Distinction Diversified Real Return Fund

Investment Objective

The Distinction Diversified Real Return Fund targets a capital return in excess of inflation (UK RPI) +4% per annum over a 7 year market cycle.

Fund Strategy

The DRR fund’s broad opportunity set and dynamic flexibility creates what we believe is the potential for much better risk-adjusted returns than traditional investments. The Fund seeks long-term capital appreciation through a flexible and diversified asset allocation across all liquid, global asset classes.

The Fund is diversified across a range of global investment themes as well as a diverse range of regions, asset classes and investment strategies. It allocates dynamically across both traditional and alternative asset classes gaining exposure, either directly or indirectly, to a range of assets including cash and near cash, deposits, money market instruments, fixed income, equity, real estate, commodity indices and currencies.

Fund Facts

Fund Size £11.0mLaunched 19th January 2010Domiciled United KingdomType OEICLegal Structure UCITS*Benchmark UK RPI +4% p.a.Lead manager Dr A. C. ArmstrongAnalyst Dr P. WhelanCurrency GBPValuation point Daily Noon, single NAVACD Fund Partners LimitedInitial ChargeAMC A 1.5% p.aAMC B 0.85% p.aIMA Sector Mixed Inv 20-60%**ISIN A: GB00B55LBR68

B: GB00B54DJ133Sedol A: B55LBR6

B: B54DJ13 Min Investment Single: £1,000

Regular: £100/mnth

*The Fund is classified as a UCITS scheme under the rules of the Financial Conduct Authority (FCA).**On 1 January 2012 the IMA Cautious Managed sector changed name to the IMA Mixed Investment 20-60% Shares sector.

Top 10 Holdings (%)

iShares II Plc S&P Global Water 9.1

SX5E Dividend Dec15 7.3

Fidelity Global Infl-Linked Bond Fund Y 6.8

Russell 2000 Mini Jun15

NB Global Floating Rate

-5.8

4.3

iShares Emg Markets Infrastructure

JPY 2016-01-17 Forward

EURO/GBP Future Sep15

4.3

-4.2

4.0

iShares Asia Pacific Dividend UCITS

Lyxor ETF SG Global Value Beta

3.2

3.2

Contact UsArmstrong Investment Managers LLP1 Royal Exchange AvenueLondon EC3V 3LT+44(0) 20 7464 4330aim.admin@armstrongim.comhttp://www.armstrongim.com

Administrator International Financial Data Services LtdIFDS HouseSt Nicholas LaneBasildon SS15 5FS+44 (0)844 620 0011http://www.wayfundmanagers.co.uk

Market Commentary (Q2)

Quantitative Easing has already started having an impact in the form of compressed yields, appreciating equity markets and a depreciating euro. We look to be long exporters. Euro zone GDP is forecast to be 1.5% in 2015. A sharply weaker euro is troubling for European luxury goods companies. As the price gap for their products in Europe and China widens they may have to rebalance prices globally, which could hurt earnings. European luxury goods have historically been priced almost 40% more in mainland China compared to Europe (though this is partly due to high import duties and consumption tax). To maintain margins in China, the price differential is now between 60% and 80%.

Monetary easing in China will help Chinese growth and the growth of emerging markets, although EM is too closely correlated to commodities. A rate hike in the U.S., we feel, will not be supportive of the emerging markets. China needs reforms that focus on social security more than it needs monetary stimulus.

A 6 year rally in the U.S. has been accompanied by strong EPS growth. Margins are also increasing, supported not only by higher productivity but also lower tax rates. The FED’s monetary easing has supported multiples, and U.S. companies are increasing their global market share. China, however, is slowing down, while Eurozone and Japan are both recovering, albeit at a slow rate. A combination of the strong dollar and low oil prices are increasing the purchasing power of the U.S. consumer.

Japan is on the path out of deflation and increasing domestic demand. There is a strong focus on increasing wages with a number of companies implementing the base wage increases. The Abenomics reflationary policy seems to be working. The key issues here remain corporate reforms, GPIF and foreigners buying.

Asset Allocation (%)

June 2015

Source: Bloomberg

Dr Ana Cukic Armstrong (Lead Manager)

Ana is CEO at Armstrong Investment Managers. Previously Ana spent six years as co-head of Insight Investment’s $2 Billion Multi-Asset Group. Prior to joining Insight, Ana worked at UBS Wealth Management as Director & Head of Portfolio Construction for the UBS Managed Accounts Program, managing $6 billion. She began her career at Coutts as an Investment Analyst. Ana has a PhD in Quantitative Economics and an MBA from Imperial College in London.

Important Information

This fact sheet is aimed at authorised and exempt persons only under the Financial Services and Markets Act 2000 and members of the public should disregard its contents.

Clients should be informed of the risks of investing. The value of your investment may fall as well as rise and is not guaranteed. Past performance is not an indicator of future performance. Full details of the risks can be found in the Fund Prospectus which can be obtained from Armstrong Investment Managers LLP (AIM), free of charge.

This document should not be construed as investment advice. Past performance is not a guide to future performance. Any investment decision should not be made on the basis of short-term performance. This is intended to be a medium to long-term investment. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

Basis: Total return ‘net’ of annual management charge, and UK tax. Please note that the January 2010 figure is from the fund launch date of 19 January 2010. The benchmark is UK Retail Price Index (RPI).Source for all performance data is Bloomberg and Lipper IM. Allocation data is sourced from Armstrong Investment Managers (AIM).Performance figures show total return, ‘net’ of UK tax and ‘net’ of annual management charge.

Issued by Armstrong Investment Managers LLP, which is authorised and regulated by the Financial Conduct Authority, (FCA) no. 503693. Registered office: AIM, 1 Royal Exchange Avenue, London EC3V 3LT

Risk Statistics

Based on annualised, monthly values taken over 1 year.

Standard Deviation: A statistical measure of the variability of returns. Though often used to quantify risk, it assumes a normal distribution of returns.

Sharpe Ratio: A measure of the total risk-reward trade-off of an investment vehicle, calculated as the excess return divided by the variability of the return (Standard Deviation).

Sortino Ratio: A measure of the risk-adjusted return of an instrument, portfolio or investment fund. It is a modification of the Sharpe ratio but only penalises the returns falling below a user specified target, or required rate of return, while the Sharpe ratio penalises both upside and downside volatility equally

Distinction Diversified Real Return Fund

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecYTD

2015 3.0 0.0 2.3 -0.2 0.7 4.5

2014

-1.0 1.4 0.6 0.7 1.6 -0.6 0.1 1.6 -2.1 -0.5 1.9 -2.0 1.6

2013

4.0 1.9 0.7 -0.8 0.7 -5.4 2.6 -1.4 -1.5 2.6 -3.1 0.0 0.0

2012

2.3 2.1 -1.5 -1.5 -1.3 0.8 1.0 0.1 -0.1 0.9 1.8 -0.3 4.3

2011

1.4 0.4 1.8 1.3 -0.2 0.1 -1.6 -4.4 -3.0 3.0 -2.5 1.0 -3.0

2010

0.0 0.0 7.4 0.8 -1.4 -1.8 1.7 0.9 3.8 2.2 -0.2 2.316.7

Cumulative Returns (%)

Discrete Returns (%)

Std deviation

Sharpe Ratio

Sortino Ratio

7.26

0.49

0.73

Standardised Rolling 12 month Performance

YTD 1 year 3 years 5 years Since inception

DRR 4.5 3.2 10.8 19.1 25.4

UK RPI 0.2 0.8 6.4 15.4 18.4

Monthly

Source: AIM and Bloomberg