Unicorn Investment Funds - Mastertrust Fund Short Reort 30 Setember 2015
Directory Authorised Cororate Director & Investment Manager Unicorn Asset Management Limited First Floor Office Preacher's Court The Charterhouse Charterhouse Square London EC1M 6AU (Authorised and regulated by the Financial Conduct Authority) Investment Advisor Mastertrust Fund Peter John Walls Burfords Lower Green Galleywood Essex CM2 8QS Administrator and Registrar Phoenix Fund Services (UK) Ltd Sringfield Lodge, Colchester Road, Chelmsford, Essex CM2 5PW Telehone: 01245 398950 Fax: 01245 398951 Website: www.hoenixfundservices.com (Authorised and regulated by the Financial Conduct Authority) Customer Service Centre Phoenix Fund Services (UK) Ltd Sringfield Lodge, Colchester Road, Chelmsford, Essex CM2 5PW Telehone: 0345 026 4287 Fax: 0845 280 2415 Email: unicorn@hoenixfundservices.com (Authorised and regulated by the Financial Conduct Authority) Deositary HSBC Bank lc 8 Canada Square London E14 5HQ (Authorised and regulated by the Prudential Regulation Authority and the Financial Conduct Authority) Auditor Grant Thornton UK LLP 30 Finsbury Square London EC2P 2YU Unicorn Investment Funds - Mastertrust Fund 1
Investment Objective and Policy The Unicorn Mastertrust Fund aims to achieve long term caital growth by investing in a wide range of listed investment comanies. The Fund has issued Retail (A), Institutional (B) and Overseas (O) Income shares. Investment Manager's Reort for the eriod from 01 October 2014 to 30 Setember 2015 For the twelve month eriod ending 30 Setember 2015 Unicorn Mastertrust s Institutional (B) shares roduced a ositive return of 2.7%. Over the same eriod the overall UK equity market declined by 2.5% and the average return achieved by cometing Flexible Investment funds was -0.2% (source: Financial Exress Bid to Bid, Total Returns). The Fund was invested in 52 comanies at the eriod end. The most significant ositive contributions to erformance during the eriod came from Strategic Equity Caital and Acorn Income Fund which achieved share rice gains of 40.3% and 22.4% resectively. Strong share rice areciation was also recorded by TR Proerty Investment Trust (+15.2%), North Atlantic Smaller Comanies Investment Trust (+23.5%), Blackrock Throgmorton Trust (+18.3%), Henderson Smaller Comanies Investment Trust (+19.7%) and Indeendent Investment Trust (+23.0%). The largest detractors from erformance during the eriod were Temleton Emerging Markets Investment Trust (-31.4%), Candover Investments (-64.2%), City Natural Resources High Yield Trust (-39.0%), Edinburgh Dragon Trust (-16.4%), Hansa Trust (-15.8%) and Aberdeen Latin American Income Fund (-39.7%). Six new investments were added to the ortfolio in the eriod under review. There were two additions in the Listed Private Equity sector (Aax Global Alha and Harbourvest Global Private Equity), two in the Global sector (Alliance Trust and Law Debenture Cororation) together with two secialist trusts; Gabelli Value Plus + Trust (North America) and Aberdeen New Dawn Investment Trust (Asia Pacific). Four investments were realised in full, namely, Witan Investment Trust, Pacific Assets Trust, Acencia Debt Strategies and Marwyn Value Investors. As anticiated at the interim stage, equity markets exerienced increased volatility towards the end of the eriod under review as concerns mounted over the outlook for the Chinese economy and the timing of interest rate rises in the United States. These heightened fears coincided with a eriod in which a number of indicators suggested a slowing in the rate of global economic growth and led to shar corrections in the share rices of emerging markets and commodities focused investment comanies. As mentioned in our revious reviews since the global financial crisis, the ath towards the normalisation of interest rates is likely to remain to the fore of investors minds for some considerable time to come. While markets have subsequently recovered their oise it is likely that further bouts of uncertainty will characterise markets in the coming year as develoed markets aear to be neither excessively chea nor exensive. In contrast, emerging markets have de-rated to levels which have historically roved to be an attractive entry oint. 2 Unicorn Investment Funds - Mastertrust Fund
Investment Manager s Reort continued Desite the recent increase in volatility, average discounts within the investment comanies sector traded within a relatively narrow range during the eriod under review. While it has been some time since the relationshi between share rices and net asset values has been tested by a severe market correction it was encouraging to note an acceleration of share buy-back activity during the more challenging market conditions in the third quarter of 2015. Investor interest in the Investment Comanies sector has continued to increase following the imlementation of the Retail Distribution Review and new and secondary issue activity has continued aace. We continue to believe that the Investment Comanies sector offers excellent oortunities to deliver long-term returns and that Mastertrust is well laced to make further rogress in the future. Unicorn Investment Funds - Mastertrust Fund 3
Comarative Tables Accounting and distribution dates Accounting Distribution Final 30 Setember 30 November Interim 31 March Change in net assets er share Retail (A) Income 30.09.15 30.09.14 30.09.13 Oening net asset value er share 340.13 318.61 247.96 Return before oerating charges^ 12.31 27.22 76.22 Oerating Charges -5.84-5.70-5.57 Return after oerating charges^ 6.47 21.52 70.65 Distributions on income shares -0.24 0.00 0.00 Closing net asset value er share 346.36 340.13 318.61 ^After direct transaction costs of -0.75-1.08-1.08 Performance Return after charges 1.90% 6.75% 28.49% Other Information Closing net asset value 3,938,281 4,615,432 5,009,850 Closing number of shares 1,137,042 1,356,980 1,572,415 Oerating Charges 1.64% 1.69% 1.91% Direct transaction costs 0.21% 0.32% 0.37% Prices Highest share rice 374.51 348.36 323.99 Lowest share rice 326.11 318.43 250.50 Institutional (B) Income 30.09.15 30.09.14 30.09.13 Oening net asset value er share 304.52 284.42 220.85 Return before oerating charges^ 11.02 24.08 67.89 Oerating Charges -2.85-2.84-4.32 Return after oerating charges^ 8.17 21.24 63.57 Distributions on income shares -2.65-1.14 0.00 Closing net asset value er share 310.04 304.52 284.42 ^After direct transaction costs of -0.67-0.97-0.96 Performance Return after charges 2.68% 7.47% 28.78% Other Information Closing net asset value 21,039,335 15,415,632 5,051,272 Closing number of shares 6,785,923 5,062,254 1,775,960 Oerating Charges 0.89% 0.94% 1.66% Direct transaction costs 0.21% 0.32% 0.37% Prices Highest share rice 336.87 312.85 289.20 Lowest share rice 292.09 284.28 223.11 4 Unicorn Investment Funds - Mastertrust Fund
Comarative Tables continued Change in net assets er share Overseas (O) Income 30.09.15 30.09.14^^ Oening net asset value er share 99.97 100.00 Return before oerating charges^ 3.62 1.67 Oerating Charges -1.72-1.70 Return after oerating charges^ 1.90-0.03 Distributions on income shares -0.07 0.00 Closing net asset value er share 101.80 99.97 ^After direct transaction costs of -0.22-0.32 Performance Return after charges 1.90% -0.03% Other Information Closing net asset value 55,781 59,880 Closing number of shares 54,797 59,897 Oerating Charges 1.64% 1.69% Direct transaction costs 0.21% 0.32% Prices Highest share rice 110.07 102.38 Lowest share rice 95.85 98.93 ^^ Overseas (O) Income Shares launched on 28 February 2014. Oerating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed (but not limited to) the detailed exenses within the Statement of Total Return. The figures used within this table have been calculated against the average Net Asset Value for the accounting year. The return after charges is calculated as the closing net asset value er share lus the distributions on income shares minus the oening net asset value er share as a % of the oening net asset value er share. Direct transaction costs include fees, commissions, transfer taxes and duties in the urchasing and selling of investments, which are offset (where alicable) against any dilution levies charged within the accounting year. The figures used within the table have been calculated against the average Net Asset Value for the accounting year. Unicorn Investment Funds - Mastertrust Fund 5
Comarative Tables continued Risk and reward rofile The risk and reward indicator table demonstrates where the Fund ranks in terms of its otential risk and reward. The higher the rank the greater the otential reward but the greater the risk of losing money. It is based on ast data, may change over time and may not be a reliable indication of the future risk rofile of the Fund. The shaded area in the table below shows the Fund s ranking on the risk and reward indicator. Tyically lower rewards, lower risk Tyically higher rewards, higher risk 1 2 3 4 5 6 7 The Fund is ranked at 4 because funds of this tye have exerienced average rises and falls in value in the ast. During the year under review the category changed from 5 to 4, this is due to the rice volatility of the Fund. Please note that even the lowest risk class can lose you money and that extreme market circumstances can mean you suffer severe losses in all cases. The indicator does not take into account the following risks of investing in this Fund: Changes in currency exchange rates may cause the value of investments to decrease or increase. The rice of investment trusts may not reflect the value of the assets they hold. This can result in wide rice changes of the investment trust shares. For further risk information lease see the rosectus. Risk warning An investment in an Oen Ended Investment Comany should be regarded as a medium to long-term investment. Investors should be aware that the rice of shares and the revenue from them can fall as well as rise and investors may not receive back the full amount invested. Past erformance is not a guide to future erformance. Investments denominated in currencies other than the base currency are subject to fluctuation in exchange rates, which can be favourable or unfavourable. 6 Unicorn Investment Funds - Mastertrust Fund
Sector sread of investments All sectors in ercentage order are shown below Sector % of Fund as at 30.09.15 Equity Investment Instruments 87.04 Financial Services 2.92 Convertible Bond 1.59 Net other assets 8.45 Sector % of Fund as at 30.09.14 Equity Investment Instruments 78.10 Financial Services 2.67 Convertible Bond 1.58 Net other assets 17.65 Major holdings The to ten holdings at the end of each year are shown below Holding % of Fund as at 30.09.15 Foreign & Colonial Investment Trust 3.78 TR Proerty Investment Trust 3.76 Acorn Income Fund 3.71 Caledonia Investments 3.47 Herald Investment Trust 3.28 Fidelity Asian Values 3.14 Henderson Smaller Comanies Investment Trust 2.79 BlackRock Throgmorton Trust 2.78 SVG Caital 2.68 Hansa Trust 'A' 2.48 Holding % of Fund as at 30.09.14 Foreign & Colonial Investment Trust 3.21 Caledonia Investments 2.93 Temleton Emerging Markets Investment Trust 2.89 TR Proerty Investment Trust 2.85 Fidelity Asian Values 2.57 Acorn Income Fund 2.54 Marwyn Value Investors 2.52 North Atlantic Smaller Comanies Investment Trust 2.50 Herald Investment Trust 2.49 Edinburgh Dragon Trust 2.29 Unicorn Investment Funds - Mastertrust Fund 7
General Information Authorised Status Unicorn Investment Funds (the Comany ) is structured as an Investment Comany with Variable Caital (''ICVC''), under regulation 12 (Authorisation) of the OEIC Regulations (Oen-Ended Investment Comanies Regulations 2001 (SI 2001/1228)). The Comany does not intend to have an interest in immovable roerty. The Comany is authorised and regulated in the UK by the Financial Conduct Authority (''FCA'') as a UCITS Retail Scheme and ''Umbrella Comany'' under the COLL Sourcebook. The Comany was incororated in England and Wales on 21 December 2001 under registration number IC000143. The Shareholders are not liable for the debts of the Comany. Buying and Selling of Shares The ACD will accet orders for the urchase and sale of shares on normal business days between 08:30 and 16:30. Instructions to buy or sell shares may either be in writing to: Phoenix Fund Services (UK) Ltd Sringfield Lodge, Colchester Road, Chelmsford, Essex CM2 5PW Or by telehone to: 0345 026 4287 Or by facsimile to: 0845 280 2415 The ACD has the right to establish facilities for recording telehone calls made or received on this telehone line. A contract note giving details of the shares urchased will be issued no later than the next business day after the business day on which an alication to urchase shares is received and instrumented by the ACD. Certificates will not be issued in resect of shares. Ownershi of shares will be evidenced by an entry on the register of shareholders. Reort and Accounts This document is a short reort of the Unicorn Investment Funds - Mastertrust Fund for the year ended 30 Setember 2015. The full Reort and Accounts for the Fund is available uon written request to Phoenix Fund Services (UK) Ltd, Sringfield Lodge, Colchester Road, Chelmsford, Essex CM2 5PW Other Information The information in this reort is designed to enable you to make an informed judgement on the activities of the Fund during the eriod it covers and the results of those activities at the end of the eriod. Risk Warning An investment in an Investment Comany with Variable Caital should be regarded as a medium to long term investment. Investors should be aware that the rice of shares and the revenue from them can fall as well as rise and investors may not receive back the full amount invested. Past erformance is not a guide to future erformance. Investments denominated in currencies other than the base currency are subject to fluctuation in exchange rates, which can be favourable or unfavourable. 8 Unicorn Investment Funds - Mastertrust Fund
Unicorn Asset Management Limited Registered in England No. 3919499 Authorised and Regulated by the Financial Conduct Authority