FP 8AM Multi-Strategy Portfolio I

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1 FP 8AM Multi-Strategy Portfolio I Short Report for the year ended 30 June 2016 Investment Objective and Policy The objective of the Fund is to achieve long term capital growth. The Fund will aim to operate within a volatility range* of between 0.00 and 4.5 and to achieve its objective through strategic asset allocation between a variety of asset classes, markets and strategies. Implementation will be predominately by means of investment in carefully selected third party Collective Investment Schemes and investment trusts selected from the whole of market. The Investment Adviser will endeavour to maintain within the portfolio a measure of diversification between lowly correlated asset classes. The Fund will also be able to invest in equities, bonds, warrants, money market instruments, cash and deposits. The Fund will be managed in a manner that maintains eligibility for the stocks and shares component of an individual savings account. The Fund will only make investments into Collective Investment Schemes where their net asset value calculations are scheduled on at least a monthly basis and where, at the time of investment by the Fund, the Investment Adviser is satisfied that the assets are fully liquid. The use of derivatives and/or hedging transactions are permitted in connection with the efficient portfolio management of the Fund, and borrowing will be permitted under the terms of the Regulations. On giving 60 days' notice to Shareholders, the Fund may, in addition to its other investment powers, use derivatives and forward transactions for investment purposes. It is not intended that the use of derivatives in this way will change the risk profile of the Fund. *Based on annualised 12 month standard deviation. Fund Facts Risk Profile Interim/Annual Accounting End Dates 31 December 30 June Ex-dividend (xd) Dates 01 January 01 July Income Distribution/ Accumulation Dates Last day of February 31 August Please refer to the Full Prospectus for details of all the risks. The Fund has exposure to credit, counterparty and usual market risks. Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up. Exchange rate changes may cause the value of any overseas investments to rise or fall. You should always regard investments in the Fund as medium to long term. Page 1

2 Charges Share Class Initial Charge Annual Management Charge Total Expense Ratio Total Expense Ratio 30/06/15 Share Class A Income 1.00% 0.15% 2.83% 3.01% Distributions/Accumulations Distributions Distribution payable 31/08/16 Distribution paid 31/08/15 Distribution paid 29/02/16 Distribution paid 28/02/15 Share Class A Income Comparative Tables Performance Record Change in net assets per Share (p) A Income 30/06/15 (p) 27/06/14 (p) Opening net asset value per Share Return before operating charges* Operating charges (2.90) (3.12) (2.89) Return after operating charges* (1.18) Distributions on income Shares (1.07) (1.00) (0.59) Closing net asset value per Share * after direct transaction costs of: Performance Return after operating charges (1.15%) 0.77% 6.10% Other information Closing net asset value 2,902,581 2,424,534 2,752,469 Closing number of Shares 2,883,608 2,355,886 2,669,181 Operating charges 2.83% 3.01% 2.86% Direct transaction costs 0.00% 0.00% 0.00% Prices Highest Share price Lowest Share price Page 2

3 Comparative Tables (continued) Major Holdings Top 10 Holdings % of Fund Old Mutual Global Equity Absolute Return Baillie Gifford Corporate Bond 8.42 CF Miton UK Multi Cap Income 7.51 Kames High Yield Bond 6.96 Blackstone GSO Loan Financing 6.55 Invesco Perpetual Global Financial Capital 6.20 TwentyFour Income 6.19 M&G Strategic Corporate Bond 5.67 Absolute Insight Credit 5.63 NGAM H2O MultiReturns 5.48 Top 10 Holdings % of Fund 30/06/15 Old Mutual Global Equity Absolute Return CF Miton UK Multi Cap Income 9.17 Baillie Gifford Corporate Bond 9.09 Kames High Yield Bond 8.73 TwentyFour Income 7.81 NGAM H2O MultiReturns 7.43 JPMorgan Income Opportunity 7.26 Invesco Perpetual Global Financial Capital 6.79 Absolute Insight Credit 6.18 M&G Optimal Income 4.75 Portfolio Information Breakdown by Geographic Region % % % 10.41% 0 Global [51.36%] United Kingdom [35.01%] Europe [15.24%] Net other assets/(liabilities) [(1.61%)] Comparative figures shown above in square brackets relate to 30 June Page 3

4 Investment Manager s Report Investment Review Over the past 12 months your Fund decreased in value by 1.71%*. The Fund is a fund of funds portfolio which instead of investing directly in shares of companies such as BP, Sainsbury s, McDonalds, Sony, Amazon, Samsung or BT, the manager invests in existing mutual funds those offered by companies such as M&G, Fidelity and Artemis. A typical fund might contain shares of underlying companies; a typical fund of funds portfolio might contain funds. Therefore, do not be too concerned when looking at what looks like a relatively small stock list. In reality, a fund of funds portfolio is much more diversified than a typical mutual fund. A great advantage of investing in a fund of funds portfolio is the benefit of diversification each investment manager can invest in different assets and asset classes equity, debt, or property for instance. Adding to this different sub sectors market capitalisation, term of debt, quality of debt, streams of income and so on allows further diversification. Another advantage to this is managing the manager the investment manager that runs a fund for Schroder for example might be a value or a growth manager and adopt a different style to one from Jupiter. The role of a fund of funds manager is to balance and blend styles to deliver a portfolio that meets with the investment objectives. The manager of this Fund focuses very closely on the risk characteristics of the individual holdings as well as the overall portfolio and managing to a tight volatility band. The investment approach taken on FP 8AM Global Multi Strategy Portfolio I is broadly buy and hold. Do not expect the portfolio activity to be excessive. Remember, the underlying holdings within the fund managed by Baillie Gifford for instance are constantly changing; trying to double guess what the manager is double guessing what the market is going to do is not the goal. **Over the past 12 months, your fund has reduced the number of holdings from 17 to 15 by selling two funds and purchasing no new ones. During the period under review the M&G Optimal Income and Schroder Global Property Income Maximiser funds were redeemed. During the past twelve months, exposure to equity holdings fell from 13.81% to 12.10% whilst the cash element of the portfolio rose to 10.99% from -1.03%. *Source Financial Express **Source 8AM Global Market Overview Your portfolio is designed to be diversified. It has been invested across a large number of investments that invest in a large number of assets and asset classes as they provide many different benefits to the portfolio. Each individual holding is in the portfolio through its own merit, but also because it helps meet the overall objectives of the portfolio. FP 8AM Multi Strategy Portfolio I has a tight volatility boundary in which to operate which will lead to the Fund predominantly having a larger exposure to defensive assets such as fixed income holdings rather than equity holdings for instance. The asset allocation will change over time according to market volatility, quality of manager, quality of underlying Funds and economic outlook. Equity markets have been very strong since the launch of the Fund and this has helped drive the performance of the Fund since launch, but your manager is not complacent and will actively monitor the portfolio to deliver the best risk-adjusted returns. Page 4

5 Investment Manager s Report (continued) Market Overview (continued) Over the past 12 months, performance of the underlying holdings has been mixed there have obviously been some strong performers, but also some underachievers and this is to be expected from a broadly diversified investment portfolio. We are longer-term investors and believe the mix of assets is right for the market conditions we find ourselves in today and are. We see risks rising and many traditional asset classes converging when it comes to correlations and thus are positioning the portfolio accordingly. Nobody knows on a daily basis where the global capital markets are heading, so we aim to build a portfolio with the longer-term in mind. We utilise the skills of a wide variety of managers and investment styles so that we can smooth out the short-term volatilities and deliver you a balanced portfolio that should meet with your income and growth requirements for a suitable level of risk. Outlook Our last outlook ended with the saying may you live in interesting times and from both an economic and political one we certainly continue to live in those times. Politically, 2016 has thrown up a huge curve ball in the EU referendum outcome with the rise of the populist vote. The major parties are in disarray a new Prime Minister is needed for the ruling party and the opposition leader is challenging a vote of no confidence. Only a few days after the UK vote, the establishment won in Spain, quelling an uprising from Podemos who previously seemed to be gaining traction. There will be a change of President in the US come November and over the next 18 months, 90% of the GDP of Europe will go to the voting booths. This uncertainty does not make for a great backdrop for investing. The equity markets have come a long way since the Global Financial Crisis interest rates have fallen to levels that should spur investment and confidence but have not, inflation is nowhere to be seen and over $20trillion of sovereign debt sits on yields below 1%. Oil prices have fallen dramatically over the past year, which should be positive economically. However, the Chinese economy is slowing, the UK could enter recession over the next 12 months and volatility is rising. Stock market valuations look stretched. We maintain our cautious stance. Investment Manager 8AM Global LLP 1 August 2016 Significant Information From 2 November 2015, the Company has changed name from Elite Hasley Investment Funds to FP 8AM Investment Funds, as well as the Sub-fund, which changed name from: Old name Elite Hasley Multi-Strategy Portfolio I New Name FP 8AM Multi-Strategy Portfolio I Page 5

6 Significant Information (continued) Under the Alternative Investment Fund Managers Directive ( AIFMD ), acting as the Alternative Investment Fund Manager ( AIFM ), WAY Fund Managers is required to disclose how those whose actions have a material impact on the Funds are remunerated. The remuneration strategy across WAY Fund Managers is governed by the Remuneration Committee, a committee appointed by the WAY Fund Managers' Board. The Remuneration Committee has established an AIFM Remuneration Policy designed to ensure the AIFM Remuneration Code in the UK Financial Authority handbook is met proportionately for all AIFM Remuneration Code Staff. WAY Fund Managers considers its activities as non complex due to the fact that regulation limits the AIF strategies conducted and the scope of investment in such a way that investor risk is mitigated. The discretion of WAY Fund Managers and the portfolio manager is strictly controlled within certain pre-defined parameters as determined in the prospectus of each Alternative Investment Fund. In its role as an AIFM, WAY Fund Managers deems itself as lower risk due to the nature of the activities it conducts. WAY Fund Managers does not pay any form of variable remuneration currently. Therefore WAY Fund Managers has provided a basic overview of how staff whose actions have a material impact on the Funds are remunerated. June 2016 Number of Beneficiaries Total remuneration paid Fixed remuneration Variable remuneration paid Carried interest paid by the AIF Total remuneration paid by the AIFM during the financial year , , Remuneration paid to employees of the AIFM who have a material impact on the risk profile of the AIF 8 62,149 62, Due to the size and structure of WAY Fund Managers it is determined that employees of the AIFM who have a material impact on the risk profile of the AIF include the Board and the Head of Risk and Compliance. The delegated investment manager is subject to regulatory requirements on remuneration that WAY Fund Managers deem to be equally as effective as those detailed in the AIFMD, which would include the Capital Requirements Directive or Markets in Financial Instruments Directive. From 12 November 2015, the auditor for this Company changed from Grant Thornton LLP to Deloitte LLP. This brings the Company in line with other Companies operated within the ACD's group. The information in this report is designed to enable Shareholders to make an informed judgment on the activities of the Fund during the period it covers and the result of those activities at the end of the period. The long Report and Accounts are available free of charge on request. For more information about the activities and performance of the Fund during the period and previous periods, please contact: Authorised Corporate Director WAY Fund Managers Limited Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset, BH21 7SB Customer Service Centre: Authorised and regulated by the Financial Conduct Authority (FCA) Depositary Northern Trust Global Services Limited. 50 Bank Street, Canary Wharf, London, E14 5NT Authorised by the Prudential Regulation Authority (PRA) and regulated by the FCA and the PRA Investment Manager 8AM Global LLP The Thatched Office, Manor Farm Kimpton, Andover, Hampshire, SP11 8PG Authorised and regulated by the FCA Please note that telephone calls may be recorded for monitoring and training purposes, and to confirm investors' instructions Auditor Grant Thornton UK LLP 30 Finsbury Square, London, EC2P 2YU From 12 November 2015 Deloitte LLP Chartered Accountants and Statutory Auditors Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2DB Page 6