Condensed Interim Financial Statements (unaudited) for the period ended 31 March 2016

Transcription

1 Architas MultiManager Global Funds Unit Trust (An Umbrella openended Unit Trust authorised by the Central Bank of Ireland pursuant to the provisions of the UCITS Regulations) Condensed Interim Financial Statements (unaudited) for the period ended 31 March 2016

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3 Architas MultiManager Global Funds Unit Trust Contents Directory 2 Background to the Trust 3 Investment Manager s Report 5 Statement of Comprehensive Income 16 Statement of Financial Position 20 Statement of Changes in Equity 24 Statement of Changes in Net Assets Attributable to Redeemable Participating Unitholders 26 Notes to the Financial Statements 28 Schedules of Investments AllianceBernstein Dynamic Diversified 44 Flexible 62 Fidelity European Equity 68 Strategic Balanced 71 Carmignac Convictions 72 Income 75 Schedules of Portfolio Changes AllianceBernstein Dynamic Diversified 76 Flexible 77 Fidelity European Equity 79 Strategic Balanced 81 Carmignac Convictions 82 Income 83 Architas MultiManager Global Funds Unit Trust 1

4 Architas MultiManager Global Funds Unit Trust Directory Manager Architas MultiManager Europe Limited 2 Grand Canal Square Dublin 2 Ireland Directors of the Manager Duncan Freestone (British) Pat Healy (Irish) David Kingston* (Irish) Andrew Purvis (British) Caspar Rock (British) Mark Summerbell (British) Administrator, Registrar and Transfer Agent State Street Fund Services (Ireland) Limited 78 Sir John Rogerson s Quay Dublin 2 Ireland Investment Manager Architas MultiManager Limited 5 Old Broad Street London EC2N 1AD England Independent Auditors PricewaterhouseCoopers Chartered Accountants and Registered Auditors One Spencer Dock North Wall Quay Dublin 1 Ireland Legal Advisers to the Trust William Fry 2 Grand Canal Square Dublin 2 Ireland Trustee State Street Custodial Services (Ireland) Limited 78 Sir John Rogerson s Quay Dublin 2 Ireland *Denotes Irish nonexecutive (independent) Director. 2 Architas MultiManager Global Funds Unit Trust

5 Architas MultiManager Global Funds Unit Trust Background to the Trust Background to Architas MultiManager Global Funds Unit Trust Architas MultiManager Global Funds Unit Trust (the Trust ) is an umbrella openended unit trust established as an Undertaking for Collective Investment in Transferable Securities ( UCITS ) pursuant to the provisions of the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the UCITS Regulations ). The Trust was constituted on 15 February 2011 as an openended umbrella structure unit trust and commenced operations on 18 February The Trust is organised in the form of an umbrella fund (each a Fund together the Funds ). The Trust has obtained the approval of the Central Bank of Ireland (the Central Bank ) for the establishment of twelve Funds. Additional Funds may be established by the Trust with the prior approval of the Central Bank. The base currency of the Trust is Euro. The Base Currency of each Fund will be determined by the Manager and is set out in the relevant Supplement to the Trust Deed. The Trust Deed provides that each Fund may have more than one class of Units allocated to it. The Units of each class allocated to a Fund will rank pari passu with each other in all respects except as to all or any of the currency of denomination of the class, and/or the dividend policy of the class, and/or the level of fees and expenses to be charged to the class and/or the minimum subscription, minimum redemption and minimum holding limits applicable to the class, or as the Manager may otherwise determine. At 31 March 2016, the following classes of Units were funded: Fund Fund Launch Date Classes of Units AllianceBernstein Dynamic Diversified 19 July 2011 Retail Class R () Flexible 19 July 2011 Retail Class R () Fidelity European Equity 21 March 2012 Retail Class R () Strategic Balanced 20 November 2012 Retail Class R (), Institutional Class I () Carmignac Convictions 14 December 2012 Retail Class R (), Institutional Class I () Income 13 May 2014 AXA Selectiv Revenus Distribution R, Income GBP Accumulation I, Income Distribution I The following Funds within the Architas MultiManager Global Funds Unit Trust were closed on 14 October 2015, Architas GF Developed Asia exjapan Equity Index Fund, Architas GF Eurozone Equity Index Fund, Architas GF Global Bond Index Fund, Architas GF UK 100 Equity Index Fund, Architas GF UK Gilt Index Fund and Architas GF US Equity Index Fund. Further classes of Units may be issued on advance notification to, and in accordance with the requirements of the Central Bank. The Investment Manager may, in accordance with the requirements of the Central Bank, appoint one or more SubInvestment Managers to whom it may delegate all or part of the daytoday conduct of its investment management responsibilities in respect of any Fund. The Investment Manager will discharge the fees and expenses of any SubInvestment Manager out of the fee received by it from the Manager except in the case of the Income Fund where the SubInvestment Manager s fee is chargeable to the Fund. If more than one SubInvestment Manager is appointed to a Fund, the Investment Manager shall allocate the assets of the Fund between the SubInvestment Managers in such proportions as it shall, at its discretion, determine. The investment objectives and policies of each Fund within the umbrella are detailed in the individual Investment Manager s Reports. For a complete description of the objective and policies of each Fund, an investor should read the relevant supplement to the Prospectus. Architas MultiManager Global Funds Unit Trust 3

6 Architas MultiManager Global Funds Unit Trust Background to the Trust Minimum Subscription Amount/Minimum Holding The minimum subscription amount during and after the Initial Offer Period in respect of each Unit class, in each Fund is as follows: Unit Class Class R () Units Class R (GBP) Units Institutional Class I () Units Retail Class R () Units Retail Class R (GBP) Units Institutional Hedged Class I () H Units Retail Hedged Class R () H Units AXA Selectiv Revenus Distribution R Units Income GBP Accumulation I Units Income Distribution I Units Minimum Subscription during Initial Offer Period / Minimum Holding 1,000 1,000 1,000,000 1,000 1,000 1,000,000 1,000 1,000 1,000,000 1,000,000 Subsequent Minimum Subscription 1,000 1,000 1,000,000 1,000 1,000 1,000,000 1,000 1,000 1,000,000 1,000,000 Calculation of Net Asset Value The Administrator shall determine the net asset value per unit of each class of each Fund on each dealing day (ie. each Business day on the basis set forth below and in accordance with the Trust Deed). The net asset value per unit of each Fund is determined by dividing the net asset value of the relevant class of units in the relevant Fund by the total number of units outstanding in the relevant class of units of the relevant Fund. The Net Asset Value of each Fund will be equal to all of its assets less all of its liabilities as at the valuation point on each business day plus any interest accrued on underlying assets between the valuation point and the time of calculation of the net asset value on the dealing day. 4 Architas MultiManager Global Funds Unit Trust

7 Architas MultiManager Global Funds Unit Trust AllianceBernstein Dynamic Diversified Investment Manager s Report Investment Objective and Policies* The investment objective of the AllianceBernstein Dynamic Diversified fund is to seek to maximise total return. The Fund is designed as a solution for investors who seek longterm growth of capital with moderate volatility by investing in a diversified multiasset fund which dynamically adjusts investment exposures. The Fund invests in a globally diversified portfolio of securities and other financial instruments, including financial derivative instruments ( FDIs ), that provide investment exposures to a variety of asset classes. These asset classes will comprise equity securities and fixed income instruments, including highyield securities, real estaterelated securities, currencies and commodityrelated securities. In normal market conditions the Investment Manager anticipates that a majority of the Fund s exposure will be to equities. The Fund may invest in smaller capitalisation as well as larger capitalisation companies. Save in respect of investment in emerging markets, the Fund is not subject to any limitation on the portion of its net assets that may be invested in any one country or region. The Fund s direct investments will normally be listed or traded on Regulated Markets as set out in Appendix I of the Prospectus. In pursuit of the investment objective, investments of the Fund will be selected based on the Investment Manager s assessment of market conditions (either positive or negative) at any particular time and with a view to reacting to, and taking advantage of, these market conditions. To achieve the investment objective a proprietary dynamic asset allocation strategy will be used to adjust the Fund s various investment exposures with a view to achieving an optimal risk/return profile at any particular point. The dynamic asset allocation strategy comprises a series of volatility, correlation and expected return forecasting tools that allows shortterm fluctuations in risk/return tradeoffs across various asset classes to be gauged. The dynamic asset allocation strategy aims to reduce overall portfolio volatility thereby mitigating the effects of shortterm market fluctuations without sacrificing consistent longterm return potential. For example, the Fund s risk exposure to one or more asset classes may be reduced when the dynamic asset allocation strategy suggests that market risks relevant to these asset classes are rising but return opportunities are declining. Conversely, a more aggressive posture may be taken where the dynamic asset allocation strategy suggests that return opportunities for one or more of these asset classes are rising and market risks are declining. AllianceBernstein Limited act as the SubInvestment Manager to the fund. Performance Over the review period, the R share class of AllianceBernstein Dynamic Diversified Fund returned 0.56% (net of fees) in Euro terms. The Fund maintained an exposure to risky assets close to its strategic positioning (60%) with an overweight in Real Assets and an underweight in Equity. The Fund's performance was impacted by its overweight in Europe and Japan at the expense of the US during the period.** Market Review The last six months were an eventful period. The Chinese economic slowdown and a slowing price inflation driven by the magnitude of the decline in oil price increased the volatility of asset markets. The Federal Reserve s first rate hike in December 2015 also sparked concerns over the sustainability of the US economic recovery in a higher rate environment. Central banks across the globe subsequently adopted a more accommodative tone to tame the volatility in asset prices: the Bank of Japan introduced a negative lending rate, the European Central Bank extended their asset purchase programme. More recently, equity markets recovered from their lows as the oil price recovered and economic data stabilised across the developed world, despite continued concerns over the US recovery, the political situation in Europe (Brexit, Spanish political impasse, the state of the Italian banking system as well as the Greek debt repayment due in June 2016) and the effectiveness of the monetary policy of the Bank of Japan. Equity markets closed the period in positive territory: the US market led the way, followed by Emerging markets whilst the Japanese market was the main laggard. Looking at the currency market: The Japanese Yen strengthened against major currencies during the period and the local equity market correspondingly underperformed in Euro terms. The Euro also marginally appreciated against major developed currencies including the US Dollar. Architas MultiManager Global Funds Unit Trust 5

8 Architas MultiManager Global Funds Unit Trust AllianceBernstein Dynamic Diversified Investment Manager s Report Fund Review At current, the Fund has turned its equity exposure to be overweight in US and Emerging Markets at the expense of Europe ahead of Brexit and due to the lack of fiscal reforms in the region. The Fund remains in line with its reference index and performance continues to normalise after the mandate change to address the mismatch of currency exposures between fund and benchmark. 31 March September March 2015 Retail Class R () Retail Class R () Retail Class R () Net Asset Value (at dealing prices) 98,114,547 89,642,204 72,868,978 Number of Units in Issue 738, , ,781 Net Asset Value per Unit *Please refer to the Prospectus and relevant Supplements for a full version of the investment objective and policies. **Source: Morningstar Architas MultiManager Limited 10 May Architas MultiManager Global Funds Unit Trust

9 Architas MultiManager Global Funds Unit Trust Flexible Investment Manager s Report Investment Objective and Policies* The investment objective of the Flexible fund is to seek mediumterm capital growth. The Fund invests in interestrate, convertible and equity securities. The Fund may invest up to 10% of its assets in UCITS and acceptable NonUCITS. The Fund may also invest in financial derivative instruments ( FDIs ). In order to achieve its investment objective, the Fund invests in interestrate or convertible bond products (i.e. fixed income securities which can, at the option of the purchaser be converted into equity or equityrelated securities), equities and UCITS in the light of market trends. The Manager will allocate between asset classes by applying a valuebased opportunistic approach to seek an optimal risk/reward profile. The Fund may therefore invest in and/or be exposed to: from 0 100% of the Fund s Net Asset Value in interestrate or convertible bond products which may be government or corporate bonds of fixed or floating rate, across all maturities which are rated or unrated and which are listed or traded on Regulated Markets. Highyield investments will be limited to 20% of the Fund s Net Asset Value; from 0 100% of the Fund s Net Asset Value in mid or largecap equities; from 0 20% of the Fund s Net Asset Value in small cap equity securities; from 0 10% of the Fund s Net Asset Value in UCITS which help the Fund to achieve its own investment objective and strategies; short term liquid assets such as money market instruments, as defined in the Notices and which include UCITS and acceptable NonUCITS money market investment funds; The Fund may invest up to 20% of its Net Asset Value in emerging economies. Rothschild Investment Services act as the SubInvestment Manager to the fund. Performance Over the review period, the R share class of Flexible Fund returned 4% (net of fees) in Euro terms. The Fund markedly lagged its indicator of reference during the period due to its high beta. The portfolio manager believes that the risk of deflation is already priced in the markets and has positioned the Fund to capture the recovery of asset prices. As a result, the Fund has a high equity content and within equities a high allocation to high beta stocks such as financials (predominantly Italian banks), turnaround stories (Air France, St Gobain) and more generally peripheral equity that particularly suffered in January and February The portfolio's bond sleeve also reflects this view with a 0 duration implemented through long Italian BTP and short German bunds, accentuating the risk taken from the equity sleeve.** Market Review The last six months were an eventful period. The Chinese economic slowdown and a slowing price inflation driven by the magnitude of the decline in oil price increased the volatility of asset markets. The Federal Reserve s first rate hike in December 2015 also sparked concerns over the sustainability of the US economic recovery in a higher rate environment. Central banks across the globe subsequently adopted a more accommodative tone to tame the volatility in asset prices: the Bank of Japan introduced a negative lending rate, the European Central Bank extended their asset purchase programme. More recently, equity markets recovered from their lows as the oil price recovered and economic data stabilised across the developed world, despite continued concerns over the US recovery, the political situation in Europe (Brexit, Spanish political impasse, the state of the Italian banking system as well as the Greek debt repayment due in June 2016) and the effectiveness of the monetary policy of the Bank of Japan. Equity markets closed the period in positive territory: the US market led the way, followed by Emerging markets whilst the Japanese market was the main laggard. Looking at the currency market: The Japanese Yen strengthened against major currencies during the period and the local equity market correspondingly underperformed in Euro terms. The Euro also marginally appreciated against major developed currencies including the US Dollar. Architas MultiManager Global Funds Unit Trust 7

10 Architas MultiManager Global Funds Unit Trust Flexible Investment Manager s Report Fund Review The Fund remains in line with the manager's investment philosophy to identify value and contrarian trade ideas leading to some periods of poor relative performance but proving rewarding over the longterm. 31 March September March 2015 Retail Class R () Retail Class R () Retail Class R () Net Asset Value (at dealing prices) 94,437, ,365,245 89,852,704 Number of Units in Issue 680, , ,882 Net Asset Value per Unit *Please refer to the Prospectus and relevant Supplements for a full version of the investment objective and policies. **Source: Morningstar Architas MultiManager Limited 10 May Architas MultiManager Global Funds Unit Trust

11 Architas MultiManager Global Funds Unit Trust Fidelity European Equity Investment Manager s Report Investment Objective and Policies* The investment objective of the Fidelity European Equity fund is to provide investors with longterm capital growth from a diversified and actively managed portfolio of securities. The Fund will aim to achieve its objective by investing in equities and equityrelated securities (such as American Depository Receipts and Global Depository Receipts) listed and traded on Regulated Markets in Europe. The Fund may also invest in companies (which may be small, medium or large capitalisation companies) established outside Europe but which derive a significant proportion of their earnings from Europe. The Fund is not subject to any limitation on the portion of its net assets that may be invested in any one country, region or sector. In pursuit of its investment objective the Fund may employ financial derivative instruments ( FDI ) for investment purposes or efficient portfolio management purposes in accordance with the provisions of the Prospectus and the limitations set down in Appendix II to the Prospectus. Investments in FDIs may include, but are not limited to equity index futures (which will be used to gain efficient exposure to equities or equity related securities). The Fund will only utilise FDI s which are included in a risk management process submitted to and cleared by the Central Bank. Global exposure of the Fund will be measured and monitored using the commitment approach. The Fund will be leveraged up to 100% of its Net Asset Value as a result of its use of FDI. The Fund may also borrow up to 10% of its Net Asset Value temporarily. Fidelity Investments Limited act as the SubInvestment Manager to the fund. Performance Over the review period, the R share class of Fidelity European Equity Fund returned 4.44% (net of fees) in Euro terms compared to a return of 2.12% for the fund s benchmark (MSCI Europe NR Index) with a lower volatility than its index. Despite recent performance the longerterm track record of the fund remains ahead of benchmark.** Market Review After an initial rebound in October and November 2015 following weak performance over the Summer, the European Equity markets corrected after the Federal Reserve announced its first hike of interest rates in 6 years. Investors' concerns over the sustainability of global growth grew, as China showed signs of slowing down. In addition, the sliding oil price put pressure on the global banking system: Eurozone banks were also affected by the prolonged low yield environment, and Italian banks were particularly weak due to mounting concerns over their ability to recover nonperforming loans. After a relief rally when the oil price stabilised, markets began to discount a weaker outlook for growth and concerns over the Brexit referendum. Fund Review The Fund underperformed its benchmark of reference during the period. The fund manager's investment style was penalised in the lowquality rallies that occurred at the start and the end of the period. More specifically, the fund manager's holdings in Energy names and banking stocks (Lloyds, Prudential, Julius Baer) detracted whilst specific names such as SAP (IT) helped performance. The fund manager continues to manage the portfolio with a bias towards balance sheet quality and earnings stability. 31 March September March 2015 Retail Class R () Retail Class R () Retail Class R () Net Asset Value (at dealing prices) 62,520,826 62,206,505 53,992,615 Number of Units in Issue 425, , ,657 Net Asset Value per Unit *Please refer to the Prospectus and relevant Supplements for a full version of the investment objective and policies. **Source: Morningstar The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Prospectus contains a more detailed description of the limited relationship MSCI has with Architas MultiManager Limited and any related funds. Architas MultiManager Limited 10 May 2016 Architas MultiManager Global Funds Unit Trust 9

12 Architas MultiManager Global Funds Unit Trust Strategic Balanced Investment Manager s Report Investment Objective and Policies* Strategic Balanced fund seeks to maximise total return from income and capital growth. In order to achieve its objective, the Fund will invest in eligible investment funds or make direct investments. The eligible investment funds in which the Fund will invest will have a balanced range of underlying investments which may reflect either direct investment in, or exposure to, fixedincome securities equities and/or equityrelated securities, money market instruments, commodities, real estate, derivatives, financial indices and/or currencies. Some of the eligible investment funds may be leveraged from time to time. The Fund is not subject to any limitation on the portion of its assets that may be exposed, through investment in eligible investment funds, to any one country, region or sector or asset class. The eligible investment funds in which the Fund will invest in will be selected using qualitative and quantitative risk assessments that are determined by the Investment Manager. The Fund may invest up to 100% of its Net Asset Value in eligible investment funds and may also invest in other Funds of the Trust in accordance with the conditions set out in Appendix III to the Prospectus. In addition to the investments in the above via eligible investment funds, the Fund may also invest up to 20% of its Net Asset Value directly in fixedincome securities, which may be government or corporate bonds of fixed or floating rate, across all maturities which are rated investment grade or below investment grade (by a recognised agency) or unrated and which are listed or traded on Regulated Markets, equities (such as common or preferred stocks), short term liquid assets such as money market instruments, as defined in the UCITS Notices and which include UCITS and acceptable nonucits money market investment funds and unlisted securities in accordance with the UCITS requirements. The Fund may enter into stock lending, repurchase and/or reverse repurchase agreements solely for the purposes of efficient portfolio management and subject to the conditions and limits set out in the UCITS Notices. Performance Over the review period, the R share class of Strategic Balanced Fund returned 0.82% (net of fees) in Euro terms compared to a return of 0.36% in Euro terms for the Fund s category (EAA OE Flexible Allocation Global).** Market Review The last six months were an eventful period. The Chinese economic slowdown and a slowing price inflation driven by the magnitude of the decline in oil price increased the volatility of asset markets. The Federal Reserve s first rate hike in December 2015 also sparked concerns over the sustainability of the US economic recovery in a higher rate environment. Central banks across the globe subsequently adopted a more accommodative tone to tame the volatility in asset prices: the Bank of Japan introduced a negative lending rate, the European Central Bank extended their asset purchase programme. More recently, equity markets recovered from their lows as the oil price recovered and economic data stabilised across the developed world, despite continued concerns over the US recovery, the political situation in Europe (Brexit, Spanish political impasse, the state of the Italian banking system as well as the Greek debt repayment due in June 2016) and the effectiveness of the monetary policy of the Bank of Japan. Equity markets closed the period in positive territory: the US market led the way, followed by Emerging markets whilst the Japanese market was the main laggard. Looking at the currency market: The Japanese Yen strengthened against major currencies during the period and the local equity market correspondingly underperformed in Euro terms. The Euro also marginally appreciated against major developed currencies including the US Dollar. 10 Architas MultiManager Global Funds Unit Trust

13 Architas MultiManager Global Funds Unit Trust Strategic Balanced Investment Manager s Report Fund Review The Fund was behind its category over the period mainly due to the strong rally in risky assets as the fund tends to be in the lower risk range of its Morningstar category. Flexible was the outstanding negative contributor whilst Lemanik Global Strategy the outstanding contributor benefited from good market timing to recover from a period of underperformance in March September March 2015 Retail Class R () Retail Class R () Retail Class R () Net Asset Value (at dealing prices) 75,279,142 89,108,731 99,332,984 Number of Units in Issue 722, , ,899 Net Asset Value per Unit March September March 2015 Institutional Institutional Institutional Class I () Class I () Class I () Net Asset Value (at dealing prices) 419, ,327 49,301 Number of Units in Issue 4,155 1, Net Asset Value per Unit *Please refer to the Prospectus and relevant Supplements for a full version of the investment objective and policies. **Source: Morningstar Architas MultiManager Limited 10 May 2016 Architas MultiManager Global Funds Unit Trust 11

14 Architas MultiManager Global Funds Unit Trust Carmignac Convictions Investment Manager s Report Investment Objective and Policies* The investment objective of the Carmignac Convictions fund is to seek mediumterm capital growth. The Fund is a fund of funds, holding a minimum of 50% of its Net Asset Value in eligible investment funds. In order to achieve its investment objective, the Fund may have the following direct investments and/or exposures through the use of financial derivative instruments ( FDI ) or investment in eligible investment funds: from 0 100% of the Funds Net Asset Value in interestrate, inflationlinked or convertible bond products (such as fixed income securities which can, at the option of the purchaser be converted into equity or equityrelated securities (such as ADRs or GDRs)) which may be government or corporate bonds of fixed or floating rate, across all maturities which are rated or unrated and which are listed or traded on Regulated Markets; from 0 100% of the Funds Net Asset Value in small, mid or largecap equities or in equityrelated securities; from 0 20% of the Funds Net Asset Value in commodities through the use of FDI on commodity indices cleared by the Central Bank and investing in eligible investment funds. The Fund may also seek commodityrelated exposures through investment in equities of commodity producers or other commodityrelated issuers; from 0 100% of the Funds Net Asset Value in short term liquid assets such as money market instruments, as defined in the Notices and which include money market eligible investment funds; from 0 100% of the Funds Net Asset Value in currencies of any denomination; from 0 100% of the Funds Net Asset Value in emerging markets. The SubInvestment Manager, in its discretion, will determine what constitutes emerging markets. The SubInvestment Manager s determination of what constitutes emerging markets may change from time to time; up to 100% of the Funds Net Asset Value in securities listed or traded in Russia. Save for permitted Investments in unlisted securities, Investments of the Fund will generally be listed or traded on Regulated Markets. The Fund may also use exchangetraded or overthe counter FDI traded on Regulated Markets such as interestrate and index swaps (to gain exposure to the asset classes listed above); securities with embedded derivatives (such as warrants, credit linked notes, Euro Medium Term Notes and subscription certifications); forward foreign currency contracts or swaps (to gain exposure to currencies or to hedge interest rate or currency exposure); and equity, dividend, interestrate, currency and index futures and options (to gain efficient exposure to the investments outlined above, to reduce risk, to increase returns and for hedging purposes) in accordance with provisions of the Prospectus and the limitations set down in Appendix II to the Prospectus. With this in mind, it hedges its portfolio and/or exposure to economic sectors, geographical areas, currencies, interest rates, equities, securities and indexes, where appropriate. The Fund may enter into stocklending, repurchase and/or reverse repurchase agreements for the purposes of efficient portfolio management and subject to the conditions and limits set out in the UCITS Notices. The SubInvestment Manager will have in place a risk management process ( RMP ) cleared by the Central Bank which allows it to accurately measure, monitor and manage the associated risks. Any FDI not included in the RMP will not be utilised until such time as a revised submission has been provided to the Central Bank. The SubInvestment Manager uses a risk management technique known as absolute valueatrisk to assess the Fund s market risk to seek to ensure that the use of FDI by the Fund is within regulatory limits. The onetailed 99% confidence level, one month (20 Business Days) holding period, valueatrisk on the portfolio of the Fund shall be calculated on at least a daily basis and shall not exceed 20% of its Net Asset Value in any one day. The valueatrisk model will use one year of historical data of daily market moves. Using the valueatrisk approach for exposure measurement does not necessarily limit leverage levels. However, the Fund through its investments in FDI will be leveraged. Calculating leverage resulting from derivative usage, in accordance with the requirements of the Central Bank, as the sum of notionals underlying all the FDI positions in the Fund expressed as a percentage of its Net Asset Value the expected level of the Fund s leverage will be 200% of its Net Asset Value. Higher leverage levels are possible, but leverage will not exceed 500% of the Fund s Net Asset Value at any time. Carmignac Gestion act as the SubInvestment Manager to the fund. 12 Architas MultiManager Global Funds Unit Trust

15 Architas MultiManager Global Funds Unit Trust Carmignac Convictions Investment Manager s Report Performance Over the review period, the R share class of Carmignac Convictions Fund returned 3.51% (net of fees) in Euro terms.** Market Review The last six months were an eventful period. The Chinese economic slowdown and a slowing price inflation driven by the magnitude of the decline in oil price increased the volatility of asset markets. The Federal Reserve s first rate hike in December 2015 also sparked concerns over the sustainability of the US economic recovery in a higher rate environment. Central banks across the globe subsequently adopted a more accommodative tone to tame the volatility in asset prices: the Bank of Japan introduced a negative lending rate, the European Central Bank extended their asset purchase programme. More recently, equity markets recovered from their lows as the oil price recovered and economic data stabilised across the developed world, despite continued concerns over the US recovery, the political situation in Europe (Brexit, Spanish political impasse, the state of the Italian banking system as well as the Greek debt repayment due in June 2016) and the effectiveness of the monetary policy of the Bank of Japan. Equity markets closed the period in positive territory: the US market led the way, followed by Emerging markets whilst the Japanese market was the main laggard. Looking at the currency market: The Japanese Yen strengthened against major currencies during the period and the local equity market correspondingly underperformed in Euro terms. The Euro also marginally appreciated against major developed currencies including the US Dollar. Fund Review The Fund was penalised by its low equity exposure in the first part of the period, when markets rallied. Despite better performance in January and February of this year in sliding markets, the long allocation to Europe and Japan versus a short in the US equity market cost the fund during the past 6 months. Year to date performance has been better thanks to the cautious positioning of the Fund at the beginning of the year. 31 March September March 2015 Retail Class R () Retail Class R () Retail Class R () Net Asset Value (at dealing prices) 70,726,784 77,179,126 78,368,107 Number of Units in Issue 709, , ,595 Net Asset Value per Unit March September March 2015 Institutional Institutional Institutional Class I () Class I () Class I () Net Asset Value (at dealing prices) 1,009, , ,131 Number of Units in Issue 9,847 6,833 2,797 Net Asset Value per Unit *Please refer to the Prospectus and relevant Supplements for a full version of the investment objective and policies. **Source: Morningstar Architas MultiManager Limited 10 May 2016 Architas MultiManager Global Funds Unit Trust 13

16 Architas MultiManager Global Funds Unit Trust Income Investment Manager s Report Investment Objective and Policies* The investment objective of the Income fund is to seek to provide an attractive level of income relative to prevailing interest rates while aiming to maintain or grow capital over the medium to longer term. In order to achieve its objective, the Fund will invest in eligible investment funds and make direct investments. The eligible investment funds in which the Fund will invest will have a range of underlying investments which may reflect either direct investment in, or exposure to, fixedincome securities, equities and/or equityrelated securities, money market instruments, commodities, real estate, derivatives, financial indices and/or currencies. Some of the eligible investment funds may be leveraged from time to time. The Fund is not subject to any limitation on the portion of its assets that may be exposed, through investment in eligible investment funds, to any one country, region or sector or asset class and may invest in eligible investment funds which invest in or have exposure to emerging markets. The eligible investment funds in which the Fund will invest will be selected using qualitative and quantitative risk assessments that are determined by the Investment Manager or any subinvestment manager appointed by the Investment Manager. Income may invest up to 100% of its Net Asset Value in eligible investment funds and may also invest in other Funds of the Trust in accordance with the conditions of Appendix III to the Prospectus. The Fund may also invest directly in equities (such as common or preferred stocks), units or shares of Real Estate Investment Trusts ( REITS ) and equity relatedsecurities (such as American Depositary Receipts ( ADRs ) and Global Depositary Receipts ( GDRs ). The Fund may also invest in fixedincome securities, which may be government or corporate bonds of fixed or floating rate, across all maturities which are rated investment grade or below investment grade (by a recognised agency) or unrated and which are listed or traded on Regulated Markets, short term liquid assets such as money market instruments, as defined in the UCITS Notices and which include UCITS and acceptable nonucits money market investment funds and unlisted securities in accordance with the UCITS requirements. The Fund may gain exposure to assets through direct investments or investment in eligible investment funds. Investment in eligible investment funds as opposed to direct investments may be made for reasons of diversification, efficiency or to gain access to particular investment managers or asset classes. Income may be more than 20% exposed to emerging markets through either direct investment or investment in eligible investment funds. Schroder Investment Management Limited act as the SubInvestment Managers for two thirds of the fund, the remainder is managed by Architas MultiManager Limited. 14 Architas MultiManager Global Funds Unit Trust

17 Architas MultiManager Global Funds Unit Trust Income Investment Manager s Report Performance Over the review period, the R share class of Income Fund returned 1.53% (net of fees) in Euro terms. Over the period, the JPM fund contributed positively despite challenging months in January and March whilst BGF and the Schroder mandate closed the period with disappointing performance. Of the newly bought funds, AB has been an outstanding contributor to performance in the context of a rebound in risky asset prices.** Market Review The last six months were an eventful period. The Chinese economic slowdown and a slowing price inflation driven by the magnitude of the decline in oil price increased the volatility of asset markets. The Federal Reserve s first rate hike in December 2015 also sparked concerns over the sustainability of the US economic recovery in a higher rate environment. Central banks across the globe subsequently adopted an accommodative tone to tame the volatility in asset prices: the Bank of Japan introduced a negative lending rate, the European Central Bank extended their asset purchase programme. More recently, equity markets regained pace as the oil price and economic data stabilised across the developed world despite accumulating concerns over the US recovery, the political situation in Europe (Brexit, formation of a Spanish government, the state of the Italian banking system as well as the Greek debt repayment programme due in June 2016) and the effectiveness of the monetary policy of the Bank of Japan. Equity markets closed the period in positive territory: the US market led the way, followed by Emerging markets whilst the Japanese market was the main laggard. Looking at the currency market: The Japanese Yen strengthened against major currencies during the period and the local equity market correspondingly underperformed developed countries in Euro terms. The Euro also marginally appreciated against major developed currencies including the US Dollar. Fund Review The makeup of the portfolio has changed beginning February 2016 from three components including the Schroder mandate to 6 components, all MultiAsset funds (Blackrock, JPM (both already invested), Franklin, AB, Schroder and AXA IM). Over the period, the JPM fund contributed positively despite challenging months in January and March whilst BGF and the Schroder mandate closed the period with disappointing performance. Of the newly bought funds, AB has been an outstanding contributor to performance in the context of a rebound in risky asset prices. 31 March September March 2015 AXA Selectiv AXA Selectiv AXA Selectiv Revenus Revenus Revenus Distribution R () Distribution R () Distribution R () Net Asset Value (at dealing prices) 54,406,965 53,267,760 52,168,613 Number of Units in Issue 614, , ,355 Net Asset Value per Unit March September March 2015 Income GBP Income GBP Income GBP Accumulation I (GBP) Accumulation I (GBP) Accumulation I (GBP) Net Asset Value (at dealing prices) 2,779,519 2,544,201 2,674,106 Number of Units in Issue 30,000 30,000 30,000 Net Asset Value per Unit March September 2015 Income GBP Income GBP Accumulation I (GBP) Accumulation I (GBP) Net Asset Value (at dealing prices) 22,192,249 15,713,661 Number of Units in Issue 231, ,195 Net Asset Value per Unit *Please refer to the Prospectus and relevant Supplements for a full version of the investment objective and policies. **Source: Morningstar Architas MultiManager Limited 10 May 2016 Architas MultiManager Global Funds Unit Trust 15

18 Architas MultiManager Global Funds Unit Trust Statement of Comprehensive Income for the Period Ended 31 March 2016 Notes Income Interest income Dividend income Realised (losses) on financial instruments at fair value through profit or loss 3 Net change in unrealised gains/(losses) on financial instruments at fair value through profit or loss 3 Total Investment Income/(Expense) Expenses Manager fees 7,10 Audit fees 7 Administration fees 7 Trustee fees 7 Transfer agency fees 7 Other expenses Total Expenses Expense reimbursement 7 Total Net Expenses Net Income/(Expense) AllianceBernstein Dynamic Diversified 330, ,414 (634,974) 1,138,819 1,312,991 (967,975) (6,937) (24,668) (34,191) (6,717) (14,167) (1,054,655) 34,044 (1,020,611) 292,380 Flexible 623, ,898 (248,425) (4,477,628) (3,741,427) (977,894) (5,514) (25,797) (20,343) (7,052) (13,634) (1,050,234) 15,858 (1,034,376) (4,775,803) Fidelity European Equity 612,004 (3,029,621) (1,458,653) (3,876,270) (510,837) (5,330) (22,594) (24,673) (4,245) (28,071) (595,750) 20,488 (575,262) (4,451,532) Finance Costs: Interest expense Profit/(Loss) for the financial period before withholding tax (38,929) 253,451 (3,952) (4,779,755) (2,636) (4,454,168) Withholding Tax Profit/(Loss) for the financial period after withholding tax Increase/(decrease) in net assets resulting from operations (103,125) 150, ,326 (35,074) (4,814,829) (4,814,829) (69,658) (4,523,826) (4,523,826) Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Statement of Comprehensive Income. The notes to the financial statements form an integral part of these financial statements. 16 Architas MultiManager Global Funds Unit Trust

19 Architas MultiManager Global Funds Unit Trust Statement of Comprehensive Income for the Period Ended 31 March 2016 Notes Income Interest income Dividend income Realised gains/(losses) on financial instruments at fair value through profit or loss 3 Net change in unrealised (losses)/gains on financial instruments at fair value through profit or loss 3 Total Investment (Expense)/Income Expenses Manager fees 7,10 Audit fees 7 Administration fees 7 Trustee fees 7 Transfer agency fees 7 Other expenses Total Expenses Expense reimbursement 7 Total Net Expenses Net (Expense)/Income Strategic Balanced 10,383 (664,901) (654,518) (366,070) (5,505) (13,621) (8,283) (2,992) (16,632) (413,103) (413,103) (1,067,621) Carmignac Convictions (2,414,850) 197,308 (2,217,542) (373,438) (7,070) (13,296) (41,201) (3,461) (16,412) (454,878) (454,878) (2,672,420) Income 2,255,281 (2,565,680) 2,071,979 1,761,580 (460,841) (6,782) (46,348) (40,469) (2,308) (17,879) (574,627) (574,627) 1,186,953 Finance Costs: Interest expense (Loss)/Profit for the financial period before withholding tax (2,606) (1,070,227) (14,156) (2,686,576) (5,403) 1,181,550 Withholding Tax (Loss)/Profit for the financial period after withholding tax (Decrease)/increase in net assets attributable to redeemable participating unitholders resulting from operations (1,070,227) (1,070,227) (2,686,576) (2,686,576) (36,633) 1,144,917 1,144,917 Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Statement of Comprehensive Income. The notes to the financial statements form an integral part of these financial statements. Architas MultiManager Global Funds Unit Trust 17

20 Architas MultiManager Global Funds Unit Trust Statement of Comprehensive Income for the Period Ended 31 March 2015 Notes Income Interest income Dividend income Bank interest Realised gains on financial instruments at fair value through profit or loss 3 Net change in unrealised gains on financial instruments at fair value through profit or loss 3 Total Investment Income Expenses Manager fees 7,10 Audit fees 7 Administration fees 7 Trustee fees 7 Transfer agency fees 7 Other expenses Total Expenses Expense reimbursement 7 Total Net Expenses Net Income AllianceBernstein Dynamic Diversified 6,088 3,104,474 5,320,800 8,431,362 (593,662) (6,439) (19,563) (6,801) (4,936) (4,485) (635,886) 2,318 (633,568) 7,797,794 Flexible 304, , ,594,143 8,897,345 12,028,156 (684,388) (5,212) (24,314) (16,931) (3,873) (6,288) (741,006) 7,610 (733,396) 11,294,760 Fidelity European Equity 662, ,626,454 5,794,661 9,083,894 (331,251) (5,367) (19,545) (12,748) (711) (20,230) (389,852) 8,689 (381,163) 8,702,731 Finance Costs: Interest expense Profit for the financial period before withholding tax (2,928) 7,794,866 (1,185) 11,293,575 (304) 8,702,427 Withholding Tax Profit for the financial period after withholding tax Increase in net assets resulting from operations 7,794,866 7,794,866 (24,896) 11,268,679 11,268,679 (74,268) 8,628,159 8,628,159 Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Statement of Comprehensive Income. The notes to the financial statements form an integral part of these financial statements. 18 Architas MultiManager Global Funds Unit Trust

21 Architas MultiManager Global Funds Unit Trust Statement of Comprehensive Income for the Period Ended 31 March 2015 Notes Income Interest income Dividend income Bank interest Realised (losses)/gains on financial instruments at fair value through profit or loss 3 Net change in unrealised gains on financial instruments at fair value through profit or loss 3 Total Investment Income Expenses Manager fees 7,10 Audit fees 7 Administration fees 7 Trustee fees 7 Transfer agency fees 7 Other expenses Total Expenses Expense reimbursement 7 Total Net Expenses Net Income Strategic Balanced (202,686) 8,234,251 8,031,565 (402,019) (5,984) (16,892) (7,935) (797) (5,919) (439,546) (439,546) 7,592,019 Carmignac Convictions 3,700,113 5,550,874 9,250,987 (321,498) (6,286) (8,525) (31,246) (610) (8,638) (376,803) (376,803) 8,874,184 Income 1,121,640 (3,697,262) 3,846,715 1,271,093 (329,802) (6,286) (41,637) (58,065) (565) (7,617) (443,972) 7,614 (436,358) 834,735 Finance Costs: Interest expense Profit for the financial period before withholding tax (850) 7,591,169 (8,830) 8,865,354 (310) 834,425 Withholding Tax Profit for the financial period after withholding tax Increase in net assets attributable to redeemable participating unitholders resulting from operations 7,591,169 7,591,169 8,865,354 8,865,354 (29,056) 805, ,369 Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Statement of Comprehensive Income. The notes to the financial statements form an integral part of these financial statements. Architas MultiManager Global Funds Unit Trust 19

22 Architas MultiManager Global Funds Unit Trust Statement of Financial Position as at 31 March 2016 Notes Assets Financial assets at fair value through profit or loss: Investments at fair value 2 Unrealised gain on open futures contracts 2 Unrealised gain on open forward foreign currency exchange contracts 2 Credit default swaps at fair value 2 Total return swaps at fair value 2 Options purchased at fair value 2 Cash at bank 6 Cash held with brokers for open futures contracts 6 Cash received as collateral for open financial derivative positions 6 Receivable for investments sold Receivable for fund shares issued Dividends receivable Interest receivable Other debtors Total Assets Liabilities Financial liabilities at fair value through profit or loss: Unrealised loss on open futures contracts 2 Unrealised loss on open forward foreign currency exchange contracts 2 AllianceBernstein Dynamic Diversified 89,871, , ,081 65, , ,410 6,935, ,683 1,405, , , ,372 26, ,283,642 (72,222) (149,442) Flexible 87,922, ,046 5,663, , ,642 28, , ,074 34,002 95,747,334 (153,113) Fidelity European Equity 62,337, , ,431 91, , ,319 41,398 63,561,510 Creditors amounts falling due within one year Bank overdraft 6 Cash due to broker for open futures contracts 6 Cash due to broker for open financial derivative positions 6 Payable for investments purchased Payable for fund shares redeemed Manager fees payable 7 Trustee fees payable 7 Administration fees payable 7 Transfer agent fees payable 7 Audit fees payable 7 Distributions payable Other liabilities Total Liabilities Net assets (at bid prices) Equity (98,894) (295,731) (1,218,662) (203,538) (133,627) (11,022) (14,927) (6,748) (6,494) (2,211,307) 98,072,335 98,072,335 (906,842) (141,159) (152,455) (5,782) (2,366) (519) (16,303) (1,378,539) 94,368,795 94,368,795 (947,653) (30,510) (78,772) (4,166) (5,529) (5,504) (1,072,134) 62,489,376 62,489,376 Total equity at the end of the period 98,072,335 94,368,795 62,489,376 The notes to the financial statements form an integral part of these financial statements. 20 Architas MultiManager Global Funds Unit Trust