Vulcan Global Value Fund Plc An umbrella fund with segregated liability between sub-funds

Transcription

1 Semi-Annual Report and Unaudited Condensed Financial Statements Vulcan Global Value Fund Plc is an open-ended umbrella investment company with variable capital and with segregated liability between sub-funds, incorporated and registered in Ireland on 18 August 2011 with registered number under the Irish Companies Act 2014 as an undertaking for collective investment in transferable securities pursuant to the European Union (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) and under the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015, as amended (together, the "UCITS Regulations")

2 CONTENTS Semi-Annual Report and Unaudited Condensed Financial Statements Management and administration of the Company 1-2 Unaudited Condensed Statement of Financial Position 3 Unaudited Condensed Statement of Comprehensive Income 4 Unaudited Condensed Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares 5 Unaudited Condensed Statement of Cash Flows 6 Unaudited Notes to Condensed Financial Statements 7-25 Schedule of Investments Changes in Portfolio Composition Page

3 Management and administration of the Company Board of Directors Yvonne Connolly (Irish) Adam McClain (American) Hampton McFadden (American) Elizabeth Beazley (Irish) Bryan Tiernan (Irish)* All Directors are non-executive. * Independent Registered Office Secretary Investment Manager and Distributor Manager 32 Molesworth Street Dublin 2 D02 Y512 Ireland * With effect from 8 May 2017 MFD Secretaries Limited 32 Molesworth Street Dublin 2 D02 Y512 Ireland * With effect from 8 May 2017 Vulcan Value Partners LLC 3500 Blue Lake Drive Suite 400 Birmingham, AL United States of America Carne Global Fund Managers (Ireland) Limited 2nd Floor, Block E Iveagh Court Harcourt Road Dublin 2 Ireland 1

4 Management and administration of the Company Depositary Sub-custodian Global Sub-custodian Administrator Independent Auditor UK Facilities Services Agent Swiss Paying Agent and Representative Irish Legal Advisors SMT Trustees (Ireland) Limited Block 5 Harcourt Centre Harcourt Road Dublin 2 Ireland Sumitomo Mitsui Trust (UK) Limited 1 st Floor 155 Bishopsgate London EC2M 3XU United Kingdom Brown Brothers Harriman & Co 30 Herbert Street Dublin 2 Ireland Maples Fund Services (Ireland) Limited 32 Molesworth Street Dublin 2 D02 Y512 Ireland * With effect from 8 May 2017 PricewaterhouseCoopers One Spencer Dock North Wall Quay Dublin 1 Ireland Campion Capital Limited Baker Street London W1U 6RJ United Kingdom RBC Investor Services Bank S.A Esch-sur-Alzette Zurich Branch Badenerstrasse 567 P.O. Box 1292 CH-8048 Zurich Switzerland Maples and Calder 75 St Stephen's Green Dublin 2 Ireland 2

5 Unaudited Condensed Statement of Financial Position As at 30 June 2017 Note Vulcan Global Value Fund Plc & Vulcan Value Equity Fund 30 June 2017 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund 31 December 2016 Assets Financial assets at fair value through profit or loss 3, 10 1,543,070,009 1,406,814,894 Cash and cash equivalents 8 221,328,192 30,971,152 Subscriptions received in advance 16,582,167 5,177,883 Due from broker 1,184,495 - Dividends receivable 1,145,978 1,341,599 Other debtors and prepayments 90,889 25,835 Unsettled trades - 18,354,294 Total assets 1,783,401,730 1,462,685,657 Liabilities Investment Management fees payable 4 1,445,437 1,226,630 Redemptions payable 410,951 1,364,795 Administration fees payable 4 282, ,745 Withholding tax expense payable 6 251, ,574 Other liabilities 201, ,560 Management fees payable 4 43,499 - Custodian fees payable 4 29,081 33,973 Due to broker 18,498 50,447 Audit fees payable 4 14,125 25,739 Unsettled Trades 3,659 9,399,525 Directors' fees payable - 9,289 Total liabilities (excluding net assets attributable to holders of redeemable shares) 2,700,135 12,807,277 Net assets attributable to holders of redeemable shares 1,780,701,595 1,449,878, June December 2016 Redeemable Net asset value per Redeemable Note Shares in issue redeemable share Shares in issue Net asset value per redeemable share in issue Vulcan Value Equity Fund in issue Class Shares 7 1,022, $ ,091, $ Accumulating Class Shares 7 386, $ , $ II Accumulating Class Shares 7 4,258, $ ,011, $ Income Class Shares 7 172, $ , $ II Income Class Shares 7 1,625, $ , $ GBP Class Shares 7 132, , GBP Accumulating Class Shares 7 6, , GBP II Accumulating Class Shares 7 515, , GBP Income Class Shares 7 70, , GBP II Income Class Shares 7 2,402, ,225, Euro Class Shares 7 172, , Euro Accumulating Class Shares Euro II Accumulating Class Shares 7 84, , The notes on pages 7 to 25 are an integral part of these financial statements 3

6 Unaudited Condensed Statement of Comprehensive Income For the six months ended 30 June 2017 Note Vulcan Global Value Fund Plc & Vulcan Value Equity Fund 30 June 2017 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund 30 June 2016 Interest income 129,697 25,011 Dividend income 17,087,159 19,457,751 Net loss on financial assets at fair value through profit or loss (8,267,395) (18,489,177) Net change in unrealised gain on investments 175,320,602 16,591,496 Net loss on foreign currency transactions (147,012) (180,099) Total income 184,123,051 17,404,982 Investment management fees 4 6,899,345 5,005,095 Administration fees 4 556, ,070 Transaction costs 4 553,333 1,115,831 Other expenses 318, ,870 Custodian fees 4 159,671 86,946 Legal fees 89,512 23,298 Management fees 4 63,553 - Audit and tax consultancy fees 4 81,392 69,518 Directors' fees 4 30,007 20,591 Interest expense 1, Total operating expenses 8,753,906 6,960,458 Operating profit 175,369,145 10,444,524 Finance costs (excluding decrease in net assets from operations attributable to holders of redeemable shares) Distributions to holders of redeemable shares (7,906,017) (4,002,246) Profit after distributions and before tax 167,463,128 6,442,278 Withholding tax expense 6 (4,267,792) (4,159,988) Increase in net assets from operations attributable to holders of redeemable shares 163,195,336 2,282,290 The notes on pages 7 to 25 are an integral part of these financial statements 4

7 Unaudited Condensed Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares For the six months ended 30 June 2017 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund Balance at 31 December ,449,878,380 Increase in net assets from operations attributable to holders of participating shares 163,195,336 Contributions and redemptions by holders of participating shares: Issue of redeemable shares 589,610,338 Redemptions of redeemable shares (421,982,459) Total contributions and redemptions by holders of redeemable shares 167,627,879 Balance at 30 June ,780,701,595 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund Balance at 31 December ,164,062,186 Increase in net assets from operations attributable to holders of participating shares 2,282,290 Contributions and redemptions by holders of participating shares: Issue of redeemable shares 294,870,043 Redemptions of redeemable shares (200,115,201) Total contributions and redemptions by holders of redeemable shares 94,754,842 Balance at 30 June ,261,099,318 The notes on pages 7 to 25 are an integral part of these financial statements 5

8 Unaudited Condensed Statement of Cash Flows For the six months ended 30 June 2017 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund 30 June 2017 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund 30 June 2016 Increase in net assets from operations attributable to holders of redeemable shares 163,195,336 2,282,290 Adjustment for Net loss on financial assets at fair value through profit or loss 8,267,395 18,489,177 Net change in unrealised gain on investments (175,320,602) (16,591,496) Exchange loss on cash and cash equivalents 147, ,099 Distributions to holders of redeemable shares 7,906,017 4,002,246 Operating cash flow before movement in working capital 4,195,158 8,362,316 Increase in due from broker (1,184,495) - Decrease/(increase) in dividends receivable 195,621 (178,644) Increase in other debtors and prepayments (65,054) (135,791) Decrease/(increase) in unsettled trades 18,354,294 (27,247,473) Increase in investment management fees payable 218, ,450 Increase in administration fees payable 62,342 13,563 (Decrease)/increase in withholding tax expense payable (42,993) 33,949 Increase/(decrease) in other liabilities 18,657 (51,583) Increase in management fees payable 43,499 - Decrease in custodian fees payable (4,892) - Decrease in due to broker (31,949) - Decrease in audit fees payable (11,614) - (Decrease)/increase in unsettled trades (9,395,866) 4,674,935 Increase in depositary fees payable - 9,860 Decrease in directors' fees payable (9,289) - Payments for purchases of financial assets at fair value through profit or loss (339,814,250) (423,766,793) Proceeds from sales of financial assets at fair value through profit or loss 370,612, ,926,598 Net cash from/(used in) operating activities 43,140,318 (137,106,613) Cash flows from financing activities Proceeds from issues of redeemable shares 578,206, ,784,183 Payments for redemptions of redeemable shares (422,936,303) (202,210,943) Dividend distribution (7,906,017) (4,002,246) Net cash from financing activities 147,363,734 84,570,994 Net increase/(decrease) in cash and cash equivalents 190,504,052 (52,535,619) Cash and cash equivalents, beginning of period 30,971,152 55,338,282 Exchange loss on cash and cash equivalents (147,012) (180,099) Cash and cash equivalents at the end of the period 221,328,192 2,622,564 Supplementary information on cash flows from operating activities: Interest received 129,697 25,011 Interest paid (1,640) (239) Dividend received 17,282,780 19,279,107 Dividend paid (7,906,017) (4,002,246) Supplementary information on non-cash flows: Non-cash redemptions 31,522, ,412 Non-cash subscriptions (31,522,178) (125,412) The notes on pages 7 to 25 are an integral part of these financial statements 6

9 Notes to Condensed Financial Statements 1. General information Vulcan Global Value Fund Plc (the "Company") is an open-ended umbrella investment company with variable capital and with segregated liability between sub funds, incorporated and registered in Ireland on 18 August 2011 with registered number under the Irish Companies Act 2014 as an Undertaking for Collective Investment in Transferable Securities ( UCITS ) pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2015, as amended (the "UCITS Regulations"). Vulcan Value Equity Fund (the "Fund"), is a Sub-fund of the Company launched on 1 May The investment objective is to achieve capital appreciation over the long term primarily by investing directly or indirectly in equity securities. Exposure to equity securities may be achieved by investing in collective investment schemes, including exchange traded funds. As of 30 June 2017, no other Sub-funds of the Company were in existence. 2. Significant accounting policies (a) Basis of preparation These Condensed Interim Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting, and comply with Irish Statute comprising the Irish Companies Act 2014, the Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) and under the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities Regulations 2015, as amended (together, the "UCITS Regulations"). They do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements of the Company as at and for the year ended 31 December The statutory auditor s report in the Company s annual audited financial statements for the year ended 31 December 2016 was unqualified. The accounting policies applied by the Company in these Condensed Interim Financial Statements are the same as those applied by the Company in its financial statements as at and for the year ended 31 December The preparation of financial statements in conformity with IFRS, as adopted by the EU, requires the use of accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The resulting accounting estimates may not, by definition, equal the related actual result. The functional and presentation currency of the Fund is the United States Dollar ( ). is the currency noted in the Prospectus and is relevant to the stated investment strategy. The presentation currency of the Company is. (i) Standards, amendments and interpretations that are issued but not effective for the financial period beginning 1 January 2017 and not early adopted IFRS 9 Financial Instruments: Classification and Measurement, as issued reflects the first phase of the IASB's work on the replacement of IAS 39 and applies to classification and measurement of financial assets and financial liabilities as defined in IAS 39. The standard is effective for annual periods beginning on or after 1 January In subsequent phases the IASB will address hedge accounting and impairment of financial assets. The adoption of the first phase will have an effect on the classification and measurement of the Fund's financial assets but will potentially have no impact on classification and measurement of financial liabilities. The Fund will quantify the effect in conjunction with the other phases, when issued, to present a comprehensive picture. 7

10 2. Significant accounting policies (continued) (a) Basis of preparation (continued) (i) Standards, amendments and interpretations that are issued but not effective for the financial period beginning 1 January 2017 and not early adopted (continued) It is anticipated that the above Standard and Interpretation will be adopted by the Fund to the extent applicable to them from its effective date. The adoption of this Standard, amendment and interpretation is being considered by the Fund. IFRS 15, Revenue from contracts with customers. This is the converged standard on revenue recognition. It replaces IAS 11, Construction contracts, IAS 18, Revenue and related interpretations. Revenue is recognised when a customer obtains control of a good or service. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. The standard is effective for annual periods beginning on or after 1 January The Fund is yet to assess IFRS 15's full impact. Amendments to IFRS 2, 'Share based payments', clarify the measurement basis for cash-settled, share-based payments and the accounting for modifications that change an award from cash-settled to equity-settled. The amendment is effective on or after 1 January The Fund is yet to assess IFRS 2's full impact. 3. Financial assets at fair value through Profit or Loss 30 June 2017 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund Designated at fair value through Profit or Loss upon initial recognition: Equity Investments 1,543,070,009 Total financial assets at fair value through Profit or Loss 1,543,070, June 2016 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund Designated at fair value through Profit or Loss upon initial recognition: Equity investments 1,235,512,759 Total financial assets at fair value through Profit or Loss 1,235,512,759 8

11 4. Fees Investment management fees Vulcan Value Partners LLC (the "Investment Manager") makes a charge in respect of the Fund at the following percentage rate per annum of the net asset value of that class: Class Shares Accumulating Class Shares II Accumulating Class Shares Income Class Shares II Income Class Shares GBP Class Shares GBP Accumulating Class Shares GBP II Accumulating Class Shares GBP Income Class Shares GBP II Income Class Shares Euro Class Shares Euro Accumulating Class Shares Euro II Accumulating Class Shares 1.00% 1.50% 0.75% 1.00% 0.75% 1.00% 1.50% 0.75% 1.00% 0.75% 1.00% 1.50% 0.75% The Investment Manager's fees are calculated on each business day ( dealing day ) and are payable monthly in arrears. The Investment Manager does not anticipate that aggregate fees of the Investment Manager in respect of a particular class, the Administrator and the Depositary (the Annual Management Fees or "AMF") will exceed 2% of the average monthly Net Asset Value ("NAV") of that class in each year of the Fund s operation (the AMF Threshold ). If the AMF exceeds the AMF Threshold, the Investment Manager has undertaken to discharge that proportion of the AMF above the AMF Threshold and shall rebate the Fund accordingly. The AMF for the period ended 30 June 2017 and for the period ended 30 June 2016 has not exceeded the AMF Threshold. Investment management fees paid and payable during the period ended 30 June 2017 and 2016, are disclosed in the primary statements. 9

12 4. Fees (continued) Distributor fees Vulcan Value Partners, LLC shall act as distributor (the "Distributor") of Shares in the Fund pursuant to the Distribution Agreement with authority to delegate some or all of its duties as Distributor to Fund subject to the requirements of the Central Bank. No distribution fees were incurred during the periods ended 30 June 2017 and Administration fees The Company pays the Administrator a fee out of the assets of the Fund that shall not exceed 0.14% (2016: 0.14%) of the Fund's NAV per annum. The fees are calculated on each dealing day and are payable monthly in arrears. The fees are subject to a minimum monthly fee of 4,000 for the first 12 months of the term of the Administration Agreement and a minimum monthly fee of 4,583 thereafter. In addition, the Administrator is entitled to be reimbursed all reasonable out of pocket expenses and transaction charges as may be agreed between the Company and the Administrator from time to time. Administration fees paid and payable during the period ended 30 June 2017 and 2016, are disclosed in the primary statements elsewhere in this interim financial report. Depositary's fees The Company agrees to pay to the Depositary a fee, pro-rated as at each dealing day, calculated on a monthly basis of 0.035% per annum of the NAV of the Fund, subject to a minimum fee of 4,400 (2016: 4,400) per month. The Depositary or its affiliate is entitled to be reimbursed all reasonable out of pocket expenses and the reasonable safekeeping fees and transaction charges of sub-custodians appointed by it which shall be charged at normal commercial rates. Depositary fees paid and payable during the period ended 30 June 2017 and 2016 are disclosed in the primary statements elsewhere in this interim financial report. 10

13 4. Fees (continued) Audit and tax consultancy fees Auditor's remuneration consists of: Period ended 30 June 2017 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund Statutory auditor's remuneration 15,129 Tax advisory services 66,263 Other assurance services - 81,392 Period ended 30 June 2016 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund Statutory auditor's remuneration 17,166 Tax advisory services 52,352 Other assurance services - 69,518 Audit fees payable during the period ended 30 June 2017 and 2016 are disclosed in the primary statements elsewhere in this interim financial report. Management fees Carne Global Fund Managers (Ireland) Limited act as Manager to the Company. The Company pays the Manager a fee out of the assets of the Fund that shall not exceed 0.01% of the Fund's NAV per annum. The fees are calculated on each dealing day and are payable monthly in arrears. The fees are subject to a minimum annual fee of 75,000. Management fees paid and payable for the period ended 30 June 2017 are disclosed in the primary statements elsewhere in this interim financial report. 11

14 4. Fees (continued) Director's fees The Directors are entitled to remuneration not exceeding 25,000 (28,565) (exclusive of VAT) per annum per Director, or such other amount as may be approved by a resolution of the Directors and approved by or notified in advance to shareholders (as appropriate). The Directors' fee to Elizabeth Beazley and Yvonne Connolly are 13,231 per annum (15,118) respectively, and 22,500 (25,709) per annum to Bryan Tiernan (2016: 19,250 (21,373) respectively and nil (nil)). In addition the Company paid 11,490 (13,128) to Carne Global Financial Services Limited in respect of Directors support services for the period. Support fees are included in other expenses. Adam McClain and Hampton McFadden are not entitled to receive Directors' fees as employees of the Investment Manager. Directors fees paid and payable for the period ended 30 June 2017 and 2016 are disclosed in the primary statements elsewhere in this interim financial report. Transaction costs Commission expenses for the period ended 30 June 2017 comprised transaction costs associated with investment activities, the expenses were as follows: Vulcan Global Value Fund Plc & Vulcan Value Equity Fund Commissions incurred on depository receipt transactions 6,138 Commissions incurred on equity transactions 547, ,333 Commission expenses for the period ended 30 June 2016 were as follows: Vulcan Global Value Fund Plc & Vulcan Value Equity Fund Commissions incurred on depository receipt transactions 12,083 Commissions incurred on equity transactions 1,103,748 1,115,831 12

15 5. Related party disclosures The Company's related parties include key management and the Investment Manager as described below. The Company operates under an investment management agreement with Vulcan Value Partners LLC. All fees paid to the Investment Manager are disclosed separately in the Unaudited Condensed Statement of Comprehensive Income. Amounts payable at 30 June 2017 and 31 December 2016 are included in the Unaudited Condensed Statement of Financial Position. Adam McClain and Hampton McFadden are employees of Vulcan Value Partners LLC the Investment Manager and Distributor, and do not receive fees for their services. Yvonne Connolly, Elizabeth Beazley and Bryan Tiernan are independent of the Investment Manager. Yvonne Connolly and Elizabeth Beazley are employees of Carne Global Financial Services Limited, Directors of the Manager. The Company paid Directors support services fees to Carne Global Financial Services Limited, a related party to the Manager. The amount charged to the Company is disclosed in Note 4. The Independent Directors may be entitled to remuneration as disclosed in Note 4. Transactions with Connected Parties The Central Bank UCITS Regulations requires that any transactions carried out with a UCITS by a management company or depositary to the UCITS, the delegates or sub-delegates of the management company or depositary, and any associated group of such a management company, depositary, delegate or sub-delegate ("connected persons") must be carried out as if negotiated at arm's length and must be in the best interests of the shareholders. The Manager, as responsible person, is satisfied that there are arrangements (evidenced by written procedures) in place, to ensure that the obligations set out in Regulation 41(1) of the Central Bank UCITS Regulations are applied to all transactions with connected parties, and are satisfied that transactions with connected parties entered into during the period complied with the obligations set out in this paragraph. 13

16 6. Taxation Under current law and practice, the Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. On that basis, it is not liable to Irish tax on its income or gains. However, Irish tax can arise on the happening of a "chargeable event". A chargeable event includes any distribution payments to shareholders or any encashment, redemption, cancellation or transfer of shares. No Irish tax will arise on the Company in respect of chargeable events in respect of: i) a shareholder who is neither Irish resident nor ordinarily resident in Ireland for tax purposes at the time of the chargeable event, provided appropriate valid declarations in accordance with the provisions of the Taxes Consolidation Act, 1997, as amended, are held by the Company; and ii) certain exempted Irish tax resident shareholders who have provided the Company with the necessary signed statutory declarations. Dividends, interest and capital gains (if any) received on investments made by the Company may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Company or its shareholders 7. Share Capital The Fund has authorised thirteen share classes (2016: thirteen). The authorised share capital of the Fund is 1,000,000,000,000 shares of no par value initially designated as unclassified shares. The share capital of the Fund is equal to the Net Assets attributable to holders of redeemable shares. Redeemable shares in issue Class Accumulating Class II Accumulating Class Vulcan Value Equity Fund Income Class II Income Class Balance at 1 January , , ,507, , , Subscriptions 614, , ,876, , , Redemptions (420,011.84) (481,140.76) (1,372,883.65) (227,078.35) (217,492.88) Balance at 31 December ,091, , ,011, , , Subscriptions 337, , ,022, , ,143, Redemptions (407,240.10) (110,666.45) (1,775,093.31) (16,495.13) (87,159.79) Balance at 30 June ,022, , ,258, , ,625,

17 7. Share Capital (continued) Redeemable shares in issue GBP Class GBP Accumulating Class GBP II Accumulating Class Vulcan Value Equity Fund GBP Income Class GBP II Income Class Balance at 1 January , , , , ,666, Subscriptions 39, , , ,097, Redemptions (47,204.72) (1,590.60) (180,829.43) (40,060.37) (538,013.88) Balance at 31 December , , , , ,225, Subscriptions 14, , , , , Redemptions (6,286.19) (50.07) (143,469.79) (6,320.93) (226,648.24) Balance at 30 June , , , , ,402, Redeemable shares in issue Euro Class Euro Accumulating Class Euro II Accumulating Class Balance at 1 January , , Subscriptions 9, , Redemptions (6,076.98) - (11,092.65) Balance at 31 December , , Subscriptions , Redemptions (420.00) - (26,863.40) Balance at 30 June , , Redeemable shares of the Fund are freely transferable. Redeemable participating shares are entitled to participate equally in the profits and distributions of the Fund and its assets in the event of termination. All classes have the same voting rights at the Company meetings (one vote per share). 15

18 7. Share Capital (continued) The Fund has five, five GBP and three Euro Share Classes. The minimum holding per particular shareholders is $5,000 in respect of the Share Classes, 5,000 in respect of the GBP Share Classes and 5,000 in respect of the Euro Share Classes, or such greater or lesser amount as may be determined by the Directors and notified to the Shareholders in advance. The minimum initial investment is $5,000 in respect of the Class Shares, 5,000 in respect of the GBP Class Shares and 5,000 in respect of the Euro Class Shares, $50,000,000 in respect of the Accumulating Class Shares, II Accumulating Class Shares, 50,000,000 in respect of the GBP Accumulating Class Shares, GBP II Accumulating Class Shares and GBP II Income Class Shares and 50,000,000 in respect of the Euro Accumulating Class Shares and Euro II Accumulating Class Shares, or such greater or lesser amount as may be determined by the Directors and notified to the shareholders in advance. There will be no minimum initial investment amount for the Income Class Shares and GBP Income Class Shares. The minimum additional investment is $10,000 in respect of the Class Shares, 10,000 in respect of the GBP Class Shares and 10,000 in respect of the Euro Class Shares, or such greater or lesser amount as may be determined by the Directors and notified to the shareholders in advance. To determine the NAV of the Fund for subscriptions and redemptions, investments have been valued based on the last traded market prices of the close of business on the relevant trading day. Shareholders may subscribe for shares on and with effect from any dealing day at the subscription price per share on the relevant dealing day. Applications received after the dealing deadline for the relevant dealing day, shall, unless the Directors in exceptional circumstances shall otherwise agree and provided they are received before the relevant valuation point, be deemed to have been received by such next dealing deadline. 8. Cash and Cash Equivalents The Company's Depositary is SMT Trustees (Ireland) Limited (the "Depositary"). The Depositary has appointed Sumitomo Mitsui Trust (UK) Limited ("SMT" or the "Sub-Custodian") as its Sub-Custodian. The Sub-Custodian has, in turn, appointed Brown Brothers Harriman & Co ("BBH & Co" or the "Global Sub-Custodian") as their Global Sub-Custodian. Both the cash and non cash assets are ultimately held at BBH & Co, however cash is swept on a nightly basis to pre-approved financial institutions. See Note 9(e) for further detail. 9. Financial instruments and associated risks The Fund's risks are set out in the Prospectus and any consideration of risk here should be viewed in the context of the Prospectus which is the primary document governing the operation of the Fund. The Fund s investments expose it to a variety of financial risks including risks from the use of derivatives and other financial instruments, currency risk, interest rate risk, credit risk and liquidity risk. The Fund's overall risk management programme seeks to minimise potential adverse effects on the Fund's financial performance. The Investment Manager monitors the Fund's risk factors on a daily basis and produces reports detailing the Fund's exposures as well as cash and liquidity reports which are circulated to the relevant fund management teams and compliance. Market risk includes price, foreign currency and interest rate risks. Details of the Fund s investment portfolio at 30 June 2017 are disclosed in the Unaudited Schedule of Investments. 16

19 9. Financial instruments and associated risks (continued) (a) Market price risk Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Fund might suffer through holding market positions in the face of price movements. Some of the recognised exchanges on which the Fund may invest may prove to be illiquid or highly volatile from time to time and this may affect the price at which the Fund may liquidate positions to meet repurchase requests or other funding requirements. Potential investors should also not that the securities of small capitalisation companies are less liquid and this may result in fluctuations in the price of the shares of the Fund. The financial instruments are measured in accordance with the fair value measurement principles as discussed in Note 2(b). A reasonably possible weakening in the individual equity market prices of 5% at 30 June 2017 would result in a decrease of 77,153,500 (31 December 2016: 70,340,745) in the net assets attributable to holders of redeemable shares of the Vulcan Value Equity Fund. A strengthening would have the opposite effect. This represents management's best estimate of a reasonable possible shift in market prices, having regard to historical volatility. The Company does not currently use Financial Derivative Instruments (FDI). (b) Foreign currency and exchange rate risk The Fund invests in securities denominated in currencies other than, the functional currency of the Fund, and the Unaudited Condensed Statement of Financial Position and Unaudited Condensed Statement of Comprehensive Income may be significantly affected by movements in the exchange rates against. The value of the Fund and its income, as measured in, may suffer significant declines due to currency depreciation, disruptions in currency markets or delays and difficulties in currency conversions or be otherwise adversely affected by exchange control regulations or by changes in the method of controlling exchange rates or limiting exchange rate movements. Currency devaluations may occur without warning and are beyond the control of the Investment Manager. Currency risks will be absorbed by the shareholders. 17

20 9. Financial instruments and associated risks (continued) (b) Foreign currency and exchange rate risk (continued) The following table lists the exposure to currencies of the Fund at 30 June 2017 and 31 December 2016 and the impact on the net assets if the had strengthened/weakened by 5% with all other variables held constant. This represents management's best estimate of a reasonable possible shift in exchange rates, having regard to historical volatility. Financial assets - stated in As at 30 June 2017 EUR Effect on net assets of +/- 5% Vulcan Global Value Fund Plc & Vulcan Value Equity Fund GBP Effect on net assets of +/- 5% CHF Effect on net assets of +/- 5% Financial assets at fair value through Profit or Loss ,371,166 2,568,558 70,678,845 3,533,942 Cash and cash equivalents - - 3, Subscriptions awaiting settlement 109,980 5,499 10,829, , ,980 5,499 62,203,390 3,110,169 70,678,845 3,533,942 Financial liabilities - stated in Redemptions payable ,164 4, Administration fees payable 282,087 14, Audit fees payable 14, Custodian fees payable 29,081 1, Other liabilities 244,716 12, ,009 28,500 87,164 4, Financial assets - stated in As at 31 December 2016 EUR Effect on net assets of +/- 5% GBP Effect on net assets of +/- 5% CHF Effect on net assets of +/- 5% Financial assets at fair value through profit or loss ,368,930 2,768,447 61,826,982 3,091,349 Cash and cash equivalents - - 1,479,330 73, Subscriptions awaiting settlement - - 2,346, , ,195,253 2,959,764 61,826,982 3,091,349 Financial liabilities - stated in Redemptions payable ,188 9, Administration fees payable 219,745 10, Other liabilities 182,559 9, Depositary fees payable 33,973 1, Audit fees payable 25,739 1, Directors' fees payable 9,

21 9. Financial instruments and associated risks (continued) (b) Foreign currency and exchange rate risk (continued) 471,305 23, ,188 9,

22 9. Financial instruments and associated risks (continued) (c) Interest rate risk Interest rate risk is the risk borne by an interest-bearing asset due to variability of interest rates. The interest rate exposure of the assets of the Company is as follows at 30 June 2017 and 31 December All liabilities of the Company are non-interest bearing. Vulcan Global Value Fund Plc & Vulcan Value Equity Fund At 30 June 2017 Floating rate Fixed Rate Non-interest bearing Financial assets at fair value through Profit or Loss - - 1,543,070,009 1,543,070,009 Cash and cash equivalents 221,328, ,328,192 Subscriptions received in advance ,582,167 16,582,167 Due from broker - - 1,184,495 1,184,495 Dividends Receivable - - 1,145,978 1,145,978 Other debtors and prepayments ,889 90,889 Total 221,328,192-1,562,073,538 1,783,401,730 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund At 31 December 2016 Floating rate Fixed Rate Non-interest bearing Financial assets at fair value through Profit or Loss - - 1,406,814,894 1,406,814,894 Cash and cash equivalents 30,971, ,971,152 Unsettled trades ,354,294 18,354,294 Subscriptions awaiting settlement - - 5,177,883 5,177,883 Dividends receivable - - 1,341,599 1,341,599 Other debtors and prepayments ,835 25,835 Total 30,971,152-1,431,714,505 1,462,685,657 A sensitivity analysis has been determined based on the exposure of floating rate assets and liabilities at 30 June 2017 outstanding for the period. A 50 basis point increase in interest rates, with other variables held constant, would increase net asset value by 1,106,641 (31 December 2016: 154,856), conversely a 50 basis point decrease would have an equal but opposite effect. This represents management's best estimate of a reasonable possible shift in interest rates, having regard to historical volatility. (d) Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in realising assets or otherwise raising funds to meet commitments associated with investment activities. 19

23 9. Financial instruments and associated risks (continued) (d) Liquidity risk (continued) Large redemptions of shares in a Fund might result in a Fund being forced to sell assets at a time and price at which it would normally prefer not to dispose of those assets. Liquidity risk is minimised by holding sufficiently liquid investments which can be readily realised to meet liquidity demands. To manage this risk, if redemption requests on any dealing day represent 10% or more of the Shares in issue in respect of any Fund, the Directors may, at their discretion, refuse to redeem any Shares in excess of 10%. Any request for redemption on such dealing day shall be reduced rateably and the redemption requests shall be treated as if they were received on each subsequent dealing day until all shares to which the original request related have been redeemed. Any deferred redemption requests shall be treated in priority to any redemption requests received on subsequent days. Where a repurchase request results in shares representing more than 5% of the net asset value of the Fund, the Directors may satisfy the repurchase request by a distribution of investments of the Company in specie provided that such a distribution would not be prejudicial to the interests of the remaining Shareholders of the Company and such asset allocation is subject to the approval of the Depositary. The tables below analyse the Company s financial liabilities and net settled derivative financial liabilities into relevant maturity groupings based on the remaining period as at 30 June 2017 to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within twelve months equal their carrying balances, as the impact of discounting is not significant. At 30 June 2017 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund Less than 1 month 1-6 months No stated maturity Investment management fees payable 1,445, ,445,437 Redemptions payable 410, ,951 Administration fees payable 282, ,087 Withholding tax expense payable 251, ,581 Other liabilities 244, ,716 Depositary fees payable 29, ,081 Due to broker 18, ,498 Audit fees payable 14, ,125 Unsettled trades 3, ,659 Net assets attributable to holders of redeemable participating shares 1,780,701, ,780,701,595 Total 1,783,401, ,783,401,730 20

24 9. Financial instruments and associated risks (continued) (d) Liquidity risk (continued) The table below analyses the Company's financial liabilities and net settled derivative financial liabilities into relevant maturity groupings based on the remaining period as at 31 December At 31 December 2016 Vulcan Global Value Fund Plc & Vulcan Value Equity Fund Less than 1 month 1-6 months No stated maturity Unsettled trades 9,399, ,399,525 Redemptions payable 1,364, ,364,795 Investment Management fees payable 1,226, ,226,630 Withholding tax expense payable 294, ,574 Administration fees payable 219, ,745 Other liabilities 182, ,560 Due to broker 50, ,447 Depositary fees payable 33, ,973 Audit fees payable 25, ,739 Directors' fees payable 9, ,289 Net assets attributable to holders of redeemable participating shares 1,449,878, ,449,878,380 Total 1,462,685, ,462,685,657 (e) Credit risk Credit Risk is the risk that the Fund s counterparty to a financial transaction will fail to discharge an obligation or commitment that it has entered into with the Fund. The financial assets and liabilities, which potentially expose the Fund to credit risk, consist principally of cash and its investments in equities. The Company and the Fund will be exposed to a credit risk in relation to the counterparties with whom it trades, and may bear the risk of settlement default. Substantially all of the investments are held in its custody network at the period end. Investments are segregated from the assets of the Depositary, the Sub-Custodian and the Global Sub-Custodian, with ownership rights remaining with the Fund. Bankruptcy or insolvency of the Depositary, the Sub-Custodian and the Global Sub-Custodian may cause the Fund s rights with respect to its securities held by the Depositary to be delayed. The maximum exposure to this risk is the amount of long investments disclosed in the schedule of investments. Both the cash and non cash assets are ultimately held at BBH & Co. Cash is segregated on the books and records of the Global Sub-Custodian but it is commingled with other clients of the Global Sub-Custodian and is therefore exposed to the intraday credit risk of the Global Sub-Custodian. 21

25 9. Financial instruments and associated risks (continued) (e) Credit risk (continued) The Fund has elected to enter into the Global Sub-Custodian sweep program which means that the Global Sub-Custodian will sweep cash from the main custody account into overnight eligible bank counterparty accounts in order to diversify overnight exposure and/or to gain interest on the various accounts. Participation in Cash Management Systems involves investment risks such as the loss of any balances swept plus sovereign and counterparty risks associated with offshore overnight time deposits. The Fitch credit rating of BBH & Co and SMT is A+ and A, respectively, as at 30 June 2017 (31 December 2016: A+ and A). Cash held via accounts opened on the books of the Depositary, the Sub-Custodian or Global Sub-Custodian, are obligations of the Depositary while cash held in accounts opened directly on the books of a third party cash correspondent bank or a broker (collectively, 'agency accounts') are obligations of the agent. Cash held via agency cash accounts are liabilities of the agent, creating a debtor/creditor relationship directly between the agent and the Fund. Accordingly, the Depositary is not liable for the agency cash accounts repayment in the event the agent, by reason of its bankruptcy, insolvency or otherwise, fails to make repayment. During the period ended 30 June 2017 and year ended 31 December 2016, the Fund's cash was swept on a nightly basis to pre-approved financial institutions. The institutions where the Fund's cash was held, the amounts held and their respective S&P credit ratings, at that date, were as follows: 30 June December 2016 Rating Rating SEB Stockholm 50,000,000 A+ 14,411,881 A+ JPM Chase, New York 50,000,000 A- - - National Australia Bank, London 50,000,000 AA+ - - Standard Chartered Bank, London 50,000,000 A - - Standard Chartered Bank, Singapore ,000,000 A Bank of Montreal, London 21,328,192 A ,328,192 29,411,881 The Investment Manager did not utilize derivative instruments during the period ended 30 June 2017 or 31 December (f) Risks of derivative instruments No derivative instruments were utilized during the period ended 30 June 2017 or 31 December (g) Efficient portfolio management The Company does not engage in the use of derivative instruments. 22

26 10. Fair value of financial instruments The following tables show financial instruments recognised at fair value, analysed between those whose fair value is based on: Quoted prices in active markets for identical assets or liabilities (Level 1); Those involving inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and Those with inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes 'observable' requires significant judgement by the Directors. The Directors consider observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. At the reporting date, the carrying amounts of financial assets at fair value issued by the Fund which fair values were determined directly, in full or in part, by reference to published price quotations and determined using valuation techniques are as follows: At 30 June 2017 Vulcan Global Value Plc & Vulcan Value Equity Fund Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit or loss: Equity Investments 1,543,070, ,543,070,009 Total 1,543,070, ,543,070,009 At 31 December 2016 Vulcan Global Value Plc & Vulcan Value Equity Fund Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit or loss: Equity Investments 1,406,814, ,406,814,894 Total 1,406,814, ,406,814,894 23

27 10. Fair value of financial instruments (continued) There were no transfers between any of the levels during the period ended 30 June 2017 and Financial instruments not measured at fair value The financial instruments not measured at fair value through profit or loss are short-term financial assets and liabilities whose carrying amounts approximate fair value. These financial instruments are classified as level 2, with the exception of cash and cash equivalents, which are classified as level Exchange rates The exchange rates used in the financial statements to express GBP, EUR and CHF into at 30 June 2017 are , and respectively (2016: , and ). 12. Soft commissions The Investment Manager does not make use of soft commission arrangements to enable it to obtain services which assist in the provision of investment services to the Company (2016: None). 13. Significant events during the period The Board of Directors resolved that the Fund shall make a cash distribution by way of dividend to all persons who are listed as owners of its income share classes ( Income, II Income, GBP Income, and GBP II Income). The total dividend payment for each share class is listed below in the table. The record date and ex-date of the dividend was 7 March 2017, with a pay date of 23 March Share Class Income Class II Income Class GBP Income Class GBP II Income Class Total Dividend () US$385,547 US$716,027 US$287,991 US$6,516,452 US$7,906,017 An amended prospectus and supplement for Vulcan Value Equity Fund were issued, dated 17 February Effective 17 February 2017, the Company appointed Carne Global Fund Managers (Ireland) Limited as UCITS management company (the "Manager"). In addition, effective 8 May 2017, the address of the registered office of the Company changed to 32 Molesworth Street, Dublin Significant events since the period end There were no significant events that occurred after the period end. 24

28 15. Contingent liabilities There were no contingent liabilities at 30 June 2017 and 31 December Approval of financial statements The Directors approved the financial statements on 25 August

29 Schedule of Investments As at 30 June 2017 Shares Fair Value % of net assets Transferable Securities Admitted to an Official Stock Exchange Listing BERMUDIAN EQUITIES Financial EVEREST RE GROUP LTD 174,119 44,328, % TOTAL BERMUDIAN EQUITIES 44,328, % BRITISH EQUITIES Consumer, Cyclical GKN PLC 12,097,364 51,371, % TOTAL BRITISH EQUITIES 51,371, % SWISS EQUITY Financial SWISS RE AG 772,750 70,678, % TOTAL SWISS EQUITY 70,678, % UNITED STATES EQUITIES Communications DISCOVERY COMMUNICATIONS-C 1,636,102 41,246, % TIME WARNER INC 176,372 17,709, % 58,955, % Consumer, Cyclical HILTON WORLDWIDE HOLDINGS IN 598,279 37,003, % 37,003, % Consumer, Non-cyclical AETNA INC 223,756 33,972, % AMERISOURCEBERGEN CORP 812,542 76,809, % ANTHEM INC 263,344 49,542, % CARDINAL HEALTH INC 708,971 55,243, % CVS HEALTH CORP 1,103,551 88,791, % MASTERCARD INC-CLASS A 564,922 68,609, % MCKESSON CORP 460,323 75,741, % SABRE CORP 1,185,878 25,816, % UNITEDHEALTH GROUP INC 97,932 18,158, % 492,686, % 26