2,083) (4,942) (39,294) (632)

Total Liabilities (1,925,256) - (265,148) (401,204) (881,767) (282,511) (47,531) (2,372) (2,713) (2,083) (4,942) (39,294) (632)


100 100


210,844,399 - 27,060,791 78,066,370 13,082,008 55,629,127 23,331,985 2,838,323 3,429,112 1,046,838 2,974,780 4,080,714 350,926

Net asset value per Participating Share 3.09 1.31 1.09 1.32 1.95 0.98 0.96 0.94 0.99 0.94 0.58

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Notes to the Condensed Interim Financial StatementsFor the period ended 31 January 2018

1. Principal activityThe Company was registered as a company with limited liability in Guernsey on 30 September 2004 and is authorised by the GFSC as a Class B Scheme under The Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended. The Company is an open-ended investment Protected Cell Company governed by the provisions of The Law and has elected to be treated as an authorised investment scheme under the Authorised Collective Investment Schemes (Class B) Rules, 2013. The Company retains the option to create new Cells with different investment objectives and terms in the future. The active Cells in issue as at 31 January 2018 were as follows:

• Kleinwort Hambros Elite Multi Asset Conservative Fund• Kleinwort Hambros Elite Multi Asset Balanced Fund• Kleinwort Hambros Elite Sterling Fixed Income Fund• Kleinwort Hambros Elite Multi Asset Growth Fund • Kleinwort Hambros Elite International Equity Fund• Kleinwort Hambros Elite Trojan Fund

The following cells were fully redeemed and are no longer active as of 30 November 2017:

• Kleinwort Hambros Elite GBP Currency Fund• Kleinwort Hambros Elite EUR Currency Fund• Kleinwort Hambros Elite US Dollar Currency Fund• Kleinwort Hambros Elite International Bond Fund• Kleinwort Hambros Elite EUR Fixed Income Fund

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

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

The same accounting policies, presentation and methods of computation are followed in these condensed financial statements as those followed in the preparation of the Company’s audited financial statements for the year ended 31 July 2017. These financial statements have been prepared under the historical cost convention, as modified for the revaluation of investments.

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

The comparative numbers used for the Condensed Interim Statement of Total Return and Condensed Interim Statements of Movement in Net Assets Attributable to Shareholders are for the Interim period ended 31 January 2017, which is considered a comparable period as defined per the United Kingdom accounting standards. The comparatives used in the condensed interim Balance Sheet are that of the previous financial year end, 31 July 2017.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Notes to the Condensed Interim Financial Statements (continued)

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

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

£0 to £400,000,000 0.035% per annum

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

Above £500,000,000 0.025% per annum

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

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

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

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

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TotalSterlingFixed

Income Fund

Multi AssetBalanced

Fund

Multi AssetConservative

Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund


EUR FixedIncome Fund

Trojan Fund

2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018£ £ £ £ £ £ £ € US$ £ € £

Investment manager fee 1,344,667 99,555 552,077 97,078 407,375 166,890 448 514 166 9,322 12,820 -

Custodian fee 52,137 4,642 13,632 3,277 9,761 3,928 2,717 3,820 3,464 2,485 2,731 3,276

Other expenses

Admin fees 164,441 22,046 59,573 10,777 42,436 19,833 1,843 2,101 896 2,598 3,163 -

Directors fees 18,746 2,413 7,128 1,268 5,123 2,028 165 180 62 169 241 33

Audit fee 23,645 3,047 9,055 1,782 7,385 2,557 (34) (156) (9) (18) (25) 38

Sundry expenses 500,282 12,975 42,159 11,267 31,342 12,484 5,409 393,251 14,211 4,329 24,243 220

Total other expenses 707,114 40,480 117,915 25,094 86,286 36,902 7,383 395,376 15,160 7,078 27,622 291

Total expenses 2,103,918 144,678 683,624 125,449 503,422 207,720 10,548 399,710 18,790 18,885 43,173 3,567


3. Expenses (continued)

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

TotalSterlingFixed

Income Fund

Multi AssetBalanced

Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund



Trojan Fund

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

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

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

Other expenses

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

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

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

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


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


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TotalSterlingFixed

Income Fund

Multi AssetBalanced

Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund



Trojan Fund

2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018£ £ £ £ £ £ £ € US$ £ € £

Investment manager fee 1,344,667 99,555 552,077 97,078 407,375 166,890 448 514 166 9,322 12,820 -

Custodian fee 52,137 4,642 13,632 3,277 9,761 3,928 2,717 3,820 3,464 2,485 2,731 3,276

Other expenses

Admin fees 164,441 22,046 59,573 10,777 42,436 19,833 1,843 2,101 896 2,598 3,163 -

Directors fees 18,746 2,413 7,128 1,268 5,123 2,028 165 180 62 169 241 33

Audit fee 23,645 3,047 9,055 1,782 7,385 2,557 (34) (156) (9) (18) (25) 38

Sundry expenses 500,282 12,975 42,159 11,267 31,342 12,484 5,409 393,251 14,211 4,329 24,243 220


Total expenses 2,103,918 144,678 683,624 125,449 503,422 207,720 10,548 399,710 18,790 18,885 43,173 3,567


3. Expenses (continued)

TotalSterlingFixed

Income Fund

Multi AssetBalanced

Fund


Fund



GBP Currency

Fund

EUR Currency

Fund

USD Currency

Fund



Trojan Fund

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

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

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

Other expenses

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

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

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

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


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

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TotalSterling

Fixed Income Fund


Fund


Fund

Multi Asset GrowthFund


International BondFund

Euro Fixed IncomeFund

£ £ £ £ £ £ £ £

Interim dividend paid 31 December 2017 (Ex-dividend 31 October 2017) 232,894 192,226 – – – – 19,052 24,434

Interim Dividend paid 31 March 2018 (Ex dividend 31 January 2018) 305,323 158,274 – 147,049 – – – –

538,217 350,500 – 147,049 – – 19,052 24,434

Accrued income paid on shares redeemed 18,131 9,045 2,118 2,486 – – 1,882 2,939

Equalisation received on shares issued (8,277) (3,732) (249) (4,218) – – (5) (83)

Dividends paid during the period 548,070 355,813 1,869 145,317 – – 20,929 27,290

TotalSterling

Fixed Income Fund


Fund


Fund





£ £ £ £ £ £ £ £

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

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

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

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

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

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

4. Income DistributionsFor the period ended 31 January 2018



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TotalSterling

Fixed Income Fund


Fund


Fund





£ £ £ £ £ £ £ £

Interim dividend paid 31 December 2017 (Ex-dividend 31 October 2017) 232,894 192,226 – – – – 19,052 24,434

Interim Dividend paid 31 March 2018 (Ex dividend 31 January 2018) 305,323 158,274 – 147,049 – – – –

538,217 350,500 – 147,049 – – 19,052 24,434

Accrued income paid on shares redeemed 18,131 9,045 2,118 2,486 – – 1,882 2,939

Equalisation received on shares issued (8,277) (3,732) (249) (4,218) – – (5) (83)

Dividends paid during the period 548,070 355,813 1,869 145,317 – – 20,929 27,290

TotalSterling

Fixed Income Fund


Fund


Fund





£ £ £ £ £ £ £ £

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

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

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

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

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

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


4. Income Distributions (continued)

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

The only related party transactions are described below:

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

Directors fees of £18,746 were charged during the period (2017: £18,953) of which £Nil was due at the period end (2017: £Nil).

The fees and expenses payable to the AIFM, Administrator and the Custodian are explained in note 3. The balances payable at the end of the period were £234,281, £26,445 and £6,848 respectively (31 January 2017: AIFM £237,559, Administrator £29,780 and Custodian £9,779).

6. Subsequent eventsOn 29 January 2018 the following dividends were declared: Kleinwort Hambros Sterling Fixed Income Fund £158,274, Kleinwort Hambros Multi Asset Conservative Fund £147,049 and these dividends were paid on 16 March 2018.

On 26 April 2018 the following dividends were declared: Kleinwort Hambros Sterling Fixed Income Fund £134,818. These dividends are payable on 15 June 2018.


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Nominal Description Cost £ Market Value £ % of Net Assets

Government Bonds 22.11% (2017: 34.76%)

1,166,000 UK Government 1.875% 22/11/2022 2,021,443 1,863,181 7.34

800,000 UK Government 2.25% 07/09/2023 769,368 849,240 3.34

1,040,000 UK Government 5% 07/03/2025 1,249,903 1,303,900 5.14

200,000 UK Government 4.25% 07/12/2027 251,508 250,220 0.99

747,000 UK Government 2.75% 07/9/2024 832,961 819,945 3.23

400,000 UK Treasury 4.25% 07/06/32 529,112 526,440 2.07

5,654,295 5,612,926 22.11

Corporate Bonds 76.96% (2017: 63.73%)

500,000 National Grid Electricity Trans. 5.875% 02/02/2024 589,475 610,725 2.42

800,000 Tesco Plc 5% 24/03/2023 855,159 893,080 3.52

450,000 American InternationaI Group 5% 26/04/2023 478,845 513,179 2.02

700,000 Commonwealth Bank of Australia 1.28% 26/10/2018 703,290 703,360 2.77

350,000 Daimler AG 3.5% 06/06/2019 369,880 361,760 1.42

500,000 Experian Finance plc 3.5% 15/10/2021 527,837 535,025 2.11

500,000 Nordea Bank 2.125% 13/11/2019 504,725 509,925 2.01

300,000 Barclays Bank Plc 14% 15/06/2020 409,500 347,775 1.37

490,000 Ladbrokes Group Finance Plc 5.125% 16/09/2022 490,000 540,593 2.13

1,400,000 Euro Inv Floating Rate Bond 17/02/2020 1,406,720 1,408,540 5.55

745,000 Lloyds Bank Plc Floating Rate Note 16/01/2020 747,384 747,757 2.94

690,000 Lvmh Moet Hennessy Louis Vuitton Se 1% 14/06/2022 686,118 682,410 2.69

750,000 Marks & Spencer Plc Bonds 4.75% 12/06/2025 884,918 839,474 3.31

650,000 Thames Wtr Utilities Caymn Finance Ltd 4% 19/06/2025 743,054 723,873 2.85

980,000 Thames Wtr Utilities Caymn Finance Ltd 4% 19/06/2025 980,776 976,668 3.85

750,000 Tsb Banking Group Plc Bonds 5.75% 06/05/2021 798,525 830,400 3.27

760,000 Wells Fargo & Co 1.375% 30/06/2022 756,906 747,156 2.94

700,000 Barclays 0.5115% 220520 702,800 701,855 2.76

800,000 Bat C Corp 2.125% 15/8/25 798,673 789,840 3.11

525,000 Bunzl Fin 2.25% 11/06/25 530,565 523,609 2.06

645,000 Council Eu 0.625% 15/6/22 642,356 628,101 2.47

1,000,000 Discovry Com 2.5% 20/9/24 991,500 990,400 3.90

800,000 Eur Inv Bk 0.875% 151223 797,208 777,720 3.06

1,000,000 Euro Inv Bk Frn 21/05/21 1,007,100 1,006,300 3.96

660,000 Manitoba 0.75% 15/12/2021 650,298 645,216 2.54

525,000 Rbs 0.53963% 15/05/20 527,573 526,706 2.07

1,000,000 Unilever 1.375% 15/09/24 993,900 979,200 3.86

19,575,085 19,540,647 76.96

Total Investments 99.06% (2017: 98.49%) 25,229,380 25,153,573 99.06

Net Current Assets 0.94% (2017: 1.51%) 238,160 0.94

Net Assets attributable to Participating Shareholders as at 31 January 2018 25,391,733 100.00

Cell Portfolio of InvestmentsSterling Fixed Income Fund

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Cell Portfolio of Investments (continued)Multi Asset Balanced Fund



United Kingdom 15.63% (2017: 19.34%)

7,864,000 UK Government 4.75% 07/03/2020 9,268,261 8,526,149 11.29

1,234,000 UK Treasury 2% 26/01/2035 2,991,216 3,273,740 4.34

12,259,477 11,799,889 15.63

Funds 79.11% (2017: 62.84%)

United Kingdom 26.25% (2017: 26.85%)

2,140,000 FIL Investment Services(UK)Limited Institutional Emerging Markets W Acc 2,160,220 3,554,540 4.71

4,270,000 FIL Investment Services 4,959,407 7,407,169 9.81

1,494,522 Threadneedle UK Inc 1,927,221 2,354,021 3.12

4,134,929 Kames Capital High Yield Bond Fund 4,146,653 4,109,292 5.44

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

107,124 Jupiter Unit Trust Managers European Fund 2,243,803 2,369,369 3.14

15,452,272 19,819,161 26.25

Euroland 52.86% (2017: 35.79% )

3,878,104 FIL Investment Management 3,843,201 5,437,102 7.20

1,117,184 Hermes Investment Management 1,513,226 2,503,945 3.32

18,004 Legg Mason FD Clearbridge 3,212,998 4,067,825 5.39

377,829 Pimco Global 5,146,031 5,232,932 6.93

12,500 Tokio-Marine Funds 2,149,850 2,980,316 3.95

1,171,930 J O Hambro Capital Mgt Ltd Continental Euro A Gbp 4,109,777 5,433,067 7.20

18,276 Ishares Vii Plc - Ishares Core S&P 500 Ucits 3,031,270 3,516,028 4.66

106,937 Blackrock Luxembourg S.A. Continental Europe 1,993,060 2,345,128 3.11

22,000 AXA Fund Emg Shrt Durtion 2,049,010 2,029,280 2.69

159,530 IShares Physical Gold ETC 3,067,039 2,964,067 3.93

24,800 Lyxor Multi Units Lux 3,507,227 3,384,332 4.48

33,622,689 39,894,022 52.86

Equities 0.00% (2017: 0.05%)

United Kingdom 0.00% (2017: 0.05%)

561,734 Duet Real Estate Finance 234,852 1,685 -

234,852 1,685 -


Net Current Assets 5.26% (2017: 12.46% ) 3,977,188 5.26



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Cell Portfolio of Investments (continued)Multi Asset Conservative Fund



United Kingdom 21.38% (2017: 26.66%)

808,700 UK Government 4.75% 07/03/2020 952,224 876,793 6.45

1,200,000 UK Government 1.75% GILT 22/07/2019 1,241,112 1,219,440 8.97

305,600 UK Treasury 2% 26/01/2035 740,774 810,741 5.96

2,934,110 2,906,974 21.38

Corporate Bonds 0.00% (2017: 3.72%)

United Kingdom 0.00% (2017: 3.72%)

Funds 73.79% (2017: 59.22%)

United Kingdom 32.10% (2017: 23.18%)

265,031 FIL Investment Services(UK)Limited Institutional Emerging Markets W Acc 297,264 440,216 3.24

556,970 FIL Investment Services 660,965 1,247,506 9.18

10,610 iShares IV Plc 1,065,562 1,065,032 7.84

262,704 Threadneedle UK Inc 363,567 413,786 3.04

533,502 Kames Capital High Yield Bond Fund 514,697 530,194 3.90

60,079 Tapestry Investment Company 4,259 7,630 0.06

21,170 Ishares Gold Trust ETF 407,003 393,339 2.89

2,880 AXA Global Short Duration Bond Fund 267,926 265,651 1.95

3,581,243 4,363,354 32.10

Euroland 41.69% (2017: 36.04%)

529,367 FIL Investment Management 551,067 742,172 5.46

68,655 Pimco Global 935,081 950,872 7.00

1,143,100 Smith & Williamson Inc 1,109,015 1,061,368 7.81

1,305 Tokio-Marine Funds 225,525 311,145 2.29

142,572 J O Hambro Cap-Cont Eurp 512,816 824,601 6.07

11,900 Jpmorgan Gbl Corp Gbp 809,914 949,906 6.99

4,850 Multi Units Lux Ftse 675,390 825,613 6.07

4,818,808 5,665,677 41.69





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Cell Portfolio of Investments (continued)Multi Asset Growth Fund



United Kingdom 5.22% (2017: 6.81% )

2,615,000 UK Government 4.75% 07/03/2020 3,076,871 2,835,183 5.22

3,076,871 2,835,183 5.22

Corporate Bonds 0.00% (2017: 5.37%)

United Kingdom 0.00% (2017: 5.37%)

Funds 89.13% (2017: 78.87%)

United Kingdom 32.97% (2017: 30.44%)

2,334,694 FIL Investment Services(UK)Limited Institutional Emerging Markets W Acc 2,357,589 3,877,927 7.13

3,067,487 FIL Investment Services 3,563,301 5,321,170 9.79

1,681,412 Kames Capital High Yield Bond Fund 1,633,601 1,670,987 3.07

2,117,077 Threadneedle UK Inc 2,746,659 3,334,607 6.13

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

168,400 Jupiter Unit Trust Managers European Fund 3,349,025 3,724,671 6.85

13,650,858 17,930,392 32.97

Euroland 56.16% (2017: 48.43%)

2,773,487 FIL Investment Management 2,748,526 3,888,429 7.15

956,263 Hermes Investment Management 1,295,258 2,143,272 3.94

17,541 Legg Mason FD Clearbridge 2,741,658 3,963,214 7.29

156,884 Pimco Global 2,142,621 2,172,843 4.00

13,762 Tokio-Marine Funds 2,463,843 3,281,209 6.04

181,700 Blackrock Luxembourg S.A. Continental Europe 3,266,966 3,984,681 7.33

25,853 Ishares Vii Plc - Ishares Core S&P 500 Ucits 3,923,141 4,973,729 9.15

870,809 J O Hambro Capital Mgt Ltd Continental Euro A Gbp 2,920,493 4,037,071 7.43

3,900 Multi Units Luxembourg Lyxor Ftse Actuaries Uk 545,454 532,214 0.98

16,800 AXA Fund Emg 1,562,904 1,549,632 2.85

22,047,960 30,526,294 56.16

Equities 4.95% (2017: 0.06%)

United Kingdom 4.95% (2017: 0.06%)

434,628 Duet Real Estate Finance 168,533 1,304 -

144,782 iShares Physical Gold ETC 2,783,506 2,690,050 4.95

2,952,039 2,691,354 4.95





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Cell Portfolio of Investments (continued)International Equity Fund



Equities 98.14% (2017: 99.73%)

Asia 13.15% (2017: 13.51%)

410,000 China Construction Bank 2,007,661 332,313 1.57

8,600 Bridgestone Coporation 36,156,714 294,000 1.38

94,500 CLP Holdings Limited 6,407,112 678,642 3.20

191,400 Mizuho Financial Group 46,355,729 253,332 1.19

1,143,000 Agricultural Bank Ch 'H'Cny1 4,008,244 493,784 2.33

21,200 Kirin Holdings Company Limited Npv 53,535,025 371,694 1.75

11,000 Nippon Telegraph & Telephone Corp Npv 50,719,515 368,039 1.73

199,190,000 2,791,804 13.15

Canada 5.08% (2017: 11.94%)

9,572 Bank of Montreal 765,813 555,592 2.62

8,450 George Weston Ltd 860,907 521,901 2.46

1,626,720 1,077,493 5.08

Euroland 23.52% (2017: 20.36%)

8,500 Nestle SA 619,986 517,033 2.44

4,470 BASF SE 310,152 368,812 1.74

28,100 Relx NV 402,067 441,062 2.08

5,540 Vinci 367,578 422,129 1.99

2,191 Allianz Ag 310,921 391,119 1.84

10,587 Scor Se 329,196 334,437 1.58

2,350 Roche Holding Ag Common Stock Npv 593,717 407,981 1.92

7,000 Swiss Re Ag 620,033 486,210 2.29

8,903 Amadeus It Group Sa 391,270 487,531 2.30

5,300 Schneider Electric Sa Common Stock 367,422 349,984 1.65

5,300 Thales Eur 427,866 419,581 1.98

4,113 Wirecard Ag Npv 247,113 363,281 1.71

4,987,321 4,989,160 23.52

United Kingdom 5.91% (2017: 4.59%)

10,811 Amdocs Limited 611,934 520,118 2.45

6,171 Carnival Plc Ord 277,662 306,699 1.44

28,905 Compass Group Plc - Ord 337,966 428,517 2.02

1,227,562 1,255,334 5.91

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



United States of America 52.34% (2017: 47.56%)

2,424 Amgen Inc (USD) 352,576 317,171 1.49

9,088 Wells Fargo and Company 450,175 420,481 1.98

4,477 Berkshire Hathaway Class'b' 629,273 675,493 3.18

4,489 Cintas Corporation 383,249 531,779 2.50

4,440 Nextera Energy Inc 453,978 494,643 2.33

6,216 Jack Henry & Associates Inc 407,833 544,864 2.57

2,043 Teleflex Inc 268,539 398,924 1.88

4,721 United Technologies Corp 511,590 458,140 2.16

10,331 Waste Management Inc 500,735 642,613 3.03

6,525 Dr Pepper Snapple Group Inc 482,097 547,793 2.58

5,000 Avery Dennison Corporation Common Stock 422,455 431,279 2.03

15,900 Comcast Corporation Com Class A 669,169 475,921 2.24

9,100 Procter & Gamble Company 797,180 552,796 2.60

4,525 Valero Energy Corporation 310,998 305,490 1.44

6,956 Rio Tinto Ltd 478,498 304,792 1.44

33,685 Wpp Plc Ord Gbp0.10 464,985 430,495 2.03

64,000 Geely Automobile Hkd 1,684,557 143,996 0.67

377,000 Wh Group Ltd Usd 3,309,759 328,276 1.54

5,900 Omron Corp Npv 39,198,537 259,035 1.21

14,300 Bank Of America Corp 415,623 321,839 1.52

17,962 Corning Inc Com Usd0.50 525,190 394,531 1.86

5,800 Johnson & Johnson Usd 1 771,074 563,747 2.66

21,900 Keycorp Usd 436,479 329,643 1.55

6,100 Microsoft Corporation 514,541 408,347 1.92

5,073 Texas Instruments Inc 419,793 391,253 1.84

5,728 Walt Disney Co 562,780 437,923 2.06

55,421,663 11,111,264 52.31

Australia 0.00% (2017: 1.77%)




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Cell Portfolio of Investments (continued)Global Trojan Fund



Funds 62.29% (2017: 78.72%)

United Kingdom 62.29% (2017: 78.72%)

1,975 EEA Life Settlement Fund PCC (Life Settlements STR Acc c) 307,852 221,105 62.29

307,852 221,105 62.29

Total Investments 62.29% (2017: 78.72%) 307,852 221,105 62.29


Net Assets attributable to Participating Shareholders as at 31 January 2018 354,939 100.00

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Cell Summary of Material Portfolio ChangesSterling Fixed Income Fund

Disposals Proceeds £

Government Bonds

UK Government 3.75% 07/09/2020 1,215,588

UK Government 2.75% 07/9/2024 728,794

UK Treasury 5% 07/03/2025 652,032

2,596,414

Corporate Bonds

Barclays Bank Plc Floating Rate Mtn 15/09/2017 1,000,000

Admiral Group Plc 5.5% Sub 25/07/2024 Gbp1000 920,704

Verizon Communications Inc 4.073% 18/06/2024 900,720

William Hill Plc 4.875% Snr Nts 07/09/2023 Gbp 882,030

Morrison(W)Suprmkt 3.5% Nts 27/07/26 Gbp100000 823,647

Barclays Bank Plc 14% Perp 533,250

Council Of Europe Development Bank 0.625% 15/06/22 445,723

5,506,074

Top 10 disposals in the period 8,102,488

Acquisitions Cost £

Corporate Bonds

Council Of Europe Development Bank 0.625% 15/06/22 1,095,490

European Investment Bank Frn 21/05/2021 1,007,100

Bat Capital Corporation 2.125% 15/08/2025 998,341

European Investment Bank 0.875% 15/12/2023 996,510

Unilever Plc 1.375% 15/09/2024 993,900

Discovery Communications Llc 2.5% 20/09/2024 991,500

Barclays Bank Plc 0.5115% 22/05/2020 Floating Rate 702,800

Province Of Manitoba Canada 0.75% 15/12/2021 650,298

Bunzl Finance Plc 2.25% 11/06/2025 530,565

Royalbank Scotland 0.53963% 150520 Floating Rate 527,573

8,494,077

Top 10 acquisitions in the period 8,494,077

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


Government Bonds

UK Treasury 4.75% 07/03/2020 3,499,556

3,499,556

Corporate Bonds

SG Issuer 3,905,035

3,905,035

Funds

Blackrock Luxembourg S.A. Continental Europe 2,351,269

Threadneedle Investment Fund Icvc - Uk Zni Inc Nav 1,747,892

Fil Investment Services Uk Ltd Index Us P Inc Nav 1,037,759

Fil Inv Services(Uk)Ltd Instl Emg Mkts W Acc Nav 844,468

J O Hambro Capital Mgt Ltd Continental Euro A Gbp 756,670

Tokio Marine Funds Japanese Equity Focus Fund Gbp 529,077

Pimco Global Investment Grade Cred Hgd Instl 423,900

Ishares Vii Plc - Ishares Core S&P 500 Ucits 372,074

8,063,109



Corporate Bonds

Axa World Emerging Markets Short Duration Bonds 2,049,010

2,049,010

Funds

Multi Units Luxembourg Lyxor Ftse Actuaries UK 3,507,227

Ishares Physical M Ishs Phys Gold Etc Usd(Gbp) 3,067,039

Legg Mason Global Funds 1,480,100

IShares Core S&P 500 Ucits 1,320,160

Jupiter Unit Trust Managers European Fund 1,021,135

10,395,661

Total acquisitions in the period 12,444,671

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


Corporate Bonds

SG Issuer 8Y 09/12/24 394,448

394,448

Funds

Blackrock Luxembourg S.A. Continental Europe 446,814

446,814

Total disposals in the period 841,262


Corporate Bonds

AXA World Emerging Markets Short Duration Bonds 267,926

JP Morgan Funds - Global Corporate Bond Fund 160,154

428,080

Funds

IShares Physical Physical Gold 407,003

Fil Investment Services UK Ltd 277,178

Multi Units Luxembourg Lyxor Ftse Actuaries UK 167,889

J O Hambro Capital Mgt Ltd Continental Euro 162,755

1,014,825


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


Corporate Bonds

SG Issuer 8Y 09/12/24 2,691,796

2,691,796

Funds

Fil Investment Services UK Ltd 654,469

Fil Inv Services(Uk)Ltd Instl Emg Mkts 542,621

Fil Investment Mgt Lux American Growth 495,873

Tokio Marine Funds Japanese Equity 461,961

J O Hambro Capital Mgt Ltd Continental 302,055

Hermes Investment Management Asia Ex-Japan Equity 275,625

Blackrock Luxembourg S.A. Continental Europe 233,640

2,966,244

Total disposals in the period 5,658,040


Funds

IShares Physical Gold 2,783,506

AXA World Emerging Markets Short Duration Bonds 1,562,904

4,346,410


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


Equities

Muenchener Rueckversicherungs-Gesellschaft 552,439

General Dynamics Corporation 490,816

Lockheed Martin Corporation 489,019

Autozone Inc 467,855

British Land Company 464,584

Smucker(J.M.)Co - Com Npv 413,459

Sonic Healtchcare Limited 406,161

Cicso Systems Inc 403,620

Osaka Gas Company 365,346

Toyota Motor Corporation 339,402

4,392,701



Equities

Johnson & Johnson 651,454

Walt Disney Company 469,123

WPP PLC 464,985

Texas Instruments Incorporated 398,616

Corning Incorparated 396,969

Microsoft Corporation 385,164

Keycorp 326,731

WH Group Ltd 318,255

Bank Of America Corporation 311,118

Rio Tinto Ltd 285,970

4,008,385

Top 10 acquisitions in the period 4,008,385

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


Corporate Bonds

FCA Bank Spa/Ireland 1% 15/11/2021 159,834

Unilever PLC 1.375% 15/09/2024 124,238

Discovery Communications 2.5% 20/09/2024 123,938

European Investment Bank 0.875% 15/12/2023 79,721

487,731

Total acquisitions in the period 487,731


Government Bonds

UK Treasury 5% 07/03/2025 256,013

UK Government 2.75% Gilt 07/9/2024 Gbp0.01 251,276

507,289

Corporate Bonds

Ge Capital Uk Funding 4.375% 31/07/2019 264,140

Barclays Bank Plc Floating Rate Mtn 15/09/2017 250,000

Landwirtschaftliche Rentenbank 1.19167% 03/06/2021 233,633

Old Mutual Plc 8% Sub Mtn 03/06/21 230,500

Bmw Finance Nv 1.75% 20/11/2017 200,000

Toyota Motor Credit Corp 1.125% 07/09/2021 199,944

United Kingdom Gilt Infl Linked 1.875% 22/11/2022 195,481

Turkiye Garanti Bankasi As 3.375% 08/07/2019 184,295

1,757,993


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

Acquisitions Cost €

Corporate Bonds

Spain Government Bond 1.5% 30/04/2027 361,012

361,012

Total acquisitions in the period 361,012

Disposals Proceeds €

Government Bonds

Germany 3.5% Bds 04/07/2019 Eur0.01 364,212

Italy 4.5% Bds 01/03/24 Eur1000 302,900

Spain 4.65% Bds 30/07/25 Eur1000 266,985

Germany 3.5% Bds 04/07/2019 Eur0.01 229,818

1,163,915

Corporate Bonds

Euro Invest Bank - 3% Nts 14/10/2033 320,017

Goldman Sachs Group Inc Eur 1.375% 26/07/2022 312,191

Societe Generale 9.375% Perp 289,000

Bank Of America Corp Floating Rate 22/03/2018 265,276

Assicurazioni Generali Spa - 5.125% 16/09/2024 258,200

Anheuser-Busch 2.875% Gtd 25/09/24 230,224

1,674,908


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Contact details

For details of our services and general information about Kleinwort Hambros please visit www.kleinworthambros.com.

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