WAY Global Momentum Fund Short Report for the six months ended 31 August 2014 Investment Objective and Policy The objective of the Fund is to achieve long-term capital growth. The Fund aims to achieve this by primarily investing in a diversified portfolio of globally focussed exchange traded funds, which invest principally in equities. The Fund may also invest in transferable securities, other Collective Investment Schemes (regulated and unregulated), deposits, money market instruments, derivatives and cash or near cash. The Fund is managed using a systematic and low-cost approach to gain exposure to a range of developed global equity markets via investing in and regular rebalancing of exchange traded funds (or similar instruments). The strategy relies on remaining exposed to each market whilst certain trend-following signals are positive (whilst there is positive market momentum) but withdrawing to cash during periods when those signals turn negative. This is intended to reduce volatility within long-only equity investment, thereby securing a much improved risk-return outcome. The asset allocation between markets favours no particular country and does not reflect market capitalisations. The Fund will always be very well diversified across developed global equity markets or in cash where the trend-following signals are negative. The algorithms used within the management approach have been developed and back-tested by academic researchers and the detailed techniques used will continue to be refined as the research evolves. The Fund may invest in derivatives and forward transactions for investment purposes as well as for efficient portfolio management purposes (including hedging). Fund Facts Risk Profile Interim/Annual Accounting End Dates 31 August 28 February Ex-dividend (xd) Dates 01 September 01 March Income Distribution/ Accumulation Dates 31 October 30 April 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 long term. Page 1
Charges Share Class Initial Charge Annual Management Charge Ongoing Charge Figure as at 31/08/14 Ongoing Charge Figure as at 28/02/14 A WAY Retail Net Accumulation 5.25% 1.35% 2.05% 2.01% A WAY Retail Net Income 5.25% 1.35% 2.05% 2.01% B WAY Institutional Net Accumulation 0.00% 0.60% 1.30% 1.26% C Retail Net Accumulation 5.25% 1.35% 2.05% 2.01% C Retail Net Income 5.25% 1.35% 2.05% 2.01% D Institutional Net Accumulation 0.00% 0.60% 1.30% 1.26% D Institutional Net Income 0.00% 0.60% 1.30% n/a E Net Accumulation 2.00% 0.85% 1.55% 1.51% E Net Income 2.00% 0.85% 1.55% 1.51% S Net Income 2.00% 0.85% 1.55% 1.51% T Net Income 2.00% 1.15% 1.85% 1.81% Distributions/Accumulations At the period end, expenses exceeded revenue on all Share Classes, generating shortfall positions. Therefore there will be no distribution on those Classes. Page 2
Comparative Tables Net Asset Value Date Net Asset Value of Share Class ( ) Shares in issue Net Asset Value per Share (p) Share Class A WAY Retail Net Accumulation 29/02/12 6,179,122 6,503,067 95.02 p 28/02/13 4,701,163 4,528,947 103.80 p 28/02/14 2,755,919 2,552,230 107.98 p 31/08/14 1,490,170 1,363,753 109.27 p Share Class A WAY Retail Net Income 29/02/12 797,275 837,717 95.17 p 28/02/13 1,372,488 1,316,169 104.28 p 28/02/14 1,472,307 1,363,552 107.98 p 31/08/14 1,377,738 1,260,925 109.26 p Share Class B WAY Institutional Net Accumulation 29/02/12 69,286 72,468 95.61 p 28/02/13 198,951 187,957 105.85 p 28/02/14 427,557 387,223 110.42 p 31/08/14 3,357,885 2,993,996 112.15 p Share Class C Retail Net Accumulation 29/02/12 1,289,106 1,355,048 95.13 p 28/02/13 1,097,253 1,052,229 104.28 p 28/02/14 711,121 658,551 107.98 p 31/08/14 629,974 576,526 109.27 p Share Class C Retail Net Income 29/02/12 519,156 546,229 95.04 p 28/02/13 413,226 396,272 104.28 p 28/02/14 175,016 162,074 107.99 p 31/08/14 174,438 159,634 109.27 p Share Class D Institutional Net Accumulation 29/02/12 904,619 944,220 95.81 p 28/02/13 994,158 939,233 105.85 p 28/02/14 461,206 416,570 110.72 p 31/08/14 482,225 428,811 112.46 p Share Class D Institutional Net Income 31/08/14 3,109 2,857 108.84 p Share Class E Net Accumulation 28/02/13 112 100 112.00 p 28/02/14 856,368 734,198 116.64 p 31/08/14 4,507,861 3,809,717 118.33 p Share Class E Net Income 28/02/13 112 100 112.00 p 28/02/14 337,754 288,742 116.97 p 31/08/14 1,188,118 1,004,630 118.26 p Share Class S Net Income 28/02/14 102 100 101.55 p 31/08/14 103 100 103.14 p Share Class T Net Income 28/02/13 112 100 112.00 p 28/02/14 365,238 314,993 115.95 p 31/08/14 350,786 298,658 117.45 p Page 3
Comparative Tables (continued) Price and Revenue History Calendar Year Highest Published share price (p) Lowest Published share price (p) Net Revenue per share (p) Share Class A WAY Retail Net Accumulation 2011 1 100.01 93.38 0.0000 2013 112.13 96.05 0.0000 2014 5 110.20 105.29 0.0000 Share Class A WAY Retail Net Income 2011 1 100.01 93.38 0.0000 2013 112.13 96.05 0.0000 2014 5 110.20 105.29 0.0000 Share Class B WAY Institutional Net Accumulation 2011 1 100.26 93.39 0.0000 2012 96.90 90.21 0.0000 2013 114.00 101.68 0.0000 20145 112.92 107.61 0.0000 Share Class C Retail Net Accumulation 2011 1 100.01 93.37 0.0000 2013 112.14 96.05 0.0000 2014 5 110.20 105.29 0.0000 Share Class C Retail Net Income 2011 1 100.01 93.37 0.0000 2013 112.13 96.05 0.0000 2014 5 110.20 105.30 0.0000 Share Class D Institutional Net Accumulation 2011 1 100.26 93.39 0.0000 2012 96.90 90.21 0.0000 2013 114.00 101.67 0.0000 2014 5 113.23 107.90 0.0000 Share Class D Institutional Net Income 2014 4 109.17 105.69 0.0000 Share Class E Net Accumulation 2013 2 120.50 103.97 0.0000 2014 5 119.20 113.71 0.0000 Share Class E Net Income 2013 2 120.50 103.97 0.0000 20145 119.14 114.02 0.0000 Share Class S Net Income 2013 3 102.18 99.31 0.0000 2014 5 103.83 98.96 0.0000 Share Class T Net Income 2013 2 120.22 103.96 0.0000 2014 5 118.40 113.05 0.0000 Page 4
Comparative Tables (Continued) Price and Revenue History (Continued) 1 From 28 February to 31 December 2011 2 From 15 January to 31 December 2013 3 From 5 December to 31 December 2013. 4 From 11 June to 31 August 2014. 5 From 1 January to 31 August 2014. Share Classes A WAY Accumulation & Income, B WAY Accumulation, C Accumulation & Income and D Accumulation were launched on 28 February 2011. This was also the first dealing date Share Classes E Accumulation and Income and T Income were launched on 14 January 2013. However, the first dealings were on 15 January 2013 Share Class S Income was launched on 4 December 2013. However, the first dealing was on 5 December 2013 Share Class D Income was launched on 28 February 2011. However, the first dealing was on 11 June 2014 Major Holdings Top 10 Holdings % of Fund as at 31/08/2014 db x-trackers II Sterling Cash UCITS ETF 26.54 ishares MSCI North America UCITS ETF 6.96 ishares MSCI Australia UCITS ETF 6.92 ishares Core MSCI Pacific ex-japan UCITS ETF 6.84 ishares MSCI Japan Smal31lCap UCITS ETF 6.73 ishares Core MSCI Japan IMI UCITS ETF 6.67 ishares MSCI USA - B UCITS ETF 6.51 ishares MSCI Canada - B UCITS ETF 6.46 ishares MSCI World UCITS ETF 6.39 ishares Core FTSE 100 UCITS ETF 6.31 Top 10 Holdings % of Fund as at 28/02/2014 db x-trackers II Sterling Cash UCITS ETF 32.40 ishares EURO STOXX Small UCITS ETF 7.30 ishares EURO STOXX Mid UCITS ETF 7.08 ishares S&P SmallCap 600 UCITS ETF 7.07 ishares MSCI Europe UCITS ETF 6.87 ishares MSCI USA - B UCITS ETF 6.81 ishares MSCI North America UCITS ETF 6.76 ishares AEX UCITS ETF 6.66 Portfolio Information Breakdown by Geographical Region Net other assets [19.05%] 12.00% United Kingdom [32.40%] 33.56% Overseas [48.55%] 54.44% Comparative figures shown above in square brackets relate to 28 February 2014 Page 5
Investment Manager s Report Investment Review The period under review witnessed serrated markets torn by mixed economic data from the USA, Eurozone, China and UK. There was much debate as to possible termination of quantitative easing in the USA and UK with the possibility that monetary stimulus might need to be applied in the Eurozone. Excessive credit expansion was a particular concern in China. As ever, the Global Momentum Fund looked through these mixed signals and applied its purely formulaic trend following approach. This led to a 1.62% appreciation during the period. Outlook During the review period, the total Net Asset Value grew from 7.5m to 13.5m. The Fund also became more heavily invested (twelve out of fourteen positions invested at the end of the period as compared with seven invested positions the beginning of the period). Significant Information On 14 July 2014 the Depositary and Custodian for the WAY Momentum Portfolio changed; please see the table below for full details. Previous Depositary State Street Trustees Limited Current Depositary Northern Trust Global Services Limited Previous Custodian State Street Bank and Trust Company Current Custodian The Northern Trust Company On the 18 August 2014, WM Capital Management Limited was appointed as the new Investment Adviser to the WAY Global Momentum Fund (the Sub-fund of WAY Momentum Portfolio). 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: 01202 855856 www.fundpartners.co.uk Authorised and regulated by the FCA Depositary State Street Trustees Limited. 20 Churchill Place, London, E14 5HJ From 14 July 2014 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 WM Capital Management Ltd* Fairway, Well Lane Danbury, Chelmsford Essex, CM3 4AB *From 18 August 2014. Prior to this date, the ACD also acted as the Investment Advisor. 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 Page 6