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Lindsell Train Global Funds plc

Interim Report & Condensed Unaudited Financial Statements for the six months ended 30 June 2018

Lindsell Train


2

Table of contents page

Company information 3

Performance history 4

Investment Manager’s report 5

Statement of financial position 7

Statement of comprehensive income 9

Statement of changes in net assets attributable to holders of redeemable participating shares 11

Statement of cash flows 13

Notes to the financial statements 15

Schedule of investments 24

Statement of significant portfolio movements 26


3

Company information Directors of the Company

Alex Hammond-Chambers, Chairman (UK) (Independent) David Dillon (Irish) Gerald Moloney (Irish) (Independent) Keith Wilson (UK) (All Directors are non-executive)

Registered Office

33 Sir John Rogerson’s Quay Dublin 2 D02 XK09 Ireland

Investment Manager and Distributor

Lindsell Train Limited 5th Floor 66 Buckingham Gate London SW1E 6AU

Administrator and Registrar

Link Fund Administrators (Ireland) Limited

2nd Floor, 2 Grand Canal Square Grand Canal Harbour Dublin 2 D02 A342 Ireland

Independent Auditors

Grant Thornton Chartered Accountants and Statutory Audit Firm 24-26 City Quay Dublin 2 D02 NY19 Ireland

Irish Legal Advisor

Dillon Eustace Solicitors 33 Sir John Rogerson’s Quay Dublin 2 D02 XK09 Ireland

Depositary

BNY Mellon Trust Company (Ireland) Limited One Dockland Central Guild Street International Financial Services Centre Dublin 1 D01 E4X0 Ireland

Company Secretary

Tudor Trust Limited 33 Sir John Rogerson’s Quay Dublin 2 D02 XK09 Ireland

Provision of Designated Individuals Bridge Consulting Ferry House 48-52 Mount Street Lower Dublin 2 D02 PT98 Ireland

Company number 285933 (Registered in Ireland)


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Performance History For the six months ended 30 June 2018

Lindsell Train Global Equity Fund Investment Objective and Policy The investment objective of this sub Fund is to achieve capital and income growth over the long term. It is the sub Fund's policy to invest in a concentrated portfolio of global equities, primarily those listed or traded on Recognised Exchanges in developed countries worldwide. Total Return

Historical Performances 30-Jun-2018 31-Dec-2017 YTD June 1 year June 3 years June 5 Years June Net Asset Value Base Currency Base Currency Base Currency Base Currency

Class A Shares (£) £ 3.067 £ 2.726 13.2% 23.2% 82.9% 143.3% Class B Shares (£) £ 3.317 £ 2.932 13.5% 23.8% 85.7% 149.5% Class D Shares (£) -launched 03/03/2014 £ 2.267 £ 2.004 13.6% 24.1% 86.8% 150.8% MSCI World Dev Markets (£) £ 1,582.50 £ 1,554.93 2.9% 9.3% 52.1% 84.5%

Class C Shares ($) -launched 30/06/2014 $ 1.775 $ 1.608 10.4% 25.4% 55.3% na MSCI World Dev Markets ($) $ 2,089.30 $ 2,103.45 0.4% 11.1% 27.7% na

Class E Shares (€) -launched 20/12/2017 € 1.12 € 0.99 13.7% na na na MSCI World Dev Markets (€) € 1,789.47 € 1,751.71 3.3% na na na Source: Morningstar Direct

Lindsell Train Japanese Equity Fund Investment Objective and Policy The investment objective of this sub Fund is to achieve capital and income growth over the long term. It is the sub Fund's policy to invest in a concentrated portfolio of Japanese equities, primarily those listed or traded on Recognised Exchanges in Japan.

Total Return Historical Performances 30-Jun-2018 31-Dec-2017 YTD June 1 year June 3 years June 5 Years June Net Asset Value Base Currency Base Currency Base Currency Base Currency Net Asset Values

Class A Shares (¥) ¥ 509.90 ¥ 461.22 10.6% 24.3% 52.9% 127.8% Class B Shares (¥) ¥ 222.83 ¥ 201.05 10.8% 24.9% 55.2% 133.6% Class B Distributing Shares (¥) ¥ 191.13 ¥ 173.53 10.8% 24.9% 55.2% 133.6% Class B Distributing Hedged Shares £ £ 2.87 £ 2.60 11.0% 24.9% 52.5% 129.5% TOPIX Index (¥) ¥ 1,730.89 ¥ 1,817.56 -3.7% 9.7% 13.2% 69.1%

*Class B Sterling Quoted Dist. Shares £ £ 2.87 £ 2.49 15.2% 23.1% 98.1% 133.9% TOPIX Index (£) £ 11.84 £ 11.93 0.4% 9.5% 48.9% 74.2%

Class C Shares $ - launched 30/06/14 $ 1.87 $ 1.66 12.7% 26.5% 71.7% na TOPIX Index ($) $ 15.63 $ 16.13 -2.0% 11.3% 25.0% na Source: Morningstar Direct

*Class A Sterling Quoted Shares changed name to Class B Sterling Quoted Dist. Shares on 17 August 2015.


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Investment Manager’s report For the six months ended 30 June 2018

Lindsell Train Global Equity Fund (the “Fund”)

Against a background of rising interest rates and rising commodity prices that we feared might have been hostile for the companies in your portfolio, we managed to achieve the best relative performance that we can remember in the Fund’s seven year history. Compared with a rise of 2.9% in the MSCI World index, the Fund’s net asset value (Class B shares) was up 13.5%.

There were a handful of companies (Astellas, Ito en preference, London Stock Exchange, Pearson) whose share prices were all up c.20% for unrelated reasons. Then Dr Pepper Snapple merged with Keurig Green Mountain which helped its share price, up 26% early in the year, while Intuit’s was up strongly (30%) having fared well in the tax season, where its software, ‘Turbo Tax,’ dominates online tax preparation and filing. The company is now looking at ways to offer advice to its customers, which, if successful, as first indications suggest, would significantly broaden its customer base in tax preparation. This, in addition to the continued growth in cloud based business application software for small companies, underpins the steep rise in market capitalisation. Shiseido put in another impressive performance, having contributed so much last year. The share price was up 62% in the half year. Much of the rise occurred after the company announced its strategy out to 2020 and beyond, which aimed for further growth in sales driven by Asian consumption around a more focussed brand portfolio and big improvements in the profitability of the US and European businesses. After three years of rationalisation the company is generating an operating performance akin to the best Western competitors. But perhaps the main feature of this quarter was the contrasting performance of two of our media companies. The share price of World Wrestling Entertainment (‘WWE’) was up 139%, and the biggest contributor to your portfolio’s performance, while that of Nintendo was down 11%, the biggest detractor. Why the difference?

To remind you, c.40% of the Fund is invested in unique media content of all types. We believe distribution platforms - whether they be broadcasters, cable channels, social media or direct to consumer - need quality content to capture the attention of their customers and ensure the growing engagement they seek. Of all the content out there, live sports content is perhaps the most valuable as it draws in loyal, large and engaged audiences of the type that advertisers most value. Of course WWE is not a sport, it’s entertainment - but it’s perhaps the next best thing as it attracts sports like audiences with its episodic content. WWE’s aim is to monetise its content wherever possible - across live events, TV and video, film, internet, games and through merchandising. The popularity of WWE is indisputable whatever you may think of the genre. It attracts US cable audiences second only to the NFL and ahead of other major US sports such as baseball, hockey and basketball. It also attracts the biggest number of ‘sports’ downloads on YouTube. And in only three years its direct to consumer (‘DTC’) network has attracted over 2m subscribers.

Today the company has just struck new rights deals with the US cable industry for the next five years (beginning in late 2019) for its ‘Raw’ and ‘Smackdown’ weekly shows, which are 3.6x higher than the current ones. USA Network/NBC have renewed with ‘Raw’; and ‘Smackdown’ has moved to Fox Broadcast, reaching an extra 20m viewers. At the last rights renewals negotiation in 2013 WWE was disappointed with the deal and claimed at the time that the imminent establishment of their own DTC network negatively affected the price. But it now seems that the extra profile and engagement with the DTC network over the last few years has if anything done the reverse and has helped inflate the value of its intellectual property (‘IP’). Indeed data attainable from the network has helped WWE fashion its content and talent to better match customers’ demands - for instance by including more women wrestling in its line-ups. It means that the company’s policy of curating content for all types of distribution is becoming self-fulfilling and helping to rapidly increase its value.

Another positive feature is that WWE is fast becoming global, with 70% of the engagement with its IP today occurring outside the USA. The next two rights agreements up for negotiation are with the UK and India, WWE’s second and third biggest markets. The higher licence fees in the USA, if confirmed, will bode well for the upcoming renewal rates in these markets in 2020. In this industry, economics follow engagement and if this holds true the contribution from international deals in the future will dwarf even what’s going on in the USA today.

This is a nice endorsement of our investment case for media content companies in general and what was behind WWE’s performance over the quarter.

Turning to Nintendo, the fall in its share price has to be put in the context of the 2.3x rise over the last two years. Consumption of Nintendo content is primarily on its own platforms and the poor sales of the Wii U and its disappointing installed base of just 13.5m consoles (over four years) constrained the ability of the company to monetise its content. The new console, the Switch, has done much better - selling 15m units last year alone. Cashflows have recovered but there must be a lingering concern that if the popularity of the console wanes for whatever reason, fortunes will reverse. Perhaps this is why the shares have fallen. We, on the other hand, think the Switch shows every sign of continuing to succeed and would expect sales of the console to be even higher this year.

As with all our content assets, it is important to assess Nintendo on the quality of its IP. Like WWE, it’s not sport but its entertainment value is high. Video games are a popular and fast growing industry enabled by technological innovation. Within this industry Nintendo’s franchises, built up over 30 years, interacting with multiple generations and appealing to a wide family friendly audience, are some of the best. The company is seeking to monetise its IP across a variety of media, from its core offering of the console (currently the Switch and 3DS) it is extending to mobile, a growing business with much potential, and in time theme parks, movies and merchandising. As with WWE, greater engagement will lead to better monetisation and we think the current Nintendo share price undervalues this potential going forward.


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Investment Manager’s report (continued) For the six months ended 30 June 2018

Lindsell Train Japanese Equity Fund (the “Fund”) The Fund’s net asset value ended the first half of 2018 up 10.6%, a much better result than the fall of 3.7% recorded by the TOPIX index. There were some notable contributors from the share prices of: Shiseido up 62%, Taisho Pharmaceutical up 45% and Milbon up 32%. Then an unconnected collection of other companies – Astellas, Hogy Medical, Ito en preference shares and Obic Business Consultants - all rose by c.20%. Not all was good though. The share price of Takeda Pharmaceutical was down 26% and for Nintendo, the driver of most value in 2017 and one of the Fund’s biggest holdings, the share price was down 11%.If there was ever a period that illustrated how different the portfolio and its constituents can perform from the index, this was it. I am happy to say it turned out to be a positive experience this time but we caution that this will not always be the case.

The performance of Astellas, Hogy Medical and Ito en preference shares have all been helped along by share repurchase programmes. Sure, investors need to believe in each company’s strategy and be comfortable with the ongoing business performance but the endorsement of a share repurchase provided the cream on top.

Shiseido’s performance is more directly attributable to excellent near term results, together with detailed plans for growth in the future that is expected to lead to enhanced shareholder returns. We had believed that this was always possible given the heritage and quality of the cosmetics brands in its portfolio. We have been particularly encouraged how demand from Asia has materialised and is now driving the growth in the company. Add to this the restructuring of core underperforming brands in the USA and Europe and Shiseido will be performing as well as any of its illustrious Western competitors. Milbon is also expanding in Asia, rolling out its BtoB model - sales to hair care products to beauty parlours and hairdressing salons – in the region whilst continuing to take share in Japan. Recent results show growth accelerating. It also announced a business tie-up with Kose, a premium Japanese cosmetics brand, which proved a catalyst for the recent performance.

Perhaps the most surprising performance came from Taisho Pharmaceutical. It dissolved its joint venture with Toyama Chemical, whilst at the same time revealing continued pressure on its sales of prescription drugs. The company simply hasn’t the scale to compete here and with the renewed focus by the regulator on reducing prices on long listed drugs there seems little chance of any let-up in the future. Meanwhile sales of OTC drugs fare better, supported by brands. Could this disposal presage a bigger change in Taisho’s strategy? It’s too early to say but the company has ample financial resources and a coveted market position which at least gives it optionality if there are further strategic developments.

Takeda Pharmaceutical’s share price fell in response to its audacious proposed acquisition of Shire plc. A successful outcome would catapult Takeda into a top ten global pharmaceutical company but at the cost of doubling the share issuance and taking debt as high as 5x pre-tax cash earnings. The combined company bulks up expertise in neuroscience, gastro-intestinal and oncology and rare diseases - but at the expense of increased financial and implementation risk in the short term. The transactions will take a year to consummate and meanwhile cashflows should roll in from Entivio, Ninlaro and Brintellix, its three current best-selling products.

Nintendo’s negative impact to performance was significant but has to be put in the context of the 2.3x rise over the last two years. Consumption of Nintendo content is primarily on its own platforms and the poor sales of the Wii U and its disappointing installed base of just 13.5m consoles constrained the ability of the company to monetise its content for three years from 2012. The new console, the Switch, has done much better - selling 15m units last year alone. Cashflows have recovered but there must be a lingering concern that if the popularity of the console wanes for whatever reason, fortunes will reverse. Perhaps this is why the shares have fallen. We, on the other hand, think the Switch shows every sign of continuing to succeed and would expect sales of the console to be even higher this year.

As with all our content assets, it is important to assess Nintendo on the quality of its intellectual property (‘IP’). In our view its IP represents some of the most valuable entertainment content out there. Video games are a popular and fast growing industry enabled by technological innovation. Within this industry Nintendo’s franchises, built up over 30 years, interacting with multiple generations and appealing to a wide family friendly audience, are some of the best. The company is seeking to monetise its IP across a variety of media, from its core offering of the console (currently the Switch and 3DS) it is extending to mobile, a growing business with much potential, and in time theme parks, movies and merchandising. Greater engagement will lead to better monetisation and we think the current Nintendo share price undervalues this potential going forward. We have been adding to the position on weakness.

We established a new position in Square Enix, a leading video game software provider owning resonant titles such as Final Fantasy, Dragon Quest and Tomb Raider. The advent of mobile gaming has significantly expanded the market. In addition digital downloads have given the company many more opportunities to earn revenue (for instance through micro-payments) and the ability to distribute software directly, cutting out the retailing channel. Both should lead to an expansion of profit margins in the future. Add to this the globalisation of the business and the ability for Square Enix to extend the appeal of its franchises to Asian markets, where its genre of game should particularly appeal. Despite these expanded opportunities and the heritage and quality of its long lasting franchises the shares trade at a significant discount to US companies with equivalent business models.


The accompanying notes form an integral part of these financial statements

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Statement of financial position (unaudited) As at 30 June 2018 Global

Equity Fund Japanese

Equity Fund Total

Company Note GBP JPY GBP Assets Financial assets at fair value through profit or loss 3 -Transferable securities 4,807,417,670 36,676,438,239 5,058,217,918 Cash and cash equivalents 4 83,749,667 1,158,114,832 91,669,070 Dividends receivable 3,893,296 83,872,116 4,466,829 Subscriptions receivable 19,742,214 178,397,739 20,962,131 Total assets 4,914,802,847 38,096,822,926 5,175,315,948 Liabilities Financial liabilities at fair value through profit or loss -Financial derivative instruments 3 - 119,217,605 815,232 Unrealised loss on open spot currency contracts 28,293 - 28,293 Securities purchased payable 7,237,114 55,151,412 7,614,250 Redemptions payable 10,442,306 427,172,948 13,363,393 Investment manager’s fee 5 2,373,548 19,903,400 2,509,651 Other expenses 8 43,842 755,098 49,005 Audit fee 6,695 111,719 7,459 Administration fee 6 168,087 2,902,311 187,934 Depositary fee 7 170,330 2,785,940 189,381 Total liabilities (excluding net assets attributable to holders of redeemable participating shares)

20,470,215

628,000,433

24,764,598

Net assets attributable to holders of redeemable participating shares

4,894,332,632

37,468,822,493

5,150,551,350

Number of redeemable participating shares in issue 10

Class A Shares 175,688,757.8860 - Class A Yen Shares - 737,673.6350 Class B Shares 414,605,990.7640 - Class B Sterling Hedged Distributing Shares - 21,855,716.1060 Class B Sterling Quoted – Distributing Shares - 23,988,330.8240 Class B Yen Shares - 41,863,315.4720 Class B Yen Distributing Shares - 35,085,278.6740 Class C US Dollar Shares 409,000,753.5110 9,417,039.4920 Class D Shares 1,059,639,753.2030 - Class E EUR Shares 26,463,010.1130 - Net asset value per redeemable participating share

Class A Shares £3.0665 - Class A Yen Shares - ¥509.9048 Class B Shares £3.3168 - Class B Sterling Hedged Distributing Shares - £2.8659 Class B Sterling Quoted – Distributing Shares - £2.8700 Class B Yen Shares - ¥222.8301 Class B Yen Distributing Shares - ¥191.1324 Class C US Dollar Shares $1.7745 $1.8684 Class D Shares £2.2666 - Class E EUR Shares €1.1214 - The statement of financial position is continued on page 8.



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Statement of financial position (audited) (continued) As at 31 December 2017 Global


Equity Fund Total

Company Note GBP JPY GBP Assets Financial assets at fair value through profit or loss 3 -Transferable securities 3,584,800,727 27,204,614,259 3,763,323,491 -Financial derivative instruments - 36,095,995 236,870 Cash and cash equivalents 4 108,966,386 939,862,710 115,133,975 Dividends receivable 5,198,999 91,367,921 5,798,576 Subscriptions receivable 22,596,097 217,768,670 24,025,144 Securities sold receivable - 29,653,316 194,592 Other assets 6,236 102,451 6,908 Total assets 3,721,568,445 28,519,465,322 3,908,719,556 Liabilities Unrealised loss on open spot currency contracts 3 - 33 - Bank overdraft 4 131,352 900,666 137,262 Securities purchased payable 11,575,041 320,654,903 13,679,250 Redemptions payable 5,614,544 32,750,592 5,829,461 Investment manager’s fee 5 1,815,124 14,578,933 1,910,794 Other expenses 8 33,535 1,060,677 40,495 Audit fee 15,103 249,381 16,739 Administration fee 6 130,842 2,389,698 146,524 Depositary fee 7 110,351 1,840,429 122,428 Total liabilities (excluding net assets attributable to holders of redeemable participating shares)

19,425,892

374,425,312

21,882,953

Net assets attributable to holders of redeemable participating shares

3,702,142,553 28,145,040,010 3,886,836,603

Number of redeemable participating shares in issue 10 Class A Shares 165,743,768.1300 - Class A Yen Shares - 507,940.2590 Class B Shares 365,092,633.6970 - Class B Sterling Hedged Distributing Shares - 18,430,532.1210 Class B Sterling Quoted – Distributing Shares - 14,141,606.3370 Class B Yen Shares - 37,084,048.9290 Class B Yen Distributing Shares - 35,698,833.3070 Class C US Dollar Shares 425,879,403.6980 8,678,865.9720 Class D Shares 834,990,975.3120 - Class E EUR Shares 147,962.0600 - Net asset value per redeemable participating share Class A Shares £2.7260 - Class A Yen Shares - ¥461.2178 Class B Shares £2.9321 - Class B Sterling Hedged Distributing Shares - £2.5997 Class B Sterling Quoted – Distributing Shares - £2.4921 Class B Yen Shares - ¥201.0523 Class B Yen Distributing Shares - ¥173.5279 Class C US Dollar Shares $1.6077 $1.6575 Class D Shares £2.0036 - Class E EUR Shares €0.9865 -



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Statement of comprehensive income (unaudited) For the six months ended 30 June 2018 Global


Equity Fund Total

Company Note GBP JPY GBP Investment Income Dividend income 38,615,090 304,255,528 40,650,263 Interest income 11,521 3,124 11,542 Other income 28,566 122,860 29,388 Net gain on financial assets and financial liabilities at fair value through profit or loss and foreign exchange 3 545,718,403 2,826,854,233 564,627,301 Total investment income 584,373,580 3,131,235,745 605,318,494 Expenses Investment manager’s fee 5 12,724,506 107,102,919 13,440,920 Other expenses 8 249,594 2,230,765 264,516 Audit fee 7,612 127,242 8,463 Administration fee 6 920,259 16,425,395 1,030,129 Directors’ fees 15 32,431 531,018 35,983 Depositary fee 7 656,112 9,738,363 721,252 Total expenses 14,590,514 136,155,702 15,501,263 Net income 569,783,066 2,995,080,043 589,817,231 Finance costs Interest expense 12,025 1,184,142 19,946 Distributions 13 13,439,264 121,378,830 14,251,170 Total finance costs 13,451,289 122,562,972 14,271,116 Profit on ordinary activities before taxation 556,331,777 2,872,517,071 575,546,115 Taxation Withholding tax on dividends 5,129,354 45,638,330 5,434,630 Increase in net assets attributable to holders of redeemable participating shares from continuing operations

551,202,423 2,826,878,741 570,111,485

Gains and losses arise solely from continuing operations. There were no gains/losses in the financial period other than those disclosed in the statement of comprehensive income. The statement of comprehensive income is continued on page 10.



10

Statement of comprehensive income (unaudited) (continued) For the six months ended 30 June 2017 Global


Equity Fund Total

Company Note GBP JPY GBP Investment Income Dividend income 26,638,203 199,533,890 28,048,928 Interest income 9,184 - 9,184 Other income 619 9,812 688 Net gain on financial assets and financial liabilities at fair value through profit or loss and foreign exchange 3 321,404,374 3,288,226,893 344,652,468 Total investment income 348,052,380 3,487,770,595 372,711,268 Expenses Investment manager’s fee 5 7,647,457 60,586,745 8,075,811 Other expenses 8 196,402 1,868,564 209,613 Audit fee 7,804 119,623 8,650 Administration fee 6 560,816 10,748,148 636,806 Directors’ fees 15 32,281 513,996 35,915 Depositary fee 7 341,541 5,492,749 380,375 Total expenses 8,786,301 79,329,825 9,347,170 Net income 339,266,079 3,408,440,770 363,364,098 Finance costs Interest expense 7,323 723,588 12,439 Distributions 13 9,494,925 67,379,988 9,971,308 Total finance costs 9,502,248 68,103,576 9,983,747 Profit on ordinary activities before taxation 329,763,831 3,340,337,194 353,380,351 Taxation Withholding tax on dividends 3,038,947 29,930,084 3,250,556 Increase in net assets attributable to holders of redeemable participating shares from continuing operations

326,724,884 3,310,407,110 350,129,795

Gains and losses arise solely from continuing operations. There were no gains/losses in the financial period other than those disclosed in the statement of comprehensive income.



11

Statement of changes in net assets attributable to holders of redeemable participating shares (unaudited) For the six months ended 30 June 2018

Global


Equity Fund Total

Company GBP JPY GBP Net assets attributable to holders of redeemable participating shares at the start of the financial period

3,702,142,553 28,145,040,010 3,886,836,603

Increase in net assets attributable to holders of redeemable participating shares from continuing operations

551,202,423 2,826,878,741 570,111,485

Issue of redeemable participating shares 1,217,529,609 11,601,699,380 1,295,133,663 Redemption of redeemable participating shares (576,541,953) (5,104,795,638) (610,688,057) Notional foreign exchange adjustment - - 9,157,656 Net assets attributable to holders of redeemable participating shares at the end of the financial period

4,894,332,632 37,468,822,493 5,150,551,350

The statement of changes in net assets attributable to holders of redeemable participating shares is continued on page 12.



12

Statement of changes in net assets attributable to holders of redeemable participating shares (unaudited) (continued) For the six months ended 30 June 2017

Global


Equity Fund Total

Company GBP JPY GBP Net assets attributable to holders of redeemable participating shares at the start of the financial period

2,069,111,961 15,430,599,997 2,176,369,443

Increase in net assets attributable to holders of redeemable participating shares from continuing operations

326,724,884 3,310,407,110 350,129,795

Issue of redeemable participating shares 550,323,705 7,290,289,439 601,866,780 Redemption of redeemable participating shares (209,488,052) (4,032,229,521) (237,996,318) Notional foreign exchange adjustment - - (2,967,073) Net assets attributable to holders of redeemable participating shares at the end of the financial period

2,736,672,498 21,999,067,025 2,887,402,627



13

Statement of cash flows For the six months ended 30 June 2018 Global


Equity Fund Total

Company GBP JPY GBP Cash flow from operating activities Increase in net assets attributable to holders of redeemable participating shares from operations 551,202,423 2,826,878,741 570,111,485 Adjustment for: Distributions to holders of redeemable shares 13,439,264 121,378,830 14,251,170 Interest income (11,521) (3,124) (11,542) Dividend income (38,615,090) (304,255,528) (40,650,263) Other income (28,566) (122,860) (29,388) Withholding taxes 5,129,354 45,638,330 5,434,630 Interest expense 12,025 1,184,142 19,946 Net operating cash flow before change in operating assets and liabilities

531,127,889

2,690,698,531

549,126,038

Net increase in financial assets at fair value through profit or loss (1,222,616,943) (9,435,727,985) (1,285,732,761) Net increase in financial liabilities at fair value through profit or loss - 119,217,605 797,450 Net decrease in other receivables 6,236 29,755,767 205,272 Net decrease in other payables (3,652,087) (259,164,174) (5,385,643) Cash used in operations (695,134,905) (6,855,220,256) (740,989,644) Interest received 11,521 3,124 11,542 Dividend received 34,791,439 266,113,003 36,571,475 Other income received 28,566 122,860 29,388 Interest paid (12,025) (1,184,142) (19,946) Net cash used in operating activities (660,315,404) (6,590,165,411) (704,397,185) Cash flows from financing activities Distributions paid to holders of redeemable shares (13,439,264) (121,378,830) (14,251,170) Issue of redeemable participating shares 1,220,383,492 11,641,070,311 1,298,250,899 Redemption of participating shares (571,714,191) (4,710,373,282) (603,495,006) Net cash from financing activities 635,230,037 6,809,318,199 680,504,723 Net (decrease)/increase in cash and cash equivalents (25,085,367) 219,152,788 (23,892,462) Cash and cash equivalents at the start of the financial period 108,835,034 938,962,044 114,996,713 Notional foreign exchange adjustment - - 285,719 Cash and cash equivalents at the end of the financial period 83,749,667 1,158,114,832 91,389,970 Breakdown of cash and cash equivalents Cash and cash equivalents 83,749,667 1,158,114,832 91,389,970 The statement of cash flows is continued on page 14.



14

Statement of cash flows (continued) For the six months ended 30 June 2017 Global


Equity Fund Total

Company GBP JPY GBP Cash flow from operating activities Increase in net assets attributable to holders of redeemable participating shares from operations 326,724,884 3,310,407,110 350,129,795 Adjustment for: Distributions to holders of redeemable shares 9,494,925 67,379,988 9,971,308 Interest income (9,184) - (9,184) Dividend income (26,638,203) (199,533,890) (28,048,928) Other income (619) (9,812) (688) Withholding taxes 3,038,947 29,930,084 3,250,556 Interest expense 7,323 723,588 12,439 Net operating cash flow before change in operating assets and liabilities 312,618,073 3,208,897,068 335,305,298 Net increase in financial assets at fair value through profit or loss (624,653,388) (6,118,447,953) (667,911,427) Net decrease in financial liabilities at fair value through profit or loss - (2,024,344) (14,312) Net increase in other receivables (2,746,024) (130,552,995) (3,669,047) Net increase in other payables 12,892,562 64,388,157 13,347,793 Cash used in operations (301,888,777) (2,977,740,067) (322,941,695) Interest received 9,184 - 9,184 Dividend received 24,327,385 173,363,654 25,553,083 Other income received 619 9,812 688 Interest paid (7,323) (723,588) (12,439) Net cash used in operating activities (277,558,912) (2,805,090,189) (297,391,179) Cash flows from financing activities Distributions paid to holders of redeemable shares (9,494,925) (67,379,988) (9,971,308) Issue of redeemable participating shares 543,079,607 7,250,403,467 594,340,685 Redemption of participating shares (216,111,137) (3,469,210,790) (240,638,804) Net cash from financing activities 317,473,545 3,713,812,689 343,730,573 Net increase in cash and cash equivalents 39,914,633 908,722,500 46,339,394 Cash and cash equivalents at the start of the financial period 48,111,791 (14,165,141) 48,013,330 Notional foreign exchange adjustment - - (197,097) Cash and cash equivalents at the end of the financial period 88,026,424 894,557,359 94,155,627 Breakdown of cash and cash equivalents Cash and cash equivalents 88,026,424 894,557,359 94,155,627 Bank overdraft - - -


15

Notes to the financial statements For the six months ended 30 June 2018

1. General information

Lindsell Train Global Funds plc (the “Company”) was incorporated as Close Finsbury Global Investment Funds plc on 7 May 1998 under the laws of Ireland as an open-ended umbrella type investment company with variable capital and limited liability, with segregated liability between sub-funds. The Company is authorised in Ireland as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) pursuant to the European Communities UCITS Regulations 2011 (as amended) (the “UCITS Regulations”).

The Company changed its name from Close Finsbury Global Investment Funds plc to Close Investments Global Funds plc on 25 May 2007 and subsequently changed on 2 November 2009 from Close Investments Global Funds plc to Lindsell Train Global Funds plc.

There are two sub-funds in operation as at the reporting date, Lindsell Train Japanese Equity Fund (“Japanese Equity Fund”) which commenced trading on 25 September 1998 and Lindsell Train Global Equity Fund (“Global Equity Fund”) which commenced trading on 16 March 2011.

2. Significant accounting policies

(a) Basis of preparation

The interim report and condensed unaudited financial statements of the Company for the six months ended 30 June 2018 have been prepared in accordance with IAS 34 “Interim financial reporting”, Irish statute comprising the Companies Act 2014, the UCITS Regulations and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the “Central Bank Regulations”).

The interim report and condensed unaudited financial statements do not contain all of the information and disclosures required in the full annual financial statements and should be read in conjunction with the audited financial statements for the year ended 31 December 2017, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”), the Companies Act 2014, the UCITS Regulations and the Central Bank Regulations.

(b) Changes to accounting policies

In the current financial period the Company has adopted IFRS 9 Financial Instruments. Comparative figures for the year ended 31 December 2017 have not been restated. Therefore, financial instruments in the comparative financial period are still accounted for in accordance with IAS 39 Financial Instruments: Recognition and Measurement. The Company has assessed the classification of financial instruments as at the date of initial application and has applied such classification retrospectively. Based on that assessment all financial assets previously held at fair value continue to be measured at fair value.

3. Financial assets and financial liabilities at fair value through profit or loss and foreign exchange

(i) Net gains and losses of financial assets and liabilities at fair value through profit or loss and foreign exchange

For the six months ended 30 June 2018

Global


Equity Fund Total Company GBP JPY GBP

Net realised gain on financial assets and liabilities at fair value through profit or loss and foreign exchange

50,490,858

225,679,455

52,000,433

Change in unrealised gain/(loss) on financial assets and liabilities at fair value through profit or loss and foreign exchange

495,227,545

2,601,174,778

512,626,868

Net gain on financial assets and liabilities at fair value through profit or loss and foreign exchange

545,718,403

2,826,854,233

564,627,301

For the six months ended 30 June 2017

Global


Equity Fund Total Company GBP JPY GBP

Net realised gain/(loss) on financial assets and liabilities at fair value through profit or loss and foreign exchange 13,314,632 302,870,296 15,455,955 Change in unrealised gain/(loss) on financial assets and liabilities at fair value through profit or loss and foreign exchange 308,089,742 2,985,356,597 329,196,513 Net gain on financial assets and liabilities at fair value through profit or loss and foreign exchange 321,404,374 3,288,226,893 344,652,468


16

Notes to the financial statements (continued) For the six months ended 30 June 2018

3. Financial assets and financial liabilities at fair value through profit or loss (continued)

(ii) Fair value of financial instruments (continued)

IFRS 13 – Fair Value Measurement, establishes a fair value hierarchy for inputs used in measuring fair value that classifies investments according to how observable the inputs are. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions, made in good faith, about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1 – Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and

Level 3 – Inputs that are not observable.

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Observable data is considered to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorisation of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the perceived risk of that instrument by Lindsell Train Limited (the “Investment Manager” and the “Distributor”).

There were no transfers between any levels during the financial period (2017: nil). As at 30 June 2018 Level 1 Level 2 Level 3 Total Global Equity Fund GBP GBP GBP GBP Held for trading - Equity securities 4,807,417,670 - - 4,807,417,670 Financial assets at fair value through profit or loss 4,807,417,670 - - 4,807,417,670 Japanese Equity Fund JPY JPY JPY JPY Held for trading - Equity securities 36,676,438,239 - - 36,676,438,239 Financial assets at fair value through profit or loss 36,676,438,239 - - 36,676,438,239 Held for trading Derivatives - Forward currency contracts - 119,217,605 - 119,217,605 Financial liabilities at fair value through profit or loss - 119,217,605 - 119,217,605 As at 31 December 2017 Level 1 Level 2 Level 3 Total Global Equity Fund GBP GBP GBP GBP Held for trading - Equity securities 3,584,800,727 - - 3,584,800,727 Financial assets at fair value through profit or loss 3,584,800,727 - - 3,584,800,727 Japanese Equity Fund JPY JPY JPY JPY Held for trading - Equity securities 27,204,614,259 - - 27,204,614,259 Derivatives - Forward currency contracts - 36,095,995 - 36,095,995 Financial assets at fair value through profit or loss 27,204,614,259 36,095,995 - 27,240,710,254 All other assets and liabilities held by the sub-funds at the reporting dates 30 June 2018 and 31 December 2017 are carried at amortised cost; their carrying values are a reasonable approximation of fair value. Cash and cash equivalents have been classified at level 1, due to the liquid nature of the asset. All other assets and liabilities held have been classified at level 2.

(iii) Financial derivative instruments

The derivative instruments that the Company holds or issues are forward currency contracts. The Company records its derivative activities on a mark-to-market basis.

A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, at a price set at the time the contract is made. Forward currency contracts will be valued by reference to the forward price at which a new forward contract of the same size and maturity could be undertaken at the valuation date. The unrealised gain or loss on open forward currency contracts is calculated as the difference between the contract rate and this forward price, and this difference is recognised in the statement of comprehensive income.


17


4. Cash and cash equivalents

The following cash balances and overdrafts were held at the reporting date: As at 30 June 2018

Credit rating (S&P) Currency

Global Equity Fund

GBP equivalent balance

Japanese Equity Fund

JPY equivalent balance

Total Company

GBP The Bank of New York Mellon SA/NV AA- EUR 1,173,199 52,810 1,173,560 The Bank of New York Mellon SA/NV AA- GBP 59,040,868 187,657,818 60,324,107 The Bank of New York Mellon SA/NV AA- JPY 2,627,424 718,730,563 7,542,236 The Bank of New York Mellon SA/NV AA- USD 8,628,658 114,352,447 9,410,621 Bank of New York Mellon – London Branch AA- EUR - - - Bank of New York Mellon – London Branch AA- GBP 9,543,831 137,321,194 10,482,859 Bank of New York Mellon – London Branch AA- USD 2,735,687 - 2,735,687 Total 83,749,667 1,158,114,832 91,669,070

As at 31 December 2017

Credit rating (S&P) Currency

Global Equity Fund

GBP equivalent balance


JPY equivalent balance

Total Company

GBP The Bank of New York Mellon SA/NV AA- EUR (131,352) 190,206 (130,104) The Bank of New York Mellon SA/NV AA- GBP 89,453,971 232,934,857 90,982,542 The Bank of New York Mellon SA/NV AA- JPY 286,054 610,428,250 4,291,821 The Bank of New York Mellon SA/NV AA- USD 12,013,794 3,335,232 12,035,681 Bank of New York Mellon – London Branch AA- EUR 87,841 8,767,762 145,377 Bank of New York Mellon – London Branch AA- GBP 7,067,886 84,206,403 7,620,466 Bank of New York Mellon – London Branch AA- USD 56,840 (900,666) 50,930 Total 108,835,034 938,962,044 114,996,713 5. Investment manager’s fee The Investment Manager is entitled to an annual fee in respect of each sub-fund, at the rate set out in the below table of the NAV for the relevant class, calculated and accrued as at each dealing day (plus VAT, if any) and payable monthly in arrears. Such fee may be increased up to a maximum level of 2% per annum in respect of any sub-fund upon giving three months’ notice to the shareholders of the relevant sub-fund.

Sub-fund Global Equity Fund Japanese Equity Fund Class A Shares 1.15% 1.15% Class B Shares 0.65% 0.65% Class C US Dollar Shares 0.65% 0.65% Class D Shares 0.45% - Class E EUR 0.65% - Class B Yen Distributing Shares - 0.65% Class B Sterling Hedged Distributing Shares - 0.65% Class B Sterling Quoted – Distributing Shares - 0.65% Total investment manager’s fees accrued at the reporting date and charged for the financial period are disclosed in the statement of financial position and the statement of comprehensive income respectively.

6. Administration fee

Each sub-fund pays Link Fund Administrators (Ireland) Limited (the “Administrator”) an annual fee calculated and accrued as at each dealing day and paid monthly in arrears at the following rates (plus VAT, if any) and subject to a monthly minimum fee of €5,500 per sub-fund (plus VAT, if any):

The administration fee will be paid at the following rates: For assets up to €100m 0.12% Between €100m and €200m 0.10% Between €200m and €500m 0.06% Greater than €500m 0.04%

Total administration fees accrued at the reporting date and charged for the financial period are disclosed in the statement of financial position and the statement of comprehensive income respectively.

7. Depositary fee

BNY Mellon Trust Company (Ireland) Limited (the “Depositary”) receives from the Company a trustee fee calculated and accrued as at each dealing day at a rate not exceeding 0.03% per annum of the NAV of the Company paid monthly in arrears (plus VAT, if any). The minimum annual trustee fee is €30,000 for the Company (plus VAT, if any).The Depositary also receives from the Company fees in relation to the custody of assets, which ranges from 0.01% up to a maximum of 0.70% per annum of the NAV per sub-fund payable monthly in arrears (plus VAT, if any) plus transaction fees, which are at normal commercial rates.

Total depositary fees accrued at the reporting date and charged for the financial period are disclosed in the statement of financial position and the statement of comprehensive income respectively.


18

Notes to the financial statements (continued) For the six months ended 30 June 2018 8. Other expenses The below table outlines details of other expenses payable as at the reporting date: As at 30 June 2018

Global Equity Fund


Total Company

GBP JPY GBP Other fees charged by the Administrator 4,913 104,873 5,630 Directors insurance 812 15,102 915 Solvency fee 141 - 141 Regulatory fee 1,745 27,871 1,936 MLRO fee 912 17,320 1,030 Legal fees 6,914 115,317 7,703 Professional fees 14,830 249,510 16,536 Company secretary fee 12,917 213,953 14,380 Directors expense 658 11,152 734 43,842 755,098 49,005 As at 31 December 2017

Global Equity Fund


Total Company

GBP JPY GBP Other fees charged by the Administrator 5,695 603,459 9,655 MLRO fee 921 17,331 1,035 Legal fees 6,075 99,773 6,730 Professional fees 13,826 224,518 15,299 Company secretary fee 6,365 104,339 7,050 Directors expense 653 11,257 726 33,535 1,060,677 40,495

The below fees and expenses were charged through the statement of comprehensive income during the financial period: For the six months ended 30 June 2018

Global Equity Fund


Total Company

GBP JPY GBP Other fees charged by the Administrator 166,697 878,281 172,573 Solvency fee 511 55,717 884 MLRO fee 2,188 36,562 2,433 Legal fees 11,228 188,762 12,489 Professional fees 16,047 258,748 17,778 Company secretary fee 6,552 109,614 7,285 Regulatory fee 3,239 52,556 3,591 Directors insurance 5,555 92,868 6,176 Directors expenses 835 13,933 928 Bank charges 36,742 543,724 40,379

249,594 2,230,765 264,516 For the six months ended 30 June 2017

Global Equity Fund


Total Company

GBP JPY GBP Other fees charged by the Administrator 119,392 765,728 124,805 MLRO fee 2,168 34,559 2,412 Legal fees 15,445 236,207 17,115 Professional fees 16,674 229,798 18,299 Company secretary fees 7,632 110,859 8,416 Regulatory fees 1,101 16,835 1,220 Directors expenses 1,183 15,680 1,294 Directors’ D&O Insurance Premium 5,552 62,083 5,991 Bank charges 27,255 396,815 30,061 196,402 1,868,564 209,613 9. Exchange rates The following exchange rates were used at the reporting date: 30 June 2018 31 December 2017 Exchange rate to GBP Exchange rate to GBP Euro EUR 1.130787 1.126540 Japanese Yen JPY 146.237647 152.387368 U.S. Dollar USD 1.320251 1.352751


19


9. Exchange rates (continued) 30 June 2018 31 December 2017 Exchange rate to JPY Exchange rate to JPY British Pound GBP 0.006838 0.006562 Euro EUR 0.007733 0.007393 U.S. Dollar USD 110.765000 112.649998

The Japanese Equity Fund’s statement of comprehensive income, statement of changes in net assets attributable to holders of redeemable participating shares and the statement of cash flows is translated to GBP using the average exchange rate of 0.006689 (2017: 0.007070).

10. Share capital

Authorised The Company has an authorised share capital of 500,000,000 redeemable participating shares of no par value.

Management shares The Company has an authorised share capital of 37,500 management shares of EUR 1 each. These shares do not form part of the NAV of the Company.

Issued share capital Proceeds from the issue of redeemable participating shares and shares issued during the financial period include dividends reinvested. Shareholders may redeem some or all of their shares on any dealing day at the NAV per share in accordance with the procedures set out in the relevant supplement. There is no minimum redemption amount for any of the share classes of the Company.

The following table details the share transactions during the financial period/year ended:

Global


Equity Fund Global


Equity Fund 30 June 2018 30 June 2018 31 December 2017 31 December 2017 Class A Shares Opening balance 165,743,768.130 507,940.259 156,104,637.909 429,565.597 Shares issued 23,110,485.445 251,285.245 35,955,954.095 266,567.180 Shares redeemed (13,165,495.689) (21,551.869) (26,316,823.874) (188,192.518) Closing balance 175,688,757.886 737,673.635 165,743,768.130 507,940.259 Class B Shares Opening balance 365,092,633.697 37,084,048.929 268,618,800.774 39,889,979.423 Shares issued 115,804,318.137 9,459,822.977 185,292,671.536 16,416,565.250 Shares redeemed (66,290,961.070) (4,680,556.434) (88,818,838.613) (19,222,495.744) Closing balance 414,605,990.764 41,863,315.472 365,092,633.697 37,084,048.929 Class C US Dollar Shares Opening balance 425,879,403.698 8,678,865.972 340,223,337.517 6,289,633.119 Shares issued 82,065,772.607 1,029,938.520 121,222,408.627 2,565,868.352 Shares redeemed (98,944,422.794) (291,765.000) (35,566,342.446) (176,635.499) Closing balance 409,000,753.511 9,417,039.492 425,879,403.698 8,678,865.972 Class D Shares Opening balance 834,990,975.312 - 480,518,018.662 - Shares issued 324,236,881.015 - 456,640,532.210 - Shares redeemed (99,588,103.124) - (102,167,575.560) - Closing balance 1,059,639,753.203 - 834,990,975.312 - Class E EUR Shares Opening balance 147,962.060 - - - Shares issued 27,911,562.030 - 147,962.060 - Shares redeemed (1,596,513.977) - - - Closing balance 26,463,010.113 - 147,962.060 - Class B Distributing Shares Opening balance - 35,698,833.307 - 22,026,349.098 Shares issued - 4,829,741.215 - 15,719,423.168 Shares redeemed - (5,443,295.848) - (2,046,938.959) Closing balance - 35,085,278.674 - 35,698,833.307 Class B Sterling Hedged Distributing Shares Opening balance - 18,430,532.121 - 11,474,302.650 Shares issued - 6,658,778.757 - 12,360,049.311 Shares redeemed - (3,233,594.772) - (5,403,819.840) Closing balance - 21,855,716.106 - 18,430,532.121


20

Notes to the financial statements (continued) For the six months ended 30 June 2018 10. Share capital (continued)

Issued share capital (continued) The following table details the share transactions during the financial period/year ended:

Global


Equity Fund Global


Equity Fund 30 June 2018 30 June 2018 31 December 2017 31 December 2017 Class B Sterling Quoted – Distributing Shares Opening balance - 14,141,606.337 - 7,884,427.275 Shares issued - 14,098,713.333 - 13,024,873.970 Shares redeemed - (4,251,988.846) - (6,767,694.908) Closing balance - 23,988,330.824 - 14,141,606.337

11. Reconciliation of published net asset value

The published NAV per redeemable participating share at which the shareholders may subscribe to or redeem from each sub-fund may differ from the NAV per the financial statements. The difference may be due to the treatment of formation expenses, subscriptions receivable and redemptions payable at the reporting date. For the purpose of determining the NAV in accordance with the terms of the prospectus, establishment expenses are being amortised over 60 months. However, for the purpose of these financial statements, establishment expenses have been expensed as incurred as required under IFRS.

The table below shows a reconciliation of the published NAV to the financial statement NAV:

As at 30 June 2018

Global


Equity Fund GBP JPY Net asset value per financial statements 4,894,332,632 37,468,822,493 Subscriptions receivable1 (6,009,880) (84,508,308) Redemptions payable1 1,745,147 17,526,486 Published net asset value 4,890,067,899 37,401,840,671 1Subscriptions receivable and redemptions payable with trade date of 29 June 2018 for Global Equity Fund and Japanese Equity Fund.


Global


Equity Fund GBP JPY Net asset value per financial statements 3,702,142,553 28,145,040,010 Subscriptions receivable1 (3,971,593) (31,925,166) Redemptions payable1 634,113 5,546,864 Published net asset value 3,698,805,073 28,118,661,708 1Subscriptions receivable and redemptions payable with trade date of 29 December 2017 for Global Equity Fund and Japanese Equity Fund. 12. Soft commission arrangements

There were no soft commission arrangements in place during the financial period (2017: The investment Manager entered into soft commission agreements with Merrill Lynch).

13. Distributions

All share classes of the Company have obtained “Reporting Fund Status” under the United Kingdom Offshore Funds (Tax) Regulations 2009 for the purpose of United Kingdom taxation for the financial period. Class C USD Shares and Class E Euro Shares of Global Equity Fund and Class A, Class B and Class C US Dollar Shares of Japanese Equity Fund are accumulating share classes and as such do not declare a dividend.

The Directors declared the following dividends during the six months ended 30 June 2018:

Global Equity Fund

Class1 Currency Distribution

per Share Ex-Date

Final distribution

paid

Income received on

subscriptions

Income deducted on redemptions

Net distribution

charge Class A Shares GBP £0.0174 2-Jan-18 £2,883,942 (£180,231) £128,423 £2,832,134 Class B Shares GBP £0.0097 2-Jan-18 £3,541,399 (£469,508) £211,714 £3,283,605 Class D Shares GBP £0.0084 2-Jan-18 £7,013,923 (£1,214,918) £251,708 £6,050,714 £13,439,264


21


13. Distributions (continued)




per Share Ex-Date

Final distribution

paid

Income received on

subscriptions


Net distribution

charge Class B Distributing Shares JPY ¥1.0906 4-Jan-18 ¥38,933,148 (¥571,439) ¥62,110 ¥38,423,819 Class B Sterling Hedged Distributing Shares GBP £0.0168 4-Jan-18 £309,633 (£32,288) £13,408 £290,753 Class B Sterling Quoted Distributing Shares GBP £0.0163 4-Jan-18 £230,508 (£28,876) £14,468 £216,100 1Share class is subject to equalisation


Global Equity Fund


per Share Ex-Date

Final Distribution

paid Income received on subscriptions


Net distribution

charge Class A Shares GBP £0.0168 3-Jan-17 £2,622,558 (£157,681) £112,227 £2,577,104 Class B Shares GBP £0.0102 3-Jan-17 £2,739,912 (£399,447) £313,839 £2,654,304 Class D Shares GBP £0.0086 3-Jan-17 £4,132,455 (£897,420) £399,065 £3,634,100 £9,494,925 Japanese Equity Fund


per Share Ex-Date

Final distribution

paid

Income received on

subscriptions


Net distribution

charge Class B Shares JPY ¥1.0197 4-Jan-17 ¥22,460,268 (¥949,461) ¥818,656 ¥22,329,463 Class B Sterling Hedged Distributing Shares GBP £0.0157 4-Jan-17 £180,147 (£31,629) £31,059 £179,577 Class B Sterling Quoted Shares GBP £0.0166 4-Jan-17 £130,881 (£29,886) £4,026 £105,021 1Share class is subject to equalisation

On the purchase of shares in a sub-fund, there may be included in the subscription price a sum per share which the Directors deem to be the amount representing income of the sub-fund accrued but undistributed up to the time of the issue thereof. This sum is known as the “equalisation amount”. The purpose of equalisation is to ensure that all shareholders in the sub-fund receive the same distribution per share while ensuring that an investor purchasing shares in a sub-fund during a distribution period is not entitled to share in the income of the sub-fund arising before their acquisition of those shares.

14. Transactions involving connected persons

The Central Bank (Supervision and Enforcement Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations, 2015 (the “Central Bank Regulations”) 10.2 - ‘Transactions involving Connected Persons’ states in paragraph 40 that any transaction carried out with a UCITS by the management company or depositary to a UCITS; and the delegates or sub-delegates of such a management company or depositary (excluding any non-group company sub-custodians appointed by a depositary); and any associated or group company of such a management company, depositary, delegate or sub-delegate (“connected persons”) must be carried out as if negotiated at arm’s length and in the best interests of the unitholders.

The Board of Directors is satisfied that there are arrangements (evidenced by written procedures) in place, to ensure that the obligations set out in paragraph 40 of the Central Bank Regulations 10.2 are applied to all transactions with connected persons; and the Board of Directors is satisfied that transactions with connected persons entered into during the financial period complied with the obligations set out in this paragraph.

15. Related party disclosures

In accordance with IAS 24 ‘Related Party Disclosures’ the related parties of the Company and the required disclosures relating to material transactions with parties are outlined below. All transactions between related parties are conducted at arm’s length

Investment Manager The Investment Manager is considered to be a related party as it has significant influence over the Company. Keith Wilson, a Director of the Company is also employed by the Investment Manager. Michael Lindsell and Nick Train are each directors of the Investment Manager or companies affiliated to the Investment Manager and are thus considered related parties. Refer to note 5 for details of fees charged by the Investment Manager.


22


15. Related party disclosures (continued)

Consultant Bridge Consulting is considered to be a related party by virtue of its employment of David Dillon as a Director. David Dillon is also a Director of the Company. Bridge Consulting provides professional services and an MLRO service to the Company.

For the six months ended 30 June 2018 Bridge Consulting charged EUR 10,250 (excluding VAT) for the provision of Designated Individuals (2017: EUR 20,500). In addition they also charged EUR 2,250 (excluding VAT) for the MLRO services (2017: 4,500).

Directors The Directors are also considered related parties of the Company.

Aggregate directors’ fees charged during the six months ended 30 June 2018 amount to GBP 35,983 (year ended 31 December 2017: GBP 71,990).

Share transactions The below table provides details of shares held by related parties: As at 30 June 2018 Related Party Related Party Type Sub-fund Class Shares Nick Train* Investment Manager Global Equity Fund Class B 286,010.04 Michael Lindsell* Investment Manager Global Equity Fund Class B 379,485.66 Nick Train Investment Manager Japanese Equity Fund Class B Yen 35,151.49 Michael Lindsell* Investment Manager Japanese Equity Fund Class B Yen 2,129,406.84 Gerald Moloney Director Global Equity Fund Class E 197,962.06 David Dillon Director Global Equity Fund Class B 92,350.88 Keith Wilson* Director Global Equity Fund Class D 16,140.568 Alex Hammond-Chambers* Director Japanese Equity Fund Class A 5,471.67

Alex Hammond-Chambers* Director Japanese Equity Fund Class B Sterling Hedged – Distributing 18,891.03

James Bullock Portfolio manager Global Equity Fund Class D 33,266.55


Related Party Related Party Type Sub-fund Class Shares Nick Train* Investment Manager Global Equity Fund Class B 286,010.04 Michael Lindsell* Investment Manager Global Equity Fund Class B 379,485.66 Nick Train Investment Manager Japanese Equity Fund Class B Yen 35,151.49 Michael Lindsell* Investment Manager Japanese Equity Fund Class B Yen 2,129,406.84 Gerald Moloney Director Global Equity Fund Class E 147,962.06 David Dillon Director Global Equity Fund Class B 92,350.88 Keith Wilson* Director Global Equity Fund Class D 16,135.54 Alex Hammond-Chambers* Director Japanese Equity Fund Class A 5,471.67

Alex Hammond-Chambers* Director Japanese Equity Fund Class B Sterling Hedged – Distributing 18,891.03

James Bullock Portfolio manager Global Equity Fund Class D 33,266.55

* Holdings contain balances held by spouses and/or dependents.

16. Efficient portfolio management

The Company may, on behalf of any sub-fund and subject to the conditions and within the limits laid down by the Central Bank, employ techniques and instruments relating to transferable securities, including investment in financial derivative instruments (“FDI”). Such techniques and instruments may be used for efficient portfolio management (“EPM”) purposes, or to provide protection against exchange risk or for direct investment purposes, where applicable. Only such FDI as are provided for in the current risk management process for the Company approved by the Central Bank may be used by the Company.

Any over the counter (“OTC”) derivatives must be with an approved counterparty (being a counterparty with which a UCITS may enter into OTC derivative contracts) and in accordance with the requirements of the Central Bank.

During the financial period, forward currency transactions were entered into by the Japanese Equity Fund for the purpose of EPM. Details of all open transactions at the reporting date are disclosed in the schedule of investments.

17. Capital Management

The redeemable shares issued by the Company provide an investor with the right to require redemption for cash at a value proportionate to the investor’s shares in the sub-fund’s net assets at each redemption date and are classified as liabilities. The sub-funds’ objectives in managing the redeemable shares are to ensure a stable base to maximise returns to all investors and to manage liquidity risk arising from redemptions.

18. Fund Asset regime

The Company operates under a Fund Asset Model, whereby umbrella cash accounts designated in different currencies at umbrella level are held in the name of the Company. The umbrella cash accounts are used to collect subscription monies from investors and pay out redemption monies and also dividends (where applicable) to shareholders. The balances held in the accounts are reconciled on a daily basis and monies are not intended to be held in the accounts for long periods. The monies held in the umbrella cash accounts are considered an asset of the Company and are disclosed in the statement of financial position within cash and cash equivalents.


23

Notes to the financial statements (continued) For the six months ended 30 June 2018 19. Commitments and contingent liabilities

The Directors are not aware of any commitments or contingent liabilities of the Company.

20. Changes to the prospectus

There were no changes made to the prospectus during the financial period.

21. Significant events during the financial period

There were no items to report during the financial period.

22. Events after the reporting date

The Directors declared the following dividends after the reporting date: Global Equity Fund

Class Currency Distribution

per Share Ex-Date Final Distribution

paid

Income received on

subscriptions


Net distribution

charge Class A Shares* GBP £0.0210 02-July-2018 £3,689,464 (£211,372) £112,119 £3,590,211 Class B Shares* GBP £0.0130 02-July-2018 £5,389,878 (£682,037) £657,449 £5,365,290 Class D Shares* GBP £0.0108 02-July-2018 £11,444,109 (£1,815,925) £436,103 £10,064,287 £20,523,451 Japanese Equity Fund

Class Currency Distribution

per Share Ex-Date

Final distribution

paid

Income received on

subscriptions


Net distribution

charge Class B Distributing Shares* JPY ¥1.3250 02-July-2018 ¥46,487,994 (¥1,341,097) ¥658,654 ¥45,805,551 Class B Sterling Hedged Distributing Shares* GBP £0.0197 02-July-2018 £430,558 (£53,697) £35,581 £412,442 Class B Sterling Quoted – Distributing Shares* GBP £0.0193 02-July-2018 £462,975 (£134,280) £38,168 £366,863 *Share class is subject to equalisation

23. Approval of the financial statements

The unaudited financial statements were approved by the Board of Directors on 23 August 2018.


24

Schedule of investments As at 30 June 2018 Global Equity Fund

Currency Nominal holdings

Fair value GBP % NAV

Financial assets at fair value through profit or loss Equities Italy (2017: 1.53%) Juventus Football Club SpA EUR 107,611,018 63,111,368 1.29%

63,111,368 1.29% Japan (2017: 21.41%) Astellas Pharma Inc JPY 9,030,100 104,927,619 2.14% Canon Inc JPY 1,179,800 29,471,501 0.60% Ito En Ltd JPY 3,396,800 60,595,462 1.24% Japan Exchange Group Inc JPY 6,722,800 95,230,080 1.95% Kao Corp JPY 4,028,400 234,183,831 4.78% Meiko Network Japan Co Ltd JPY 736,200 6,462,702 0.13% Nintendo Co Ltd JPY 943,938 235,082,148 4.80% Shiseido Co Ltd JPY 4,735,400 286,621,152 5.86%

1,052,574,495 21.50% Netherlands (2017: 12.41%) Heineken Holding NV EUR 4,494,414 329,682,776 6.74% RELX NV EUR 14,732,474 238,520,612 4.87%

568,203,388 11.61% United Kingdom (2017: 27.80%) Celtic PLC GBP 5,177,655 6,912,169 0.14% Diageo PLC GBP 13,091,767 359,761,757 7.35% Hargreaves Lansdown PLC GBP 5,394,911 106,819,238 2.18% London Stock Exchange Group PLC GBP 5,310,057 239,324,269 4.89% Pearson PLC GBP 24,375,296 215,867,621 4.41% Unilever PLC GBP 9,255,749 390,685,165 7.98%

1,319,370,219 26.95% United States (2017: 33.68%) Brown-Forman Corp Class A USD 1,203,860 44,903,643 0.92% Brown-Forman Corp Class B USD 178,442 6,691,147 0.14% Dr Pepper Snapple Group Inc USD 932,450 85,158,439 1.74% eBay Inc USD 5,209,478 143,285,832 2.93% International Speedway Corp Class A USD 706,460 24,006,560 0.49% International Speedway Corp Class B USD 116,593 3,939,820 0.08% Intuit Inc USD 1,635,223 253,904,632 5.19% Mondelez International Inc USD 7,724,675 240,449,799 4.91% PayPal Holdings Inc USD 3,756,567 235,809,168 4.82% PepsiCo Inc USD 3,029,544 250,580,798 5.12% Walt Disney Co/The USD 3,016,241 240,504,871 4.91% World Wrestling Entertainment Inc USD 4,858,587 274,923,491 5.62%

1,804,158,200 36.87% Total equities 4,807,417,670 98.22% Total financial assets at fair value through profit or loss 4,807,417,670 98.22% Cash and cash equivalents and other net assets 86,914,962 1.78%

Net assets attributable to holders of redeemable participating shares 4,894,332,632 100.00% Analysis of total assets % of total assets Transferable securities admitted to official stock exchange listing 97.82% Other current assets 2.18% 100.00%


25

Schedule of investments (continued) As at 30 June 2018 Japanese Equity Fund

Currency Nominal holdings

Fair value JPY % NAV

Financial assets at fair value through profit or loss Equities (2017: 96.66%)

Astellas Pharma Inc

JPY 1,450,000 2,449,050,000 6.56% Broadleaf Co Ltd

JPY 1,400,000 938,000,000 2.50%

Calbee Inc

JPY 269,900 1,124,133,500 3.00% Canon Inc

JPY 188,400 684,080,400 1.83%

Earth Chemical Co Ltd

JPY 235,000 1,325,400,000 3.54% Hogy Medical Co Ltd

JPY 375,800 1,863,968,000 4.97%

Ito En Ltd

JPY 716,970 1,859,103,210 4.96% Japan Exchange Group Inc

JPY 730,000 1,503,070,000 4.01%

Kao Corp

JPY 417,000 3,523,650,000 9.40% Kirin Holdings Co Ltd

JPY 615,700 1,824,319,100 4.87%

Mandom Corp

JPY 550,165 1,898,069,250 5.07% Medikit Co Ltd

JPY 89,100 532,818,000 1.42%

Meiko Network Japan Co Ltd

JPY 635,000 810,260,000 2.16% Milbon Co Ltd

JPY 366,572 1,820,029,980 4.86%

Morningstar Japan KK

JPY 1,328,000 540,496,000 1.44% Nintendo Co Ltd

JPY 90,862 3,289,204,400 8.78%

OBIC Business Consultants Co Ltd

JPY 335,700 2,641,959,000 7.05% Shiseido Co Ltd

JPY 325,000 2,859,350,000 7.63%

Sotsu Co Ltd

JPY 217,500 524,392,500 1.40% Square Enix Holdings Co Ltd

JPY 229,700 1,249,568,000 3.33%

Taisho Pharmaceutical Holdings Co Ltd

JPY 100,050 1,297,648,500 3.46% Takeda Pharmaceutical Co Ltd

JPY 287,800 1,346,328,400 3.59%

Tsutsumi Jewelry Co Ltd

JPY 420,000 771,539,999 2.06%

36,676,438,239 97.89%

Total equities 36,676,438,239 97.89%

Forward Currency Contracts (Counterparty: Bank of New York Mellon) Purchase Currency Amount Sale Currency Amount Settlement date Fair value JPY % NAV

Class B Sterling Hedged Distribution Shares GBP 64,551,199 JPY (9,500,000,000)

13-Jul-2018 (119,217,605) (0.32%)

(119,217,605) (0.32%) Total derivatives (119,217,605) (0.32%) Total financial assets at fair value through profit or loss 36,557,220,634 97.57% Cash and cash equivalents and other net assets 911,601,859 2.43%

Net assets attributable to holders of redeemable participating shares 37,468,822,493 100.00% Analysis of total assets % of total assets Transferable securities admitted to official stock exchange listing 96.27% OTC financial derivative instruments (0.31%) Other current assets 4.04% 100.00%


26

Statement of significant portfolio movements (unaudited) For the six months ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the semi-annual report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period.

Global Equity Fund Cost Purchases GBP Unilever PLC 85,450,438 PepsiCo Inc 81,451,045 Diageo PLC 74,057,761 RELX NV 69,902,308 Mondelez International Inc 67,299,211 Walt Disney Co/The 62,565,566 Nintendo Co Ltd 58,563,375 Heineken Holding NV 53,929,210 Kao Corp 45,643,987 PayPal Holdings Inc 42,842,525 eBay Inc 31,046,330 Intuit Inc 26,008,791 Pearson PLC 22,232,585 Japan Exchange Group Inc 19,947,197 Brown-Forman Corp 19,365,450 Ito En Ltd 16,813,174 Hargreaves Lansdown PLC 15,399,947 Juventus Football Club SpA 14,745,061 Astellas Pharma Inc 4,065,926* London Stock Exchange Group PLC 4,053,074* Cost Sales GBP Kao Corp 27,807,290 PayPal Holdings Inc 17,478,188 Intuit Inc 13,586,884 Shiseido Co Ltd 12,324,506 Unilever PLC 6,915,387 Ito En Ltd 6,636,067 Diageo PLC 6,340,439 Heineken Holding NV 5,619,439 RELX NV 4,929,759 London Stock Exchange Group PLC 4,549,405 Walt Disney Co/The 4,169,218 Mondelez International Inc 4,168,055 PepsiCo Inc 4,107,918 Nintendo Co Ltd 4,055,750 Pearson PLC 3,948,032 World Wrestling Entertainment Inc 3,508,806 eBay Inc 2,588,464 Hargreaves Lansdown PLC 1,971,237 Astellas Pharma Inc 1,912,824 Japan Exchange Group Inc 1,687,743 Dr Pepper Snapple Group Inc 1,564,583 *Total value of purchase is less than 1 per cent of the total value of purchases for the financial period; however the Central Bank Regulations require a minimum of 20 purchases and sales to be disclosed.


27

Statement of significant portfolio movements (continued) For the six months ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the semi-annual report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period.

Japanese Equity Fund Cost Purchases JPY Nintendo Co Ltd 1,160,685,451 Square Enix Holdings Co Ltd 1,063,530,027 Mandom Corp 678,260,870 Kao Corp 608,859,373 Kirin Holdings Co Ltd 462,796,646 Milbon Co Ltd 444,389,683 Takeda Pharmaceutical Co Ltd 405,591,995 Earth Chemical Co Ltd 326,359,166 Japan Exchange Group Inc 322,230,487 Hogy Medical Co Ltd 311,463,296 Calbee Inc 286,925,632 Ito En Ltd 283,732,266 Astellas Pharma Inc 224,659,165 Tsutsumi Jewelry Co Ltd 181,630,816 Meiko Network Japan Co Ltd 168,535,452 Sotsu Co Ltd 131,790,441 OBIC Business Consultants Co Ltd 91,892,125 Morningstar Japan KK 76,556,748 Taisho Pharmaceutical Holdings Co Ltd 47,985,080* Medikit Co Ltd 24,522,157* Proceeds Sales JPY Milbon Co Ltd 425,664,878 Broadleaf Co Ltd 184,306,810 Ito En Ltd 105,014,787 Hogy Medical Co Ltd 104,404,171 Kao Corp 99,217,971 Kirin Holdings Co Ltd 70,159,578 Mandom Corp 34,099,522 Financial derivative instruments are excluded from the above due to no cost being attributed to purchases and sales of such instruments.

*Total value of purchase is less than 1 per cent of the total value of purchases for the financial period; however the Central Bank Regulations require a minimum of 20 purchases and sales to be disclosed. Due to trading volumes the above details all of the sales during the financial period.

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