PORTFOLIO ADVANTAGE FUNDS ICVC

Transcription

1 UNAUDITED INTERIM REPORT AND FINANCIAL STATEMENTS THREADNEEDLE PORTFOLIO ADVANTAGE FUNDS ICVC JUNE 2016 THREADNEEDLE PORTFOLIO ADVANTAGE FUNDS ICVC COLUMBIATHREADNEEDLE.COM

2 Contents Company Information... 2 Authorised Corporate Director s Report... 3 Multi Asset Bond and Alternatives Fund Multi Asset Equity and Alternatives Fund Total Purchases and Sales*... 8 Further Information*... 9 Directory* *These pages, together with the investment reports of the individual funds comprise the Authorised Corporate Director s Report. 1

3 Company Information Company Threadneedle Portfolio Advantage Funds ICVC (the Company) Registered Number IC Registered Office Cannon Place, 78 Cannon Street, London EC4N 6AG Director There is a sole director, the Authorised Corporate Director (the ACD), which is Threadneedle Investment Services Limited. Board of Directors of the ACD and Alternative Investment Fund Manager K Cates (appointed on 29 March 2016) C D Fleming (Resigned from the Board 29 April 2016) T N Gillbanks D Jordison D Kremer (Appointed to the Board on 22 July 2016) A Roughead L Weatherup (Appointed to the Board on 11 July 2016) 2

4 Authorised Corporate Director s Report The ACD, Threadneedle Investment Services Limited, has pleasure in presenting the Interim Report and Financial Statements for Threadneedle Portfolio Advantage Funds ICVC for the 6 months to 30 June On the 13th November the sole shareholder of the sub-funds of the Threadneedle Portfolio Advantage Funds ICVC redeemed their shares via an in-specie transfer. Following this redemption Threadneedle Investment Services as Authorised Corporate Director (ACD) has commenced the winding up of the sub funds in accordance with the prospectus and the COLL Sourcebook. DIRECTORS STATEMENT We hereby certify the Interim Report and Financial Statements for each of the funds listed on page 1 (contents page) on behalf of the directors of Threadneedle Investment Services Limited. T N Gillbanks D Jordison 18 August 2016 We hope that you find the report informative. Should you require any further information regarding any aspect of your investment, or about our other products, we would be pleased to help. Alternatively, you may find it helpful to visit columbiathreadneedle.com for further information about Columbia Threadneedle Investments. Thank you for your continued support. Tim Gillbanks Director 3

5 Threadneedle Multi Asset Bond and Alternatives Fund Investment Report The disclosures below applied throughout the year. Commencement of the wind-up process for the Fund began on 13 November Further detail is included in the Director s Report on page 3. Investment Objective The investment objective of the Multi Asset Bond and Alternatives Fund is to achieve total return. Investment Policy The ACD s investment policy is to invest primarily in a range of collective investment schemes in order to gain exposure to fixed income, commodities, hedge funds, property and other alternative asset classes. If the ACD considers it desirable, the fund may further invest in transferable securities, derivatives, forward transactions, cash, deposits and money market instruments. STATEMENT OF TOTAL RETURN Income Net capital losses (493) Revenue (2) 2,081 Expenses 6 (50) Net revenue before taxation 4 2,031 Taxation (1) (36) Net revenue after taxation 3 1,995 Total return 3 1,502 Change in net assets attributable to shareholders from investment activities 3 1,502 BALANCE SHEET as at 30 June 2016 December Assets: Fixed assets: Investments Current assets: Debtors Cash and bank balances Total assets Liabilities: Creditors: Other creditors (170) (222) Total liabilities (170) (222) Net assets attributable to shareholders STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS Opening net assets attributable to shareholders 161,254 Amounts receivable on the issue of shares 45,154 Amounts payable on the cancellation of shares (3) (8,523) (3) 36,631 Dilution adjustment Change in net assets attributable to shareholders from investment activities (see statement of total return above) 3 1,502 Closing net assets attributable to shareholders 199,387 The comparatives used within the Statement of Change in Net Assets Attributable to Shareholders are for the corresponding period of the previous year. Therefore the opening net assets attributable to shareholders for the current year are at 31 December 2015 whilst the figure disclosed in the comparatives closing net assets attributable to shareholders is at 30 June Notes to the financial statements 1 ACCOUNTING POLICIES (a) Basis of accounting The financial statements have been prepared on the historical cost basis, as modified by the revaluation of investments, in compliance with FRS 102 and in accordance with the Statement of Recommended Practice for Authorised Funds (SORP) issued by the Investment Management Association in May The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2015 and are described in those financial statements. Accordingly the going concern basis of preparation is no longer appropriate for the fund and the financial statements have been prepared on a basis other than going concern. No adjustments were necessary in the fund s financial statements to reduce assets to their realisable values, to provide for liabilities arising from the termination and to reclassify fixed assets and long-term liabilities as current assets and liabilities. (b) Notes In accordance with the guidelines of the SORP the funds have taken advantage of the facility not to provide further notes to the financial statements. 4

6 Threadneedle Multi Asset Bond and Alternatives Fund Comparative Table Class M Net Accumulation Shares* Class M Gross Accumulation Shares 31/12/ /12/ /12/ /12/2015* 31/12/ /12/2013 Change in net assets per share Opening net asset value per share (p) Return before operating charges (p) (0.10) 2.62 (1.51) (0.19) 3.40 (0.42) Operating charges (p) (0.21) (0.22) (0.47) (0.25) (0.29) (0.47) Return after operating charges (p) (0.31) 2.40 (1.98) (0.44) 3.11 (0.89) Closing net asset value per share** (p) Retained distribution on accumulation shares (p) *after direct transaction costs of (p) Performance Return after charges (%) Other information Closing net asset value ( 000)** , ,249 92,584 Closing number of shares** 3,000 3,000 3, ,316, ,521,902 64,238,922 Total expenses (%) Direct transaction costs (%) Prices Highest share price (p) Lowest share price (p) A Total Expense Ratio is a figure representing all operating charges and expenses as a percentage of a shareclass s value. It includes the annual management fee as well as all the administrative costs incurred by the shareclass. The calculation includes the fund s share of the expenses of the underlying funds. The share of the costs of the underlying funds may fluctuate due to changes in investment decisions, which may be required as a result of changes in market conditions. Only available to eligible investors. *Nothing has been shown for the six-month period to 30 June 2016 as the fund s last dealing point was on 13 November **This figure is as at the last dealing point of share class M Net Accumulation on 6 November 2015 and share class M Gross Accumulation on 13 November

7 Threadneedle Multi Asset Equity and Alternatives Fund Investment Report The disclosures below applied throughout the year. Commencement of the wind-up process for the Fund began on 13 November Further detail is included in the Director s Report on page 3. Investment Objective The investment objective of the Multi Asset Equity and Alternatives Fund is to achieve capital growth. Investment Policy The ACD s investment policy is to invest primarily in a range of collective investment schemes in order to gain exposure to equities, commodities, hedge funds, property and other alternative asset classes. If the ACD the fund may further invest in transferable securities,considers it desirable, the fund may further invest in transferable securities, derivatives, forward transactions, cash, deposits and money derivatives, forward transactions, cash, deposits and money market instruments. STATEMENT OF TOTAL RETURN Income Net capital gains 7,038 Revenue (6) 2,517 Expenses 6 (66) Net revenue before taxation 2,451 Taxation (237) Net revenue after taxation 2,214 Total return 9,252 Change in net assets attributable to shareholders from investment activities 9,252 BALANCE SHEET as at 30 June 2016 December Assets: Fixed assets: Investments Current assets: Debtors 30 Cash and bank balances Total assets Liabilities: Creditors: Other creditors (146) (340) Total liabilities (146) (340) Net assets attributable to shareholders STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS Opening net assets attributable to shareholders 226,756 Amounts receivable on the issue of shares 44,345 Amounts payable on the cancellation of shares (14,468) 29,877 Dilution adjustment 5 Change in net assets attributable to shareholders from investment activities (see statement of total return above) 9,252 Closing net assets attributable to shareholders 265,890 The comparatives used within the Statement of Change in Net Assets Attributable to Shareholders are for the corresponding period of the previous year. Therefore the opening net assets attributable to shareholders for the current year are at 31 December 2015 whilst the figure disclosed in the comparatives closing net assets attributable to shareholders is at 30 June Notes to the financial statements 1 ACCOUNTING POLICIES (a) Basis of accounting The financial statements have been prepared on the historical cost basis, as modified by the revaluation of investments, in compliance with FRS 102 and in accordance with the Statement of Recommended Practice for Authorised Funds (SORP) issued by the Investment Management Association in May The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2015 and are described in those financial statements. Accordingly the going concern basis of preparation is no longer appropriate for the fund and the financial statements have been prepared on a basis other than going concern. No adjustments were necessary in the fund s financial statements to reduce assets to their realisable values, to provide for liabilities arising from the termination and to reclassify fixed assets and long-term liabilities as current assets and liabilities. (b) Notes In accordance with the guidelines of the SORP the funds have taken advantage of the facility not to provide further notes to the financial statements. 6

8 Threadneedle Multi Asset Equity and Alternatives Fund Comparative Table Class M Net Accumulation Shares* 31/12/ /12/ /12/2013 Change in net assets per share Opening net asset value per share (p) Return before operating charges (p) Operating charges (p) (0.24) (0.21) (0.51) Return after operating charges (p) Closing net asset value per share** (p) Retained distribution on accumulation shares (p) *after direct transaction costs of (p) Performance Return after charges (%) Other information Closing net asset value ( 000)** 280, , ,022 Closing number of shares** 167,756, ,430,812 93,507,250 Total expenses (%) Direct transaction costs (%) Prices Highest share price (p) Lowest share price (p) A Total Expense Ratio is a figure representing all operating charges and expenses as a percentage of a shareclass s value. It includes the annual management fee as well as all the administrative costs incurred by the shareclass. The calculation includes the fund s share of the expenses of the underlying funds. The share of the costs of the underlying funds may fluctuate due to changes in investment decisions, which may be required as a result of changes in market conditions. *Nothing has been shown for the six-month period to 30 June 2016 as the fund s last dealing point was on 13 November **This figure is as at the last dealing point of the share classes on 13 November

9 Total Purchases and Sales June June Fund Multi Asset Bond and Alternatives Fund Total purchases for the period 92,662 Total sales for the period 55,438 Multi Asset Equity and Alternatives Fund Total purchases for the period 62,940 Total sales for the period 30,928 8

10 Further Information Threadneedle Portfolio Advantage Funds ICVC (the Company) is an openended investment company with variable under regulation 14 (Authorisation) of the Open-Ended Investment Companies Regulations 2001 (as amended) and the shareholders are not liable for the debts of the Company. The Company is structured as an umbrella company in that different funds may be established from time to time by the ACD with the approval of the (FCA) and the agreement of the Depositary. Prospectus A Prospectus, which describes each fund in detail, is available from Threadneedle Investment Services Limited, International Financial Data Services, PO Box 10033, Chelmsford CM99 2AL. The funds are segregated portfolios of assets and, accordingly, the assets of a fund belong exclusively to that Fund and shall not be used to discharge directly or indirectly the liabilities of, or claims against, any other person or body, including the umbrella, or any other fund, and shall not be available for any such purpose. Each fund has the investment powers equivalent to those of a non-ucits retail scheme (NURS) (as defined in the FCA rules). to their investors making a FINROF exempt from tax on any offshore income gains realised on the disposal of its investments. However, any gains realised by UK investors on the disposal of their shares in the FINROFs will be subject to tax as income. Report and Financial Statements The annual accounting period for the funds ends on 31 December and the interim reporting period ends on 30 June. This report containing the full financial statements will be available from Investment Services Limited, International Financial Data Services, PO Box Chelmsford Essex CM99 2AL. Foreign Account Tax Compliance Act (FATCA) Threadneedle and its funds (Threadneedle) have registered with the US Internal Revenue Service in accordance with FATCA and other current related legislation. Threadneedle has put in place appropriate processes and procedures to maintain its compliance with the statutory requirements, including ensuring that Threadneedle obtain the required certification from its clients and investors as necessary to mitigate any requirement upon Threadneedle to withhold or report such clients under the legislation. This registration and compliance process will ensure that Threadneedle will not suffer withholding tax under FATCA. Closure of the funds of the Company The funds of the Company are currently in the process of being wound up with effect from 31 December 2015, following which an order will be sought from the FCA to revoke its authorisation order for the Company. Changes to the management of the ACD The following changes have been made to the directors of the ACD: Appointment of Ms. Kath Cates (non-executive director) on 29 March 2016; Resignation of Mr. Campbell Fleming on 29 April 2016; Appointment of Ms. Laura Weatherup on 11 July 2016; Appointment of Mr. Dominik Kremer on 22 July Changes to the Prospectus There were no changes to the Prospectus of the Company during the period from 1 January 2016 to 30 June Changes to the Instrument of Incorporation There were no changes to the instrument of the Company during the period from 1 January 2016 to 30 June Change to the depositary of the Company Citibank International Limited was merged into Citibank Europe plc on 1 January With effect from the merger date: any references to Citibank International Limited in fund documentation should be read as Citibank Europe plc, UK branch. all functions of Citibank International Limited have been automatically transferred to Citibank Europe plc, UK Branch. Funds Investing in Non-Reporting Offshore Funds The Multi Asset Bond and Alternatives Fund and the Multi Asset Equity and Alternatives Fund are approved as elective Funds Investing in Non-Reporting Offshore Funds (FINROFs) with effect from 1 January Under FINROFs, the tax point is shifted from Authorised Investment Funds 9

11 Directory Registered Office Threadneedle Portfolio Advantage Funds ICVC Cannon Place 78 Cannon Street London EC4N 6AG Authorised Corporate Director (ACD) and Alternative Investment Fund Manager Threadneedle Investment Services Limited Cannon Place 78 Cannon Street London EC4N 6AG Registrar Threadneedle Investment Services Limited Delegated to: International Financial Data Services (UK) Limited Authorised and regulated by the Financial Conduct Authority (FCA) St Nicholas Lane Basildon Essex SS15 5FS Investment Manager Threadneedle Asset Management Limited Cannon Place 78 Cannon Street London EC4N 6AG Depositary Citibank Europe plc, UK branch** (Authorised by the Prudential Regulatory Authority (PRA) and regulated by the FCA and PRA) Citigroup Centre 33 Canada Square Canary Wharf London E14 5LB Legal Advisers Eversheds LLP One Wood Street London EC2V 7WS Independent Auditor PricewaterhouseCoopers LLP LLP Atria One 144 Morrison Street Edinburgh EH3 8EX ACD Client Services Details Address: Threadneedle Investment Services Limited Delegated to: International Financial Data Services PO Box Chelmsford Essex CM99 2AL Telephone UK Residents (dealing & customer enquiries): * Telephone non-uk Residents (dealing & customer enquiries): * Fax UK Residents (dealing): Fax non-uk Residents (dealing): (enquiries): Website: columbiathreadneedle.com *Calls will be recorded. **Citibank Europe plc, UK branch took over the operations of Citibank International Limited on 1 January

12 To find out more visit columbiathreadneedle.com Threadneedle Investment Services Limited, ISA Manager, Authorised Corporate Director and Unit Trust Manager. Registered No Registered in England and Wales. Registered Office: Cannon Place, 78 Cannon Street, London EC4N 6AG. Authorised and regulated by the Financial Conduct Authority. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. columbiathreadneedle.com