FP Thoroughbred Core Alpha Fund

FP Thoroughbred Core Alpha Fund Short Report for the six months ended 31 January 2016 Investment Objective and Policy The Fund aims to achieve long-term capital growth by the active management of a global multi-asset portfolio. The Fund will aim to achieve its objective by investing mainly in Collective Investment Schemes (both regulated and unregulated) such as unit trusts and OEICs, and exchange traded funds as permitted by the FCA rules. The Fund will not invest more than 25% in any single Collective Investment Scheme. The asset allocation of the Fund will be constructed and managed in such a way as to ensure there is diversity within the Fund and, as a result, at any given time, the portfolio of investments of the Fund will have an overall risk profile that is balanced both by geography and investment sector, but with a UK bias that reflects the likely residency of most of the Fund s investors. Within constraints agreed with the Fund s investment committee, the Fund managers may decide to exclude certain investment sectors at any point in time, with the intention of improving risk adjusted returns. The Fund may also invest in transferable securities, money market instruments, cash and near cash holdings and deposits. The Fund may utilise derivatives for the purposes of efficient portfolio management. Use may also be made of stock lending, borrowing, cash holdings, and other investment techniques of efficient portfolio management. Fund Facts Risk Profile Interim/Annual Accounting End Dates Ex-dividend (xd) Dates Income Distribution/ Accumulation Dates 31 January 31 July 01 August 30 November 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. Charges Share Class Initial Charge Annual Management Charge as at 31/01/16 Total Expense Ratios as at 31/01/16 Total Expense Ratios as at 31/07/15 Share Class B Accumulation 0.00% 0.75% 1.47% 1.53% Share Class C Accumulation 0.00% 0.25% 0.97% 1.03% Page 1

Distributions/Accumulations The Fund distributes annually, following the annual accounting period. Therefore there is no distribution in the current period. Comparative Tables Net Asset Value Date Net Asset Value of Share Class ( ) Shares in issue Net Asset Value pence per Share Share Class B Accumulation 31/07/15 7,649 4,386 174.39 31/01/16 7,387 4,386 168.42 Share Class C Accumulation 31/07/15 56,892,381 30,506,507 186.49 31/01/16 51,937,529 28,766,552 180.55 Major Holdings Top 10 Holdings % of Fund as at 31/01/16 Standard Life Global Absolute Return Strategies 8.58 First State Asia Pacific Sustainability 8.09 Rathbone Ethical Bond 7.20 Henderson UK Property 5.05 PFS Chelverton UK Equity Income 4.64 ETFS GBP Daily Hedged Brent Crude Oil 4.11 Vanguard S&P 500 4.08 Henderson European Selected Opportunities 3.85 Custodian Real Estate Investment Trust 3.84 Artemis UK Growth 3.76 Top 10 Holdings % of Fund as at 31/07/15 Standard Life Global Absolute Return Strategies 9.35 Henderson UK Property 8.74 First State Asia Pacific Sustainability 7.89 Kames High Yield Bond 5.29 Artemis UK Growth 4.89 PFS Chelverton UK Equity Income 4.79 Vanguard S&P 500 4.77 ETFS Physical Gold 4.62 Ignis UK Property 4.41 Invesco Perpetual UK Strategic Income 4.27 Page 2

Portfolio Information Breakdown by Investment type 80 70 66.85% 60 50 40 30 20 17.11% 10 7.54% 6.08% 2.42% 0 Collective Investment Schemes [75.36%] Exchange Traded Funds [17.33%] Net other assets [(1.19%)] Equities [ 6.40%] Offshore Funds [2.10%] Comparative figures shown above in square brackets relate to 31 July 2015. Page 3

Investment Manager s Report Investment Review The Fund has remained cautiously positioned throughout the period, reflecting the challenges facing markets after years of decent gains. We entered the period with reduced exposure to equities and fixed interest, with increased exposure to commercial property and absolute return and this combination has offered some protection over what has been a difficult period. Over the six months, equity markets have remained volatile with abrupt changes in investor sentiment causing two significant pullbacks. The first of these was seen in August when weak Chinese data re-emphasized concerns over global growth and markets pulled back sharply. September was broadly flat, with a rally in risk assets taking place in October and November. We took this opportunity to review our fixed interest exposure and given worries over credit quality in the high yield space, particularly those of energy sector companies, removed all high yield in the Fund. December finally saw the much anticipated increase in US rates and was a microcosm of the previous four months, with markets trading lower in the run up to the rates meeting, then rallying afterwards. The increase was widely expected and priced in to most expectations so we took no specific action within the Fund. The start of 2016 has seen a further sell off for markets as investors doubt the ability of central banks to impact the real economy, growth concerns linger and the oil price continues to place equity markets under pressure. Against the backdrop of falling markets, the higher cash position and the gold exposure in the Fund have offered some protection, with the latter acting as insurance. Gilts have rallied strongly since the start of the year which has impacted relative performance against the benchmark. I continue to have no exposure to this asset class with the downside potential when yields rise outweighing the potential safe haven characteristics. Performance, whilst negative in absolute terms, has beaten the sector average, with the cautious approach offering better protection in negative months. Significant trades for the period under review include: Selling out of high yield and convertible bonds and relying solely on investment grade given credit quality concerns through sales of M&G Global Convertibles, Kames High Yield Bond and a purchase of more of the Rathbone Ethical Bond (all November). This also increased the cash level. Taking part in two placings for closed ended property investment trusts, which I believe can deliver superior longer term performance to open ended vehicles, namely Custodian Real Estate Investment Trust (November) and Standard Life Property Income Trust (December). Adding a position in Invesco Perpetual Global Targeted Returns (November) to diversify my absolute return allocation, as well as investing the proceeds from the maturity of the JPMorgan Private Equity ZDP 2015. Performance of the Fund FP Thoroughbred Core Alpha Fund Date Price % Movement B Share Class 31-Jul-15 173.76 29-Jan-16 167.17 C Share Class 31-Jul-15 185.81 29-Jan-16 179.21-3.79% -3.55% Source: Apex Fund Services (UK) Limited Page 4

Investment Manager s Report (continued) Outlook An investment world has been created in which assets are valued against a backdrop of zero interest rates, and we have to contend with stretched valuations across all major asset classes and high correlations between many. Markets have become dependent on central banks and will need further support to justify valuations here. Strategically I continue to have lower exposure to both traditional asset classes of equities and bonds. Though gilts form part of the benchmark index they still look vulnerable to a shift in sentiment given where they are trading and I prefer investment grade credit. Within equities, uncertainty over monetary policy and the effects of central bank intervention mean that continued periods of high volatility seems inevitable. This is compounded by the upcoming EU referendum (probably in June at time of writing), US elections later in the year and a fraught geopolitical landscape. I continue to prefer Japanese equities on the structural reforms being undertaken there and am accordingly overweight to this region. The US, whilst economically looking relatively attractive, remains relatively expensive and I remain underweight. Within UK equities, I continue to prefer mid and small cap companies over mega and large cap. The latter are more sensitive to global concerns and the natural resources, energy and bank sectors are more heavily represented here. Smaller sized companies are less exposed to these factors and continue to offer earnings growth potential as the companies expand, which is less readily available for larger companies. I continue to have higher weightings to alternative asset classes, most notably UK commercial property. Whilst recognising capital value growth is unlikely to be witnessed to the same degree as the last few years, the limited supply and strong income component continues to be attractive. Infrastructure is also held for similar reasons, currently being played through the Pictet Water fund. I continue to hold oil price exposure and recognising this has not yet worked, over the medium term I believe it will trade higher. It looks as if an outright global recession can be avoided for now but growth will remain sluggish and policy makers are facing a reduced range of options. I believe that a diversified, global-multi asset portfolio approach offers the best opportunities for long term investors, but short term vigilance will be essential. Simon Gibson Director Mattioli Woods Plc 18 February 2016 Page 5

Significant Information Under the Alternative Investment Fund Managers Directive ("AIFMD"), acting as the Alternative Investment Fund Manager ( AIFM ), Fund Partners is required to disclose how those whose actions have a material impact on the Funds are remunerated. The remuneration strategy across Fund Partners is governed by the Remuneration Committee, a committee appointed by the Fund Partners' 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. Fund Partners 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 Fund Partners 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, Fund Partners deems itself as lower risk due to the nature of the activities it conducts. Fund Partners does not pay any form of variable remuneration currently. Therefore Fund Partners has provided a basic overview of how staff whose actions have a material impact on the Fund are remunerated. January 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 47 1,516,466 1,516,466 0 0 Remuneration paid to employees of the AIFM who have a material impact on the risk profile of the AIF 5 376,673 376,673 0 0 Due to the size and structure of Fund Partners, 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 Fund Partners 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. 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 Fund Partners Limited Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset, BH21 7SB Customer Service Centre: 01268 448048 www.fundpartners.co.uk Authorised and regulated by the Financial Conduct Authority (FCA) Depositary Northern Trust Global Services Ltd 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 Mattioli Woods Plc MW House, 1 Penman Way, Grove Park, Enderby, Leicester, Leicestershire, LE19 1SY Authorised and regulated by the FCA Auditor Please note that telephone calls may be recorded for monitoring and training purposes, and to confirm investors' instructions Deloitte LLP Chartered Accountants and Statutory Auditor Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2DB Page 6