lf waverton investment funds · 2020-01-24 · as part of our effort to diversify our sector...

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LF Waverton Investment FundsInterim Unaudited Report and Financial Statements

30 April 2019

LF Waverton Portfolio Fund

LF Waverton Investment Funds | Interim Report 2019

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AUTHORISED CORPORATE DIRECTOR (‘ACD’)

LINK FUND SOLUTIONS LIMITEDHead Office: 6th Floor65 Gresham Street London EC2V 7NQTelephone: 0870 607 2555 Fax: 0870 607 2550Email: [email protected](Authorised and regulated by the Financial Conduct Authority)

DIRECTORS OF THE ACD

C. AddenbrookeN. BoylingB. HammondP. Hugh-SmithK.J. MidlA.J. Stuart

INVESTMENT MANAGER

WAVERTON INVESTMENT MANAGEMENT LIMITED16 Babmaes StreetLondon SW1Y 6AH(Authorised and regulated by the Financial Conduct Authority)

DEPOSITARY

THE BANK OF NEW YORK MELLON (INTERNATIONAL) LIMITEDOne Canada SquareLondon E14 5AL(Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority)

REGISTRAR

LINK FUND ADMINISTRATORS LIMITEDCustomer Service Centre:Arlington Business CentreMillshaw Park LaneLeeds LS11 0PATelephone: 0345 922 0044Fax: 0113 224 6001(Authorised and regulated by the Financial Conduct Authority)

INDEPENDENT AUDITOR

KPMG LLP1 Sovereign SquareSovereign StreetLeeds LS1 4DA(Chartered Accountants)


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CONTENTS

ACD’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Authorised Status . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Important Information . . . . . . . . . . . . . . . . . . . . . . . . . 2

Securities Financing Transactions . . . . . . . . . . . . . . . . . . . 2

Director’s Statement . . . . . . . . . . . . . . . . . . . . . . . . . . 3

LF WAVERTON PORTFOLIO FUNDACD’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Important Information . . . . . . . . . . . . . . . . . . . . . . . . . 4

Investment Objective and Policy . . . . . . . . . . . . . . . . . . . . 4

Investment Manager’s Report . . . . . . . . . . . . . . . . . . . . . 5

Fund Information . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Portfolio Statement . . . . . . . . . . . . . . . . . . . . . . . . . 13

Summary of Material Portfolio Changes . . . . . . . . . . . . . . . 16

INTERIM FINANCIAL STATEMENTS (UNAUDITED) Statement of Total Return . . . . . . . . . . . . . . . . . . . . . . 17

Statement of Change in Net Assets Attributable to Shareholders . . . 17

Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Notes to the Interim Financial Statements . . . . . . . . . . . . . . 19

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . 20


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ACD’S REPORTfor the half year ended 30 April 2019

Authorised StatusLF Waverton Investment Funds (‘the Company’) is an investment company with variable capital incorporated in England and Wales under registered number IC000018 and authorised by the Financial Conduct Authority with effect from 11 December 1998. The Company has an unlimited duration.

The Company and its sub-fund is a UCITS scheme and the base currency of the Company and each sub-fund is pounds sterling.

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

Important InformationWith effect from 1 January 2019, the performance comparator for the LF Waverton Portfolio Fund has been changed from the FTSE UK Private Investor Growth Index TR to a composite index, full details of which can be found in the latest Prospectus.

Effective from 17 May 2019, the LF Waverton Portfolio Fund’s investment objective and policy was changed. The Fund’s amended investment objective and policy is set out on page 4.

Securities Financing TransactionsThe Company has the ability to utilise Securities Financing Transactions (being transactions such as lending or borrowing of securities, repurchase or reverse repurchase transactions, buy-sell back or sell-buy back transactions, or margin lending transactions). No such transactions have been undertaken in the period covered by this report.

LINK FUND SOLUTIONS LIMITEDACD of LF Waverton Investment Funds 27 June 2019


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DIRECTOR’S STATEMENT

This report has been prepared in accordance with the requirements of the Collective Investment Schemes Sourcebook as issued and amended by the Financial Conduct Authority.

N. BOYLING

LINK FUND SOLUTIONS LIMITEDACD of LF Waverton Investment Funds 27 June 2019


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LF WAVERTON PORTFOLIO FUND ACD’S REPORTfor the half year ended 30 April 2019

Important InformationRefer to the ‘Important information’ section on page 2.

Investment Objective and PolicyThe investment objective of the LF Waverton Portfolio Fund (‘the Fund’) is to provide long term (in excess of 5 years) capital growth.

The Fund aims to achieve its objective by investing in a portfolio of global, including UK, equities and equity related securities (including ordinary and preference shares, global depositary receipts and American depositary receipts). The Fund’s equity exposure (both direct and indirect) will be between 60% and 90%, typically 75%.

The Fund may also invest in other collective schemes (open and closed ended), bonds, deposits, cash, near cash, money market instruments, warrants and structured products. The Fund can gain indirect exposure to property and commodities via collective investment schemes.

The Fund may use derivatives and forward transactions for investment purposes and for the purposes of Efficient Portfolio Management.

The performance comparator of the Fund is a composite index made up of the following:

75% MSCI AC World Net Total Return Index GBP7.5% IBOXX £ Gilts Overall Total Return Index7.5% IBOXX £ Corporates Overall Total Return Index10% LIBOR 1 Month (GBP)

LINK FUND SOLUTIONS LIMITEDACD of LF Waverton Portfolio Fund 27 June 2019


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LF WAVERTON PORTFOLIO FUND ACD’S REPORT continued

INVESTMENT MANAGER’S REPORTfor the half year ended 30 April 2019

PerformanceIn the six months to 30th April 2019 the total return on the Fund amounted to +6.9%. This compares with +6.1% from the performance comparator1.

Performance was marginally ahead of the performance comparator and driven mostly by asset allocation, notably the continued overweight equity position. Geographically the biggest detractor was our overweight position to Japan. From a sector perspective our 10% overweight to Industrials was positive. Conversely, our overweight Health Care position detracted from performance. Stock Selection overall detracted from performance – additional information on this can be found below.

Our Top Contributors The top contributor over the period was Ocado, the UK online grocery retailer, which we purchased in late February. We had become more confident in value of their proprietary technology and the long term growth opportunity that it could harness. Fortuitously, following our purchase, deals have been announced with Marks & Spencer and Coles in Australia which have both had a very positive effect on the share price.

Another recent addition to the portfolio was a very strong contributor – the Japanese industrial technology company Keyence. Keyence is the worldwide market leader in certain categories of sensors used in automation. There is a strong structural trend towards automation and Keyence is extremely well placed to benefit from this. They work closely with their customers to develop specific solutions which they are then able to use with other clients. The result is that of all of their products, 30% have been produced in the last year and 90% within the last 3 years. These components make up a relatively small part of customers’ overall spend and therefore they do not tend to be too price sensitive. Keyence also has significant opportunity to grow cash flow overseas. The shares were up nearly 25% over the six months.

Amazon, despite having a weak period in the fourth quarter, was still one of the top contributors over 6 months. Earnings are still growing very strongly, and the company is taking steps to grow its addressable market exponentially into sectors such as healthcare. Amazon is one of our largest equity positions and we still have conviction in the company over the long term.

The fourth best contributor to returns was Diageo, another holding added relatively recently in September 2018. We bought the global beverage company as we became more positive about the strong market share positions in well established brands such as Johnnie Walker, Smirnoff and Guinness, as well as growth in new products, such as the Tequila brand Casamigos. The shares returned over 20% over the last six months and are now looking rather more expensive from a valuation perspective.

1 Performance comparator is a composite made up as follows: 75% MSCI AC World Net Total Return Index GBP, 7.5% IBOXX £ Gilts Overall Total Return Index, 7.5% IBOXX £ Corporates Overall Total Return Index, 10% LIBOR 1 Month (GBP).


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INVESTMENT MANAGER’S REPORT continued

Biggest DetractorsThe biggest detractor over the period was Apple which had a weak 6 months. The company is facing some headwinds as growth in the iPhone continues to slow and growth in their other products is not yet significant enough to outweigh this slow down. We have held the shares since 2015 and over that time have made significant profits. We took the decision in February to realise these profits and invest in other, new ideas.

Another notable weak performer over the quarter was Biogen, the US biopharma company specialising in finding biologic drug treatments for severe neurological conditions. Our original thesis was that the pipeline of Alzheimer’s treatments, notably Aducanumab, provided substantial upside. Unfortunately in March the company unexpectedly announced that Aducanumab had failed causing the shares to fall -30%. Whilst this is extremely disappointing, following the share price drop we believe that the valuation now ascribes no value to any future success at Biogen and if the company were to simply wind down, the cash generation would equate to the company’s market value today. As such we believe that we should continue to hold the shares on valuation grounds but we will review the position as more information becomes available.

One of our recent purchases, Showa Denko, performed badly over the six month period. This Japanese chemicals company produces ultra-high performance graphite electrodes which are essential for electric steel production. We believe that the market is overlooking the fact that a shortage of supply in the sector and an increased demand for this type of steel production should lead to strong pricing power. Fears over trade wars and American tariffs have weighed heavily on the share price but we continue to think that returns will be strong over the longer term.

Schlumberger has been disappointing for some time and detracted from our overall performance. When we purchased the shares in January 2018 we expected capital expenditure in the oil industry to increase back towards the levels seen in 2014 but for a number of reasons this has not come to fruition. We now believe that Schlumberger’s future cash flow growth is limited and think there are more attractive opportunities elsewhere.

Major Trades

PurchasesWe added a new holding in Illumina, which is the world leader in genome testing equipment manufacture. They are exposed to a market which is rapidly growing due to the fact that prices have fallen significantly: the cost of a full genome test has fallen from $100 million in 2001 to $1,000 today. We think the long term growth opportunity is very significant.

As part of our effort to diversify our sector exposure we added a holding in American Tower, which leases space on its cell towers throughout the US to telecommunications companies. We expect them to reap the benefits of increased data demand and the upgrade cycle (for example 4G to 5G). The shares have already performed very well in the short time we have held them.


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We also added a holding in Asahi, Japan’s leading beer company. They have strong core brands, namely Asahi Super Dry, and management are actively targeting overseas expansion by acquiring Western brands including Peroni and Grolsch. Management recently purchased the brewing business from Fuller, Smith & Turner in the UK which we think is an exciting opportunity. We also think that the prospect of both the Olympic Games and the Rugby World Cup in the country present exciting brand building opportunities.

We added a new holding in Melrose, the UK industrial company which recently acquired GKN. The shares have been weak as investors concerns about the global auto market have continued. However, we think that the management track record should not be ignored as their ability to improve profitability has been excellent. Having met with the company, their plans have become clearer and we therefore feel confident in the long term return potential.

Our purchase of Ocado is referred to in more detail above. We also bought into Lockheed Martin, the diversified US defence company, which we have held in the past.

To maintain our Asset Allocation position we added to two of our bond fund holdings.

Sales To fund these new purchases we sold our positions in Apple and Alphabet, both of which we think are facing some headwinds. We have held them both very successfully for over three years but we think now is a time to take profits. We also exited our holding of Schlumberger which has been disappointing. More detail on this sale is detailed above. We also sold the holding in Baidu, the Chinese internet search company, because we have some concerns that the management strategy is changing and that execution risk has increased. We exited a position in British Land as we felt there were more interesting opportunities elsewhere. Finally, we have continued to reduce our exposure to third party funds in favour of ideas generated by our growing internal analyst team; we sold Ocean Dial Gateway to India.

Asset AllocationOur Asset Allocation has not changed materially over what has been a turbulent period. Our analysis suggests that the outlook for the economic cycle and the profit cycle has not materially changed. We do not see a high likelihood of a recession in the near term in the United States and corporate earnings were not overtly negative during the first quarter earnings season, although there were some notable areas of weakness such as short cycle industrials.

The Outlook Over the first few months of 2019 equity markets have reclaimed much of the losses endured in the fourth quarter of 2018 and S&P 500 hit an all-time high. This recent rally is largely the result of the significant shift in expectations for monetary policy. Only late last year the concern was that Central Banks, and in particular the Federal Reserve were tightening monetary policy too much and a recession was becoming a risk. However, now


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the expectation is that the next move for the US Central Bank could indeed be a cut in interest rates during 2019 – a complete about turn. Although policymakers have not validated that expectation, they have announced that they will not only be “patient” with interest rate policy but will also stop reducing the size of the Federal Reserve’s balance sheet.

Whilst there are some early warning indicators of economic stress, such as the inversion of the bond curve the balance of probabilities still suggests a recession is unlikely. The drop in yields meant bond markets around the world produced positive returns in the first quarter. The German 10-year bond yield fell below zero for the first time since 2016.

The equity market rally occurred even though expectations for earnings growth in 2019 have come down quite materially. Globally the consensus forecast has fallen from an expectation of 9.5% growth in corporate earnings at the end of last year to 4% today and the figure is likely to fall further. The fact that the market has rallied in the face of this reflects the fact that valuations remain reasonable at the aggregate level. We suspect that as long as earnings growth is positive, equities should be supported from here.

Political risk remains an issue across the developed world. A trade deal between the US and China has yet to be reached but we believe a deal will be agreed, an assertion which is broadly discounted by the market. In mainland Europe the upcoming elections to the EU Parliament may see a continuation in the rise of populist parties, with or without the UK’s participation.

Financial markets have taken the twists and turns of the Brexit saga in their stride up to now. We suspect sterling could move significantly when we know the nature of the UK’s withdrawal from the EU but it remains very difficult to speculate in which direction that move will be.

Despite the risks, we continue to find good investment ideas in companies fitting four key attributes: sustainable competitive advantage, opportunity to grow future free cash flow, value enhancing management strategy and attractive valuations in relation to growth opportunities and risks.

WAVERTON INVESTMENT MANAGEMENT LIMITEDInvestment Manager15 May 2019




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Risk and Reward Profile

This indicator shows how much a fund has risen and fallen in the past, and therefore how much a fund’s returns have varied. It is a measure of a fund’s volatility. The higher a fund’s past volatility the higher the number on the scale and the greater the risk that investors in that fund may have made losses as well as gains. The lowest number on the scale does not mean that a fund is risk free.

During the half year the indicator changed from 4 to 5. The Fund has been classed as 5 because its volatility has been measured as above average.

This indicator is based on historical data and may not be a reliable indication of the future risk profile of this Fund.

The risk and reward profile shown is not guaranteed to remain the same and may shift over time.

Currency Risk: As the Fund invests in global securities and other funds that invest in global securities, movements in exchange rates may, when not hedged, cause the value of your investment to increase or decrease.

Bond Risk: Bonds are affected by trends in interest rates and inflation. If interest rates go up the value of capital may fall and vice versa. Inflation will also decrease the real value of capital. The value of a bond is also affected by its credit rating.

Counterparty Risk: As the Fund may enter into derivative agreements and structured products there is a risk that other parties may fail to meet their obligations. This may lead to delays in receiving amounts due to the Fund, receiving less than is due or receiving nothing.

Use of derivatives: The Fund may invest in derivatives to generate additional capital or income. A movement in the value of the derivative’s underlying asset may have a much larger negative impact on the value of the Fund (down as well as up) than if the Fund were to hold the underlying investment itself.

For full details of the Fund’s risks, please see the Prospectus which may be obtained upon application and can be found on the ACD’s website, www.linkfundsolutions.co.uk, by following the link ‘Fund Information’.

Lower Risk

Typically Higher Rewards

TypicallyLower Rewards

Higher Risk

4


FUND INFORMATION


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Comparative TablesInformation for 30 April 2019 relates to the 6 month period ending 30 April 2019. The operating charges relate to the expenses incurred on an ex post basis over the 6 month period ending 30 April 2019 expressed as an annual percentage of the average net asset value.

Where the Fund has significant investment in collective investment schemes, the operating charges take account of the ongoing charges incurred in the underlying schemes, calculated as the expense value of such holdings at the period end weighted against the net asset value of the share class at that date.

‘A’ INCOME SHARES

CHANGE IN NET ASSETS PER SHARE30.04.19

pence per share31.10.18



pence per share

Opening net asset value per share 185.61 187.64 171.05 143.68 Return before operating charges* 11.81 1.95 20.10 30.75 Operating charges (1.05) (2.29) (2.17) (1.97)Return after operating charges 10.76 (0.34) 17.93 28.78 Distributions (0.95) (1.69) (1.34) (1.41)Closing net asset value per share 195.42 185.61 187.64 171.05 * after direct transaction costs of: 0.06 0.14 0.24 0.30

PERFORMANCE

Return after charges 5.80% (0.18)% 10.48% 20.03%

OTHER INFORMATION

Closing net asset value (£’000) 209,772 190,794 166,976 121,183 Closing number of shares 107,341,563 102,790,857 88,986,061 70,845,307 Operating charges 1.13% 1.21% 1.22% 1.27%Direct transaction costs 0.03% 0.07% 0.13% 0.20%

PRICES

Highest share price 197.29 200.43 190.08 172.53 Lowest share price 173.84 176.12 162.00 134.89


FUND INFORMATION continued


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Comparative Tables continued

‘B’ INCOME SHARES

CHANGE IN NET ASSETS PER SHARE30.04.19




pence per share

Opening net asset value per share 185.04 187.07 170.52 143.21 Return before operating charges* 11.79 1.94 20.05 30.68 Operating charges (0.82) (1.81) (1.72) (1.58)Return after operating charges 10.97 0.13 18.33 29.10 Distributions (1.18) (2.16) (1.78) (1.79)Closing net asset value per share 194.83 185.04 187.07 170.52 * after direct transaction costs of: 0.06 0.14 0.24 0.30

PERFORMANCE

Return after charges 5.93% 0.07% 10.75% 20.32%

OTHER INFORMATION

Closing net asset value (£’000) 22,589 16,587 11,811 10,081 Closing number of shares 11,594,546 8,964,302 6,313,858 5,911,900 Operating charges 0.88% 0.96% 0.97% 1.02%Direct transaction costs 0.03% 0.07% 0.13% 0.20%

PRICES

Highest share price 196.91 199.99 189.71 172.16 Lowest share price 173.36 175.77 161.53 134.56




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Fund Performance to 30 April 2019 (%)

6 months 1 year 3 years 5 years

LF Waverton Portfolio Fund 6.93 7.71 37.95 48.97Performance comparator1 6.06 8.99 42.56 64.35

1 Source: Bloomberg. The performance comparator is a composite index made up of 75% MSCI AC World Net Total Return Index GBP, 7.5% IBOXX £ Gilts Overall Total Return Index, 7.5% IBOXX £ Corporates Overall Total Return Index and 10% LIBOR 1 month (GBP).

The performance of the Fund is based on the published price per ‘B’ Income share with income reinvested.

The performance of the Fund disclosed in the above table may differ from the ‘Return after charges’ disclosed in the Comparative Table due to the above performance being calculated on the latest published price prior to the period end, rather than the period end return after operating charges.

RISK WARNINGAn investment in an open-ended investment company should be regarded as a medium to long term investment. Investors should be aware that the price of shares and the income from them can fall as well as rise and investors may not receive back the full amount invested. Past performance is not a guide to future performance. Investments denominated in currencies other than the base currency are subject to fluctuation in exchange rates, which can be favourable or unfavourable.




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Holding Portfolio of InvestmentsValue£’000

30.04.19%

DEBT SECURITIES – 2.07% (31.10.18 – 2.16%)$6,500,000 US Treasury 2.75% 15/8/2047 4,810 2.07

BOND FUNDS – 9.33% (31.10.18 – 7.89%)49,085 Stratton Street UCITS Next Generation Global Bond1 4,825 2.07

1,250,000 Waverton Global Strategic Bond1,2 9,529 4.10800,000 Waverton Sterling Bond1,2 7,339 3.16

TOTAL BOND FUNDS 21,693 9.33

UNITED KINGDOM – 15.59% (31.10.18 – 15.21%)125,000 British American Tobacco ADRs 3,758 1.62170,000 Diageo 5,496 2.36

1,300,000 HICL Infrastructure1 2,155 0.932,800,000 Melrose Industries 5,662 2.44

300,000 Ocado 4,088 1.76320,000 Prudential 5,552 2.39200,000 Royal Dutch Shell ‘B’ 4,929 2.12

1,800,000 Syncona1 4,581 1.97TOTAL UNITED KINGDOM 36,221 15.59

CONTINENTAL EUROPE – 13.30% (31.10.18 – 13.83%)160,000 Koninklijke Philips 5,205 2.24

38,500 Linde 5,296 2.2870,000 Novartis 4,385 1.89

140,000 Novo Nordisk ‘B’ 5,257 2.262,250,000 Waverton European Capital Growth1,2 5,228 2.253,000,000 Waverton European Dividend Growth1,2 5,532 2.38

TOTAL CONTINENTAL EUROPE 30,903 13.30


PORTFOLIO STATEMENTas at 30 April 2019


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30.04.19%

JAPAN – 9.57% (31.10.18 – 8.42%)100,000 Asahi 3,320 1.43

70,000 East Japan Railway 5,045 2.17260,000 KDDI 4,540 1.95

12,000 Keyence 5,712 2.46140,000 Showa Denko 3,621 1.56

TOTAL JAPAN 22,238 9.57

ASIA PACIFIC (EXCL JAPAN) – 6.92% (31.10.18 – 9.76%)425,300 CK Hutchison 3,426 1.47

55,000 Jardine Matheson 2,776 1.204,000 Samsung Electronics GDRs 3,021 1.30

135,000 Waverton Asia Pacific1,2 3,727 1.604,000 Waverton Southeast Asian1,2 3,131 1.35

TOTAL ASIA PACIFIC (EXCL JAPAN) 16,081 6.92

NORTH AMERICA – 35.31% (31.10.18 – 36.06%)4,500 Amazon.com 6,650 2.86

35,000 American Tower 5,241 2.2625,000 Becton Dickinson 4,615 1.9930,000 Berkshire Hathaway ‘B’ 4,983 2.1420,000 Biogen 3,515 1.5165,000 EOG Resources 4,785 2.0633,000 Home Depot 5,154 2.2245,000 Honeywell International 5,992 2.5815,000 Illumina 3,589 1.5428,000 Intuit 5,391 2.3260,000 JPMorgan Chase & Co. 5,339 2.3020,000 Lockheed Martin 5,113 2.2055,000 Microsoft 5,509 2.3740,000 Salesforce.com 5,071 2.1840,000 Union Pacific 5,430 2.3445,000 Visa 5,672 2.44

TOTAL NORTH AMERICA 82,049 35.31


PORTFOLIO STATEMENT continued

as at 30 April 2019


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30.04.19%

EMERGING MARKETS – 1.36% (31.10.18 – 1.35%)17,000 RWC Global Emerging Markets1 3,152 1.36

GLOBAL – 2.06% (31.10.18 – 2.16%)50,000 Invesco Physical Gold ETC1 4,785 2.06

STRUCTURED PRODUCTS – 0.49% (31.10.18 – 0.67%)2,000 Goldman Sachs i-Select III series 53 Total Return Strategy 1,134 0.49

Portfolio of investments 223,066 96.00Net other assets 9,295 4.00Net assets 232,361 100.00

The investments are ordinary shares listed on a regulated market unless stated otherwise.

1 Collective investment scheme.2 Related party holding.

Definitions:ADRs – American Depositary Receipts.GDRs – Global Depositary Receipts.


PORTFOLIO STATEMENT continued

as at 30 April 2019


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SUMMARY OF MATERIAL PORTFOLIO CHANGESfor the half year ended 30 April 2019

Total purchases for the half year £’000 46,297

Major purchasesCost

£’000

Melrose Industries 4,992Invesco Physical Gold ETC 4,885American Tower 4,788Lockheed Martin 4,735Waverton Global Strategic Bond 4,668Waverton Real Assets 4,000Illumina 3,472Asahi 3,115Ocado 2,833HICL Infrastructure 2,000

Total sales for the half year £’000 36,800

Major salesProceeds

£’000

British Land 4,819Gold Bullion Securities 4,725Alphabet ‘C’ 4,724HICL Infrastructure 4,699Apple 4,652Waverton Real Assets 3,974Schlumberger 3,461Baidu ADRs 2,823Ocean Dial Gateway to India 2,234Alcon 579

The summary of material portfolio changes represents the 10 largest purchases and sales during the half year.


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£’00030.04.19

£’000 £’00030.04.18

£’000

Income: Net capital gains/(losses) 11,541 (3,974) Revenue 2,410 1,677 Expenses (1,125) (953) Interest payable and

similar charges (2) –Net revenue before taxation 1,283 724 Taxation (167) (118) Net revenue after taxation 1,116 606 Total return before distributions 12,657 (3,368) Distributions (1,126) (612) Change in net assets

attributable to shareholders from investment activities 11,531 (3,980)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERSfor the half year ended 30 April 2019

£’00030.04.19

£’000 £’00030.04.18

£’000

Opening net assets attributable to shareholders 207,381 178,787

Amounts receivable on issue of shares 18,505 17,218

Amounts payable on redemption of shares (5,056) (4,474)

13,449 12,744 Change in net assets

attributable to shareholders from investment activities 11,531 (3,980)

Closing net assets attributable to shareholders 232,361 187,551

The above statement shows the comparative closing net assets at 30 April 2018 whereas the current accounting period commenced 1 November 2018.

LF WAVERTON PORTFOLIO FUND INTERIM FINANCIAL STATEMENTS (UNAUDITED)STATEMENT OF TOTAL RETURNfor the half year ended 30 April 2019


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LF WAVERTON PORTFOLIO FUND INTERIM FINANCIAL STATEMENTS (UNAUDITED) continued

BALANCE SHEETas at 30 April 2019

30.04.19£’000

31.10.18£’000

ASSETS

Fixed assetsInvestments 223,066 202,215

Current assetsDebtors 2,786 1,249 Cash and bank balances 8,150 5,363 Total assets 234,002 208,827

LIABILITIES

CreditorsDistribution payable (1,157) (1,247) Other creditors (484) (199) Total liabilities (1,641) (1,446) Net assets attributable to shareholders 232,361 207,381


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LF WAVERTON PORTFOLIO FUND NOTES TO THE INTERIM FINANCIAL STATEMENTS continued

for the half year ended 30 April 2019

1. Accounting Policies

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 October 2018 and are described in those annual financial statements.

The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments and in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and with the Statement of Recommended Practice for Financial Statements of Authorised Funds issued by the Investment Association in May 2014, as amended.


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GENERAL INFORMATION

Structure of LF Waverton Investment FundsThe Company is structured as an umbrella company, in that different sub-funds may be established from time to time by the ACD with the approval of the Financial Conduct Authority and the agreement of the Depositary. On the introduction of any new sub-fund or class, a revised Prospectus will be prepared setting out the relevant details of each sub-fund or class.

The assets of each sub-fund will be treated as separate from those of every other sub-fund and will be invested in accordance with the investment objective applicable to that sub-fund. The only sub-fund currently available is:

LF Waverton Portfolio Fund

In the future there may be other sub-funds of the Company.

Valuation PointThe valuation point of the Fund is 10.00am (London time) on each business day. Valuations may be made at other times under the terms contained within the Prospectus.

Buying and Selling SharesThe ACD will accept orders to deal in the shares on normal business days between 8.30am and 5.30pm (London time) and transactions will be effected at prices determined by the following valuation. Instructions to buy or sell shares may be either in writing to: PO Box 389, Darlington DL1 9UF or by telephone on 0345 922 0044.

PricesThe prices of all shares are published on every dealing day on the ACD’s website: www.linkfundsolutions.co.uk and may also be obtained by calling 0345 922 0044 during the ACD’s normal business hours.

Other Information The Instrument of Incorporation, Prospectus, Key Investor Information Document and the most recent interim and annual reports may be inspected at the office of the ACD which is also the Head Office. Copies of these may be obtained upon application and, excepting the Instrument of Incorporation, can be found on the ACD’s website, www.linkfundsolutions.co.uk, by following the link ‘Fund Information’.

Shareholders who have any complaints about the operation of the Company should contact the ACD or the Depositary in the first instance. In the event that a shareholder finds the response unsatisfactory they may make their complaint direct to the Financial Ombudsman Service at Exchange Tower, London E14 9SR.

Data Protection ActShareholders’ names will be added to a mailing list which may be used by the ACD, its associates or third parties to inform investors of other products by sending details of such products. Shareholders who do not want to receive such details should write to the ACD requesting their removal from any such mailing list.

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lf waverton investment funds · 2020-01-24 · as part of our effort to diversify our sector...

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