THREADNEEDLE NAVIGATOR TRUSTS

Transcription

1 UNAUDITED INTERIM REPORTS AND FINANCIAL STATEMENTS THREADNEEDLE NAVIGATOR TRUSTS DECEMBER 2015 THREADNEEDLE NAVIGATOR TRUSTS COLUMBIATHREADNEEDLE.COM

2 Contents Introduction 2 Threadneedle Navigator UK Index Tracker Trust 3 10 Threadneedle Navigator Growth Trust Threadneedle Navigator Income Trust Threadneedle Navigator Cautious Managed Trust Threadneedle Navigator Balanced Managed Trust Threadneedle Navigator Growth Managed Trust Threadneedle Navigator Adventurous Managed Trust Comparative Tables* Ongoing Charges Figure Summary* 41 Risk and Reward Profiles* 41 Units Issued and Redeemed Summary* 42 Total Purchases and Sales* 43 Further Information* Directory* 46 Important Information* 47 * These pages, together with the managers reports, directors statements and portfolio statements of the individual trusts comprise the Manager s Report. 1

3 Introduction These Interim Reports cover the 6 month period to 1 December 2015 and review the performance and market background for the Threadneedle Navigator range of seven unit trusts: Threadneedle Navigator UK Index Tracker Trust; Threadneedle Navigator Growth Trust; Threadneedle Navigator Income Trust; Threadneedle Navigator Cautious Managed Trust; Threadneedle Navigator Balanced Managed Trust; Threadneedle Navigator Growth Managed Trust; and Threadneedle Navigator Adventurous Managed Trust. We hope that you find the reports informative. Should you require any further information regarding any aspect of your investment, or about our other products, we would be pleased to help. Alternatively, you may find it helpful to visit columbiathreadneedle.com for further information about Columbia Threadneedle Investments. Thank you for your continued support. Campbell Fleming Director 2

4 Threadneedle Navigator UK Index Tracker Trust Manager s Report Investment Objective and Policy To achieve capital growth. The Manager s investment policy is to mirror as closely as possible the performance of the FTSE All-Share Index (formerly known as the Ft-Se Actuaries All-Share Index) by investing primarily in UK equities. The Manager may utilise stocklending and derivatives in order to facilitate Efficient Portfolio Management. This report covers the period from 2 June 2015 to 1 December Status of the Trust The trust is an authorised Unit Trust Scheme within Section 243 of the Financial Services and Markets Act 2000, and is a UCITS scheme for the purpose of the Financial Conduct Authority s Collective Investment Schemes Sourcebook (COLL) as amended from time to time. Performance Over the six months to 1 December 2015, the UK equity market, as measured by the FTSE All-Share Index fell by 6.42% on a total return basis. The bid price of accumulation units in the trust fell by 6.28% from p to p during the same period. Please note that the FTSE All-Share Index return quoted above is at global close as of 30 November 2015, although the trust is valued at 12 noon on the next working day. The tracking difference between the trust s performance and that of the FTSE All-Share Index for the period ending 30 November 2015 was +0.70%. Accumulation Income units are not available from the Threadneedle Navigator UK Index Tracker Trust. However, in accordance with the Prospectus, the revenue in the trust is accumulated following the last day of the Annual Accounting Period. Market Overview and Portfolio Activity The trust uses a passive management approach that aims to match approximately the performance of the FTSE All-Share index. The approach involves buying all of the largest stocks and some of the smaller stocks in the index, weighting the stocks roughly in line with their weightings in the index. emerging markets, and consumer price inflation close to zero, markets are not expecting a rise in UK interest rates before the end of Overall, the current UK economic backdrop remains benign. However, there are a number of ongoing concerns including the country s substantial current-account deficit. The market may also be unsettled by further economic developments in China, speculation over future interest-rate hikes by the US Federal Reserve, and ongoing geopolitical risks. Nevertheless, we believe that the UK equity market continues to offer a wide range of attractive investment opportunities. Other Information Pages 39 to 47 at the back of these Interim Reports and Financial Statements form part of the Manager s Report. Directors Statement In accordance with the requirements of the Financial Conduct Authority s Collective Investment Schemes (COLL) Sourcebook, we hereby certify the Interim Report and Financial Statements on behalf of the Directors of Threadneedle Investment Services Limited. T N Gillbanks Director 13 January 2016 C D Fleming Director With a view to mirroring as closely as possible the performance of the FTSE All-Share index, the trust s biggest purchases during the period included additions to the existing positions in Lloyds Banking Group and Royal Bank of Scotland. The largest sales included reductions to the holdings in Royal Dutch Shell, Reckitt Benckiser and BP. Further falls in the price of oil and other commodities hurt the performance of index heavyweights such as Royal Dutch Shell and BP, as well as the major mining companies. The period under review proved challenging for the UK equity market, which declined overall. The major factors affecting UK equities, along with other world markets, included the further falls in commodity prices, the Greek debt crisis and the economic slowdown in China. Additionally, UK exporters continued to be hampered by the strong pound and weaker overseas demand for British goods. On the positive side, a boom in merger and acquisition (M&A) activity, powered largely by low interest rates, provided support to equities. Sentiment was also buoyed by the improvement in consumer confidence, as falling unemployment has led to wage growth finally moving ahead of inflation. Despite encouraging signs regarding the broader UK economy, including solid GDP-growth data, the Bank of England maintained interest rates at their record lows throughout the period. With reduced demand from 3

5 Threadneedle Navigator UK Index Tracker Trust STATEMENT OF TOTAL RETURN Income Net capital losses (3,114) (1,229) Revenue Expenses (177) (196) Net revenue before taxation Taxation Net revenue after taxation Total return before distributions (2,596) (694) Distributions (6) (11) Change in unitholders funds from investment activities (2,602) (705) STATEMENT OF CHANGE IN UNITHOLDERS FUNDS Opening net assets 41,717 43,215 Amounts receivable on the issue of units Amounts payable on the cancellation of units (1,078) (1,569) (1,012) (1,521) Change in unitholders funds from investment activities (see statement of total return above) (2,602) (705) Closing net assets 38,103 40,989 The comparatives used within the Statement of Change in Unitholders Funds are for the corresponding period of the previous year. Therefore the opening net assets for the current year are at 1 June 2015 whilst the figure disclosed in the comparatives closing net assets is at 1 December BALANCE SHEET as at 1 December 2015 s: Fixed assets: June Investments 37,932 41,401 Current assets: Debtors Cash and bank balances Total assets 38,142 41,780 Liabilities: Creditors: Other creditors (39) (63) Total liabilities (39) (63) Net assets 38,103 41,717 Unitholders funds 38,103 41,717 Notes to the financial statements 1 ACCOUNTING POLICIES (1) Basis of accounting The interim financial statements have been prepared on the historical cost basis, as modified by the revaluation of investments, in compliance with FRS 102 and in accordance with the Statement of Recommended Practice for authorised Funds (SORP). This is the first set of financial statements to be prepared for the trust under the 2014 SORP; however, the impact is minimal for an interim reporting period and limited to presentational amendments to the Statement of Total Return, Statement of Change in Unitholders Funds and the Balance Sheet. These presentational amendments have no impact on the total return or the unitholders funds in either the current or preceding year. The full disclosures under the new SORP will first be presented for the annual financial statements prepared for the year to 1 June Unless otherwise stated all other accounting policies applied are consistent with those of the annual financial statements for the year ended 1 June 2015 and are described in those financial statements. (2) Basis of valuation of investments The investments of the trust are valued at fair market prices at close of business of the accounting period (UK time). Investments are stated at their fair value which generally is the bid valuation of each security. These bid values are sourced from independent pricing sources; to the extent that an independent pricing source is not available then quotes are obtained from a broker. Where the Manager deems that these valuations are unrepresentative of a fair valuation of the security, a fair valuation adjustment is applied based upon the Manager s opinion of fair value. (3) Exchange rates s and liabilities expressed in foreign currencies at the end of the accounting period are translated into sterling at the exchange rates ruling at close of business (UK time). Transactions denominated in a foreign currency are translated into sterling at the exchange rates ruling at the date of the transaction. (4) Derivatives Any capital gains/losses are included within net capital losses. Revenue on derivatives is included within revenue in the statement of total return. Expense on derivatives is included within interest payable and similar charges in the statement of total return. (5) Notes In accordance with the guidelines of the SORP the trust has taken advantage of the facility not to provide further notes to the financial statements. 4

6 Threadneedle Navigator UK Index Tracker Trust Portfolio Statement as at 1 December 2015 Holding Investment Holding Investment OIL & GAS 10.69% (11.73%) Oil & Gas Producers 10.34% (11.24%) 23,217 **Afren 62,421 BG Group ,009 BP 1, ,380 Cairn Energy ,383 EnQuest ,894 Exillon Energy ,718 Hardy Oil & Gas 3,516 JKX Oil & Gas 1 1,144 Nostrum Oil & Gas ,474 Ophir Energy ,721 Premier Oil ,148 Royal Dutch Shell B Shares 1, ,047 Soco International ,436 Tullow Oil Oil Equipment, Services & Distribution 0.35% (0.49%) 7,431 Amec Foster Wheeler ,781 Cape ,758 Hunting ,753 John Wood Group ,029 Lamprell ,974 Petrofac Total Oil & Gas 4, BASIC MATERIALS 4.49% (6.54%) Chemicals 0.70% (0.75%) 3,882 Alent ,452 Carclo 2 2,575 Croda International ,290 Elementis ,842 Johnson Matthey ,019 Synthomer ,628 Victrex Forestry & Paper 0.28% (0.25%) 6,810 Mondi Industrial Metals & Mining 0.02% (0.04%) 7,005 Evraz ,243 Ferrexpo 1 10,356 **International Ferro Metals 31,646 *Talvivaara Mining Mining 3.49% (5.50%) 3,024 Acacia Mining ,388 Anglo American ,116 Anglo Pacific Group 1 6,789 Antofagasta ,416 Aquarius Platinum ,596 **Avocet Mining 38,739 BHP Billiton ,427 Centamin ,510 Fresnillo ,501 Gem Diamonds ,273 Glencore ,897 Hochschild Mining ,002 KAZ Minerals ,068 Kenmare Resources 11,291 Lonmin 519,386 Lonmin Rights 48,920 **New World Resources 8,483 Petra Diamonds ,616 Petropavlovsk ,119 Polymetal International ,742 Randgold Resources ,541 Rio Tinto ,307 Vedanta Resources Total Basic Materials 1, INDUSTRIALS 10.46% (10.51%) Construction & Materials 1.08% (0.94%) 12,668 Balfour Beatty ,175 Boot Henry ,949 CRH ,497 Keller Group ,566 Kier Group ,857 Low & Bonar ,439 Marshalls Morgan Sindall Group ,888 Polypipe Group ,270 Tyman Aerospace & Defence 1.88% (2.15%) 631 Avon Rubber ,925 BAE Systems ,299 Chemring Group ,879 Cobham ,269 Meggitt ,171 QinetiQ Group ,166,075 **Rolls-Royce Holdings Perference C Shares 34,154 Rolls-Royce Holdings ,904 Senior ,412 Ultra Electronics Holdings General Industrials 0.75% (0.68%) 553 British Polythene Industries ,878 DS Smith ,091 Rexam ,804 RPC Group ,193 Smiths Group ,610 Vesuvius Electronic & Electrical Equipment 0.49% (0.56%) 744 Dialight ,229 E2V Technologies ,037 Halma ,000 HellermannTyton Group ,775 Morgan Advanced Materials ,185 Oxford Instruments Renishaw ,274 Spectris ,833 TT electronics ,753 Volex 1 1,706 Xaar XP Power Industrial Engineering 0.73% (0.86%) 3,883 Bodycote ,373 Fenner ,810 Hill & Smith Holdings

7 Threadneedle Navigator UK Index Tracker Trust Portfolio Statement (continued) Holding Investment Holding Investment INDUSTRIALS 10.46% (10.51%) (continued) 5,040 IMI ,535 Melrose Industries ,490 Rotork ,634 Severfield ,347 Spirax-Sarco Engineering Vitec Group ,083 Weir Group Industrial Transportation 0.39% (0.31%) 19,756 BBA Aviation Clarkson James Fisher & Sons **Minorplanet Systems 16,669 Royal Mail ,959 Stobart Group UK Mail Group 2 3,192 Wincanton Support Services 5.14% (5.01%) 4,481 Aggreko ,438 Ashtead Group ,439 Babcock International Group ,166 Berendsen ,490 Brammer ,157 Bunzl ,280 Capita ,712 Carillion **Communisis 5,546 Connect Group ,964 **CPP Group 1,596 DCC ,298 De La Rue ,445 Diploma ,302 Electrocomponents ,591 Essentra ,853 Experian ,719 G4S ,305 Grafton Group ,227 Hays ,631 Hogg Robinson Group ,737 Homeserve ,602 Howden Joinery Group Impellam Group 1 2,801 Interserve ,949 Intertek Group ,104 John Menzies ,082 Johnson Service Group ,931 Lavendon Group ,631 Management Consulting Group ,082 Mears Group ,854 Michael Page International ,463 Mitie Group ,443 Northgate ,194 PayPoint ,587 Premier Farnell ,464 Regus ,791 Rentokil Initial ,212 Ricardo ,808 Robert Walters ,087 RPS Group ,342 Serco Group ,274 Shanks Group ,457 SIG ,963 Speedy Hire ,748 St Ives ,201 SThree ,623 Travis Perkins ,092 Tribal Group 1 4,835 Wolseley ,039 WS Atkins ,010 Xchanging Total Industrials 3, CONSUMER GOODS 16.34% (14.47%) Automobiles & Parts 0.25% (0.27%) 31,292 GKN ,374 **Torotrak Beverages 4.46% (3.80%) 1,957 A.G.Barr ,778 Britvic ,661 Coca-Cola HBC ,267 Diageo ,339 SABMiller ,819 Stock Spirits Group Food Producers 0.95% (0.79%) 478 Anglo-Eastern Plantations ,482 Associated British Foods Cranswick ,545 Dairy Crest Group ,022 Devro ,914 Greencore Group Hilton Food Group ,271 Premier Foods **REA Holdings 8,919 Tate & Lyle Household Goods & Home Construction 3.46% (3.11%) 18,732 Barratt Developments ,281 Bellway ,350 Berkeley Group Holdings ,726 Bovis Homes Group ,312 Crest Nicholson Holdings ,652 Galliford Try ,432 McBride **MJ Gleeson 5,735 Persimmon ,660 Reckitt Benckiser Group ,076 Redrow ,552 Taylor Wimpey Leisure Goods 0.02% (0.02%) 5,111 Photo-Me International Personal Goods 2.04% (2.01%) 8,306 Burberry Group ,084 PZ Cussons SuperGroup Ted Baker ,128 Unilever

8 Threadneedle Navigator UK Index Tracker Trust Portfolio Statement (continued) Holding Investment Holding Investment CONSUMER GOODS 16.34% (14.47%) (continued) Tobacco 5.16% (4.47%) 34,241 British American Tobacco 1, ,644 Imperial Tobacco Group Total Consumer Goods 6, HEALTH CARE 8.43% (8.29%) Health Care Equipment & Services 0.75% (0.70%) 1,037 Al Noor Hospitals Group ,087 Consort Medical New Steris ,410 NMC Health ,422 Smith & Nephew ,250 Spire Healthcare Group ,114 UDG Healthcare Pharmaceuticals & Biotechnology 7.68% (7.59%) 9,700 *Alizyme 23,181 AstraZeneca 1, ,862 BTG ,838 Dechra Pharmaceuticals ,228 Genus ,307 GlaxoSmithKline 1, ,562 Hikma Pharmaceuticals ,945 Indivior **IXICO 24,927 Oxford Biomedica 2 10,766 Shire Skyepharma 2 7,775 Vectura Group **Vernalis Total Health Care 3, CONSUMER SERVICES 12.49% (11.66%) Food & Drug Retailers 1.29% (1.36%) 29,851 Booker Group ,942 Greggs ,717 Jinsbury ,831 Ocado Group ,621 Tesco ,584 WM Morrison Supermarkets General Retailers 2.79% (2.55%) 11,552 AA ,412 AO World ,455 B&M European Retail ,376 Card Factory ,201 Carpetright ,348 Darty ,556 Debenhams Dignity ,546 Dixons Carphone ,931 Dunelm Group Findel 1 2,713 French Connection Group 1 4,046 Halfords Group ,918 Home Retail Group ,133 Inchcape ,368 JD Sports Fashion ,202 Just Eat ,249 Kingfisher ,071 Lookers ,777 Marks & Spencer Group ,247 Mothercare ,500 N Brown Group ,697 Next ,226 Pendragon ,097 Pets at Home Group ,846 Poundland Group ,293 Saga ,163 Sports Direct International ,931 Topps Tiles ,171 WH Smith Media 3.87% (3.55%) 597 4imprint Group ,255 Autotrader ,775 Bloomsbury Publishing ,531 Centaur Media ,873 Entertainment One Euromoney Institutional Investor ,847 Huntsworth ,202 Informa ,375 ITE Group ,882 ITV **Johnston Press 7 **Liberty Global A Shares 17 **Liberty Global C Shares 6,204 Moneysupermarket.com Group ,078 Pearson ,518 Relx ,691 Rightmove ,231 Sky ,123 Trinity Mirror ,352 UBM ,758 UTV Media ,739 WPP ,496 Zoopla Property Group Travel & Leisure 4.54% (4.20%) 3, Holdings ,533 Betfair Group ,987 Bwin.Party Digital Entertainment ,418 Carnival ,642 Cineworld Group ,179 Compass Group ,694 Domino s Pizza Group ,558 EasyJet ,557 Enterprise Inns ,815 Firstgroup Fuller Smith & Turner Go-Ahead Group ,018 Greene King ,432 InterContinental Hotels Group ,559 International Consolidated Airlines Group ,562 J D Wetherspoon ,485 Ladbrokes ,429 Marston s ,311 Merlin Entertainments ,245 Millennium & Copthorne Hotels ,090 Mitchells & Butlers ,541 National Express Group

9 Threadneedle Navigator UK Index Tracker Trust Portfolio Statement (continued) Holding Investment Holding Investment CONSUMER SERVICES 12.49% (11.66%) (continued) 3,237 Playtech Punch Taverns 1 2,750 Rank Group ,795 Restaurant Group ,347 SSP Group ,654 Stagecoach Group ,935 Thomas Cook Group ,711 TUI ,373 Whitbread ,185 William Hill Wizz Air Holdings Total Consumer Services 4, TELECOMMUNICATIONS 5.30% (5.12%) Fixed Line Telecommunications 2.22% (1.92%) 153,738 BT Group ,346 Cable & Wireless Communications ,845 Kcom Group ,808 TalkTalk Telecom Group ,225 Telecom Plus Mobile Telecommunications 3.08% (3.20%) 8,143 Inmarsat **Monitise 488,008 Vodafone Group 1, Total Telecommunications 2, UTILITIES 3.72% (3.71%) Electricity 0.75% (0.81%) 8,155 Drax Group ,083 SSE Gas, Water & Multiutilities 2.97% (2.90%) 92,327 Centrica ,184 National Grid ,501 Pennon Group ,368 Severn Trent ,643 United Utilities Group Total Utilities 1, FINANCIALS 25.94% (25.52%) Banks 10.24% (10.75%) 457 Bank of Georgia Holdings ,930 Barclays ,513 HSBC Holdings 1, ,122,417 Lloyds Banking Group ,349 Royal Bank of Scotland Group ,934 Standard Chartered ,838 Standard Chartered Rights ,357 Virgin Money Holdings UK Nonlife Insurance 1.26% (1.05%) 3,750 Admiral Group ,339 Amlin ,919 Beazley ,641 Direct Line Insurance Group ,664 Esure Group ,245 Hiscox ,483 Jardine Lloyd Thompson Group ,589 Lancashire Holdings ,390 Novae Group ,227 RSA Insurance Group XL Group Life Insurance 5.01% (4.74%) 74,194 Aviva ,928 Chesnara ,473 Just Retirement Group ,746 Legal & General Group ,851 Old Mutual ,290 Phoenix Group Holdings ,801 Prudential ,781 St James s Place ,355 Standard Life Real Estate Investment & Services 0.68% (0.71%) 13,071 Capital & Counties Properties CLS Holdings ,271 Countrywide Daejan Holdings ,671 Development Securities ,996 F&C Commercial Property Trust ,947 Foxtons Group ,457 Grainger ,748 Harworth Group 1 2,101 Helical Bar ,118 Kennedy Wilson Europe Real Estate ,942 LSL Property Services *Mapeley 5,301 MedicX Fund ,344 Picton Property Income ,720 Raven Russia ,648 Savills ,454 ST Modwen Properties ,850 UK Commercial Property Trust ,935 UNITE Group Real Estate Investment Trusts 2.28% (2.08%) 22,872 Assura ,590 Big Yellow Group ,758 British Land ,006 Capital & Regional ,855 Derwent London ,546 Great Portland Estates ,419 Hammerson ,110 Hansteen Holdings ,754 Intu Properties ,408 Land Securities Group ,337 Londonmetric Property Mucklow A & J Group ,540 Primary Health Properties ,753 Redefine International Isle of Man ,496 Safestore Holdings ,182 Schroder Real Estate Investment Trust ,127 Segro ,963 Shaftesbury Town Centre Securities 2 8,966 Tritax Big Box REIT ,292 Workspace Group Financial Services 2.81% (2.67%) 18,291 3i Group ,201 Aberdeen Management ,148 Allied Minds

10 Threadneedle Navigator UK Index Tracker Trust Portfolio Statement (continued) Holding Investment Holding Investment FINANCIALS 25.94% (25.52%) (continued) 2,751 Arrow Global Group ,873 Ashmore Group ,704 Brewin Dolphin Holdings ,753 Close Brothers Group ,057 Hargreaves Lansdown ,698 Henderson Group ,243 ICAP ,939 IG Group Holdings ,336 Intermediate Capital Group ,920 International Personal Finance ,667 Investec ,847 IP Group ,636 Jupiter Fund Management **Liontrust Management 5,838 London Stock Exchange Group ,108 Man Group *MDY Healthcare 5,816 Paragon Group of Companies ,699 Provident Financial Rathbone Brothers ,287 Redde ,118 Schroders **Schroders Non-voting 3,177 SVG Capital ,755 Tullett Prebon Equity Investment Instruments 3.66% (3.52%) 10,175 3i Infrastructure ,712 Aberdeen Asian Income Fund Aberdeen Asian Smaller Companies Investment Trust ,100 Aberdeen New Dawn Investment Trust ,942 Aberdeen UK Tracker Trust ,826 Aberforth Smaller Companies Trust *Absolute Return Trust 1,627 *Active Capital Trust 1,107 Advance Developing Markets Fund ,360 Alliance Trust Allianz Technology Trust *Alternative Investment Strategies 1,154 Artemis Alpha Trust ,018 Asian Total Return Investment ,292 BACIT ,383 Baillie Gifford Japan Trust ,058 Bankers Investment Trust Baring Emerging Europe ,489 BBGI SICAV BH Global BH Global (USD) **BH Macro 1 70 **BH Macro EUR Shares BH Macro GBP Shares ,800 *Bioscience Investment Trust 1,440 Biotech Growth Trust ,225 Blackrock Emerging Europe **BlackRock Greater Europe Investment Trust 1,956 BlackRock Greater Investment Trust ,399 Blackrock Income Strategies Trust ,037 BlackRock Latin American Investment Trust BlackRock Smaller Cos Trust ,739 Blackrock Throgmorton Trust ,379 BlackRock World Mining Trust ,201 Bluecrest Allblue Fund ,905 British Empire Securities and General Trust Brunner Investment Trust Caledonia Investments Candover Investments 2 1,598 City Natural Resources High Yield Trust 1 5,356 City of London Investment Trust ,161 Dunedin Income Growth Investment Trust ,235 Ecofin Water & Power Opportunities ,268 Edinburgh Dragon Trust ,738 Edinburgh Investment Trust ,172 Edinburgh Worldwide Investment Trust Electra Private Equity ,500 *Electric and General Investment Trust 1,005 European Investment Trust ,044 F&C Capital & Income Investment Trust F&C Global Smaller Companies ,370 Fidelity China Special Situations ,954 Fidelity European s ,427 Fidelity Special s ,263 Finsbury Growth & Income Trust ,435 Foreign & Colonial Investment Trust ,814 GCP Infrastructure Investments ,686 Genesis Emerging Markets Fund ,400 *Govett Strategic Investment Trust 1,719 Graphite Enterprise Trust ,999 Greencoat UK Wind/Fund **Hansa Trust 1,249 Henderson Alternatives Henderson European Focus Trust ,276 Henderson Far East Income ,480 Henderson Global Trust ,173 Henderson High Income Trust **Henderson Opportunities Trust 1,770 Henderson Smaller Companies Investment Trust ,481 Herald Investment Trust HgCapital Trust ,632 HICL Infrastructure ,103 Impax Environmental Markets ,542 International Public Partnerships ,906 INVESCO Asia Trust ,942 Invesco Income Growth Trust ,986 John Laing Infrastructure Fund ,370 JPMorgan American Investment Trust ,355 JPMorgan Asian Investment Trust ,014 JPMorgan Claverhouse Investment Trust ,424 JPMorgan Emerging Markets Investment Trust ,068 JPMorgan Eur Smaller Companies Trust ,417 JPMorgan European Investment Trust ,345 JPMorgan Global Emerging Markets Income Trust ,025 JPMorgan Indian Investment Trust ,111 JPMorgan Japanese Investment Trust JPMorgan Mid Cap Investment Trust JPMorgan Overseas Investment Trust ,378 JPMorgan Russian Securities

11 Threadneedle Navigator UK Index Tracker Trust Portfolio Statement (continued) Holding Investment Holding Investment FINANCIALS 25.94% (25.52%) (continued) 1,906 Jupiter European Opportunities Trust Jupiter US Smaller Companies **JZ Capital Partners 333 Keystone Investment Trust ,767 Law Debenture ,038 LMS Capital Lowland Investment Company ,518 Martin Currie Portfolio Investment Trust ,774 Mercantile Investment Trust ,451 Merchants Trust ,997 Monks Investment Trust ,509 Murray Income Trust ,547 Murray International Trust ,345 NB Global Floating Rate Income Fund North American Income Trust North Atlantic Smaller Cos Investment Trust ,792 Pacific s Trust Pantheon International Participations Pantheon International Participations Red 2 4,559 Perpetual Income and Growth Investment Trust Personal s Trust ,654 Polar Capital Technology Trust ,329 Renewables Infrastructure Group ,456 RIT Capital Partners Riverstone Energy ,979 Ruffer Investment Company ,216 Schroder AsiaPacific Fund ,640 Schroder Income Growth Fund ,704 Schroder Oriental Income Fund ,833 Schroder UK Growth Fund ,132 Scottish American Investment ,175 Scottish Investment Trust ,836 Scottish Mortgage Investment Trust Scottish Oriental Smaller Companies Trust ,442 Securities Trust of Scotland ,300 *Securities Trust of Scotland 1,190 Standard Life Equity Income Trust ,813 Standard Life European Private Equity Trust ,522 Standard Life UK Smaller Co Trust ,101 Starwood European Real Estate Finance ,315 Temple Bar Investment Trust ,433 Templeton Emerging Markets Investment Trust *Thames River Multi Hedge PCC 1,279 TR European Growth Trust ,090 TR Property Investment Trust - Ordinary Shares ,429 TwentyFour Income Fund ,053 Utilico Emerging Markets ,010 **Utilico Emerging Markets Rights 3,629 Witan Investment Trust Witan Pacific Investment Trust ,991 Woodford Patient Capital Trust ,046 Worldwide Healthcare Trust Total Financials 9, ,248 **BSD Crown 1,582 Computacenter Fidessa Group **Gresham Computing 246 **IndigoVision Group 2,749 Micro Focus International ,876 NCC Group **Parity Group 5 **RM 19,527 Sage Group ,942 SDL ,787 Telecity Group Technology Hardware & Equipment 0.95% (0.98%) 25,852 ARM Holdings ,449 BATM Advanced Communications ,542 Imagination Technologies Group ,966 Laird ,657 Pace ,716 Spirent Communications Total Technology DERIVATIVES 0.02% (0.01%) Futures and Options 0.02% (0.01%) GBP 3 UBS FTSE 100 Future Expiring December Total Derivatives Total value of investments 37, Net other assets (0.76%) Net assets 38, ANALYSIS OF UNDERLYING EXPOSURE FUTURES AND OPTIONS UBS FTSE 100 Future Expiring December Total net exposure 192 June 2015 comparatives in brackets. These * are unlisted securities and are valued at the Manager s best estimate which is less than 500. ** less than 500. Alternative Investment Market. TECHNOLOGY 1.67% (1.68%) Software & Computer Services 0.72% (0.70%) 1,328 AVEVA Group **Blinkx 10

12 Threadneedle Navigator Growth Trust Manager s Report Investment Objective and Policy To achieve capital growth. The Manager s investment policy is to invest primarily in UK equities, UK government securities and fixed interest investments and worldwide equities. The Manager does not envisage remaining fully invested at all times and may utilise stocklending, forward transactions and derivatives in order to hedge against price or currency fluctuations and to facilitate Efficient Portfolio Management. This report covers the period from 2 June 2015 to 1 December Status of the Trust The trust is an authorised Unit Trust Scheme within Section 243 of the Financial Services and Markets Act 2000, and is a UCITS scheme for the purpose of the Financial Conduct Authority s Collective Investment Schemes Sourcebook (COLL) as amended from time to time. Performance Over the six months to 1 December 2015, the UK equity market, as measured by the FTSE All-Share Index (Total Return), fell by 6.42%. The offer price of accumulation units in the trust fell by 3.98% from p to p during the same period. Please note that the FTSE All-Share Index (Total Return) return quoted above is at global close as of 30 November 2015, although the trust is valued at 12 noon on the next working day. Accumulation Income units are not available from the Threadneedle Navigator Growth Trust. However, in accordance with the Prospectus, the revenue in the trust is accumulated following the last day of the Annual Accounting Period. Market Overview and Portfolio Activity The six months under review proved a more challenging period for global equity markets, and particularly for emerging markets which retreated in the wake of further falls in commodity prices, the appreciable slowdown in the Chinese economy and continuing uncertainty over the timing of the Federal Reserve s decision to raise US interest rates. Following a strong performance earlier in the year, Chinese equities fell heavily during the summer months amid concerns over stretched valuations, a clampdown on margin trading and the drain on liquidity from the large number of initial public offerings (IPOs). In early August, the People s Bank of China announced a surprise devaluation of the yuan, prompting further volatility in emerging-market currencies, which were already under pressure from lower commodity prices. Supportive measures from the authorities helped to stabilise the Chinese equity market in September. largely by low interest rates, provided support to the market. Sentiment was also buoyed by the improvement in consumer confidence, as falling unemployment has finally led to wage growth moving ahead of inflation. During the reporting period there were no adjustments to the trust s overall investment strategy but its underlying direct investments in individual stocks continued to be actively managed. For example, key purchases within the UK equity portion of the portfolio included insurance group Prudential and semiconductor and software-design company ARM Holdings. Conversely, the trust s positions in enterprise software firm Sage and packaging business DS Smith were sold. Government bond markets produced positive returns over the period, helped by the risk-averse environment that prevailed during the summer. However, US Treasury bonds lagged the returns from other core government markets amid speculation over a possible US interest-rate hike. Investment-grade corporate bonds posted a slight negative return during the period. After their earlier falls, global equities have rallied since October and overall we remain constructive on the outlook for world markets. The fall in energy prices is helping to suppress inflationary pressures and monetary policy from central banks generally remains supportive, with a view to aiding economic activity. However, we remain cognisant of current risks, including prevailing geopolitical tensions. Within government bond markets, sentiment will continue to be dominated by central banks monetary policy. Other Information Pages 39 to 47 at the back of these Interim Reports and Financial Statements form part of the Manager s Report. Directors Statement In accordance with the requirements of the Financial Conduct Authority s Collective Investment Schemes (COLL) Sourcebook, we hereby certify the Interim Report and Financial Statements on behalf of the Directors of Threadneedle Investment Services Limited. T N Gillbanks Director 13 January 2016 C D Fleming Director In contrast to some of the sharp falls in emerging markets, US equities posted a flat return over the period in dollar terms. Sentiment was helped by the relative resilience of the US economy in comparison to slowing economic activity in many parts of the world. The ongoing economic recovery in the US has heightened speculation that the Federal Reserve could begin to raise rates at its December policy meeting. Elsewhere, markets in Europe held up reasonably well over the period, fuelled by hopes of further quantitative easing from the European Central Bank. Conversely, equities in Japan retreated amid the deteriorating economic conditions, with the Japanese economy lapsing back into recession. Within the equity portion of the portfolio, the largest exposure is to the UK market, which also fell back over the period. In addition to the factors affecting markets globally, UK exporters were hampered by the strength of the pound and weaker overseas demand for British goods. On the positive side, a boom in merger and acquisition (M&A) activity, powered 11

13 Threadneedle Navigator Growth Trust STATEMENT OF TOTAL RETURN Income Net capital (losses)/gains (736) 691 Revenue Expenses (159) (164) Net revenue before taxation Taxation (6) (6) Net revenue after taxation Total return (715) 704 Change in unitholders funds from investment activities (715) 704 BALANCE SHEET as at 1 December 2015 s: Fixed assets: June Investments 16,645 17,596 Current assets: Debtors Cash and bank balances 1,763 1,969 Total assets 18,542 19,659 Liabilities: Creditors: Other creditors (58) (50) Total liabilities (58) (50) Net assets 18,484 19,609 Unitholders funds 18,484 19,609 STATEMENT OF CHANGE IN UNITHOLDERS FUNDS Opening net assets 19,609 18,719 Amounts receivable on the issue of units Amounts payable on the cancellation of units (432) (776) (410) (738) Dilution adjustment 1 Change in unitholders funds from investment activities (see statement of total return above) (715) 704 Closing net assets 18,484 18,686 The comparatives used within the Statement of Change in Unitholders Funds are for the corresponding period of the previous year. Therefore the opening net assets for the current year are at 1 June 2015 whilst the figure disclosed in the comparatives closing net assets is at 1 December Notes to the financial statements 1 ACCOUNTING POLICIES (1) Basis of accounting The interim financial statements have been prepared on the historical cost basis, as modified by the revaluation of investments, in compliance with FRS 102 and in accordance with the SORP. This is the first set of financial statements to be prepared for the trust under the 2014 SORP; however, the impact is minimal for an interim reporting period and limited to presentational amendments to the Statement of Total Return, Statement of Change in Unitholders Funds and the Balance Sheet. These presentational amendments have no impact on the total return or the unitholders funds in either the current or preceding year. The full disclosures under the new SORP will first be presented for the annual financial statements prepared for the year to 1 June Unless otherwise stated all other accounting policies applied are consistent with those of the annual financial statements for the year ended 1 June 2015 and are described in those financial statements. (2) Basis of valuation of investments The investments of the trust are valued at fair market prices at close of business of the accounting period (UK time). Investments are stated at their fair value which generally is the bid valuation of each security. These bid values are sourced from independent pricing sources; to the extent that an independent pricing source is not available then quotes are obtained from a broker. Where the Manager deems that these valuations are unrepresentative of a fair valuation of the security, a fair valuation adjustment is applied based upon the Manager s opinion of fair value. (3) Exchange rates s and liabilities expressed in foreign currencies at the end of the accounting period are translated into sterling at the exchange rates ruling at close of business (UK time). Transactions denominated in a foreign currency are translated into sterling at the exchange rates ruling at the date of the transaction. (4) Notes In accordance with the guidelines of the SORP the trust has taken advantage of the facility not to provide further notes to the financial statements. 12

14 Threadneedle Navigator Growth Trust Portfolio Statement as at 1 December 2015 Holding Investment Holding Investment BELGIUM 0.05% (0.05%) Corporate Bonds 0.05% (0.05%) GBP 9,000 Anheuser-Busch InBev 6.5% 23/06/ Total Belgium CANADA 0.22% (0.00%) Automobiles & Parts 0.22% (0.00%) 1,305 Magna International Total Canada CAYMAN ISLANDS 0.32% (0.30%) Corporate Bonds 0.32% (0.30%) GBP 4,000 Dwr Cymru Financing 6.015% 31/03/ GBP 3,000 South East Water Finance % 29/03/ GBP 6,000 Southern Water Services Finance 6.192% 31/03/ GBP 4,000 Southern Water Services Finance 6.64% 31/03/ GBP 27,000 Yorkshire Power Finance Cayman Islands 7.25% 04/08/ Total Cayman Islands DENMARK 1.46% (1.36%) Corporate Bonds 0.04% (0.02%) GBP 7,000 *Danske Bank 5.375% 29/09/ Pharmaceuticals & Biotechnology 1.42% (1.34%) 7,074 Novo Nordisk Total Denmark FINLAND 0.25% (0.02%) Government Bonds 0.02% (0.02%) GBP 4,000 Finland Government International Bond 1.13% 07/12/ Nonlife Insurance 0.23% (0.00%) 1,290 Sampo Total Finland FRANCE 4.46% (4.53%) Corporate Bonds 0.35% (0.33%) GBP 17,000 AXA 7.125% 15/12/ GBP 10,000 BNP Paribas 5.75% 24/01/ GBP 14,000 Electricite de France 5.875% 18/07/ GBP 1,000 Natixis 5.875% 24/02/ GBP 8,000 Orange 5.625% 23/01/ GBP 1,000 Reseau Ferre de France 5.5% 01/12/ GBP 4,000 SNCF Mobilities 5.375% 18/03/ Chemicals 0.00% (0.38%) Electronic & Electrical Equipment 1.10% (1.13%) 2,594 Legrand ,534 Schneider Electric Personal Goods 0.95% (0.97%) 739 Hermes International Media 1.14% (1.72%) 1,719 Publicis Groupe ,812 Vivendi Nonlife Insurance 0.92% (0.00%) 9,443 AXA Total France GERMANY 1.95% (1.69%) Corporate Bonds 0.41% (0.30%) GBP 5,000 KFW 1.625% 05/06/ GBP 4,000 KFW 4.875% 15/03/ GBP 10,000 KFW 5% 09/06/ GBP 3,000 KFW 5.75% 07/06/ GBP 23,000 KFW 6% 07/12/ GBP 5,000 Landwirtschaftliche Rentenbank 1.5% 23/12/ GBP 7,000 *Muenchener Rueckversicherungs- Gesellschaft in Muenchen 7.625% 21/06/ Chemicals 0.33% (0.00%) 695 Bayer Automobiles & Parts 0.26% (0.29%) 302 Continental Health Care Equipment & Services 0.41% (0.00%) 1,389 Fresenius Medical Care Nonlife Insurance 0.54% (0.79%) 837 Allianz Software & Computer Services 0.00% (0.31%) Total Germany ISLE OF MAN 0.02% (0.02%) Government Bonds 0.02% (0.02%) GBP 3,000 Isle of Man Government International Bond 5.375% 14/08/ Total Isle of Man JAPAN 10.85% (10.25%) Chemicals 0.41% (0.23%) 2,100 Nissan Chemical Industries Nitto Denko Industrial Metals & Mining 0.12% (0.00%) 1,600 Nippon Steel & Sumitomo Metal Construction & Materials 0.19% (0.36%) 9,000 Maeda Electronic & Electrical Equipment 1.46% (0.79%) 3,600 Alps Electric ,100 Dexerials ,000 Hitachi ,000 Minebea Murata Manufacturing

15 Threadneedle Navigator Growth Trust Portfolio Statement (continued) Holding Investment Holding Investment JAPAN 10.85% (10.25%) (continued) Industrial Engineering 1.06% (1.55%) 12,000 Ebara ,100 OSG ,000 Tadano ,100 Yaskawa Electric Support Services 0.39% (0.38%) 4,000 Mitsui ,866 Recruit Holdings Automobiles & Parts 0.86% (0.83%) 5,900 Mazda Motor ,800 Toyota Motor Beverages 0.42% (0.42%) 3,000 Suntory Beverage & Food Household Goods & Home Construction 0.22% (0.23%) 5,000 Sekisui Chemical Leisure Goods 0.40% (0.39%) 400 Shimano ,900 Sony Personal Goods 0.28% (0.28%) 1,400 ABC-Mart Pharmaceuticals & Biotechnology 0.64% (0.44%) 4,000 Kyowa Hakko Kirin ,800 Santen Pharmaceutical Shionogi General Retailers 0.44% (0.53%) 5,300 Rakuten ,000 Takashimaya Media 0.23% (0.44%) 1,100 Dentsu Travel & Leisure 1.05% (0.35%) 4,800 Seibu Holdings ,900 Skylark ,000 Tokyu Mobile Telecommunications 0.00% (0.10%) Electricity 0.17% (0.00%) 4,000 Tohoku Electric Power Gas, Water & Multiutilities 0.00% (0.17%) Banks 0.92% (0.90%) 22,000 Aozora Bank ,000 Bank of Yokohama ,200 Mitsubishi UFJ Financial Group Life Insurance 0.20% (0.19%) 3,100 Dai-ichi Life Insurance Real Estate Investment & Services 0.00% (0.39%) Real Estate Investment Trusts 0.23% (0.22%) 14 Industrial & Infrastructure Fund Investment REIT Financial Services 0.53% (0.54%) 7,000 Daiwa Securities Group ,600 Japan Exchange Group Software & Computer Services 0.45% (0.20%) 3,100 Capcom ,400 SCSK Technology Hardware & Equipment 0.18% (0.32%) 1,800 Hitachi High-Technologies Total Japan 2, JERSEY 0.68% (0.94%) Corporate Bonds 0.12% (0.11%) GBP 20,000 *HSBC Bank Capital Funding Sterling % 29/11/ Construction & Materials 0.11% (0.07%) 32,400 Breedon Aggregates Support Services 0.45% (0.50%) 2,155 Wolseley Automobiles & Parts 0.00% (0.26%) Total Jersey MEXICO 0.06% (0.07%) Government Bonds 0.06% (0.07%) GBP 10,000 Mexico Government International Bond 6.75% 06/02/ Total Mexico NETHERLANDS 2.19% (2.40%) Corporate Bonds 0.26% (0.32%) GBP 10,000 Bank Nederlandse Gemeenten 5.375% 07/06/ GBP 5,000 ING Bank 3.875% 23/12/ GBP 10,000 *Linde Finance 8.125% 14/07/ GBP 5,000 Roche Finance Europe 5.375% 29/08/ GBP 12,000 *Siemens Financieringsmaatschappij 6.125% 14/09/ GBP 2,000 Volkswagen Financial Services 1.75% 21/08/ Government Bonds 0.11% (0.00%) GBP 5,000 Deutsche Bahn Finance 1.375% 30/10/ GBP 14,000 Deutsche Bahn Finance 3.125% 24/07/ Chemicals 0.54% (0.13%) 1,561 Akzo Nobel LyondellBasell Industries Industrial Engineering 0.00% (0.29%) Personal Goods 0.71% (0.65%) 4,548 Unilever (EUR) Media 0.57% (0.48%) 9,068 Relx (EUR) Life Insurance 0.00% (0.53%) Total Netherlands

16 Threadneedle Navigator Growth Trust Portfolio Statement (continued) Holding Investment Holding Investment NORWAY 0.04% (0.04%) Corporate Bonds 0.04% (0.04%) GBP 5,000 Statoil 6.125% 27/11/ Total Norway REPUBLIC OF IRELAND 2.39% (3.30%) Corporate Bonds 0.20% (0.18%) GBP 12,000 GE Capital UK Funding 4.125% 28/09/ GBP 11,000 GE Capital UK Funding 5.875% 18/01/ GBP 5,000 GE Capital UK Funding 6.25% 05/05/ GBP 2,000 GE Capital UK Funding 6.75% 06/08/ Construction & Materials 0.46% (0.41%) 4,337 CRH General Industrials 0.00% (0.27%) Industrial Engineering 0.38% (0.40%) 1,752 Ingersoll-Rand Health Care Equipment & Services 0.17% (0.16%) 630 Medtronic Travel & Leisure 1.18% (1.88%) 21,848 Ryanair Holdings Total Republic of Ireland SINGAPORE 0.16% (0.00%) Technology Hardware & Equipment 0.16% (0.00%) 342 Avago Technologies Total Singapore SPAIN 0.84% (0.00%) Support Services 0.44% (0.00%) 3,015 Amadeus IT Group Mobile Telecommunications 0.40% (0.00%) 6,151 Cellnex Telecom Total Spain SUPRANATIONAL 0.49% (0.37%) Corporate Bonds 0.49% (0.37%) GBP 13,000 European Investment Bank 2.25% 07/03/ GBP 5,300 European Investment Bank 2.5% 31/10/ GBP 15,000 European Investment Bank 3.75% 07/12/ GBP 17,000 European Investment Bank 3.875% 08/06/ GBP 3,000 European Investment Bank 4.5% 07/03/ GBP 4,000 European Investment Bank 4.625% 12/10/ GBP 17,000 European Investment Bank 5% 15/04/ GBP 1,000 Nordic Investment Bank 5.25% 26/11/ Total Supranational SWEDEN 2.04% (1.88%) Industrial Engineering 0.26% (0.00%) 2,740 Atlas Copco 'A' Shares Banks 1.78% (1.88%) 15,323 Nordea Bank ,222 Svenska Handelsbanken Total Sweden SWITZERLAND 5.01% (5.81%) Corporate Bonds 0.04% (0.02%) GBP 5,000 UBS Jersey 8.75% 18/12/ Chemicals 0.42% (0.88%) 319 Syngenta Construction & Materials 0.65% (1.60%) 53 Sika Electronic & Electrical Equipment 0.38% (0.37%) 1,584 TE Connectivity Support Services 0.00% (0.42%) Food Producers 1.39% (1.35%) 5,225 Nestle Pharmaceuticals & Biotechnology 1.01% (0.00%) 3,276 Novartis Banks 1.12% (1.17%) 16,159 UBS Group Total Switzerland UNITED KINGDOM 38.07% (39.66%) Corporate Bonds 2.92% (2.52%) GBP 3,000 A2D Funding 4.75% 18/10/ GBP 10,000 *Annington Finance No.4 Variable 10/01/ GBP 10,000 *Aviva 6.125% 14/11/ GBP 13,000 Bank of Scotland 4.875% 20/12/ GBP 10,000 Bank of Scotland 9.375% 15/05/ GBP 8,000 Barclays Bank 5.75% 14/09/ GBP 9,000 *Barclays Bank 6.125% 29/04/ GBP 2,000 Barclays Bank 9.5% 07/08/ GBP 15,000 British Telecommunications 5.75% 07/12/ GBP 15,000 Broadgate Financing 4.821% 05/07/ GBP 5,000 *BUPA Finance 6.125% 29/12/ GBP 15,000 Canary Wharf Finance II 6.455% 22/04/ GBP 1,000 Derby Healthcare 5.564% 30/06/ GBP 5,000 Eastern Power Network 5.75% 08/03/ GBP 14,000 Electricity North West 8.875% 25/03/ GBP 10,000 First Hydro Finance 9% 31/07/ GBP 3,000 GKN Holdings 6.75% 28/10/ GBP 7,000 Hammerson 6.875% 31/03/ GBP 11,000 HSBC Bank 6.25% 30/01/ GBP 17,000 Imperial Tobacco Finance 6.25% 04/12/

17 Threadneedle Navigator Growth Trust Portfolio Statement (continued) Holding Investment Holding Investment UNITED KINGDOM 38.07% (39.66%) (continued) GBP 17,000 Integrated Accommodation Services 6.48% 31/03/ GBP 5,000 *Land Securities Capital Markets 5.425% 31/03/ GBP 7,000 LCR Finance 4.5% 07/12/ GBP 5,000 LCR Finance 4.5% 07/12/ GBP 4,000 LCR Finance 5.1% 07/03/ GBP 14,000 Legal & General Finance 5.875% 05/04/ GBP 16,000 *Legal & General Group 5.875% 29/03/ GBP 2,000 Lloyds Bank 7.625% 22/04/ GBP 5,000 London Stock Exchange Group 4.75% 02/11/ GBP 25,000 Mitchells & Butlers Finance 5.574% 15/12/ GBP 28,000 National Grid Electricity Transmission 6.5% 27/07/ GBP 20,000 National Westminster Bank 6.5% 07/09/ GBP 5,000 Nationwide Building Society 8.625% 29/03/ GBP 5,000 Northern Ireland Electricity 6.875% 18/09/ GBP 1,000 Octagon Healthcare Funding 5.333% 31/12/ GBP 6,100 Places for People Capital Markets 5% 27/12/ GBP 6,000 Places for People Homes 5.09% 31/07/ GBP 12,000 Prudential 5.875% 11/05/ GBP 5,000 Prudential 6.125% 19/12/ GBP 10,000 *Quadrant Housing Finance 7.93% 10/02/ GBP 3,000 RMPA Services 5.337% 30/09/ GBP 1,000 RSL Finance 6.625% 31/03/ GBP 2,000 Sanctuary Housing Association 8.375% 01/09/ GBP 5,000 Scottish Power UK 6.75% 29/05/ GBP 2,000 Segro 5.75% 20/06/ GBP 1,000 Smiths Group 7.25% 30/06/ GBP 5,000 South Eastern Power Networks 5.5% 05/06/ GBP 1,000 Sunderland SHG Finance 6.38% 31/03/ GBP 5,000 Tesco 5.5% 13/12/ GBP 1,000 THFC Funding No % 21/12/ GBP 50,000 Transport for London 5% 31/03/ GBP 2,000 UNITE Group 6.125% 12/06/ GBP 10,000 Western Power Distribution South Wales 9.25% 09/11/ Government Bonds 0.40% (0.84%) GBP 20,000 United Kingdom Gilt 1.75% 22/01/ GBP 1,000 United Kingdom Gilt 1.75% 22/07/ GBP 28,000 United Kingdom Gilt 2% 22/07/ GBP 4,700 United Kingdom Gilt 2.25% 07/09/ GBP 6,000 United Kingdom Gilt 3.25% 22/01/ GBP 6,000 United Kingdom Gilt 3.5% 22/01/ GBP 2,000 United Kingdom Gilt 3.5% 22/07/ Oil & Gas Producers 2.07% (2.17%) 14,199 BG Group ,764 BP Royal Dutch Shell A Shares (UK Listing) ,460 Royal Dutch Shell B Shares Chemicals 0.74% (0.63%) 3,735 Johnson Matthey ,655 Victrex Mining 0.63% (0.96%) 5,224 Rio Tinto Aerospace & Defence 1.43% (1.49%) 20,698 BAE Systems ,398 Cobham ,044,543 Rolls-Royce C Shares (Jan 2016) 11,268 Rolls-Royce Holdings General Industrials 0.31% (0.77%) 5,623 Smiths Group Industrial Engineering 0.56% (0.53%) 4,634 IMI ,270 Melrose Industries Support Services 0.72% (0.63%) 22,036 Hays ,148 Rentokil Initial Automobiles & Parts 0.65% (0.59%) 39,932 GKN Beverages 0.78% (0.70%) 7,569 Diageo Household Goods & Home Construction 0.73% (0.86%) 2,113 Reckitt Benckiser Group Personal Goods 1.23% (1.23%) 4,371 Burberry Group ,128 Unilever Tobacco 2.07% (1.79%) 5,323 British American Tobacco ,882 Imperial Tobacco Group Health Care Equipment & Services 0.52% (0.50%) 8,600 Smith & Nephew Pharmaceuticals & Biotechnology 2.38% (2.19%) 4,669 AstraZeneca ,915 GlaxoSmithKline Food & Drug Retailers 0.59% (0.58%) 27,276 Booker Group ,868 WM Morrison Supermarkets Media 1.78% (1.99%) 34,225 ITV Liberty Lilac Group C 1 7,440 Pearson ,543 Relx

18 Threadneedle Navigator Growth Trust Portfolio Statement (continued) Holding Investment Holding Investment UNITED KINGDOM 38.07% (39.66%) (continued) Travel & Leisure 1.65% (1.73%) 4,124 Compass Group ,484 InterContinental Hotels Group ,760 J D Wetherspoon ,213 Merlin Entertainments ,128 Stagecoach Group Fixed Line Telecommunications 1.29% (1.12%) 48,295 BT Group Gas, Water & Multiutilities 0.88% (0.92%) 31,642 Centrica ,660 Pennon Group Banks 1.50% (1.38%) 35,366 Barclays ,849 HSBC Holdings ,727 Standard Chartered ,636 Standard Chartered Rights Nonlife Insurance 0.32% (0.29%) 13,334 RSA Insurance Group Life Insurance 1.99% (1.44%) 56,230 Legal & General Group ,033 Prudential ,141 St James s Place Real Estate Investment Trusts 0.34% (0.32%) 1,620 Derwent London Financial Services 0.55% (1.19%) 3,863 London Stock Exchange Group Software & Computer Services 0.20% (0.77%) 1,702 AVEVA Group Technology Hardware & Equipment 0.17% (0.00%) 2,800 ARM Holdings Collective Investment Schemes 8.67% (9.53%) 771,139 Threadneedle Asia Fund 1, ,317 Threadneedle Global Emerging Markets Equity Fund Total United Kingdom 7, UNITED STATES OF AMERICA 18.50% (17.04%) Corporate Bonds 0.29% (0.37%) GBP 15,000 Bank of America 5.5% 04/12/ GBP 4,000 BMW US Capital 2% 20/11/ GBP 12,000 Citigroup 5.125% 12/12/ GBP 12,000 Citigroup 6.5% 16/08/ GBP 2,000 Procter & Gamble 6.25% 31/01/ Government Bonds 0.01% (0.01%) GBP 2,000 Tennessee Valley Authority 5.35% 07/06/ Oil & Gas Producers 1.22% (1.05%) 1,613 Anadarko Petroleum Chevron Marathon Petroleum ,504 Occidental Petroleum Oil Equipment, Services & Distribution 0.24% (0.21%) 1,621 Halliburton Chemicals 0.11% (0.00%) 553 Albemarle Industrial Metals & Mining 0.09% (0.00%) 604 Nucor Construction & Materials 0.17% (0.14%) 1,566 Masco Aerospace & Defence 0.36% (0.76%) 324 General Dynamics Northrop Grumman General Industrials 0.47% (0.00%) 4,358 General Electric Electronic & Electrical Equipment 0.44% (0.43%) 2,223 Amphenol Industrial Transportation 0.45% (0.27%) 807 Union Pacific United Parcel Service Beverages 0.46% (0.38%) 570 Constellation Brands PepsiCo Food Producers 0.00% (0.37%) Household Goods & Home Construction 0.57% (0.48%) 1,124 Lennar ,334 Procter & Gamble Leisure Goods 0.19% (0.16%) 755 Electronic Arts Personal Goods 0.64% (0.31%) 429 Estee Lauder Companies Class C ,059 NIKE Tobacco 0.13% (0.33%) 792 Reynolds American Health Care Equipment & Services 1.29% (1.25%) 1,357 Express Scripts HCA Holdings Thermo Fisher Scientific Zimmer Holdings Pharmaceuticals & Biotechnology 1.32% (1.04%) 149 Biogen Idec Celgene Gilead Sciences ,839 Pfizer Food & Drug Retailers 0.38% (0.38%) 1,117 CVS Health General Retailers 0.78% (1.10%) 980 Home Depot L Brands

19 Threadneedle Navigator Growth Trust Portfolio Statement (continued) Holding Investment % of Investment UNITED STATES OF AMERICA 18.50% (17.04%) (continued) Media 0.49% (0.83%) 2,195 Comcast Travel & Leisure 0.17% (0.45%) 1,010 Southwest Airlines Fixed Line Telecommunications 0.25% (0.00%) 2,099 AT&T Banks 2.12% (1.19%) 9,753 Bank of America ,960 BB&T ,355 JPMorgan Chase SVB Financial Group ANALYSIS OF INVESTMENTS BY ASSET CLASS Fixed interest Floating rate notes Equity 13, Collective investment schemes 1, Total value of investments 16, June 2015 comparatives in brackets. *Variable rate bond. Alternative Investment Market. Nonlife Insurance 0.43% (0.37%) 1,036 ACE Life Insurance 0.32% (0.29%) 1,018 Prudential Financial Real Estate Investment Trusts 0.11% (0.00%) 672 Prologis Financial Services 2.18% (1.30%) 668 American Express ,090 Capital One Financial ,968 FNF Group ,212 MasterCard Class A Northern Trust ,002 Synchrony Financial ,137 Visa 'A' Shares Nonequity Investment Instruments 0.00% (0.74%) Software & Computer Services 1.01% (0.83%) 130 Alphabet Class A ,231 Microsoft Technology Hardware & Equipment 1.81% (2.00%) 1,897 Apple ,429 Cisco Systems ,370 EMC ,364 Intel ,394 KLA-Tencor Total United States of America 3, Total value of investments 16, Net other assets (10.27%) 1, Net assets 18,

20 Threadneedle Navigator Income Trust Manager s Report Investment Objective and Policy To achieve a high level of income. The Manager s investment policy is to invest in fixed interest investments primarily in the UK and Continental Europe. The Manager does not envisage remaining fully invested at all times and may utilise stocklending, forward transactions and derivatives in order to hedge against price or currency fluctuations and to facilitate Efficient Portfolio Management. This report covers the period from 2 June 2015 to 1 December Status of the Trust The trust is an authorised Unit Trust Scheme within Section 243 of the Financial Services and Markets Act 2000, and is a UCITS scheme for the purpose of the Financial Conduct Authority s Collective Investment Schemes Sourcebook (COLL) as amended from time to time. Performance Over the six months to 1 December 2015, the iboxx Sterling Non-Gilt Index produced a total return of -0.31%. The offer price of accumulation units in the trust fell by 0.71% from p to p during the same period. Please note that the iboxx Sterling Non-Gilt Index returns quoted above are at global close as of 30 November 2015, although the trust is valued at 12 noon on the next working day. Income Distribution In accordance with the Prospectus, holders of income units in the trust will receive distributions on a quarterly basis. The distribution on income units for the quarter ended 1 December 2015 amounts to p per unit net. This brings the total payments from the trust for the review period to p per unit net. The distribution on accumulation units is transferred from income to the capital property of the trust following the end of the distribution period. The amount accumulated after the quarter ended 1 December 2015 was p per unit net. This brings the total amount accumulated for the review period to p per unit net. Market Overview and Portfolio Activity Government bond markets produced positive returns over the period under review, helped by the risk-averse environment that prevailed during the summer. However, US Treasury bonds lagged the returns from other core government markets amid growing speculation over a possible US interestrate hike. While these perceived safe-haven assets fared well during the period, investment-grade corporate bonds posted a slight negative return. Yield spreads over government bonds widened during the risk-off phase in financial markets. Over the reporting period, the UK gilt market was driven largely by international events such as the Greek debt crisis, the further falls in commodity prices, the economic slowdown in China and other emerging markets, and ongoing geopolitical tensions. After its earlier strong performance, the Chinese equity market fell sharply in the summer, triggering falls in other world stock markets and a general move in favour of safe-haven assets. The Chinese authorities devalued the renminbi and introduced measures to help stabilise the market. On the domestic front, the Bank of England held official UK interest rates at the record low of 0.5% throughout the period, as consumer price inflation hovered around zero. Attention was also focused on the US Federal Reserve amid continuing speculation over the likely timing of a US interest-rate hike. In the event, at the September FOMC (Federal Open Market Committee) meeting the Fed surprised the markets with a more dovish outlook than expected, and both gilts and US Treasuries rallied on the announcement. The focus has now moved to December s FOMC meeting, with the market forecasting a rise in rates. Over the six months under review, the trust maintained a flexible and nimble approach to duration (interest-rate risk) positioning. For example, during the Greek debt troubles the trust was positioned with a modestly overweight duration, while it was neutrally positioned at the time of the renminbi devaluation. During the period, new positions were established in Stagecoach (maturing in 2025, with a coupon rate of 4%), and Northern Gas Networks (maturing in 2027, with a coupon rate of 4.875%). We sold the remaining position in Brazilian oil company Petrobras. At a sector level, we remained cautious on autos and had no exposure to Volkswagen, which was adversely affected by the diesel-emissions scandal. The trust also had no exposure to German utilities, which suffered on concerns over the government s intervention relating to Germany s nuclear provisioning. Looking ahead, the UK economy faces several challenges over the coming year, including the referendum on EU membership. Markets will also have to contend with continuing uncertainty over when the Bank of England will begin to raise UK interest rates, although most commentators believe this is now unlikely to occur before the end of Investment-grade corporate bonds have seen signs of a modest deterioration in the underlying fundamentals. The UK market has been experiencing a boom in merger and acquisition activity, which often has negative implications for investment-grade corporates. Moreover, companies are generally adopting more shareholder-friendly policies such as share buybacks. Nevertheless, corporate bond valuations have become more attractive and the supply of sterling-denominated bonds has been muted, thereby supporting the market s technical demand/supply backdrop. Other Information Pages 39 to 47 at the back of these Interim Reports and Financial Statements form part of the Manager s Report. Directors Statement In accordance with the requirements of the Financial Conduct Authority s Collective Investment Schemes (COLL) Sourcebook, we hereby certify the Interim Report and Financial Statements on behalf of the Directors of Threadneedle Investment Services Limited. T N Gillbanks Director 13 January 2016 C D Fleming Director 19