Nedgroup Investments MultiFunds PLC Annual Report and Audited Financial Statements

Transcription

1 Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June 2015 Nedgroup Investments s PLC An open-ended variable capital umbrella investment company with segregated liability between Sub-Funds incorporated under the laws of Ireland as a public limited company with registered number and authorised as an undertaking for collection investment in transferable securities pursuant to the European Communities (Undertaking for Collective Investment in Transferable Securities) Regulations, 2011, as amended.

2 Contents 03 Directory 04 Directors Report 07 Custodian s Report 08 Investment Manager s Report 11 Independent Auditor s Report to the Shareholders 13 Schedule of Investments 20 Statement of Comprehensive Income 22 Statement of Financial Position 24 Statements of Changes in Net Assets Attributable to Redeemable Participating Shareholders 26 Statement of Cash Flows 28 Notes to the Financial Statements 56 Significant Purchases and Sales (unaudited) 59 Additional Information (unaudited) 63 Notice of Annual General Meeting 65 Annual General Meeting Form of Proxy Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

3 Directory Board of Directors John Skelly (Chairman) (Irish)* Yvonne Connolly (Irish)* Andrew Lodge (British resident)** Tracey Wiltcher (British resident)** Lorcan Murphy (Irish)*** Investment manager, distributor and promoter Nedgroup Investments (IOM) Limited, First Floor, Samuel Harris House, 5 11 St. George s Street, Douglas, Isle of Man IM1 1AJ, British Isles. Custodian Legal Advisers Citibank International Limited, Ireland Branch, A&L Goodbody, 1 North Wall Quay, International Financial Services Centre, Dublin 1, North Wall Quay, Ireland. Dublin 1, Ireland. Administrator and Registrar Registered Office Citibank Europe plc, 2nd Floor Block E, 1 North Wall Quay, Iveagh Court, Dublin 1, Harcourt Road, Ireland. Dublin 2, Ireland. Company Secretary Auditors Carne Global Financial Services Limited, KPMG, 2nd Floor Block E, Chartered Accountants, Statutory Audit Firm, Iveagh Court, 1 Harbourmaster Place, Harcourt Road, IFSC, Dublin 2, Dublin 1, Ireland. Ireland. * Non Executive Director, Independent of Investment Manager. ** Non Executive Director. *** Independent, Non Executive Director. Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

4 Directors Report Directors Report The Directors submit their report together with the audited financial statements for the year ended 30 June Statement of Directors Responsibilities The Directors are responsible for preparing the annual report and financial statements in accordance International Financial Reporting Standards ( IFRS ) as adopted by the European Union and comply with the Companies Act, Irish Company law requires Directors to prepare financial statements for each financial year that give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company. In preparing the financial statements, the Directors are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements are prepared in accordance with IFRS and comply with the Companies Act, 2014 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011, as amended. In this regard, Citibank Europe plc has been appointed for the purposes of maintaining adequate accounting records. Accordingly, the accounting records are kept at the following address: 1 North Wall Quay, Dublin 1, Ireland The Directors are also responsible for safeguarding the assets of the Company and hence for taking such steps as are reasonably open to them to prevent and detect fraud and other irregularities. In this regard, the Directors have appointed Citibank International Limited, Ireland Branch as Custodian pursuant to the terms of the custodial services agreement. The address at which the business is conducted is as follows: 1 North Wall Quay, Dublin 1, Ireland The Directors are also responsible for preparing the Directors Report that complies with the requirements of the Companies Act, Directors The Directors who held office during the year from 1 July 2014 to 30 June 2015 were: John Skelly Yvonne Connolly Andrew Lodge Tracey Wiltcher Lorcan Murphy. Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

5 Directors and Secretary s Interests in Shares The Company Secretary did not hold any interest, beneficial or otherwise, in the share capital of the Company during the year ended 30 June 2015 (2014: Nil). Andrew Lodge holds 3,484 shares in the Nedgroup Investments Growth Class C (2014: 3,940) and Tracey Wiltcher holds 44 shares in the Nedgroup Investments Growth Class C (2014: Nil), please see Note 6 to the financial statements. Transactions Involving Directors There were no transactions involving Directors during the year, apart from Directors interests in shares noted previously. Review of Business and Future Development The business of the Company is reviewed in detail in the Investment Manager s Report on pages 7-8. The Company intends to continue promoting and generating interest in its business in the future. The Net Asset Value per Share of the Nedgroup Investments Growth, the Nedgroup Investments Balanced and the Nedgroup Investments Income (the Funds ) is set out in Note 8 to the financial statements. Results The results of the operations for the year are set out in the Statement of Comprehensive Income. A review of the activities of the Funds is contained in the Investment Manager s Report. Related Party and Connected Party Transactions All connected party transactions are conducted on an arm s length basis. The Board of Directors are satisfied that: (i) there are arrangements (evidenced by written procedures) in place to ensure that the obligations set out in paragraph 1 of the Central Bank s UCITS Notice 14.5 are applied to all transactions with connected parties; and (ii) that transactions with connected parties entered into during the year complied with the obligations set out in this paragraph. Details of related party transactions are disclosed in Note 6 to the financial statements. Principal Risks Details of the principal risks and uncertainties, which the Company faces, are listed in Note 13 to the financial statements. Distribution Policy The Directors decide the dividend policy and arrangements relating to each Fund and where applicable, details are set out in the relevant Supplements to the Prospectus. Dividends were paid during the year relating to Class A Distributing, Class B Distributing and Class C Distributing of the Nedgroup Investments Income. Further details are set out in Note 12 to the financial statements. Soft Commission Agreements There were no soft commission arrangements entered into by the Investment Manager on behalf of the Company during the year ended 30 June 2015 (30 June 2014: None). Significant Events During the Year A new Prospectus and Supplements to the Prospectus were issued on 9 October There were no other significant events during the year ended 30 June Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

6 Internal Control and Risk Management Systems in Relation to Financial Reporting The Board of Directors are responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of error or fraud in achieving the Company s financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. Corporate Governance Code The Board of Directors has assessed the measures included in the voluntary Corporate Governance Code for Collective Investment Schemes and Management Companies as published by the Irish Funds Industry Association ( Irish Funds ) in December The Directors have adopted all corporate governance practices and procedures in the Corporate Code for Collective Investment Schemes with effect from 31 December Independent Auditor KPMG, Chartered Accountants, have indicated their willingness to continue in office in accordance with Section 383(2) of the Companies Act, There is no relevant audit information of which the Statutory Auditor is unaware. The Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and they have established that the Statutory Auditor is aware of that information. On behalf of the Board of Directors John Skelly Date: 13 October 2015 Yvonne Connolly Significant Events Since the Year End The following distributions per share were approved by the Board and the Investment Manager and were made post year end: Income Fund 31 August 2015 Class A Distributing Class B Distributing Class C Distributing There were no other significant events after the year ended 30 June Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

7 Custodian s Report Report of the Custodian to the Shareholders We have enquired into the conduct of Nedgroup Investments s plc ( the Company ) for the year ended 30 June 2015, in our capacity as Custodian to the Company. This report including the opinion has been prepared for, and solely for, the shareholders in the Company as a body, in accordance with the Central Bank of Ireland s UCITS Notice 4, and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown. Responsibilities of the Custodian Our duties and responsibilities are outlined in the Central Bank of Ireland s UCITS Notice 4. One of those duties is to enquire into the conduct of the Company in each annual accounting period and report thereon to the shareholders. Our report shall state whether, in our opinion, the Company has been managed in that period, in accordance with the provisions of the Company s Constitution and the UCITS Regulations. It is the overall responsibility of the Company to comply with these provisions. If the Company has not so complied, we as Custodian must state why this is the case and outline the steps which we have taken to rectify the situation. the appropriate regulations. Opinion In our opinion, the Company has been managed during the year, in all material respects: (i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the Constitution and by the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011, as amended ( the Regulations ); and (ii) otherwise in accordance with the provisions of the Constitution and the Regulations. Citibank International Limited, Ireland Branch 1 North Wall Quay Dublin 1 Ireland Date: 13 October 2015 Basis of Custodian Opinion The Custodian conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its duties as outlined in UCITS Notice 4 and to ensure that, in all material respects, the Company has been managed (i) in accordance with the limitations imposed on its investment and borrowing powers by the provisions of its constitutional documentation and the appropriate regulations and (ii) otherwise in accordance with the Company s constitutional documentation and Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

8 Investment Manager s Report for the year ended 30 June 2015 General Market Commentary The twelve month period ending June 2015 saw a rise in volatility and a marked degree of differentiation across the various asset classes, regions and sectors. Strong economic performance in the US contrasted with the relatively weaker data coming out of most other regions, especially Japan, Europe and the emerging markets. Sharply lower commodity prices were also a significant theme, with countries and industries that consume commodities clearly outperforming those that are more dependent on the production of raw materials. This divergence in economic performance was reflected in differences in both rhetoric and actions on the part of central banks. Whilst the period saw the end of US quantitative easing (QE), announcements by the Bank of Japan (BOJ), the People s Bank of China (PBOC) and the European Central Bank (ECB) offered financial markets the magic elixir of further monetary and QE. In this respect, the ECB announced a plan to buy 60 billion worth of bonds per month as it finally delivered on Draghi s July 2012 whatever it takes speech. The BOJ reacted to a spate of poor economic data releases by surprising everyone with a 10 to 20 trillion yen per year expansion of its commitment to QE. This was augmented by a statement that the Japanese Government Pension Fund would be altering its asset allocation, and effectively doubling its exposure to equities. The PBOC also moved to ease financial conditions by cutting its benchmark interest rates and bank reserve requirement ratios, as it reacted to continuing evidence of slowing economic growth in China. In the second half of 2014, falling commodity prices sparked concerns that the global economy might be weakening. With deflation a key worry, some investors saw the sharp decline in the price of oil over the period as the proverbial canary in the coal mine. However, whilst weak demand from Europe and Asia was part of the story, the battle for market share between Saudi Arabia and other big producers (most notably the US) also played a key role in weakening the oil price. Whilst many investors saw the positive side of cheaper oil, as lower pump prices tend to boost consumption in other areas, they also worried about the impact it would have on producer revenues, and the increased risk of deflation. In the first half of 2015, the election of the antiausterity Syriza party in Greece saw the subsequent bailout talks with their creditors begin to dominate news flow. With the tone of the negotiations gradually deteriorating, investors became more cautious as time passed. By late June, risk aversion was rising sharply as Greece failed to make a 1.6 billion re-payment due to the IMF, whilst Greek Prime Minister Alexis Tsipras surprised everybody by announcing a last minute Greek referendum on whether or not to accept the creditors bail-out terms. Against this background, global equities rose slightly, with the MSCI AC World Index returning +0.7% (in US dollars). The best performing regions were Japan (+8.3%) and the US (+7.0%), whilst the weakest were the Emerging Markets (-5.1%), Europe ex-uk (-7.4%) and the UK (-8.2%). At the sector level, the strongest areas were Healthcare (+17.6%), Consumer Discretionary (+8.9%) and Information Technology (+8.7%), whilst Materials (-11.3%) and Energy (-25.4%) struggled as commodity prices slumped. In terms of style, Growth (+5.2%) outperformed Value (-2.8%), whilst higher risk smaller companies (+2.4%) outpaced large companies (+0.7%). Falling oil prices, increased QE, weak inflation and a number of central bank rate cuts all served to drive interest rate expectations lower. This proved to be a potent cocktail for the fixed income asset class, where the best returns were seen amongst Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

9 longer dated government bonds issued by the more creditworthy nations, whilst riskier corporate/high yield bonds and emerging market debt were lost favour. Overall, the JP Morgan World Government Bond Index advanced by +3.6%, whilst the Merrill Lynch Global Corporate Bond Index returned +1.7%, the Merrill Lynch Global High Yield Index was flat +0.0%, and the JP Morgan Hard and Local Currency Emerging Market Bond Indices falling by -1.6% and -16.4% respectively. Commodities fell sharply over the period, with the Dow Jones-UBS Commodities Index falling by -23.7%. Crude oil fell the most, declining -47.6% as it responded to a growing supply demand imbalance, whilst Industrial Metals also declined sharply (-19.4%) on worries about a slowdown in demand from China. Elsewhere, Gold (-11.7%) reacted to a significant rise in the US dollar, whilst Agriculture (-14.5%) responded to unusually favourable weather conditions that boosted harvests. The dramatic rise of the US dollar against nearly all other currencies was the most remarkable feature of the foreign exchange markets. On the major crosses, the US dollar advanced by +22.7% against the euro, by +20.6% relative to the Japanese yen and by +8.8% versus the British pound. The combination of weak commodity prices and some country specific worries weighed on a number of emerging market currencies, with the Brazilian real (-40.6%) falling particularly hard against the resurgent US dollar. The Nedgroup Investments Growth ( Growth ) returned +0.6% in US dollars from 1 July 2014 to 30 June 2015, which, for reference, compares to the Morningstar Aggressive Allocation peer group average return of -0.1%. The Growth s stated benchmark 3-month LIBID +3% to +5% returned +3.1% to +5.1% over the period. As a higher risk profile fund, the absolute performance of the Growth was driven mainly by its exposure to global equities, which gained only slightly over the period. Investment in property related securities had a positive impact on returns. Looking forward, in our base case scenario we do not see central bank policies changing meaningfully in the foreseeable future. Should the Federal Reserve begin to increase US interest rates, it will only do so very gradually. The low level of interest rates available on cash and fixed income investments has been critical in driving investor cash flow towards equities and commercial property, where valuations are more attractive on a relative basis. We retain our bias towards equities and property, but have recently reduced exposure to equities, in line with our belief that global share valuations have become less compelling. The Nedgroup Investments Balanced ( Balanced ) returned +0.0% in US dollars from 1 July 2014 to 30 June 2015, which, for reference, compares to the average return of +0.0% for the Morningstar Moderate and Morningstar Cautious Allocation peer groups. The Balanced s benchmark, 3-month LIBID +1% to +3% moved +1.1% to +3.1% during the year ended June As a medium risk profile fund, the absolute performance was impacted by both its exposure to bonds (predominately global investment grade corporate, high yield debt and emerging market bonds), as well as its allocation to global equities. Investment in property related securities had a positive impact on returns. Looking forward, in our base case scenario we do not see central bank policies changing meaningfully in the foreseeable future. Should the Federal Reserve begin to increase US interest rates, it will only do so very gradually. The low level of interest rates available on cash and fixed income investments has been critical in driving investor cash flow towards equities and commercial property, where valuations are more attractive on a relative basis. We retain Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

10 our bias towards equities and property over fixed income, but have recently reduced exposure to equities, in line with our belief that global share valuations have become less compelling. The Nedgroup Investments Income ( Income ) returned +1.1% in dollars from 1 July 2014 to 30 June 2015, which, for reference, compares to the Morningstar Global Bonds Hedged peer group average return of +0.3%. The Income s stated benchmark, 3-month LIBID returned +0.1% for the same period. As a lower risk profile fund, the absolute performance of the Income was impacted primarily by its exposure to bonds (predominately global investment grade corporate, high yield debt and emerging market bonds), although performance was aided by its allocation to other income generating asset, such as property related securities and high dividend-paying equities. Looking forward, in our base case scenario we do not see central bank policies changing meaningfully in the foreseeable future. Should the Federal Reserve begin to increase US interest rates, it will only do so very gradually. The low level of interest rates available on cash and fixed income investments has been critical in driving investor cash flow towards better yielding investments, including high dividend equities and commercial property. We continue to allocate a portion of the portfolio away from bonds towards these types of areas. Nedgroup Investments (IOM) Limited July 2015 Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

11 Independent Auditor s Report to the Shareholders of Nedgroup Investments s Plc We have audited the financial statements of Nedgroup Investments s plc ( the Company ) for the year ended 30 June 2015 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is Irish law and International Financial Reporting Standards (IFRS) as adopted by the European Union. Opinions and conclusions arising from our audit Our opinion on the financial statements is unmodified In our opinion the financial statements: give a true and fair view of the assets, liabilities and financial position of the Company as at 30 June 2015 and of its changes in net assets attributable to holders of redeemable participating shares for the then ended; have been properly prepared in accordance with IFRS as adopted by the European Union; and have been properly prepared in accordance with the requirements of the Companies Act, 2014 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, Our conclusions on other matters on which we are required to report by the Companies Act 2014 are set out below We have obtained all the information and explanations which we consider necessary for the purposes of our audit. In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited and the financial statements are in agreement with the accounting records. In our opinion the information given in the Directors Report is consistent with the financial statements. We have nothing to report in respect of matters on which we are required to report by exception ISAs (UK & Ireland) require that we report to you if, based on the knowledge we acquired during our audit, we have identified information in the annual report that contains a material inconsistency with either that knowledge or the financial statements, a material misstatement of fact, or that is otherwise misleading. In addition, the Companies Act 2014 requires us to report to you if, in our opinion, the disclosures of directors remuneration and transactions required by sections 305 to 312 of the Act are not made. Basis of our report, responsibilities and restrictions on use As explained more fully in the Statement of Directors Responsibilities set out on pages 3-5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and otherwise comply with the Companies Act Our responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Financial Reporting Council s Ethical Standards for Auditors. An audit undertaken in accordance with ISAs (UK & Ireland) involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Company s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

12 directors; and the overall presentation of the financial statements. In addition, we read all the financial and nonfinancial information in the Directors Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Whilst an audit conducted in accordance with ISAs (UK & Ireland) is designed to provide reasonable assurance of identifying material misstatements or omissions it is not guaranteed to do so. Rather the auditor plans the audit to determine the extent of testing needed to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements does not exceed materiality for the financial statements as a whole. This testing requires us to conduct significant audit work on a broad range of assets, liabilities, income and expense as well as devoting significant time of the most experienced members of the audit team, in particular the engagement partner responsible for the audit, to subjective areas of the accounting and reporting. Our report is made solely to the Company s members, as a body, in accordance with section 391 of the Companies Act Our audit work has been undertaken so that we might state to the Company s members those matters we are required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company s members as a body, for our audit work, for this report, or for the opinions we have formed. Darina Barrett for and on behalf of KPMG Chartered Accountants, Statutory Audit Firm 1 Harbourmaster Place, International Financial Services Centre, Dublin 1, Ireland Date: 13 October 2015 Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

13 Schedule of investments as at 30 June 2015 Nedgroup Investments Growth Holdings Quantity Fair Value % of Net Assets Financial assets at fair value through profit or loss % (2014: 95.40%) Collective Investment Schemes % (2014: 95.34%) Equity Funds Allianz Global Small Cap Equity 4,166 7,375, % Coronation Global Emerging Market Fund 696,318 7,175, % Dodge & Cox Worldwide Funds plc - Global Stock Fund 781,337 13,478, % ishares Core MSCI World UCITS ETF 50,505 2,146, % ishares MSCI EMU UCITS ETF 48,236 5,352, % Morgan Stanley Investment Funds - Global Brands Fund 96,608 10,277, % Most Diversified Portfolio SICAV TOBAM 1,155 15,920, % Nedgroup Investments Funds plc - Global Equity Fund 14,813,054 23,517, % Fixed Income Funds Franklin Templeton Investment Funds - Templeton Global Total Return Fund 85,242, % 115,316 3,171, % Insight Liquidity Funds plc - Liquidity Fund 5,000,000 5,000, % Index Funds 8,171, % Vanguard Emerging Markets Stock Index Fund/Ireland 55,293 8,885, % Vanguard Investment Series plc - Global Stock Index Fund 1,416,664 30,733, % Property Funds 39,618, % F&C Commercial Property Trust Ltd 3,772,818 8,378, % ishares Developed Markets Property Yield UCITS ETF 381,106 8,996, % Other Funds 17,375, % Greencoat UK Wind plc/funds 1,942,776 3,391, % 3,391, % Total Collective Investment Schemes 153,799, % Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

14 Schedule of investments as at 30 June 2015 (continued) Nedgroup Investments Growth (continued) Unrealised gain on forward foreign currency exchange contracts % (2014: 0.06%) Maturity Date Issue Currency Currency Received Settle Currency Currency Delivered Unrealised Gain % of Net Assets 14/08/ ,499,564 EUR 11,000, , % 31/07/ ,153 69, % 31/07/ ,380 47, % 31/07/ ,297 16, % 31/07/ ,271 28, % 31/07/ ,657 19, % Total unrealised gain on forward foreign currency exchange contracts 235, % Financial assets at fair value through profit or loss 154,035, % Financial liabilities at fair value through profit or loss (0.00)% (2014: (0.09)%) Unrealised loss on forward foreign currency exchange contracts (0.00)% (2014: (0.09)%) Maturity Date Issue Currency Currency Received Settle Currency Currency Delivered Unrealised Loss % of Net Assets 14/08/2015 EUR 700, ,073 (2,640) (0.00)% 14/08/ ,292,231 11,000,000 (1,805) (0.00)% 31/07/2015 6,593,767 10,368,132 (435) (0.00)% 31/07/2015 4,537,668 7,135,093 (299) (0.00)% 31/07/2015 1,535,126 2,413,854 (100) (0.00)% 31/07/ ,641 57,682 (56) (0.00)% 31/07/ ,605 83,730 (48) (0.00)% 31/07/ ,697 26,288 (34) (0.00)% 31/07/ ,739 25,924 (23) (0.00)% 31/07/ ,600 33,980 (17) (0.00)% 31/07/2015 4,500 7,079 (4) (0.00)% 31/07/2015 2,122 1,350 (1) (0.00)% Total unrealised loss on forward foreign currency exchange contracts (5,462) (0.00)% Financial liabilities at fair value through profit or loss (5,462) (0.00)% Cash 6,945, % Other assets and liabilities (excluding net assets attributable to Redeemable Participating Shareholders) (150,924) (0.10)% Net Assets Attributable to Redeemable Participating Shareholders 160,824, % Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

15 Schedule of investments as at 30 June 2015 (continued) Nedgroup Investments Growth (continued) Portfolio Analysis: Fair Value % of Total Assets UCITS and non-ucits CIS 153,799, % OTC financial derivative instruments 235, % Deposits 6,945, % Other current assets 373, % Total assets 161,354, % The counterparty to all open forward foreign currency exchange contracts as at 30 June 2015 is Citigroup Global Markets Limited. Nedgroup Investments Balanced Holdings Quantity Fair Value % of Net Assets Financial assets at fair value through profit or loss % (2014: 93.37%) Collective Investment Schemes % (2014: 93.26%) Equity Funds Allianz Global Small Cap Equity 3,011 5,330, % Coronation Global Emerging Market Fund 541,138 5,576, % Dodge & Cox Worldwide Funds plc - Global Stock Fund 460,858 7,949, % ishares MSCI EMU UCITS ETF 26,766 2,970, % Morgan Stanley Investment Funds - Global Brands Fund 51,977 5,529, % Most Diversified Portfolio SICAV TOBAM ,598, % Nedgroup Investments Funds plc - Global Equity Fund 10,696,735 16,982, % Fixed Income Funds AXA Fixed Interest ICVC - US Short Duration High Yield Fund Franklin Templeton Investment Funds - Templeton Global Total Return Fund 56,936, % 10,980,984 22,398, % 309,524 8,511, % Insight Liquidity Funds plc - Liquidity Fund 21,017,240 21,017, % Kames High Yield Global Bond 797,420 8,925, % Muzinich Short Duration High Yield Fund 96,717 10,194, % PIMCO Funds Global Investors Series plc - Global Investment Grade Credit Fund 694,251 11,462, % Wellington Global Credit Plus Portfolio 453,139 5,034, % 87,545, % Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

16 Schedule of investments as at 30 June 2015 (continued) Nedgroup Investments Balanced (continued) Index Funds Vanguard Emerging Markets Stock Index Fund/Ireland 29,504 4,740, % Vanguard Investment Series plc - Global Stock Index Fund 755,994 16,400, % Property Funds 21,141, % F&C Commercial Property Trust Ltd 4,809,478 10,680, % ishares Developed Markets Property Yield UCITS ETF 503,541 11,887, % Other Funds 22,567, % Greencoat UK Wind plc/funds 2,527,989 4,413, % 4,413, % Total Collective Investment Schemes 192,604, % Unrealised gain on forward foreign currency exchange contracts % (2014: 0.11%) Maturity Date Issue Currency Currency Received Settle Currency Currency Delivered Unrealised Gain % of Net Assets 14/08/2015 5,681,620 EUR 5,000, , % 31/07/ ,123 83, % 31/07/ ,396 83, % 31/07/ ,476 19, % 31/07/ ,772 11, % 31/07/ ,505 11, % 31/07/ ,883 10, % 31/07/ ,006 41, % 31/07/ ,114 40, % 31/07/ % Total unrealised gain on forward foreign currency exchange contracts 107, % Financial assets at fair value through profit or loss 192,712, % Financial liabilities at fair value through profit or loss (0.00)% (2014: (0.21)%) Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

17 Schedule of investments as at 30 June 2015 (continued) Nedgroup Investments Balanced (continued) Unrealised loss on forward foreign currency exchange contracts - (0.00)% (2014: (0.21)%) Maturity Date Issue Currency Currency Received Settle Currency Currency Delivered Unrealised Loss % of Net Assets 14/08/ ,850,732 25,350,000 (4,159) (0.00)% 14/08/2015 EUR 1,100,000 1,230,544 (4,148) (0.00)% 31/07/ ,838,628 23,332,467 (980) (0.00)% 31/07/ ,805,376 23,280,181 (977) (0.00)% 31/07/2015 3,453,528 5,430,376 (228) (0.00)% 31/07/ , ,172 (145) (0.00)% 31/07/ ,157 87,915 (77) (0.00)% 31/07/ , ,676 (64) (0.00)% 31/07/ ,961 89,689 (60) (0.00)% 31/07/ ,000 40,934 (53) (0.00)% 31/07/ ,827 20,252 (16) (0.00)% 31/07/ ,336 27,262 (4) (0.00)% 31/07/2015 1, (0.00)% Total unrealised loss on forward foreign currency exchange contracts (10,911) (0.00)% Financial liabilities at fair value through profit or loss (10,911) (0.00)% Cash 16,381, % Other assets and liabilities (excluding net assets attributable to Redeemable Participating Shareholders) 171, % Net Assets Attributable to Redeemable Participating Shareholders 209,254, % Portfolio Analysis: Fair Value % of Total Assets UCITS and non-ucits CIS 192,604, % OTC financial derivative instruments 107, % Deposits 16,381, % Other current assets 3,253, % Total assets 212,347, % The counterparty to all open forward foreign currency exchange contracts as at 30 June 2015 is Citigroup Global Markets Limited. Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

18 Schedule of investments as at 30 June 2015 (continued) Nedgroup Investments Income Holdings Quantity Fair Value % of Net Assets Financial assets at fair value through profit or loss % (2014: 97.58%) Collective Investment Schemes % (2014: 97.58%) Equity Funds ishares UK Dividend UCITS ETF 122,247 1,172, % Fixed Income Funds 1,172, % AXA Fixed Interest ICVC - US Short Duration High Yield Fund 5,055,930 5,121, % Franklin Templeton Investment Funds - Templeton Global Total Return Fund 152,354 1,846, % Insight Liquidity Funds plc - Liquidity Fund 1,000,000 1,000, % JPMorgan Investment Funds - Income Opportunity Fund 20,690 2,139, % Kames High Yield Global Bond 196,689 2,205, % Muzinich Short Duration High Yield Fund 36,451 3,449, % PIMCO Funds Global Investors Series plc - Global Investment Grade Credit Fund 240,867 3,266, % Schroder International Selection Fund - Strategic Credit 21,628 2,100, % Wellington Global Credit Plus Portfolio 145,617 1,542, % Property Funds 22,669, % F&C Commercial Property Trust Ltd 850,490 1,200, % Standard Life Investment Property Income Trust plc 850, , % 1,912, % Total Collective Investment Schemes 25,755, % Financial assets at fair value through profit or loss 25,755, % Financial liabilities at fair value through profit or loss (0.01)% (2014: (0.09)%) Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

19 Schedule of investments as at 30 June 2015 (continued) Nedgroup Investments Income (continued) Unrealised loss on forward foreign currency exchange contracts (0.01)% (2014: (0.09)%) Maturity Date Issue Currency Currency Received Settle Currency Currency Delivered Unrealised Loss % of Net Assets 31/07/2015 6,183,327 3,934,130 (1,586) (0.01)% 31/07/2015 2,542,150 1,617,438 (653) (0.00)% 31/07/ ,733 18,453 (3) (0.00)% Total unrealised loss on forward foreign currency exchange contracts (2,242) (0.01)% Financial liabilities at fair value through profit or loss (2,242) (0.01)% Cash 1,374, % Other assets and liabilities (excluding net assets attributable to Redeemable Participating Shareholders) (333,621) (1.25)% Net Assets Attributable to Redeemable Participating Shareholders 26,793, % Portfolio Analysis: Fair Value % of Total Assets UCITS and non-ucits CIS 25,755, % Deposits 1,374, % Other current assets 336, % Total assets 27,466, % The counterparty to all open forward foreign currency exchange contracts as at 30 June 2015 is Citigroup Global Markets Limited. Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

20 Statement of comprehensive income for the year ended 30 June 2015 Notes Nedgroup Investments Growth Nedgroup Investments Balanced Nedgroup Investments Income Total 30 June 2015 Income Dividend income 2 (c) 743,075 1,391, ,774 2,259,846 Other income 2 (c) 169, , , ,116 Net gain/(loss) on financial assets and financial liabilities at fair value through profit or loss 4 1,073,851 (1,941,386) 77,026 (474,884) Total investment income/(loss) 1,986,698 (393,466) 1,083,494 2,097,078 Expenses Management and distribution fees 11 2,039,818 2,488, ,705 3,115,537 Administration fees 11 83,738 96,316 28, ,525 Directors' fees and expenses 10 15,641 15,641 9,918 29,819 Other expenses 110, ,137 69, ,121 Transaction costs 2(k) 6,878 8,980 1,885 11,974 Audit fees 11 10,844 10,844 6,876 20,673 Custodian and trustee fees 11 46,076 59,484 10,661 77,816 Total operating expenses 2,313,076 2,807, ,595 3,620,465 Net (loss)/gain before finance costs (326,378) (3,201,370) 720,899 (1,523,387) Less Finance costs: Distributions (308,517) (308,517) Net (loss)/gain after finance costs (326,378) (3,201,370) 412,382 (1,831,904) Other comprehensive income Notional FX adjustment ,028,830 (Decrease)/Increase in Net Assets Attributable to Redeemable Participating Shareholders (326,378) (3,201,370) 412,382 16,196,926 All results arise from continuing operations. There were no recognised gains and losses other than those dealt with in the Statement of Comprehensive Income. The accompanying notes form an integral part of the financial statements. On Behalf of the Board of Directors: John Skelly Date: 13 October 2015 Yvonne Connolly Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

21 Statement of comprehensive income for the year ended 30 June 2014 Notes Nedgroup Investments Growth Nedgroup Investments Balanced Nedgroup Investments Income Total 30 June 2014 Income Dividend income 2 (c) 360,729 1,283, ,268 1,793,718 Interest income 2 (c) Other income 2 (c) 133, ,163 89, ,940 Net gain on financial assets and financial liabilities at fair value through profit or loss 4 21,664,405 22,636, ,190 27,199,369 Total investment income 22,159,217 24,058,139 1,018,118 29,248,991 Expenses Management and distribution fees 11 1,810,559 2,313, ,171 2,702,165 Administration fees 11 80,408 96,434 28, ,891 Directors' fees and expenses 10 18,768 18,768 12,587 35,515 Other expenses 105, ,420 55, ,517 Transaction costs 2(k) 1,471-2,340 3,239 Audit fees 11 14,643 14,643 10,520 28,409 Custodian and trustee fees 11 39,055 55,225 8,009 65,598 Total operating expenses 2,070,674 2,650, ,305 3,185,334 Net gain before finance costs 20,088,543 21,407, ,813 26,063,657 Less Finance costs: Distributions (295,996) (295,996) Net gain after finance costs 20,088,543 21,407, ,817 25,767,661 Other comprehensive income Notional FX adjustment (23,110,690) Increase in Net Assets Attributable to Redeemable Participating Shareholders 20,088,543 21,407, ,817 2,656,971 All results arise from continuing operations. There were no recognised gains and losses other than those dealt with in the Statement of Comprehensive Income. The accompanying notes form an integral part of the financial statements. Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

22 Statement of financial position as at 30 June 2015 Nedgroup Investments Growth Notes Current Assets Financial assets at fair value through profit or loss: Investments in Collective Investment Schemes 2(f) Nedgroup Investments Balanced Nedgroup Investments Income Total 30 June ,799, ,604,432 25,755, ,015,959 Unrealised gain on forward foreign currency exchange contracts 2(e) 235, , ,435 Cash at bank 9 6,945,895 16,381,835 1,374,002 16,206,920 Due from broker 154,445 2,806,131-1,882,480 Subscriptions receivable 179, , , ,723 Dividends receivable ,602 58,602 Other assets and prepaid expenses 39,550 60,807 48, ,060 Total Assets 161,354, ,347,093 27,466, ,084,179 Current Liabilities Financial liabilities at fair value through profit or loss: Unrealised loss on forward foreign currency exchange contracts 2(e) (5,462) (10,911) (2,242) (12,653) Due to broker (154,287) (2,805,871) (500,000) (2,382,214) Redemptions payable (144,693) (4,860) (129,819) (224,912) Management and distribution fees payable 11 (185,694) (226,708) (22,948) (285,173) Administrator fees payable 11 (5,806) (8,348) - (9,000) Custodian and trustee fees payable 11 (1,129) (6,563) - (4,891) Other payables (32,864) (29,392) (17,704) (57,290) Total liabilities (excluding net assets attributable to holders of redeemable participating shares) (529,935) (3,092,653) (672,713) (2,976,133) Net Assets Attributable to Redeemable Participating Shareholders 160,824, ,254,440 26,793, ,108,046 The accompanying notes form an integral part of the financial statements. On Behalf of the Board of Directors: John Skelly Date: 13 October 2015 Yvonne Connolly Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

23 Statement of financial position as at 30 June 2014 Notes Nedgroup Investments Growth Nedgroup Investments Balanced Nedgroup Investments Income Total 30 June 2014 Current Assets Financial assets at fair value through profit or loss: Investments in Collective Investment Schemes 2(f) 146,394, ,562,215 21,328, ,056,974 Unrealised gain on forward foreign currency exchange contracts 2(e) 90, , ,660 Cash at bank 9 7,669,812 13,782, ,501 13,064,684 Due from broker 332, ,189 14, ,171 Subscriptions receivable 108, , , ,611 Dividends receivable ,771 31,771 Other assets and prepaid expenses 72, ,676 75, ,403 Total Assets 154,668, ,738,766 22,084, ,528,274 Current Liabilities Financial liabilities at fair value through profit or loss: Unrealised loss on forward foreign currency exchange contracts 2(e) (141,512) (410,757) (19,080) (342,073) Due to broker (330,255) (481,284) (139,621) (614,247) Redemptions payable (397,034) (442,682) - (491,105) Management and distribution fees payable 11 (170,678) (209,402) (17,462) (239,750) Administrator fees payable 11 (5,837) (7,128) - (7,583) Custodian and trustee fees payable 11 (2,354) (4,333) (1,465) (5,376) Other payables (65,708) (141,787) (50,469) (171,822) Total liabilities (excluding net assets attributable to holders of redeemable participating shares) (1,113,378) (1,697,373) (228,097) (1,871,956) Net Assets Attributable to Redeemable Participating Shareholders 153,554, ,041,393 21,856, ,656,318 The accompanying notes form an integral part of the financial statements. Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

24 Statement of changes in net assets attributable to redeemable participating shareholders for the year ended 30 June 2015 Nedgroup Investments Growth Nedgroup Investments Balanced Nedgroup Investments Income Net Assets Attributable to Redeemable Participating Shareholders as at start of the year 153,554, ,041,393 21,856,823 Proceeds from Redeemable Participating Shares Issued 26,444,115 46,209,450 9,404,285 Payments for Redeemable Participating Shares Redeemed (18,847,553) (33,795,033) (4,880,092) (Decrease)/Increase in Net Assets Attributable to Redeemable Participating Shareholders from Operations (326,378) (3,201,370) 412,382 Net Assets Attributable to Redeemable Participating Shareholders as at end of the year 160,824, ,254,440 26,793,398 The accompanying notes form an integral part of the financial statements. Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

25 Statement of changes in net assets attributable to redeemable participating shareholders for the year ended 30 June 2014 Nedgroup Investments Growth Nedgroup Investments Balanced Nedgroup Investments Income Net Assets Attributable to Redeemable Participating Shareholders as at start of the year 116,724, ,373,892 16,841,468 Proceeds from Redeemable Participating Shares Issued 28,932,387 32,310,891 10,978,238 Payments for Redeemable Participating Shares Redeemed (12,190,821) (24,050,700) (6,383,700) Increase in Net Assets Attributable to Redeemable Participating Shareholders from Operations 20,088,543 21,407, ,817 Net Assets Attributable to Redeemable Participating Shareholders as at end of the year 153,554, ,041,393 21,856,823 The accompanying notes form an integral part of the financial statements. Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June

26 Statement of cash flows for the year ended 30 June 2015 Cash flows from operating activities Nedgroup Investments Growth Nedgroup Investments Balanced Nedgroup Investments Income Total 30 June 2015 (Decrease)/Increase in Net Assets Attributable to Redeemable Participating Shareholders* (326,378) (3,201,370) 412,382 16,196,926 Adjustments to reconcile income attributable redeemable participating shareholders to net cash (used in)/provided by operating activities: Financial assets at fair value through profit or loss (7,550,132) (5,934,810) (4,427,128) (29,998,760) Amounts due from broker 177,590 (2,326,943) 14,730 (1,393,308) Dividend receivable - - (26,831) (26,831) Prepaid expenses 32, ,869 27, ,343 Financial liabilities at fair value through profit or loss (136,050) (399,846) (16,838) (329,420) Amounts due to broker (175,968) 2,324, ,379 1,767,967 Management and distribution fees payable 15,016 17,306 5,486 45,422 Administration fees payable (31) 1,220-1,417 Custodian and trustee fees payable (1,225) 2,230 (1,465) (485) Other payable (32,844) (112,395) (32,765) (114,532) Net cash used in operating activities (7,997,350) (9,512,152) (3,684,632) (13,741,261) Cash flows from financing activities Proceeds from issue of redeemable participating shares 26,373,327 46,344,565 9,290,406 55,520,011 Payment for redemption of redeemable participating shares (19,099,894) (34,232,855) (4,750,273) (38,636,514) Net cash provided by financing activities 7,273,433 12,111,710 4,540,133 16,883,497 Net (decrease)/increase in cash and cash equivalents (723,917) 2,599, ,501 3,142,236 Cash and cash equivalents at the beginning of the year 7,669,812 13,782, ,501 13,064,684 Cash and cash equivalents at the end of the year 6,945,895 16,381,835 1,374,002 16,206,920 Supplementary cashflow information Dividend received 743,075 1,391, ,943 2,233,015 *The Company total amount does not equal the sum of the Sub-Funds amounts as a result of the notional FX adjustment. Details of the notional FX adjustment are disclosed in the Statement of Comprehensive Income. The accompanying notes form an integral part of the financial statements. Nedgroup Investments s PLC Annual Report and Audited Financial Statements for the year ended 30 June