omnisinvestments.comomnisinvestments.com/media/16412/omnis-portfolio-annual-2016.pdf · page omnis...

Annual Report &Financial StatementsOmnis Portfolio Investments ICVC

For the year ended 30 September 2016

PageOmnis Portfolio Investments ICVC

Directory* 3

Authorised Corporate Director’s (“ACD”) Report* 4

Certification of Financial Statements by Directors of the Authorised Corporate Director* 5

Statement of the ACD’s Responsibilities 6

Statement of the Depositary’s Responsibilities 7

Report of the Depositary to the Shareholders of the Company 8

Independent Auditor’s Report to Shareholders 9

Accounting Policies and Financial Instruments 11

Fund Investment Commentaries and Financial Statements*

Omnis Alternative Strategies Fund 20

Omnis Asia Pacific Equity Fund 36

Omnis Developed Markets (ex-UK, ex-US) Equity Fund 52

Omnis Emerging Markets Equity Fund 69

Omnis European Equity Fund 87

Omnis Global Bond Fund 103

Omnis Income and Growth Fund 135

Omnis UK Bond Fund 152

Omnis UK Equity Fund 171

Omnis US Equity Fund 188

General Information 206

* Collectively, these comprise the Authorised Corporate Director’s Report.

The Company and Head Office Authorised Corporate Director (“ACD”)Omnis Portfolio Investments ICVC Omnis Investments LimitedWashington House Washington HouseLydiard Fields Lydiard FieldsSwindon SN5 8UB Swindon SN5 8UBIncorporated in England and Wales (Authorised and regulated by the FCA)under registration number IC000982

Website address: www.omnisinvestments.com Investment Managers(Authorised and regulated by the FCA) Baillie Gifford & Co

Calton SquareDirectors and Secretary of the ACD 1 Greenside RowGerry Aherne (resigned 29 February 2016) Edinburgh EH1 3ANStuart Buckingham (appointed 9 June 2016) (Authorised and regulated by the FCA)Peter DavisPhilip Martin BNY Mellon Investment Management EMEA LimitedDouglas Naismith (appointed 10 March 2016) 160 Queen Victoria StreetDominic Sheridan London EC4V 4LAJudith Worthy (resigned 17 June 2016) (Authorised and regulated by the FCA)

Andy Whipp (Secretary) Jupiter Asset Management LimitedThe Zig Zag Building

Registrar 70 Victoria StreetInternational Financial Data Services (UK) Limited London SW1E 6SQIFDS House (Authorised and regulated by the FCA)St Nicholas LaneBasildon Octopus Investments LimitedEssex SS15 5FS 33 Holborn

London EC1N 2HTAuditor (Authorised and regulated by the FCA)Deloitte LLPGeneral Accountants and Statutory Auditor Schroder Investment Management LimitedSaltire Court 31 Gresham Street20 Castle Terrace London EC2V 7QAEdinburgh EH1 2DB (Authorised and regulated by the FCA)

Customer Service Centre Thomas White InternationalOmnis Portfolio Investments ICVC 440 South LaSalle StreetPO BOX 10191 Suite 3900Chelmsford CM99 2AP Chicago, Illinois 60605Telephone: 0345 140 0070* (Authorised and regulated by the SEC)

Depositary Threadneedle Asset Management LimitedState Street Trustees Limited 78 Cannon Street20 Churchill Place London EC4N 6AGLondon E14 5HJ (Authorised and regulated by the FCA)(Authorised and regulated by the FCA)

Woodford Investment Management Limited9400 Garsington RoadOxford Business ParkOxford OX4 2HN(Authorised and regulated by the FCA)

* Please note that telephone calls may be recorded for monitoring and training purposes, and to confirm investors’instructions. 3

Omnis Portfolio Investments ICVC

Directory

4


Authorised Corporate Director’s Report

We are pleased to present the AnnualReport & Accounts for Omnis PortfolioInvestments ICVC for the year ended30 September 2016.

Authorised Status

Omnis Portfolio Investments ICVC(“the Company”) is an investmentcompany with variable capitalincorporated in England and Walesunder registered number IC000982and authorised by the FinancialConduct Authority (“FCA”) with effectfrom 3 September 2013. The Companyhas an unlimited duration.

Shareholders are not liable for thedebts of the Company.

Head office: Washington House,Lydiard Fields, Swindon, SN5 8UB

The Head Office is the address of theplace in the UK for service on theCompany of notices or otherdocuments required or authorised tobe served on it.

Structure of the Company

The Company is structured as anumbrella company, in that differentFunds may be established from time totime by the ACD with the approval ofthe FCA. On the introduction of anynew Fund or Class, a revisedprospectus will be prepared setting outthe relevant details of each Fund orClass.

The Company is a UCITS scheme.

The assets of each Fund will be treatedas separate from those of every otherFund and will be invested inaccordance with the investmentobjective and investment policyapplicable to that Fund. Investment ofthe assets of each of the Funds mustcomply with the FCA’s CollectiveInvestment Schemes Sourcebook(“COLL”) and the investment objectiveand policy of the relevant Fund.

Cross Holdings

There were no shares in any sub-fund held by other sub-funds of the ICVC.

Base Currency

The base currency of the Company is Pounds Sterling. Each Fund and Class isdesignated in Pounds Sterling.

Share Capital

The minimum share capital of the Company is £1 and the maximum is£100,000,000,000. Shares in the Company have no par value. The share capitalof the Company at all times equals the sum of the Net Asset Values of each ofthe Funds.

5


Certification of Financial Statements by Directors of the AuthorisedCorporate DirectorFor the year ended 30 September 2016

Director’s Certification

This report has been prepared in accordance with the requirements of COLL, as issued and amendedby the FCA. We hereby certify the report on behalf of the Directors of Omnis Investments Limited.

The Directors are of the opinion that it is appropriate to continue to adopt the going concern basisin the preparation of the accounts as the assets of the Funds consist predominately of securitiesthat are readily realisable and, accordingly, the Funds have adequate resources to continue inoperational existence for the foreseeable future.

Dominic Sheridan

Philip Martin

Omnis Investments Limited

12 January 2017

6


Statement of the ACD’s ResponsibilitiesFor the year ended 30 September 2016

The Authorised Corporate Director (“ACD”) of Omnis Portfolio Investments ICVC (“Company”) isresponsible for preparing the Annual Report and the Financial Statements in accordance with theOpen-Ended Investment Companies Regulations 2001 (“the OEIC Regulations”) as amended, theFCA’s Collective Investment Schemes Sourcebook (“COLL”) and the Company’s Instrument ofIncorporation.

The OEIC Regulations and COLL require the ACD to prepare Financial Statements for each annualaccounting period which:

• are in accordance with United Kingdom Generally Accepted Accounting Practice (“UnitedKingdom Accounting Standards and applicable law”) including Financial Reporting Standards102 (“FRS 102”) applicable in the UK and Republic of Ireland and the Statement ofRecommended Practice: “Financial Statements of Authorised Funds” issued by the InvestmentAssociation (formerly Investment Management Association) (“IMA SORP”) in May 2014; and

• give a true and fair view of the financial position of the sub funds as at the end of that periodand the net revenue and the net capital gains or losses on the property of the sub funds forthat period.

In preparing the Financial Statements, the ACD is required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards and the IMA SORP have been followed,subject to any material departures disclosed and explained in the Financial Statements; and

• prepare the Financial Statements on the going concern basis unless it is inappropriate topresume that the Company will continue in operation.

The ACD is responsible for keeping proper accounting records that disclose with reasonable accuracyat any time the financial position of the Company and enable them to ensure that the FinancialStatements comply with the applicable IMA SORP and United Kingdom Accounting Standards andapplicable law. The ACD is also responsible for the system of internal controls, for safeguarding theassets of the Company and for taking reasonable steps for the prevention and detection of fraudand other irregularities.

In accordance with COLL 4.5.8BR, the Annual Report and the audited Financial Statements wereapproved by the board of directors of the ACD of the Company and authorised for issue on12 January 2017.

Omnis Investments Limited

12 January 2017

7


Statement of Depositary’s ResponsibilitiesFor the year ended 30 September 2016

The Depositary must ensure that the Company is managed in accordance with the Financial ConductAuthority’s Collective Investment Schemes Sourcebook, the Open-Ended Investment CompaniesRegulations 2001 (SI 2001/1228), as amended, the Financial Services and Markets Act 2000, asamended, (together “the Regulations”), the Company’s Instrument of Incorporation and Prospectus(together “the Scheme documents”) as detailed below.

The Depositary must in the context of its role act honestly, fairly, professionally, independently andin the interests of the Company and its investors.

The Depositary is responsible for the safekeeping of all custodial assets and maintaining a recordof all other assets of the Company in accordance with the Regulations.

The Depositary must ensure that:

• the Company’s cash flows are properly monitored1 and that cash of the Company is bookedinto the cash accounts in accordance with the Regulations;

• the sale, issue, repurchase, redemption and cancellation of shares are carried out inaccordance with the Regulations;

• the value of shares of the Company are calculated in accordance with the Regulations;

• any consideration relating to transactions in the Company’s assets is remitted to the Companywithin the usual time limits;

• the Company’s income is applied in accordance with the Regulations; and

• the instructions of the Authorised Fund Manager (“the AFM”) which is the UCITS ManagementCompany, are carried out (unless they conflict with the Regulations).

1 This requirement on the Depositary applied from 18 March 2016.

8


Report of the Depositary to the Shareholders of the CompanyFor the year ended 30 September 2016

Having carried out such procedures as we consider necessary to discharge our responsibilities asDepositary of the Company, it is our opinion, based on the information available to us and theexplanations provided, that in all material respects the Company, acting through the ACD:

(i) has carried out the issue, sale, redemption and cancellation, and calculation of the price ofthe Company’s shares and the application of the Company’s revenue in accordance with COLLand, where applicable, the OEIC Regulations and the Instrument of Incorporation andProspectus of the Company; and

(ii) has observed the investment and borrowing powers and restrictions applicable to theCompany.

State Street Trustees LimitedDepositary London

12 January 2017

9


Independent Auditor’s Report to ShareholdersFor the year ended 30 September 2016

We have audited the Financial Statements of Omnis Portfolio Investments ICVC (“the Company”)for the year ended 30 September 2016 which comprise the Accounting Policies and FinancialInstruments notes and for each sub-fund: the Statements of Total Return, the Statements of Changein Net Assets Attributable to Shareholders, the Balance Sheets, the individual notes and DistributionTables. The financial reporting framework that has been applied in their preparation is applicablelaw and United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republicof Ireland”, the Statement of Recommended Practice: “Financial Statements of Authorised Funds”issued by the Investment Association in May 2014, the Collective Investment Schemes Sourcebookand the Instrument of Incorporation.

This report is made solely to the company’s shareholders, as a body, in accordance with Paragraph4.5.12R of the Collective Investment Schemes Sourcebook of the Financial Conduct Authority. Ouraudit work has been undertaken so that we might state to the company’s shareholders thosematters we are required to state to them in an auditor’s report and for no other purpose. To thefullest extent permitted by law, we do not accept or assume responsibility to anyone other thanthe company and the company’s shareholders as a body, for our audit work, for this report, or forthe opinions we have formed.

Respective Responsibilities of the Depositary, the Authorised Corporate Director(ACD) and the Auditor

As explained more fully in the Statement of the Depositary’s Responsibilities and the Statement ofthe ACD’s Responsibilities, the Depositary is responsible for safeguarding the property of thecompany and the ACD is responsible for the preparation of the Financial Statements. Ourresponsibility is to audit and express an opinion on the Financial Statements in accordance with therequirements of the Collective Investment Schemes Sourcebook, applicable law and InternationalStandards on Auditing (UK and Ireland). Those standards require us to comply with the AuditingPractices Board’s Ethical Standards for Auditors.

Scope of the audit of the Financial Statements

An audit involves obtaining evidence about the amounts and disclosures in the Financial Statementssufficient to give reasonable assurance that the Financial Statements are free from materialmisstatement, whether caused by fraud or error. This includes an assessment of: whether theaccounting policies are appropriate to the company’s circumstances and have been consistentlyapplied and adequately disclosed; the reasonableness of significant accounting estimates made bythe ACD; and the overall presentation of the Financial Statements.

In addition, we read all the financial and non-financial information in the annual report to identifymaterial inconsistencies with the audited Financial Statements and to identify any information thatis apparently materially incorrect based on, or materially inconsistent with, the knowledge acquiredby us in the course of performing the audit. If we become aware of any apparent materialmisstatements or inconsistencies we consider the implications for our report.

Opinion on Financial Statements

In our opinion the Financial Statements:

• give a true and fair view of the financial position of the sub funds as at 30 September 2016and of the net revenue/(expense) and the net capital gains on the property of the sub fundsfor the year ended 30 September 2016; and

10


Opinion on Financial Statements (continued)

• have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting Practice (“United Kingdom Accounting Standards and applicable law”), includingFRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” andthe Statement of Recommended Practice: “Financial Statements of Authorised Funds” issuedby the Investment Association (“IMA SORP”) in May 2014; the rules in the CollectiveInvestment Schemes Sourcebook and the Instrument of Incorporation.

Opinion on other matters prescribed by the Collective Investment SchemesSourcebook

In our opinion:

• proper accounting records for the sub funds have been kept and the Financial Statementsare in agreement with those records;

• we have received all the information and explanations which, to the best of our knowledgeand belief, were necessary for the purposes of our audit; and

• the information disclosed in the Annual Report for the year ended 30 September 2016 forthe purpose of complying with Paragraph 4.5.9R of the Collective Investment SchemesSourcebook is consistent with the Financial Statements.

Deloitte LLPChartered Accountants and Statutory AuditorEdinburgh, United Kingdom

12 January 2017

Independent Auditor’s Report to Shareholders (continued)For the year ended 30 September 2016

11


Accounting Policies and Financial InstrumentsFor the year ended 30 September 2016

1. Accounting Basis and Policies

(a) Basis of accountingThe Financial Statements have been prepared under the historical cost basis, as modified bythe revaluation of investments and in accordance with Financial Reporting Standard 102(“FRS 102”) and in accordance with the Statement of Recommended Practice (“IMA SORP”)for Financial Statements of Authorised Funds issued by the Investment ManagementAssociation (now known as the Investment Association) in May 2014.

This is the first year that the Company has presented its Financial Statements under FRS 102issued by the Financial Reporting Council. The last Financial Statements under previous UKGAAP were for the year ended 30 September 2015 and the date of transition to FRS 102 wastherefore 1 October 2014. There has not been a significant impact as a consequence ofadopting FRS 102 for the first time.

Changes implemented as a result of adopting IMA SORP 2014• The removal of the aggregated financial statements• The inclusion of details of any cross holdings within the ICVC• The performance record has been replaced by a comparative table• New disclosures included to show share class movements, detailed portfolio transaction

cost breakdown and a fair value hierarchy breakdown of the portfolio

As described in the Certification of Financial Statements by Directors of the ACD on page 5,the ACD continues to adopt the going concern basis in the preparation of the FinancialStatements of the Funds.

(b) Recognition of revenueDividends on quoted equities and preference shares are recognised when the securities arequoted ex-dividend and are recognised net of attributable tax credits.

Revenue from unquoted securities is recognised when the dividend is declared.

Rebates of annual management charges on underlying investments are accounted for on anaccruals basis and recognised as revenue or capital in line with the treatment of the chargeon the underlying Fund.

Revenue from debt securities is accounted for on an effective yield basis. Accrued interest onpurchase and sale contracts is recognised as revenue and transferred to revenue or capitalas appropriate.

Distributions from Collective Investment Schemes are recognised when the schemes arequoted ex-distribution. Equalisation returned with the distribution is deducted from the costof the investment and does not form part of the distributable revenue.

Interest on bank and other cash deposits is recognised on an accruals basis.

All revenue includes withholding taxes but excludes irrecoverable tax credits.

Any reported revenue from an offshore fund, in excess of any distribution received in thereporting period, is recognised as revenue no later than the date on which the reporting fundmakes this information available.

12


Accounting Policies and Financial Instruments (continued)For the year ended 30 September 2016

1. Accounting Basis and Policies (continued)

(b) Recognition of revenue (continued)Returns on derivative transactions have been treated as either revenue or capital dependingon the motives and circumstances on acquisition.

(c) Treatment of stock and special dividendsThe ordinary element of stock dividends received in lieu of cash dividends is credited to capitalin the first instance followed by a transfer to revenue of the cash equivalent being offeredand this forms part of the distributable revenue.

Special dividends are reviewed on a case by case basis in determining whether the dividendis to be treated as revenue or capital. Amounts recognised as revenue will form part of thedistributable revenue. The tax treatment follows the treatment of the principal amount.

(d) Treatment of expensesExpenses of the Funds are charged against revenue except for costs associated with thepurchase and sale of investments which are allocated to the capital of the Funds.

Rebates on the fees payable to the ACD are accounted for on an accruals basis and recognisedas revenue or capital in line with the treatment of the ACD fee on each fund. Rebates on thefees payable to the ACD are netted off against the expense to which they relate.

(e) Allocation of revenue and expenses to multiple share classes and fundsAny revenue or expenses not directly attributable to a particular share class or fund willnormally be allocated pro-rata to the net assets of the relevant share classes and funds.

(f) TaxationTax is provided for using tax rates and laws which have been enacted or substantively enactedat the balance sheet date.

Corporation tax is provided for on the income liable to corporation tax less deductibleexpenses.

Corporation tax is provided for on realised gains on non-reporting offshore funds lessdeductible expenses. Deferred tax is provided for on unrealised gains on non-reportingoffshore funds less deductible expenses.

Deferred tax is provided using the liability method on all timing differences arising on thetreatment of certain items for taxation and accounting purposes, calculated at the rate atwhich it is anticipated the timing differences will reverse. Deferred tax assets are recognisedonly when, on the basis of available evidence, it is more likely than not that there will betaxable profits in the future against which the deferred tax asset can be offset.

Overseas capital gains tax is recognised when paid and no provision is made for this.

13



(g) Distribution policyThe net revenue after taxation, as disclosed in the Financial Statements, after adjustmentfor items of a capital nature, is distributable to shareholders as dividend or interestdistributions. Any revenue deficit is deducted from capital at year end.

In addition, portfolio transaction charges will be charged wholly to the capital of all Funds.Accordingly, the imposition of such charges may constrain the capital growth of every Fund.

The ACD has elected to pay all revenue less expenses charged to revenue and taxation as afinal distribution at the end of the annual accounting period.

Interim distributions may be made at the ACD’s discretion and in line with the Prospectus.

(h) Basis of valuation of investmentsListed investments are valued at close of business bid prices excluding any accrued interestin the case of fixed interest securities, on the last business day of the accounting period.

Market value is defined by the SORP as fair value which is the bid value of each security.

Collective Investment Schemes are valued at quoted bid prices for dual priced funds and atquoted prices for single priced funds, on the last business day of the accounting period.

In valuing unquoted investments, the ACD follow the criteria set out below. These procedurescomply with the revised International Private Equity and Venture Capital Valuation Guidelines(IPEVCV) for the valuation of unquoted investments. Investments are recognised at theirtrade date at cost which is designated by the ACD as fair value. Investments are valued atfair value, which represents the ACD’s view of the amount for which an asset could beexchanged between knowledgeable and willing parties in an arm’s length transaction. Thisdoes not assume that the underlying business is saleable at the reporting date or that itscurrent shareholders have an intention to sell their holding in the near future. For unquotedinvestments completed prior to the reporting date, fair value is determined using the price ofthe recent investment method, except that adjustments are made when there has been amaterial change in the trading circumstances of the company. Where there is evidence ofimpairment, a provision may be taken against the previous valuation of the investment. Theunquoted investments are valued by the ACD based upon information from an independentvaluation firm, taking into account, where appropriate, latest dealing prices, valuations fromreliable sources, financial performance, and other relevant factors.

The fair value of derivative instruments is marked to market value. The forward currencycontracts are valued at the prevailing forward exchange rates.

(i) Exchange ratesTransactions in foreign currencies are recorded in Sterling at the rates ruling at the dates ofthe transactions. Assets and liabilities expressed in foreign currencies at the end of theaccounting period are translated into Sterling at the closing mid market exchange rates rulingon that date.


14



(j) Dilution adjustmentThe ACD may require a dilution adjustment on the sale and redemption of shares if, in itsopinion, the existing shareholders (for sales) or remaining shareholders (for redemptions)might otherwise be adversely affected. In particular, the dilution adjustment may be chargedin the following circumstances: where the scheme property is in continual decline; on a Fundexperiencing large levels of net sales relative to its size; on ‘large deals’; in any case wherethe ACD is of the opinion that the interests of remaining shareholders require the impositionof a dilution adjustment.

(k) EqualisationEqualisation applies only to shares purchased during the distribution period (Group 2 shares).It represents the accrued revenue included in the purchase price of the shares.

After averaging it is returned with the distribution as a capital repayment. It is not liable toincome tax but must be deducted from the cost of the shares for Capital Gains tax purposes.

(l) DerivativesSome of the Funds may enter into permitted transactions such as derivative contracts orforward foreign currency transactions. Where these transactions are used to protect orenhance revenue, the revenue and expenses are included within net revenue in the Statementof Total Return.

Where the transactions are used to protect or enhance capital, the gains/losses are treatedas capital and included within gains/losses on investments in the Statement of Total Return.Any open positions in these types of transactions at the year end are included in the BalanceSheet at their mark to market value.

2. Derivatives and other financial instruments

In pursuing the investment objectives a number of financial instruments are held which maycomprise securities and other investments, cash balances and debtors and creditors that arisedirectly from operations. Derivatives, such as futures or forward currency contracts, may beutilised for hedging purposes.

The ACD maintains a detailed Risk Management Policy for identifying, measuring anddocumenting mitigation activities for those risks to which the Funds may be exposed.


15


2. Derivatives and other financial instruments (continued)

Certain Funds are measured using the Value at Risk Methodology and the remainder usingthe Commitment Methodology.

Risk Utilisation of the VaR LimitFund Measurement Lowest Highest Average

Omnis Alternative Strategies Fund Commitment N/A N/A N/AOmnis Asia Pacific Equity Fund Commitment N/A N/A N/AOmnis Developed Markets (ex-UK, ex-US) Equity Fund Commitment N/A N/A N/AOmnis Emerging Markets Equity Fund Commitment N/A N/A N/AOmnis European Equity Fund Commitment N/A N/A N/AOmnis Global Bond Fund Value at Risk 4.69% 6.27% 5.38%Omnis Income and Growth Fund Commitment N/A N/A N/AOmnis UK Bond Fund Value at Risk 4.65% 6.75% 5.15%Omnis UK Equity Fund Commitment N/A N/A N/AOmnis US Equity Fund Commitment N/A N/A N/A

None of the Funds using the commitment method employ significant leverage.

The Value of Risk Methodology is Absolute VaR which is the Maximum expected loss for theportfolio over a defined holding period, one month, at a confidence level of 99%. VaR iscalculated using a factor exposure model based on two years’ historic price data.

(a) Foreign currency riskThe revenue and capital value of the assets of the Funds can be significantly affected bycurrency translation movements.

The ACD has identified three principal areas where foreign currency risk could impact theFunds:

• Movements in rates affect the value of investments

• Movements in rates affect the short term timing differences

• Movements in rates affect the revenue received

There is the risk that the value of such assets and/or the value of any distributions from suchassets may decrease if the underlying currency in which assets are traded falls relative to thebase currency in which Shares of the relevant Fund are valued and priced.

The Funds of the Company are not required to hedge their foreign currency risk, althoughthey may do so through foreign currency exchange contracts, forward contracts, currencyoptions and other methods. To the extent that the Funds of the Company do not hedge theirforeign currency risk or such hedging is incomplete or unsuccessful, the value of the Fundsof the Company’s assets and revenue could be adversely affected by currency exchange ratemovements. There may also be circumstances in which a hedging transaction may reducecurrency gains that would otherwise arise in the valuation of the Funds of the Company incircumstances where no such hedging transactions are undertaken.


16



(b) Interest rate risk profile of financial assets and liabilitiesThe interest rate risk is the risk that the value of the Funds of the Company’s investmentswill fluctuate due to changes in the interest rate. Cashflows from floating rate securities, bankbalances, or bank overdrafts will be affected by the changes in interest rates. As the Fundsof the Company’s objective is to seek capital growth, these cashflows are considered to be ofsecondary importance and are not actively managed. The details of each Funds’ interest raterisk profile is shown in notes 13, 14 or 15 of the individual fund notes.

The Omnis Global Bond Fund and the Omnis UK Bond Fund invest primarily in interest-bearingsecurities, although other Funds may also invest in these types of securities to a lesser degree.

(c) Credit riskThe Omnis Global Bond Fund and the Omnis UK Bond Fund invest primarily in interest-bearingsecurities, although other Funds may also invest in these types of securities to a lesser degree.If any individual company fails to perform well, then the credit rating of that company mayfall and the bonds would fall in price as a result of the perceived increased credit risk. Adheringto investment guidelines and avoiding excessive exposure to one particular issuer can limitcredit risk. The ACD closely monitors the ratings of the bonds within the portfolio.

(d) Liquidity riskThe primary source of liquidity risk is the liability to shareholders for any cancellation of shares.The assets of the Funds comprise, in the main, ready realisable securities, but, subject to theRegulations, the Funds of the Company may invest up to and including 10% of the SchemeProperty of the Funds of the Company in transferable securities which are not approvedsecurities (essentially transferable securities which are admitted to official listing in an EEAstate or traded on or under the rules of an eligible securities market). Such securities andinstruments are generally not publicly traded, may be unregistered for securities law purposesand may only be able to be resold in privately negotiated transactions with a limited numberof purchasers. The difficulties and delays associated with such transactions could result inthe Funds of the Company’s inability to realise a favourable price upon disposal of suchsecurities, and at times might make disposal of such securities and instruments impossible.To the extent that Funds of the Company invest in such securities and instruments the termsof which are privately negotiated, the terms of these may contain restrictions regarding resaleand transfer.

The Omnis Income & Growth Fund actively utilises the opportunity for investment in unquotedsecurities. The unquoted investments are in small and medium sized unlisted companieswhich, by their nature, entail a higher level of risk and lower liquidity than investments inlarge quoted companies. The ACD aims to limit the risk attaching to the investment portfolioby ensuring that a robust, structured selection and monitoring process is applied. The ACDreviews the investment portfolio on a regular basis.

In addition, certain listed securities and instruments, particularly securities and instrumentsof smaller capitalised or less seasoned issuers, may from time to time lack an active secondarymarket and may be subject to more abrupt or erratic price movements than securities oflarger, more established companies or stock market averages in general. In the absence ofan active secondary market the ability to purchase or sell such securities at a fair price maybe delayed.


17



(e) Market price riskThe Funds of the Company invest primarily in equities, bonds, units in Collective InvestmentSchemes and derivatives. The values of these investments are not fixed and may go downas well as up. This may be the result of a specific factor affecting the value of an individualequity or be caused by general market factors (such as government policy or the health ofthe underlying economy) which can affect the entire portfolio. The Investment Manager seeksto minimise these risks by holding a diversified portfolio in line with the objectives of eachFund. In addition, the management of the Funds of the Company complies with the FCA’sCOLL sourcebook, which includes rules prohibiting a holding greater than 20% of assets inany one Fund.

If the market prices had increased or decreased by 10% as at the balance sheet date, thenet asset values of the Funds would have changed by the following amounts. Thesecalculations are applied to non-derivative securities only.

Increase Decrease Fund Name £’000 £’000

Omnis Alternative Strategies Fund 13,444 13,444 Omnis Asia Pacific Equity Fund 3,840 3,840 Omnis Developed Markets (ex-UK, ex-US) Equity Fund 35,769 35,769 Omnis Emerging Markets Equity Fund 23,136 23,136 Omnis European Equity Fund 1,701 1,701 Omnis Global Bond Fund 20,779 20,779 Omnis Income and Growth Fund 11,267 11,267 Omnis UK Bond Fund 60,045 60,045 Omnis UK Equity Fund 68,674 68,674 Omnis US Equity Fund 37,427 37,427

(f) Counterparty riskTransactions in securities entered into by the Funds of the Company give rise to exposure tothe risk that the counterparties may not be able to fulfil their responsibility by completingtheir side of the transaction. The Investment Managers minimises this risk by conductingtrades through only the most reputable counterparties.

The ACD monitors the Funds’ exposure to individual counterparties and applies limits whichmay not be exceeded.

(g) Default riskThe Omnis Global Bond Fund and the Omnis UK Bond Fund invest primarily in bonds that areat risk of default at any given time. The risk of default is mitigated by the regular monitoringof bonds internally and externally by using ratings agencies.


18



(h) Derivatives and forward transactionsAll of the Funds may use derivatives for the purposes of Efficient Portfolio Management and,where disclosed below, certain of the Funds’ of the Company utilise derivative instrumentsfor investment purposes.

Global Bond Fund

Interest Rate Swaption, Currency Option, Interest Rate Swap, Credit Default Swap, Futuresand Forward Foreign Exchange.

UK Bond Fund

Forward Foreign Exchange – for the purpose of hedging against the potential negative effectof currency movements on the portfolio.

The Global Bond Fund entered into exchange traded derivatives during the year. The marketvalue of the exchange traded derivatives (deemed to be futures contracts) and globalexposure that exists through the open futures contracts as at 30 September 2016 were:

Market value Exposureas at 30 as at 30

September SeptemberContract description 2016 2016

£’000 £’000

Canada Government Bond Futures December 2016 (4) (260)German Euro BOBL Futures December 2016 1 569 German Euro BTP Futures December 2016 4 1,599 German Euro Bund Futures December 2016 (23) (10,135)German Euro BUXL 30 Year Bond Futures December 2016 3 166 German Euro-Schatz Futures December 2016 0 (290)Long Gilt Futures December 2016 (10) 10,587 Long Gilt Futures December 2016 (3) (915)US Treasury Long Bond December 2016 (1) 131 US Treasury Long Bond December 2016 0 (523)US Treasury Note 10 Year Futures December 2016 4 1,312 US Treasury Note 10 Year Futures December 2016 0 (2,420)US Treasury Note 2 Year Futures December 2016 0 3,541 US Treasury Note 2 Year Futures December 2016 (1) (1,180)US Treasury Note 5 Year Futures December 2016 (1) 3,930 US Treasury Note 5 Year Futures December 2016 (3) (6,010)US Treasury Ultra Bond Futures December 2016 3 (5,698)The counterparty for these transactions was UBS Limited. Margin is paid or received on futurescontracts to cover an exposure by the counterparty to the Fund or by the Fund to thecounterparty.


19



The Global Bond Fund entered into over the counter derivatives during the year. The marketvalue of the over the counter derivatives (deemed to be Interest Rate Swaps and CreditDefault Swaps) and global exposure that exists though the open swap contracts as at30 September 2016 were:

Market value Exposureas at 30 as at 30

September SeptemberContract description 2016 2016

£’000 £’000

JPMorgan Chase (239) 239 UBS (2) 2

The Global Bond Fund had the following type and amount of collateral received to reducecounterparty exposure as at 30 September 2016.

Value£’000

Sterling Cash – JPMorgan 260

The UK Bond Fund had the following type and amount of collateral received to reducecounterparty exposure as at 30 September 2016.

Value£’000

Sterling Cash – Goldman Sachs 30

(i) Fair value of financial assets and financial liabilitiesThere is no material difference between the value of the financial assets and liabilities, asshown in the balance sheet, and their fair value.

(j) LeverageLeverage is defined as any method by which a Fund increases its exposure to investmentsthrough borrowing or the use of derivatives. The leverage employed for each Fund is disclosedin the Notes to the Financial Statements and is calculated as the sum of the net asset valueand the incremental exposure generated through the use of derivatives (calculated inaccordance with the commitment approach (CESR/10-788)) divided by the net asset value.


20

Omnis Alternative Strategies Fund

Investment Objective

To achieve a positive return above the rate for cash over the longer term. Cash is measured asGBP LIBOR over a three year rolling period.

Investment Policy

The Fund will be invested to exploit anomalies in markets including in the equity, fixed interest andproperty markets. The Fund intends to invest primarily in a range of collective investment schemes.The Fund will also invest in exchange traded products, money market instruments, cash and nearcash, deposits, transferable securities, derivative instruments and warrants. Subject to the require-ments of the Regulations, the Fund will normally remain fully invested. There will be no restrictionson the underlying content of the investments held, in terms of investment type, geographical oreconomic sector, other than those imposed by the Regulations, meaning that the fund managerhas the absolute discretion to weight the portfolio towards any investment type or sector, includingcash, at any time.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives maybe used for the purposes of hedging and efficient portfolio management.

Investment Review

Omnis Alternative Strategies made steady progress in the twelve months from 1 October 2015 to30 September 2016, with a 1.75% increase during the year (Source: Lipper. 01/10/15–30/09/16.£ returns, net income reinvested. A share class).

We chose to maintain a cautious strategy during October’s equity market rally. Funds that hadoutperformed their benchmarks in previous months fared less well during the rally, particularly OldMutual Global Equity Absolute Return. Henderson UK Absolute Return and NN Alternative Beta werethe exceptions to this, mainly because their investments are more aligned to market movements.Investment activity was fairly limited in November, apart from reducing Morgan Stanley DiversifiedAlpha Plus. Although the performance of the fund has been disappointing of late, we believe it iswell managed with sound investment strategies.

In December, we continued to take a more defensive position by adding to government bondsthrough a new investment, iShares GBP Index-Linked Gilts exchange-traded fund, and reducing L&GInternational Index. We switched from JP Morgan Global Convertibles to Oaktree Global ConvertibleBonds, a similar fund investing in bonds that can be converted to equity, but one with lower costsand more in keeping with our current investment strategy.

We introduced Old Mutual Absolute Return Government Bond to the portfolio in January. Its newmanagement team joined from Ignis Asset Management, and the fund was chosen for its focus onquality government bonds. We added a new global equity fund, Acadian Diversified Alpha, whichaims to profit from having negative, as well as positive, views on particular stocks.

Ahead of the referendum to decide whether the UK should remain in the European Union (EU), weadjusted the portfolio to a more neutral position by reducing equities and increasing its cash holding.We reduced Melchior Selected Trust European Absolute Return as its performance continued todisappoint. The relative strength of global equities helped a number of funds produce positive returns,led by H20 MultiReturns and NN Alternative Beta.

In August, funds whose fortunes are more closely aligned to those of broad equity markets faredbest as those markets rose, particularly H20 MultiReturns. However, market-neutral funds producedmixed results, with Old Mutual Global Equity Absolute Return and BlackRock European AbsoluteAlpha producing negative returns. At the end of the period we added Jupiter Absolute Return, whichspecialises in taking advantage of share price movements when markets fluctuate.

Investment Manager’s ReportFor the year ended 30 September 2016

21


Market Overview

Interest rates were a key concern throughout the period, as investors kept a close eye on centralbanks for signs of potential interest rate rises. The US Federal Reserve (Fed) led the way by raisinginterest rates in December 2015, but by April, markets were factoring in the possibility of no furtherrate rises from the Fed in 2016. In August, the Bank of England announced an interest ratecut of 0.25%.

Global equity markets rallied in October but January saw sharp falls, before they recovered someground. The low oil price continued to be a deflationary factor in the developed world. China madeefforts to stimulate economic growth, but wouldn’t reveal the extent of its slowdown.

Investors were nervous ahead of June’s ‘Brexit’ referendum. Share prices fell sharply after thesurprise majority vote to leave the EU, but most equity markets recovered quite quickly. Sterlingbore the brunt of the uncertainty caused by the referendum outcome, falling dramatically againstthe US dollar and the EURO.

Outlook

We are wary of the stock market rally since the referendum outcome and believe there is reasonfor caution. We haven’t seen the anticipated correction in stock markets for a number of reasons.First, investors are adopting a ‘wait and see’ strategy until a clear plan for the UK leaving the EUemerges. Second, investors can’t assess the impact on the UK economy until the data reports forthe third quarter of 2016 are available. Finally, the longer-term effects of a weakened sterling areyet to take effect, and we expect this will be felt through higher prices for consumers and inflatedimport costs for manufacturers. With so many unanswered questions, the UK market looksexpensive. As a result, we have looked to sell some of our holdings while markets are rising, andhold cash back in our portfolios until the picture becomes a little clearer.

We expect further action from the Bank of England and an Autumn Statement from new chancellor,Philip Hammond, to mark a new direction away from austerity. This may provide further short-termsupport for markets. In the meantime, sterling seems to be bearing the brunt of the ‘Brexit’concerns, particularly since Prime Minister Theresa May announced Article 50 will be triggered byMarch 2017, which would start the process of leaving the EU.

With the US in the final throes of its presidential election, the Fed is unlikely to do anything in termsof raising rates until December. No-one is discounting the possibility that presidential candidateDonald Trump could win, but Hillary Clinton still looks the most likely victor. It is very clear themarket will not react favourably to a Trump success.

We remain cautious across our portfolios. Politics and central bank action are dictating the ebb andflow of markets. With no discernible trends emerging, the sensible course of action is to revert toour long-term strategy and let managers of the funds we invest in use their in-depth understandingof their respective markets to maximise investment opportunities.

Investment ManagerOctopus Investments Limited17 October 2016

Investment Manager’s Report (continued)For the year ended 30 September 2016

22


A Income30/09/2016 30/09/2015 30/09/2014

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 102.31 101.28 100.00 Return before operating charges* 3.23 2.96 2.23 Operating charges (1.41) (1.38) (0.73)Return after operating charges 1.82 1.58 1.50

Distributions (0.29) (0.55) (0.22)Closing net asset value per share 103.84 102.31 101.28

* after direct transaction costs of: 0.02 0.06 0.05

PerformanceReturn after operating charges 1.78% 1.56% 1.50%

Other informationClosing net asset value (£’000) 157,211 99,595 43,555Closing number of shares 151,401,448 97,345,563 43,003,554Operating charges 1.37% 1.34% 1.26%Direct transaction costs 0.02% 0.06% 0.05%

Prices (p)Highest share price 104.50 104.91 101.71Lowest share price 101.66 99.29 98.98

Comparative TableAs at 30 September 2016

23


Ongoing Charge FigureTotal

Synthetic Rebates from ongoing AMC Other expense underlying Transaction charge

AMC rebate expenses ratio funds costs figureDate (%) (%) (%) (%) (%) (%) (%)

30/09/2016Share Class A Income 0.75 0.00 0.05 0.71 (0.14) 0.00 1.37

30/09/2015Share Class A Income 0.75 (0.07) 0.05 0.74 (0.14) 0.01 1.34

The Ongoing Charge Figure (OCF) is the ratio of the Fund’s total disclosable costs (excludingoverdraft interest) to the average net assets of the Fund. When a Fund invests a substantialproportion of its assets in other UCITS or Collective Investment Undertakings (CIU), the OCF shalltake account of the ongoing charges incurred in the underlying CIUs and disclose as a Syntheticexpense ratio.

• This indicator is based on historical data and may not be a reliable indication of the futurerisk profile of the Fund.

• The risk category shown is not guaranteed to remain unchanged and may shift over time.

• The risk and reward indicator table demonstrates where a Fund ranks in terms of its potentialrisk and return. The higher the rank the greater the potential reward but the greater the riskof losing money. The lowest category does not mean ‘risk free’.

• The Fund appears as a “3” on the scale. This is because the Fund invests in a diverse mixtureof investments.

Risk Warning

An investment in an Open Ended Investment Company should be regarded as a medium to longterm investment. Investors should be aware that the price of Shares and the income from themmay fall as well as rise and investors may not receive back the full amount invested. Pastperformance is not a guide to future performance. Investments denominated in currencies otherthan the base currency of a Fund are subject to fluctuation in exchange rates, which may befavourable or unfavourable.

Share Class A 1 2 3 4 5 6 7

Typically lower rewards Typically higher rewards

Higher riskLower risk3

Risk and Reward ProfileAs at 30 September 2016

Performance Information As at 30 September 2016

24


Holdingsor Nominal Market value % of TotalValue Investments £’000 Net Assets

Collective Investment Schemes 78.52% [82.16%]60,000 Acadian Diversified Alpha D GBP 649 0.41

448,781 Acadian Diversified Alpha F GBP 4,371 2.78 7,625 Amundi Absolute Volatility EURO Equities 7,870 5.01

2,989,420 BlackRock Corporate Bond Tracker 4,601 2.93 6,920,963 BlackRock European Absolute Alpha 9,295 5.91 3,201,212 BlackRock Overseas Corporate Bond Tracker 4,687 2.98 8,145,026 BNY Mellon Absolute Return Equity 9,833 6.25 2,509,756 H20 MultiReturns 3,123 1.98 5,770,933 Henderson UK Absolute Return 9,285 5.91 6,583,524 Hermes Absolute Return Credit Fund 6,681 4.25 5,272,475 Invesco Perpetual Global Targeted Returns Fund 6,179 3.93 2,260,296 Jupiter Absolute Return Fund 1,299 0.83 2,775,045 Legal & General Dynamic Bond 2,930 1.86 7,448,365 Legal & General Short Dated Sterling Corporate

Bond Index C Acc 4,022 2.56 47,460 Melchior European Absolute Return 5,346 3.40 56,125 Muzinich Long Short Credit Yield 7,233 4.60 90,344 NN (L) Alternative Beta 8,837 5.62 35,513 Oaktree Global Convertible Bond 3,680 2.34

440,370 Old Mutual Absolute Return Government Bond 4,443 2.83 5,539,838 Old Mutual Global Equity Absolute Return 8,595 5.47 5,138,746 Royal London Absolute Return Government Bond 5,132 3.26 6,659,541 Standard Life Global Absolute Return Strategies 5,358 3.41

123,449 78.52

Exchange Traded Funds 7.00% [7.30%]92,856 iShares Core UK Gilts 1,278 0.81

150,823 iShares GBP Index-Linked Gilts 2,780 1.7775,493 iShares Global Infrastructure 1,426 0.91

358,293 iShares UK Property 2,103 1.3421,403 iShares USD Treasury Bond 7-10yr 3,407 2.17

10,994 7.00

Portfolio of investments 134,443 85.52Net other assets 22,768 14.48Net assets 157,211 100.00

The investments have been valued in accordance with note 1(h) of the Accounting Policies and Financial Instruments.

All investments are Collective Investment Schemes unless otherwise stated.

Comparative figures shown above in square brackets relate to 30 September 2015.

Gross purchases for the year: £104,651,000 [2015: £118,787,000] (See Note 15).

Total sales net of transaction costs for the year: £61,987,000 [2015: £66,198,000] (See Note 15).

Portfolio StatementAs at 30 September 2016

25


01/10/15 to 30/09/16 01/10/14 to 30/09/15Note £’000 £’000 £’000 £’000

IncomeNet capital gains 2 1,837 121 Revenue 3 1,358 1,051 Expenses 4 (964) (533)Interest payable and similar charges 5 (4) –

Net revenue before taxation 390 518 Taxation 6 (30) (63)Net revenue after taxation 360 455 Total return before distributions 2,197 576Distributions 7 (360) (455)Change in net assets

attributable to shareholdersfrom investment activities 1,837 121

01/10/15 to 30/09/16 01/10/14 to 30/09/15£’000 £’000 £’000 £’000

Opening net assets attributable to shareholders 99,595 43,555

Amounts receivable on issue of shares 55,954 56,657 Amounts payable on cancellation

of Shares (175) (738)55,779 55,919

Change in net assets attributableto shareholders from investment activities (see above) 1,837 121

Closing net assets attributable to shareholders 157,211 99,595

Statement of Change in Net Assets Attributable to Shareholders For the year ended 30 September 2016

Statement of Total ReturnFor the year ended 30 September 2016

26


30/09/16 30/09/15Note £’000 £’000 £’000 £’000

AssetsFixed assets:

Investments 134,443 89,099Current assets:

Debtors 8 5,755 1,219 Cash and bank balances 9 21,055 11,132

Total current assets 26,810 12,351 Total assets 161,253 101,450 Liabilities

Investment liabilities – –Creditors:Distribution payable (386) (431)Other creditors 10 (3,656) (1,424)

Total creditors (4,042) (1,855)Total liabilities (4,042) (1,855)Net assets attributable

to shareholders 157,211 99,595

Balance SheetAs at 30 September 2016

27



The Fund’s Financial Statements have been prepared on the basis detailed on pages 11 to 19.

2. Net capital gains01/10/15 to 01/10/14 to

30/09/16 30/09/15£’000 £’000

The net capital gains during the year comprise:Currency gains 42 21Non-derivative securities 1,798 105Transaction charges (3) (5)Net capital gains 1,837 121

3. Revenue01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000

Bank interest 6 19 Franked dividends from Collective Investment Schemes 50 34 Interest income from Collective Investment Schemes 541 321 Offshore funds dividends 590 462 Rebates received from underlying funds 171 98 Unfranked dividends from Collective Investment Schemes – 117 Total revenue 1,358 1,051

4. Expenses01/10/15 to 01/10/14 to

30/09/16 30/09/15£’000 £’000

Payable to the ACD, associates of the ACD, and agents of either of them

AMC fees 910 541AMC fee rebate – (48)

910 493Payable to the Depositary, associates of the

Depositary and agents of either of themDepositary fees 32 22Safe custody fees 5 3

37 25Other expensesAudit fees 9 9Professional fees 7 2Publication fees 1 4

17 15Total expenses 964 533

Audit fees are £7,550 ex VAT (2015: £7,350).

Notes to the Financial Statements For the year ended 30 September 2016

28


5. Interest payable and similar charges01/10/15 to 01/10/14 to

30/09/16 30/09/15£’000 £’000

Interest 4 –Total interest payable and similar charges 4 –

6. Taxation

(a) Analysis of the tax charge in the year01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000

Corporation tax 30 63 Total taxation for the year (Note 6 (b)) 30 63

(b) Factors affecting the tax charge for the year

The tax assessed for the year is different from that calculated when the standard rate ofcorporation tax for an open ended investment company of 20% (2015: 20%) is applied tothe net revenue before taxation. The differences are explained below:

01/10/15 to 01/10/14 to 30/09/16 30/09/15

£’000 £’000

Net revenue before taxation 390 518 Net revenue for the year multiplied by the standard

rate of corporation tax 78 104 Effects of:Revenue not subject to corporation tax (48) (41)Total tax charge for the year 30 63

OEICs are exempt from tax on capital gains in the UK. Therefore, any capital return is not included within thereconciliation above.

(c) Provision for deferred tax

There is no provision required for deferred taxation as at the Balance Sheet date in the currentyear or prior year.

Notes to the Financial Statements (continued)For the year ended 30 September 2016

29


7. Distributions

The distributions take account of revenue received on the creation of Shares and revenuededucted on the cancellation of Shares, and comprise:

01/10/15 to 01/10/14 to30/09/16 30/09/15

£’000 £’000

Interim 39 73 Final 386 431 Add: Revenue paid on cancellation of Shares – 3 Deduct: Revenue received on creation of Shares (65) (52)Net distribution for the year 360 455

Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 360 455 Net distribution for the year 360 455

Details of the distributions per Share are set out in the distribution tables on page 35.

8. Debtors30/09/16 30/09/15

£’000 £’000

Accrued revenue 7 –Amounts due for rebates from underlying funds 58 82 Amounts receivable for creation of shares 2,219 489 Income tax recoverable 170 52 Sales awaiting settlement 3,301 596 Total debtors 5,755 1,219

9. Cash and bank balances30/09/16 30/09/15

£’000 £’000

Cash and bank balances 21,055 11,132 Total cash and bank balances 21,055 11,132


30


10. Other creditors30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares – 678Corporation tax payable 141 67Purchases awaiting settlement 3,408 600

3,549 1,345Accrued expensesManager and AgentsAMC fees 93 61

93 61Depositary and AgentsDepositary fees 3 2Safe custody fees 1 2Transaction charges – 3

4 7Other accrued expensesAudit fees 9 9Publication fees 1 2

10 11Total other creditors 3,656 1,424

11. Related party transactions

Management fees paid to the ACD, are disclosed in note 4 and amounts due at the year endare disclosed in note 10.

Monies received and paid by the ACD through the creation and cancellation of Shares aredisclosed in the Statement of Change in Shareholders’ Net Assets and amounts due at theyear end are disclosed in notes 8 and 10.

The ACD and its associates (including other authorised investment funds managed by theACD) have no Shareholdings in the Company at the year end.

Significant shareholdings

As at the balance sheet date, the following had significant Shareholdings within the Fund

Shareholders 30/09/16 (%)

Sterling ISA Managers (Nominees) Limited 63.00FundsDirect Nominees Limited 36.90


31


12. Share Classes

The Share Classes and ACD’s Annual Management Charges applicable to each Fund are asfollows:

%

Share Class A Income 0.75

Each Share Class has equal rights in the event of the wind up of any fund.

The reconciliation of the opening and closing numbers of shares of each class is shown below:

30/09/15 Issued Cancelled Converted 30/09/16

Share Class A Income 97,345,563 54,226,763 (170,878) – 151,401,448

13. Capital commitments and contingent liabilities

There were no contingent liabilities or outstanding commitments as at the balance sheet date(2015: nil).


The main risks from the Fund’s holding of financial instruments, together with the ACD’spolicy for managing these risks, are disclosed in note 2 on pages 14 to 19 of the report.

(a) Foreign currency risk

A proportion of the financial net assets of the Fund are denominated in currencies other thanSterling with the effect that the balance sheet and total return can be affected by currencymovements.

The Fund holds an insignificant foreign currency exposure at 30 September 2016 therefore acurrency table has not been disclosed.

Changes in exchange rates would have no material impact on the valuation of foreign currencyfinancial assets or liabilities as at the balance sheet date. Consequently, no sensitivity analysishas been presented.


32



(b) Interest rate risk profile of financial assets and liabilities

The table below shows the interest rate risk profile as at the balance sheet date:

Financial assetsFloating rate Fixed rate not carrying

financial assets financial assets interest TotalCurrency Assets £’000 £’000 £’000 £’000

30/09/16Euro 4,064 – – 4,064 Sterling 16,935 – 140,190 157,125 US Dollar 57 – 7 64 Total 21,056 – 140,197 161,253 30/09/15Euro 1 – – 1 Sterling 11,107 – 90,318 101,425 US Dollar 24 – – 24 Total 11,132 – 90,318 101,450

Floating rate Fixed rate Financialfinancial financial liabilities notliabilities liabilities carrying interest Total

Currency Liabilities £’000 £’000 £’000 £’000

30/09/16Sterling – – 4,042 4,042 Total – – 4,042 4,042 30/09/15Sterling – – 1,855 1,855 Total – – 1,855 1,855

Changes in interest rates would have no material impact on the valuation of floating ratefinancial assets or liabilities as at the balance sheet date. Consequently, no sensitivity analysishas been presented.


33


15. Portfolio transaction costs01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the year

before transaction costs:Collective investment schemes 104,639 118,765

104,639 118,765Commissions – Collectiveinvestment schemes 12 22 Total purchase costs 12 22 Gross purchase total 104,651 118,787 Analysis of total sale costsGross sales in the year

before transaction costs:Collective investment schemes 61,997 66,218

61,997 66,218 Commissions – Collective investment schemes (10) (20)Total sale costs (10) (20)Total sales net of transaction

costs 61,987 66,198

The portfolio transaction costs table above includes direct transaction costs suffered by theFund during the year.

For the Fund’s investment in Collective Investment Scheme holdings there will potentially bedealing spread costs applicable to purchases and sales. However additionally there are indirecttransaction costs suffered in those underlying funds, throughout the holding period for theinstruments, which are not separately identifiable and do not form part of the analysis above.


34



15. Portfolio transaction costs (continued)01/10/15 to 01/10/14 to

30/09/16 30/09/15Transaction costs as percentage of principal amounts % %

Purchases – CommissionsCollective investment schemes 0.0115% 0.0185%

Purchases – TaxesCollective investment schemes 0.0000% 0.0000%

Sales – CommissionsCollective investment schemes 0.0161% 0.0302%

Sales – TaxesCollective investment schemes 0.0000% 0.0000%

01/10/15 to 01/10/14 to30/09/16 30/09/15

Transaction costs as percentage of average net asset value % %

Commissions 0.0181% 0.0580%Taxes 0.0000% 0.0000%

As at the balance sheet date the average portfolio dealing spread was 0.09% (2015: 0.15%).

16. Post balance sheet events

Subsequent to the year end, the Net Asset Value per Share of the Fund has decreased usingthe Share prices at the year end date compared to 30 December 2016.

A Class Income Shares have decreased from 104.19p to 103.92p. This takes into accountroutine transactions but also reflects the market movements.

There are no post balance sheet events which require adjustments at the year end.

17. Fair value disclosure30/09/16 30/09/15

Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000

Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 12,293 – 7,271 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly 122,150 – 81,828 –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – – – –

134,443 – 89,099 –

35


Interim Distribution in pence per share

Group 1 Shares purchased prior to 1 October 2015Group 2 Shares purchased on or after 1 October 2015 to 31 March 2016

Distribution DistributionNet paid paid

revenue Equalisation 31/05/16 31/05/15(p) (p) (p) (p)

Share Class A IncomeGroup 1 0.0342 – 0.0342 0.1042Group 2 0.0309 0.0033 0.0342 0.1042

Final Distribution in pence per share

Group 1 Shares purchased prior to 1 April 2016Group 2 Shares purchased on or after 1 April 2016 to 30 September 2016

Distribution DistributionNet payable paid



Distribution TableAs at 30 September 2016

36


The aim of the Fund is to provide capital growth.

Investment Policy

The Fund intends to invest primarily in equities issued by companies incorporated in or havingsignificant operations in the Asia Pacific region, including: Japan, Hong Kong, Singapore, Australiaand New Zealand. The Fund may also invest in other transferable securities such as warrants anddeposits, and may also invest in money market instruments and units in collective investmentschemes. No more than 10% of the Property of the Fund will be invested in other collectiveinvestment schemes.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives mayalso be used for the purposes of hedging and efficient portfolio management. It is not anticipatedthat such use of derivatives will have a significant effect on the risk profile of the Fund.

Investment Review

This report covers the period from the fund’s launch on 3 May to its year end on 30 September2016. During the period portfolio turnover remained low, reflecting our confidence in existingholdings and in keeping with our long-term investment approach. Among the small number ofchanges made there were three new purchases: Chinese beer franchise Tsingtao Breweries,Japanese online real estate portal Next and niche Japanese retail bank Suruga. These were fundedby the complete sale of Bank of China Hong Kong and of Yamaha Motor, where developmentsduring the period weakened our conviction in the potential upside.

Tsingtao is China’s second largest beer company with a dominant position within a number ofregions. We believe that the beer industry offers prospects for attractive long-term returns, aswealth effects and urbanisation underpin consistent price rises and high brand awareness supportscustomer stickiness. Against a challenging short-term backdrop, the shares have been unusuallyweak, presenting us with an excellent entry point to take an initial holding.

Next has an opportunity to disrupt the online real estate advertising market as similar businesseshave done in other countries. The company now has over 7 million properties on its website, anda new growth area in short-term residential lettings has recently emerged following deregulation.Suruga is a well-managed, family-run bank which has an excellent track record of profitable lendinggrowth, making it stand out among its Japanese peers. We have admired both of these businessesfor some time and decided to take an initial position for your portfolio following a de-rating of theshares.

The sale of Bank of China Hong Kong was driven by capital allocation concerns and a general sensethat interference from the Chinese parent company was becoming an increasing headwind forshareholders. In the case of Yamaha Motor, with margins recovering strongly, particularly withinthe outboard motors segment, the investment case had largely played out. At the same time wehave observed that the strength of Yamaha’s competitive edge in motorcycles has weakened sinceour initial purchase.

Omnis Asia Pacific Equity Fund

Investment Manager’s ReportFor the period ended 30 September 2016

37

Market Overview

Markets in Developed Asia posted a slight gain of 2.4% in local currency terms over the period,although when converted to sterling they recorded a 35.2% rise. In Japan, which represents aroundtwo thirds of the index, the most noteworthy news was that The Bank of Japan (BoJ) introducednegative interest rates in early 2016 in an attempt to stimulate the economy, whilst the governmentpostponed a consumption tax hike until October 2019. Later in the period, the BoJ also madeadjustments to its monetary stimulus programme in a move that signals governor Kuroda’sdetermination to achieve his 2% inflation target.

Elsewhere, weakness in the Chinese economy had a knock-on effect on activity in Hong Kong.However, the news that Chinese regulators decided to drop a quota limit on the amount investorscan invest via the connect system, along with the announcement of a new trading link to theShenzhen market expected to launch early next year, are encouraging developments. In Australia,although a recovery in resource prices in the latter half of the period has supported an improvementin headline growth, concerns surrounding a fall in core inflation have led the Reserve Bank ofAustralia to reduce interest rates twice during 2016 to a record low of 1.5%.

Outlook

While the macro backdrop for Developed Asian markets is uncertain at the current juncture, weare excited about the opportunities on offer to us as long-term investors in this dynamic region.Demographic developments, regulatory change and innovation in technology across many industriescontinue to throw up opportunities for us as investors. In Japan specifically, improving attitudestowards corporate governance are broadening the opportunity set for us as quality growth investors.We continue to identify interesting businesses across the region which benefit from strongmanagement teams, durable competitive advantages and a long runway of growth and expect someof these to make their way into the portfolio in the fullness of time.

Investment ManagerBaillie Gifford & Co14 October 2016



A Income30/09/2016

(p)

Change in net assets per ShareOpening net asset value per share 100.00**Return before operating charges* 19.83 Operating charges (0.39)Return after operating charges 19.44

Distributions (0.10)Closing net asset value per share 119.34

* after direct transaction costs of: 0.02

PerformanceReturn after operating charges 19.44%

Other informationClosing net asset value (£’000) 39,387Closing number of shares 33,004,789Operating charges 0.83%Direct transaction costs 0.01%

Prices (p)Highest share price 121.25Lowest share price 99.22

** Share class A Income launched on 3 May 2016 at a price of 100 pence.


38


39



ongoingOther Transaction charge

AMC expenses costs figureDate (%) (%) (%) (%)

30/09/16Share Class A Income 0.75 0.06 0.02 0.83

The Ongoing Charge Figure (OCF) is the ratio of the Fund’s total disclosable costs (excludingoverdraft interest) to the average net assets of the Fund.




• The Fund appears as a “5” on the scale. This is because the Fund invests in the shares ofcompanies whose values tend to vary more widely than other asset classes.

Risk Warning






Performance InformationAs at 30 September 2016

40


Collective Investment Scheme 8.80%92,932 Baillie Gifford Overseas Growth 3,465 8.80

3,465 8.80

Equity 88.69%Australia 18.55%

84,240 Aristocrat Leisure 785 1.99 37,817 BHP Billiton 498 1.26

111,844 Brambles 789 2.00 13,988 Cochlear 1,161 2.95 85,328 James Hardie Industries 1,021 2.59

175,830 Mesoblast 116 0.30 115,680 SEEK 1,060 2.69 153,478 Treasury Wine Estates 998 2.53 93,024 Washington H Soul Pattinson & Co 883 2.24

7,311 18.55

Cayman Islands 0.96%113,600 Sands China 379 0.96

379 0.96

China 1.16%152,000 Tsingtao Brewery 456 1.16

456 1.16

Hong Kong 9.38%309,000 Galaxy Entertainment 896 2.28 51,000 Hong Kong Exchanges and Clearing 1,032 2.62 19,800 Jardine Matheson 924 2.35

1,483,000 PAX Global Technology 839 2.13 3,691 9.38

Israel 0.87%351,000 Sarine Technologies 341 0.87

341 0.87



41


Japan 54.26%116,700 Advantest 1,206 3.06 27,600 Asahi 769 1.95 42,200 Bridgestone 1,188 3.02 38,900 Denso 1,181 3.00 6,500 FANUC 839 2.13 1,900 Fast Retailing 466 1.18

76,100 Japan Exchange 903 2.29 30,200 Japan Tobacco 945 2.40 65,700 Kakaku.com 910 2.31 23,400 Makita 1,274 3.24 64,300 MS&AD Insurance 1,362 3.46 98,900 Next 618 1.57 34,100 Olympus 906 2.30 48,400 Pigeon 1,118 2.84

111,700 Rakuten 1,112 2.82 12,600 Shimano 1,428 3.63 69,700 Shiseido 1,411 3.58 5,600 SMC 1,230 3.12

18,800 SoftBank 930 2.36 18,300 Sugi Holdings 761 1.93 44,500 Suruga Bank 815 2.07

21,372 54.26

Singapore 3.51%130,100 United Overseas Bank 1,382 3.51

1,382 3.51

Portfolio of investments 38,397 97.49Net other assets 990 2.51Net assets 39,387 100.00


All investments are ordinary shares unless otherwise stated and admitted to official stock exchange listings.

Gross purchases for the year: £67,827,000 (See Note 15).

Total sales net of transaction costs for the year: £32,199,000 (See Note 15).


Portfolio Statement (continued)As at 30 September 2016

42

03/05/16 to 30/09/16Note £’000 £’000

IncomeNet capital gains 2 2,762 Revenue 3 104Expenses 4 (63)

Net revenue before taxation 41 Taxation 5 (9)Net revenue after taxation 32 Total return before distributions 2,794 Distributions 6 (32)Change in net assets

attributable to shareholdersfrom investment activities 2,762

03/05/16 to 30/09/16£’000 £’000

Opening net assets attributable to shareholders –

Amounts receivable on issue of shares 36,625 Amounts payable on cancellation

of shares –36,625

Change in net assets attributable to shareholders from investment activities (see above) 2,762

Closing net assets attributable to shareholders 39,387

Statement of Change in Net Assets Attributable to Shareholders For the period ended 30 September 2016


Statement of Total ReturnFor the period ended 30 September 2016

43

30/09/16Note £’000 £’000

AssetsFixed assets:

Investments 38,397Current assets:

Debtors 7 1,624 Cash and bank balances 8 973

Total current assets 2,597Total assets 40,994LiabilitiesInvestment liabilities –Creditors:

Bank overdrafts 10 (3)Distribution payable (34)Other creditors 9 (1,570)

Total creditors (1,607)Total liabilities (1,607)Net assets attributable

to shareholders 39,387



44

1. Accounting Basis and PoliciesThe Fund’s Financial Statements have been prepared on the basis detailed on pages 11 to 19.

2. Net capital gains03/05/16 to

30/09/16£’000

The net capital gains during the period comprise:Currency losses (17)Forward currency contracts 13 Non-derivative securities 2,767 Transaction charges (1)Net capital gains 2,762

3. Revenue03/05/16 to

30/09/16£’000

Overseas dividends 104 Total revenue 104

4. Expenses03/05/16 to

30/09/16£’000


AMC fees 52 Rebate for fixed expenses (2)

50 Payable to the Depositary, associates of the

Depositary and agents of either of themDepositary fees 2

2 Other expensesAudit fees 7 Professional fees 2 Publication fees 2

11 Total expenses 63

Audit fees are £6,040 ex VAT.


Notes to the Financial StatementsFor the period ended 30 September 2016

45

5. Taxation

(a) Analysis of the tax charge in the period03/05/16 to

30/09/16£’000

Irrecoverable overseas tax 9Total taxation for the period (Note 5 (b)) 9

(b) Factors affecting the tax charge for the period

The tax assessed for the period is different from that calculated when the standard rate ofcorporation tax for an open ended investment company of 20% is applied to the net revenuebefore taxation. The differences are explained below:

03/05/16 to30/09/16

£’000

Net revenue before taxation 41 Net revenue for the period multiplied by

the standard rate of corporation tax 8 Effects of:Irrecoverable overseas tax 9 Movement in excess management expenses 12 Revenue not subject to corporation tax (20)Total tax charge for the period 9



There is no provision required for deferred taxation as at the Balance Sheet date in the currentperiod.

(d) Factors that may affect future tax charges

At the period end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £12,393 in relation to surplus management expenses. It is unlikely that the Fundwill generate sufficient taxable profits in the future to utilise this amount and therefore nodeferred tax asset has been recognised in the period.


Notes to the Financial Statements (continued)For the period ended 30 September 2016

46

6. Distributions


03/05/16 to30/09/16

£’000

Final 34 Deduct: Revenue received on creation of shares (2)Net distribution for the period 32Reconciliation of net revenue after taxation

to distributionsNet revenue after taxation 32 Net distribution for the period 32


7. Debtors30/09/16

£’000

Accrued revenue 95 Amounts receivable for creation of shares 1,529 Total debtors 1,624

8. Cash and bank balances30/09/16

£’000

Cash and bank balances 973 Total cash and bank balances 973



47

9. Other creditors30/09/16

£’000

Purchases awaiting settlement 1,5391,539

Accrued expensesManager and AgentsAMC fees 21

21 Depositary and AgentsDepositary fees 1 Transaction charges 1

2 Other accrued expensesAudit fees 7 Publication fees 1

8 Total other creditors 1,570

10. Bank overdrafts30/09/16

£’000

Bank overdrafts 3 Total bank overdrafts 3






As at the balance sheet date, the following had significant shareholdings within the Fund





48

12. Share Classes


%





Share Class A Income – 33,004,789 – – 33,004,789


There were no contingent liabilities or outstanding commitments as at the balance sheet date.




The table below shows the foreign currency risk profile as at the balance sheet date:

Net foreigncurrencyexposure

Currency £’000

30/09/16Australian Dollar 7,085 Hong Kong Dollar 3,564 Japanese Yen 20,379 Singapore Dollar 1,647 US Dollar 924Total foreign currency exposure 33,599 Sterling 5,788 Total net assets 39,387

If GBP to foreign currency exchange rates had strengthened/increased by 10% as at thebalance sheet date, the net asset value of the fund would have decreased by £3,054,000. IfGBP to foreign currency exchange rates had weakened/decreased by 10% as at the balancesheet date, the net asset value of the fund would have increased by £3,733,000. Thesecalculations assume all other variables remain constant.



49



The Fund does not invest in either fixed or floating rate securities and interest rate riskexposure is restricted to interest receivable on bank deposits or payable on bank overdraftpositions which will be affected by fluctuations in interest rates.

As at 30 September 2016, 2.47% of the Fund’s assets were interest bearing.


15. Portfolio transaction costs03/05/16 to 30/09/16

£’000 £’000

Analysis of total purchase costsPurchases in the period

before transaction costsEquities 34,066Collective investment schemes 33,759

67,825Commissions – Equities 1 Taxes – Equities 1Total purchase costs 2Gross purchase total 67,827

Analysis of total sale costsGross sales in the period

before transaction costsEquities 70 Collective investment schemes 32,129

32,199 Commissions – Equities –Total sale costs –Total sales net of transaction

costs 32,199

The portfolio transaction costs table above includes direct transaction costs suffered by theFund during the period.

Separately identifiable direct transaction costs (commissions and taxes etc.) are attributableto the Fund’s purchase and sale of equity shares. Additionally for equity shares there is adealing spread cost (the difference between the buying and selling prices) which will besuffered on purchase and sale transactions.




50

15. Portfolio transaction costs (continued)

03/05/16 to30/09/16

Transaction costs as percentage of principal amounts %

Purchases – CommissionsEquities 0.0029%Collective investment schemes 0.0000%

Purchases – TaxesEquities 0.0029%Collective investment schemes 0.0000%

Sales – CommissionsEquities 0.0000%Collective investment schemes 0.0000%

Sales – TaxesEquities 0.0000%Collective investment schemes 0.0000%

03/05/16 to30/09/16

Transaction costs as percentage of average net asset value %

Commissions 0.0059%Taxes 0.0059%

As at the balance sheet date the average portfolio dealing spread was 0.16%.


Subsequent to the period end, the Net Asset Value per Share of the Fund has increased usingthe Share prices at the period end date compared to 30 December 2016.

A Class Income Shares have increased from 119.72p to 120.43p. This takes into accountroutine transactions but also reflects the market movements.

There are no post balance sheet events which require adjustments at the period end.

17. Fair value disclosure30/09/16

Assets Liabilities £’000 £’000

Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 34,932 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly 3,465 –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – –

38,397 –



51




Group 1 Shares purchased prior to 3 May 2016Group 2 Shares purchased on or after 3 May 2016 to 30 September 2016

DistributionNet payable

revenue Equalisation 30/11/16(p) (p) (p)

Share Class A IncomeGroup 1 0.1022 – 0.1022Group 2 0.0981 0.0041 0.1022

Share Class A Income launched on 3 May 2016.

Omnis Developed Markets (ex-UK, ex-US) Equity Fund

52


The aim is to achieve capital growth.

Investment Policy

The Fund intends to invest primarily in companies incorporated in, or significantly exposed to,developed markets, excluding the United Kingdom and the United States of America. The Fund mayalso invest in other transferable securities (for example, other international equities which, for theavoidance of doubt, may include equities in the UK and US), units in collective investment schemes,money market instruments, warrants and deposits as detailed in the Prospectus. No more than10% of the Scheme Property of the Fund will be invested in other collective investment schemes.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives mayalso be used for the purposes of hedging and efficient portfolio management.

Investment Review

The review period saw increased volatility in financial markets, even as equity prices continued torise. The first half of the period was marked by growing fears about weaker global economic growth,which also pushed down energy and commodity prices to multi-year lows. Even as commodity pricesrecovered swiftly during the second half, the unexpected Brexit vote in the UK triggered heightenedvolatility for a short period. However, markets were calmed by assurances of continued monetarypolicy support from the European Central Bank (ECB) and the Bank of Japan, as well as the Fed’sdecision to delay its next rate hike. Global economic growth was weaker than expected during thefirst half of 2016, as trade volumes declined.

During the review period, investors were attracted to sectors that have a relatively stable earningsoutlook such as consumer staples and telecoms. Select segments in the technology sector, especiallyecommerce and related areas, found favour for their strong revenue and earnings growth outlook.The energy and materials sector were buoyed by the recovery in oil and commodity prices, whileseveral industrial sector stocks advanced on expectations of a recovery in demand.

Positive stock selection in seven out of ten GICS sectors, consumer durables and consumer staplesin particular, helped lift the Fund’s relative performance against the benchmark. The allocationeffect at the sector level was negative, as relatively lower exposures to financials, energy andmaterials hurt Fund performance. At the region level, stock selection was positive in Europe andJapan. Higher exposure to Europe, relative to the benchmark, helped the Fund, though part of thegains was offset by the lower weight in Asia ex-Japan.

Japanese drug distributor and convenience store operator Sundrug Co. Ltd. contributed the mostto Fund returns during the period, as the company continued to see healthy earnings growth. JapanTobacco benefited from positive revenue growth outlook in overseas markets, and an earningsboost achieved from efficiency measures. Japanese telecom carrier Nippon Telegraph andTelephone gained on consistent earnings growth and increased shareholder returns throughbuybacks.

The Fund’s financial holdings were hurt by the negative interest rate policies pursued by theEuropean and Japanese central banks. Detractors during the period including Japanese financialservices group Nomura Holdings as well as Italian lender Unicredit SpA. European pharmaceuticalsand chemicals manufacturer Bayer AG declined on concerns about its proposed $66 billionacquisition of plant seed supplier Monsanto Co.


53


Market Overview

Global economic growth should see moderate improvement in the second half of 2016, after theweaker than expected first six months. Low fuel prices and interest rates have supported bothbusiness and consumer sentiment in the developed world. Domestic demand remains the majordriver in the Eurozone, where weak external demand continues to limit export growth. TheInternational Monetary Fund has lifted its Eurozone growth estimates to 1.7% for 2016 and 1.5%for 2017. The forecast for Japanese economic growth has also been revised higher to 0.6% thisyear. Resource exporting countries such as Australia and Canada should benefit from this year’srebound in oil and commodity prices.

In the absence of complementary fiscal policy measures, it is not surprising that extraordinaryquantitative easing programs in the Eurozone and Japan have not delivered the desired results. Inaddition, negative interest rate policies have adversely affected their banks. In this scenario, it maybe difficult for the central banks to expand their bond purchases any further. The ECB has alreadywarned about the limits of its negative rate policy. At the same time, a reversal of current programsis also unlikely as growth and inflation rates remain well below targets.

Outlook

We remain optimistic about sustained moderate growth in domestic demand in major developedeconomies. Though oil prices have recovered, retail fuel prices are still relatively low when comparedto earlier years. Labour markets in most developed countries continue to tighten, though at a slowpace, and support average household disposable incomes. Though the effectiveness of aggressivemonetary policy measures is now questioned more frequently, they continue to have a positiveimpact on both business and consumer sentiment. Most governments are also in a better fiscalposition, when compared to earlier years, and the risk of lower public spending has eased. Webelieve these elements should continue to provide a favourable environment for domestic demandto expand further at a moderate pace in the Eurozone, and to a lesser extent in Japan.

Recently, we have increased our exposure to the telecommunications sector with the addition ofDeutsche Telecom, Japanese firm KDDI Corp, Australian carrier Telstra, as well as Spark NewZealand. We believe the sector should see further demand growth in high speed data, as well asincreased pricing power from industry consolidation. We added Japanese ecommerce group Rakutento take advantage of the continuing shift in consumer preference to online transactions. Check PointSoftware, which provides network security services and another recent purchase for the Fund, isalso well positioned to benefit from growth in internet-based businesses.

We have selectively increased exposure to the materials sector, though it is likely that the potentialfor further commodity price gains is limited. New purchases included Australian mining groups BHPBilliton and Rio Tinto, which are industry leaders. In our view, these companies have sufficient scaleand wider market reach that should allow them to maintain above-average margins, relative totheir competitors.

The Fund remains underweight financials, as we believe net interest margins for the bankingindustry in the Eurozone and Japan are likely to be constrained. Some of the larger banks in theEurozone face regulatory penalties, while the medium-sized banks in select European countries arestruggling with higher loan loss risks. During the review period the Fund sold BNP Paribas andSociété Générale in France, as well as Unicredit and Intesa Sanpaolo in Italy. Other disposals fromthe financials sector during the period included European insurance groups Munich Re, Sampo Oyj,NN Group NV and Ageas SA.

Investment ManagerThomas White International Ltd12 October 2016



54

A Income30/09/2016 30/09/2015 30/09/2014

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 93.68 96.42 100.00 Return before operating charges* 24.36 (0.45) (1.71)Operating charges (0.74) (0.71) (0.42)Return after operating charges 23.62 (1.16) (2.13)



PerformanceReturn after operating charges 25.21% (1.20%) (2.13%)



Distribution

Distribution


55









The Ongoing Charge Figure (OCF) is the ratio of the Fund’s total discloseable costs (excludingoverdraft interest) to the average net assets of the Fund.





Risk Warning






56


Australia 4.35% [0.00%]294,400 BHP Billiton 3,876 1.08 52,500 CSL 3,308 0.93

171,000 Rio Tinto 5,198 1.45 1,047,700 Telstra 3,197 0.89

15,579 4.35

Belgium 1.51% [2.86%]90,500 UCB 5,389 1.51

5,389 1.51

Canada 0.00% [2.78%]

Denmark 3.88% [1.80%]86,100 Danske Bank 1,933 0.54

128,400 Pandora 11,957 3.34 13,890 3.88

Finland 2.10% [2.10%]54,000 Huhtamaki 1,933 0.54

1,250,000 Nokia 5,575 1.56 7,508 2.10

France 11.04% [16.12%]122,250 Airbus 5,692 1.59 67,100 Cap Gemini 5,061 1.41 30,900 Christian Dior 4,264 1.19 34,200 Cie Generale des Etablissements Michelin 2,913 0.81 64,900 Eiffage 3,881 1.08 67,700 Safran 3,748 1.05 44,675 Sodexo 4,095 1.14

157,100 Total 5,731 1.60 93,600 Valeo 4,201 1.17

39,586 11.04

Germany 13.56% [12.70%]131,050 Bayer 10,131 2.83 24,100 Continental 3,900 1.09

270,400 Deutsche Telekom 3,488 0.97 73,050 Fresenius 4,483 1.25 35,700 Henkel Preference 3,732 1.04 44,100 Hochtief 4,782 1.34 99,000 ProSiebenSat.1 Media 3,270 0.91

140,600 SAP 9,848 2.75 54,800 Siemens 4,945 1.38

48,579 13.56

Hong Kong 8.20% [9.19%]1,559,000 AIA 7,977 2.23

900,774 CK Hutchison 8,811 2.46 4,195,000 Techtronic Industries 12,575 3.51

29,363 8.20


57



Ireland 2.07% [2.27%]133,500 CRH 3,419 0.95 381,745 Ryanair 4,021 1.12

7,440 2.07

Israel 1.11% [0.81%]794,000 Bezeq The Israeli Telecommunication 1,153 0.32 21,000 Check Point Software Technologies 1,255 0.35 21,400 Elbit Systems 1,571 0.44

3,979 1.11

Italy 0.00% [2.76%]

Japan 30.52% [25.27%]743,200 Astellas Pharma 8,876 2.48 146,000 Honda Motor 3,199 0.89 225,200 Hoya 6,901 1.93 327,600 Japan Tobacco 10,255 2.86 365,700 Kansai Paint 6,122 1.71 212,900 KDDI 5,040 1.41

3,307,900 Mizuho Financial 4,237 1.18 344,200 Nippon Telegraph & Telephone 12,073 3.37 497,400 Nissan Motor 3,715 1.04 44,000 Nitori 4,024 1.12

516,700 Nomura 1,752 0.50 591,600 Orix 6,643 1.86 411,300 Rakuten 4,096 1.14 533,500 Sekisui House 6,937 1.94 136,100 SoftBank 6,736 1.88 117,900 Sundrug 7,556 2.11 40,500 TDK 2,060 0.58

200,700 Tokio Marine 5,850 1.63 67,100 West Japan Railway 3,180 0.89

109,252 30.52

Netherlands 9.90% [6.01%]52,900 Heineken 3,584 1.00

306,600 ING 2,915 0.81 519,717 Koninklijke Ahold Delhaize 9,123 2.55 229,200 Koninklijke Philips 5,226 1.47 369,751 RELX 5,117 1.44 264,800 Unilever 9,409 2.63

35,374 9.90

New Zealand 0.93% [0.00%]1,645,831 Spark New Zealand 3,326 0.93

3,326 0.93



58


Norway 0.00% [0.72%]

Portugal 0.96% [0.00%]326,600 Galp Energia SGPS 3,437 0.96

3,437 0.96

Singapore 0.00% [1.34%]

Spain 1.32% [2.30%]285,200 Grifols 4,731 1.32

4,731 1.32

Sweden 3.24% [1.34%]419,300 Husqvarna 2,817 0.79 310,500 Swedish Match 8,777 2.45

11,594 3.24

Switzerland 5.21% [8.05%]44,425 Roche 8,499 2.37 20,900 Swiss Life 4,173 1.17 59,400 Swiss Re 4,127 1.15

177,100 UBS 1,859 0.52 18,658 5.21





Gross purchases for the year: £163,201,000 [2015: £221,545,000]. (See Note 15).



59


01/10/15 to 30/09/16 01/10/14 to 30/09/15Note £’000 £’000 £’000 £’000

Income:Net capital gains/(losses) 2 65,568 (11,900)Revenue 3 8,632 5,132 Expenses 4 (2,233) (1,403)Interest payable and similar charges 5 (1) (1)

Net revenue before taxation 6,398 3,728 Taxation 6 (644) (362)Net revenue after taxation 5,754 3,366 Total return before distributions 71,322 (8,534)Distributions 7 (5,754) (3,366)Change in net assets attributable to

shareholders from investment activities 65,568 (11,900)

01/10/15 to 30/09/16 01/10/14 to 30/09/15£’000 £’000 £’000 £’000


Amounts receivable on issue of Shares 53,991 147,983 Amounts payable on cancellation

of Shares (14,653) (494)39,338 147,489

Dilution adjustment 16 –Change in net assets attributable

to Shareholders from investment activities (see above) 65,568 (11,900)





60

30/09/16 30/09/15Note £’000 £’000 £’000 £’000

Assets:Fixed assets:

Investments 357,685 249,121 Current assets:


Total current assets 5,606 8,932 Total assets 363,291 258,053 Liabilities:

Investment liabilities – –Creditors:

Distribution payable (4,916) (2,706)Other creditors 10 (344) (2,238)


to Shareholders 358,031 253,109


61




2. Net capital gains/(losses)01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000

The net capital gains/(losses) during the year comprise:Currency losses (140) (310)Forward currency contracts 33 –Non-derivative securities 65,678 (11,584)Transaction charges (3) (6)Net capital gains/(losses) 65,568 (11,900)

3. Revenue01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000

Bank interest 3 8 Overseas dividends 8,629 5,124 Total revenue 8,632 5,132

4. Expenses01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000


AMC fees 2,052 1,287 2,052 1,287

Payable to the Depositary, associates of theDepositary and agents of either of them

Depositary fees 83 54 Safe custody fees 75 44

158 98 Other expensesAudit fees 9 9 Professional fees 12 4 Publication fees 1 5 Custodian out of pocket expenses 1 –

23 18 Total expenses 2,233 1,403


Notes to the Financial StatementsFor the year ended 30 September 2016


62

5. Interest payable and similar charges

01/10/15 to 01/10/14 to 30/09/16 30/09/15

£’000 £’000

Interest 1 1 Total interest payable and similar charges 1 1

6. Taxation


30/09/16 30/09/15 £’000 £’000

Irrecoverable overseas tax 644 362 Total taxation for the year (Note 6 (b)) 644 362



01/10/15 to 01/10/14 to 30/09/16 30/09/15

£’000 £’000

Net revenue before taxation 6,398 3,728 Net revenue for the year multiplied by the

standard rate of corporation tax 1,280 746 Effects of:Irrecoverable overseas tax 644 –Movement in excess management expenses 414 282 Overseas tax expensed (6) 362 Revenue not subject to corporation tax (1,688) (1,028)Total tax charge for the year 644 362



There is no provision required for deferred taxation as at the Balance Sheet date in the currentyear or prior period.


At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £752,159 (2015: £338,035) in relation to surplus management expenses. It isunlikely that the Fund will generate sufficient taxable profits in the future to utilise this amountand therefore no deferred tax asset has been recognised in the year.


63



7. Distributions


01/10/15 to 01/10/14 to 30/09/16 30/09/15

£’000 £’000

Interim 767 1,152 Final 4,916 2,706 Add: Revenue paid on cancellation of Shares 142 1 Deduct: Revenue received on creation of Shares (71) (493)Net distribution for the year 5,754 3,366


Net revenue after taxation 5,754 3,366 Net distribution for the year 5,754 3,366


8. Debtors30/09/16 30/09/15

£’000 £’000

Accrued revenue 1,123 742 Amounts receivable for creation of shares 454 1,988 Overseas withholding tax recoverable 584 211 Sales awaiting settlement 14 –Prepaid expenses 1 1 Total debtors 2,176 2,942


£’000 £’000



64


10. Other creditors30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares 122 –Dilution adjustment payable 1 –Purchases awaiting settlement – 2,051

123 2,051 Accrued expensesManager and AgentsAMC fees 190 135

190 135 Depositary and AgentsDepositary fees 8 5 Safe custody fees 13 32 Transaction charges – 4

21 41 Other accrued expensesAudit fees 9 9 Publication fees 1 2

10 11 Total other creditors 344 2,238





Significant Shareholdings




65



12. Share Classes


%





Share Class A Income 270,195,676 53,611,929 (13,744,214) – 310,063,391








Net foreign currency exposure30/09/16 30/09/15

Currency £’000 £’000

Australian Dollar 15,607 –Canadian Dollar – 7,059 Danish Krone 13,932 4,573 Euro 152,579 119,508 Hong Kong Dollar 29,363 23,388 Israeli Sheqel 2,757 (5)Japanese Yen 110,222 64,597 New Zealand Dollar 3,443 –Norwegian Krone 7 1,818 Singapore Dollar – 3,395 Swedish Krona 11,596 3,399 Swiss Franc 18,762 20,405 US Dollar 1,255 –Total foreign currency exposure 359,523 248,137Sterling (1,492) 4,972 Total net assets 358,031 253,109


66



(a) Foreign currency risk (continued)

If GBP to foreign currency exchange rates had strengthened/increased by 10% as at thebalance sheet date, the net asset value of the fund would have decreased by £32,684,000(2015: decreased by £22,558,000). If GBP to foreign currency exchange rates hadweakened/decreased by 10% as at the balance sheet date, the net asset value of the fundwould have increased by £39,947,000 (2015: increased by £27,571,000). These calculationsassume all other variables remain constant.



As at 30 September 2016, 0.96% of the Fund’s assets were interest bearing (2015: 2.37%).

Changes in interest rates would have no material impact to the valuation of floating ratefinancial assets or liabilities as at the balance sheet date. Consequently, no sensitivity analysishas been presented.


£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the year before transaction costs:Equities 162,918 221,079

162,918 221,079 Commissions – Equities 230 312 Taxes – Equities 53 154Total purchase costs 283 466Gross purchase total 163,201 221,545

Analysis of total sale costsGross sales in the year before

transaction costs:Equities 119,508 77,531

119,508 77,531 Commissions – Equities (167) (109)Taxes – Equities (3) (5)Total sale costs (170) (114)Total sales net of transaction

costs 119,338 77,417



67



15. Portfolio transaction costs (continued)01/10/15 to 01/10/14 to

30/09/16 30/09/15Transaction costs as percentage of principal amounts % %

Purchases – CommissionsEquities 0.1412% 0.1411%

Purchases – TaxesEquities 0.0325% 0.0692%

Sales – CommissionsEquities 0.1397% 0.1406%

Sales – TaxesEquities 0.0025% 0.0077%

01/10/15 to 01/10/14 to 30/09/16 30/09/15





Subsequent to the year end, the Net Asset Value per Share of the Fund has increased usingthe Share prices at the year end date compared to 30 December 2016.





Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 357,685 – 249,121 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly – – – –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – – – –

357,685 – 249,121 –


68







Final Distribution in pence per Share





69

Omnis Emerging Markets Equity Fund



Investment Policy

The Fund intends to invest primarily in companies incorporated in, or significantly exposed to,emerging markets. The Fund may also invest in other transferable securities (for example, otherinternational equities), units in collective investment schemes, money market instruments, warrantsand deposits as detailed in the Prospectus. No more than 10% of the Scheme Property of the Fundwill be invested in other collective investment schemes.


Investment Review

During a year of significant volatility, dominated latterly by a rally in emerging markets assets fromextremely low valuations, the fund made strong gains. It is always worth repeating that our country,stock and sector allocations are a function of where the global emerging markets team identifiescompelling businesses that are attractively valued, and that we do not construct the portfolio basedon any country or sector views.

Performance was driven by positive stock selection across all market cap segments, but particularlywithin medium cap and, to a lesser extent, small cap stocks, areas where we continue to find manyexamples of businesses that are benefiting from structural change which is not reflected in theirstock price.

A key contributor to performance over the year has been Brazilian private education company SerEducacional. Following a difficult period in which negative political news dominated investorsentiment in the Brazilian education sector, and in Brazil generally, investor concerns lifted and themarket began to recognise that against a background of secular growth in education spending inBrazil, Ser’s low valuation did not reflect its strong long-term growth outlook and low debt levels.Following a significant re-rating (the stock is up more than 215% this year), we trimmed theposition, and increased our holding in its rival Kroton following an acquisition which we believe willbe positive for a business that we believe is still undervalued by the market.

China’s New Oriental Education was another major contributor to performance. Also operating inan emerging education sector undergoing a period of secular growth, the company has achievedstrong growth by successfully positioning itself as the leading provider of private education in asociety which increasingly emphasises a high quality of education. The company’s impressive onlineoffering helps differentiate it from its competitors. We first bought stock in the company in 2015following some short-term issues that made its share price attractive, and the stock re-rated stronglylater in the year as the market’s view of the company’s strength began to align with ours. Thebusiness has performed well, seeing strong growth in student enrolments and cost controls, andrallied in 2016 on the back of strong results led by earnings growth of 19% over the past 12 months.We continue to like the story as the sector is deeply underpenetrated, but trimmed our position asthe stock came closer to our estimate of its fair value.

Among the negatives was Boer Power, a Hong Kong-listed energy efficiency solution provider, aposition we have now closed. We continue to believe that Boer’s product is competitive, but theincreasing risks to the business from the slow payment of debts owed by its customers (now


70


reflected differently in its accounts and negatively impacting investor sentiment) and the challengesof competing for new business mean that our conviction in the potential for share price growth hassomewhat diminished.

Outlook

After several challenging years for emerging markets (EM), 2016 is so far proving to be a year ofrecovery. From 2013, three straight years of outflows from emerging market equity funds droveweakness in the asset class. Three main concerns weighed on sentiment: the impact of weakeningEM currencies, risks to Chinese economic growth and fears about US monetary policy tightening.

On the first point, we have seen signs of stabilisation in key EM currencies over the past year, whichhas helped to ease some of the pressures emerging economies were facing. As these currencieshave stabilised at levels well below those of a few years ago, emerging market exporters aregenerally more competitive.

For China, some of the risks have lessened. For example, a number of Chinese companies thatwere previously borrowing in foreign currency – often inappropriately in our view – have refinancedin local currency. We see that as a positive development. However, overall levels of debt in Chinaremain a challenge. In fact, we are only able to identify one Chinese bank – Bank of China – wherewe feel positive changes to the business and a low valuation make up for the risk of a potentialincrease in bad loans. However, looking beyond the challenges posed by the high levels of debt, itis encouraging that we see continued growth in services as a driver of the Chinese economy as thisis an important step towards longer-term economic stability.

Finally, we are not overly concerned about a potential US rate hike. This has been a focus of themarket for so long, that it is likely to be largely reflected in share prices already.

These are all top down observations, which we believe go some way to explaining the recovery wehave so far seen this year in emerging market equities. But, as always, we care more about thebottom-up picture. What can we learn from speaking to company management, going out andmeeting companies in their home markets and doing fundamental research? Our view is thatfocusing on companies and the medium to long-term opportunities for stocks is the most sustainableway to try to add value.

Although we have seen a meaningful recovery in emerging markets already this year, starting froma very low base means valuations are still attractive relative to company earnings and book values.On both these metrics, emerging market equities trade at significant discounts to developedmarkets.

We continue to monitor existing holdings to ensure that we still have an investment case that differsto consensus thinking, as well as looking for new stock ideas where we believe positive change isnot yet reflected in the share price. For us, the single best gauge of how attractive emerging marketsare continues to be the number and types of ideas that we can identify and as of today there iscertainly no shortage of stocks where we want to invest.

Investment ManagerJupiter Asset Management Limited14 October 2016


Investment Review (continued)

71


A Income30/09/2016 30/09/2015 30/09/2014

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 89.09 102.61 100.00Return before operating charges* 42.70 (11.38) 4.28Operating charges (0.95) (0.97) (0.63)Return after operating charges 41.75 (12.35) 3.65



PerformanceReturn after operating charges 46.86% (12.04%) 3.65%




72











• The Fund appears as “6” on the scale. This is because the Fund invests in the shares ofcompanies whose values tend to vary more widely than other asset classes.

Risk Warning








73



Brazil 9.68% [5.72%]189,800 Cia Brasileira de Distribuicao Preference Shares 2,388 1.04735,490 Itau Unibanco Preference Shares 6,190 2.691,021,400 Kroton Educacional 3,580 1.552,598,800 Mills Estruturas e Servicos de Engenharia 2,759 1.203,756,167 Randon Implementos e Participacoes Preference Shares 4,103 1.78803,550 Ser Educacional 3,284 1.42

22,304 9.68

Canada 1.37% [0.75%]497,000 First Quantum Minerals 3,162 1.37

3,162 1.37

China 20.16% [20.31%]3,806,000 3SBio 3,317 1.4427,100 Baidu ADR* 3,798 1.6512,122,000 Bank of China 4,247 1.842,997,000 Boer Power 1,047 0.45246,224 China Distance Education ADR* 2,447 1.061,267,000 China Life Insurance 2,515 1.097,896,000 China Petroleum & Chemical 4,420 1.92286,208 Hollysys Automation Technologies 4,885 2.12130,700 JD.com ADR* 2,625 1.144,562,000 Lenovo 2,323 1.013,610,500 Longfor Properties 4,265 1.8519,571 NetEase ADR* 3,628 1.5685,100 New Oriental Education & Technology ADR* 3,036 1.32348,800 Vipshop ADR* 3,936 1.71

46,489 20.16

Egypt 1.44% [1.80%]1,091,067 Commercial International Bank Egypt GDR** 3,314 1.44

3,314 1.44

Hong Kong 2.11% [3.69%]5,252,000 China Unicom Hong Kong 4,853 2.11

4,853 2.11

India 11.77% [8.04%]1,381,014 Hindustan Petroleum 6,818 2.96275,346 InterGlobe Aviation 2,923 1.271,961,779 Oriental Bank of Commerce 2,847 1.23102,297 State Bank of India GDR** 2,933 1.27499,048 Syngene International 2,739 1.19190,900 Tata Motors ADR* 5,875 2.55158,539 Torrent Pharmaceuticals 2,989 1.30

27,124 11.77


74



Indonesia 4.13% [3.58%]12,237,900 Bank Negara Indonesia Persero 4,006 1.7442,612,400 Bumi Serpong Damai 5,505 2.39

9,511 4.13

Malaysia 1.02% [1.19%]10,651,400 UEM Sunrise 2,340 1.02

2,340 1.02

Mexico 2.59% [6.76%]2,528,500 Fibra Uno Administracion*** 3,565 1.55337,400 Fomento Economico Mexicano 2,394 1.04

5,959 2.59

Nigeria 0.76% [1.33%]132,687,768Access Bank 1,774 0.76

1,774 0.76

Panama 1.67% [0.92%]57,039 Copa 3,861 1.67

3,861 1.67

Peru 0.00% [1.48%]

Philippines 1.35% [0.00%]135,820 GT Capital 3,105 1.35

3,105 1.35

Russia 3.86% [5.70%]19,522 Magnit 2,491 1.08318,264 MMC Norilsk Nickel ADR* 3,923 1.7029,591 Novatek GDR** 2,501 1.08

8,915 3.86

South Africa 6.56% [4.87%]1,875,759 Ascendis Health 2,955 1.28383,172 MTN 2,520 1.0944,513 Naspers 5,919 2.57175,391 Tiger Brands 3,733 1.62

15,127 6.56

South Korea 12.59% [15.94%]55,500 Hyundai Motor Preference Shares 4,093 1.7735,696 LG Chem Preference Shares 4,104 1.783,485 LG Household & Health Care 2,326 1.015,221 Samsung Electronics GDR** 2,904 1.269,584 Samsung Electronics Preference Shares 8,622 3.74248,354 SK Hynix 6,979 3.03

29,028 12.59


75



Taiwan 10.42% [9.09%]3,670,000 Advanced Semiconductor Engineering 3,388 1.471,837,000 Chroma ATE 3,803 1.65480,000 Ginko International 3,660 1.59577,000 MediaTek 3,394 1.47877,000 Merida Industry 3,187 1.38280,600 Taiwan Semiconductor Manufacturing ADR* 6,608 2.86

24,040 10.42

Turkey 1.63% [1.58%]683,064 Ulker Biskuvi Sanayi 3,747 1.63

3,747 1.63

United Arab Emirates 1.45% [1.27%]11,758,335 Air Arabia 3,352 1.45

3,352 1.45

United Kingdom 2.94% [0.00%]119,968 BGEO 3,484 1.51240,211 NMC Health 3,291 1.43

6,775 2.94

United States 2.86% [2.24%]892,027 Bizlink 3,571 1.55255,576 Eros International 3,012 1.31

6,583 2.86

Portfolio of investments 231,363 100.36Net other liabilities (830) (0.36)Net assets 230,533 100.00




* American Depositary Receipt.

** Global Depositary Receipt.

*** Real Estate Investment Trust.

Gross purchases for the year: £88,294,000 [2015: £163,979,000]. (See Note 15).



76


01/10/15 to 30/09/16 01/10/14 to 30/09/15Note £’000 £’000 £’000 £’000

IncomeNet capital gains/(losses) 2 70,785 (20,665)Revenue 3 4,615 2,544Expenses 4 (1,599) (923)Interest payable and similar charges 5 (1) (1)

Net revenue before taxation 3,015 1,620Taxation 6 (416) (406)Net revenue after taxation 2,599 1,214Total return before distributions 73,384 (19,451)Distributions 7 (2,625) (1,345)Change in net assets

attributable to Shareholdersfrom investment activities 70,759 (20,796)

01/10/15 to 30/09/16 01/10/14 to 30/09/15£’000 £’000 £’000 £’000


Amounts receivable on issue of Shares 42,102 85,747Amounts payable on cancellation

of Shares (11,686) (305)30,416 85,442

Change in net assets attributableto Shareholders from investmentactivities (see above) 70,759 (20,796)

Closing net assets attributableto Shareholders 230,533 129,358

Statement of Change in Net Assets Attributable to ShareholdersFor the year ended 30 September 2016


77



30/09/16 30/09/15Note £’000 £’000 £’000 £’000

AssetsFixed assets:


Debtors 8 1,010 5,132Cash and bank balances 9 308 2,574

Total current assets 1,318 7,706Total assets 232,681 132,226Liabilities:Investment liabilities – –Creditors:

Distribution payable (1,874) (1,508)Other creditors 10 (274) (1,360)



78




30/09/16 30/09/15 £’000 £’000

The net capital gains/(losses) during the year comprise:

Currency losses (245) (133)Forward currency contracts 134 –Non-derivative securities 70,928 (20,488)Transaction charges (32) (44)Net capital gains/(losses) 70,785 (20,665)

3. Revenue01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000

Bank interest 1 5Overseas dividends 4,518 2,516UK dividends 95 23Stock lending income 1 –Total revenue 4,615 2,544

4. Expenses01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000


AMC fees 1,330 7871,330 787


Depositary fees 47 31Safe custody fees 151 80

198 111Other expensesAudit fees 9 9Professional fees 15 7Publication fees 1 4Custodian out of pocket expenses 20 5ADR fees 26 –

71 25Total expenses 1,599 923Audit fees are £7,550 ex VAT (2015: £7,350).


79



30/09/16 30/09/15 £’000 £’000

Interest 1 1Total interest payable and similar charges 1 1

6. Taxation


30/09/16 30/09/15 £’000 £’000

Irrecoverable overseas tax 416 284Overseas capital gains tax – 122Total taxation for the year (Note 6 (b)) 416 406



01/10/15 to 01/10/14 to 30/09/16 30/09/15

£’000 £’000

Net revenue before taxation 3,015 1,620Net revenue for the year multiplied

by the standard rate of corporation tax 603 324Effects of:Irrecoverable overseas tax 416 284Movement in excess management expenses 156 148Overseas capital gains tax in capital – 122Overseas tax expensed (12) (4)Revenue not subject to corporation tax (747) (484)Capital gains on offshore funds – 16Total tax charge for the year 416 406







80


7. Distributions


01/10/15 to 01/10/14 to 30/09/16 30/09/15

£’000 £’000

Interim 747 132Final 1,874 1,508Add: Revenue paid on cancellation of Shares 67 –Deduct: Revenue received on creation of Shares (63) (295)Net distribution for the year 2,625 1,345


Net revenue after taxation 2,599 1,214Tax relief from capital – 8Capital gains tax 26 123Net distribution for the year 2,625 1,345


8. Debtors30/09/16 30/09/15

£’000 £’000

Accrued revenue 20 116Amounts receivable for creation of shares 989 3,387Sales awaiting settlement - 1,628Prepaid expenses 1 1Total debtors 1,010 5,132


£’000 £’000

Cash and bank balances 308 2,574Total cash and bank balances 308 2,574


81


10. Other creditors30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares 83 –Purchases awaiting settlement – 1,175

83 1,175Accrued expensesManager and AgentsAMC fees 141 76

141 76Depositary and AgentsDepositary fees 5 2Safe custody fees 32 62Transaction charges 3 34


10 11Total other creditors 274 1,360






As at the balance sheet date, the following had significant Shareholdings within the Fund:




82


12. Share Classes


%











83








Brazilian Real 22,307 7,301Canadian Dollar 3,161 975Hong Kong Dollar 27,052 18,642Indian Rupee 18,316 6,432Indonesian Rupiah 9,511 4,529Malaysian Ringgit 2,339 1,536Mexican Peso 5,959 8,754Nigerian Naira 1,847 1,720Philippine Peso 3,105 –Russian Ruble 2,508 –South African Rand 15,127 6,303South Korean Won 26,124 18,177Taiwan Dollar 21,005 10,630Thai Baht – 1,183Turkish Lira 3,747 2,047UAE Dirham 3,352 –US Dollar 59,286 36,368Total foreign currency exposure 224,746 124,597Sterling 5,787 4,761Total net assets 230,533 129,358





Changes in interest rates would have no material impact to the valuation of floating ratefinancial assets or liabilities as at the balance sheet date. Consequently, no sensitivity analysishas been presented.


84



£’000 £’000 £’000 £’000


before transaction costs:Equities 88,129 163,697

88,129 163,697Commissions – Equities 96 207Taxes – Equities 69 75Total purchase costs 165 282Gross purchase total 88,294 163,979

Analysis of total sale costsGross sales in the year


52,481 80,676Commissions – Equities (82) (119)Taxes – Equities (41) (69)Total sale costs (123) (188)Total sales net of transaction

costs 52,358 80,488The portfolio transaction costs table above includes direct transaction costs suffered by theFund during the year.


01/10/15 to 01/10/14 to30/09/16 30/09/15

Transaction costs as percentage of principal amounts % %





01/10/15 to 01/10/14 to30/09/16 30/09/15






85








Assets Liabilities Assets Liabilities£’000 £’000 £’000 £’000

Valuation techniqueLevel 1: The unadjusted quotedprice in an active market foridentical assets or liabilities 231,363 – 124,520 –Level 2: Inputs other than quotedprices included within Level 1 thatare observable for the asset orliability, either directly or indirectly – – – –Level 3: Inputs are unobservable(ie for which market data isunavailable) for the asset or liability – – – –

231,363 – 124,520 –

86













87

Omnis European Equity Fund


The aim of the Fund is to provide capital growth.

Investment Policy

The Fund intends to invest primarily in equities issued by companies incorporated in or havingsignificant operations in Europe, excluding the United Kingdom. The Fund may invest in othertransferable securities such as warrants and deposits, and may also invest in money marketinstruments and units in collective investment schemes. No more than 10% of the Property of theFund will be invested in other collective investment schemes.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives mayalso be used for the purposes of hedging and efficient portfolio management. It is not anticipatedthat such use of derivatives will have a significant effect on the risk profile of the Fund.

Investment Review

The Omnis European Equity mandate was initiated on 3rd May 2016.

European equities continued to trade within a narrow range in May, while the sterling/euro marketsremained volatile. Markets were rocked in June by the United Kingdom’s vote to leave the EuropeanUnion, which seemed to come as a surprise to investors and commentators around the world. Thisexacerbated a situation in European markets that was already apparent at the beginning of theyear. Firstly, miners and oil majors have been sharply recovering after steep declines in 2015.Secondly, market participants continued to crowd into sectors believed to offer defensive growth,such as food and beverages. The relative valuations of these sectors, driven by technicalconsiderations, now stand at highs even beyond those seen at the peak of the euro crisis. Ourdiscipline of avoiding chasing momentum and our focus on quality at a reasonable price has led usto have limited exposure to these sectors.

Q3 was a good reporting season for the portfolio. Among this quarter’s biggest contributors torelative performance were Valeo, SAP, Infineon, and ING Groep. The first three are technologynames, each benefiting from mega-trends such as digitalisation, electrification of vehicles,autonomous driving, and lower emissions. ING Groep – now the only bank in the portfolio –benefited from a sharp year-on-year rise in income in Q2, due to a decline in bad loan provisionsand to a rise in net interest income as a result of a growing lending book.

We remained overweight the pharmaceutical sector, and remained underweight consumer staples,where we believe valuations are too steep. Overall, health care has been a tough sector to be in.We took some money out of Bayer, which detracted from relative performance. The companyannounced that it had agreed to acquire Monsanto at a price of USD128 per share, representing a44% premium to Monsanto’s undisturbed share price of USD89. We understand the rationale forthe deal and see the potential for synergies, but also have some concerns over the financing of thedeal, and as such felt it was appropriate to reduce our active position.

Within cyclicals, we remained overweight technology, but took some money out of Infineon, whichhit a multi-year high over the course of September, following positive analyst coverage and M&Aspeculation. New positions in the portfolio this quarter include Flow Traders and Spie.


88


Outlook

We believe that current market distortions make it more important than ever to remain disciplinedabout picking stocks on the basis of sound valuation and liquidity measures, rather than gettingcarried away by market momentum and attempted macro calls. As ever, our focus remains onquality businesses with sustainable free cash flow generation, and strong balance sheets, wherethese can be bought at reasonable prices. We believe this makes us well placed to withstandeconomic and market shocks that may lie ahead.

Investment ManagerJupiter Asset Management Limited14 October 2016

Investment Manager’s Report (continued)For the period ended 30 September 2016

89


A Income30/09/2016

(p)

Change in net assets per ShareOpening net asset value per share 100.00**Return before operating charges* 12.32 Operating charges (0.40)Return after operating charges 11.92

Distributions –Closing net asset value per share 111.92

* after direct transaction costs of: 0.23

PerformanceReturn after operating charges 11.92%

Other informationClosing net asset value (£’000) 18,483Closing number of shares 16,514,942Operating charges 0.90%Direct transaction costs 0.22%

Prices (p)Highest share price 112.94Lowest share price 97.84

** Share class A Income launched on 3 May 2016 at a price of 100 pence.


90











Risk Warning







91



Austria 1.99% 8,765 Andritz 368 1.99

368 1.99

Belgium 1.45% 5,565 Umicore 268 1.45

268 1.45

Denmark 7.85% 7,219 DONG Energy 230 1.24

10,533 ISS 336 1.82 12,295 Novo Nordisk 394 2.13 5,277 Pandora 491 2.66

1,451 7.85

Finland 3.52% 145,855 Nokia 650 3.52

650 3.52

France 22.18% 6,880 Amundi 277 1.50

16,104 Bureau Veritas 266 1.44 19,086 Edenred 343 1.86 16,147 Eutelsat Communications 257 1.39 3,191 Iliad 515 2.79 8,248 Publicis 480 2.60 5,687 Safran 315 1.70

14,916 SPIE 229 1.24 18,905 Television Francaise 1 141 0.76 10,398 Valeo 467 2.53 10,419 Vinci 614 3.32 10,342 Zodiac Aerospace 194 1.05

4,098 22.18

Germany 19.17% 4,417 Bayer 341 1.84

11,516 Brenntag 485 2.62 1,657 Continental 268 1.45 8,079 Fresenius Medical Care 543 2.94 4,589 Gerresheimer 300 1.62 5,170 Hugo Boss 220 1.19

22,750 Infineon Technologies 312 1.69 11,909 ProSiebenSat.1 Media 393 2.13 9,732 SAP 682 3.69

3,544 19.17

Ireland 2.98% 52,235 Ryanair 550 2.98

550 2.98


92



Luxembourg 1.27% 21,313 Tenaris 234 1.27

234 1.27Netherlands 12.09%

17,854 Altice 246 1.33 3,586 ASML 303 1.64 6,909 Euronext 227 1.23 9,507 Flow Traders 222 1.20

11,138 GrandVision 239 1.29 7,429 Heineken 503 2.72

52,062 ING 495 2.68 2,235 12.09

Spain 1.61% 7,746 Amadeus IT 298 1.61

298 1.61 Sweden 3.15%

25,471 Svenska Cellulosa 582 3.15 582 3.15

Switzerland 13.47% 3,246 Actelion 433 2.34 5,527 Cie Financiere Richemont 260 1.41

10,488 Novartis 636 3.44 3,490 Roche 668 3.61

61 Sika 229 1.24 784 Syngenta 265 1.43

2,491 13.47United Kingdom 1.30%

17,415 RELX 241 1.30 241 1.30

Portfolio of investments 17,010 92.03Net other assets 1,473 7.97Net assets 18,483 100.00



Gross purchases for the period: £25,571,000 (See Note 14).

Total sales net of transaction costs for the period: £9,523,000 (See Note 14).


93


03/05/16 to 30/09/16Note £’000 £’000

IncomeNet capital gains 2 1,011 Revenue 3 31 Expenses 4 (35)

Net (expense) before taxation (4)Taxation 5 (3)Net (expense) after taxation (7)Total return before distributions 1,004 Distributions 6 1 Change in net assets


03/05/16 to 30/09/16£’000 £’000

Opening net assets attributable to Shareholders –

Amounts receivable on issue of Shares 17,478 Amounts payable on cancellation

of Shares –17,478

Change in net assets attributable to Shareholders from investment activities (see above) 1,005

Closing net assets attributable to Shareholders 18,483



94


30/09/16Note £’000 £’000

AssetsFixed assets:

Investments 17,010 Current assets:

Debtors 7 859 Cash and bank balances 8 670

Total current assets 1,529 Total assets 18,539 LiabilitiesInvestment liabilities –Creditors:

Other creditors 9 (56)Total creditors (56)Total liabilities (56)Net assets attributable

to Shareholders 18,483


95


1. Accounting Basis And PoliciesThe Fund’s Financial Statements have been prepared on the basis detailed on pages 11 to 19.


30/09/16 £’000

The net capital gains during the period comprise:Currency gains 50Non-derivative securities 962Transaction charges (1)Net capital gains 1,011


30/09/16£’000

Overseas dividends 23 Rebates received from underlying funds 8 Total revenue 31


30/09/16£’000

Payable to the ACD, associates of the ACD, andagents of either of them

AMC fees 24 Rebate for fixed expenses (2)

22Payable to the Depositary, associates of the

Depositary and agents of either of themDepositary fees 1

1 Other expensesAudit fees 7Professional fees 3Publication fees 2

12Total expenses 35



96


5. Taxation


30/09/16 £’000

Irrecoverable overseas tax 3 Total taxation for the period (Note 5 (b)) 3


The tax assessed for the period is different from that calculated when the standard rate ofcorporation tax for an open ended investment company of 20% is applied to the net(expense) before taxation. The differences are explained below:

03/05/16 to30/09/16

£’000

Net (expense) before taxation (4)Net (expense) for the period multiplied by

the standard rate of corporation tax (1)Effects of:Irrecoverable overseas tax 3 Movement in excess management expenses 5 Revenue not subject to corporation tax (4)Total tax charge for the period 3







97


6. Distributions


03/05/16 to 30/09/16

£’000

Final –Deduct: Revenue received on creation of Shares (1)Net distribution for the period (1)Reconciliation of net expense

after taxation to distributionsNet expense after taxation (7)Revenue deficit 6 Net distribution for the period (1)


7. Debtors30/09/16

£’000

Amounts due for rebates from underlying funds 1Amounts receivable for creation of shares 725Overseas withholding tax recoverable 2Sales awaiting settlement 131Total debtors 859


£’000

Cash and bank balances 670Total cash and bank balances 670


98



£’000

Purchases awaiting settlement 36 36

Accrued expensesManager and AgentsAMC fees 10

10Depositary and AgentsTransaction charges 1

1Other accrued expensesAudit fees 7 Publication fees 2

9 Total other creditors 56






As at the balance sheet date, the following had significant shareholdings within the Fund



11. Share Classes


%





Share Class A Income – 16,514,942 – – 16,514,942


99









Net foreigncurrencyexposure

30/09/16Currency £’000

Danish Krone 1,415 Euro 12,618 Swedish Krona 582 Swiss Franc 2,492 Total foreign currency exposure 17,107 Sterling 1,376 Total net assets 18,483

If GBP to foreign currency exchange rates had strengthened/increased by 10% as at thebalance sheet date, the net asset value of the fund would have decreased by £1,555,000. IfGBP to foreign currency exchange rates had weakened/decreased by 10% as at the balancesheet date, the net asset value of the fund would have increased by £1,901,000. Thesecalculations assume all other variables remain constant.






100



£’000 £’000


before transaction costsEquities 16,946Collective Investment Schemes 8,608

25,554Commissions – Equities 4 Taxes – Equities 13 Total purchase costs 17Gross purchase total 25,571


before transaction costsEquities 427Collective Investment Schemes 9,096

9,523Total sale costs –Total sales net of transaction

costs 9,523





101



03/05/16 to30/09/16


Purchases – CommissionsEquities 0.0236%Collective Investment Schemes 0.0000%

Purchases – TaxesEquities 0.0767%Collective Investment Schemes 0.0000%

Sales – CommissionsEquities 0.0000%Collective Investment Schemes 0.0000%

Sales – TaxesEquities 0.0000%Collective Investment Schemes 0.0000%

03/05/16 to30/09/16





Subsequent to the period end, the Net Asset Value per Share of the Fund has increased usingthe Share prices at the period end date compared to 30 December 2016.





Valuation techniqueLevel 1: The unadjusted quotedprice in an active market for identical assets or liabilities 17,010 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly – –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – –

17,010 –


102



Final Distribution in pence per Share

Group 1 Shares purchased prior to 3 May 2016Group 2 Shares purchased on or after 3 May 2016 to 30 September 2016




Share class A Income launched on 3 May 2016.

103

Omnis Global Bond Fund


To achieve a return of a combination of income and capital growth.

Investment Policy

The Fund intends to invest (directly or indirectly) primarily in non-Sterling denominated governmentand non-government fixed and variable interest rate securities. The Fund may also invest in othertransferable securities (for example, Sterling denominated fixed and variable interest rate securities),units in collective investment schemes, money market instruments, deposits, derivative instrumentsand warrants as detailed in the Prospectus. No more than 10% of the Scheme Property of the Fundwill be invested in other collective investment schemes.


Investment Review

Whilst a fall in the oil price saw our overweight to USD credit underperform in Q1, over the wholeperiod under discussion, credit strategies made a positive contribution to performance. Creditexposures have been maintained in USD-denominated issues, and this continues to remain attractiverelative to EUR and GBP credit. However, we have reduced USD credit duration from longer-datedto 5-7yr maturities to take advantage of attractive carry and roll characteristics in this area. Thiswas undertaken in Q1 and allowed the portfolio to rebound in Q2 and further added to returns inQ3.

Active management of interest rate and inflation exposure have had a positive impact onperformance over the period, with the return to the portfolio generated through the tacticalmanagement of relative value positions between countries.

One of the key market events during the period was the EU referendum vote. The portfoliomanagement team implemented a broad range of offsetting positions with the intention ofmitigating the impact of an exit vote. Risk offset trades were not limited to UK or sterling-denominated assets only, where market positioning led to a number of crowded trades. Insteadthe team identified a number of cost effective hedging positions across asset classes to offset thepotential risk of an exit vote. These included 10-year US vs. Germany implemented throughgovernment bond futures with the US 10 year expected to outperform in the event of an exit vote;buying credit protection to offset a potential reduction in risk appetite in credit markets; as well asUS dollar vs. euro as the euro was likely to underperform the dollar on an exit vote, given that theoutlook for Europe would deteriorate.

Central to this range of risk offsets, the portfolio implemented UK breakeven positions (long UKinflation-linked bonds, hedged with interest rate futures). In the event of an exit vote the marketwould anticipate a weaker currency, leading to higher imported inflation; however, the Bank ofEngland (BoE) would be unlikely to raise rates as the growth outlook would be slowing. Overall thepositions limited the impact of Brexit and allowed the portfolio to outperform in Q3 2016.

Indeed, UK breakevens have moved sharply higher following the referendum vote, as sterlingunderperformed in quite dramatic fashion, and the portfolio implemented short sterling vs. the USdollar and the euro in the days following the vote. The sustained depreciation of sterling hascontinued to bolster returns.



104


Market Overview

The last 12 months have seen a number of key market events including the first US rate hike in adecade, the fall and subsequent rebound of the price of oil, the inception of the European CentralBank’s (ECB) corporate bond purchase programme, and most recently the UK’s decision to leaveEurope. This mixture of market events caused increased market uncertainty, which led fixed incomeinvestors to continue to buy bonds across the board with US, European, Japanese and UK yields allfalling and seeing more government bond yields moving into negative territory. Furthermore, despitesevere periods of risk aversion in early 2016 and post Brexit, corporate spreads have tightenedover a 12-month period. Investors have continued to look for any yield pick-up over governmentbonds, and for corporate bond buying programmes by the ECB and, more recently, the BoE whichhave supported valuations. In terms of currency valuations some of the most significant shiftsoccurred in developed market currencies with the Japanese yen (JPY) appreciating 18% againstUSD, while GBP depreciated over -14% against both EUR and USD. Arguably both the appreciationof JPY and the depreciation of GBP reflect aspects of demand for “safe haven” assets andexpectations of continued monetary policy accommodation.

Outlook

The investment approach remains consistent across the multi-sector strategies and despite achallenging opening to the year, the team has generated compelling returns. In seeking to generaterisk adjusted returns, with a low correlation to the directionality of the underlying market, wecontinue to favour broad diversification across a range of alpha sources.

The difficulty of navigating bond markets in the current environment has led some investors tofocus, too heavily in some cases, on a shrinking list of market risk. In other words, we believe someinvestors may have “too many eggs in one basket”. It is worth reiterating that this market is highlyunusual. Conventional positions that depend on accurate directional calls remain risky. Marketmovements are still detached from fundamentals.

In recent months, we have expanded our array of currency positions, as we see FX as a key sourceof alpha-generating opportunities. By way of an example, we have been short sterling for sometime, and continue to believe that the lack of detail surrounding the Brexit negotiations will continueto weigh on the pound. We also have a number of emerging market currencies held against thedollar which offer better carry. Provided investors are aware of the extent to which these currencytrades represent active risk we believe the opportunity set is wide.

In addition, the market remains consistent in overreacting to news flows; producing extremes invaluations which in turn provide tactical and strategic trade ideas. This characteristic has recentlyled the team to build a short position in UK rates. Although the current backdrop – and indeed theUK outlook for the foreseeable future – is for a continuation of loose monetary and fiscal policy, thelevel of “doom and gloom” built into gilt prices at present seems overly pessimistic. A tactical shortposition in gilts at this point seems merited, despite a more strategic view that gilts should besupported over the medium term. Similarly, we do expect UK inflation to climb over the longer termbut have recently exited our position in the UK breakeven and await an attractive re-entry point.

Investment ManagerSchroder Investment Management Limited14 October 2016

105


A Income30/09/2016 30/09/2015 30/09/2014

(p) (p) (p)





Other informationClosing net asset value (£'000) 208,579 124,355 52,795Closing number of shares 163,547,943 121,415,397 51,976,642Operating charges 0.53% 0.54% 0.57%Direct transaction costs 0.00% 0.00% 0.00%












• The Fund appears as a “4” on the scale. This is because the Fund invests in fixed incomeinvestments whose values do not fluctuate widely.

Risk Warning






106



107


Africa 0.21% [0.28%]AUD 750,000 African Development Bank 2.75% 03/02/2020 447 0.21

447 0.21

Australia 1.42% [0.87%]AUD 2,400,000 Australia Government Bond 5.5% 21/04/2023 1,735 0.83

EUR 100,000 BHP Billiton Finance 5.625% 22/10/2079 97 0.05USD 300,000 BHP Billiton Finance USA 3.85% 30/09/2023 250 0.12USD 265,000 Commonwealth Bank of Australia 2% 06/09/2021 204 0.10AUD 500,000 New South Wales Treasury 6% 01/03/2022 357 0.17USD 150,000 Sydney Airport Finance Pty 3.625% 28/04/2026 120 0.06EUR 200,000 Westpac Banking 1.5% 24/03/2021 186 0.09

2,949 1.42

Austria 0.05% [0.00%]EUR 100,000 UNIQA Insurance 6.875% 31/07/2043 97 0.05

97 0.05

Barbados 0.75% [0.00%]USD 2,115,000 Global SC Finance II SRL 3.09% 17/09/2029 1,574 0.75

1,574 0.75

Belgium 1.05% [2.21%]EUR 40,000 Anheuser-Busch InBev 1.5% 17/03/2025 37 0.02

EUR 500,000 Anheuser-Busch InBev FRN 0.079% 29/03/2018 433 0.21USD 1,110,000 Belgium Government International Bond 1.125%

05/03/2018 856 0.41EUR 850,000 European Union 1.875% 04/04/2024 856 0.41

2,182 1.05

Bermuda 1.68% [0.00%]USD 2,462,593 Cronos Containers Program I 3.27% 18/11/2029 1,843 0.88USD 2,170,000 Textainer Marine Containers III 3.9% 20/09/2038 1,662 0.80

3,505 1.68

Brazil 0.24% [0.31%]USD 600,000 Brazilian Government International Bond 4.875%

22/01/2021 492 0.24492 0.24

Canada 3.72% [5.94%]GBP 1,000,000 Bank of Montreal FRN 0.68388% 29/01/2018 999 0.48

USD 190,000 Bank of Nova Scotia 2.45% 22/03/2021 150 0.07USD 200,000 Barrick Gold 4.1% 01/05/2023 166 0.08

CAD 2,600,000 Canada Housing Trust No 1 2.9% 15/06/2024 1,697 0.81CAD 1,539,000 Canadian Government Bond 1.5% 01/06/2026 943 0.45CAD 3,157,000 Canadian Government Bond 3.5% 01/06/2020 2,047 0.98

CAD 668,000 Canadian Government Bond 3.5% 01/12/2045 557 0.27EUR 230,000 Canadian Imperial Bank of Commerce 0.375%

15/10/2019 203 0.10



108


Canada 3.72% [5.94%] (continued)USD 150,000 Enbridge 3.5% 10/06/2024 114 0.05USD 300,000 Province of Quebec Canada 2.875% 16/10/2024 245 0.12USD 750,000 Royal Bank of Canada 1.875% 05/02/2020 583 0.28USD 75,000 Transcanada Trust 5.875% 15/08/2076 61 0.03

7,765 3.72

Denmark 0.32% [0.44%]USD 188,000 Denmark Government Bond 0.875% 20/03/2017 145 0.07

DKK 4,000,000 Denmark Government Bond 1.5% 15/11/2023 520 0.25665 0.32

France 6.65% [10.93%]EUR 100,000 AXA 3.375% 06/07/2047 89 0.04USD 250,000 BPCE 2.25% 27/01/2020 195 0.09EUR 100,000 BPCE 2.75% 30/11/2027 90 0.04GBP 100,000 BPCE 5.25% 16/04/2029 114 0.05EUR 300,000 Caisse Centrale du Credit Immobilier de France

1.125% 22/04/2019 270 0.13USD 870,000 Caisse d’Amortissement de la Dette Sociale

1.875% 12/02/2022 677 0.32USD 1,000,000 Caisse d’Amortissement de la Dette Sociale

1.875% 28/07/2020 783 0.38USD 300,000 Caisse d’Amortissement de la Dette Sociale

3.375% 20/03/2024 255 0.12GBP 600,000 Caisse des Depots et Consignations 1.5%

12/06/2017 604 0.29EUR 200,000 Cap Gemini 1.75% 01/07/2020 182 0.09EUR 100,000 Cie de Financement Foncier 0.125% 18/02/2020 88 0.04USD 400,000 Council Of Europe Development Bank 1.75%

14/11/2019 313 0.15EUR 940,000 Council Of Europe Development Bank 1.75%

24/04/2024 931 0.45GBP 300,000 Council Of Europe Development Bank 1.875%

22/12/2018 309 0.15EUR 200,000 Dexia Credit Local 1.375% 18/09/2019 181 0.09EUR 100,000 Electricite de France 5% Perpetual 85 0.04GBP 100,000 Electricite de France 6% Perpetual 100 0.05

EUR 5,960,000 France Government Bond OAT 2.25% 25/05/2024 6,122 2.94EUR 500,000 France Government Bond OAT 3.25% 25/05/2045 677 0.32EUR 100,000 Holding d’Infrastructures de Transport SAS 2.25%

24/03/2025 98 0.05EUR 450,000 HSBC SFH France 0.375% 11/03/2022 403 0.19EUR 100,000 La Banque Postale 2.75% 19/11/2027 90 0.04GBP 100,000 Orange 5.75% Perpetual 108 0.05EUR 200,000 SANEF 1.875% 16/03/2026 195 0.09EUR 300,000 Societe Fonciere Lyonnaise 2.25% 16/11/2022 285 0.14EUR 100,000 TDF Infrastructure SAS 2.875% 19/10/2022 96 0.05





France 6.65% [10.93%] (continued)EUR 100,000 TOTAL 2.25% Perpetual 86 0.04EUR 500,000 UNEDIC 0.625% 17/02/2025 454 0.22

13,880 6.65

Germany 8.50% [6.42%]EUR 200,000 Bayer 2.375% 02/04/2075 166 0.08

EUR 1,696,000 Bundesrepublik Deutschland 2.5% 04/01/2021 1,667 0.80EUR 1,886,000 Bundesrepublik Deutschland 2.5% 04/07/2044 2,521 1.22EUR 1,325,000 Bundesrepublik Deutschland 3.25% 04/07/2021 1,361 0.65EUR 1,330,000 Bundesrepublik Deutschland 4.75% 04/07/2028 1,811 0.87EUR 1,070,000 Bundesrepublik Deutschland 4.75% 04/07/2034 1,674 0.80

EUR 100,000 Commerzbank 7.75% 16/03/2021 101 0.05EUR 110,000 Deutsche Pfandbriefbank 1.375% 15/01/2018 97 0.05EUR 110,000 Deutsche Wohnen 1.375% 24/07/2020 100 0.05EUR 100,000 Eurogrid 1.625% 03/11/2023 94 0.05

EUR 2,370,000 KFW 0% 15/09/2023 2,091 1.00USD 2,000,000 KFW 2% 02/05/2025 1,569 0.75

USD 750,000 Landwirtschaftliche Rentenbank 2% 13/01/2025 588 0.28USD 700,000 Landwirtschaftliche Rentenbank 2.375% 10/06/2025 565 0.27USD 800,000 Landwirtschaftliche Rentenbank 2.375% 24/03/2021 642 0.31AUD 200,000 Landwirtschaftliche Rentenbank 4.75% 06/05/2026 140 0.07

USD 2,700,000 L-Bank Foerderbank 1.375% 21/07/2021 2,067 0.99USD 440,000 LBBW 1.375% 05/03/2018 339 0.16GBP 100,000 RWE 7% Perpetual 103 0.05

17,696 8.50

Guernsey 0.09% [0.00%]EUR 200,000 Credit Suisse 1% 12/03/2019 178 0.09

178 0.09

Iceland 0.04% [0.00%]EUR 100,000 Arion Banki HF 2.5% 26/04/2019 89 0.04

89 0.04

Ireland 0.66% [0.41%]USD 375,000 AerCap Ireland Trust 4.5% 15/05/2021 301 0.14EUR 100,000 Allied Irish Banks 4.125% 26/11/2025 83 0.04EUR 191,000 Bank of Ireland 1.25% 09/04/2020 171 0.08GBP 50,000 ESB Finance 6.5% 05/03/2020 59 0.03

EUR 100,000 FCA Capital Ireland 2.875% 26/01/2018 90 0.04USD 410,000 Shire Acquisitions Investments Ireland DAC 2.4%

23/09/2021 316 0.15GBP 376,562 Small Business Origination Loan Trust 2016-1

DAC 2.47031% 15/12/2024 377 0.181,397 0.66

109




Italy 6.76% [7.29%]EUR 110,000 ACEA 2.625% 15/07/2024 109 0.05EUR 110,000 Assicurazioni Generali 5.5% 27/10/2047 99 0.05EUR 100,000 Autostrade per l’Italia 1.125% 04/11/2021 90 0.04EUR 100,000 Hera 5.2% 29/01/2028 125 0.06

EUR 3,000,000 Italy Buoni Poliennali Del Tesoro 1.15% 15/05/2017 2,618 1.26EUR 3,530,000 Italy Buoni Poliennali Del Tesoro 1.35% 15/04/2022 3,206 1.54

EUR 280,000 Italy Buoni Poliennali Del Tesoro 3.25% 01/09/2046 297 0.14EUR 1,600,000 Italy Buoni Poliennali Del Tesoro 3.5% 01/12/2018 1,491 0.71EUR 1,890,000 Italy Buoni Poliennali Del Tesoro 3.75% 01/05/2021 1,895 0.91EUR 2,600,000 Italy Buoni Poliennali Del Tesoro 4.5% 01/03/2024 2,845 1.36EUR 1,005,000 Italy Buoni Poliennali Del Tesoro 4.75% 01/09/2044 1,339 0.64

14,114 6.76

Japan 16.48% [13.62%]USD 500,000 Development Bank of Japan FRN 0.983% 28/01/2020 380 0.18

JPY 874,000,000 Japan Government Ten Year Bond 1.2% 20/12/2020 7,054 3.38JPY 437,300,000 Japan Government Thirty Year Bond 1.1% 20/03/2033 3,814 1.83JPY 560,300,000 Japan Government Thirty Year Bond 1.9% 20/09/2042 5,803 2.78JPY 292,000,000 Japan Government Thirty Year Bond 2.3% 20/05/2030 2,895 1.39

JPY 1,587,000,000 Japan Government Twenty Year Bond 2.1% 20/09/2024 14,225 6.83

USD 250,000 Japan International Cooperation Agency 1.875% 13/11/2019 194 0.09

34,365 16.48

Jersey 0.09% [0.00%]EUR 200,000 UBS Funding Jersey 1.75% 16/11/2022 183 0.09

183 0.09

Luxembourg 0.38% [0.68%]USD 225,000 Actavis Funding 3.8% 15/03/2025 183 0.09EUR 110,000 DH Europe Finance 1.7% 04/01/2022 102 0.05EUR 243,000 European Stability Mechanism 0.875% 15/10/2019 219 0.10EUR 200,000 Novartis Finance 0.625% 20/09/2028 174 0.08EUR 130,000 Prologis International Funding II 2.875% 04/04/2022 126 0.06

804 0.38

Mexico 0.58% [1.32%]MXN 31,345,000 Mexican Bonos 5.75% 05/03/2026 1,219 0.58

1,219 0.58

Netherlands 2.35% [3.28%]EUR 100,000 Achmea 6% 04/04/2043 94 0.05EUR 160,000 Achmea Bank 1.125% 25/04/2022 142 0.07EUR 250,000 Bank Nederlandse Gemeenten 1% 19/03/2019 224 0.11

USD 1,000,000 Bank Nederlandse Gemeenten 1.75% 24/03/2020 781 0.37USD 300,000 Cooperatieve Rabobank UA 4.375% 04/08/2025 244 0.12USD 360,000 Deutsche Telekom International Finance 1.30656%

19/09/2019 277 0.13

110




Netherlands 2.35% [3.28%] (continued)EUR 130,000 Eneco Holding 3.25% Perpetual 116 0.06USD 200,000 ING Bank 2.75% 22/03/2021 159 0.08GBP 480,000 ING Bank FRN 0.79% 27/11/2017 480 0.23GBP 100,000 Koninklijke KPN 5% 18/11/2026 123 0.06GBP 50,000 Koninklijke KPN 5.75% 17/09/2029 66 0.03

USD 400,000 Nederlandse Waterschapsbank 1.25% 16/01/2018 309 0.15USD 1,300,000 Nederlandse Waterschapsbank 1.25% 18/09/2017 1,003 0.48

USD 430,000 Shell International Finance 1.19544% 12/09/2019 331 0.16USD 110,000 Shell International Finance 1.875% 10/05/2021 85 0.04EUR 100,000 Teva Pharmaceutical Finance Netherlands II 1.125%

15/10/2024 88 0.04CHF 200,000 UPC 6.75% 15/03/2023 172 0.08EUR 100,000 Vonovia Finance 1.625% 15/12/2020 91 0.04EUR 100,000 Vonovia Finance 2.25% 15/12/2023 96 0.05

4,881 2.35

New Zealand 0.61% [0.77%]NZD 1,000,000 New Zealand Government Bond 5% 15/03/2019 601 0.29NZD 1,000,000 New Zealand Government Bond 5.5% 15/04/2023 677 0.32

1,278 0.61

Norway 0.42% [0.97%]NOK 8,700,000 Norway Government Bond 1.75% 13/03/2025 878 0.42

878 0.42

Philippines 0.28% [0.57%]USD 750,000 Asian Development Bank 2% 22/01/2025 588 0.28

588 0.28

Poland 0.50% [0.73%]PLN 4,800,000 Poland Government Bond 4% 25/10/2023 1,048 0.50

1,048 0.50

Singapore 0.77% [0.00%]SGD 2,700,000 Singapore Government Bond 2.375% 01/06/2025 1,602 0.77

1,602 0.77

Spain 2.46% [3.58%]EUR 100,000 Bankia 4% 22/05/2024 86 0.04EUR 100,000 Canal de Isabel II Gestion 1.68% 26/02/2025 91 0.04EUR 100,000 IE2 Holdco SAU 2.375% 27/11/2023 92 0.04EUR 100,000 Inmobiliaria Colonial 1.863% 05/06/2019 90 0.04EUR 900,000 Spain Government Bond 1.95% 30/04/2026 854 0.41

EUR 2,520,000 Spain Government Bond 2.15% 31/10/2025 2,433 1.17EUR 1,100,000 Spain Government Bond 4.6% 30/07/2019 1,078 0.52

EUR 400,000 Spain Government Bond 4.85% 31/10/2020 415 0.205,139 2.46

111



Sweden 1.62% [2.64%]GBP 500,000 Nordea Bank 2.375% 02/06/2022 532 0.26GBP 100,000 Skandinaviska Enskilda Banken 1.25% 05/08/2022 100 0.05USD 300,000 Skandinaviska Enskilda Banken 2.375% 25/03/2019 235 0.11EUR 300,000 Stadshypotek 1% 01/04/2019 268 0.13EUR 160,000 Svenska Handelsbanken 1.125% 14/12/2022 146 0.07USD 500,000 Svenska Handelsbanken 2.25% 17/06/2019 392 0.19EUR 400,000 Swedbank Hypotek 1.125% 21/05/2021 368 0.18

SEK 6,500,000 Sweden Government Bond 3.5% 01/06/2022 714 0.34USD 300,000 Sweden Government International Bond 0.75%

12/04/2017 231 0.11USD 500,000 Sweden Government International Bond 0.875%

23/01/2018 385 0.183,371 1.62

Switzerland 0.67% [0.72%]CHF 1,350,000 Switzerland Government Bond 4% 11/02/2023 1,402 0.67

1,402 0.67

United Kingdom 6.75% [8.83%]EUR 200,000 Abbey National Treasury Services 0.875% 13/01/2020 176 0.08GBP 60,000 Abbey National Treasury Services 3.875% 15/10/2029 69 0.03

GBP 390,000 Aviva 5.125% 04/06/2050 402 0.19EUR 100,000 Barclays 2.625% 11/11/2025 84 0.04GBP 100,000 Barclays 3.25% 12/02/2027 100 0.05USD 200,000 Barclays 5.2% 12/05/2026 159 0.08USD 255,000 Barclays Bank 10.179% 12/06/2021 249 0.12USD 120,000 BP Capital Markets 1.676% 03/05/2019 93 0.04USD 70,000 BP Capital Markets 3.062% 17/03/2022 56 0.03

EUR 100,000 British Telecommunications 1.125% 10/03/2023 90 0.04EUR 110,000 Coventry Building Society 2.5% 18/11/2020 102 0.05EUR 100,000 Credit Suisse 1.375% 29/11/2019 90 0.04EUR 200,000 Credit Suisse FRN 0.155% 16/10/2019 173 0.08EUR 110,000 Credit Suisse London 1.125% 15/09/2020 99 0.05USD 350,000 Ensco 5.75% 01/10/2044 164 0.08USD 500,000 European Bank for Reconstruction & Development

1.75% 14/06/2019 391 0.19GBP 600,000 FCE Bank 2.759% 13/11/2019 625 0.30GBP 200,000 Friends Life 8.25% 21/04/2022 253 0.12EUR 130,000 Heathrow Funding 1.5% 11/02/2032 116 0.06USD 250,000 HSBC 4.3% 08/03/2026 205 0.10EUR 750,000 INEOS Grangemouth 0.75% 30/07/2019 667 0.32GBP 100,000 InterContinental Hotels 3.875% 28/11/2022 112 0.05EUR 100,000 ITV 2.125% 21/09/2022 90 0.04GBP 50,000 Legal & General 6.385% Perpetual 51 0.02

EUR 200,000 Lloyds Bank 1.375% 16/04/2021 185 0.09USD 200,000 Lloyds Banking 4.65% 24/03/2026 159 0.08GBP 150,000 National Grid Gas Finance 2.75% 22/09/2046 159 0.08


112



United Kingdom 6.75% [8.83%] (continued)EUR 500,000 Nationwide Building Society 0.75% 25/06/2019 444 0.21EUR 800,000 Nationwide Building Society 1.25% 03/03/2025 720 0.35EUR 300,000 Nationwide Building Society 1.625% 03/04/2019 269 0.13GBP 100,000 NGG Finance 5.625% 18/06/2073 112 0.05USD 265,000 Royal Bank of Scotland 3.875% 12/09/2023 201 0.10EUR 100,000 Royal Mail 2.375% 29/07/2024 96 0.05GBP 100,000 Scotland Gas Networks 3.25% 08/03/2027 113 0.05GBP 100,000 Severn Trent Utilities Finance 3.625% 16/01/2026 117 0.06GBP 100,000 SSE 3.875% Perpetual 101 0.05USD 295,000 Standard Chartered 4.05% 12/04/2026 234 0.11USD 540,000 Tesco 6.15% 15/11/2037 415 0.20GBP 100,000 Thames Water Utilities Finance 5.125% 28/09/2037 149 0.07

GBP 1,910,000 UK Treasury 1.5% 22/07/2026 2,044 0.98GBP 2,600,000 UK Treasury 3.25% 22/01/2044 3,611 1.73

GBP 237,000 Unique Pub Finance 7.395% 28/03/2024 236 0.11GBP 100,000 Yorkshire Building Society 3.5% 21/04/2026 108 0.05

14,089 6.75

United States 33.48% [24.96%]USD 206,000 21st Century Fox America 5.4% 01/10/2043 189 0.09USD 200,000 AbbVie 3.2% 06/11/2022 160 0.08USD 249,000 Aetna 3.2% 15/06/2026 194 0.09USD 85,000 Aflac 4% 15/10/2046 66 0.03

USD 135,000 Altria 3.875% 16/09/2046 107 0.05USD 177,000 American International 3.3% 01/03/2021 143 0.07USD 180,000 American Tower 3.3% 15/02/2021 145 0.07USD 345,000 American Tower 3.375% 15/10/2026 270 0.13

USD 1,390,000 AmeriCredit Automobile ReceivablesTrust 2.87% 11/08/2021 1,098 0.53

USD 250,000 Amgen 1.85% 19/08/2021 191 0.09USD 435,000 Anadarko Petroleum 4.85% 15/03/2021 359 0.17USD 410,000 Anheuser-Busch InBev Finance 3.3% 01/02/2023 333 0.16USD 250,000 ANZ Bond 1.6% 15/07/2019 192 0.09USD 495,000 Apple 4.45% 06/05/2044 427 0.20USD 590,000 AT&T 5.15% 15/03/2042 497 0.24EUR 110,000 Bank of America 2.375% 19/06/2024 106 0.05USD 323,000 Bank of America 3.875% 01/08/2025 265 0.13USD 385,000 Bank of America 4.25% 22/10/2026 407 0.20USD 305,000 Bank of America 6.25% Perpetual 244 0.12USD 140,000 Bank of New York Mellon 4.625% Perpetual 106 0.05USD 110,000 Berkshire Hathaway 2.75% 15/03/2023 88 0.04GBP 300,000 BMW US Capital FRN 0.64656% 06/02/2017 300 0.14USD 270,000 Calpine 5.25% 01/06/2026 210 0.10USD 360,000 Capital One NA 1.61722% 13/09/2019 277 0.13EUR 630,000 Carnival 1.875% 07/11/2022 582 0.28USD 350,000 CCO 5.875% 01/04/2024 288 0.14USD 105,000 Charter Communications 4.908% 23/07/2025 89 0.04


113



United States 33.48% [24.96%] (continued)USD 700,000 Citigroup 2.5% 29/07/2019 549 0.26USD 345,000 Citigroup 4.3% 20/11/2026 279 0.13

USD 3,870,750 CLI Funding V 2.83% 18/03/2028 2,892 1.40USD 1,934,184 Colony American Finance 2.544% 15/06/2048 1,489 0.71

USD 360,000 CommScope Technologies Finance 6% 15/06/2025 295 0.14USD 34,000 Continental Resources 5% 15/09/2022 26 0.01

USD 1,000,000 Credit Suisse FRN 1.4415% 29/01/2018 770 0.37USD 60,000 Crown Castle International 2.25% 01/09/2021 46 0.02

USD 155,000 Crown Castle International 3.7% 15/06/2026 125 0.06USD 500,000 CVS Health 3.5% 20/07/2022 412 0.20USD 175,000 Devon Energy 5.85% 15/12/2025 152 0.07USD 150,000 Diamond 1&2 5.45% 15/06/2023 123 0.06EUR 100,000 Digital Euro Finco 2.625% 15/04/2024 92 0.04USD 187,000 Digital Realty Trust LP 3.625% 01/10/2022 149 0.07

USD 1,800,000 Discover Card Execution Note Trust 1.06428% 15/09/2021 1,397 0.67

USD 245,000 DISH DBS 7.75% 01/07/2026 199 0.10USD 40,000 Duke Energy 1.8% 01/09/2021 31 0.01USD 55,000 Duke Energy Ohio 3.7% 15/06/2046 43 0.02

USD 235,000 Dynegy 6.75% 01/11/2019 186 0.09USD 1,000,000 Element Rail Leasing II 3.585% 19/02/1945 759 0.36

EUR 110,000 Eli Lilly & Co 2.125% 03/06/2030 109 0.05USD 239,000 EMD Finance 2.95% 19/03/2022 190 0.09USD 125,000 Enbridge Energy Partners LP 7.375% 15/10/2045 123 0.06USD 295,000 Enterprise Products Operating 3.35% 15/03/2023 233 0.11USD 215,000 EOG Resources 2.625% 15/03/2023 165 0.08USD 120,000 EQT 4.875% 15/11/2021 101 0.05USD 49,000 Exelon 2.45% 15/04/2021 38 0.02

USD 330,000 Exxon Mobil 0.921% 15/03/2017 254 0.12USD 315,000 Fidelity National Information Services 2.25%

15/08/2021 243 0.12USD 200,000 Fifth Third Bank 1.44294% 27/09/2019 154 0.07USD 200,000 Fifth Third Bank 3.85% 15/03/2026 163 0.08USD 200,000 First Data 5.375% 15/08/2023 159 0.08USD 53,000 FLIR Systems 3.125% 15/06/2021 42 0.02

USD 380,000 Fortive 3.15% 15/06/2026 301 0.14USD 160,000 General Electric 6.75% 15/03/2032 173 0.08USD 165,000 General Motors Financial 3.2% 06/07/2021 129 0.06USD 160,000 General Motors Financial 4.2% 01/03/2021 130 0.06USD 145,000 Gilead Sciences 4.5% 01/02/2045 119 0.06USD 210,000 Glencore Funding 2.5% 15/01/2019 161 0.08EUR 200,000 Goldman Sachs 2.875% 03/06/2026 197 0.09

USD 1,130,000 Goldman Sachs FRN 1.481% 22/05/2017 871 0.42USD 233,000 HealthSouth 5.75% 15/09/2025 186 0.09USD 165,000 Hewlett Packard Enterprise 4.4% 15/10/2022 135 0.06USD 500,000 HSBC 1.7% 05/03/2018 385 0.18


114



United States 33.48% [24.96%] (continued)USD 85,000 Ingredion 3.2% 01/10/2026 67 0.03

USD 300,000 Inter-American Development Bank FRN 0.56528% 26/11/2018 230 0.11

CAD 1,000,000 International Bank for Reconstruction & Development 1.125% 11/03/2020 588 0.28

USD 385,000 International Paper 4.8% 15/06/2044 312 0.15EUR 200,000 JP Morgan Chase 1.5% 27/01/2025 183 0.09USD 700,000 JP Morgan Chase 3.625% 13/05/2024 572 0.27EUR 100,000 JPMorgan Chase 0.625% 25/01/2024 86 0.04USD 500,000 Kinder Morgan 5.55% 01/06/2045 394 0.19USD 250,000 Kraft Heinz Foods 4.375% 01/06/2046 205 0.10USD 163,000 Kroger 2.6% 01/02/2021 129 0.06USD 96,000 Macy’s Retail 3.45% 15/01/2021 77 0.04USD 39,000 Macy’s Retail 3.875% 15/01/2022 32 0.02

USD 200,000 Marathon Petroleum 3.625% 15/09/2024 154 0.07USD 380,000 Massachusetts Water Resources Authority 0.85%

01/08/1937 292 0.14USD 270,000 McDonald’s 4.875% 09/12/2045 242 0.12USD 800,000 Medtronic 4.625% 15/03/2045 725 0.35USD 225,000 Microsoft 3.7% 08/08/2046 175 0.08USD 310,000 Molson Coors Brewing 3% 15/07/2026 240 0.12EUR 140,000 Morgan Stanley 2.375% 31/03/2021 132 0.06USD 81,000 Morgan Stanley 3.125% 27/07/2026 63 0.03USD 35,000 Morgan Stanley 3.875 27/01/2016 37 0.02

USD 700,000 Morgan Stanley 3.875% 29/04/2024 576 0.28USD 700,000 Morgan Stanley 5% 24/11/2025 601 0.29USD 305,000 Morgan Stanley 5.55% Perpetual 240 0.12EUR 460,000 Morgan Stanley FRN 0.402% 19/11/2019 402 0.19USD 323,000 MPG Holdco 7.375% 15/10/2022 255 0.12USD 230,000 Nestle 2% 30/09/2019 180 0.09

USD 1,000,000 Nestle 2.125% 14/01/2020 787 0.38USD 312,000 Newell Rubbermaid 3.85% 01/04/2023 255 0.12USD 150,000 Norfolk Southern 3% 01/04/2022 121 0.06USD 200,000 Occidental Petroleum 3.5% 15/06/2025 164 0.08USD 575,000 OnDeck Asset Securitization Trust II 4.21%

17/05/2020 446 0.21USD 1,960,000 OneMain Financial Issuance Trust 2016-2 4.1%

20/03/2028 1,553 0.74USD 116,000 ONEOK Partners 3.375% 01/10/2022 90 0.04USD 650,000 PepsiCo 4.45% 14/04/2046 592 0.28USD 100,000 Philip Morris International 1.375% 25/02/2019 77 0.04USD 303,000 Plains All American Pipeline 3.65% 01/06/2022 236 0.11EUR 110,000 Prologis 3% 02/06/2026 111 0.05USD 300,000 Prudential Financial 4.6% 15/05/2044 245 0.12USD 220,000 Prudential Financial 5.1% 15/08/2043 189 0.09USD 195,000 Reynolds American 5.85% 15/08/2045 194 0.09


115



United States 33.48% [24.96%] (continued)USD 230,000 S&P Global 2.95% 22/01/2027 177 0.08USD 200,000 S&P Global 3.3% 14/08/2020 161 0.08USD 200,000 S&P Global 4% 15/06/2025 167 0.08USD 300,000 SBA Communications 4.875% 01/09/2024 233 0.11USD 200,000 SES Global Americas 2.5% 25/03/2019 154 0.07USD 210,000 Sirius XM Radio 5.375% 15/07/2026 166 0.08USD 350,000 Southern 4.4% 01/07/2046 291 0.14

USD 1,260,000 SpringCastle America Funding 3.05% 25/04/2029 979 0.47USD 20,000 State Board of Administration Finance 2.163%

01/07/2019 16 0.01USD 95,000 Sunoco Logistics Partners Operations LP 3.9%

15/07/2026 74 0.04USD 340,000 SUPERVALU 6.75% 01/06/2021 245 0.12

USD 2,360,000 Synchrony Credit Card Master Note Trust 1.36% 17/08/2020 1,820 0.87

USD 1,614,750 TAL Advantage V 3.55% 20/11/2038 1,231 0.59EUR 100,000 Thermo Fisher Scientific 1.5% 01/12/2020 91 0.04USD 140,000 Thermo Fisher Scientific 2.95% 19/09/2026 107 0.05USD 315,000 UBS Funding Jersey 3% 15/04/2021 248 0.12

USD 6,300,000 United States Treasury Inflation Indexed Bonds 0.125% 15/07/2026 4,931 2.36

USD 13,390,000 United States Treasury Note/Bond 0.875% 15/06/2019 10,310 4.94

USD 36,000 United States Treasury Note/Bond 1.5% 15/08/2026 27 0.01USD 6,360,000 United States Treasury Note/Bond 1.625%

15/02/2026 4,910 2.35USD 6,270,000 United States Treasury Note/Bond 2.5% 15/02/2046 5,008 2.40

USD 270,000 US Ban 5.125% Perpetual 219 0.10USD 355,000 Ventas Realty 3.5% 01/02/2025 282 0.14USD 150,000 Verizon Communications 4.862% 21/08/2046 129 0.06USD 395,000 Verizon Communications 6.55% 15/09/2043 412 0.20USD 115,000 Viacom 5.85% 01/09/2043 99 0.05USD 180,000 Visa 4.3% 14/12/2045 160 0.08USD 200,000 Walgreens Boots Alliance 1.75% 30/05/2018 155 0.07EUR 200,000 Wells Fargo 0.153% 24/04/2019 174 0.08EUR 150,000 Wells Fargo 2% 27/04/2026 143 0.07GBP 100,000 Wells Fargo 2% 28/07/2025 100 0.05GBP 400,000 Wells Fargo 2.125% 22/04/2022 415 0.20

USD 2,336,400 Wendys Funding 2015-1 3.371% 15/06/2045 1,807 0.87USD 125,000 Williams Partners LP 4% 15/09/2025 96 0.05USD 20,000 Williams Partners LP 5.1% 15/09/2045 15 0.01

69,909 33.48


116


117


Swap (0.11)% [(0.28)%]EUR 3,410,000 JPM Credit Default Swap 1.0% 16/06/2021 2,714 1.30

EUR (3,410,000) JPM Credit Default Swap 5.0% 20/06/2021 (2,950) (1.41)EUR 228,000 JPM INFL Interest Rate Swap 1.1 % 15/03/2026 196 0.09

EUR (228,000) JPM INFL Interest Rate Swap 1.1 % 15/03/2026 (197) (0.09)EUR 370,000 JPM Interest Rate Swap 1.1 % 15/03/2026 318 0.15

EUR (370,000) JPM Interest Rate Swap 1.1 % 15/03/2026 (320) (0.15)EUR 380,000 UBS Interest Rate Swap 1.09750% 15/03/2026 327 0.16

EUR (380,000) UBS Interest Rate Swap 1.09750% 15/03/2026 (329) (0.16)(241) (0.11)

Options 0.03% [0.00%]MXN 39,700,000 MXN PUT JPY CALL 4.888 22 0.01

MXN (39,700,000) MXN PUT JPY CALL 4.4283 (4) 0.00GBP 3,950,000 IRS SWAPTION 1.00 LIBOR 6M 4 0.00USD 3,310,000 IRS SWAPTION 1.65 USD LIBOR 4 0.00USD 3,930,000 USD CALL TWD PUT 31.5 22 0.01USD 2,020,000 USD CALL MXN PUT 20.25 26 0.01

USD (2,020,000) USD CALL MXN PUT 22 (6) 0.0068 0.03

Futures (0.01)% [0.06%](3.00) Canada Government Bond Futures December 2016 (4) 0.00

5.00 German Euro BOBL Futures December 2016 1 0.0013.00 German Euro BTP Futures December 2016 4 0.00

(71.00) German Euro Bund Futures December 2016 (23) (0.01)1.00 German Euro BUXL 30 Year Bond Futures December 2016 3 0.00

(3.00) German Euro-Schatz Futures December 2016 0 0.0081.00 Long Gilt Futures December 2016 (10) 0.00(7.00) Long Gilt Futures December 2016 (3) 0.00

1.00 US Treasury Long Bond December 2016 (1) 0.00(4.00) US Treasury Long Bond December 2016 0 0.0023.00 US Treasury Note 10 Year Futures December 2016 4 0.00

(34.00) US Treasury Note 10 Year Futures December 2016 0 0.0021.00 US Treasury Note 2 Year Futures December 2016 0 0.00(7.00) US Treasury Note 2 Year Futures December 2016 (1) 0.0042.00 US Treasury Note 5 Year Futures December 2016 (1) 0.00

(64.00) US Treasury Note 5 Year Futures December 2016 (3) 0.00(51.00) US Treasury Ultra Bond Futures December 2016 3 0.00

(31) (0.01)



118




Forward Currency Contracts 0.41% [0.15%]Bought AUD2,194,769 for CAD2,158,700 Settlement

13/10/2016 28 0.01Sold AUD4,432,435 for GBP2,543,899 Settlement

13/10/2016 (66) (0.03)Bought BRL6,162,100 for USD1,877,115 Settlement

04/10/2016 15 0.01Bought BRL6,562,100 for USD2,001,830 Settlement

03/11/2016 0 0.00Bought CAD2,708,700 for GBP1,575,605 Settlement

13/10/2016 11 0.01Sold CAD1,733,578 for GBP1,007,891 Settlement

13/10/2016 (7) 0.00Bought CHF381,543 for GBP303,833 Settlement

13/10/2016 (1) 0.00Sold CHF408,543 for GBP317,361 Settlement

13/10/2016 (7) 0.00Bought COP1,429,023,700 for USD491,428 Settlement

13/10/2016 3 0.00Bought CZK4,670,000 for GBP146,613 Settlement

13/10/2016 3 0.00Bought DKK1,270,000 for GBP147,516 Settlement

13/10/2016 0 0.00Sold DKK440,173 for GBP50,174 Settlement 13/10/2016 (1) 0.00Bought EUR2,406,385 for SEK23,209,700 Settlement

13/10/2016 (4) 0.00Bought EUR19,769,510 for GBP16,799,039 Settlement

13/10/2016 308 0.15Sold EUR27,619,669 for GBP23,509,262 Settlement

13/10/2016 (390) (0.19)Bought IDR51,844,423,800 for USD3,956,790

Settlement 13/10/2016 8 0.00Bought ILS830,000 for GBP166,177 Settlement

13/10/2016 4 0.00Bought INR270,272,200 for USD4,053,238 Settlement

13/10/2016 (1) 0.00Bought JPY60,894,497 for MXN11,909,900 Settlement

13/10/2016 (10) 0.00Bought JPY204,294,200 for USD2,011,644 Settlement

13/10/2016 5 0.00Bought JPY977,750,139 for GBP7,247,232 Settlement

13/10/2016 187 0.09Sold JPY387,924,950 for GBP2,878,934 Settlement

13/10/2016 (71) (0.03)Bought KRW7,049,224,100 for USD6,358,224

Settlement 13/10/2016 32 0.02

119




Forward Currency Contracts 0.41% [0.15%] (continued)Bought MXN11,909,900 for JPY60,912,645 Settlement

13/10/2016 10 0.00Bought MXN33,338,900 for GBP1,350,645 Settlement

13/10/2016 (26) (0.01)Sold MXN29,965,333 for GBP1,208,810 Settlement

13/10/2016 18 0.01Bought MYR3,030,000 for USD740,560 Settlement

13/10/2016 (6) 0.00Bought NOK13,701,100 for AUD2,198,617 Settlement

13/10/2016 25 0.01Bought NOK42,027,300 for GBP3,845,286 Settlement

13/10/2016 202 0.10Sold NOK4,912,711 for GBP451,340 Settlement

13/10/2016 (22) (0.01)Sold NZD4,420,908 for GBP2,462,445 Settlement

13/10/2016 (11) (0.01)Bought PEN1,645,200 for USD485,453 Settlement

13/10/2016 (2) 0.00Sold PLN3,359,975 for GBP657,862 Settlement

13/10/2016 (18) (0.01)Bought RUB144,702,900 for USD2,235,113 Settlement

13/10/2016 43 0.02Bought SEK14,632,326 for NOK13,717,300 Settlement

13/10/2016 (6) 0.00Bought SEK64,886,286 for GBP5,744,462 Settlement

13/10/2016 87 0.04Sold SEK11,604,900 for GBP1,036,066 Settlement

13/10/2016 (7) 0.00Sold SGD5,144,784 for GBP2,862,021 Settlement

13/10/2016 (42) (0.02)Bought THB21,360,000 for GBP461,708 Settlement

13/10/2016 13 0.01Bought TRY3,056,200 for USD1,016,748 Settlement

13/10/2016 0 0.00Bought TRY4,409,300 for GBP1,118,096 Settlement

13/10/2016 11 0.01Bought USD1,894,282 for BRL6,162,100 Settlement

04/10/2016 (2) 0.00Bought USD1,353,872 for IDR17,566,493,300

Settlement 13/10/2016 8 0.00Bought USD2,016,924 for JPY204,294,200 Settlement

13/10/2016 (1) 0.00Bought USD4,381,484 for KRW4,827,738,700

Settlement 13/10/2016 (1) 0.00Bought USD986,071 for MXN19,319,600 Settlement

13/10/2016 (9) 0.00

120




Forward Currency Contracts 0.41% [0.15%] (continued)Bought USD1,593,762 for NZD2,143,700 Settlement

13/10/2016 27 0.01Bought USD3,372,276 for SEK29,012,200 Settlement

13/10/2016 (12) (0.01)Bought USD983,183 for ZAR13,977,200 Settlement

13/10/2016 (24) (0.01)Bought USD38,300,959 for GBP28,766,113 Settlement

13/10/2016 713 0.34Sold USD25,767,564 for GBP19,556,834 Settlement

13/10/2016 (275) (0.13)Bought ZAR22,037,200 for GBP1,173,317 Settlement

13/10/2016 58 0.03797 0.41



Derivative contracts were traded on an eligible derivatives exchange.

All investments are ordinary Bonds unless otherwise stated.


Gross purchases for the year: £290,063 [2015: £140,907].

Total sales net of transaction costs for the year: £236,461 [2015: £68,421].

121



Credit Rating as at 30 September 2016% of TotalNet Assets

Bonds RatingAAA 33.28 AA 12.08 A 30.96 BBB 20.36 <BBB 0.75 Not rated 1.29 Bonds 98.72Uninvested Cash 0.30CDS 1.40IRS & Forwards (0.42)Net Assets 100.00

The above information has been supplied by the Investment Manager. Bonds not rated are ofinvestment grade, but rating not sought by issuer.


01/10/15 to 30/09/16 01/10/14 to 30/09/15Note £’000 £’000 £’000 £’000

IncomeNet capital gains 2 35,782 14Revenue 3 3,470 1,535

Expenses 4 (794) (458)Interest payable and similar

charges 5 (11) –Net revenue before taxation 2,665 1,077Taxation 6 – –Net revenue after taxation 2,665 1,077Total return before distributions 38,447 1,091Distributions 7 (2,665) (1,077)Change in net assets

attributable to Shareholdersfrom investment activities 35,782 14

01/10/15 to 30/09/16 01/10/14 to 30/09/15£’000 £’000 £’000 £’000

Opening net assets attributable to Shareholders 124,355 52,795

Amounts received on issue of Shares 51,979 72,019Amounts payable on cancellation

of Shares (3,537) (473)48,442 71,546

Change in net assets attributable to Shareholders from investment activities (see above) 35,782 14

Closing net assets attributable to Shareholders 208,579 124,355


122



30/09/16 30/09/15Note £’000 £’000 £’000 £’000

AssetsFixed assets:



Total current assets 7,463 4,877 Total assets 220,716 127,483 LiabilitiesInvestment liabilities (4,874) (1,105)Creditors:

Bank overdrafts 11 (309) (297)Distribution payable (1,790) (735)Other creditors 10 (5,164) (991)



123


124



30/09/16 30/09/15£’000 £’000

The net capital gains during the year comprise:Brokers commission on futures (18) –Currency losses (1,000) (29)Derivative contracts (794) (401)Forward currency contracts 2,321 532 Non-derivative securities 35,318 (73)Transaction charges (45) (15)Net capital gains 35,782 14

3. Revenue01/10/15 to 01/10/14 to

30/09/16 30/09/15£’000 £’000

Bank interest 2 3Interest from debt securities 3,599 1,529Revenue from swaps (131) 3Total revenue 3,470 1,535

4. Expenses01/10/15 to 01/10/14 to

30/09/16 30/09/15£’000 £’000


AMC fees 713 396713 396

Payable to the Depositary, associates of the Depositary and agents of either of them



17 23Total expenses 794 458




125


30/09/16 30/09/15£’000 £’000

Interest 11 –Total interest payable and similar charges 11 –

6. Taxation


30/09/16 30/09/15£’000 £’000

Total taxation for the year (Note 6(b)) – –



01/10/15 to 01/10/14 to30/09/16 30/09/15

£’000 £’000

Net revenue before taxation 2,665 1,077Net revenue for the year multiplied by the standard

rate of corporation tax 533 215Effects of:Tax deductible interest distributions (533) (215)Total tax charge for the year – –






126

7. Distributions


01/10/15 to 01/10/14 to30/09/16 30/09/15

£’000 £’000

Interim 835 421Final 1,461 604Add: Revenue paid on cancellation of Shares 13 2Deduct: Revenue received on creation of Shares (177) (166)Income tax withheld at source 533 216Net distribution for the year 2,665 1,077Reconciliation of net revenue after taxation

to distributionsNet revenue after taxation 2,665 1,077Net distribution for the year 2,665 1,077


8. Debtors30/09/16 30/09/15

£’000 £’000

Accrued revenue 1,189 907 Amounts receivable for creation of shares 1,177 600 Overseas withholding tax recoverable 9 –Sales awaiting settlement 1,080 –Prepaid expenses 4 –Total debtors 3,459 1,507


£’000 £’000

Cash and bank balances 3,036 2,669Amounts held at futures clearing houses and brokers 968 701Total cash and bank balances 4,004 3,370



127

10. Creditors30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares – 440Purchases awaiting settlement 5,063 475

5,063 915Accrued expensesManager and AgentsAMC fee 74 45



10 11Total other creditors 5,164 991

11. Bank overdrafts30/09/16 30/09/15

£’000 £’000

Amounts overdrawn at futures clearing houses and brokers 309 297Total bank overdrafts 309 297



128









13. Share Classes


%










129


The main risks from the Fund's holding of financial instruments, together with the ACD’spolicy for managing these risks, are disclosed in note 2 on pages 14 to 19 of the report.



Net foreign Net foreign currency currencyexposure exposure

30/09/16 30/09/15Currency £’000 £’000

Australian Dollar 161 1,502 Brazilian Real 1,540 – Canadian Dollar 5,229 3,124 Colombian Peso 381 – Czech Koruna 150 76 Danish Krone 622 384 Euro 46,333 20,888 Indonesian Rupiah 2,019 – Indian Rupee 3,118 – Japanese Yen 37,409 19,628 Malaysian Ringgit 564 314 Mexican Peso 643 1,465 New Israeli Sheqel 170 140 New Russian Ruble 1,763 48 New Zealand Dollar (2,366) 167 Norwegian Krone 4,460 3,565 Peruvian Nouveau Sol 371 – Polish Zloty 410 212 Singapore Dollar (1,272) 158 South African Rand 450 217 South Korean Won 1,552 1,411 Swedish Krona 2,131 566 Swiss Franc 1,590 892 Thai Baht 474 298 Turkish Lira 1,911 150 US Dollar 95,653 59,684 Total foreign currency exposure 205,466 114,889Sterling 3,113 9,466 Total net assets 208,579 124,355




130



The table below shows the interest rate risk profile as at the balance sheet date:



30/09/16Australian Dollar 53 2,679 41 2,773 Brazilian Real – – 1,540 1,540 Canadian Dollar 71 5,832 44 5,947 Colombian Peso – – 381 381 Czech Koruna – – 150 150 Danish Krone – 520 102 622 Euro 1,683 50,942 3,974 56,599 Indonesian Rupiah – – 2,019 2,019 Indian Rupee – – 3,118 3,118 Japanese Yen – 33,791 4,537 38,328 Mexican Peso 36 1,219 26 1,281 Malaysian Ringgit – – 564 564 New Israeli Sheqel – – 170 170 New Russian Ruble – – 1,763 1,763 New Zealand Dollar 14 1,278 15 1,307 Norwegian Krone – 878 3,582 4,460 Peruvian Nouveau Sol – – 371 371 Polish Zloty 2 1,048 36 1,086 Singapore Dollar 18 1,602 12 1,632 South African Rand – – 450 450 South Korean Won – – 1,552 1,552 Sterling 3,165 11,095 2,137 16,397 Swedish Krona – 714 1,417 2,131 Swiss Franc – 1,574 37 1,611 Thai Baht – – 474 474 Turkish Lira – – 1,911 1,911 US Dollar 6,987 86,589 3,707 97,283 Total 12,029 199,761 34,130 245,920



131


(b) Interest rate risk profile of financial assets and liabilities (continued)



30/09/15Australian Dollar 24 1,390 12 1,426 Canadian Dollar 59 3,180 73 3,312 Danish Krone – 422 5 427 Euro 2,546 35,959 399 38,904 Japanese Yen 115 16,436 129 16,680 Mexican Peso 35 978 28 1,041 New Israeli Sheqel – – 2 2 New Russian Ruble – – 2 2 New Zealand Dollar 11 948 12 971 Norwegian Krone 24 1,200 42 1,266 Polish Zloty 20 907 34 961 Singapore Dollar – – 1 1 South Korean Won – – 14 14 Sterling 8,563 8,327 753 17,643 Swiss Franc – 897 15 912 Thai Baht – – 3 3 Turkish Lira – – 5 5 US Dollar 4,444 38,469 1,000 43,913 Total 15,841 109,113 2,529 127,483



132


(b) Interest rate risk profile of financial assets and liabilities (continued)

FinancialFloating rate Fixed rate liabilities

financial financial not carryingliabilities liabilities interest Total


30/09/16Australian Dollar – – 2,612 2,612 Canadian Dollar 21 – 697 718 Euro 288 – 9,978 10,266 Japanese Yen – – 919 919 Mexican Peso – – 638 638 New Zealand Dollar – – 3,673 3,673 Polish Zloty – – 676 676 Singapore Dollar – – 2,904 2,904 Sterling – – 13,284 13,284 Swiss Franc – – 21 21 US Dollar – – 1,630 1,630 Total 309 – 37,032 37,341 30/09/15Canadian Dollar 78 – 1 79 Euro – – 197 197 Japanese Yen – – 484 484 Malaysian Ringgit – – 7 7 Mexican Peso – – 5 5 New Zealand Dollar – – 25 25 Norwegian Krone – – 165 165 Sterling – – 1,355 1,355 US Dollar 219 – 592 811 Total 297 - 2,831 3,128


(c) Leverage

There was 223.28% leverage as at 30 September 2016, other than that available to the Fundas a result of its ability to borrow up to 10% of its value on a permanent basis.



133



16. Portfolio transaction costs

There were no broker transaction costs incurred during the year to 30 September 2016(30/09/15: £nil).








Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 105,141 (46) 53,711 (51)Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly 108,112 (4,828) 68,895 (1,054)Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – – – –

213,252 (4,873) 122,606 (1,105)

134




Distribution DistributionGross Income Net paid paid

revenue tax revenue Equalisation 31/05/16 31/05/15(p) (p) (p) (p) (p) (p)

Share Class A IncomeGroup 1 0.7643 0.1529 0.6114 – 0.6114 0.6303Group 2 0.4285 0.0857 0.3428 0.2686 0.6114 0.6303


Group 1 Shares purchased prior to 1 April 2016Group 2 Shares purchased on or after 1 April to 30 September 2016

Distribution DistributionGross Income Net payable paid




135

Omnis Income and Growth Fund


The aim of the Fund is to provide income together with capital growth.

Investment Policy

The Fund aims to invest primarily (meaning at least 70% of its scheme property) in UK listedsecurities including companies which are listed but not incorporated in the UK. In addition, the Fundmay invest up to ten (10) percent of its scheme property in unquoted companies (the “UnlistedPortfolio”). The Fund may invest in transferable securities, unlisted securities, money marketinstruments, warrants, units in collective investment schemes and deposits as detailed in the mostrecent Prospectus.

The Fund may make use of derivatives for the purposes of efficient portfolio management. It is notanticipated that such use of derivatives will have a significant effect on the risk profile of the Fund.

Investment Review

This report covers the period from the fund’s launch in February to its year end on 30 September2016. The fund delivered a positive return during the period with strong positive contributionscoming primarily from the fund’s globally-diversified, dependable growth companies in the healthcare and consumer goods sectors. Stocks such as AstraZeneca, GlaxoSmithKline and BritishAmerican Tobacco performed particularly well in the aftermath of the EU referendum, when theiroverseas earnings became highly sought after by investors looking to reduce exposure todomestically-focused stocks.

By contrast, UK outsourcing specialist, Capita, was the largest detractor from performance. Itsshares fell sharply after a very disappointing trading update towards the end of the period. Circassiaalso performed poorly after a late-stage trial for its potential treatment for cat allergy failed, due toa surprising placebo effect.

Throughout the period, we have pursued an investment strategy which has focused primarilytowards attractively-valued, dependable growth companies which are in control of their destinies.These investment opportunities are found predominantly in sectors such as health care andconsumer goods but we also find stocks with similar characteristics across a wide range of sectors.

Alongside these high quality blue-chip businesses, we have also invested in a selection of earlier-stage business with considerable long-term growth potential. As the period progressed, we addeda number of new unquoted positions to the portfolio, albeit individually they represent very smallholdings. These included long-term patient capital investor Cambridge Innovation Capital, materialscompany Metalysis and premium memory foam mattress retailer, Eve Sleep.

In terms of disposals, we sold BAE Systems and BT during the period. In the case of BAE Systems,we sold after a period of sustained strong share price performance. We continue to be attracted tothe shares but, at the margin, we have grown a bit more concerned about the size of its pensiondeficit.

The rationale for the sale of BT was similar. We have some concerns about its pension deficit andthe changing regulatory environment, but we continue to believe that the business is performingwell and remain supportive of its strategy. Nevertheless, the fight for capital compels us to sellsome positions in order to make room for more attractive opportunities as they arise.


Market Overview

The period under review was characterised by worrying signals about the health of the globaleconomy, with evidence of a continued slowdown in the Chinese economy and mixed data fromthe US. The bond market in particular, seems most concerned about these developments, withsovereign bond yields continuing their decline through most of the period. The UK stock market,however, shrugged off these concerns to deliver a very robust performance, ending the period closeto its all-time highs.

Market leadership was dominated by the sectors that had performed most poorly in 2015, such asresource-related sectors. These have benefited from a sharp bounce in key commodity prices fromvery depressed levels, which in our view, is not fully justified by economic fundamentals. As such,we have continued to avoid exposure to these parts of the market but this has resulted in achallenging market backdrop for relative fund performance.

Outlook

Turning to the investment outlook, we do not believe that the UK’s decision to leave the EuropeanUnion will have a material impact on the overall trajectory of the UK or world economy. We remaincautious on the economic outlook and believe that there are much greater challenges to face thanBrexit. These include excessive debt, poor demographics, sluggish productivity and the scale of theChinese credit bubble and the implications of its rapid deflation.

Accordingly, we remain reluctant to embrace cyclical risk within the fund. The core of the portfoliois positioned towards attractively-valued, dependable growth opportunities which are capable ofdelivering an attractive income and sustainable growth even in the difficult macroeconomicenvironment that we foresee. Meanwhile, the fortunes of our smaller positions in earlier-stagecompanies with considerable long-term growth potential will be largely determined by their ownprogress, not by macroeconomic factors. On balance, therefore, we remain confident in the fund’sability to deliver attractively positive long-term returns to its investors.

Investment ManagerWoodford Investment Management LLP14 October 2016

Investment Manager’s Report (continued)For the period ended 30 September 2016

136


137


A Income A Accumulation30/09/2016 30/09/2016

(p) (p)

Change in net assets per ShareOpening net asset value per share 100.00** 100.00**Return before operating charges* 5.54 5.54 Operating charges (0.61) (0.61)Return after operating charges 4.93 4.93

Distributions (1.28) (1.28)Retained distributions on accumulation shares – 1.28Closing net asset value per share 103.65 104.93

* after direct transaction costs of : 0.76 0.76

PerformanceReturn after operating charges 4.93% 4.93%

Other informationClosing net asset value (£’000) 85,061 27,038Closing number of shares 82,064,446 25,767,135Operating charges 1.03% 1.03%Direct transaction costs 0.76% 0.76%

Prices (p)Highest share price 107.19 107.18Lowest share price 91.25 91.25

** Share classes A Income and Accumulation launched on 29 February 2016 at a price of 100 pence.





30/09/16Share Class A Income 0.90 0.07 0.06 1.03Share Class A Accumulation 0.90 0.07 0.06 1.03






• The Fund is expected to invest up to 10% of its assets in securities that are not readilytradeable (unlisted securities), which are fair valued by the ACD and may be less liquid thanlisted securities.

Risk Warning






138



139



Chemicals 0.20%801,600 Revolymer 224 0.20

224 0.20

Construction & Materials 1.02%1,637,221 Breedon Aggregates 1,146 1.02

1,146 1.02

Electricity 1.05%385,241 Drax 1,176 1.05

1,176 1.05

Equity Investment Instruments 1.53%276,116 Burford Capital 1,132 1.01 70,344 P2P Global Investments 589 0.52

1,721 1.53

Financial Services 12.66% 248,013 Allied Minds 810 0.72 268,572 Draper Esprit 854 0.76 454,634 Imperial Innovations 1,932 1.72 885,817 IP 1,485 1.32 401,387 Morses Club 421 0.37

1,776,428 Non-Standard Finance 1,279 1.14 186,604 Provident Financial 5,660 5.05 894,300 Redde 1,777 1.58

14,218 12.66

Fixed Line Telecommunications 1.00%1,846,913 CityFibre Infrastructure 1,117 1.00

1,117 1.00

Food Producers 1.03% 49,518 Cranswick 1,158 1.03

1,158 1.03

General Retailers 1.52%35,733 Next 1,707 1.52

1,707 1.52

Health Care Equipment & Services 2.16%3,126,575 Sphere Medical 344 0.31

526,974 Spire Healthcare 2,076 1.85 2,420 2.16

Industrial Engineering 1.23%551,669 Xeros Technology 1,379 1.23

1,379 1.23

Industrial Transportation 1.38%926,739 Stobart 1,543 1.38

1,543 1.38



Life Insurance 4.64%2,377,085 Legal & General 5,199 4.64

5,199 4.64

Media 0.61% 506,667 Time Out 684 0.61

684 0.61

Non-life Insurance 2.63% 281,474 Beazley 1,089 0.97 74,244 Hiscox 774 0.69

161,609 Lancashire 1,083 0.97 2,946 2.63

Pharmaceuticals & Biotechnology 28.36%421,186 4d pharma 3,285 2.93 193,734 AstraZeneca 9,693 8.65

1,657,580 Benchmark 1,044 0.93 451,441 BTG 2,860 2.55

1,143,483 Circassia Pharmaceuticals 1,078 0.96 536,869 GlaxoSmithKline 8,818 7.87 371,328 Horizon Discovery 546 0.49 653,852 Hvivo 1,157 1.03 116,325 Mereo Biopharma 332 0.30 124,000 Midatech Pharma 154 0.14

4,301,230 Tissue Regenix 785 0.70 3,312,933 Vernalis 1,383 1.23

417,688 Verseon 652 0.58 31,787 28.36

Real Estate Investment & Services 2.64%533,808 Phoenix Spree Deutschland * 1,158 1.03 839,678 Purplebricks 1,108 0.99

1,861,120 Raven Russia 693 0.62 2,959 2.64

Real Estate Investment Trust 1.59%538,479 NewRiver * 1,778 1.59

1,778 1.59

Software & Computer Services 1.58%80,450 Micro Focus International 1,768 1.58

1,768 1.58


140


141



Support Services 14.78%588,015 AA 1,739 1.55 275,820 Babcock International 2,855 2.55 949,659 BCA Marketplace 1,705 1.52 375,591 Capita 2,514 2.24

1,231,848 Equiniti 2,454 2.19 742,521 G4S 1,691 1.51 205,810 HomeServe 1,184 1.06 115,538 PayPoint 1,192 1.06 982,819 Utilitywise 1,229 1.10

16,563 14.78

Tobacco 14.94%163,888 British American Tobacco 8,080 7.21 218,086 Imperial Tobacco 8,665 7.73

16,745 14.94

Travel & Leisure 1.09%656,986 Hostelworld 1,227 1.09

1,227 1.09

Unquoted 2.87%350,375 ABLS Capital 270 0.24 425,000 Cambridge Innovation Capital 340 0.30 34,066 Carrick Therapeutics 64 0.06 55,401 Econic Technologies 400 0.36

832,000 Evofem 640 0.57 5,287 Metalysis 400 0.36 4,000 Nexeon 400 0.36

130,890 Viamet Pharmaceuticals Holdings 192 0.17 42,553 Eve Sleep 500 0.45

3,206 2.87

Portfolio of investments 112,671 100.51Net other liabilities (572) (0.51)Net assets 112,099 100.00

* Real Estate Investment Trust.


All investments are ordinary Shares unless otherwise stated and admitted to official stock exchange listings.

Gross purchases for the year: £112,414,000 (See Note 15).

Total sales net of transaction costs for the year: £3,594,000 (See Note 15).


29/02/16 to 30/09/16Note £’000 £’000

IncomeNet capital gains 2 3,845 Revenue 3 1,077 Expenses 4 (351)

Net revenue before taxation 726 Taxation 5 –Net revenue after taxation 726 Total return before distributions 4,571 Distributions 6 (726)Change in net assets


29/02/16 to 30/09/16£’000 £’000

Opening net assets attributable to shareholders –

Amounts receivable on issue of shares 114,942 Amounts payable on cancellation

of shares (7,018)107,924

Change in net assets attributable to shareholders from investment activities (see above) 3,845

Retained distributions on accumulation shares 330 Closing net assets attributable




142


143



30/09/16Note £’000 £’000

AssetsFixed assets:

Investments 112,671 Current assets:

Debtors 7 3,166 Cash and bank balances 63

Total current assets 3,229Total assets 115,900LiabilitiesInvestment liabilities –Creditors:

Bank overdrafts 10 (25)Distribution payable (1,054)Other creditors 9 (2,722)

Total creditors (3,801)Total liabilities (3,801)Net assets attributable


1. Accounting Basis And PoliciesThe Fund’s Financial Statements have been prepared on the basis detailed on pages 11 to 19.


30/09/16£’000

The net capital gains during the period comprise:Forward currency contracts 1 Non-derivative securities 3,866 Transaction charges (22)Net capital gains 3,845


30/09/16£’000

Interest income from Collective Investment Schemes 13 Overseas dividends 125 UK dividends 934 UK property income dividends 5 Total revenue 1,077


30/09/16£’000


AMC fees 321 321


Depositary fees 10Safe custody fees 2

12 Other expensesAudit fees 9 Professional fees 7 Publication fees 2

18 Total expenses 351



144


145


5. Taxation


30/09/16£’000

Total taxation for the period (Note 5 (b)) –


The tax assessed for the period is different from that calculated when the standard rate ofcorporation tax for an open ended investment company of 20% is applied to the net revenuebefore taxation. The differences are explained below:

29/02/16 to30/09/16

£’000

Net revenue before taxation 726 Net revenue for the period multiplied by

the standard rate of corporation tax 145 Effects of:Movement in excess management expenses 67 Revenue not subject to corporation tax (212)Total tax charge for the period –







146


6. Distributions


29/02/16 to30/09/16

£’000

Final 1,384 Add: Revenue paid on cancellation of Shares 63 Deduct: Revenue received on creation of Shares (721)Net distribution for the period 726Reconciliation of net revenue after taxation

to distributionsNet revenue after taxation 726 Net distribution for the period 726


7. Debtors30/09/16

£’000

Accrued revenue 213 Amounts receivable for creation of shares 2,949 Income tax recoverable 2 Overseas withholding tax recoverable 2 Total debtors 3,166


£’000

Cash and bank balances 63Total cash and bank balances 63


147



£’000

Amounts payable for cancellation of shares 15 Purchases awaiting settlement 2,604

2,619Accrued expensesManager and AgentsAMC fees 78

78 Depositary and AgentsDepositary fees 3 Transaction charges 6

9 Other accrued expensesAudit fees 9 Professional fees 5 Publication fees 2

16 Total other creditors 2,722

10. Bank overdrafts30/09/16

£’000

Bank overdrafts 25 Total bank overdrafts 25










148


12. Share classes


%

Share Class A Income 0.90 Share Class A Accumulation 0.90




Share Class A Income – 83,267,288 (1,202,842) – 82,064,446Share Class A Accumulation – 31,551,905 (5,784,770) 25,767,135














149



£’000 £’000


before transaction costsEquities 111,332 Collective investment schemes 621

111,953 Commissions – Equities 57 Commissions – Collective investment schemes 1 Taxes – Equities 400Taxes – Collective investment schemes 3Total purchase costs 461Gross purchase total 112,414


before transaction costsEquities (3,596)

(3,596) Commissions – Equities 2 Taxes – Equities –Total sale costs 2Total sales net of transaction

costs (3,594)





150



29/02/16 to30/09/16


Purchases – CommissionsEquities 0.0512%Collective investment schemes 0.1610%

Purchases – TaxesEquities 0.3593%Collective investment schemes 0.4831%

Sales – CommissionsEquities 0.0556%

Sales – TaxesEquities 0.0000%

29/02/16 to30/09/16





Subsequent to the period end, the Net Asset Value per Share of the Fund has decreasedusing the Share prices at the period end date compared to 30 December 2016.


A Class Accumulation Shares have decreased from 104.87p to 103.09p. This takes intoaccount routine transactions but also reflects the market movements.




Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 109,465 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly – –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability 3,206 –

112,671 –


151




Group 1 Shares purchased prior to 29 February 2016Group 2 Shares purchased on or after 29 February 2016 to 30 September 2016




Share Class A AccumulationGroup 1 1.2809 – 1.2809Group 2 0.9861 0.2948 1.2809

Share classes A Income and Accumulation launched on 29 February 2016.

152

Omnis UK Bond Fund


To achieve a return of a combination of income and capital growth.

Investment Policy

The Fund intends to invest primarily in Sterling denominated government and non-governmentfixed and variable interest rate securities. The Fund may also invest in other transferable securities(for example, foreign currency fixed and variable interest rate securities), units in collectiveinvestment schemes, money market instruments deposits, derivatives and warrants as detailed inthe Prospectus. No more than 10% of the Scheme Property of the Fund will be invested in othercollective investment schemes. Use may also be made of stock lending, temporary borrowing andcash holdings. Derivatives may also be used for the purposes of hedging and efficient portfoliomanagement.

Investment Review

Gross of fees, the fund delivered a positive return. Positions in both government and corporatebonds helped performance.

We have been invested throughout the period with a duration position that was longer than theindex as we expected growth and inflation to remain low; we were also concerned about the effecton growth of the Brexit referendum. Likewise, we have remained broadly positive on corporatecredit relative to gilts and the fund has held more credit risk than the benchmark throughout theperiod. However, we reduced this somewhat as spreads compressed over the course of the yearand valuations became less compelling.

In terms of portfolio activity in the corporate-bond component of the fund, we mainly bought newissues in the third quarter of 2016, when the Bank of England’s (BoE) policy change inspired a rashof new issuance. We typically bought bonds not eligible for the BoE’s purchase programme, whichwe felt offered better value. Additions included new issues from Deutsche Telekom (maturing in2023), US bank Wells Fargo (2025), Bank of America (2025), Credit Suisse (2025), and HSBC(2.625% 2028). Among new positions bought in the secondary market were government-ownedrailway company LCR (2028), German utility company RWE (2030), British defence contractor BAESystems (2022) and Aspire Defence (2040), which develops military facilities. We sold out ofpositions in German industrial-gas company Linde (2066), German engineering group Siemens(2066), National Grid Electricity Transmission (2031), US TV company DirecTV (4.375% 2029),Emirates Bank (2019), and GE Capital (2023), General Electric’s financial-services arm.

Outlook

We expect the UK to experience a period of lower growth going forward into 2017, driven by theuncertainty in the wake of the EU referendum. Inflation should rise modestly driven by a weakercurrency – though this rise is expected to prove transitory in nature.

Market yields are very low and are now more than fully valuing this economic and politicalbackground, though a material correction in gilt yields is not expected given the Bank of England’sbond-buying programme.


153

Omnis UK Bond Fund

Corporate credit remains supported by this easy monetary policy and what are reasonable marketvaluations (spreads). However, this is somewhat tempered by more equity-friendly behaviour andsigns of deteriorating credit quality.

Given this background, we expect returns to be lower in the coming quarter than has been thecase so far this year.

Investment ManagerThreadneedle Asset Management Limited17 October 2016


Outlook (continued)

154

Omnis UK Bond Fund

A Income30/09/2016 30/09/2015 30/09/2014

(p) (p) (p)








155

Omnis UK Bond Fund


ongoing Other Transaction charge








• The Fund appears as a “4” on the scale. This is because the Fund invests in assets thattypically carry medium risk and offer medium rewards compared with other categories ofassets.

Risk Warning







156

Omnis UK Bond Fund


Collective Investment Schemes 1.08% [1.50%]5,727,138 Threadneedle UK Corporate Bond 6,673 1.08

6,673 1.08

Corporate Bonds 30.56% [37.06%]£1,545,000 America Movil 6.375% 06/09/2073 1,651 0.27£1,350,000 American International 5% 26/04/2023 1,571 0.25£1,060,000 Amgen 5.5% 07/12/2026 1,404 0.23£2,535,000 Anheuser-Busch InBev 4% 24/09/2025 3,035 0.49£1,584,000 APT Pipelines 3.5% 22/03/2030 1,686 0.27

£600,000 Asciano Finance 5% 19/09/2023 682 0.11£1,399,458 Aspire Defence Finance 4.674% 31/03/2040 1,774 0.29£1,000,000 AT&T 4.25% 01/06/2043 1,168 0.19£1,541,000 AT&T 4.375% 14/09/2029 1,859 0.30£1,250,000 AT&T 5.5% 15/03/2027 1,634 0.26£1,240,000 Aviva 6.625% 03/06/2041 1,377 0.22

£850,000 Babcock International 1.875% 05/10/2026 843 0.14£1,610,000 BAE Systems 4.125% 08/06/2022 1,844 0.30£5,400,000 Bank Nederlandse Gemeenten 5.75% 18/01/2019 6,034 0.97£1,985,000 Bank of America 2.3% 25/07/2025 1,997 0.32£1,650,000 Bank of America 6.125% 15/09/2021 1,986 0.32

£950,000 Bank of America 7% 31/07/2028 1,370 0.22£2,550,000 Barclays Bank 10% 21/05/2021 3,283 0.53£1,025,000 BAT International Finance 1.75% 05/07/2021 1,056 0.17£1,720,000 BG Energy Capital 6.5% 30/11/2072 1,813 0.29£1,259,000 BHP Billiton Finance 3.25% 25/09/2024 1,407 0.23£2,008,000 BHP Billiton Finance 6.5% 22/10/2077 2,231 0.36£1,200,000 BPCE 5.25% 16/04/2029 1,373 0.22

£701,368 Broadgate Financing 4.949% 05/04/2031 861 0.14£2,166,000 BUPA Finance 3.375% 17/06/2021 2,352 0.38£1,825,000 BUPA Finance 5% 25/04/2023 1,988 0.32£1,185,000 Citigroup 5.125% 12/12/2018 1,275 0.21£2,232,000 Clydesdale Bank 4.625% 08/06/2026 2,856 0.46£1,850,000 Credit Suisse Funding Guernsey 2.75% 08/08/2025 1,821 0.29£1,200,000 Credit Suisse Funding Guernsey 3% 27/05/2022 1,248 0.20

£952,000 Crh Finance UK 4.125% 02/12/2029 1,139 0.18£2,645,000 Deutsche Telekom International Finance 1.25% 06/10/2023 2,618 0.42

£950,000 E.ON International Finance 6.375% 07/06/2032 1,412 0.23£1,820,000 Eastern Power Networks 4.75% 30/09/2021 2,139 0.35£1,005,000 Eversholt Funding 6.359% 02/12/2025 1,370 0.22

£710,000 First Hydro Finance 9% 31/07/2021 945 0.15£950,000 G4S 7.75% 13/05/2019 1,090 0.18

£1,525,000 GKN 6.75% 28/10/2019 1,761 0.28£1,338,000 Glencore Finance Europe 6% 03/04/2022 1,511 0.24£1,870,000 Global Switch 4.375% 13/12/2022 2,106 0.34

£691,779 Greene King Finance 4.0643% 15/03/2035 761 0.12£1,491,000 Greene King Finance 5.106% 15/03/2034 1,768 0.29£1,410,000 Heathrow Funding 5.225% 15/02/2023 1,728 0.28


157

Omnis UK Bond Fund


Corporate Bonds (continued)£1,755,000 HSBC 2.625% 16/08/2028 1,748 0.28£1,200,000 HSBC Bank 5.375% 22/08/2033 1,458 0.24

£760,000 Imperial Tobacco Finance 5.5% 28/09/2026 995 0.16£1,845,000 Imperial Tobacco Finance 7.75% 24/06/2019 2,171 0.35£1,220,000 ING Bank 6.875% 29/05/2023 1,306 0.21

£100,000 innogy Finance 4.75% 31/01/2034 119 0.02£500,000 innogy Finance 6.125% 06/07/2039 709 0.11

£1,790,000 innogy Finance 6.25% 03/06/2030 2,425 0.39£1,700,000 InterContinental Hotels 3.875% 28/11/2022 1,904 0.31

£921,000 JPMorgan Chase 1.875% 10/02/2020 945 0.15£968,800 Juturna European Loan Conduit No 16 5.0636% 10/08/2033 1,180 0.19

£1,700,000 KFW 1% 07/12/2017 1,713 0.28£2,970,000 Kraft Heinz Foods 4.125% 01/07/2027 3,466 0.56£2,100,000 LCR Finance 4.5% 07/12/2028 2,838 0.46£1,540,000 Legal & General 5.375% 27/10/2045 1,622 0.26£1,023,000 Legal & General 5.5% 27/06/2064 1,045 0.17£1,576,000 Legal & General 10% 23/07/2041 2,058 0.33£2,493,000 Lloyds Bank 2.5% 01/06/2022 2,646 0.43£1,114,000 Lloyds Bank 7.625% 22/04/2025 1,469 0.23£1,055,000 London & Quadrant Housing Trust 2.625% 05/05/2026 1,151 0.19£1,484,000 London Power Networks 6.125% 07/06/2027 2,096 0.34

£666,953 Longstone Finance 4.791% 19/04/2036 786 0.13£1,048,452 Meadowhall Finance 4.986% 12/07/2037 1,336 0.22£1,212,000 Metropolitan Life Global Funding I 2.625% 05/12/2022 1,304 0.21£1,048,908 Mitchells & Butlers Finance 5.574% 15/12/2030 1,227 0.20£1,475,000 Mondelez International 4.5% 03/12/2035 1,796 0.29

£440,000 Motability Operations 3.625% 10/03/2036 552 0.09£1,961,000 Motability Operations 4.375% 08/02/2027 2,489 0.40£2,391,000 National Express 6.25% 13/01/2017 2,425 0.39£1,360,000 National Grid Gas Finance 2.125% 22/09/2028 1,406 0.23£1,500,000 National Grid Gas Finance 2.625% 22/09/2038 1,575 0.25£1,300,000 National Grid Gas Finance 2.75% 22/09/2046 1,380 0.22£1,140,000 NGG Finance 5.625% 18/06/2073 1,279 0.21$1,410,000 Noble International 8.2% 01/04/2045 741 0.12£2,279,000 Northern Gas Networks Finance 4.875% 30/06/2027 2,955 0.48£1,090,000 Northern Powergrid Yorkshire 2.5% 01/04/2025 1,182 0.19£1,305,000 Northumbrian Water Finance 1.625% 11/10/2026 1,302 0.21

£485,000 Peabody Capital No 2 4.625% 12/12/2053 696 0.11£1,445,000 Pennon 6.75% Perpetual 1,507 0.24£1,200,000 Places For People Treasury 2.875% 17/08/2026 1,214 0.20

£990,000 Porterbrook Rail Finance 4.625% 04/04/2029 1,234 0.20£243,000 PostNL 7.5% 14/08/2018 273 0.04£370,000 RAC Bond 4.565% 06/05/2023 414 0.07£420,000 RSA Insurance 9.375% 20/05/2039 490 0.08

£2,206,000 Scentre 2.375% 08/04/2022 2,313 0.37£580,000 Scotland Gas Networks 3.25% 08/03/2027 658 0.11


158

Omnis UK Bond Fund


Corporate Bonds (continued)£725,000 Segro 6.75% 23/11/2021 916 0.15

£1,695,000 SGSP Australia Assets 5.125% 11/02/2021 1,958 0.32$653,000 SGSP Australia Assets Pty 3.25% 29/07/2026 509 0.08£800,000 Sky 6% 21/05/2027 1,087 0.18£630,000 South East Water Finance 5.5834% 29/03/2029 839 0.14£457,000 Southern Gas Networks 2.5% 03/02/2025 491 0.08

£1,060,000 Stagecoach 4% 29/09/2025 1,193 0.19£1,000,000 Standard Chartered 4.375% 18/01/2038 1,157 0.19

£625,000 TDC 5.625% 23/02/2023 697 0.11£2,850,000 Telereal Securitisation 4.0902% 10/12/2033 2,975 0.48£1,246,430 Telereal Securitisation 5.9478% 10/12/2033 1,557 0.25£2,700,000 Temasek Financial I 4.625% 26/07/2022 3,271 0.53

£545,000 Tesco 5.5% 13/12/2019 601 0.10£340,904 Tesco Property Finance 1 7.6227% 13/07/2039 411 0.07£893,000 Thames Water Utilities Cayman Finance 3.5% 25/02/2028 1,050 0.17

£2,810,000 Thames Water Utilities Cayman Finance 5.375% 21/07/2025 2,894 0.47£900,000 Time Warner Cable 5.75% 02/06/2031 1,094 0.18

£1,725,000 Transport for London 2.125% 24/04/2025 1,857 0.30£1,315,000 TSB Banking 5.75% 06/05/2026 1,385 0.22

£640,000 UNITE USAF II 3.921% 30/06/2030 741 0.12£1,475,000 Verizon Communications 4.75% 17/02/2034 1,902 0.31

£530,000 Vicinity Centres 3.375% 07/04/2026 591 0.10£2,475,000 Virgin Money 2.25% 21/04/2020 2,507 0.401,400,000Vonovia Finance 4% Perpetual 1,281 0.21£2,224,000 Wells Fargo 2% 28/07/2025 2,227 0.36£1,000,000 Welltower 4.8% 20/11/2028 1,208 0.20£1,630,000 Western Power Distribution 3.625% 06/11/2023 1,807 0.29£1,735,000 Western Power Distribution South West 5.875% 25/03/2027 2,397 0.39

£475,000 Western Power Distribution West Midlands 3.875% 17/10/2024 557 0.09£750,000 Western Power Distribution West Midlands 6% 09/05/2025 1,015 0.16

£1,795,000 Wm Morrison Supermarkets 4.625% 08/12/2023 2,044 0.33£585,000 WPP Finance 2013 2.875% 14/09/2046 562 0.09£880,000 Yorkshire Water Services Bradford Finance 6% 24/04/2025 901 0.15

189,107 30.56

Government Bonds 65.11% [54.32%]£7,000,000 UK Treasury 0.5% 22/07/2022 7,051 1.14£5,000,000 UK Treasury 1% 07/09/2017 5,039 0.81£35,473,000UK Treasury 1.5% 22/01/2021 37,382 6.04£27,735,000United Kingdom Gilt 1.5% 22/07/2026 29,676 4.79£5,001,000 UK Treasury 1.5% 22/07/2047 5,039 0.81£16,000,000UK Treasury 1.75% 22/01/2017 16,077 2.60£3,429,000 UK Treasury 2% 22/07/2020 3,663 0.59£15,916,000UK Treasury 2% 07/09/2025 17,765 2.87£5,020,000 UK Treasury 2.25% 07/09/2023 5,645 0.91


159

Omnis UK Bond Fund


Government Bonds (continued)£10,916,500UK Treasury 2.5% 22/07/2065 15,098 2.44£19,393,000UK Treasury 3.25% 22/01/2044 26,937 4.35£19,011,000UK Treasury 3.5% 22/01/2045 27,739 4.48£11,003,000UK Treasury 3.5% 22/07/2068 19,429 3.14£1,921,000 UK Treasury 3.75% 22/07/2052 3,161 0.51£5,210,000 UK Treasury 4% 22/01/2060 9,612 1.55£2,260,000 UK Treasury 4.25% 07/06/2032 3,252 0.53£16,743,000UK Treasury 4.25% 07/03/2036 25,027 4.04£13,714,000UK Treasury 4.25% 07/09/2039 21,162 3.42£10,963,000UK Treasury 4.25% 07/12/2040 17,151 2.77£7,340,000 UK Treasury 4.25% 07/12/2046 12,230 1.98£2,587,000 UK Treasury 4.25% 07/12/2049 4,477 0.72£32,600,000UK Treasury 4.5% 07/03/2019 36,102 5.83£21,905,000UK Treasury 4.5% 07/09/2034 33,105 5.35£8,330,000 United Kingdom Gilt Inflation Linked 0.125% 22/11/2019 9,573 1.55£2,370,000 United Kingdom Gilt Inflation Linked 2.5% 16/04/2020 8,783 1.42£2,633,000 United Mexican States Treasury 5.625% 19/03/2114 2,929 0.47

403,104 65.11

Municipal Bonds 0.25% [0.53%]£1,164,000 University of Liverpool 3.375% 25/06/2055 1,562 0.25

1,562 0.25

Forward Currency Contracts (0.02)% [(0.01)%]Bought EUR17,000 for GBP14,421 Settlement 05/12/2016 0 0.00Bought USD18,000 for GBP13,770 Settlement 05/12/2016 0 0.00Sold EUR1,586,000 for GBP1,335,100 Settlement 05/12/2016 (39) (0.01)Sold USD1,846,000 for GBP1,378,304 Settlement 05/12/2016 (41) (0.01)

(80) (0.02)Portfolio of investments 600,366 96.98Net other assets 18,701 3.02Net assets 619,067 100.00


All investments are ordinary bonds unless otherwise stated.


Gross purchases for the year: £633,509,000 [2015: £497,388,000].

Total sales net of transaction costs for the year: £450,501,000 [2015: £295,527,000].


160

Omnis UK Bond Fund

Credit Ratings as at 30 September 2016

% of TotalNet Assets

Bond RatingAAA 2.19AA 66.42A 8.19BBB 19.18<BBB 0.40Not rated 0.43Bonds 96.81Uninvested Cash 3.19Net Assets 100.00

The above information has been supplied by the Investment Manager. Bonds not rated are ofinvestment grade, but rating not sought by issuer.


161

Omnis UK Bond Fund

01/10/15 to 30/09/16 01/10/14 to 30/09/15Note £’000 £’000 £’000 £’000

IncomeNet capital gains 2 55,234 9,168Revenue 3 11,584 7,573 Expenses 4 (2,354) (1,395)Interest payable and similar charges 5 (1) (1)

Net revenue before taxation 9,229 6,177 Taxation 6 – –Net revenue after taxation 9,229 6,177Total return before distributions 64,463 15,345Distributions 7 (9,229) (6,177)Change in net assets

attributable to shareholdersfrom investment activities 55,234 9,168

01/10/15 to 30/09/16 01/10/14 to 30/09/15£’000 £’000 £’000 £’000


Amounts receivable on issue of shares 174,545 215,010 Amounts payable on cancellation

of Shares (1,422) (2,917)173,123 212,093

Change in net assets attributableto shareholders from investment activities (see above) 55,234 9,168




162

Omnis UK Bond Fund

30/09/16 30/09/15Note £’000 £’000 £’000 £’000

AssetsFixed assets:




Investment liabilities (80) (77)Creditors:

Distribution payable (5,119) (4,114)Other creditors 10 (5,040) (7,555)

Total creditors (10,159) (11,669)Total liabilities (10,239) (11,746)Net assets attributableto Shareholders 619,067 390,710


163

Omnis UK Bond Fund

1. Accounting Basis And Policies



30/09/16 30/09/15£’000 £’000

The net capital gains during the year comprise:Currency (losses)/gains (5) 89Forward currency contracts (381) (8)Non-derivative securities 55,626 9,095Transaction charges (6) (8)Net capital gains 55,234 9,168

3. Revenue01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000

Bank interest 3 22Interest from debt securities 11,275 7,300Interest income from Collective Investment Schemes 231 234Rebates received from underlying funds 75 17Total revenue 11,584 7,573

4. Expenses01/10/15 to 01/10/14 to

30/09/16 30/09/15£’000 £’000


AMC fees 2,168 1,2802,168 1,280




26 19Total expenses 2,354 1,395


Notes to the Financial Statements For the year ended 30 September 2016

164

Omnis UK Bond Fund


30/09/16 30/09/15£’000 £’000

Interest 1 1Total interest payable and similar charges 1 1

6. Taxation


30/09/16 30/09/15 £’000 £’000

Total taxation for the year (Note 6 (b)) – –



01/10/15 to 01/10/14 to 30/09/16 30/09/15

£’000 £’000

Net revenue before taxation 9,229 6,177Net revenue for the year multiplied by the standard

rate of corporation tax 1,846 1,235Effects of:Tax deductible interest distributions (1,846) (1,235)Total tax charge for the year – –





165

Omnis UK Bond Fund

7. Distributions


01/10/15 to 01/10/14 to30/09/16 30/09/15

£’000 £’000

Interim 3,878 2,439Final 4,193 3,381Add: Revenue paid on cancellation of Shares 9 24Deduct: Revenue received on creation of Shares (697) (902)Income tax withheld at source 1,846 1,235Net distribution for the year 9,229 6,177Reconciliation of net revenue after taxation

to distributionsNet revenue after taxation 9,229 6,177Net distribution for the year 9,229 6,177


8. Debtors30/09/16 30/09/15

£’000 £’000

Accrued revenue 4,382 3,793Amounts due for rebates from underlying funds 8 17Amounts receivable for creation of shares 4,779 1,909Sales awaiting settlement 5,894 4,438Prepaid expenses 2 2Total debtors 15,065 10,159


£’000 £’000

Cash and bank balances 13,765 27,301Amount held at futures clearing houses and brokers 30 –Total cash and bank balances 13,795 27,301


166

Omnis UK Bond Fund

10. Other creditors30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares – 2,604Purchases awaiting settlement 4,783 4,769














167

Omnis UK Bond Fund

12. Share Classes


%















168

Omnis UK Bond Fund



The table below shows the interest rate risk profile at the balance sheet date:



30/09/16Euro 48 1,281 38 1,368Sterling 13,649 591,242 24,343 626,549US Dollar 98 1,250 41 1,389Total 13,795 – 615,511 629,30630/09/15Euro – 986 33 1,019Sterling 27,252 356,149 15,945 399,346US Dollar 50 1,990 51 2,091Total 27,302 359,125 16,029 402,456

Floating rate Fixed rate Financialfinancial financial liabilities notliabilities liabilities carrying interest Total


30/09/16Euro – – 40 40Sterling – – 10,158 10,158US Dollar – – 41 41Total – – 10,239 10,23930/09/15Euro – – 11 11Sterling – – 11,669 11,669US Dollar – – 66 66Total – – 11,746 11,746



169

Omnis UK Bond Fund

15. Portfolio transaction costs

There were no broker transaction costs incurred during the year to 30 September 2016(30/09/15: nil).

As at the balance sheet date the average dealing spread was 0.66% (2015: 0.34%).







Valuation techniqueLevel 1: The unadjusted quotedprice in an active market foridentical assets or liabilities 400,175 – 209,777 –Level 2: Inputs other than quotedprices included within Level 1 thatare observable for the asset orliability, either directly or indirectly 200,271 (80) 155,219 (77)Level 3: Inputs are unobservable(ie for which market data isunavailable) for the asset or liability – – – –

600,446 (80) 364,996 (77)


170

Omnis UK Bond Fund



Distribution DistributionGross Income Net paid paid




Group 1 Shares purchased prior to 1 April 2016Group 2 Shares purchased on or after 1 April to 30 September 2016

Distribution DistributionGross Income Net payable paid




171



Investment Policy

The Fund intends to invest primarily in companies incorporated in, or significantly exposed to, theUnited Kingdom. The Fund may also invest in other transferable securities (for example,international equities), units in collective investment schemes, money market instruments, warrantsand deposits as detailed in the Prospectus. No more than 10% of the Scheme Property of the Fundwill be invested in other collective investment schemes.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives mayalso be used for the purpose of hedging and efficient portfolio management.

Investment Review

At the sector level, stock selection in the mining sector (where we held Rio Tinto and BHP Billitonbut not Glencore or Anglo American, both of which rose sharply) had the most significant negativeimpact on relative performance. Stock selection in the media sector was also detrimental, notablyour holdings in Pearson and ITV. The impact of not owning SAB Miller and technology companyARM was detrimental as each strongly outperformed the market after takeover bids from AB Inbevand Japan’s SoftBank respectively.

On the positive side, stock selection in the travel & leisure sector was strong; principally not owningany airlines but in particular our position in Intercontinental Hotels Group which re-rated on newsof hotel industry consolidation. Stock selection within oil and gas was positive as BG’s bid (whichwe were overweight) by Royal Dutch Shell completed in February. Internationally diversifiedindustrials such as marine service specialist James Fisher and Sons, pest control and facilitiesmanager Rentokil Initial, specialist engineer Spirax Sarco and oil services company Weir Group allperformed well as their overseas earnings are set to benefit from sterling weakness. Not owningreal estate investment trusts was beneficial as the sector was weak.

Turning to activity, in February we received shares and cash in exchange for our shares in BG Grouppost merger with Royal Dutch Shell (also owned). We see substantial synergies within the combinedgroup, the potential to grow earnings and to improve cash flow as oil prices stabilise. We also addedto our positions in Royal Dutch Shell and BP on share price weakness. We sold out of the positionin Premier Oil towards the end of the period.

Within the consumer sector we sold out of Greggs (the baker), First Group (the bus and railcompany), Pets at Home and Home Retail Group – we took cash following the bid by Sainsburys.Proceeds were used to increase the position in British American Tobacco and add to our holdingsin specialty pharmaceutical companies Shire and BTG. We exited our holding in Barclays due to thedeteriorating outlook for its investment banking division using proceeds to add to our holding inLloyds Banking Group.

We initiated a new holding in attractively valued luxury goods company Burberry where we seepotential for recovery. We switched out of Investec into Man Group within financials.

Omnis UK Equity Fund


172


Market Overview

UK equities experienced pronounced volatility over the period. Having initially staged a strongrecovery at the start of the period, they struggled to make further progress as 2015 drew to a close,and fell sharply at the start of 2016, amid uncertainty around the likely consequences of a US interestrate hike. However, risk appetite returned mid February 2016 as markets welcomed new stimulusfrom some of the world’s major central banks as concerns over global growth prospects grew.

The result of the UK’s European Union referendum surprised the market and led to wide variationsin individual stock and sector performance in the immediate aftermath. UK equities have sinceenjoyed strong returns amid a general return in risk appetite in anticipation that monetary policyglobally would be kept looser for longer and as sterling’s weakness boosts the overseas profits ofmany market constituents. Investors were also reassured by a more stable political backdrop andcomments from the new Chancellor of the Exchequer who said UK fiscal policy could be “reset” atthe Autumn Statement to counteract an economic slowdown. The Bank of England launched a seriesof monetary easing measures, which, while widely anticipated, were more extensive than expected.

Outlook

We have witnessed a reassessment of some of the knee-jerk forecasts changes and pricemovements within the market in the immediate aftermath of the Brexit vote. The impact on UKeconomic activity is probably only moderately negative this year, but risks remain for 2017depending on progress in Brexit talks with the EU and the political backdrop both in the UK and inEurope. With this uncertainty, it would not be surprising if business investment is the area that seesthe most restraint. It has not bounced back like other economic activity indicators and remainsweak, which may ultimately feed into higher unemployment and reduced consumer spending.Sterling weakness will be felt by consumers in higher energy and imported goods prices which willerode their spending power.

It is also important to consider the limitations of UK monetary policy given that interest rates standat 0.25%. This leaves the Bank of England with very little ammunition, particularly when it has saidit is not willing to pursue negative rates. The government could therefore turn to expansionaryfiscal policy, meaning tax cuts and/or infrastructure spending.

Looking at the UK equity market, overall valuations look full. When measured in absolute termsand in a historical context, this reflects quantitative easing which has suppressed yields on otherassets. Valuation differentials remain wide. In the UK equity market high valuations are ascribed todefensive (beverages, consumer staples) and growth stocks and low valuations to companies whoseprospects are less certain (housebuilders, banks). Future growth remains muted, whilst the potentialrelative risks mentioned above are on the horizon. However, the fall in the value of sterling togetherwith the rise in oil and commodity prices is leading to a turn in the earnings cycle – from downgradesto upgrades – for the market through the second half of 2016 and into 2017. This may lead to anarrowing of valuation differentials. We also expect to see a continued pick-up in merger andacquisition activity with the availability of cheap financing, the weaker currency and companiesstruggling to grow organically.

We were comfortable with the shape of the portfolio in the lead-up to the EU referendum but havebeen prepared to make changes where opportunities have arisen consistent with our focus on long-term shareholder value. We have kept faith in stocks with short-term issues provided we haveconviction in the long-term investment case (ITV, Legal & General, BT, Vodafone, housebuilders).

Investment ManagerSchroder Investment Management Limited14 October 2016


173


A Income30/09/2016 30/09/2015 30/09/2014

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 90.51 97.38 100.00 Return before operating charges* 12.24 (3.42) (0.47)Operating charges (0.64) (0.69) (0.41)Return after operating charges 11.60 (4.11) (0.88)



PerformanceReturn after operating charges 12.82% (4.22%) (0.88%)




174



174










• The Fund appears as a “5” on the scale. This is because the Fund invests in assets thattypically carry medium risk and offer medium rewards compared with other categories ofassets.

Risk Warning






175



Aerospace & Defence 1.83% [2.74%]1,783,112 Rolls-Royce 12,838 1.83

12,838 1.83

Banks 7.95% [10.24%]4,919,603 HSBC 28,470 4.05

29,754,361 Lloyds Banking 16,231 2.31 1,773,544 Standard Chartered 11,143 1.59

55,844 7.95

Equity Investment Instruments 0.39% [0.00%]269,968 HarbourVest Global Private Equity 2,759 0.39

2,759 0.39

Financial Services 5.24% [5.03%]3,309,890 ICAP 15,424 2.20 1,315,901 International Personal Finance 3,421 0.49 5,764,984 Man 6,491 0.92 1,694,799 SVG Capital 11,474 1.63

36,810 5.24

Fixed Line Telecommunications 2.95% [2.75%]5,317,771 BT 20,689 2.95

20,689 2.95

Food & Drug Retailers 2.02% [2.91%]7,764,004 Tesco 14,193 2.02

14,193 2.02

Gas, Water & Multi-utilities 1.92% [1.83%]5,909,621 Centrica 13,486 1.92

13,486 1.92

General Retailers 0.70% [2.74%]1,394,355 Halfords 4,886 0.70

4,886 0.70

Household Goods & Home Construction 2.05% [2.00%]817,351 Bovis Homes 7,144 1.02

1,808,931 Redrow 7,236 1.03 14,380 2.05

Industrial Engineering 2.02% [1.45%]174,095 Spirax-Sarco Engineering 7,826 1.11 378,084 Weir 6,427 0.91

14,253 2.02

Industrial Metals & Mining 0.00% [0.06%]Industrial Transportation 1.05% [0.76%]

453,299 James Fisher & Sons 7,384 1.05 7,384 1.05


176



Leisure Goods 0.71% [0.81%]3,237,918 Photo-Me 5,011 0.71

5,011 0.71

Life Insurance 8.71% [11.06%]3,870,677 Aviva 17,046 2.43 4,080,426 Just Retirement 5,468 0.78 6,930,580 Legal & General 15,157 2.16 1,718,633 Prudential 23,477 3.34

61,148 8.71

Media 7.49% [7.63%]1,251,646 Daily Mail & General Trust 9,312 1.33 8,579,280 ITV 16,052 2.28

915,520 Pearson 6,894 0.98 1,394,896 RELX 20,407 2.90

52,665 7.49

Mining 4.42% [4.91%]621,215 BHP Billiton 7,219 1.03 925,401 Rio Tinto 23,824 3.39

31,043 4.42

Mobile Telecommunications 4.32% [4.21%]13,674,514 Vodafone 30,316 4.32

30,316 4.32

Oil & Gas Producers 11.68% [9.78%]5,616,625 BP 25,272 3.60

75,122 Royal Dutch Shell ‘A’ Shares 1,437 0.20 2,771,957 Royal Dutch Shell ‘B’ Shares 55,356 7.88

82,065 11.68

Oil Equipment, Services & Distribution 0.93% [0.85%]863,206 Wood (John) 6,552 0.93

6,552 0.93

Personal Goods 4.07% [2.27%]516,858 Burberry 7,122 1.01 588,452 Unilever 21,502 3.06

28,624 4.07

Pharmaceuticals & Biotechnology 11.65% [8.88%]538,658 AstraZeneca 26,949 3.84 940,294 BTG 5,957 0.85

2,068,846 GlaxoSmithKline 33,981 4.84 297,402 Shire 14,863 2.12

81,750 11.65

Real Estate Investment & Services 1.05% [1.06%]3,201,525 Grainger 7,360 1.05

7,360 1.05


177



Support Services 2.04% [2.11%]6,448,748 Rentokil Initial 14,323 2.04

14,323 2.04

Tobacco 8.27% [6.54%]689,914 British American Tobacco 34,013 4.84 605,966 Imperial Tobacco 24,075 3.43

58,088 8.27

Travel and Leisure 4.31% [6.24%]400,484 Carnival 15,082 2.15

1,272,372 Dart 5,331 0.76 309,945 InterContinental Hotels 9,856 1.40

30,269 4.31 Portfolio of investments 686,736 97.77Net other assets 15,629 2.23Net assets 702,365 100.00







178


01/10/15 to 30/09/16 01/10/14 to 30/09/15Note £’000 £’000 £’000 £’000

IncomeNet capital gains/(losses) 2 56,747 (40,414)Revenue 3 23,788 13,458 Expenses 4 (4,034) (2,572)

Net revenue before taxation 19,754 10,886 Taxation 5 (3) –Net revenue after taxation 19,751 10,886 Total return before distributions 76,498 (29,528)Distributions 6 (19,751) (10,886)Change in net assets

attributable to Shareholdersfrom investment activities 56,747 (40,414)

01/10/15 to 30/09/16 01/10/14 to 30/09/15£’000 £’000 £’000 £’000

Opening net assets attributable to Shareholders 470,014 224,292

Amounts receivable on issue of Shares 182,220 286,904

Amounts payable on cancellation of Shares (6,616) (768)

175,604 286,136 Change in net assets attributable

to Shareholders from investment activities (see above) 56,747 (40,414)

Closing net assets attributable to Shareholders 702,365 470,014



179


30/09/16 30/09/15Note £’000 £’000 £’000 £’000

Assets:Fixed assets:




Investment liabilities – –Creditors:

Distribution payable (13,106) (9,185)Other creditors 9 (403) (297)




180


1. Accounting Basis And Policies



30/09/16 30/09/15 £’000 £’000

The net capital gains/(losses) during the year comprise:Currency gains 7 3 Non-derivative securities 56,746 (40,405)Transaction charges (6) (12)Net capital gains/(losses) 56,747 (40,414)

3. Revenue01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000

Bank interest 7 15 Overseas dividends 43 601 Scrip dividends 1,745 588 UK dividends 21,993 12,254 Total revenue 23,788 13,458

4. Expenses01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000


AMC fees 3,819 2,435 3,819 2,435


Depositary fees 156 96 Safe custody fees 29 19

185 115 Other expensesAudit fees 9 9 Professional fees 19 7 Publication fees 2 6

30 22 Total expenses 4,034 2,572 Audit fees are £7,550 ex VAT (2015: £7,350).


181


5. Taxation01/10/15 to 01/10/14 to

30/09/16 30/09/15 £’000 £’000

(a) Analysis of the tax charge in the year

Irrecoverable overseas tax 3 –Total taxation for the year (Note 5 (b)) 3 –



01/10/15 to 01/10/14 to 30/09/16 30/09/15

£’000 £’000

Net revenue before taxation 19,754 10,886 Net revenue for the year multiplied by the

standard rate of corporation tax 3,951 2,177 Effects of:Irrecoverable overseas tax 3 –Movement in excess management expenses 804 511 Revenue not subject to corporation tax (4,755) (2,688)Total tax charge for the year 3 –





At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £1,419,133 (2015: £615,242) in relation to surplus management expenses. It isunlikely that the Fund will generate sufficient taxable profits in the future to utilise this amountand therefore no deferred tax asset has been recognised in the year.


182


6. Distributions


01/10/15 to 01/10/14 to 30/09/16 30/09/15

£’000 £’000

Interim 7,878 3,726 Final 13,106 9,185 Add: Revenue paid on cancellation of Shares 69 4 Deduct: Revenue received on creation of Shares (1,302) (2,029)Net distribution for the year 19,751 10,886 Reconciliation of net revenue after taxation

to distributionsNet revenue after taxation 19,751 10,886 Net distribution for the year 19,751 10,886


7. Debtors30/09/16 30/09/15

£’000 £’000

Accrued revenue 887 883 Amounts receivable for creation of shares 4,479 5,476 Overseas withholding tax recoverable 2 –Prepaid expenses 2 2 Total debtors 5,370 6,361


£’000 £’000



183


9. Other creditors30/09/16 30/09/15

£’000 £’000

Accrued expensesManager and AgentsAMC fees 371 253

371 253 Depositary and AgentsDepositary fees 16 9 Safe custody fees 5 14 Transaction charges 1 9

22 32 Other accrued expensesAudit fees 9 9 Professional fees – 1 Publication fees 1 2

10 12 Total other creditors 403 297










184


11. Share Classes


%


















185



£’000 £’000 £’000 £’000



236,316 324,480 Commissions – Equities 156 181 Taxes – Equities 1,090 1,564 Total purchase costs 1,246 1,745 Gross purchase total 237,562 326,225 Analysis of total sale costsGross sales in the year


61,048 41,066 Commissions – Equities (53) (31)Total sale costs (53) (31)Total sales net of transaction

costs 60,995 41,035



01/10/15 to 01/10/14 to30/09/16 30/09/15






01/10/15 to 01/10/14 to30/09/16 30/09/15



At the balance sheet date the average portfolio dealing spread was 0.05% (2015: 0.08%).








Valuation techniqueLevel 1: The unadjusted quoted price in an active market for identical assets or liabilities 686,736 – 464,642 –Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly – – – –Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – – – –

686,736 – 464,642 –

186



187













188

Omnis US Equity Fund



Investment Policy

The Fund intends to invest primarily in companies incorporated in, or significantly exposed to, theUnited States of America. The Fund may also invest in other transferable securities (for example,other international equities), units in collective investment schemes, money market instruments,warrants and deposits as detailed in the Prospectus. No more than 10% of the Scheme Property ofthe Fund will be invested in other collective investment schemes.


Investment Review

The objective of the US Equity portfolio is to achieve capital growth by investing in companiesincorporated in the United States of America. The investment team uses a stock selection processdriven by fundamental research and a stringent risk control framework.

On a sector basis, Information Technology, Healthcare and Materials detracted from performance,but strong relative results from the Consumer Discretionary, Industrials and Energy sectors partiallyoffset the weak results.

Among industries, investments in internet & direct marketing retails, road & rail and oil, gas &consumable fuels benefited performance, while relative weakness in software, biotechnology andchemicals detracted from relative results.

New Positions

• Union Pacific Corp (UNP): We initiated a position as its industry structure remains quiteattractive with effective duopolies in the western US, eastern US and Canada. This willcontinue to support a positive pricing environment unique in the broader Industrials.Furthermore, the company represents the purest play in the group with limited noise aroundmergers and acquisitions (M&A).

• Charter Communications, Inc.: We believe the company is poised to benefit from theiracquisition of both TWC and Brighthouse. The acquisitions will create significant synergiesand free cash flow opportunities once the bond and stock deal is finalized.

• Texas Instruments Incorporated: We expect the company to have structurally highergross margins and cash flows going forward due to its disciplined operating style, betterbusiness prospects and less capital spending.

• Pioneer Natural Resources Company: We initiated a position given its reputation as a high-quality company with a number of near-term growth opportunities. Gas demand is at a10-year high, and we see this as a solid entry point.

• Workday, Inc.: The company continues to report solid earnings, and the potential forcapturing opportunities in financials is strengthening. Workday has grown its customer base,and they announced a deal with their largest financials customer during the period.


189


Investment Review (continued)

Closed holdings

• LinkedIn Corporation Class A: We sold our position as 60% of revenues come from talentsolutions, an area which is starting to show signs of saturation at the high end. Furthermore,customers are terminating licenses after failing to see a return on their investments. Marginsare weakening, and marketing expenses are outpacing sales.

• AbbVie, Inc.: We sold our position after a run of solid performance during a time when theirbiotech peers were down considerably. The stock should be entering a quiet period untilpatent challenges arise for their key drug Humira next year.

• Bristol-Myers Squibb Company: Shares fell when their lung cancer treatment Opdivo didnot show a statistically significant improvement in survival rates. This will ultimately allowcompetitors to gain ground in lung and other tumour treatments. Given these results andlack of a near-term catalyst, we exited the position and reallocated the capital.

• PepsiCo, Inc.: We sold our position following negative publicity surrounding socialresponsibility following which an activist investor said it would exit their position. Althoughwe believe this is only a modest negative, we see limited near-term upside and havereallocated the capital to more attractive opportunities.

• Marsh & McLennan Companies, Inc.: The company continues to execute well, and capitalmanagement is expected to remain solid. However, we sold our position as we do not seemany near-term catalysts and feel as though any positive news has already been priced in.

Market Overview

Most major benchmarks posted positive returns over the 12-month period. The reporting periodbegan with the US Federal Reserve (the Fed) ending their multi-year experiment with near-zerointerest rates, citing substantial improvement in labour market conditions. The Fed subsequentlydelayed any additional rate hikes amid global volatility created by the unexpected Brexit vote andmixed US economic data.

The UK’s unexpected vote to leave the EU dominated headlines and drove the pound lower. It hasrecently rebounded thanks to swift policy action from the Bank of England (BoE) and EuropeanCentral Banks (ECB). The Bank of Japan continued to experiment with new policy measures as itstruggled to meet its inflation and growth targets. China continues to pose challenges to investors.Manufacturing growth slowed over the period, and outflows in capital markets increased. Meanwhile,Brazil saw the long-awaited end to the impeachment trial of Dilma Rousseff and a bottoming of therecession after five consecutive quarters of negative growth.


190



Outlook

Going into the final quarter of the year, investors seem hesitant to make a directional call on themarkets, concerned about tepid global growth, timing of interest rate increases and the USpresidential election. Although the Fed passed on tightening in the third quarter it will begin tonormalise rates at some point, possibly before year end. With defaults rising, corporate creditspreads may widen but they remain reasonable for now. As oil prices trend higher on an OPEC dealto cut production and dollar strength abating, the outlook for earnings has improved.

US consumer income and spending data suggest consumer spending growth continues to be solid.More broadly, global growth may be moving toward a more solid footing. While headwinds such asBrexit and a flattening US yield curve exist, there are more threats building. These include risinginventory levels, Eurozone retail sales and new rounds of monetary stimulus. US growth remainson a slow but steady pace, while China’s manufacturing levels continued to trend higher inSeptember, and there was positive news from Europe, such as better-than-expected UK exportorders and Eurozone manufacturing reaching a seven-month high in August.

Investment ManagerBNY Mellon Investment Management EMEA Limited19 October 2016

191


A Income30/09/2016 30/09/2015 30/09/2014

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 111.13 102.61 100.00Return before operating charges* 31.78 9.70 3.28Operating charges (0.87) (0.80) (0.41)Return after operating charges 30.91 8.90 2.87







192












Risk Warning







193




Aerospace & Defence 2.84% [2.77%]60,176 Raytheon 6,306 1.6558,211 United Technologies 4,552 1.19

10,858 2.84

Automobile & Parts 1.71% [1.82%]65,069 Delphi Automotive 3,572 0.9319,105 Tesla Motors 2,998 0.78

6,570 1.71

Beverages 4.29% [3.83%]297,800 Coca-Cola 9,702 2.5479,378 Molson Coors Brewing 6,710 1.75

16,412 4.29

Chemicals 1.30% [0.91%]124,263 Dow Chemical 4,957 1.30

4,957 1.30

Construction & Materials 2.14% [1.35%]21,046 Sherwin-Williams 4,481 1.1742,355 Vulcan Materials 3,708 0.97

8,189 2.14

Financial Services 7.40% [6.21%]20,429 BlackRock 5,697 1.4930,909 Intercontinental Exchange 6,407 1.68

191,603 Synchrony Financial 4,129 1.08189,433 Visa 12,060 3.15

28,293 7.40

Fixed Line Telecommunications 0.00% [2.07%]

Food & Drug Retailers 1.09% [3.10%]69,780 Cardinal Health 4,174 1.09

4,174 1.09

Food Producers 2.29% [3.96%]118,728 ConAgra Foods 4,305 1.1374,106 Kellogg 4,419 1.16

8,724 2.29

General Industrials 4.71% [3.78%]88,094 Danaher 5,315 1.3975,059 Fortive 2,940 0.77

108,488 Honeywell 9,735 2.5517,990 4.71


194


General Retailers 12.29% [7.19%]26,964 Amazon.com 17,376 4.5461,329 Costco Wholesale 7,200 1.8897,690 Home Depot 9,677 2.53

125,609 TJX Cos 7,230 1.8930,378 Ulta Salon Cosmetics & Fragrance 5,564 1.45

47,047 12.29

Health Care Equipment & Services 7.00% [2.99%]270,140 Boston Scientific 4,947 1.2995,775 Centene 4,936 1.2992,874 DENTSPLY SIRONA 4,249 1.1169,495 Medtronic 4,623 1.2174,520 UnitedHealth 8,031 2.10

26,786 7.00

Industrial Transportation 2.54% [1.34%]129,138 Union Pacific 9,695 2.54

9,695 2.54

Media 5.58% [4.87%]121,835 CBS 5,129 1.3425,929 Charter Communications 5,387 1.41

173,510 Comcast 8,860 2.32112,629 Interpublic 1,936 0.51

21,312 5.58

Non-life Insurance 1.13% [1.23%]179,069 Progressive 4,341 1.13

4,341 1.13

Oil & Gas Producers 0.85% [0.00%]22,706 Pioneer Natural Resources 3,244 0.85

3,244 0.85

Oil Equipment, Services & Distribution 1.07% [1.00%]35,814 Schlumberger 2,168 0.57

137,803 Superior Energy Services 1,899 0.504,067 1.07

Personal Goods 2.96% [6.31%]84,607 Estee Lauder 5,767 1.51

284,620 Hanesbrands 5,532 1.4511,299 2.96


195




Pharmaceuticals & Biotechnology 8.49% [10.77%]27,516 Allergan 4,879 1.2874,645 BioMarin Pharmaceutical 5,316 1.3991,771 Celgene 7,384 1.93

103,154 Eli Lilly & Co 6,371 1.6747,205 Neurocrine Biosciences 1,840 0.4825,288 TESARO 1,951 0.5170,180 Vertex Pharmaceuticals 4,711 1.23

32,452 8.49

Software & Computer Services 18.72% [18.93%]15,817 Alphabet ‘A’ Shares 9,790 2.5621,610 Alphabet ‘C’ Shares 12,923 3.3881,228 Citrix Systems 5,329 1.39

173,443 Facebook 17,124 4.4865,319 Intuit 5,531 1.45

277,156 Oracle 8,379 2.19107,775 salesforce.com 5,917 1.5546,211 Splunk 2,087 0.5586,851 Teradata 2,073 0.5434,083 Workday 2,405 0.63

71,558 18.72

Support Services 1.45% [0.87%]124,063 Paychex 5,526 1.45

5,526 1.45

Technology Hardware & Equipment 6.05% [9.04%]64,029 Broadcom 8,503 2.22

242,578 Cisco Systems 5,922 1.55161,621 Texas Instruments 8,729 2.28

23,154 6.05

Travel & Leisure 1.99% [3.66%]6,732 Priceline 7,626 1.99

7,626 1.99Portfolio of investments 374,274 97.89Net other assets 8,074 2.11Net assets 382,348 100.00






196



01/10/15 to 30/09/16 01/10/14 to 30/09/15Note £’000 £’000 £’000 £’000

IncomeNet capital gains 2 72,735 7,845Revenue 3 4,690 2,204Expenses 4 (2,088) (1,285)

Net revenue before taxation 2,602 919Taxation 5 (557) (291)Net revenue after taxation 2,045 628Total return before distributions 74,780 8,473Distributions 6 (2,045) (628)Change in net assets attributable

to shareholders from investment activities 72,735 7,845

01/10/15 to 30/09/16 01/10/14 to 30/09/15£’000 £’000 £’000 £’000


Amounts receivable on issue of shares 77,762 120,401Amounts payable on cancellation

of shares (6,929) (2,968)70,833 117,433

Change in net assets attributable to shareholders from investmentactivities (see above) 72,735 7,845



197



30/09/16 30/09/15Note £’000 £’000 £’000 £’000

AssetsFixed assets:


Debtors 7 5,584 2,137Cash and bank balances 8 12,075 4,494

Total current assets 17,659 6,631Total assets 391,933 240,634Liabilities:Investment liabilities – –Creditors:

Distribution payable (1,296) (360)Other creditors 9 (8,289) (1,494)



198






30/09/16 30/09/15£’000 £’000

The net capital gains during the year comprise:Currency (losses)/gains (30) 99Non-derivative securities 72,777 7,763Transaction charges (12) (17)Net capital gains 72,735 7,845

3. Revenue01/10/15 to 01/10/14 to

30/09/16 30/09/15£’000 £’000

Bank interest 2 6Overseas dividends 4,688 2,198Total revenue 4,690 2,204

4. Expenses01/10/15 to 01/10/14 to

30/09/16 30/09/15£’000 £’000

Payable to the ACD, associates of the ACD,and agents of either of them

AMC fees 1,971 1,2071,971 1,207




22 18Total expenses 2,088 1,285Audit fees are £7,550 ex VAT (2015: £7,350).

199



5. Taxation01/10/15 to 01/10/14 to

30/09/16 30/09/15£’000 £’000

(a) Analysis of the tax charge in the year

Irrecoverable overseas tax 557 291Total taxation for the year (Note 5 (b)) 557 291



01/10/15 to 01/10/14 to30/09/16 30/09/15

£’000 £’000

Net revenue before taxation 2,602 919Net revenue for the year multiplied by the

standard rate of corporation tax 520 184Effects of:Irrecoverable overseas tax 557 291Movement in excess management expenses 279 242Revenue not subject to corporation tax (799) (426)Total tax charge for the year 557 291







200


6. Distributions


01/10/15 to 01/10/14 to 30/09/16 30/09/15

£’000 £’000

Interim 856 342Final 1,296 360Add: Revenue paid on cancellation of shares 13 4Deduct: Revenue received on creation of shares (120) (78)Net distribution for the year 2,045 628Reconciliation of net revenue after taxation

to distributionsNet revenue after taxation 2,045 628Net distribution for the year 2,045 628


7. Debtors30/09/16 30/09/15

£’000 £’000

Accrued revenue 184 91Amounts receivable for creation of shares 2,180 1,131Sales awaiting settlement 3,219 914Prepaid expenses 1 1Total debtors 5,584 2,137


£’000 £’000

Cash and bank balances 12,075 4,494Total cash and bank balances 12,075 4,494

201



9. Creditors30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares – 860Purchases awaiting settlement 8,067 472














202


11. Share Classes


%














US Dollar 376,131 237,047Total foreign currency exposure 376,131 237,047Sterling 6,217 1,733Total net assets 382,348 238,780






203




£’000 £’000 £’000 £’000



229,920 194,929Commissions – Equities 78 51Taxes – Equities – –Total purchase costs 78 51Gross purchase total 229,998 194,980

Analysis of total sale costsGross sales in the year


162,571 78,239Commissions – Equities (64) (34)Taxes – Equities (3) (1)Total sale costs (67) (35)Total sales net of transaction

costs 162,504 78,204



01/10/15 to 01/10/14 to30/09/16 30/09/15






01/10/15 to 01/10/14 to30/09/16 30/09/15



At the balance sheet date the average portfolio dealing spread was 0.02% (2015: 0.03%).


204






Assets Liabilities Assets Liabilities£’000 £’000 £’000 £’000

Valuation techniqueLevel 1: The unadjusted quotedprice in an active market foridentical assets or liabilities 374,274 – 234,003 –Level 2: Inputs other than quotedprices included within Level 1 thatare observable for the asset orliability, either directly or indirectly – – – –Level 3: Inputs are unobservable(ie for which market data isunavailable) for the asset or liability – – – –

374,274 – 234,003 –


205













206


Classes of Shares

The Company can issue different Classes of shares in respect of any Fund. Holders of Income sharesare entitled to be paid the revenue attributable to such shares, in respect of each annual or interimaccounting period. Holders of Accumulation shares are not entitled to be paid the revenueattributable to such shares, but that revenue is retained and accumulated for the benefit ofshareholders and is reflected in the price of shares.

Valuation Point

The valuation point for each Fund is 12 noon on each dealing day (being each day which is abusiness day in London). Valuations may be made at other times under the terms contained withinthe Prospectus.

Buying and Selling Shares

The ACD will accept orders to deal in the shares on normal business days between 9:00 am and5:00 pm. Instructions to buy or sell shares may be either in writing to: PO Box 10191, Chelmsford,CM99 2AP or by telephone on 0345 140 0070*. A contract note will be issued by close of businesson the next business day after the dealing date to confirm the transaction.

Prices

The prices of shares for each Class in each Fund will be posted on www.fundlistings.com and canalso be obtained by telephoning the Administrator on 0345 140 0070* during the ACD’s normalbusiness hours.

Significant Information

During the year three new funds have been launched. Omnis Asia Pacific Equity Fund, OmnisEuropean Equity Fund and Omnis Income and Growth Fund.

Other Information

The Instrument of Incorporation, Prospectus and the most recent interim and annual reports maybe inspected at the office of the ACD which is also the Head Office of the Company and copies maybe obtained, free of charge, upon application to Omnis Investments Limited, PO Box 10191,Chelmsford CM99 2AP.

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

* Please note that telephone calls may be recorded for monitoring and training purposes, and to confirm investors' decisions.

Report

The annual report of the Company will be published within four months of each annual accountingperiod and the interim report will be published within two months of each interim accounting period.

Interim financial statements period ended 31 March

Annual financial statements year ended 30 September

General Information

207


Distribution Payment Dates

Interim 31 May

Final 30 November

Data Protection

The details you have provided will be held electronically by the Funds’ Registrar but will not be usedfor any purpose except to fulfil its obligations to shareholders.

Effects of Personal Taxation

Investors should be aware that unless their shares are held within an ISA, or switched betweenFunds in this OEIC, selling shares is treated as a disposal for the purpose of Capital Gains Tax.

Risk Warning

An investment in an Open Ended Investment Company should be regarded as a medium to longterm investment. Investors should be aware that the price of shares and the income from themmay fall as well as rise and investors may not receive back the full amount invested. Pastperformance is not a guide to future performance. Investments denominated in currencies otherthan the base currency of a fund are subject to fluctuation in exchange rates, which may befavourable or unfavourable.

Protected Cell Regime

Please note, on 21 December 2011, the Open Ended Investment Companies Regulations 2001 (SI2001/1228) (“the Regulations”) were amended to introduce a Protected Cell Regime (“PCR”) forOEICs. Under the PCR each Fund represents a segregated portfolio of assets and accordingly, theassets of a Fund belong exclusively to that Fund and shall not be used or made available todischarge (directly or indirectly) the liabilities of, or claims against, any other person or body,including any other Fund and shall not be available for any such purpose. The Regulations alloweda transitional period for implementation of the PCR, until 20 December 2013. However, the Companyadopted the PCR on 30 September 2013. No reallocation of liabilities as described above wasnecessary at any time prior to 30 September 2013.

Remuneration

In line with the requirements of the Undertakings for Collective Investments in TransferableSecurities (UCITS) V, the UCITS Manager is subject to a remuneration policy which is consistentwith the principles outlined in SYSC19E of the FCA Handbook (UCITS Remuneration Code).

The remuneration policy is designed to ensure that any relevant conflicts of interest can be managedappropriately at all times and that the remuneration of staff is in line with the risk policies andobjectives of the UCITS it manages. The Remuneration policy is available upon request from theACD.

Implementation of the UCITS Remuneration Code remains ongoing and will apply in full for the firsttime for the financial year ended 31 December 2017.

General Information (continued)

omnisinvestments.comomnisinvestments.com/media/16412/omnis-portfolio-annual-2016.pdf · page omnis...

Documents