MITON GLOBAL EQUITY FUND

Transcription

1 for the period ended 30 September 2015 MITON GLOBAL EQUITY FUND

2 Contents Page Number Investment Objective 2 Manager s Investment Report* 2 Net Asset Value per Unit, Distribution Information and Comparative Tables 4 Fund Facts 6 Authorised Status* 8 Certification of Accounts by Directors of the Manager 9 Portfolio Statement 10 Financial Statements Statement of Total Return 22 Statement of Change in Net Assets attributable to Unitholders 22 Balance Sheet 23 Notes to the Financial Statements 24 General Information* 25 Directors and Advisers 31 * These collectively comprise the Manager s Report. Miton Global Equity Fund 1

3 Investment Objective To achieve long term capital growth by investing primarily in equities in any economic sector and admitted to trading on stock markets anywhere in the world. The fund may also invest in other transferable securities, units in collective investment schemes and other investments to the extent permitted by the fund's investment powers and restrictions and the FCA rules as applicable from time to time and as explained in the Prospectus. Manager s Investment Report for the period ended 30 September 2015 Performance During the six month period to 30 September 2015 the fund returned -14.9%*. This compares with the average fund return in the IA Global Equity sector of -11.7%*. This placed the fund 235th out of 266 in the sector*. * Source for all performance data: FE Analytics. Basis: Mid to mid, net income reinvested and net of fees in UK Sterling terms. The use of past performance is not a reliable indicator of future results. Market Review & Outlook Within the Asia Pacific region, industrial overcapacity and overbuilt infrastructure have led to weak domestic demand in China. To slow stockmarket declines, China's government banned pension funds from selling shares, halted initial public offerings, and limited futures selling by retail investors. While China's economic growth has slowed markedly, Chinese corporate profitability has remained resilient. We believe the best investments going forward in China are secular growth stories uncorrelated with GDP growth, firms with predictable and high amounts of recurring sales, and finally, firms with strong balance sheets showing little net debt. Based on our assessment of the environment and current market conditions, the fund holds Chinese companies such as Tencent, NetEase, and Techtronic Industries. In Japan, industrial production has been negative for most of the year. While Japanese economic growth has been elusive, corporate profitability has improved. The country's new Investor Stewardship Code aims to increase institutional investor involvement in the companies in which they are in invested; this code demands that this involvement extend beyond proxy voting. If institutional investors fail to comply with the new code, they must explain their lack of compliance to the government and cannot participate in managing the country's large pension assets. 2 Miton Global Equity Fund

4 Manager s Investment Report (continued) for the period ended 30 September 2015 Market Review & Outlook (continued) Japan also launched the Corporate Governance Code, a policy which requires corporations to increase their disclosure to shareholders in order to increase corporate transparency. To publicly praise firms in compliance with this code, the government created an index, the Nikkei 400 that lists the companies that are efficiently using capital. Our analysis predicts that improving Japanese profitability will mitigate some of the negative effects of the slowing business cycle. Based on our assessment of the environment and current market conditions, the fund has holdings in Japanese companies such as Japan Airlines, Bridgestone, Nippon Telephone and Telegraph, and Sony. Within Europe, corporate profitability in Western Europe has been with pockets of strength in Germany and Scandinavia, but pockets of weakness in the United Kingdom and France. Germany's relative strength was the result of its exporters benefitting from the cheaper euro. France has not benefited from the weaker euro to the same extent as Germany. On the negative side in the periphery, the European Central Bank (ECB) stopped emergency Greek bank funding after Greece missed an International Monetary Fund payment. Europe's auto producers and aerospace manufacturers receive a substantial amount of sales in US dollars but have material euro cost bases. A weak euro improves the cost competitiveness of such firms. In the late 1990s, the euro experienced a similar decline (parity with the US. dollar) and it aided aerospace manufacturers like Airbus, for example, in growing their civil aerospace market share. In Europe, we believe the best investments going forward are exporters benefiting from the lower euro, companies uncorrelated with GDP growth, firms with predictable and high amounts of recurring sales, and firms with strong balance sheets showing little net debt. Based on our assessment of the environment and current market conditions, the fund holds European stocks such as EasyJet, Cap Gemini, Safran, Roche, and Novo Nordisk. Over the period we reduced our holdings in China Merchants Bank, China Pacific Insurance, Largan Precision Arcelik and Agricultural Bank of China. We increased exposure to Rochsise, Unilever, Nestle Smurfit Kappa and Safran. Xavier Smith Fund Manager Centre Asset Management, LLC 16 November 2015 Miton Global Equity Fund 3

5 Net Asset Value per Unit, Distribution Information and Comparative Tables The fund currently has two unit classes, Retail and Institutional. Both have Accumulation Units. Distribution Information There will be no distribution payable for both Retail and Institutional units at this interim stage. Any remaining revenue will be carried forward to the closure point and will be incorporated into the closing price. 4 Miton Global Equity Fund

6 Net Asset Value per Unit, Distribution Information and Comparative Tables (continued) Net Asset Values Net Asset Units Net Asset Date Value in Issue Value pence per unit Retail Units Accumulation Units 6,581,847 5,994, Institutional Units Accumulation Units 21,111,819 17,997, Retail Units Accumulation Units 423, , Institutional Units Accumulation Units 14,982,298 12,722, Retail Units Accumulation Units 372, , Institutional Units Accumulation Units 17,673,791 13,314, Retail Units Accumulation Units 281, , Institutional Units Accumulation Units 15,278,714 13,410, Risk Warning An investment in a Unit Trust should be regarded as a medium to long-term investment. The Miton Global Equity Fund is considered to offer a higher level of risk as investments held within this fund are stock market based. This can mean that the value of your investment and any revenue received can go up and down and you may get back less than you originally invested. Past performance is not a guide to future performance. Investments denominated in currencies other than the base currency (UK Sterling) are subject to fluctuation in exchange rates, which can be favourable or unfavourable. Miton Global Equity Fund 5

7 Fund Facts Prices per Unit (ex-distribution) Buying* Selling* Operating Price Price Yield** Charge p p % % Retail Units Accumulation Units Institutional Units Accumulation Units Buying* Selling* Operating Price Price Yield*** Charge p p % % Retail Units Accumulation Units Institutional Units Accumulation Units *These are the prices at which the Manager will buy from and sell to a Unitholder. **Calculated using the pence per unit distributed for the twelve month period divided by the mid price (of the cancellation and creation price) on 31 March ***Calculated using the pence per unit distributed for the twelve month period divided by the mid price (of the cancellation and creation price) on 30 September The Operating Charge (OC) represents the annual operating expenses of the fund expressed as a percentage of average net assets for the period - it does not include initial charges or performance fees. The OC includes all fees as prescribed by the ESMA guidelines which are charged to the fund in accordance with the fund s Prospectus. The OC is expressed as an annual percentage rate. 6 Miton Global Equity Fund

8 Fund Facts (continued) Synthetic Risk and Reward Indicator (SRRI) Lower Risk... Higher Risk Typically Lower Rewards Typically Higher Rewards The reward indicator is based on historical information and this may not be a reliable indicator of the future risk profile of this fund. The risk category shown above is not a target or a guarantee of how this fund will perform. The lowest risk category does not mean a risk free investment. Both unit classes are in a risk category of 5 as they have been subject to the fluctuations and instability of the stock markets and foreign exchange rates in the past. This means the extent of how much the fund went up and down and consequently, the value of the units in the fund might be subject to ongoing price fluctuations and market instability in the future. You may not get back your original investment when you sell your units. The fund is valued and units sold in pounds sterling, where the fund manager invests into foreign currencies/markets any fluctuations in exchange rates may impact the overall value of your investment and income payable. Investments in emerging markets may involve a higher element of risk due to political and economic instability and underdeveloped markets and systems. In particular, the Russian government and regulatory framework may expose investors to various political and economic risks. Investment in smaller companies may involve a higher level of risk than larger companies as shares can, from time to time, become illiquid and cannot be easily sold. Miton Global Equity Fund 7

9 Authorised Status Miton Global Equity Fund ( the fund ) is an authorised Unit Trust scheme as defined in section 243 of the Financial Services and Markets Act 2000, established on 20 May 2011 and authorised by the FSA (now FCA) on the 24 May The first pricing date was 17 June The fund is a UCITS retail securities scheme operating under chapter 5 of the FCA Collective Investment Schemes Sourcebook ("COLL") issued by the Financial Conduct Authority. Details are contained in the Prospectus which is available on request free of charge from the Manager. 8 Miton Global Equity Fund

10 Certification of Accounts by Directors of the Manager This report has been prepared in accordance with the requirements of the Financial Conduct Authority s Collective Investment Schemes Sourcebook and the Statement of Recommended Practice issued by The Investment Association (IA), (formerly the Investment Management Association). D Barron I M Chimes I Dighé (Executive Chairman) P Harrison G Williams Miton Trust Managers Limited Manager of Miton Global Equity Fund 16 November 2015 Miton Global Equity Fund 9

11 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % UNITED KINGDOM OIL & GAS Oil & Gas Producers 1.14 Total Oil & Gas 1.14 INDUSTRIALS Aerospace & Defence 0.96 Total Industrials 0.96 CONSUMER GOODS Food Producers 11,730 Unilever 312, Tobacco 7,330 British American Tobacco 265, Total Consumer Goods 578, CONSUMER SERVICES Travel & Leisure 15,790 easyjet 280, Total Consumer Services 280, TELECOMMUNICATIONS Fixed Line Telecommunications 54,430 BT 229, Total Telecommunication 229, UNITED STATES OIL & GAS Oil & Gas Producers 6,700 ConocoPhillips 205, Total Oil & Gas 205, INDUSTRIALS Aerospace & Defense 2,000 Transdigm 278, Industrial Transportation 1.14 Support Services 4,070 Manpower 207, Total Industrials 486, Miton Global Equity Fund

12 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % CONSUMER GOODS Beverages 4,916 PepsiCo 300, Household Goods & Home Construction 3,430 Procter & Gamble 163, Personal Goods 2,310 Kimberly-Clark 163, Tobacco 2.42 Total Consumer Goods 627, HEALTHCARE Health Care Equipment & Services 6,550 Patterson 185, Pharmaceuticals & Biotechnology 2,530 Amgen 222, ,750 Gilead Sciences 236, ,770 Johnson & Johnson 230, ,640 Merck 180, , Total HealthCare 1,056, CONSUMER SERVICES Food & Drug Retailers 4,670 CVS Health 292, General Retailers 2,090 Home Depot 155, Media 2,830 Comcast 'A' 102, ,400 Disney 156, , Travel & Leisure 0.68 Total Consumer Services 707, TELECOMMUNICATIONS Fixed Line Telecommunications 5,760 Verizon Communications 164, Total Telecommunications 164, Miton Global Equity Fund 11

13 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % UTILITIES Electricity 0.46 Total Utilities 0.46 FINANCIALS Banks 11,830 Bank of America 119, Insurance 1,890 Berkshire Hathaway 'B' 160, Real Estate Investment & Services 1,970 Regency Centers 80, ,860 Visa 264, , Total Financials 623, TECHNOLOGY Software & Computer Services 5,950 Cognizant Technology 237, ,420 Facebook 137, ,060 Oracle 118, , Technology Hardware & Equipment 5,280 Apple 378, Total Technology 871, BRAZIL BASIC MATERIALS Forestry & Paper 19,900 Fibria Celulose 175, Mining 0.44 Total Basic Materials 175, FINANCIALS Banks 1.12 Total Financials Miton Global Equity Fund

14 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % CANADA OIL & GAS Oil & Gas Producers 0.65 Total Oil & Gas 0.65 UTILITIES Gas, Water & Multiutilities 0.58 Total Utilities 0.58 CAYMAN ISLANDS TECHNOLOGY Software & Computer Services 3,340 NetEase ADR 260, ,580 Tencent 181, , Total Technology 442, MEXICO INDUSTRIALS Construction & Materials 0.46 Total Industrials 0.46 AUSTRIA INDUSTRIALS Industrial Metals & Mining 5,470 Voestalpine 123, Total Industrials 123, FINANCIALS Financial Services 6,710 Novo Nordisk 'B' 239, Total Financials 239, FINLAND INDUSTRIALS Industrial Engineering 4,786 KONE 'B' 120, Total Industrials 120, Miton Global Equity Fund 13

15 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % FRANCE BASIC MATERIALS Chemicals 1.17 Total Basic Materials 1.17 CONSUMER GOODS Automobiles & Parts 4,105 Michelin 246, Personal Goods 1,850 LVMH Moet Hennessy 206, Total Consumer Goods 453, HEALTHCARE Pharmaceuticals & Biotechnology 4,590 Sanofi 289, Total HealthCare 289, INDUSTRIALS Aerospace & Defence 6,630 Safran 332, Total Industrials 332, UTILITIES Gas, Water & Multiutilities 1,940 Foncière des Régions 110, Total Utilities 110, TECHNOLOGY Software & Computer Services 5,380 Capgemini 315, Total Technology 315, GERMANY CONSUMER GOODS Automobiles & Parts 4,720 Daimler (Regd.) 224, Personal Goods 4,570 Beiersdorf 265, Total Consumer Goods 490, Miton Global Equity Fund

16 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % TELECOMMINICATIONS Mobile Telecommunications 10,190 Deutsche Telekom 119, Total Telecommunications 119, FINANCIALS Nonlife Insurance 2,070 Muenchener Rueckversicherung 255, Total Financials 255, TECHNOLOGY Software & Computer Services 0.52 Total Technology 0.52 IRELAND INDUSTRIALS General Industrials 8,410 Smurfit Kappa 150, Total Industrials 150, ITALY FINANCIALS Banks 135,436 Intesa Sanpaolo 314, Total Financials 314, NETHERLANDS OIL & GAS Oil & Gas Producers 6,080 Royal Dutch Shell 'B' 94, Total Oil & Gas 94, INDUSTRIALS Support Services 3,780 Randstad 147, Total Industrials 147, Miton Global Equity Fund 15

17 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % FINANCIALS Banks 18,380 ING 173, Total Financials 173, RUSSIA TELECOMMUNICATIONS Mobile Telecommunications 0.94 Total Telecommunications 0.94 SPAIN CONSUMER GOODS Personal Goods 12,670 Inditex 278, Total Consumer Goods 278, UTILITIES Electricity 59,105 Iberdrola 260, Total Utilities 260, TELECOMMUNICATIONS Fixed Line Telecommunications 18,942 Telefonica 152, Total Telecommunications 152, FINANCIALS Banks 28,980 BBVA 163, Total Financials 163, SWEDEN INDUSTRIALS Industrial Engineering 6,890 SKF 'B' 83, Total Industrials 83, Miton Global Equity Fund

18 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % TECHNOLOGY Technology Hardware & Equipment 17,790 Ericsson 'B' 114, Total Technology 114, SWITZERLAND CONSUMER GOODS Beverages 5,050 Coca-Cola 131, Food Producers 7,050 Nestlé 347, Total Consumer Goods 479, HEALTHCARE Pharmaceuticals & Biotechnology 1,600 Roche 278, Total HealthCare 278, FINANCIALS Nonlife Insurance 800 Zurich Financial Services 129, Total Financials 129, TURKEY CONSUMER GOODS Household Goods & Home Construction 1.26 Total Consumer Goods 1.26 CHINA INDUSTRIALS Industrial Transportation 253,762 Zhejiang Express 182, Total Industrials 182, FINANCIALS Banks 6.73 Life Insurance 1.99 Total Financials 8.72 Miton Global Equity Fund 17

19 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % HONG KONG CONSUMER GOODS Household Goods & Home Construction 48,420 Techtronic Industries 116, Total Consumer Goods 116, TECHNOLOGY Technology hardware & Equipments 0.64 Total Technology 0.64 INDIA CONSUMER GOODS Automobiles & Parts 0.94 Total Consumer Goods 0.94 HEALTHCARE Pharmaceuticals & Biotechnology 5,920 Dr Reddy's Laboratories ADR 239, Total Healthcare 239, FINANCIALS Banks 0.73 Total Financials 0.73 INDONESIA BASIC MATERIALS Mining 0.70 Total Basic Materials 0.70 JAPAN BASIC MATERIALS Chemicals 8,240 Kaneka 39, ,270 Teijin 219, , Total Basic Materials 259, Miton Global Equity Fund

20 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % INDUSTRIALS Electronic & Electrical Equipment 2,530 Murata Manufacturing 212, Industrial Engineering 2.36 Industrial Transportation 10,000 Yamato 124, Total Industrials 337, CONSUMER GOODS Automobiles & Parts 12,140 Bridgestone 273, Personal & Household Goods 13,070 Sony 206, Total Consumer Goods 480, HEALTHCARE Pharmaceuticals & Biotechnology 25,150 Astellas Pharmaceuticals 212, Total Health Care 212, CONSUMER SERVICES Media 24,210 Nippon Television Network 254, Travel & Leisure 10,196 Japan Airlines 234, Total Consumer Services 489, TELECOMMUNICATIONS Fixed Line Telecommunications 10,120 Nippon Telegraph & Telephone 230, Total Telecommunication 230, FINANCIALS Financial Services 0.01 Total Financials 0.01 Miton Global Equity Fund 19

21 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % TECHNOLOGY Technology hardware & Equipments 1.00 Total Technology 1.00 SOUTH KOREA CONSUMER GOODS Personal & Household Goods 310 Samsung Electronics 194, Total Consumer Goods 194, TAIWAN CONSUMER GOODS Personal & Household Goods 0.96 Total Consumer Goods 0.96 AUSTRALIA BASIC MATERIALS Mining 1.76 Total Basic Materials 1.76 HEALTHCARE Health Care Equipment & Services 1.02 Total Health Care 1.02 FINANCIALS Banks 1.98 Real Estate Investment & Services 20,170 Lend Lease 116, Total Financials 116, SINGAPORE FINANCIALS Real Estate Investment & Services 1.11 Total Financials Miton Global Equity Fund

22 Portfolio Statement as at 30 September 2015 Holding Total Net Assets Portfolio of Value Holding Investments % % THAILAND HEALTHCARE Health Care Equipment & Services 0.77 Total Health Care 0.77 Portfolio of investments 14,980, Net other assets 579, Net assets 15,560, % % All securities are in ordinary shares unless stated otherwise. Total purchases for the period: 10,599,161 Total sales for the period: 10,658,924 Miton Global Equity Fund 21

23 Statement of Total Return for the period ended 30 September Income Net capital (losses)/gains (2,818,039) 5,618 Revenue 365, ,328 Expenses (89,069) (84,271) Interest payable and similar charges (51) (337) Net revenue before taxation 276, ,720 Taxation (29,686) (26,320) Net revenue after taxation 246, ,400 Total return before distributions (2,571,589) 177,018 Distributions Change in net assets attributable to Unitholders from investment activities (2,571,589) 177,018 Statement of Change in Net Assets attributable to Unitholders for the period ended 30 September Opening net assets attributable to Unitholders 18,046,369 15,406,137 Amounts received on issue of units 147, ,827 Amounts paid on cancellation of units (62,021) (37,991) 85, ,836 Change in net assets attributable to Unitholders from investment activities (2,571,589) 177,018 Closing net assets attributable to Unitholders 15,560,240 16,196,991 The difference between the opening net assets and the comparative closing net assets is the movement in the second half of the year. 22 Miton Global Equity Fund

24 Balance Sheet as at 30 September ASSETS Fixed assets Investments 14,980,766 17,831,213 Current assets Debtors 21,431 33,569 Cash and bank balances 580, ,275 Total other assets 602, ,844 Total assets 15,582,778 18,074,057 LIABILITIES Investment liabilities Creditors Other creditors (22,538) (27,688) Total other liabilities (22,538) (27,688) Total liabilities (22,538) (27,688) Net assets attributable to Unitholders 15,560,240 18,046,369 Miton Global Equity Fund 23

25 Notes as at 30 September 2015 Accounting policies Basis of accounting The financial statements have been prepared in accordance with FRS 102 and the Statement of Recommended Practice Financial Statements of UK Authorised Funds issued by the IMA (now known as the Investment Association) in May 2014 (the SORP ). In applying UK GAAP, the financial statements have been prepared in compliance with FRS 102 as adopted for the first time. As a result of the first time adoption of FRS 102, comparative amounts and presentation have been restated. The net total return and the net assets attributable to shareholders remain unchanged. The financial statements have not been prepared on a going concern basis since Miton Trust Managers Ltd chose to close the fund. The Fund closed on 30 October All other accounting policies used to prepare the interim financial statements are as per the audited financial statements for the year ended 31 March Miton Global Equity Fund

26 General Information Manager The Manager is Miton Trust Managers Limited. Accounting Dates The interim accounting date is 30 September and the annual accounting reference date is 31 March. Revenue Distribution Dates Any revenue accumulations will take place on 30 November and on 31 May each year. Minimum Investment The minimum initial investment is 1,000 for Retail units and 500,000 for Institutional units. The minimum subsequent investment is 1,000. There is no minimum amount for redemption of units. Types of Unit in Issue The fund currently has two unit classes, Retail and Institutional. Both have Accumulation Units. Management Charges There is no initial charge applied on Retail or Institutional units. An annual charge of 1.5% is applied to Retail units, and 0.75% applied to Institutional units. Unit Pricing The prices at which the Manager sells units the Offer Price and buys units the Bid Price are calculated as at 12 noon on each business day and are available on the Manager s website or by calling our Client Contact Centre on and selecting option 3. With agreement from the Trustee, the Manager may, in the event that stockmarkets are exceptionally volatile, suspend dealings temporarily and/or recalculate prices more frequently than daily. Fair Value Pricing Where Miton Trust Managers Limited, as the Authorised Fund Manager, is of the opinion that there are reasonable grounds that the prices available at the specific valuation points do not reflect the best estimates available, we may, in our absolute discretion, consider invoking the Fair Value Pricing policy for all or any part of the assets within this fund. Further information is available upon request. Miton Global Equity Fund 25

27 General Information (continued) The Key Investor information document ( KIID ) The aim of the KIID is to enable you, as a potential or existing investor, to make clear, fair comparisons between the different funds available to you and to help you make informed investment decisions and identify whether a particular investment fund meets your requirements. The KIID is presented in a standardised format and should be free of any industry type jargon and complex descriptions. The KIID is a pre-contractual requirement and must be provided to you, read and retained prior to making any subscription into our UCITS funds. A copy of the KIIDs can be obtained from our website Alternatively, if you would like us to send you a copy of the relevant KIID, you can call our Client Contact Centre on (selecting option 3) between 8.30am and 5.30pm Monday to Friday to request a copy. Dealing in Units Units can normally be bought and sold between 8:30am and 5:30pm on any business day. All transactions will be carried out at the prices calculated at the valuation point which next follows the receipt of your instructions. To buy units, either telephone our Dealers on and select option 1, or complete and return an application form, copies of which are available from the website or by calling our Client Contact Centre on and selecting option 3. We will send you a Contract Note setting out the amount due from you. Settlement is due within four days of the date the price was applied to your deal. To sell units, either telephone our Dealers or write to the Manager. We will send you a Contract Note setting out the amount payable to you. You must complete a discharge (renunciation form) certifying that you have title to the units sold before the sale proceeds can be remitted to you. Settlement will normally take place within five days after receipt by the Manager of all the fully completed documentation. ISA deals cannot be placed over the telephone. 26 Miton Global Equity Fund

28 General Information (continued) Cancellation Rights Under the regulations made by the Financial Conduct Authority, you have no right to cancel an investment unless you have received investment advice. If you apply directly to us in relation to units, you may not have the right to cancel your investment. However, if you apply via an authorised financial intermediary and have received financial advice, or Miton Trust Managers Limited, you may receive a cancellation notice which gives you fourteen days to change your mind. If the value of your investment has fallen between the time of issuing your units and our receiving your subsequent cancellation notice, we will deduct the amount by which it has fallen from your payment before returning your money to you. Retail Distribution Review (the payment of commission to your Financial Adviser) Launched by the UK Regulator, the Financial Services Authority (now the Financial Conduct Authority) in 2006, the Retail Distribution Review (otherwise referred to as RDR) is an initiative intended to increase the level of confidence and trust in the financial advice provided by improving the professionalism and quality of the financial advice that you pay for and receive from a UK Authorised and Regulated Financial Adviser. As part of this initiative, both your Financial Adviser and Miton Trust Managers Limited as the product manufacturer, are required to make details of any commission payments paid much clearer to you. Miton Global Equity Fund 27

29 General Information (continued) Retail Distribution Review (the payment of commission to your Financial Adviser) (continued) From 31 December 2012, instead of you paying commission on new investments from your subscriptions, your Financial Adviser now has to be clear about the cost of advice given to you and together, you and your Financial Adviser will agree how you will pay for this. This way, you will know exactly what you are paying and that the advice that you have received has not been influenced by how much your Financial Adviser could earn from your investment. Before 31 December 2012, when purchasing units in the Miton Trust Managers Limited product range, your Financial Adviser may have received an initial commission based as a percentage of your total subscription and also, continue to receive an annual management fee from Miton Trust Managers Limited for the duration that your investment is held with us. Your Financial Adviser would have been required to disclose these arrangements to you. If you have not received any financial advice since 31 December 2012, we would recommend that next time you see your Financial Adviser, you should ask how much you have been paying for their financial advice and how much that same advice now costs. Income tax At each distribution date, you will be sent a tax voucher, for the net amount of revenue attributable to your unitholding. If you are liable to income tax on this amount at the basic rate, there will be nothing more to pay. If you are liable to pay income tax at higher rates, the additional tax may be due from you to the HMRC. Capital Gains tax The fund itself is not liable to capital gains tax. Unitholders will be entitled to their annual exemption for capital gains tax purposes, but will normally be liable to tax on chargeable gains which, in total, exceed this amount unless the holding is within a stocks and shares ISA. Borrowing The Trust Deed permits the Manager to exercise borrowing powers and to invest in securities within the limits set out in the Financial Conduct Authority Collective Investment Scheme Sourcebook. Availability of the Prospectus and Trust Deed A copy of the Prospectus and Trust Deed is available for inspection at the Head Office of the Manager during normal business hours. Copies of the Trust Deed can be purchased at a cost of 10 each. 28 Miton Global Equity Fund

30 General Information (continued) Manager s Reports and Prospectus The Manager will automatically send to all Unitholders a copy of the Short Annual and Interim Reports for the fund. Copies of the Full Annual or Interim Reports and the Prospectus are available in English free of charge from the Manager at the Administration address and on our website Alternative formats e.g. large type, Braille and Audio are available upon request and free of charge in English. Commission Sharing Agreements Miton Trust Managers Limited and Centre Asset Management LLC have entered into dealing arrangements with certain brokers under which a percentage of the dealing commission paid to the broker for transactions may be used to pay for execution and/or research services provided to us by the broker or a third party. Our policy for "Commission Sharing Agreements" is available upon request. What to do if you want to Complain If you wish to make a complaint about any aspect of the service you have received, please contact the Manager at BNY Mellon House, Ingrave Road, Brentwood, Essex CM15 8TG. Alternatively you can send your complaint to the Compliance Manager at Miton Group Plc, 6th Floor, Paternoster House, 65 St Paul s Churchyard, London EC4M 8AB who will ensure that your complaint is investigated and a full response is issued to you in a prompt manner. If your complaint has not been dealt with to your satisfaction, you can contact the Financial Ombudsman Service at Exchange Tower, Harbour Exchange Square, London E14 9SR. A copy of our internal complaint handling procedure is available on request or can be found on our website, Significant Changes The Directors of the Manager took a decision to wind-up the Miton Global Equity Fund on 30 October The assets of the Funds were relatively small making them inefficient to manage and resulting in disproportionately high fixed operating costs. In view of this, the Manager has taken the decision that the Funds are not economically viable on an ongoing basis. After seeking agreement from the trustee of the Fund, and approval from FCA (UK Regulator), the Miton Global Equity Fund was closed on 30 October Ahead of the closure, Unit holders were notified in writing of the options available to them. Miton Global Equity Fund 29

31 Directors and Advisers The Manager Miton Trust Managers Limited 6th Floor Paternoster House 65 St Paul s Churchyard London, EC4M 8AB Tel: (Authorised and regulated by the Financial Conduct Authority, (FCA Number ) and a member of the IA) The Directors of the Manager are: D Barron I M Chimes R Clarke (resigned 28 September 2015) I Dighé (Executive Chairman) P Harrison G Williams (Executive Director) Company Secretary R Bennett The Investment Manager Centre Asset Management, LLC 48 Wall Street, Suite 1100 New York, NY10005 United States of America (Registered with the Securities and Exchange Commission) The Trustee HSBC Bank plc Trustee and Depositary Services 8 Canada Square London E14 5HQ (Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, the ultimate holding party is HSBC Holdings plc) The Administrator & Registrar The Bank of New York Mellon (International) Limited The Bank of New York Mellon Financial Centre 160 Queen Victoria Street London EC4V 4LA Tel: (Authorised and regulated by the Financial Conduct Authority) The Auditors BDO LLP 55 Baker Street London W1U 7EU 30 Miton Global Equity Fund

32 Miton Trust Managers Limited is authorised and regulated by the Financial Conduct Authority, and is a member of The Investment Association. FCA Registration Number Miton is a trading name of Miton Trust Managers Limited. Registered office: 6th Floor Paternoster House 65 St Paul s Churchyard London, EC4M 8AB Registered in England and Wales No A Miton Group company