31/12/14 pence per share 31/12/13 pence per share

UK Growth A Class 1.9600 0.8278UK Growth B Class 4.7562 3.2424

SVM UK GROWTH FUND

Short ReportYear to 31 December 2014

Key Objectives

The objective of this Fund is to achieve above average capital growth over the medium to long-term(although short-term investment opportunities will also be considered) and it aims to outperformthe FTSE All Share Index. The Fund will invest principally in securities listed on the London StockExchange.

Risk Profile

Due to global and UK market fluctuations trading may become difficult and the Fund may not beable to realise some of the investments it has made nor may prices be readily available that are areliable indication of value of the investments. Currency movements may cause the value of yourinvestment to fall as well as rise. Past performance should not be seen as an indication of futureperformance. The value of an investment may fall as well as rise and investors may not get back theamount originally invested.

Distribution

XD date: 31 December Payment date: 30 April

The following distribution was accumulated over the last accounting period.

Ongoing Charges Figure (OCF)

The OCF shows the annualised operating expenses of the Fund.

Fund Ongoing Charges Figure (p.a.) Class A Shares Class B Shares

UK Growth Fund 1.83% 1.08%

Ongoing Charges Figure = Total Annualised Expenses/Average Net Asset Value over 12 months X 100

The above figures were calculated by SVM Asset Management using data sourced from the 31 December 2014 Report andAccounts. The figures are intended to provide an indication of the Ongoing Charges Figure and will vary from year to year.

1 2 3 4 5 6 7

Lower Risk Higher Risk

Typically lower rewards Typically higher rewards

Highest share Lowest share Price as atprice in pence price per share period end

During period to 31/12/14UK Growth A class 365.3 294.1 334.8UK Growth B class 390.3 315.8 360.1

During period to 31/12/13UK Growth A class 342.5 255.8 340.1 UK Growth B class 365.5 271.0 363.0

Net asset value of Net asset value in Sharesshares £’000 pence per share in issue

As at 31/12/14UK Growth A class 23,074 334.3 6,902,539 UK Growth B class 82,212 359.5 22,866,418

As at 31/12/13UK Growth A class 36,328 339.4 10,704,951 UK Growth B class 67,820 362.2 18,722,972

Percentage growth for each 31/12/09 31/12/10 31/12/11 31/12/12 31/12/13year to last quarter end 31/12/10 31/12/11 31/12/12 31/12/13 31/12/14

UK Growth 24.3 -8.2 18.7 36.7 -2.3

Net Asset Values

Comparative Tables

Share Price Performance

Top 10 Holdings: 31/12/14 % Top 10 Holdings: 31/12/13 %

Ashtead 3.6 Ted Baker 2.6Whitbread 3.4 Booker 2.5Prudential 3.4 Whitbread 2.5Hikma Pharmaceuticals 2.9 Ashtead 2.4easyJet 2.7 WANdisco 2.3St James's Place 2.6 St James's Place 2.3ITV 2.5 ASOS 2.3Booker 2.5 Shire 2.3Ted Baker 2.5 Aberdeen Asset Management 2.2Playtech 2.4 SuperGroup 2.2Total 28.5 Total 23.6

Source: Lipper Hindsight, mid to mid, UK net. Past performance should not be seen as an indication of futureperformance. All performance data refers to the A (retail) share class.

Fund Performance

Sector Analysis

Fund Managers

Market Review

The UK economy continued to grow at one of the fastest rates in theOECD, although expectations for growth in 2015 and 2016 have beenrevised down. The UK austerity programme to address its high level ofborrowing has been extended, as progress is slower than expected.However, this also means interest rates will remain low for longer. UKcompanies with US activities are continuing to benefit from the strongAmerican economy, despite the ending of US economic stimulation.Inflation in the US, UK and Eurozone remains low, with deflation insome of the peripheral nations of Europe. Although the oil price fallwill significantly boost the UK economy and add as much as 1% toglobal growth, in the short term it may be a negative for some bondmarkets and banks. The fourth quarter of 2014 saw the best growth the UK has seen in sixyears in real take-home pay, with consumer confidence up to pre-crisislevels. This has been driven largely by the fall in the inflation rate, andlower petrol prices in particular. It should help some consumersectors, particularly in pubs and leisure. The Fund continues to avoidfood retailers and consumer businesses that are significantly impactedby low inflation or disruptive strategies by new entrants.

Portfolio Review

Over the 12 months, the SVM UK Growth Fund performance was -2.3%, compared to a return for the IMA UK All Companies Sectoraverage of 0.6% and 1.2% for the FTSE All-Share Index. Over fiveyears, the SVM UK Growth Fund has returned 80.9% versus 63.1%for the IMA UK All Companies Sector average and 51.8% for the FTSEAll-Share Index (Source: Lipper Hindsight). The 2014 result mainlyreflected weakness in some mid-caps earlier in the year, and themarket’s focus on large cap global groups that are seen as defensive.Performance recovered strongly in the second half of 2014. Your Fundhas outperformed its benchmark in 7 out of the 9 calendar years underthe current investment manager.

The portfolio’s holdings emphasise exposure to large and medium-sized UK-listed companies, including a number with significant globalactivities. This helped Hutchison China Meditech, which haspharmaceutical research and a consumer pharmaceuticals business inChina. Its research licence in China gives it an advantage over themajor global groups in conducting cancer and inflammatory diseaseresearch. Ashtead also benefited from its significant US activities. Over the year, the strongest contributions to performance were frompharmaceuticals and UK property companies. Shire attracted a bidapproach, which ultimately failed, but the significant compensation itreceived enabled it to make an acquisition. Hikma Pharmaceuticalsreported strong growth. The property groups with strong gainsincluded Workspace, Derwent London, St Modwen, and Unite. Therewere some disappointments in technology investments, and thesewere sold during the year. Although the oil and mining sectors wereweak, portfolio exposure to these areas is low. The Fund has noexposure to banks, as we identify better value in insurance, propertyand other financials.

Outlook

Low UK inflation numbers and the slowdown in Europe look likely todelay any UK interest rate rise beyond 2015. Indeed, UK inflation mayundershoot the Bank of England’s 2% target, even in 18 months’ time.Global inflation is at a five year low; many commodities, such ascotton, iron ore and steel are also seeing their lowest prices for morethan five years. The Brent oil price has now fallen to a level that islikely to prove challenging for most oil companies, particularly in termsof cashflow and dividends. The Fund has no direct exposure to the oilsector. Some portfolio companies that are heavy energy consumersshould be helped by cheaper oil, such as Go-Ahead, Ryanair, Easyjetand Flybe.With currency volatility and a slow-down in emerging markets,predominantly domestic UK businesses like Whitbread and ITV arenow more attractive. The key is to avoid areas hit by deflation, such assupermarkets, and recognise the disruption in some big industriessuch as banking and retailing. Falls in energy and commodity priceswill boost consumer confidence. The Election may encourage this too.This should help businesses like Sports Direct and house builder,Berkeley Group.We do not believe that full QE in Europe is yet priced-in by markets.Europe will also be boosted by the weakness of the Euro and fall inenergy prices, and this should also help the UK economy. The Fund’sequity investments reflect good potential for self-help in a range ofbusinesses, including those that can benefit from improving UKconsumer confidence.

Margaret Lawson Colin McLean

31/12/14 31/12/13Basic Materials 3.2% 1.3%Consumer Goods 11.1% 12.3%Consumer Services 31.5% 30.0%Financials 21.6% 18.2%Healthcare 5.7% 4.5%Industrials 20.3% 23.5%Oil & Gas 2.1% 0.3%Technology 2.0% 6.8%Telecommunications 1.1% 2.4%Net Current Assets 1.4% 0.7%

Further Information

Further information about the share price and activities of the Fund together with related productliterature and further information on the Manager can be found on our website atwww.svmonline.co.uk. This document is a short report for a sub-fund of the SVM Funds ICVC takenfrom the Report and Accounts for the year ending 31 December 2014. The Long Form version ofthe Report and Accounts is available on written request to the Marketing Department, SVM AssetManagement Limited, 7 Castle Street, Edinburgh EH2 3AH or by email to info@svmonline.co.uk

The Prospectus was changed in August 2014 to reflect the closure of the Global Opportunities Fundand to permit the cost associated with screening shareholders against sanctions and politicallyexposed persons lists to be paid out of scheme property. A copy of the Prospectus is available onrequest.

Contacts

Authorised Corporate Director Depository

and Investment Manager State Street Trustees LimitedSVM Asset Management Limited 525 Ferry Road7 Castle Street Edinburgh EH5 2AWEdinburgh EH2 3AHEmail: info@svmonline.co.uk Custodian

Web: www.svmonline.co.uk State Street Bank and Trust CompanyAuthorised and regulated by the 525 Ferry RoadFinancial Conduct Authority Edinburgh EH5 2AW

Administrator Auditors

International Financial Data Scott-MoncrieffServices (UK) Limited Exchange Place 3SVM Asset Management Limited Semple StreetPO Box 11967 Edinburgh EH3 8BLChelmsford CM99 2DSShareholder Services: 0845 358 1108Dealing: 0845 066 1110Fax: 01733 285 681

0800 0199 440

www.svmonline.co.uk

Important changes to SVM Funds ICVC

SVM/UKGROW