Chariguard UK Equity Fund Chariguard Overseas Equity Fund

Transcription

1 Chariguard UK Equity Fund Chariguard Overseas Equity Fund Final Report and Financial Statements 30 June 2015 Understand.Act.

2 Contents 1 General Information 3 Chariguard UK Equity Fund 37 Chariguard Overseas Equity Fund 94 Statement of the Manager s responsibilities in relation to the Report & Financial Statements of the Scheme 95 Statement of the Trustee s responsibilities in respect of the Scheme and Report of the Trustee to the Unitholders of the Chariguard Common Investment Funds 96 Independent Auditor s report 97 Additional Information

3 Chariguard Final Report and Financial Statements General Information This document contains the annual report and financial statements for Chariguard UK Equity Fund and Chariguard Overseas Equity Fund (together the Chariguard Funds ) covering the accounting period from 1 July 2014 to 30 June This document may contain forward looking statements. Where such statements are made these reflect the Manager s views at the date of publication. These views may be subject to change at any time. The Chariguard Funds are regulated as common investment funds by schemes of 15 April 2000 made by the Charity Commissioners for England and Wales pursuant to section 96 of the Charities Act They are unregulated collective investment schemes within the meaning of the Financial Services and s Act Charity registration numbers Chariguard UK Equity Fund Chariguard Overseas Equity Fund The following appointments for each Fund have been made: Trustee, Custodian and Depositary HSBC Bank Plc 8 Canada Square London E14 5HQ From the 21 July 2014 HSBC Bank Plc has been appointed as the Depositary of the Fund within the meaning of the AIFMD rules and is authorised by the FCA to act as a depositary of an AIF. Authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Manager and Alternative Investment Fund Manager Allianz Global Investors GmbH, UK Branch* 199 Bishopsgate, London EC2M 3TY Authorised by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and subject to llimited regulation by the Financial Conduct Authority. A member of the Allianz Group. A member of The Investment Association (previously the Investment Management Association up to 2 January 2015). Remuneration Disclosure of the AIFM Employee remuneration of Allianz Global Investors GmbH for the financial year ending 31 December 2014 (all values in Euro). Number of employees 1,685 Thereof Risktaker Other Managers Employees Fixed Remuneration 161,559,776 8,774,536 - Variable Remuneration 91,586,770 25,673,412 - Total Remuneration 253,146,546 34,447,948 - Remuneration Policy The compensation structure at AllianzGI Europe is set up to avoid any kind of excessive risk-taking. Variable compensation awards are delivered via deferral programs to ensure they are linked to sustainable performance. In addition any compensation decisions have to be reviewed and approved by our Functional, Regional and Global Compensation Committees on both, aggregate and individual basis, to further ensure effective risk mitigation. Registrar International Financial Data Services (UK) Ltd IFDS House, St. Nicholas Lane, Basildon, Essex SS15 5FS Authorised and regulated by the Financial Conduct Authority. Independent Auditor KPMG LLP 15 Canada Square, London E14 5GL * On 28 November 2014 Allianz Global Investors Europe GmbH registered a change of name to Allianz Global Investors GmbH. 1

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5 Chariguard UK Equity Fund Contents 4 Fund Objective and Charges 4 Manager s Statement 4 Trustee s Report 5 Report of the Manager 7 Performance Statistics 9 Distribution Table 10 Portfolio Statement 27 Summary of Material Portfolio Changes 28 Statement of Total Return 28 Statement of Change in Attributable to Unitholders 29 Balance Sheet 30 Notes to the Financial Statements

6 Chariguard UK Equity Fund Fund Information Fund Objective Chariguard UK Equity Fund is a Common Investment Fund that invests in UK equities. As an index tracking fund, its objective is to produce returns in line with the FTSE All- Share Index. Charges There is no preliminary charge payable on the purchase of units. The annual investment management charge is 0.20% plus VAT of the net asset value of the Fund, calculated at each month end. There are additional charges and expenses that include fees payable to the Trustee and Depositary and Auditors. Manager s Statement This report covers the annual period from 1 July 2014 to 30 June 2015 for the Chariguard UK Equity Fund, which provides participating charities with investment exposure to the UK equity market. On 30 June 2015 the quoted offer price of the income units and the accumulation units was and respectively. On a mid-price basis, the total return on the Fund over the period, before management charges and other expenses, was 2.57% compared with 2.52% for the FTSE All-Share Index. This is consistent with the Fund s indextracking objectives. These financial statements have been prepared in accordance with the requirements of the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the Scheme Particulars establishing the Fund. Allianz Global Investors GmbH, UK Branch 17 August 2015 Accounting policies The Financial Statements have been prepared in accordance with the requirements of the Statement of Recommended Practice ( SORP ) for Authorised Funds issued by The Investment Association in October 2010 and the Scheme Particulars establishing the Fund. 4

7 Chariguard UK Equity Fund Report of the Manager Through close replication of the Fund s benchmark index, the FTSE All-Share Index, the assets of the Chariguard UK Equity Fund continue to be invested in accordance with its index-tracking objectives. As of the 30 June 2015, the size of the Fund was 96.5million, whilst the principal transactions during the period took place only as a result of the purchase and sale of units and changes to the benchmark index. review and outlook The FTSE All-Share Index produced a total return of 2.5% during the twelve months to 30 June The UK maintained a robust trajectory of real Gross Domestic Product (GDP) growth at 2.9%, whilst Consumer Price Index declined sharply to 0%, due to the sharp fall in global oil prices. UK International Labour Organisation unemployment continued its descent towards 5.6%, as the labour market appeared to absorb joblessness alongside subdued growth in wages. In 2015, macroeconomic consensus anticipates a more subdued 2.4~2.5% GDP growth trajectory sustained over the next 3 years. Weak demand from the Eurozone continues to drag upon the UK as a whole, together with an ongoing need to reduce indebtedness throughout the economy through fiscal austerity. Continued progress has been made in restoring government finances, with the deficit forecast at around 4.3 GDP, though still deviating from the ~2-3% long-term average experienced by the UK in the years preceding the financial crisis in Having feared the consequences of a hung parliament, markets broadly welcomed the surprise Conservative majority election victory in May, though constitutional uncertainty may re-emerge over the coming years given the SNP s landslide victory in Scotland and Prime Minister David Cameron s commitment to hold a referendum on the European Union within two years. There has also been a question of succession and the impact upon the timing of the political cycle on the economy, given that Mr Cameron has indicated he will stand aside as leader before 2020 and not serve a full second term. The Conservative budget has promised to adhere to 30 billion of savings in the next Parliament, with austerity set to end one year earlier than forecast in 2019~2020. Investors have also continued to evaluate the policy reaction function of the Bank of England (BoE) in response to the record low rate of inflation at 0%. The assessment of Governor Mark Carney is that this is a temporary phenomenon, with around three-quarters of the decline attributable to a combination of the collapse in oil prices, food prices and also the appreciation of sterling reducing the price of imports. The expectation of the BoE is that labour supply growth within the economy, driven primarily by expansion and re-entry into labour participation amongst older workers, is containing wage growth and has consequently contributed to moderating inflation. The outlook is for inflation pressure to return as the labour market normalises. Risk review Chariguard UK Equity Fund is managed in accordance with the objective set out on page 4. In achieving this objective, the Manager accepts certain risks inherent in investing in financial markets, principally market price risk. These risks are discussed in more detail below. Subject to the constraints set out in the Scheme Particulars, the Manager may use stock index futures. price risk: price risk arises mainly from the uncertainty about future prices of financial instruments held. It represents the potential loss the Fund might suffer through holding market positions in the face of price movements. A dedicated fund manager has the responsibility for monitoring the existing portfolio selection in accordance with the Fund s investment objectives and seeks to ensure that individual stocks meet an acceptable risk reward profile. Interest rate risk: Interest rate risk is the risk of movements in the value of financial instruments as a result of fluctuations in interest rates. The Fund invests predominantly in equities, the values of which are not directly affected by changes in prevailing market interest rates. The Fund therefore has minimal exposure to interest rate risk. Liquidity risk: Liquidity risk relates to the capacity to meet liabilities. The principal liquidity risk is the ability to repay funds to unitholders following redemption of units, and is dependent on the liquidity of the underlying assets. Redemptions are notified to the Manager in advance, and appropriate cash management procedures are in place to ensure prompt settlement of these liabilities. As the Fund s assets mainly comprise of realisable securities, liquidity risk is not considered to be significant. Foreign currency risk: Foreign currency risk is the risk of movements in the values of overseas financial instruments as a result of fluctuations in exchange rates. It 5

8 Chariguard UK Equity Fund Report to the Manager continued is not the Manager s policy to hedge such foreign exposure. The Fund predominantly holds Sterling investments and therefore the value of the investments and the revenue from them have minimal exposure to foreign currency risk. Credit risk: Credit risk is the risk of default by a counterparty in discharging its obligations under transactions that could result in the Fund suffering a loss. Outstanding settlements are subject to credit risk. Credit risk is mitigated by the Fund through its decision to transact with counterparties of high credit quality. The Fund only buys and sells investments through brokers which are approved counterparties, thus minimising the risk of default during settlement. The Fund holds mainly equities and so has minimal exposure to credit risk. Risk associated with the use of leverage: Leverage may be created either through the use of derivatives or through the purchase of assets acquired on the basis of borrowing. As the Fund uses neither of these there is no leverage risk. Risk Management Monitoring The Independent Enterprise Risk Management function is responsible for portfolio risk oversight. The function defines which risk models and analytics are used to ensure Allianz Global Investors complies with all regulatory requirements and ensures that further independent risk analysis and supervision beyond regulation is conducted where appropriate. To ensure full oversight, the Independent Enterprise Risk Management function prepares a quarterly holistic risk report covering all risk types across Allianz Global Investors. The report lists all relevant risks that were identified, including an assessment of whether Allianz Global Investors risk appetite has been exceeded, together with an assessment whether sufficient mitigation actions have been taken. The risk report is discussed and reviewed in the quarterly global and regional Risk Committee meetings before being presented to the Global Executive Committee. Based on the risk report, the Risk Committee, as mandated by the Global Executive Committee, fulfils its oversight and escalation responsibilities which encompass all risks including business, portfolio, operational and reputational risks. Allianz Global Investors GmbH, UK Branch 23 July

9 Chariguard UK Equity Fund Performance Statistics Net Asset Unit Class Year Ended Net Asset () Number of Units in Issue Net Asset per Unit (p) Income 30 June ,836 4,349, June ,827 2,705, June ,502 1,908, Accumulation 30 June , , June ,962 1,192, June ,038 1,168, Highest and Lowest Prices Calendar Year Highest Offer Price Lowest Bid Price Income (p) Accumulation (p) Income (p) Accumulation (p) For the period to 30 June Price History Income Units Accumulation Units Year Ended Bid (p) Offer (p) Bid (p) Offer (p) 30 June June June June June June Since November 1996 no initial charge has been applied to offer prices. 7

10 Chariguard UK Equity Fund Performance Statistics continued Distribution History Calendar Year Income Units per Unit (p) Accumulation Units per Unit (p) For the period to 30 June Distributions are made two months after the calendar quarter end to which they relate. Further information on distributions is included in the Distribution Table on page 9. Ongoing Charges Figure Year ended OCF (%) 30 June June Ongoing Charges Figure (OCF) represents all operating charges and expenses and is expressed as a percentage of the average net asset value. It includes the annual management charge as well as all the administrative expenses including custodial transaction charges incurred by the Fund. 8

11 Chariguard UK Equity Fund Distribution Table For the year ended 30 June 2015 Group 1: Units purchased prior to (a) 30 June 2014, (b) 30 September 2014, (c) 31 December 2014, (d) 31 March Group 2: Units purchased on or after (a) 30 June 2014, (b) 30 September 2014, (c) 31 December 2014, (d) 31 March Net Revenue per Unit (p) Equalisation per Unit (p) Distribution paid/payable 2014/2015 per Unit (p) Distribution paid 2013/2014 per Unit (p) Income Units a. 1st Interim Group Group b. 2nd Interim Group Group c. 3rd Interim Group Group d. Final Group Group Accumulation Units a. 1st Interim Group Group b. 2nd Interim Group Group c. 3rd Interim Group Group d. Final Group Group Investors are reminded that a distribution is not guaranteed. 9

12 Chariguard UK Equity Fund Portfolio Statement As at 30 June 2015 United Kingdom 99.70% ( %) United Kingdom Equities 99.70% ( %) Aerospace & Defence 2.06% ( %) 150,306 BAE Systems ,238 Chemring ,558 Cobham ,750 Meggitt ,485 QinetiQ ,776 Rolls-Royce ,517,416 Rolls Royce 'C' shares ,057 Senior ,302 Ultra Electronics , Automobiles & Parts 0.27% ( %) 77,502 GKN Banks 11.00% ( %) 1,499 Bank of Georgia ,267 Barclays 2, ,940 HSBC 5, ,564,923 Lloyds Banking 2, ,274 Royal Bank of Scotland ,891 Standard Chartered , Beverages 4.06% ( %) 4,069 Barr (A.G.) ,299 Britvic ,734 Coca-Cola ,522 Diageo 2, ,807 SABMiller 1, , Chemicals 0.72% ( %) 10,646 Alent ,100 Carclo ,411 Croda ,895 Elementis ,843 Johnson Matthey

13 Chariguard UK Equity Fund Chemicals (continued) 12,826 Synthomer ,866 Victrex Construction & Materials 0.97% ( %) 34,355 Balfour Beatty ,800 Costain ,500 CRH ,870 Galliford Try ,540 Keller ,547 Kier ,374 Low & Bonar ,562 Marshalls ,793 Morgan Sindall ,047 Tyman Electricity 0.82% ( %) 20,079 Drax ,684 SSE Electronic & Electrical Equipment 0.48% ( %) 1,400 Dialight ,433 e2v Technologies ,880 Halma ,820 Hellermanntyton ,535 Morgan Advanced Materials ,518 Oxford Instruments ,752 Renishaw ,627 Spectris ,127 TT Electronics ,300 Volex ,000 XP Power Equity Investment Instruments 3.31% ( %) 28,026 3i Infrastructure ,600 Aberdeen Asian Income Fund ,900 Aberdeen Asian Smaller Companies Investment Trust ,500 Aberdeen New Dawn Investment Trust

14 Chariguard UK Equity Fund Equity Investment Instruments (continued) 5,513 Aberdeen UK Tracker Investment Trust ,570 Aberforth Smaller Companies Investment Trust Absolute Return Trust ,359 Advance Developing s Fund ,328 Alliance Trust ,700 Anglo & Overseas Investment Trust (Extinct Line) ,863 Anglo & Overseas Trust ,100 Artemis Alpha Trust ,345 Asian Total Return Investment AXA Framlington Innovative Growth Trust ,805 BACIT ,860 Baillie Gifford Japan Investment Trust ,993 Bankers Investment Trust ,221 Baring Emerging Europe ,200 Beta Global Emerging s Fund ,311 BH Global - GBP BH Macro ,922 BH Macro - GBP shares ,300 Bioscience Investment Trust ,844 BlackRock Smaller Companies Trust ,665 BlackRock Emerging Europe Investment Trust ,173 BlackRock Greater Europe Investment Trust ,512 BlackRock Greater Europe Investment Trust (Subscription Shares) ,471 BlackRock Income Strategies Trust ,314 BlackRock Latin American Investment Trust ,164 BlackRock Throgmorton Trust ,409 BlackRock World Mining Trust ,436 BlueCrest Allblue Fund ,746 British Empire Securities & General Investment Trust ,782 Brunner Investment Trust ,559 Caledonia Investments ,300 Candover Investments ,930 Charter European Trust ,200 City Merchants High Yield Trust ,700 City Natural Resources High Yield Trust ,092 City of London Investment Trust ,440 Dexion Equity Alternative ,710 Diverse Income Trust Dunedin Enterprise Investment Trust

15 Chariguard UK Equity Fund Equity Investment Instruments (continued) 7,255 Dunedin Income Growth Investment Trust ,942 Ecofin Water & Power Opportunities ,320 Edinburgh Dragon Investment Trust ,417 Edinburgh Investment Trust ,898 Edinburgh Worldwide Investment Trust ,698 Electra Investment Trust ,830 Electric & General Investment Trust ,513 Euro Investment Trust ,261 F&C Capital & Income Investment Trust ,694 F&C Global Small Companies ,742 F&C Investment Trust ,021 Fidelity Asian s Investment Trust ,200 Fidelity China Special Situations Investment Trust ,258 Fidelity European s ,100 Finsbury Growth & Income Trust ,402 Genesis Emerging s Fund ,286 Govett Oriental Invest Trust ,367 Govett Strategic Investment Trust ,916 Graphite Enterprise Investment Trust Henderson European Investment Trust ,000 Henderson Eurotrust ,209 Henderson Far East Income Fund ,363 Henderson Global Investment Trust ,900 Henderson High Income Investment Trust ,590 Henderson Smaller Companies Investment Trust ,831 Henderson Trust ,705 Herald Investment Trust ,647 HG Capital Investment Trust ,386 HICL Infrastructure ,528 Impax Environmental s ,136 International Public Partnership ,000 Invesco Asia Investment Trust ,442 Invesco Income & Growth Investment Trust ,169 Invesco Perpetual UK Smaller Companies Investment Trust ,727 John Laing Infastructure Fund ,726 JPMorgan American Investment Trust ,736 JPMorgan Asian Investment Trust ,931 JPMorgan Claverhouse Investment Trust ,145 JPMorgan Emerging s Investment Trust

16 Chariguard UK Equity Fund Equity Investment Instruments (continued) 7,650 JPMorgan Euro Smaller Companies Trust ,961 JPMorgan European Investment Trust ,023 JPMorgan Indian Investment Trust JPMorgan Japan Smaller Companies Trust ,791 JPMorgan Japanese Investment Trust ,210 JPMorgan Japanese Smaller Companies Investment Trust JPMorgan Mid Cap Investment Trust ,404 JPMorgan Overseas Investment Trust JPMorgan Overseas Investment Trust ,122 JPMorgan Russian Securities JPMorgan Smaller Companies Investment Trust JPMorgan Smaller Companies Investment Trust ,590 Jupiter European Opportunities Trust Keystone Investment Trust ,606 Law Debenture ,424 Lowland Investment Company ,200 Majedie Investment Trust ,564 Martin Currie Global Portfolio Investment Trust ,182 Martin Currie Pacific Investment Trust ,755 Mercantile Investment Trust ,094 Merchants Investment Trust ,530 Monks Investment Trust ,199 Murray Income Trust ,241 Murray International Trust ,090 NB Global Floating Rate Income Fund ,700 New India Investment Trust ,558 North American Income Trust North Atlantic Smaller Companies Investment Trust ,670 Pacific Assets Investment Trust ,591 Pantheon International Participations Fund ,606 Perpetual Income & Growth Investment Trust Personal Assets Trust ,736 Polar Capital Technology Trust ,074 RIT Capital Partners ,200 Ruffer ,079 Schroder Asia Pacific Fund ,452 Schroder Income Growth Fund ,973 Schroder Japan Growth Fund ,600 Schroder Oriental Income Fund

17 Chariguard UK Equity Fund Equity Investment Instruments (continued) 7,593 Schroder UK Growth Fund ,105 Scottish American Investment Trust ,130 Scottish Investment Trust ,132 Scottish Mortgage Investment Trust ,000 Scottish Oriental Smaller Companies Trust ,950 Securities Trust of Scotland ,685 Securities Trust of Scotland ,800 Shires Income Trust ,000 Standard Life Equity Income Trust ,828 Standard Life European Private Equity Trust ,318 Temple Bar Investment Trust ,310 Templeton Emerging s Investment Trust Thames River Multi Hedge PCC ,947 TR European Growth Investment Trust ,165 TR Property Investment Trust ,200 Tribune Global Managed Fund ,500 Utilico Emerging s ,000 & Income Investment Trust ,126 Witan Investment Trust ,934 Witan Pacific Investment Trust ,993 Worldwide Healthcare Trust , Financial Services 3.05% ( %) 46,368 3i ,058 Aberdeen Asset Management ,396 Ashmore ,413 Brewin Dolphin Camellia ,100 Charles Taylor Consulting ,109 Close Brothers ,760 Fidelity Special s ,359 Hargreaves Lansdown ,101 Henderson ,450 ICAP ,253 IG ,254 Intermediate Capital ,043 International Personal Finance ,034 Investec

18 Chariguard UK Equity Fund Financial Services (continued) 13,685 IP ,863 Jupiter Fund Management ,984 London Stock Exchange ,523 Man ,517 Paragon ,882 Provident Financial ,465 Rathbone Brothers ,270 Schroders ,086 Standard Life ,459 SVG Capital ,086 Tullett Prebon , Fixed Line Telecommunications 2.05% ( %) 381,871 BT 1, ,073 Cable & Wireless ,246 Colt Telecom ,310 KCOM ,708 Talktalk Telecom ,705 Telecom Plus , Food & Drug Retailers 1.55% ( %) 70,057 Booker ,818 Greggs ,112 J Sainsbury ,166 Ocado ,268 Tesco ,809 UDG Healthcare ,028 Wm Morrison Supermarkets , Food Producers 2.42% ( %) 1,300 Anglo-Eastern Plantations ,587 Associated British Foods ,458 Cranswick ,338 Dairy Crest ,002 Devro ,276 Greencore ,833 Premier Foods

19 Chariguard UK Equity Fund Food Producers (continued) 22,405 Tate & Lyle ,183 Unilever 1, , Forestry & Paper 0.25% ( %) 17,447 Mondi Gas, Water & Multiutilities 2.84% ( %) 236,133 Centrica ,057 National Grid 1, ,266 Pennon ,292 Severn Trent ,233 United Utilities , General Industrials 0.76% ( %) 1,326 British Polythene ,550 DS Smith ,734 Rexam ,738 RPC ,628 Smiths ,892 Vesuvius ,392 Xaar General Retailers 2.47% ( %) 28,238 AA ,407 Carpetright ,631 Darty ,970 Debenhams ,477 Dignity ,770 Dixons Carphone ,316 Dunelm ,353 Findel ,558 Game ,473 Halfords ,959 Home Retail ,766 Inchcape ,404 JD Sports Fashion ,441 Kingfisher

20 Chariguard UK Equity Fund General Retailers (continued) 15,196 Laura Ashley ,833 Lookers ,233 Marks & Spencer ,513 Mothercare ,275 N Brown ,035 Next ,823 Pendragon ,375 Sports Direct International ,804 Topps Tiles ,392 WH Smith , Health Care Equipment & Services 0.54% ( %) 1,410 Consort ,670 Smith & Nephew ,404 Southern Cross Healthcare ,679 Synergy Healthcare Household Goods & Home Construction 3.18% ( %) 4,068 AGA Rangemaster ,762 Barratt Developments ,873 Bellway ,971 Berkeley ,479 Bovis Homes ,715 Crest Nicholson ,421 McBride ,435 Persimmon ,679 Reckitt Benckiser 1, ,356 Redrow ,334 Taylor Wimpey , Industrial Engineering 0.81% ( %) 9,342 Bodycote ,309 Fenner ,695 Hill & Smith ,956 IMI ,600 Melrose Industries

21 Chariguard UK Equity Fund Industrial Engineering (continued) 38,940 Rotork ,009 Severfield-Rowen ,593 Spirax-Sarco Engineering ,831 Vitec ,085 Weir Industrial Metals & Mining 0.12% ( %) 16,161 Evraz ,318 Ferrexpo ,600 International Ferro Metals ,140 South ,000 Talvivaara Mining Industrial Transportation 0.31% ( %) 22,662 BBA Aviation ,100 Braemar Shipping Services Clarkson ,940 James Fisher & Sons ,482 Royal Mail ,605 Stobart UK Mail ,363 Wincanton Leisure Goods 0.01% ( %) 9,768 Photo-Me Life Insurance 4.65% ( %) 188,707 Aviva ,763 Chesnara ,254 Legal & General ,797 Old Mutual ,529 Partnership Assurance ,426 Phoenix ,099 Prudential 1, ,747 RSA Insurance ,412 St. James's Place Capital ,

22 Chariguard UK Equity Fund Media 3.60% ( %) 3,413 Bloomsbury Publishing ,612 British Sky Broadcasting ,513 Centaur Media ,900 Chime Communications ,608 Entertainment One ,752 Euromoney Institutional Investor ,000 Huntsworth ,750 Informa ,500 ITE ,634 ITV ,122 Moneysupermarket.com ,622 Pearson ,596 Reed Elsevier ,427 Rightmove ,755 Trinity Mirror ,871 UBM ,155 UTV Media ,700 Wilmington ,043 WPP , Mining 5.45% ( %) 7,215 Acacia Mining ,165 Anglo American ,530 Anglo Pacific ,872 Antofagasta ,082 Aquarius Platinum ,140 BHP Billiton 1, ,155 Centamin ,715 Fresnillo ,180 Gem Diamonds ,189 Glencore 1, ,470 Hochschild Mining ,465 Kaz Minerals ,650 Kenmare Resources ,934 Lonmin ,000 New World Resources ,889 Petra Diamonds ,453 Petropavlovsk ,377 Polymetal International

23 Chariguard UK Equity Fund Mining (continued) 4,414 Randgold Resources ,175 Rio Tinto 1, ,820 Vedanta Resources , Mobile Telecommunications 3.19% ( %) 20,207 Inmarsat ,259,489 Vodafone 2, , Non-Life Insurance 0.86% ( %) 9,312 Admiral ,839 Amlin ,610 Beazley ,071 Directline Insurance ,482 esure ,778 Hiscox ,877 Jardine Lloyd Thompson ,764 Lancashire ,052 Novae XL Oil & Gas Producers 11.35% ( %) 58,774 Afren ,454 BG 1, ,000 BP 3, ,687 Cairn Energy ,288 Enquest ,400 Exillon Energy ,700 Hardy Oil & Gas ,191 JKX Oil & Gas ,515 Ophir Energy ,109 Premier Oil ,115 Royal Dutch Shell 'A' shares 3, ,500 Royal Dutch Shell 'A' shares (Dutch Listing) ,461 Royal Dutch Shell 'B' shares 2, ,541 SOCO International ,725 Tullow Oil ,

24 Chariguard UK Equity Fund Oil Equipment, Services & Distribution 0.30% ( %) 7,412 Hunting ,758 John Wood ,285 Lamprell ,296 Petrofac Personal Goods 0.46% ( %) 21,032 Burberry ,916 PZ Cussons ,896 Supergroup ,242 Ted Baker Pharmaceuticals & Biotechnology 7.50% ( %) 59,816 AstraZeneca 2, ,165 BTG ,665 Dechra Pharmaceuticals ,875 Genus ,569 GlaxoSmithKline 2, ,413 Hikma Pharmaceuticals ,812 Indivior ,864 Shire 1, ,404 Vectura , Real Estate 2.62% ( %) 6,091 Big Yellow ,674 British Land ,401 Derwent ,588 Great Portland Estates ,073 Hammerson ,795 Capital & Counties Properties ,215 Capital & Regional CLS ,547 Countrywide Daejan ,724 Development Securities ,055 F&C Commercial Property Trust ,000 F&C UK Real Estate Investment Trust ,233 Foxtons

25 Chariguard UK Equity Fund Real Estate (continued) 19,515 Grainger Trust ,318 Helical Bar ,500 LSL Property Services ,500 Mapeley ,800 Picton Property Income Fund ,845 Quintain Estates & Development ,375 Raven Russia ,999 Safestore ,907 Savills ,919 Schroder Real Estate ,498 St. Modwen Properties ,900 Standard Life Investment Property Trust ,180 UK Commercial Property Trust ,086 Unite ,005 Hansteen ,533 Intu Properties ,507 Land Securities ,036 London & Stamford Property ,900 McKay Securities ,700 Mucklow (A&J) ,661 Primary Health Properties ,776 Segro ,513 Shaftesbury ,306 Town Centre Securities ,669 Workspace , Software & Computer Services 0.64% ( %) 16,818 Anite ,162 AVEVA ,807 Fidessa ,315 Innovation ,038 Micro Focus International ,406 NCC ,438 Sage ,890 SDL ,012 Telecity

26 Chariguard UK Equity Fund Support Services 5.25% ( %) 11,381 Aggreko ,831 Amec Foster Wheeler ,916 Ashtead ,026 Atkins (WS) ,213 Babcock International ,164 Berendsen ,010 Brammer ,888 Bunzl ,632 Capita ,694 Carillion ,882 Connect ,400 CPP ,886 DCC ,764 De La Rue ,371 Diploma ,819 Electrocomponents ,969 Essentra ,148 Experian ,668 G4S ,877 Grafton ,748 Hays ,015 HomeServe ,476 Howden Joinery ,268 Interserve ,681 Intertek ,402 Lavendon ,742 Management Consulting ,300 Mears ,989 Menzies (John) ,581 Michael Page International ,464 MITIE ,348 Northgate ,074 PayPoint ,441 Premier Farnell ,023 Regus ,994 Rentokil Initial ,058 Ricardo ,910 Robert Walters ,960 RPS

27 Chariguard UK Equity Fund Support Services (continued) 24,430 Serco ,356 Shanks ,664 SIG ,400 Speedy Hire ,089 St. Ives ,864 SThree ,751 Travis Perkins ,100 Tribal Vp ,545 Wolseley ,470 Xchanging , Technology Hardware & Equipment 0.99% ( %) 66,617 ARM ,800 BATM Advanced Communications ,261 Computacenter ,903 CSR ,765 Imagination Technologies ,666 Laird ,951 Pace ,151 Spirent Communications Tobacco 4.58% ( %) 88,456 British American Tobacco 3, ,593 Imperial Tobacco 1, , Travel & Leisure 4.21% ( %) 5, s ,274 Betfair ,458 Bwin.Party Digital Entertainment ,715 Carnival ,864 Cineworld ,199 Compass ,475 Domino's Pizza ,936 easyjet ,867 Enterprise Inns ,195 FirstGroup

28 Chariguard UK Equity Fund Travel & Leisure (continued) 1,600 Fuller Smith & Turner 'A' shares ,052 Go-Ahead ,148 Greene King ,271 InterContinental Hotels ,465 International Consolidated Airlines ,489 Ladbrokes ,121 Marston's ,077 Merlin Entertainments ,096 Millennium & Copthorne Hotels ,030 Mitchells & Butlers ,371 National Express ,670 Playtech ,478 Punch Taverns ,092 Rank ,476 Restaurant ,264 Stagecoach ,407 Thomas Cook ,067 TUI ,140 Wetherspoon (JD) ,502 Whitbread ,321 William Hill , Investment assets 96, Net other assets Net assets 96, Indicates suspended or delisted securities stated at Manager s valuation. Unless otherwise stated, all investments are approved securities being either officially listed in a member state or traded on or under the rules of an eligible securities market. Note: Comparative figures show percentage for each category at 30 June

29 Chariguard UK Equity Fund Summary of Material Portfolio Changes For the year ended 30 June 2015 The summaries below identify those purchases and sales exceeding 2 the net assets of the Fund at the start of the year, subject to a minimum disclosure of the twenty largest purchases and sales. Purchases 1 Cost Sales Cost Glencore 143 HSBC 1,097 TUI 127 Royal Dutch Shell 'A' shares 874 AA 113 BP 830 Merlin Entertainments 75 GlaxoSmithKline 701 London Stock Exchange 34 British American Tobacco 664 UBM 31 AstraZeneca 491 RPC 9 Diageo 426 Mothercare 5 Lloyds Banking 374 Lamprell 3 Vodafone 366 Connect 3 Rio Tinto 338 Royal Dutch Shell 'B' shares 318 Prudential 314 BHP Billiton 307 Barclays 304 BG 303 Reckitt Benckiser 273 SABMiller 270 Unilever 265 National Grid 263 Imperial Tobacco 248 Other sales 9,238 Total purchases for the year (Note 14) 543 Total sales for the year (Note 14) 18,264 1 There were no other purchases during the year. 27

30 Chariguard UK Equity Fund Statement of Total Return For the year ended 30 June 2015 Income Notes Net capital (losses) gains 2 (1,238) 10,892 Revenue 3 3,772 4,083 Expenses 4 (364) (433) Finance costs: Interest 6 - (1) Net revenue before taxation 3,408 3,649 Taxation 5 (36) (39) Net revenue after taxation 3,372 3,610 Total return for the year 2,134 14,502 Finance costs: Distributions 6 (3,372) (3,609) Change in net assets attributable to unitholders from investment activities (1,238) 10, Statement of Change in Attributable to Unitholders For the year ended 30 June Opening net assets attributable to unitholders 115, ,566 Amounts receivable on issue of units ,176 Less: Amounts payable on cancellation of units (19,900) (65,237) (19,735) (14,061) Change in net assets attributable to unitholders from investment activities (see Statement of Total Return) (1,238) 10,893 Retained distributions on accumulation units 1,724 1,391 Closing net assets attributable to unitholders 96, , Notes to the financial statements are from pages 30 to

31 Chariguard UK Equity Fund Balance Sheet As at 30 June 2015 Notes Assets Investment assets 96, ,182 Debtors Cash and bank balances Total other assets 963 1,378 Total assets 97, ,560 Liabilities Creditors 8 (175) (186) Distribution payable on income units (469) (585) Total other liabilities (644) (771) Total liabilities (644) (771) Net assets attributable to unitholders 96, ,789 Notes to the financial statements are from pages 30 to 35. This report was approved for publication on 17 August Julian Filkins, Authorised Signatory Lynn Clark, Authorised Signatory for and on behalf of Allianz Global Investors GmbH, UK Branch 29

32 Chariguard UK Equity Fund Notes to the Final Financial Statements for the year ended 30 June Accounting policies These financial statements have been prepared under the historical cost convention as modified by the revaluation of investments, and on a going concern basis in accordance with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the Scheme Particulars establishing the Fund. Included within the Regulations is a requirement to prepare financial statements in accordance with the Statement of Recommended Practice (SORP) for Authorised Funds issued by The Investment Association in October These financial statements are prepared in compliance with the SORP. The principal accounting policies are described below: a. Revenue: Dividends are treated as receivable on the date on which the security is quoted ex-dividend where the amounts are reasonably determined. Foreign dividends are grossed up at the appropriate rate of tax. Bank interest is accounted for on an accruals basis. b. Stock dividends: Ordinary stock dividends are recognised wholly as revenue and are based on the market value of the share on the date they are quoted ex-dividend. Where an enhancement is offered, the amount by which the market value of the shares (on the day they are quoted ex-dividend) exceeds the cash dividend is taken to capital. The ordinary element of the stock dividend is treated as revenue and does not form part of the distribution. 2. Net capital (losses) gains c. Special dividends: The underlying circumstances behind special dividends are reviewed in determining whether the receipt is revenue or capital in nature. Special dividends recognised as revenue will form part of the distribution. Any tax treatment will follow the accounting treatment of the principal amount. d. Valuation: The investments of the Fund have been valued as at close of business on 30 June 2015, being the last valuation date of the year, at the bid market price net of any accrued interest. Unlisted, suspended and unapproved investments are valued on the basis of the best information available to the Manager. e. Foreign currencies: Assets and liabilities have been translated into Sterling at the rates of exchange at the balance sheet date. Transactions denominated in foreign currencies are translated into Sterling at the exchange rates ruling at the date of the transactions. The resulting exchange differences are included in the Statement of Total Return. f. Expenses: Expenses are recognised on an accruals basis and charged against revenue, except handling charges which are treated as capital (see Note 2). g. Distribution policy: Net revenue is accumulated in the Fund throughout the year and distributed in full each quarter end (Losses) Gains on non-derivatives 1 (1,203) 10,932 Losses on currencies 1 (5) (12) Handling charges (30) (28) Net capital (losses) gains (1,238) 10,892 1 Net losses listed above of 1,208,000 excluding handling charges, comprise net realised gains of 4,171,000 and net unrealised losses of 5,379,000 ( net gains of 10,920,000 comprising net realised gains of 4,275,000 and net unrealised gains of 6,645,000). 30

33 Chariguard UK Equity Fund Notes to the Final Financial Statements continued 3. Revenue Bank interest 2 1 Overseas dividends Stock dividends 0 1 UK dividends (net) 3,246 3,597 Unfranked UK dividends Total revenue 3,772 4, Expenses Payable to the Manager, associates of the Manager or agents of either of them: Manager s annual charge Payable to the Trustee and Depositary, associates of the Trustee and Depositary or agents of either of them: Trustee and Depositary fees Safe custody fees Other expenses: Audit fee 8 8 Distribution costs FTSE license fee (21) 39 Printing costs 5 6 Registration fees 2 2 Other expenses Total expenses All expenditure stated above is inclusive of irrecoverable VAT where applicable. The Audit fee for the year, excluding VAT, was 6,482 (2014-6,482). 5. Taxation Overseas tax suffered The Fund is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 31

34 Chariguard UK Equity Fund Notes to the Final Financial Statements continued 6. Finance costs Distributions and interest The distributions take account of revenue received on the issue of units and comprise: st Interim: Income Accumulation nd Interim: Income Accumulation rd Interim: Income Accumulation Final (payable 31 August 2015): Income Accumulation ,011 1,057 Less: Revenue received on issue of units 0 (89) Net distributions for the year 3,372 3,609 Finance cost: Interest 0 1 Total finance costs 3,372 3,610 Reconciliation of net revenue after taxation to net distributions for the year: Net revenue after taxation 3,372 3,610 Less: Stock dividend 0 (1) Net distributions for the year 3,372 3,609 Details of the distribution per unit are set out in the Distribution Table on page 9. 32

35 Chariguard UK Equity Fund Notes to the Final Financial Statements continued 7. Debtors Accrued revenue Creditors Manager s annual charge Other accrued expenses¹ ¹ This includes fees payable to the Trustee and Depositary of 14,626 (2014-2,295) and transaction charges payable to the Custodian of 13,387 ( ,563). 9. Equalisation Equalisation applies only to units purchased during the distribution period (Group 2 Units). It is the average amount of net revenue included in the purchase price of all Group 2 Units which, in the case of Income units, is refunded as part of a unitholders first distribution and, in the case of Accumulation units, is automatically reinvested in the Fund at the first distribution payment date after the units were purchased. 10. Related party transactions The Manager and the Trustee together are deemed to be controlling parties under the definition of Financial Reporting Standard 8 (FRS8). Details of any related party transactions occurring during the year and any balances due at the year end are fully disclosed in the Statement of Change in Attributable to Unitholders, the Balance Sheet and Notes 4, 7 and 8 to the financial statements. The aggregate value of commissions paid on the transactions of the Fund s investments with related parties and associates thereof was Nil ( Nil). 11. Units in issue 2015 No No. Income units 1,908, ,705, Accumulation units 1,168, ,192,

36 Chariguard UK Equity Fund Notes to the Final Financial Statements continued 12. Contingent liabilities and commitments As at 30 June 2015 there were no contingent liabilities or commitments ( Nil). 13. Derivatives and other financial instruments Further information on the risk exposure of the Fund is given on page 5 in the financial statements. a. Currency exposure As at 30 June 2015 the Fund had no significant exposure to currencies other than Sterling ( no significant exposure). Accordingly, no further information is given. b. Interest rate risk profile The table below summarises in Sterling terms the financial assets and financial liabilities whose values are affected by changes in interest rates. Currency Floating rate interest 30 June 2015 Nil interest 30 June 2015 Total 30 June 2015 Floating rate interest 30 June 2014 Nil interest 30 June 2014 Total 30 June 2014 Financial assets Sterling ,034 96, , ,696 Euro US Dollar Total financial assets ,221 96, , ,013 Total financial instruments ,221 96, , ,013 Short term debtors and creditors (227) (224) Net assets per the Balance Sheet 96, ,789 The rate for determining interest on bank balances is calculated by HSBC Bank Plc Treasury. As at 30 June 2015 the interest rate was 0.23% ( %). The overdraft interest rate was 1.50% ( %). c. Maturity of financial liabilities All liabilities are due in one year or less or on demand ( same). d. Fair value disclosure There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair value. e. Hedging instruments The Fund did not have any hedging arrangements in place at the balance sheet date ( Nil). 34

37 Chariguard UK Equity Fund Notes to the Final Financial Statements continued 14. Portfolio transaction costs Analysis of total purchase costs Purchases in the year before transaction costs 542 4,962 Commissions on purchases - 1 Other costs 1 5 Total purchase costs 1 6 Gross purchase total 543 4,968 Analysis of total sale costs Gross sales in the year before transaction costs 18,266 19,616 Commissions on sales (2) (5) Total sales costs (2) (5) Total sales net of transaction costs 18,264 19, Material events post balance sheet date There are no material post balance sheet events. 35

38 36

39 Contents 38 Fund Objective and Charges 38 Manager s Statement 38 Trustee s Report 39 Report of the Manager 41 Performance Statistics 43 Distribution Table 44 Portfolio Statement 84 Summary of Material Portfolio Changes 85 Statement of Total Return 85 Statement of Change in Attributable to Unitholders 86 Balance Sheet 87 Notes to the Financial Statements

40 Fund Information Fund Objective Chariguard Overseas Equity Fund is a Common Investment Fund that invests in overseas equities. Its performance objective is to produce returns in line with a benchmark based on the average geographical distribution of the overseas equity investments of charities investing overseas. The Fund s benchmark is constructed by the WM Company, based upon the FTSE World ex UK Index adjusted according to the regional composition of the WM Total Charities Universe. The data is available quarterly two months after each quarter end. Charges There is no preliminary charge payable on the purchase of units. The annual investment management charge is 0.35% plus VAT of the net asset value of the Fund, calculated at each month end. There are additional charges and expenses that include fees payable to the Trustee and Depositary and Auditors. Manager s Statement This report covers the annual period from 1 July 2014 to 30 June 2015 for the Chariguard Overseas Equity Fund, which provides participating charities with investment exposure to the overseas equity market. On 30 June 2015 the quoted offer price of the income units and the accumulation units was and respectively. On a mid-price basis, the total return on the Fund over the period, before management charges and other expenses, was 8.04% compared with 8.83% for the FTSE World Index ex UK for each region as calculated by the WM Company. This is consistent with the Fund s objectives. These financial statements have been prepared in accordance with the requirements of the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the Scheme Particulars establishing the Fund. Allianz Global Investors GmbH, UK Branch 17 August 2015 Accounting Policies The Financial Statements have been prepared in accordance with the requirements of the Statement of Recommended Practice ( SORP ) for Authorised Funds issued by the IMA in October 2010 and the Scheme Particulars establishing the Fund. 38