MELCHIOR INVESTMENT FUNDS

MELCHIOR INVESTMENT FUNDS For the year ended 30 November 2013 THESIS UNIT TRUST MANAGEMENT LIMITED Authorised and regulated by the Financial Conduct Authority

SERVICE PROVIDERS' DETAILS AUTHORISED CORPORATE DIRECTOR ('ACD') Thesis Unit Trust Management Limited Head Office: Exchange Building St John's Street Chichester West Sussex PO19 1UP Telephone: 01243 531234 (Authorised and regulated by the Financial Conduct Authority) REGISTRARS Northern Trust Global Services Ltd P.O. Box 3733 Royal Wootton Bassett Swindon SN4 4BG (Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority) DIRECTORS OF THE ACD D.W. Tyerman - Chief Executive Officer S.R. Mugford - Finance Director A.J Edwards - Non-Executive Chairman G.S. Dalton Chief Operating Officer S. Noone Client Service Director A. Gilbert Non-Executive Director INVESTMENT MANAGERS Dalton Capital (Guernsey) Limited Third Floor National Westminster House Le Truchot, St Peter Port Guernsey GY1 1WD (Regulated by the Guernsey Financial Services Commission) Dalton Capital (Guernsey) Limited has delegated the day to day investment management of the assets of the Melchior Japan Advantage Fund to Dalton Capital (Japan) Inc., which is licensed and registered by the Financial Services Agency (of the Japanese Government). For the remaining funds Dalton Capital (Guernsey) Limited has delegated the day to day investment management to Dalton Strategic Partnership LLP, which is authorised and regulated by the Financial Conduct Authority. The principal activity of Dalton Strategic Partnership LLP is the provision of investment management services. DEPOSITARY National Westminster Bank plc Trustee & Depositary Services Younger Building 1st Floor 3 Redheughs Avenue Edinburgh EH12 9RH (Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority) INDEPENDENT AUDITORS KPMG Audit plc 15 Canada Square London E14 5GL Melchior Investment Funds

CONTENTS Statement of ACD's Responsibilities... 3 Statement of Depositary Responsibilities and Report of the Depositary to the Shareholders of Melchior Investment Funds... 3 Certification of Accounts by Directors of the ACD... 4 Authorised Status... 4 Independent Auditors' Report to the Shareholders of Melchior Investment Funds... 5 AGGREGATED FINANCIAL STATEMENTS Aggregated Statement of Total Return... 7 Aggregated Statement of Change in Net Assets Attributable to Shareholders... 7 Aggregated Balance Sheet... 8 Notes to the Financial Statements... 9 MELCHIOR ASIAN OPPORTUNITIES FUND Investment Manager's Report... 21 Comparative Tables... 23 Portfolio Statement... 30 FINANCIAL STATEMENTS Statement of Total Return... 32 Statement of Change in Net Assets Attributable to Shareholders... 32 Balance Sheet... 33 Notes to the Financial Statements... 34 Distribution Tables... 41 MELCHIOR GLOBAL EQUITY FUND Investment Manager's Report... 43 Comparative Tables... 45 Portfolio Statement... 48 FINANCIAL STATEMENTS Statement of Total Return... 54 Statement of Change in Net Assets Attributable to Shareholders... 54 Balance Sheet... 55 Notes to the Financial Statements... 56 Distribution Tables... 65 MELCHIOR JAPAN ADVANTAGE FUND Investment Manager's Report... 66 Comparative Tables... 68 Portfolio Statement... 73 FINANCIAL STATEMENTS Statement of Total Return... 77 Statement of Change in Net Assets Attributable to Shareholders... 77 Balance Sheet... 78 Notes to the Financial Statements... 79 Distribution Tables... 86 Melchior Investment Funds 1

CONTENTS (continued) MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND Investment Manager's Report... 88 Comparative Tables... 90 Portfolio Statement... 97 FINANCIAL STATEMENTS Statement of Total Return... 101 Statement of Change in Net Assets Attributable to Shareholders... 101 Balance Sheet... 102 Notes to the Financial Statements... 103 General Information... 110 2 Melchior Investment Funds

STATEMENT OF ACD'S RESPONSIBILITIES The Open-Ended Investment Companies Regulations 2001 (the "OEIC Regulations") and the Collective Investment Schemes Sourcebook ("COLL") require the ACD to prepare financial statements for each financial year. These financial statements must be prepared in accordance with generally accepted accounting principles to give a true and fair view of the financial position of the Company at the year end and of the net revenue or expense and net capital gains or losses on the scheme property of the Company for the year. In preparing the Financial Statements the ACD is required to: prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in operation; select suitable accounting policies and then apply them consistently; comply with the disclosure requirements of the Statement of Recommended Practice relating to Authorised Funds issued by the Investment Management Association ( IMA ) in October 2010; follow generally accepted accounting principles and applicable United Kingdom accounting standards; keep proper accounting records which enable them to demonstrate that the Financial Statements as prepared comply with the above requirements; and make judgments and estimates that are reasonable and prudent. The ACD is responsible for the management of the Company in accordance with its Instrument of Incorporation, the Collective Investment Schemes Sourcebook ("COLL"), as amended, the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228), as amended ("the OEIC Regulations") and the Prospectus. The ACD is also responsible for maintaining an appropriate system of internal controls and for taking reasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT OF DEPOSITARY'S RESPONSIBILITIES AND REPORT OF THE DEPOSITARY TO THE SHAREHOLDERS OF MELCHIOR INVESTMENT FUNDS ( THE COMPANY ) The depositary is responsible for the safekeeping of all of the property of the company (other than tangible moveable property) which is entrusted to it and for the collection of revenue that arises from that property. It is the duty of the depositary to take reasonable care to ensure that the company is managed in accordance with the Financial Conduct Authority's Collective Investment Schemes Sourcebook (COLL), as amended, the Open-ended Investment Companies Regulations 2001 (SI 2001/1228), as amended ('the OEIC Regulations'), the company's instrument of incorporation and prospectus, in relation to the pricing of, and dealings in, shares in the company; the application of revenue of the company; and the investment and borrowing powers applicable to the company. Having carried out such procedures as we considered necessary to discharge our responsibilities as Depositary of the Company, it is our opinion, based on the information available to us and the explanations provided, that in all material respects the company acting through the authorised corporate director: has carried out the issue, sale, redemption and cancellation, and calculation of the price of the company's shares and the application of the company's revenue in accordance with COLL and, where applicable, the OEIC Regulations, the instrument of incorporation and prospectus of the company, and has observed the investment and borrowing powers and restrictions applicable to the company. National Westminster Bank plc Melchior Investment Funds 3

CERTIFICATION OF ACCOUNTS BY DIRECTORS OF THE ACD In accordance with the requirements of the Open-Ended Investment Companies Regulations 2001 (the "OEIC Regulations") and the COLL Sourcebook, we hereby certify this report on behalf of the ACD, Thesis Unit Trust Management Limited. D.W. TYERMAN Director S. NOONE Director 24 February 2014 AUTHORISED STATUS Melchior Investment Funds ( the Company ) is an investment company with variable capital under regulation 12 (Authorisation) of the OEIC Regulation [Open-ended Investment Companies Regulations 2001 (SI 2001/1228)] incorporated in England and Wales under registration number IC256 and authorised by the Financial Conduct Authority with effect from 22 September 2003. Shareholders are not liable for the debts of the Company. As the Company is an umbrella company, each Fund has a specific segregated portfolio of assets to which any liabilities attributable or allocated to a particular Fund shall be met first out of the property attributable, or allocated to, that particular Fund. Accordingly the assets of each Fund belong exclusively to that Fund and shall not be used to discharge directly, or indirectly, the liabilities of, or claims against, any other person or body, including the Company, or any other Fund, and shall not be available for any such purpose. 4 Melchior Investment Funds

INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF MELCHIOR INVESTMENT FUNDS ('THE COMPANY') We have audited the financial statements of the Company for the year ended 30 November 2013 which comprise the Statement of Total Return, the Statement of Change in Net Assets attributable to Shareholders, and the Balance Sheet together with the related notes, including the Distribution Table. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the Company's shareholders, as a body, in accordance with Rule 4.5.12 of the Collective Investment Schemes sourcebook ('the COLL Rules') issued by the Financial Conduct Authority under the Open-Ended Investment Companies Regulations 2001. Our audit work has been undertaken so that we might state to the Company's shareholders those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's shareholders as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the Authorised Corporate Director ('the ACD') [Thesis Unit Trust Management Limited] and auditor As explained more fully in the Statement of ACD's Responsibilities set out on page 3 the ACD is responsible for the preparation of financial statements which give a true and fair view. Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate. Opinion on financial statements In our opinion the financial statements: give a true and fair view, in accordance with UK Generally Accepted Accounting Practice, of the financial position of the Company as at 30 November 2013 and of the net revenue and the net capital gains on the property of the Company for the year then ended; and have been properly prepared in accordance with the Instrument of Incorporation, the Statement of Recommended Practice relating to Authorised Funds and the COLL Rules. Opinion on other matters prescribed by the COLL Rules In our opinion the information given in the Authorised Corporate Director's Report is consistent with the financial statements. We have received all the information and explanations which we consider necessary for the purposes of our audit. Melchior Investment Funds 5

INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF MELCHIOR INVESTMENT FUNDS ('THE COMPANY') (continued) Matters on which we are required to report by exception We have nothing to report in respect of the following matters where under the COLL Rules we are required to report to you if, in our opinion: proper accounting records for the Company have not been kept; or the financial statements are not in agreement with the accounting records. Ravi Lamba for and on behalf of KPMG Audit Plc, Statutory Auditor Chartered Accountants 15 Canada Square Canary Wharf London E14 5GL 24 February 2014 6 Melchior Investment Funds

AGGREGATED FINANCIAL STATEMENTS AGGREGATED STATEMENT OF TOTAL RETURN FOR THE YEAR ENDED 30 NOVEMBER 2013 Notes Income Net capital gains 2 62,523,798 26,478,366 Revenue 3 3,231,439 5,461,744 Expenses 4 (2,962,918) (3,875,840) Finance costs: Interest 6 (1,251) (639,355) Net revenue before taxation 267,270 946,549 Taxation 5 (224,047) (338,515) Net revenue after taxation 43,223 608,034 Total return before distributions 62,567,021 27,086,400 Finance costs: Distributions 6 (495,718) (1,062,935) Change in net assets attributable to shareholders from investment activities 62,071,303 26,023,465 AGGREGATED STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS FOR THE YEAR ENDED 30 NOVEMBER 2013 Opening net assets attributable to shareholders 184,955,838 210,582,468 Currency translation (21,581,144) (11,035,859) 163,374,694 199,546,609 Amounts receivable on issue of shares of share 90,204,787 112,183,129 Less: Amounts payable on cancellation of shares (140,584,296) (153,682,534) (50,379,509) (41,499,405) Dilution levy charged 2,399 4,357 Stamp duty reserve tax (1) (846) Change in net assets attributable to shareholders (see Statement of Total Return above) 62,071,303 26,023,465 Retained distribution on Accumulation shares 468,343 881,658 Closing net assets attributable to shareholders 175,537,229 184,955,838* Notes 1 to 13 form part of these financial statements. * The comparative closing net assets attributable to shareholders includes the value of UK Opportunities Fund and Japan Opportunities Fund which terminated on 23 October 2013 and 31 July 2013 respectively. Melchior Investment Funds 7

AGGREGATED FINANCIAL STATEMENTS (continued) AGGREGATED BALANCE SHEET AS AT 30 NOVEMBER 2013 Notes ASSETS Investment assets 168,485,937 179,994,218 Other assets Debtors 7 3,860,561 5,306,957 Cash and bank balances 7,658,833 7,071,647 Total other assets 11,519,394 12,378,604 Total assets 180,005,331 192,372,822 LIABILITIES Derivative liabilities - (7,445) Other liabilities Creditors 8 (4,218,443) (5,954,198) Bank overdrafts (249,659) (1,455,341) Total other liabilities (4,468,102) (7,409,539) Total liabilities (4,468,102) (7,416,984) Net assets attributable to shareholders 175,537,229 184,955,838* Notes 1 to 13 form part of these financial statements. * The comparative closing net assets attributable to shareholders includes the value of UK Opportunities Fund and Japan Opportunities Fund which terminated on 23 October 2013 and 31 July 2013 respectively. 8 Melchior Investment Funds

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS AS AT 30 NOVEMBER 2013 1. ACCOUNTING POLICIES The principal accounting policies, which have been applied in both the current and prior year, are set out below: (a) Basis of accounting The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments and in accordance with the Statement of Recommended Practice ( SORP ) for Financial Statements of Authorised Funds issued by the Investment Management Association in October 2010. (b) Basis of aggregation The aggregated financial statements represent the sum of the individual sub-funds within the umbrella company which are recorded in their functional and presentational currency. For aggregation purposes the Financial Statements and notes to the accounts have been translated into sterling at the following rates. Melchior Asian Opportunities Fund 1.6329* US dollars for each Sterling pound. Melchior Japan Advantage Fund 167.0049 Japanese yen for each Sterling pound. Melchior North American Opportunities Fund 1.6367* US dollars for each Sterling pound. * These have been translated at different exchange rates due to the different valuation points for the respective funds. Please see Note 1(i) for further details. (c) Recognition of revenue Dividends on quoted equities and preference shares are recognised when the securities are quoted ex-dividend. Income from unquoted equity investments is recognised when the dividend is declared. Underwriting commission is wholly recognised as income when the issue takes place, except where the Company is required to take up all or some of the shares underwritten, in which case an appropriate proportion of the commission received is deducted from the cost of those shares. Interest on bank and other cash deposits is recognised on an accruals basis. All revenue is recognised as a gross amount that includes any withholding taxes but excludes any other taxes such as attributable tax credits. (d) Treatment of stock and special dividends The ordinary element of stock received in lieu of cash dividends is credited to capital in the first instance followed by a transfer to income of the cash equivalent being offered and this forms part of the distributable revenue. Special dividends are reviewed on a case by case basis in determining whether the dividend is to be treated as revenue or capital. Amounts recognised as income will form part of the distributable revenue. The tax accounting treatment follows the treatment of the principal amount. Melchior Investment Funds 9

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 1. ACCOUNTING POLICIES (continued) (e) Treatment of expenses All expenses, except for those relating to the purchase and sale of investments, stamp duty reserve tax and legal expenses of a capital nature are charged against revenue. Performance fees are initially charged against revenue, but subsequently transferred to capital for distribution purposes. All C and D Shares are subject to a performance fee. This is 15% of the outperformance of the share class over the applicable index plus a 1.5% hurdle. A performance fee may still be paid if the share class falls in value but still outperforms the benchmark index. The performance fee is calculated and paid after consideration of all other payments to be made by the Funds. As the performance fee is calculated in reference to a benchmark index there is no maximum performance fee that can be stated. Further details on the calculation method are available within the Fund s Prospectus and on request to the ACD. In relation to the Global Equity Fund, at the start of the prior period the Investment Manager waived their IM fee. The AMC was therefore reduced to the extent that it covered the administration fee and ACD fee. Both the Administrator and the ACD also agreed to waive 50 per cent of their annual minimums which equated to 47.95 per day. ( 25,000 plus 10,000 per annum divide by 2 divide by 365). (f) Allocation of income and expenses to multiple share classes and sub-funds Any revenue or expense not directly attributable to a particular share class or sub-fund will normally be allocated pro-rata to the net assets of the relevant share classes and sub-funds. (g) Taxation Corporation tax is provided at 20% on taxable revenue, after deduction of allowable expenses. Where overseas tax has been deducted from overseas revenue that tax can, in some instances, be set off against the corporation tax payable, by way of double tax relief. Deferred tax is provided using the liability method on all timing differences arising on the treatment of certain items for taxation and accounting purposes, calculated at the rate at which it is anticipated the timing differences will reverse. Deferred tax assets are recognised only when, on the basis of available evidence, it is more likely than not that there will be taxable profits in the future against which the deferred tax asset can be offset. Stamp duty reserve tax suffered on surrender of shares is deducted from capital. (h) Distribution policy Surplus revenue after taxation, as disclosed in the financial statements, after adjustment for items of a capital nature, is distributable to shareholders. Any income deficit is deducted from capital. Interim distributions may be made at the ACD s discretion. Final distributions are made in accordance with the Regulations. 10 Melchior Investment Funds

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 1. ACCOUNTING POLICIES (continued) (i) Basis of valuation of investments Listed investments for Melchior Asian Opportunities Fund and Melchior Japan Advantage Fund are valued at closing bid prices at 11am on the last business day of the accounting year. Listed investments for Melchior Global Equity Fund and Melchior North American Opportunities Fund are valued at closing bid prices at the Close of Business on the last business day of the accounting year. Unlisted or suspended investments are valued by the Investment Manager taking into account, where appropriate, latest dealing prices, valuations from reliable sources, financial performance and other relevant factors. Purchases and sales of investments are recognised when a legally binding and unconditional right to obtain, or an obligation to deliver, an asset or liability arises. (j) Exchange rates Transactions in foreign currencies are recorded in sterling at the rate ruling at the date of the transactions. Revenue received in currencies different to the base currency of each sub-fund have been translated into the base currency of each sub-fund at the rates of exchange ruling on or near the date of receipt by the depositary. Assets and liabilities expressed in foreign currencies at the end of the accounting period are translated into sterling at the closing exchange rates ruling on that date. (k) Dilution levy The ACD currently charges a dilution levy at 0.5% on the purchase and/or sale value of shares on all large deals (which for these purposes are defined as 5% of the size of the relevant sub-fund). The dilution levy is calculated by reference to the costs of dealing in the underlying investments of the sub-fund, including any dealing spreads, commission and transfer taxes. (l) Set up costs Initial set up costs are written off as they are incurred. (m) Hedging mechanism for the North American Opportunities Fund and Japan Advantage Fund hedged share classes The Investment Manager plans to undertake currency class hedging transactions with respect to the Sterling hedged class and Euro hedged class of shares in the Melchior North American Opportunities Fund and the Sterling hedged class of shares in the Melchior Japan Advantage Fund. This will be done with the aim of reducing the risk attached to these classes of share, by limiting the effect of movements in exchange rates on the value of the Sterling and Euro hedged share classes. The Investment Manager will aim to hedge USD assets back to the GBP currency of the Sterling hedged share class, and USD assets back to the Euro currency of the Euro hedged share class, in order to attempt to remove currency risk for investors. The total return, rather than just the capital, will be hedged, and the Investment Manager will generally aim to hedge at least 95% of the total value of the Sterling hedged class of share or Euro hedged class of share at any time. There can be no guarantee that even when the Investment Manager undertakes hedging on 100% of the total value of the Sterling or Euro hedged share classes that this will be a perfect hedge, and remove currency risk for holders of the Sterling or Euro hedged share classes. The Investment Manager will review the hedging position on each day where there is a valuation point, and will adjust the hedge appropriately if there is a material change to the dealing volume. Melchior Investment Funds 11

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 2. NET CAPITAL GAINS Net capital gains during the year comprise: Non-derivative securities 60,751,878 26,126,311 Derivative securities - (6,033) Currency gains 138,449 447,170 Forward currency contracts 1,728,519 9,968 Transaction charges (95,048) (99,050) Net gains 62,523,798 26,478,366 3. REVENUE Bank interest 40,680 631,118 Interest on debt securities - 1,507 Overseas dividends 3,138,557 4,662,714 Offshore CIS revenue 40,923 109,098 UK dividends 11,279 57,307 Total revenue 3,231,439 5,461,744 12 Melchior Investment Funds

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 4. EXPENSES Payable to the ACD, associates of the ACD and agents of either of them: ACD's periodic charge 2,462,466 3,323,402 Payable to the Depositary, associates of the Depositary and agents of either of them: Depositary fees 80,068 108,728 Safe custody and other bank charges 41,070 48,837 121,138 157,565 Other expenses: Administration fees 39,891 32,246 Fees paid to auditors - audit 48,642 95,576 - tax services 14,212 6,989 FCA fee 719 672 German taxation fees expense 6,732 8,542 Insurance premiums 22,250 12,738 Legal and professional fees 169,784 (40,669) Performance fees 45,720 91 Printing costs 10,516 5,604 Publication costs 2,999 244 Registration fees 17,849 272,840 379,314 394,873 Total expenses 2,962,918 3,875,840 Melchior Investment Funds 13

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 5. TAXATION a) Analysis of charge for the year Corporation tax at 20% - - Overseas tax 224,047 338,515 Current tax charge (note 5b) 224,047 338,515 Deferred tax - origination and reversal of timing differences (note 5c) - - Total taxation 224,047 338,515 b) Factors affecting current tax charge for the year The tax assessed for the year differs from the standard rate of corporation tax in the UK for an authorised fund (20%) (30.11.12: 20%) for the reasons explained below. Net revenue before taxation 267,270 946,549 Corporation tax at 20% 53,454 189,310 Effects of: DTR expensed (120) (177) Expenses not deductable for tax purposes 1,610 2,547 Non trade loan relationship 250 1,667 Non-taxable overseas dividends (645,667) (906,517) Overseas tax 224,047 338,515 Tax chargeable in different periods 12,816 (18,712) Tax effect of offshore funds 189,404 26,410 UK dividends (2,256) (33,281) Unutilised excess management expenses 390,509 738,753 Current tax charge (note 5a) 224,047 338,515 c) Deferred tax At the year end there is a potential deferred tax asset of 7,902,393 (30.11.12: 7,494,406) in relation to surplus management expenses. It is unlikely that the Fund will generate sufficient taxable profits in the future to utilise this amount and, therefore, no deferred tax asset has been recognised in the current or prior period. 14 Melchior Investment Funds

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 6. FINANCE COSTS Distributions The distributions take account of revenue received on the issue of shares and revenue deducted on cancellations of shares, and comprise: Final 468,343 881,658 468,343 881,658 Add: Revenue deducted on cancellation of shares 101,410 286,808 Deduct: Revenue received on issues of shares (74,035) (105,531) Net distributions for the year 495,718 1,062,935 Interest 1,251 639,355 Total finance costs 496,969 1,702,290 Distributions represented by: Net revenue after taxation 43,223 608,034 Allocations to capital: Performance fees 5,948 - Revenue deficit 446,448 479,268 Tax relief on capital management fees - 91 452,396 479,359 Balance brought forward 4 12 Balance carried forward 95 (24,470)* Net distributions for the year 495,718 1,062,935 * The comparative Balanced carried forward figure includes the value of UK Opportunities Fund and Japan Opportunities Fund which terminated on 23 October 2013 and 31 July 2013 respectively. Melchior Investment Funds 15

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 7. DEBTORS Amounts receivable for issue of shares 117,676 60,589 Currency deals awaiting settlement 784,799 420,142 Sales awaiting settlement 2,481,954 3,870,857 Accrued revenue: UK dividends 683 650 Overseas dividends 471,653 950,233 472,336 950,883 Prepaid expenses 1,037 1,490 Taxation recoverable: Overseas withholding tax 2,759 2,279 PID tax - 717 2,759 2,996 Total Debtors 3,860,561 5,306,957 16 Melchior Investment Funds

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 8. CREDITORS Amounts payable on cancellation of shares 1,012,256 1,356,080 Currency deals awaiting settlement 776,607 415,480 Purchases awaiting settlement 1,958,969 3,695,116 Accrued expenses: Amounts payable to the ACD, associates of the ACD and agents of either of them: ACD's periodic charge 204,198 217,069 Amounts payable to the Depositary, associates of the Depositary and agents of either of them: Depositary's fees 5,950 7,405 Transaction charges 14,188 21,931 Safe custody and other bank charges 7,251 15,357 27,389 44,693 Other expenses: Administration fees 36,182 6,218 Bank interest - 611 FCA fee 81 - Fees paid to auditors - audit 46,530 87,061 German taxation fees 30,602 14,467 Insurance premiums 12,760 - Legal and professional fees 104,645 88,480 Performance fees 5,936 - Printing costs 2,288 5,240 Publication costs - 738 Registration fees - 22,945 239,024 225,760 Total creditors 4,218,443 5,954,198 Melchior Investment Funds 17

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 9. RELATED PARTY TRANSACTIONS Management Fees payable to Thesis Unit Trust Management Limited (the ACD) are disclosed in note 4 and amounts due at the year end are disclosed in notes 7 and 8. The aggregate monies received by the ACD through the issue of shares and paid on cancellation of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders on page 7. The amounts outstanding at the year end in respect of these monies are shown in notes 7 and 8. 10. SHAREHOLDERS FUNDS The sub-funds, the share classes and the ACD's periodic charges are as follows: A' B' C' D' I % % % % % Melchior Asian Opportunities Fund 2.15 1.65 1.75 1.25 0.85 Melchior Japan Advantage Fund* 2.15 1.65 1.50 1.00 0.85 Melchior Global Equity n/a 1.50 n/a n/a 0.25 Melchior North American Opportunities Fund* 2.15 1.65 1.50 0.80 1.00 All C and D shares are subject to the performance fee mechanism as described in the Prospectus. The net asset value per share class and the number of shares in each share class are given in the Comparative Tables of the sub-funds. * This includes GBP Hedged share classes. 11. CONTNGENT LIABILITIES AND COMMITMENTS Disclosure is made in note 11 of the Notes to the Financial Statements of the sub-funds. 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS In pursuing the investment objectives a number of financial instruments are held which may comprise securities and other investments, cash balances and debtors and creditors that arise directly from operations. Derivatives, such as futures or forward currency contracts, may be utilised for hedging purposes. The main risks from the Company s holding of financial instruments, together with the ACD s policy for managing these risks, are set out below: i Credit risk The Company will be exposed to counterparty risk on parties with whom it trades and will bear the risk of settlement default. The Company minimises concentrations of credit risk by undertaking transactions with a large number of counterparties on recognised and reputable exchanges. The Company only buys and sells investments through brokers which have been approved by the investment adviser as an acceptable counterparty and from recognised product providers. 18 Melchior Investment Funds

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS (continued) ii Interest rate risk Interest rate risk is the risk that the value of the Company s investments will fluctuate as a result of interest rate changes. The value of fixed interest securities may be affected by changes in the interest rate environment, either globally or locally. Changes in the rate of return in one asset class may influence the valuation basis of other classes. The amount of income receivable from floating rate securities and bank balances or payable on bank overdrafts will be affected by fluctuations in interest rates. Numerical disclosure of the interest rate risk profile is made in note 12 of the Notes to the Financial Statements of the sub-funds. iii Foreign currency risk The revenue and capital value of the sub-funds' investments can be significantly affected by foreign currency translation movements as the majority of each sub-funds' assets and revenue are denominated in currencies other than each sub-funds' functional currency. The managers have identified three principal areas where foreign currency risk could impact the sub-funds. These are, movement in exchange rates affecting the value of investments, short-term timing differences such as exposure to exchange rate movements during the period between when an investment purchase or sale is entered into and the date when settlement of the investment occurs, and finally movements in exchange rates affecting revenue received by the sub-fund. Revenue received in currencies different to the base currency of each sub-fund have been translated into the base currency of each sub-fund at the rates of exchange ruling on or near the date of receipt by the depositary. Numerical disclosure of the foreign currency risk profile is made in note 12 of the Notes to the Financial Statements of the sub-funds. iv. Liquidity risk The main liability of the Company is the cancellation of any shares that investors want to sell. Investments may have to be sold to fund such cancellations should insufficient cash be held at the bank to meet this obligation. To reduce liquidity risk the Investment Manager will ensure that a substantial portion of the Company s assets consist of readily realisable securities. v. Market price risk Market price risk is the risk that the value of the Company s financial instruments will fluctuate as a result of changes in market prices caused by factors other than interest rates or foreign currency movement. Market price risk arises primarily from uncertainty about the future prices of financial instruments that the Company holds. Market price risk represents the potential loss the Company may suffer through holding market positions in the face of price movements. The Company s investment portfolios are exposed to price fluctuations, which are monitored by the ACD in pursuance of the investment objectives and policies. For an equity portfolio the risk is generally regarded as consisting of two elements stock specific risk and market risk. Adherence to investment guidelines and avoidance of excessive exposure to one particular issuer can limit stock specific risk. Subject to compliance with the investment objective, spreading exposure across a broad range of global stocks can mitigate market risk. Melchior Investment Funds 19

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS (continued) vi. Counterparty risk Transactions in investments entered into by the Company give rise to exposure to the risk that the counterparties may not be able to fulfill their responsibility by completing their side of the transaction. The Investment Manager minimises this risk by conducting trades through only the most reputable counterparties. vii. Fair value of financial assets and financial liabilities There is no material difference between the value of the financial assets and liabilities, as shown in the balance sheet, and their fair value. viii. Sensitivity analysis Disclosure is made in note 12 of the Notes to the Financial Statements of the sub-funds. 13. PORTFOLIO TRANSACTION COSTS Disclosure is made in note 13 of the Notes to the Financial Statements of the sub-funds. 20 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND INVESTMENT MANAGER'S REPORT FOR THE YEAR ENDED 30 NOVEMBER 2013 Investment Objective and Policy The investment objective of the Melchior Asian Opportunities Fund is to achieve longer term capital growth, without undue risk, through diversified investment in equities that are issued by companies that have their registered office or carry out a predominant portion of their economic activity in Asia and which are expected to benefit from the economic growth of China and its neighboring countries. The Fund may invest in other collective investment schemes and cash. There may be times in light of adverse conditions when the manager will wish to hold positions in cash or near cash instruments. Investment Review The Melchior Asian Opportunities Fund s USD B share class rose by +14.07% between the end of November 2012 and the end of November 2013. This compares to a net return (with dividends reinvested) of 6.33% from the benchmark MSCI AC Far East Ex Japan Index ( MSEUCFFX ). Statistical data has been sourced from Bloomberg. The past twelve months saw investment markets shrug off the previous eighteen months of concern over the fiscal situation in the United States and in Europe, and by the sluggish economic growth of caused by the post- 2008 deleveraging of private and public debt. Developed equity markets posted a sprightly twelve month total return of 25% in Sterling terms. However, while inflation has remained quiescent, government bonds have declined. The total return in Sterling of the Citigroup World Government Bond Index was just shy of -5% over the twelve months under review. The key event of the period from a market perspective has been the anticipated timing and scale of a reduction ( tapering ) of the US Federal Reserve s bond purchasing programme. After a breath-taking first quarter for all asset classes (equities +15%; bonds +4%; commodities +7%), on May 1st the yield on the US 10 Year Treasury hit a low of 1.6%. Almost immediately investor speculation, fuelled by Chairman Bernanke s speech and the June FOMC press conference, focussed on the earlier prospect of interest rate rises and the consequences of a tighter policy. The resulting early summer jolt to all asset classes had a lingering effect on bond markets and emerging market equities, which both declined further for the rest of the period. In contrast, developed market equities pushed ever higher. Just after the period under review ended tapering duly arrived, but the prospect was so well digested that the impact was mildly positive. The stand out performer amongst equity markets was Japan. The strap line for the year was Buy Japan, Hedge the Yen. The Nikkei Index was up over 65% in Yen, but unhedged this was worth 30% in sterling terms. The period under review fitted neatly with the three arrows of new Prime Minister Abe s policies. Significant gains in Japanese equities had already been made when the new Bank of Japan Governor Kuroda took office in March and implemented a bigger than expected change in monetary policy, with the specific aim of getting inflation to 2% after years of deflation. Abe also announced economic stimulus packages and a plan to revitalize Japanese industrial competitiveness. The only hurdle on the horizon is the April 2014 increase in the consumption tax. European equity markets also signalled that investors anticipated recovery, ahead of clear evidence starting to emerge towards the period end. The UK has been surprising with positive economic growth in the second half of the year and equity returns picked up mid-year, shrugging off the drag from the travails of the major miners listed in the UK. Elsewhere on the continent some of the peripheral markets at the heart of the 2011/12 crisis Melchior Investment Funds 21

MELCHIOR ASIAN OPPORTUNITIES FUND INVESTMENT MANAGER'S REPORT (continued) Investment Review (continued) (Spain, Ireland, and Greece) have joined with Germany and France to post strong equity gains. Economic growth remains muted The Economist shows GDP growth of -0.4% for 2013 for the Euro area but has stabilized. Germany remains robust, Greece looks set to survive and the concerns over Cyprus have receded but political uncertainty overhangs Italy and there s little progress in addressing France s structural issues. The United States has been the solid engine of global equity returns, powered initially by housing market improvement and the decline in the federal deficit, and latterly by rock solid corporate profitability, lower energy costs as the shale gas benefits kick in. Political scares have produced bumps along the way, and the next year sees further deficit and debt limit hurdles to be negotiated. The strong equity gains have reflected multiple expansion rather than profit growth, and the challenge facing investors is whether corporate earnings will catch up. Finally, Emerging Markets have turned in a really poor twelve months, down 1% in Sterling but up 9% in local currency terms. China has been suffering as investors have adjusted to a slower rate of nominal GDP growth, currently about 7.7% according to The Economist. Credit growth, whilst also moderating, is still more than double the rate of GDP growth and the PBoC have been using various measures to tighten liquidity in the banking sector. Other Emerging Markets have been sensitive to slower Chinese growth, to tapering concerns and rises in US rates, particularly those countries with current account deficits and higher levels of inflation. However value opportunities are increasingly available in EM equities. Notable individual stock highlights were Tencent Holdings, Galaxy Entertainment Group, and Naver Corp, whilst poorly performing holdings included TPK Holding, Smartone Telecommunications and Hutchinson Telecomm Hong Kong. The largest individual purchases in the Fund were MTR Corp., Hong Kong Exchanges & Clear and Dorsett Hospitality International. The largest individual sales in the Fund were Hyundai Motor Co., Langham Hospitality Investment and Mediatek Inc. Top 5 Purchases and Sales Security Name (Purchases) Cost US$000 s US Treasury Bills 0.00% 18/07/2013 10,000 Hyundai Motor 2,763 Langham Hospitality Investments 2,490 Mediatek 2,413 Suprema 2,399 Security Name (Sales) Proceeds US$000 s US Treasury Bills 0.00% 18/07/2013 10,000 Cosmax 2,417 MTR 2,253 Hong Kong Exchanges & Clearing 2,108 Dorsett Hospitality International 1,918 DALTON CAPITAL (GUERNSEY) LIMITED Investment Manager 10 January 2014 22 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND COMPARATIVE TABLES Price and Income History USD A Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year US$ US$ US$ (cents) 2009 3.0615 1.4073-2010 3.5364 2.5057-2011 3.7357 2.4196-2012 3.4313 2.7161 1.4340 2013* 3.8915 3.3925 - USD B Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year US$ US$ US$ (cents) 2009 3.1286 1.4338-2010 3.6376 2.5681-2011 3.8542 2.4985-2012 3.5648 2.8082 2.4831 2013* 4.0516 3.5339 0.8137 USD C Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year US$ US$ US$ (cents) 2009** 3.0696 1.4065 - USD I Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year US$ US$ US$ (cents) 2009 3.0789 1.4062-2010 3.5929 2.5327-2011 3.8158 2.4763 1.5625 2012 3.5515 2.7871 3.8211 2013* 4.0503 3.5357 3.9887 * To 30 November 2013. ** To 30 November 2009. The USD D Accumulation share class was renamed USD I Accumulation on 1 January 2013. Melchior Investment Funds 23

MELCHIOR ASIAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Price and Income History (continued) GBP A Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 183.72 99.37-2010 223.03 170.48-2011 230.66 156.82-2012 213.32 175.42 0.5384 2013* 256.70 213.23 - GBP I Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 187.75 101.26-2010 229.14 174.40-2011 237.05 161.67-2012 221.52 181.28 1.2353 2013* 268.16 221.61 2.7595 GBP C Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 183.28 98.85-2010 223.43 170.21-2011 231.14 157.61-2012 214.21 176.49 1.3928 2013* 255.70 215.08 0.2448 * To 30 November 2013. The GBP B Accumulation share class was renamed GBP I Accumulation on 1 January 2013. 24 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Price and Income History (continued) GBP D Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 187.00 100.92-2010 229.15 173.80 0.0670 2011 237.14 162.29 0.6737 2012 222.36 182.08 2.3896 2013* 265.46 220.87 1.1498 EUR A Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year (cents) 2009 2.0449 1.1168-2010 2.6188 1.9384-2011 2.7638 1.8167-2012 2.6456 2.0946 1.2606 2013* 3.0241 2.5838 - EUR B Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year (cents) 2009 2.0952 1.1399-2010 2.6988 1.9893-2011 2.8494 1.8808-2012 2.7534 2.1712 2.0113 2013* 3.1542 2.6931 0.7573 EUR C Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year (cents) 2009** 2.0549 1.1185 - * To 30 November 2013. ** To 30 November 2009. Melchior Investment Funds 25

MELCHIOR ASIAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Price and Income History (continued) EUR D Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year (cents) 2009** 2.1064 1.1425 - ** To 30 November 2009. 26 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Net Asset Value Net Asset Net Asset Value Shares in Value Date Share Class US$ issue per share 30.11.11 USD 'A' 2,548,477 935,311 $2.72 USD 'B' 16,324,693 5,797,043 $2.82 USD 'D' 2,211,244 791,917 $2.79 GBP 'A' 30,209,314 11,070,704 175.39p GBP 'B' 2,360,956 837,671 181.16p GBP 'C' 29,336 10,690 176.39p GBP 'D' 243,608 86,144 181.77p EUR 'A' 32,658 12,000 2.0498 EUR 'B' 9,112,704 3,231,857 2.1237 30.11.12 USD 'A' 6,417,548 1,901,316 $3.38 USD 'B' 14,938,622 4,260,823 $3.51 USD 'I' 2,562,117 738,438 $3.47 GBP 'A' 28,154,462 8,326,530 210.89p GBP 'I' 1,208,322 344,246 218.92p GBP 'C' 36,291 10,697 211.60p GBP 'D' 200,043 56,807 219.63p EUR 'A' 69,944 20,729 2.5954 EUR 'B' 11,347,867 3,231,857 2.7009 30.11.13 USD 'A' 4,161,815 1,086,099 $3.83 USD 'B' 18,493,778 4,623,008 $4.00 USD 'I' 5,125,544 1,276,113 $4.02 GBP 'A' 26,086,046 6,795,412 235.09p GBP 'I' 7,086,556 1,755,277 247.25p GBP 'C' 41,878 10,905 235.18p GBP 'D' 156,261 39,017 245.27p EUR 'A' 45,971 12,000 2.8153 EUR 'B' 33,773,083 8,434,300 2.9427 Melchior Investment Funds 27

MELCHIOR ASIAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Price Per Share (Ex-distribution) Yield Date Share Class Price % 02.12.13 USD 'A' $3.8497 1.6 USD 'B' $4.0192 1.6 USD 'I' $4.0357 1.6 GBP 'A' 235.32p 1.6 GBP 'I' 247.50p 1.6 GBP 'C' 235.40p 1.6 GBP 'D' 245.51p 1.6 EUR 'A' 2.8414 1.6 EUR 'B' 2.9700 1.6 28 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Ongoing Charges Figure (OCF) 30.11.13 % A B C D I Ongoing charges figure 2.53 2.03 2.13 1.63 1.23 30.11.12 % A B C D I Ongoing charges figure 2.61 2.11 2.21 1.71 2.11 The Ongoing Charges Figure is the ratio of the Fund's total discloseable costs (excluding overdraft interest) to the average net assets of the Fund. Synthetic Risk and Reward Calculator Lower Risk Typically lower rewards Higher Risk Typically higher rewards 1 2 3 4 5 6 7 The SRRI table demonstrates where a Fund ranks in terms of risk and reward. The higher the risk the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the risk profile of the Fund. The shaded area on the table above shows the Fund's ranking on the risk and reward indicator. Melchior Investment Funds 29

MELCHIOR ASIAN OPPORTUNITIES FUND PORTFOLIO STATEMENT AS AT 30 NOVEMBER 2013 Total Net Assets Value Holding Portfolio of Investments US$ % % BERMUDA 2,972,000 Giordano International 2,576,164 2.71 800,000 Luk Food Holdings 2,951,287 3.11 1,670,400 Man Wah Holdings 2,749,328 2.89 1,563,000 Smartone Telecoms 1,743,936 1.84 143,100 VTech Holdings 1,908,603 2.01 TOTAL BERMUDA 11,929,318 12.56 10.19 CAYMAN ISLANDS 630,000 AAC Acoustic Technologies 2,852,352 3.00 1,458,000 Dorsett Hospitality International 304,669 0.32 4,242,000 Hutchison Telecommunication Hong Kong 1,619,637 1.71 4,352,000 Langham Hospitality Investments 2,155,637 2.27 3,192,000 SA International Holdings 3,713,854 3.91 382,000 Sands China 2,887,463 3.04 2,400,000 Sunny Optical Technology 2,262,997 2.38 77,600 Tencent Holdings 4,486,307 4.73 TOTAL CAYMAN ISLANDS 20,282,916 21.36 21.19 CHINA - - 2.47 HONG KONG 513,000 Aia 2,600,551 2.74 716,000 BOC 2,415,128 2.54 898,000 China Overseas Land & Investments 2,791,572 2.94 454,000 Galaxy Entertainment 3,545,890 3.73 2,250,000 Lenovo 2,664,285 2.81 518,000 Link Real Estate Investment Trust 2,535,695 2.67 232,800 Prada 2,246,156 2.37 930,900 Samsonite International 2,779,774 2.93 1,342,500 Techtronic Industries 3,593,253 3.78 TOTAL HONG KONG 25,172,304 26.51 35.00 SOUTH KOREA 11,726 Hyundai Motor 2,792,169 2.94 6,016 NHN 3,933,735 4.14 2,305 Samsung Electronics 3,251,785 3.42 75,400 SK Hynix 2,522,120 2.66 106,698 Suprema 2,177,716 2.29 TOTAL SOUTH KOREA 14,677,525 15.45 11.07 30 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Holding Portfolio of Investments US$ % % TAIWAN 1,159,010 Chicony Electronics 2,894,196 3.05 998,800 Hon Hai Precision Industries 2,629,132 2.77 72,000 Largan Precision 2,566,737 2.70 195,000 Mediatek 2,869,585 3.02 684,000 Merry Electronics 2,958,438 3.11 782,000 Scinopharm Taiwan 2,449,530 2.58 624,000 Taiwan Semiconductor Manufacturing 2,203,420 2.32 TOTAL TAIWAN 18,571,038 19.55 13.37 Portfolio of investments 90,633,101 95.43 93.29 Net other assets 4,337,828 4.57 6.71 Net assets 94,970,929 100.00 100.00 Percentage of Total Market Investments Value Portfolio of Investments US$ % % Equities 90,633,101 100.00 100.00 90,633,101 100.00 100.00 Melchior Investment Funds 31

MELCHIOR ASIAN OPPORTUNITIES FUND STATEMENT OF TOTAL RETURN FOR THE YEAR ENDED 30 NOVEMBER 2013 Notes US$ US$ US$ US$ Income Net capital gains 2 11,045,953 13,456,512 Revenue 3 2,021,794 1,888,196 Expenses 4 (1,792,614) (1,472,970) Finance costs: Interest 6 - (625) Net revenue before taxation 229,180 414,601 Taxation 5 (89,528) (75,491) Net revenue after taxation 139,652 339,110 Total return before distributions 11,185,605 13,795,622 Finance costs: Distributions 6 (255,368) (339,106) Change in net assets attributable to shareholders from investment activities 10,930,237 13,456,516 STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS FOR THE YEAR ENDED 30 NOVEMBER 2013 US$ US$ US$ US$ Opening net assets attributable to shareholders 64,935,217 63,072,990 Amounts receivable on issue of shares of share 30,687,494 9,789,463 Less: Amounts payable on cancellation of shares (11,837,319) (21,710,794) 18,850,175 (11,921,331) Stamp duty reserve tax - (203) Change in net assets attributable to shareholders (see Statement of Total Return above) 10,930,237 13,456,516 Retained distribution on Accumulation shares 255,300 327,245 Closing net assets attributable to shareholders 94,970,929 64,935,217 Notes 1 to 13 form part of these financial statements. 32 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND BALANCE SHEET AS AT 30 NOVEMBER 2013 Notes US$ US$ US$ US$ ASSETS Investment assets 90,633,101 60,579,069 Other assets Debtors 7 289,480 287,384 Cash and bank balances 4,645,098 4,508,476 Total other assets 4,934,578 4,795,860 Total assets 95,567,679 65,374,929 LIABILITIES Derivative liabilities - - Other liabilities Creditors 8 (504,884) (430,174) Bank overdrafts (91,866) (9,538) Total other liabilities (596,750) (439,712) Total liabilities (596,750) (439,712) Net assets attributable to shareholders 94,970,929 64,935,217 Notes 1 to 13 form part of these financial statements. Melchior Investment Funds 33

MELCHIOR ASIAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS AS AT 30 NOVEMBER 2013 1. ACCOUNTING POLICIES The Fund's Financial Statements have been prepared based on the Accounting Policies shown in the Aggregated Financial Statements. This Fund is reported in US dollars and is translated into sterling at the rate of 1.6329 for the purposes of aggregation. 2. NET CAPITAL GAINS US$ US$ Net capital gains during the year comprise: Non-derivative securities 10,925,269 13,439,084 Currency gains 134,116 41,533 Forward currency contracts - (1,429) Transaction charges (13,432) (22,676) Net gains 11,045,953 13,456,512 3. REVENUE US$ US$ Bank interest 3,376 2 Overseas dividends 2,018,418 1,890,669 UK dividends - (2,475) Total revenue 2,021,794 1,888,196 34 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 4. EXPENSES US$ US$ Payable to the ACD, associates of the ACD and agents of either of them: ACD's periodic charge 1,506,621 1,206,170 Payable to the Depositary, associates of the Depositary and agents of either of them: Depositary fees 36,675 30,408 Safe custody and other bank charges 43,166 44,216 79,841 74,624 Other expenses: Administration fees 40,554 39,665 Fees paid to auditors - audit 19,262 21,784 - tax services 9,302 11,206 FCA fee 241 89 German taxation fees expense 10,993 20,091 Insurance premiums 11,959 4,957 Legal and professional fees 98,777 (6,787) Performance fees 1,585 - Printing costs 4,125 889 Publication costs 1,615 294 Registration fees 7,739 99,988 206,152 192,176 Total expenses 1,792,614 1,472,970 Melchior Investment Funds 35

MELCHIOR ASIAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 5. TAXATION US$ US$ a) Analysis of charge for the year Corporation tax at 20% - - Overseas tax 89,528 75,491 Current tax charge (note 5b) 89,528 75,491 Deferred tax - origination and reversal of timing differences (note 5c) - - Total taxation 89,528 75,491 b) Factors affecting current tax charge for the year The tax assessed for the year differs from the standard rate of corporation tax in the UK for an authorised fund (20%) (30.11.12: 20%) for the reasons explained below. Net revenue before taxation 229,180 414,601 Corporation tax at 20% 45,836 82,920 Effects of: Expenses not deductable for tax purposes - 991 Non trade loan relationship - 125 Non-taxable overseas dividends (400,836) (356,081) Overseas tax 89,528 75,491 Tax chargeable in different periods (355) (19,586) UK dividends - 495 Unutilised excess management expenses 355,355 291,136 Current tax charge (note 5a) 89,528 75,491 c) Deferred tax At the year end there is a potential deferred tax asset of US$3,521,284 (30.11.12: US$3,165,929) in relation to surplus management expenses. It is unlikely that the Fund will generate sufficient taxable profits in the future to utilise this amount and, therefore, no deferred tax asset has been recognised in the current or prior period. 36 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 6. FINANCE COSTS Distributions The distributions take account of revenue received on the issue of shares and revenue deducted on cancellations of shares, and comprise: US$ US$ Final 255,300 327,245 255,300 327,245 Add: Revenue deducted on cancellation of shares 8,862 12,809 Deduct: Revenue received on issues of shares (8,794) (948) Net distributions for the year 255,368 339,106 Interest - 625 Total finance costs 255,368 339,731 Distributions represented by: Net revenue after taxation 139,652 339,110 Allocations to capital: Performance fees 1,584 - Revenue deficit 114,130 - Balance brought forward 5 1 Balance carried forward (3) (5) Net distributions for the year 255,368 339,106 7. DEBTORS US$ US$ Amounts receivable for issue of shares 28,834 30,018 Currency deals awaiting settlement 89,810 88,250 Accrued revenue: Overseas dividends 169,235 167,461 169,235 167,461 Prepaid expenses 704 1,655 Taxation recoverable: Overseas withholding tax 897-897 - Total Debtors 289,480 287,384 Melchior Investment Funds 37

MELCHIOR ASIAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 8. CREDITORS US$ US$ Amounts payable on cancellation of shares 99,438 121,905 Currency deals awaiting settlement 89,381 88,094 Accrued expenses: Amounts payable to the ACD, associates of the ACD and agents of either of them: ACD's periodic charge 136,862 99,540 Amounts payable to the Depositary, associates of the Depositary and agents of either of them: Depositary's fees 2,920 2,500 Transaction charges 138 2,108 Safe custody and other bank charges 8,019 11,469 11,077 16,077 Other expenses: Administration fees 34,498 9,969 Fees paid to auditors - audit 19,300 19,392 German taxation fees 42,151 23,196 Insurance premium 4,606 - Legal and professional fees 65,407 42,685 Performance fees 1,565 - Printing costs 599 672 Publication costs - 875 Registration fees - 7,769 168,126 104,558 Total creditors 504,884 430,174 9. RELATED PARTY TRANSACTIONS Disclosure is made in note 9 of the Notes to the Aggregated Financial Statements. 10. SHAREHOLDERS FUNDS Disclosure is made in note 10 of the Notes to the Aggregated Financial Statements. 11. CONTNGENT LIABILITIES AND COMMITMENTS There are no contingent liabilities or outstanding commitments at the year end (30.11.12: Nil). 38 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS In pursuing the investment objectives a number of financial instruments are held which may comprise The main risks from the Fund s holding of financial instruments, together with the ACD s policy for managing these risks, are disclosed in note 12 of the Notes to the Aggregated Financial Statements. i The table below shows the interest rate risk profile: Interest rate risk US$ US$ Floating rate assets: Euro 92,985 4,076 Hong Kong dollar 629 629 Pounds sterling 303,199 393,276 Taiwan dollar 164,473 1,473,566 US dollar 4,083,812 2,636,929 4,645,098 4,508,476 Floating rate liabilities: Euro (85,120) - Pounds sterling (6,746) - US dollar - (9,538) (91,866) (9,538) Assets on which interest is not paid: Hong Kong dollar 57,554,670 42,446,409 Pounds sterling 89,810 40,150 South Korean won 14,677,526 7,183,127 Taiwan dollar 18,571,037 11,116,994 US dollar 29,538 79,773 90,922,581 60,866,453 Liabilities on which interest is not paid: Pounds sterling - (268,245) US dollar (504,884) (161,929) (504,884) (430,174) Net assets 94,970,929 64,935,217 The floating rate financial assets and liabilities comprise bank balances and overdrafts which earn or pay interest at rates linked to UK LIBOR or its international equivalents. There are no material amounts of non-interest bearing financial assets and liabilities other than equities, which do not have maturity dates. Melchior Investment Funds 39

MELCHIOR ASIAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS (continued) ii Foreign currency risk The table below shows the foreign currency risk profile: US$ US$ Currency: Euro 7,865 4,076 Hong Kong dollar 57,555,299 42,447,038 Pounds sterling (406) 165,181 South Korean won 14,677,526 7,183,127 Taiwan dollar 18,735,510 12,590,560 90,975,794 62,389,982 US dollar 3,995,135 2,545,234 Net assets 94,970,929 64,935,216 iii Sensitivity analysis There were no derivatives of a material nature held by the Fund during the current or prior year. 13. PORTFOLIO TRANSACTION COSTS US$ US$ Analysis of total purchase costs Purchases in period before transaction costs 54,667,024 46,432,071 Transaction costs: Commissions 79,390 79,997 Stamp duty and other charges 19,075 17,593 98,465 97,590 Gross purchase total 54,765,489 46,529,661 Analysis of total sale costs Gross sales before transaction costs 35,732,929 57,663,509 Transaction costs: Commissions (43,743) (102,860) Other charges (52,445) (87,709) (96,188) (190,569) Total sales net of transaction costs 35,636,741 57,472,940 40 Melchior Investment Funds

MELCHIOR ASIAN OPPORTUNITIES FUND DISTRIBUTION TABLES FOR THE YEAR ENDED 30 NOVEMBER 2013 - IN CURRENCY PER SHARE No dividend was paid at the interim. Final Group 1 - Shares purchased prior to 1 June 2013 Group 2 - Shares purchased on or after 1 June 2013 and on or before 30 November 2013 GBP A Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 - - - 0.5384 Group 2 - - - 0.5384 GBP C Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 0.2448-0.2448 1.3928 Group 2 0.2448-0.2448 1.3928 GBP D Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 1.1498-1.1498 2.3896 Group 2 1.1498-1.1498 2.3896 GBP I Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 2.7595-2.7595 1.2353 Group 2 2.7595-2.7595 1.2353 USD A Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share US$ (cents) US$ (cents) US$ (cents) US$ (cents) Group 1 - - - 1.4340 Group 2 - - - 1.4340 Melchior Investment Funds 41

MELCHIOR ASIAN OPPORTUNITIES FUND DISTRIBUTION TABLE (continued) FOR THE YEAR ENDED 30 NOVEMBER 2013 - IN CURRENCY PER SHARE Final (continued) Group 1 - Shares purchased prior to 1 June 2013 Group 2 - Shares purchased on or after 1 June 2013 and on or before 30 November 2013 USD B Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share US$ (cents) US$ (cents) US$ (cents) US$ (cents) Group 1 0.8137-0.8137 2.4831 Group 2 0.8137-0.8137 2.4831 USD I Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share US$ (cents) US$ (cents) US$ (cents) US$ (cents) Group 1 3.9887-3.9887 3.8211 Group 2 0.0869 3.9018 3.9887 3.8211 EUR A Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share (cents) (cents) (cents) (cents) Group 1 - - - 1.2606 Group 2 - - - 1.2606 EUR B Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share (cents) (cents) (cents) (cents) Group 1 0.7573-0.7573 2.0113 Group 2 0.7266 0.0307 0.7573 2.0113 Equalisation Equalisation applies only to shares purchased during the distribution period (Group 2 shares). It represents the accrued income included in the purchase price of the shares. After averaging it is returned with the distribution as a capital repayment. It is not liable to Income Tax but must be deducted from the cost of the shares for Capital Gains Tax purposes. 42 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND INVESTMENT MANAGER'S REPORT FOR THE YEAR ENDED 30 NOVEMBER 2013 Investment Objective and Policy The investment objective of the Melchior Global Equity Fund is to achieve longer term capital growth, without undue risk, through diversified investment in listed equities. In addition, the Fund may invest in other collective investment schemes and cash. There may be times in light of adverse conditions when the manager may wish to hold positions in cash or near cash instruments. Investment Review The Melchior Global Equity Fund s GBP B share class rose by 28.71% between the end of November 2012 and the end of November 2013. This compares to a net return (with dividends reinvested) of 21.61% from the benchmark MSCI All Country World Index ( ACWI ). Statistical data has been sourced from Bloomberg. The past twelve months saw investment markets shrug off the previous eighteen months of concern over the fiscal situation in the United States and in Europe, and by the sluggish economic growth of caused by the post- 2008 deleveraging of private and public debt. Developed equity markets posted a sprightly twelve month total return of 25% in Sterling terms. However, while inflation has remained quiescent, government bonds have declined. The total return in Sterling of the Citigroup World Government Bond Index was just shy of -5% over the twelve months under review. The key event of the period from a market perspective has been the anticipated timing and scale of a reduction ( tapering ) of the US Federal Reserve s bond purchasing programme. After a breath-taking first quarter for all asset classes (equities +15%; bonds +4%; commodities +7%), on May 1st the yield on the US 10 Year Treasury hit a low of 1.6%. Almost immediately investor speculation, fuelled by Chairman Bernanke s speech and the June FOMC press conference, focussed on the earlier prospect of interest rate rises and the consequences of a tighter policy. The resulting early summer jolt to all asset classes had a lingering effect on bond markets and emerging market equities, which both declined further for the rest of the period. In contrast, developed market equities pushed ever higher. Just after the period under review ended tapering duly arrived, but the prospect was so well digested that the impact was mildly positive. The stand out performer amongst equity markets was Japan. The strap line for the year was Buy Japan, Hedge the Yen. The Nikkei Index was up over 65% in Yen, but unhedged this was worth 30% in sterling terms. The period under review fitted neatly with the three arrows of new Prime Minister Abe s policies. Significant gains in Japanese equities had already been made when the new Bank of Japan Governor Kuroda took office in March and implemented a bigger than expected change in monetary policy, with the specific aim of getting inflation to 2% after years of deflation. Abe also announced economic stimulus packages and a plan to revitalize Japanese industrial competitiveness. The only hurdle on the horizon is the April 2014 increase in the consumption tax. European equity markets also signalled that investors anticipated recovery, ahead of clear evidence starting to emerge towards the period end. The UK has been surprising with positive economic growth in the second half of the year and equity returns picked up mid-year, shrugging off the drag from the travails of the major miners listed in the UK. Elsewhere on the continent some of the peripheral markets at the heart of the 2011/12 crisis (Spain, Ireland, and Greece) have joined with Germany and France to post strong equity gains. Economic growth remains muted The Economist shows GDP growth of -0.4% for 2013 for the Euro area but has stabilized. Germany remains robust, Greece looks set to survive and the concerns over Cyprus have receded but political uncertainty overhangs Italy and there s little progress in addressing France s structural issues. Melchior Investment Funds 43

MELCHIOR GLOBAL EQUITY FUND INVESTMENT MANAGER'S REPORT (continued) Investment Review (continued) The United States has been the solid engine of global equity returns, powered initially by housing market improvement and the decline in the federal deficit, and latterly by rock solid corporate profitability, lower energy costs as the shale gas benefits kick in. Political scares have produced bumps along the way, and the next year sees further deficit and debt limit hurdles to be negotiated. The strong equity gains have reflected multiple expansion rather than profit growth, and the challenge facing investors is whether corporate earnings will catch up. Finally, Emerging Markets have turned in a really poor twelve months, down 1% in Sterling but up 9% in local currency terms. China has been suffering as investors have adjusted to a slower rate of nominal GDP growth, currently about 7.7% according to The Economist. Credit growth, whilst also moderating, is still more than double the rate of GDP growth and the PBoC have been using various measures to tighten liquidity in the banking sector. Other Emerging Markets have been sensitive to slower Chinese growth, to tapering concerns and rises in US rates, particularly those countries with current account deficits and higher levels of inflation. However value opportunities are increasingly available in EM equities. Notable individual stock highlights were Great Wall Motor Co., Usana Health Sciences Inc. and Nu Skin Enterprises Inc., whilst poorly performing holdings included TPK Holding Co., Koza Altin Isletmeleri Co. and Enplas Corp. The largest individual purchases in the Fund were Usana Health Sciences Inc., Netspend Holdings Inc and Kuka. The largest individual sales in the Fund were Axa, Visa Inc. and Largan Precision. Top 5 Purchases and Sales Security Name (Purchases) Cost 000 s Largan Precision 71 Citigroup 70 Oracle 67 Visa 'A' 62 Axa 60 Security Name (Sales) Proceeds 000 s Usana Health Sciences 93 Netspend 83 Kuka 76 National Financial Partners 75 Regeneron Pharmaceuticals 74 DALTON CAPITAL (GUERNSEY) LIMITED Investment Manager 10 January 2014 44 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND COMPARATIVE TABLES Price and Income History GBP B Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2011** 112.91 100.80 0.2330 2012 121.50 108.20 0.9584 2013* 155.12 121.02 - GBP I Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2010*** 120.67 95.81 0.1290 2011 132.20 100.80 0.8857 2012 121.50 108.20 1.0736 2013* 156.48 121.26 - * To 30 November 2013. ** From 30 November 2011. *** From 2 August 2010. The GBP A Accumulation share class was renamed GBP B Accumulation, and GBP B Accumulation shares was renamed GBP I Accumulation shares on 1 January 2013. Melchior Investment Funds 45

MELCHIOR GLOBAL EQUITY FUND COMPARATIVE TABLES (continued) Net Asset Value Net Asset Net Asset Value Shares in Value Date Share Class issue per share 30.11.11 GBP 'A' 9,840 9,318 105.60p GBP 'B' 6,207,560 5,878,340 105.60p 30.11.12 GBP 'B' 11,301 9,318 121.28p GBP 'I' 5,944,028 4,895,061 121.43p 30.11.13 GBP 'B' 17,741 11,501 154.26p GBP 'I' 5,256,506 3,377,360 155.64p Price Per Share (Ex-distribution) Yield Date Share Class Price % 02.12.13 GBP B 151.84 1.6 GBP I 153.63 1.6 46 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND COMPARATIVE TABLES (continued) Ongoing Charges Figure (OCF) 30.11.13 % B I Ongoing charges figure 2.90 1.65 30.11.12 % B I Ongoing charges figure 2.08 1.33 The Ongoing Charges Figure is the ratio of the Fund's total discloseable costs (excluding overdraft interest) to the average net assets of the Fund. Synthetic Risk and Reward Calculator Lower Risk Typically lower rewards Higher Risk Typically higher rewards 1 2 3 4 5 6 7 The SRRI table demonstrates where a Fund ranks in terms of risk and reward. The higher the risk the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the risk profile of the Fund. The shaded area on the table above shows the Fund's ranking on the risk and reward indicator. Melchior Investment Funds 47

MELCHIOR GLOBAL EQUITY FUND PORTFOLIO STATEMENT AS AT 30 NOVEMBER 2013 Total Net Assets Value Holding Portfolio of Investments % % AUSTRALIA - - 0.83 BELGIUM - - 0.49 BERMUDA 30,000 Haier Electronics 43,028 0.82 0.55 BRAZIL - - 0.91 CANADA 1,044 Magna International 51,688 0.98 1,000 Valeant Pharmaceuticals International 65,777 1.25 TOTAL CANADA 117,465 2.23 0.42 CAYMAN ISLANDS 19,000 Aac Technologies 52,556 1.00 9,000 Giant Interactive ADR 61,586 1.17 100,000 Ju Teng International 40,901 0.77 80,000 Nagacorp 44,951 0.85 TOTAL CAYMAN ISLANDS 199,994 3.79 4.82 CHANNEL ISLANDS 2,000 Shire 55,440 1.05 - CHINA 170,000 Bank of China 'H' 50,239 0.95 60,000 China Communications Services 'H' 24,068 0.46 20,800 Great Wall Automobile 77,533 1.47 TOTAL CHINA 151,840 2.88 1.72 DENMARK 2,174 Pandora 68,894 1.30 - FINLAND - - 0.50 FRANCE 4,000 Axa 64,052 1.21 1,000 Ingenico 45,669 0.87 1,679 Ipsen 48,272 0.92 18,634 Technicolor 57,712 1.09 48 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Holding Portfolio of Investments % % FRANCE (continued) 394 Zodiac Aerospace 40,780 0.77 TOTAL FRANCE 256,485 4.86 0.94 GERMANY 600 Continental 76,424 1.45 3,487 Freenet 60,571 1.15 TOTAL GERMANY 136,995 2.60 6.39 HONG KONG 10,000 Galaxy Entertainment Group 47,717 0.91 - ISRAEL - - 0.76 IRELAND 270,000 The Governor and Company of the Bank of Ireland 63,894 1.21 - JAPAN 16,000 Calsonic Kansei 49,049 0.93 3,000 Daiichikosho 53,677 1.02 1,000 Enplas 40,139 0.76 1,000 Hitachi Capital 17,594 0.33 1,600 KDDI 61,264 1.16 2,000 Nihon Kohden 45,328 0.86 500 Nuflare Technology 37,783 0.72 3,800 Shionogi & Co 51,016 0.97 6,000 Showa 54,858 1.04 TOTAL JAPAN 410,708 7.79 10.94 LUXEMBOURG - - 0.94 NETHERLANDS 1,250 Chicago Bridge & Iron 58,523 1.11 - NORWAY - - 1.19 PANAMA 300 Copa Holdings 'A' 27,730 0.53 - Melchior Investment Funds 49

MELCHIOR GLOBAL EQUITY FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Holding Portfolio of Investments % % POLAND - - 0.83 SINGAPORE - - 1.08 SOUTH KOREA 2,000 CJ E&M 35,736 0.68 400 GS Home Shopping 65,259 1.24 3,500 Partron 32,531 0.62 70 Samsung Electronics 60,335 1.14 481 SK Telecom 62,757 1.19 TOTAL SOUTH KOREA 256,618 4.87 3.23 SWITZERLAND 1,446 Actelion 73,605 1.39 300 Bucher Industries 50,019 0.95 450 Swiss Life 56,917 1.08 450 Swiss Life (Rights) - - TOTAL SWITZERLAND 180,541 3.42 2.09 TAIWAN 18,000 Advantech 67,819 1.28 15,000 Grape King Industrial 46,761 0.89 3,000 Largan Precision 65,341 1.24 25,000 Lite-On 24,800 0.47 TOTAL TAIWAN 204,721 3.88 5.98 THAILAND - - 0.78 TURKEY - - 2.48 UNITED KINGDOM 15,000 Barratt Developments 49,365 0.93 1,500 Berkeley 35,310 0.67 3,000 London Stock Exchange Group 48,780 0.92 5,538 Micro Focus International 45,190 0.86 5,500 Mondi 55,275 1.05 20,002 Pace 63,166 1.20 1,300 Rotork 36,907 0.70 1,600 Spectris 38,928 0.74 12,000 William Hill 46,272 0.88 TOTAL UNITED KINGDOM 419,193 7.95 7.57 50 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Holding Portfolio of Investments % % UNITED STATES CHEMICALS 800 Westlake Chemical 55,016 1.04 2.55 FINANCIAL SERVICES 2,000 Citigroup 64,665 1.22 1,000 Discover Financial Services 32,558 0.62 9,000 Fortress Investment Group 'A' 44,210 0.84 130 Mastercard 60,334 1.14 580 Visa 'A' 72,187 1.37 TOTAL FINANCIAL SERVICES 273,954 5.19 5.14 FOOD & BEVERAGE - - 1.07 HEATLHCARE 2,000 Carefusion 48,694 0.92 600 Celgene 59,302 1.12 1,250 Cigna 66,786 1.27 1,000 Gilead Sciences 45,700 0.87 500 McKesson 50,640 0.96 800 Mednax 54,151 1.03 700 Nu Skin Enterprises 54,657 1.04 1,100 United Therapeutics 62,038 1.17 TOTAL HEATLHCARE 441,968 8.38 4.88 INDUSTRIAL GOODS & SERVICES 2,000 Deluxe 60,693 1.15 800 Fleetcor Technologies 59,498 1.13 1,200 Idex 52,274 0.99 1,600 Huron Consulting Group 58,086 1.10 2,500 On Assignment 51,978 0.99 700 Snap-On 45,406 0.86 TOTAL INDUSTRIAL GOODS & SERVICES 327,935 6.22 5.65 INSURANCE 453 Middleby 60,994 1.16 2,200 AIG 66,857 1.27 1,600 Allstate 53,051 1.00 2,254 Lincoln National 70,688 1.34 2,219 Protective Life 65,021 1.23 TOTAL INSURANCE 316,611 6.00 3.15 Melchior Investment Funds 51

MELCHIOR GLOBAL EQUITY FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Holding Portfolio of Investments % % MARKETING 450 Alliance Data Systems 66,606 1.26 1.88 MEDIA 1,200 AMC Networks 'A' 47,054 0.89 - OIL & GAS 1,750 Halliburton 56,325 1.07 1,200 SM Energy 64,613 1.22 1,200 Whiting Petroleum 44,276 0.84 TOTAL OIL & GAS 165,214 3.13 3.52 PERSONAL & HOUSEHOLD GOODS 2,400 Iconix Brand Group 58,140 1.10 1,000 Jarden 34,361 0.65 3,000 Prestige Brands 64,555 1.23 6,200 Smith & Wesson 44,736 0.85 TOTAL PERSONAL & HOUSEHOLD GOODS 201,792 3.83 1.94 TECHNOLOGY 2,000 Ametek 60,119 1.14 270 Apple 91,730 1.74 1,400 Generac Holdings 45,530 0.86 1,700 Henry Jack & Associates 58,943 1.12 1,500 Intel 21,830 0.41 3,500 Mentor Graphics 48,156 0.91 2,200 Microsoft 51,252 0.97 2,000 Netapp 50,405 0.95 70 priceline.com 50,993 0.97 650 Roper Industries 51,492 0.98 1,600 Ss&C Technologies Holdings 42,093 0.80 1,800 Wabtec 75,849 1.44 TOTAL TECHNOLOGY 648,392 12.29 12.96 TELECOMMUNICATIONS 1,573 Neustar 'A' 46,842 0.89 0.67 TOTAL UNITED STATES 2,591,384 49.12 43.41 52 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Portfolio of Investments % % Portfolio of investments 5,291,170 100.32 98.85 Net other liabilities (16,922) (0.32) 1.15 Net assets 5,274,248 100.00 100.00 Percentage of Total Market Investments Value Portfolio of Investments % % Equities 5,291,170 100.00 100.00 5,291,170 100.00 100.00 Melchior Investment Funds 53

MELCHIOR GLOBAL EQUITY FUND STATEMENT OF TOTAL RETURN FOR THE YEAR ENDED 30 NOVEMBER 2013 Notes Income Net capital gains 2 1,254,159 843,080 Revenue 3 86,502 107,181 Expenses 4 (143,322) (42,328) Finance costs: Interest 6 (126) (315) Net (expense)/revenue before taxation (56,946) 64,538 Taxation 5 (8,839) (11,853) Net (expense)/revenue after taxation (65,785) 52,685 Total return before distributions 1,188,374 895,765 Finance costs: Distributions 6 (81) (52,690) Change in net assets attributable to shareholders from investment activities 1,188,293 843,075 STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS FOR THE YEAR ENDED 30 NOVEMBER 2013 Opening net assets attributable to shareholders 5,955,329 6,217,400 Amounts receivable on issue of shares of share 94,896 730,747 Less: Amounts payable on cancellation of shares (1,966,668) (1,892,224) (1,871,772) (1,161,477) Dilution levy charged 2,399 4,357 Stamp duty reserve tax (1) (669) Change in net assets attributable to shareholders (see Statement of Total Return above) 1,188,293 843,075 Retained distribution on Accumulation shares - 52,643 Closing net assets attributable to shareholders 5,274,248 5,955,329 Notes 1 to 13 form part of these financial statements. 54 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND BALANCE SHEET AS AT 30 NOVEMBER 2013 Notes ASSETS Investment assets 5,291,170 5,887,008 Other assets Debtors 7 6,729 1,065,921 Cash and bank balances 50,000 157,609 Total other assets 56,729 1,223,530 Total assets 5,347,899 7,110,538 LIABILITIES Derivative liabilities - - Other liabilities Creditors 8 (55,938) (1,046,825) Bank overdrafts (17,713) (108,384) Total other liabilities (73,651) (1,155,209) Total liabilities (73,651) (1,155,209) Net assets attributable to shareholders 5,274,248 5,955,329 Notes 1 to 13 form part of these financial statements. Melchior Investment Funds 55

MELCHIOR GLOBAL EQUITY FUND NOTES TO THE FINANCIAL STATEMENTS AS AT 30 NOVEMBER 2013 1. ACCOUNTING POLICIES The Fund's Financial Statements have been prepared based on the Accounting Policies shown in the Aggregated Financial Statements. 2. NET CAPITAL GAINS Net capital gains during the year comprise: Non-derivative securities 1,268,278 854,421 Currency (losses)/gains (5,238) 4,886 Forward currency contracts 125 (5,878) Transaction charges (9,006) (10,349) Net gains 1,254,159 843,080 3. REVENUE Bank interest - 438 Overseas dividends 75,223 93,888 UK dividends 11,279 12,855 Total revenue 86,502 107,181 56 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 4. EXPENSES Payable to the ACD, associates of the ACD and agents of either of them: ACD's periodic charge 82,953 18,442 Payable to the Depositary, associates of the Depositary and agents of either of them: Depositary fees 9,125 9,037 Safe custody and other bank charges 1,055 887 10,180 9,924 Other expenses: Fees paid to auditors - audit 12,534 13,200 FCA fee 290 168 Insurance premiums 8,050 3,100 Legal and professional fees 25,338 15,663 Printing costs 3,977 512 Registration fees - (18,681) 50,189 13,962 Total expenses 143,322 42,328 Melchior Investment Funds 57

MELCHIOR GLOBAL EQUITY FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 5. TAXATION a) Analysis of charge for the year Corporation tax at 20% - - Overseas tax 8,839 11,853 Current tax charge (note 5b) 8,839 11,853 Deferred tax - origination and reversal of timing differences (note 5c) - - Total taxation 8,839 11,853 b) Factors affecting current tax charge for the year The tax assessed for the year differs from the standard rate of corporation tax in the UK for an authorised fund (20%) (30.11.12: 20%) for the reasons explained below. Net expense before taxation (56,946) 64,538 Corporation tax at 20% (11,389) 12,908 Effects of: DTR expensed (23) - Expenses not deductable for tax purposes 1,610 619 Non trade loan relationship 25 - Non-taxable overseas dividends (15,899) (18,389) Overseas tax 8,838 11,853 Tax chargeable in different periods 1,013 (388) UK dividends (2,256) (2,571) Unutilised excess management expenses 26,920 7,821 Current tax charge (note 5a) 8,839 11,853 c) Deferred tax At the year end there is a potential deferred tax asset of 52,210 (30.11.12: 25,290) in relation to surplus management expenses. It is unlikely that the Fund will generate sufficient taxable profits in the future to utilise this amount and, therefore, no deferred tax asset has been recognised in the current or prior period. 58 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 6. FINANCE COSTS Distributions The distributions take account of revenue received on the issue of shares and revenue deducted on cancellations of shares, and comprise: Final - 52,643-52,643 Add: Revenue deducted on cancellation of shares 81 824 Deduct: Revenue received on issues of shares - (777) Net distributions for the year 81 52,690 Interest 126 315 Total finance costs 207 53,005 Distributions represented by: Net (expense)/revenue after taxation (65,785) 52,685 Allocations to capital: Revenue deficit 65,865 - Balance brought forward 1 6 Balance carried forward - (1) Net distributions for the year 81 52,690 7. DEBTORS Amounts receivable for issue of shares - 1,054,757 Accrued revenue: UK dividends 683 650 Overseas dividends 4,052 8,426 4,735 9,076 Prepaid expenses - 201 Taxation recoverable: Overseas withholding tax 1,994 1,887 1,994 1,887 Total Debtors 6,729 1,065,921 Melchior Investment Funds 59

MELCHIOR GLOBAL EQUITY FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 8. CREDITORS Purchases awaiting settlement - 1,023,967 Accrued expenses: Amounts payable to the ACD, associates of the ACD and agents of either of them: ACD's periodic charge 24,922 1,844 Amounts payable to the Depositary, associates of the Depositary and agents of either of them: Depositary's fees 902 773 Transaction charges 270 2,532 Safe custody and other bank charges 169 431 1,341 3,736 Other expenses: Fees paid to auditors - audit 12,234 12,000 FCA fee 81 - Insurance premium 3,089 - Legal and professional fees 13,114 4,894 Printing costs 1,157 384 29,675 17,278 Total creditors 55,938 1,046,825 9. RELATED PARTY TRANSACTIONS Disclosure is made in note 9 of the Notes to the Aggregated Financial Statements. 10. SHAREHOLDERS FUNDS Disclosure is made in note 10 of the Notes to the Aggregated Financial Statements. 11. CONTNGENT LIABILITIES AND COMMITMENTS There are no contingent liabilities or outstanding commitments at the year end (30.11.12: Nil). 60 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS The main risks from the Fund s holding of financial instruments, together with the ACD s policy for managing these risks, are disclosed in note 12 of the Notes to the Aggregated Financial Statements. i The table below shows the interest rate risk profile: Interest rate risk Floating rate assets: Euro - 4,866 Hong Kong dollar 552 - Pounds sterling 47,873 89,209 South Korean won 5 - Taiwan dollar 52 61,947 US dollar 1,518 1,023 50,000 157,045 Floating rate liabilities: Hong Kong dollar (552) - Pounds sterling (17,156) (107,820) South Korean won (5) - (17,713) (107,820) Melchior Investment Funds 61

MELCHIOR GLOBAL EQUITY FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS i Interest rate risk (continued) Assets on which interest is not paid: Australian dollar - 49,231 Brazilian real - 54,186 Canadian dollar 117,464 25,248 Danish kroner 69,054 - Euro 459,204 497,558 Hong Kong dollar 380,993 389,434 Japanese yen 410,708 654,277 Norwegian krone - 70,760 Polish zloty - 49,416 Pounds sterling 479,369 1,506,512 Singapore dollar - 64,147 South Korean won 256,618 192,495 Swiss franc 180,541 124,619 Thai baht - 46,548 Turkey lira - 148,038 Taiwan dollar 204,721 356,074 US dollar 2,739,227 2,724,386 5,297,899 6,952,929 Liabilities on which interest is not paid: Pounds sterling (55,938) (1,046,825) (55,938) (1,046,825) Net assets 5,274,248 5,955,329 The floating rate financial assets and liabilities comprise bank balances and overdrafts which earn or pay interest at rates linked to UK LIBOR or its international equivalents. There are no material amounts of non-interest bearing financial assets and liabilities other than equities, which do not have maturity dates. 62 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS (continued) ii Foreign currency risk The table below shows the foreign currency risk profile: Currency: Australian dollar - 49,231 Brazilian real - 54,186 Canadian dollar 117,464 25,248 Danish kroner 69,054 - Euro 459,204 502,424 Hong Kong dollar 380,993 389,434 Japanese yen 410,708 654,277 Norwegian krone - 70,760 Pounds sterling 454,148 413,814 Polish zloty - 49,416 Singapore dollar - 64,147 South Korean won 256,618 - Swedish krona - 192,495 Swiss franc 180,541 124,619 Thai baht - 46,548 Turkey lira - 148,038 Taiwan dollar 204,773 445,283 US dollar 2,740,745 2,725,409 Net assets 5,274,248 5,955,329 iii Sensitivity analysis There were no derivatives of a material nature held by the Fund during the current or prior year. Melchior Investment Funds 63

MELCHIOR GLOBAL EQUITY FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 13. PORTFOLIO TRANSACTION COSTS Analysis of total purchase costs Purchases in period before transaction costs 3,599,490 7,007,615 Transaction costs: Commissions 1,446 9,649 Stamp duty and other charges 1,727 1,537 3,173 11,186 Gross purchase total 3,602,663 7,018,801 Analysis of total sale costs Gross sales before transaction costs 5,470,465 8,074,837 Transaction costs: Commissions (3,578) (10,052) Other charges (109) (871) (3,687) (10,923) Total sales net of transaction costs 5,466,778 8,063,914 64 Melchior Investment Funds

MELCHIOR GLOBAL EQUITY FUND DISTRIBUTION TABLES FOR THE YEAR ENDED 30 NOVEMBER 2013 - IN CURRENCY PER SHARE No dividend was paid at the interim. Final Group 1 - Shares purchased prior to 1 June 2013 Group 2 - Shares purchased on or after 1 June 2013 and on or before 30 November 2013 GBP B Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 - - - 0.9584 Group 2 - - - 0.9584 GBP I Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 - - - 1.0736 Group 2 - - - 1.0736 Equalisation Equalisation applies only to shares purchased during the distribution period (Group 2 shares). It represents the accrued income included in the purchase price of the shares. After averaging it is returned with the distribution as a capital repayment. It is not liable to Income Tax but must be deducted from the cost of the shares for Capital Gains Tax purposes. Melchior Investment Funds 65

MELCHIOR JAPAN ADVANTAGE FUND INVESTMENT MANAGER'S REPORT FOR THE YEAR ENDED 30 NOVEMBER 2013 Investment Objective and Policy The investment objective of the Melchior Japan Advantage Fund is to achieve longer term capital growth, without undue risk, through diversified investment in equities and bonds that are issued by companies that have their registered office or carry out a predominant portion of their economic activity in Japan. Equally the Fund also invests in other collective investment schemes and cash. There may be times in light of adverse conditions when the manager will wish to hold positions in cash or near cash instruments. The Fund will generally employ a value oriented approach to stock selection. The emphasis is on stocks with relatively lower price/earnings ratios. Investment Review The Melchior Japan Advantage Fund s JPY B share class rose by 68.50% between the end of November 2012 and the end of November 2013. This compares to a net return (with dividends reinvested) of 64.16% from the benchmark Topix Index ( TPX ). Statistical data has been sourced from Bloomberg. The past twelve months saw investment markets shrug off the previous eighteen months of concern over the fiscal situation in the United States and in Europe, and by the sluggish economic growth of caused by the post- 2008 deleveraging of private and public debt. Developed equity markets posted a sprightly twelve month total return of 25% in Sterling terms. However, while inflation has remained quiescent, government bonds have declined. The total return in Sterling of the Citigroup World Government Bond Index was just shy of -5% over the twelve months under review. The key event of the period from a market perspective has been the anticipated timing and scale of a reduction ( tapering ) of the US Federal Reserve s bond purchasing programme. After a breath-taking first quarter for all asset classes (equities +15%; bonds +4%; commodities +7%), on May 1st the yield on the US 10 Year Treasury hit a low of 1.6%. Almost immediately investor speculation, fuelled by Chairman Bernanke s speech and the June FOMC press conference, focussed on the earlier prospect of interest rate rises and the consequences of a tighter policy. The resulting early summer jolt to all asset classes had a lingering effect on bond markets and emerging market equities, which both declined further for the rest of the period. In contrast, developed market equities pushed ever higher. Just after the period under review ended tapering duly arrived, but the prospect was so well digested that the impact was mildly positive. The stand out performer amongst equity markets was Japan. The strap line for the year was Buy Japan, Hedge the Yen. The Nikkei Index was up over 65% in Yen, but unhedged this was worth 30% in sterling terms. The period under review fitted neatly with the three arrows of new Prime Minister Abe s policies. Significant gains in Japanese equities had already been made when the new Bank of Japan Governor Kuroda took office in March and implemented a bigger than expected change in monetary policy, with the specific aim of getting inflation to 2% after years of deflation. Abe also announced economic stimulus packages and a plan to revitalize Japanese industrial competitiveness. The only hurdle on the horizon is the April 2014 increase in the consumption tax. European equity markets also signalled that investors anticipated recovery, ahead of clear evidence starting to emerge towards the period end. The UK has been surprising with positive economic growth in the second half of the year and equity returns picked up mid-year, shrugging off the drag from the travails of the major miners listed in the UK. Elsewhere on the continent some of the peripheral markets at the heart of the 2011/12 crisis 66 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND INVESTMENT MANAGER'S REPORT (continued) Investment Review (continued) (Spain, Ireland, and Greece) have joined with Germany and France to post strong equity gains. Economic growth remains muted The Economist shows GDP growth of -0.4% for 2013 for the Euro area but has stabilized. Germany remains robust, Greece looks set to survive and the concerns over Cyprus have receded but political uncertainty overhangs Italy and there s little progress in addressing France s structural issues. The United States has been the solid engine of global equity returns, powered initially by housing market improvement and the decline in the federal deficit, and latterly by rock solid corporate profitability, lower energy costs as the shale gas benefits kick in. Political scares have produced bumps along the way, and the next year sees further deficit and debt limit hurdles to be negotiated. The strong equity gains have reflected multiple expansion rather than profit growth, and the challenge facing investors is whether corporate earnings will catch up. Finally, Emerging Markets have turned in a really poor twelve months, down 1% in Sterling but up 9% in local currency terms. China has been suffering as investors have adjusted to a slower rate of nominal GDP growth, currently about 7.7% according to The Economist. Credit growth, whilst also moderating, is still more than double the rate of GDP growth and the PBoC have been using various measures to tighten liquidity in the banking sector. Other Emerging Markets have been sensitive to slower Chinese growth, to tapering concerns and rises in US rates, particularly those countries with current account deficits and higher levels of inflation. However value opportunities are increasingly available in EM equities. Notable individual stock highlights were Toyota Motor Corp, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial, whilst poorly performing holdings included Komatsu, Nikon Corp and Bank of Yokohama. The largest individual purchases in the Fund were Mitsubishi UFJ Financial, Usana Health Sciences Inc. and Aisin Seiki. The largest individual sales in the Fund were Mizuho Financial Group, Itochu Corp. and Kansai Electric Power Co. Top 5 Purchases and Sales Security Name (Purchases) Cost 000 s Nomura Topix Exchange Traded Fund 2,430,447 Nippon Telegraph & Telephone 1,043,453 Mizuho Financial Group 1,026,769 Sumitomo Mitsui Financial 956,425 Honda Motor 864,008 Security Name (Sales) Proceeds 000 s Nomura Topix Exchange Traded Fund 2,424,965 Sumitomo Mitsui Financial 1,297,824 Mitsubishi UFJ Financial 1,291,036 Nippon Telegraph & Telephone 914,542 Honda Motor 810,713 DALTON CAPITAL (GUERNSEY) LIMITED Investment Manager 10 January 2014 Melchior Investment Funds 67

MELCHIOR JAPAN ADVANTAGE FUND COMPARATIVE TABLES Price and Income History JPY A Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year 2009 162.10 113.32-2010** 172.53 146.58 - JPY B Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year 2009 161.06 112.63-2010 171.94 137.05-2011 171.47 122.69 0.4113 2012 150.56 122.52 1.0566 2013* 227.59 148.50 - JPY C Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year 2009 161.98 113.16-2010** 173.18 147.59 - JPY D Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year 2009 162.91 113.61 0.8640 2010** 173.18 147.59 - JPY I Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year 2013*** 229.28 163.14 1.4103 * To 30 November 2013. ** To 30 November 2010. *** From 16 January 2013 to 30 November 2013. 68 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND COMPARATIVE TABLES (continued) Price and Income History GBP A Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 107.84 83.26-2010 120.75 103.66-2011 127.13 101.55-2012 113.19 97.44 0.1156 2013* 142.19 103.64 - GBP I Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 108.71 84.07 0.2066 2010 121.99 104.61-2011 128.92 103.24 0.3691 2012 115.43 99.68 0.6459 2013* 146.37 106.17 1.0535 GBP C Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 107.82 83.36-2010 120.37 103.27 0.2571 2011 127.13 102.42 0.4876 2012 114.11 98.63 0.7472 2013* 144.18 105.00 0.1041 * To 30 November 2013. ** To 30 November 2010. Melchior Investment Funds 69

MELCHIOR JAPAN ADVANTAGE FUND COMPARATIVE TABLES (continued) Price and Income History GBP D Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 108.52 83.72 0.7652 2010 121.35 104.01 0.6592 2011 128.61 104.10 1.1185 2012 116.12 100.67 1.2621 2013* 142.03 107.24 - GBP I Hedged Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2011** 132.43 94.16 0.8832 2012 115.83 94.04 0.6485 2013* 172.69 113.71 1.5160 * To 30 November 2013. ** To 30 November 2011. The GBP B Accumulation share class was renamed GBP I Accumulation, and the GBP B Hedged Accumulation share class was renamed GBP I Hedged Accumulation on 1 January 2013. 70 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND COMPARATIVE TABLES (continued) Net Asset Value Net Asset Net Asset Value Shares in Value Date Share Class issue per share 30.11.11 JPY 'B' 231,654,632 1,834,723 126.26 GBP 'A' 654,482,592 5,207,916 103.37p GBP 'B' 7,900,823,794 61,747,989 105.24p GBP 'C' 1,462,803 11,570 103.99p GBP 'D' 2,373,959,931 18,480,416 105.66p GBP 'B' Hedged 540,521,386 4,591,423 96.83p 30.11.12 JPY 'B' 3,266,518,830 24,282,500 134.52 GBP 'A' 844,381,274 6,339,478 100.49p GBP 'I' 7,813,067,915 57,327,267 102.82p GBP 'C' 1,402,322 10,398 101.75p GBP 'D' 287,791,412 2,090,275 103.87p GBP 'I' Hedged 575,827,191 4,209,654 103.20p 30.11.13 JPY 'B' 2,957,481,242 13,044,224 226.73 JPY I * 21,008,443 91,975,685 228.41 GBP 'A' 1,088,943,890 4,874,016 133.78p GBP 'I' 8,712,947,284 37,647,759 138.58p GBP 'C' 2,298,714 10,161 135.47p GBP 'D' 2,772,989 12,424 133.64p GBP 'I' Hedged 2,330,508,723 8,111,438 172.04p * Launched 16 January 2013. Price Per Share (Ex-distribution) Yield Date Share Class Price % 02.12.13 JPY 'B' 226.80 1.6 JPY I 228.49 1.6 GBP 'A' 132.67 1.6 GBP 'I' 137.43 1.6 GBP 'C' 134.37 1.6 GBP 'D' 132.54 1.6 GBP 'I' Hedged 172.09 1.6 Melchior Investment Funds 71

MELCHIOR JAPAN ADVANTAGE FUND COMPARATIVE TABLES (continued) Ongoing Charges Figure (OCF) 30.11.13 % A B C D I Ongoing charges figure 2.32 1.82 1.67 1.17 1.02 30.11.12 % A B C D I Ongoing charges figure 2.44 1.94 1.79 1.29 1.94 The Ongoing Charges Figure is the ratio of the Fund s total discloseable costs (excluding overdraft interest) to the average net assets of the Fund. Synthetic Risk and Reward Calculator Lower Risk Typically lower rewards Higher Risk Typically higher rewards 1 2 3 4 5 6 7 The SRRI table demonstrates where a Fund ranks in terms of risk and reward. The higher the risk the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the risk profile of the Fund. The shaded area on the table above shows the Fund's ranking on the risk and reward indicator. 72 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND PORTFOLIO STATEMENT AS AT 30 NOVEMBER 2013 Total Net Assets Value Holding Portfolio of Investments '000 % % OIL & GAS 171,300 JX Holdings 91,303 0.60 106,000 Tokyo Gas 53,954 0.36 TOTAL OIL & GAS 145,257 0.96 1.36 BASIC MATERIALS 142,000 Daicel 115,162 0.76 26,500 Jfe Holdings 60,950 0.40 49,000 Hitachi Metals 71,295 0.47 19,200 Lixil Group 50,880 0.34 148,000 Mitsubishi Gas Chemical 118,400 0.78 24,300 Nippon Paper Industries 45,295 0.30 657,000 Nippon Steel 217,467 1.44 88,000 Sakata Inx 90,288 0.60 129,000 Zeon 147,963 0.98 TOTAL BASIC MATERIALS 917,700 6.07 6.62 INDUSTRIALS 84,800 Alps Electric 93,789 0.62 32,800 Century Tokyo Leasing 115,620 0.77 71,700 CKD 70,911 0.47 54,000 Daiwa House Industry 107,352 0.71 131,000 Ebara 82,268 0.54 5,300 Enplas 35,669 0.24 66,100 Fuji Heavy Industries 190,963 1.26 572,000 Hitachi 431,288 2.85 64,000 Isuzu Motors 41,792 0.28 66,000 Japan Aviation Electronics Industry 75,834 0.50 123,000 Kajima 46,986 0.31 156,300 Kansai Electric Power 181,777 1.20 598,000 Kawasaki Heavy Industries 249,964 1.65 26,600 Kito 48,279 0.32 27,300 Komatsu 58,067 0.38 110,000 Kubota 192,390 1.27 66,000 Minebea 47,718 0.32 71,300 Mitsubishi 143,598 0.95 134,000 Mitsubishi Electric 158,388 1.05 222,000 Mitsubishi Heavy Industries 145,410 0.96 123,100 Mitsui 174,556 1.16 23,500 Nec Networks & Systems Integration 58,609 0.39 9,000 Nidec 89,010 0.59 Melchior Investment Funds 73

MELCHIOR JAPAN ADVANTAGE FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Holding Portfolio of Investments '000 % % INDUSTRIALS (continued) 174,000 Nippon Yusen 54,984 0.36 52,300 Omron 220,183 1.46 2,500 Smc 61,600 0.41 847,000 Toshiba 373,527 2.47 700 Tamron 1,522 0.01 TOTAL INDUSTRIALS 3,552,054 23.50 29.95 CONSUMER GOODS 39,800 Asahi Group Holdings 111,440 0.74 73,100 Bridgestone 273,394 1.81 47,600 Citizen Holdings 37,413 0.25 127,900 Honda Motor 552,528 3.65 106,300 Japan Tobacco 366,735 2.43 75,200 Leopalace21 43,616 0.29 294,000 Mazda Motor 138,180 0.91 26,800 Musashi Seimitsu Industry 60,032 0.40 41,600 Namco Bandai Holdings 86,486 0.57 28,600 Sony 53,339 0.35 69,800 Sumitomo Electric 111,261 0.74 166,600 Toyota Motor 1,059,576 7.01 TOTAL CONSUMER GOODS 2,894,000 19.15 15.47 HEALTHCARE 31,100 Message 99,053 0.66 11,400 Nichi-Iko Pharmaceutical 23,108 0.15 54,600 Olympus 187,824 1.24 12,200 Pola Orbis Holdings 45,201 0.30 20,100 Ship Healthcare Holdings 87,737 0.58 TOTAL HEALTHCARE 442,923 2.93 4.86 CONSUMER SERVICES 32,900 East Japan Railway 275,702 1.82 26,000 Japan Airlines 135,200 0.89 152,000 Nippon Express 80,104 0.53 65,000 Tokyu 44,720 0.30 TOTAL CONSUMER SERVICES 535,726 3.54 5.67 GENERAL RETAILERS 15,200 Abc-Mart 70,984 0.47 29,100 Hitachi High-Technologies 69,695 0.46 251,400 Itochu 324,557 2.15 74 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Holding Portfolio of Investments '000 % % GENERAL RETAILERS (continued) 3,400 JIN 13,566 0.09 4,650 Nitori Holdings 44,129 0.29 19,900 Ryohin Keikaku 211,935 1.40 46,700 SEVEN&i 175,592 1.16 7,900 Tsuruha 74,497 0.50 95,000 Wakita & Company 115,235 0.76 TOTAL GENERAL RETAILERS 1,100,190 7.28 1.24 TELECOMMUNICATIONS 14,000 Cyberagent 53,270 0.35 50,600 KDDI 324,852 2.15 108,200 Nippon Telegraph & Telephone 555,066 3.67 52,700 Softbank Fonciere Paris France 436,356 2.89 TOTAL TELECOMMUNICATIONS 1,369,544 9.06 5.67 UTILITIES - - 1.09 FINANCIALS 90,000 Mitsubishi Estate 255,870 1.69 968,400 Mitsubishi UFJ Financial 636,239 4.21 31,000 Mitsui Fudosan 107,570 0.71 2,005,300 Mizuho Financial Group 429,134 2.84 130,000 Nomura Holdings 105,300 0.70 139,300 Orix 259,655 1.72 110,000 Sumitomo Mitsui Financial 556,600 3.68 73,300 Tokio Marine Holdings 248,854 1.64 54,300 Yahoo Japan 26,770 0.18 TOTAL FINANCIALS 2,625,992 17.37 16.09 INDEX TRACKER FUNDS 337,220 Nomura Topix Exchange Traded Fund 431,979 2.86 2.01 TECHNOLOGY 37,300 Canon 126,820 0.84 52,000 Hitachi Kokusai Electric 69,576 0.46 201,000 Nippon Chemi-Con 76,380 0.50 50,300 SCSK 129,673 0.86 7,700 Tokyo Electron 42,581 0.28 TOTAL TECHNOLOGY 445,030 2.94 7.18 Melchior Investment Funds 75

MELCHIOR JAPAN ADVANTAGE FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Holding Portfolio of Investments '000 % % Counterparty FORWARD CURRENCY CONTRACTS JPY (2,297,968,634) Northern Trust* Sold JPY, bought GBP 13,841,000 for settlement 31/01/2014 11,496 0.08 0.15 Portfolio of investments 14,471,891 95.74 97.36 Net other assets 644,070 4.26 2.64 Net assets 15,115,961 100.00 100.00 * Currently forward positions are not collateralised. Percentage of Total Market Investments Value Portfolio of Investments % % Index Tracker Funds 431,979 2.98 2.06 Equities 14,028,416 96.94 97.79 Forward FX Currency Contracts 11,496 0.08 0.15 14,471,891 100.00 100.00 76 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND STATEMENT OF TOTAL RETURN FOR THE YEAR ENDED 30 NOVEMBER 2013 Notes 000 000 000 000 Income Net capital gains 2 7,755,681 831,209 Revenue 3 261,831 477,219 Expenses 4 (201,581) (261,263) Finance costs: Interest 6 - (83,949) Net revenue before taxation 60,250 132,007 Taxation 5 (18,148) (26,978) Net revenue after taxation 42,102 105,029 Total return before distributions 7,797,783 936,238 Finance costs: Distributions 6 (51,117) (105,029) Change in net assets attributable to shareholders from investment activities 7,746,666 831,209 STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS FOR THE YEAR ENDED 30 NOVEMBER 2013 000 000 000 000 Opening net assets attributable to shareholders 12,788,989 11,702,905 Amounts receivable on issue of shares of share 11,004,709 7,968,529 Less: Amounts payable on cancellation of shares (16,476,508) (7,796,486) (5,471,799) 172,043 Change in net assets attributable to shareholders (see Statement of Total Return above) 7,746,666 831,209 Retained distribution on Accumulation shares 52,105 82,832 Closing net assets attributable to shareholders 15,115,961 12,788,989 Notes 1 to 13 form part of these financial statements. Melchior Investment Funds 77

MELCHIOR JAPAN ADVANTAGE FUND BALANCE SHEET AS AT 30 NOVEMBER 2013 Notes 000 000 000 000 ASSETS Investment assets 14,471,891 12,451,510 Other assets Debtors 7 554,152 488,459 Cash and bank balances 706,933 427,339 Total other assets 1,261,085 915,798 Total assets 15,732,976 13,367,308 LIABILITIES Derivative liabilities - (273) Other liabilities Creditors 8 (617,015) (550,115) Bank overdrafts - (27,931) Total other liabilities (617,015) (578,046) Total liabilities (617,015) (578,319) Net assets attributable to shareholders 15,115,961 12,788,989 Notes 1 to 13 form part of these financial statements. 78 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND NOTES TO THE FINANCIAL STATEMENTS AS AT 30 NOVEMBER 2012 1. ACCOUNTING POLICIES The Fund's Financial Statements have been prepared based on the Accounting Policies shown in the Aggregated Financial Statements. This Fund is reported in Japanese Yen and is translated into sterling at the rate of 167.0049 for the purposes of aggregation. 2. NET CAPITAL GAINS 000 000 Net capital gains during the year comprise: Non-derivative securities 7,469,616 781,151 Currency gains 5,284 56,323 Forward currency contracts 288,587 (333) Transaction charges (7,806) (5,932) Net gains 7,755,681 831,209 3. REVENUE 000 000 Bank interest 6,448 83,127 Offshore CIS revenue 6,834 14,461 Overseas dividends 248,549 379,631 Total revenue 261,831 477,219 Melchior Investment Funds 79

MELCHIOR JAPAN ADVANTAGE FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 4. EXPENSES 000 000 Payable to the ACD, associates of the ACD and agents of either of them: ACD's periodic charge 186,335 224,747 Payable to the Depositary, associates of the Depositary and agents of either of them: Depositary fees 5,963 5,951 Safe custody and other bank charges 2,100 2,409 8,063 8,360 Other expenses: Administration fees - 394 Fees paid to auditors - audit 2,083 1,682 FCA fee 22 21 Insurance premiums 1,149 - Legal and professional fees 1,850 2,987 Performance fees 14 - Printing costs 402 63 Publication costs 32 26 Registration fees 1,631 22,983 7,183 28,156 Total expenses 201,581 261,263 80 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 5. TAXATION 000 000 a) Analysis of charge for the year Corporation tax at 20% - - Overseas tax 18,148 26,978 Current tax charge (note 5b) 18,148 26,978 Deferred tax - origination and reversal of timing differences (note 5c) - - Total taxation 18,148 26,978 b) Factors affecting current tax charge for the year The tax assessed for the year differs from the standard rate of corporation tax in the UK for an authorised fund (20%) (30.11.12: 20%) for the reasons explained below. Net revenue before taxation 60,251 132,007 Corporation tax at 20% 12,050 26,401 Effects of: DTR expensed (16) (18) Non trade loan relationship - 164 Non-taxable overseas dividends (50,849) (72,339) Overseas tax 18,148 26,978 Tax chargeable in different periods - (3,326) Tax effect of offshore funds 31,631 3,501 UK dividends - (2,892) Unutilised excess management expenses 7,184 48,509 Current tax charge (note 5a) 18,148 26,978 c) Deferred tax At the year end there is a potential deferred tax asset of 158,673,048 (30.11.12: 151,488,808) in relation to surplus management expenses. It is unlikely that the Fund will generate sufficient taxable profits in the future to utilise this amount and, therefore, no deferred tax asset has been recognised in the current or prior period. Melchior Investment Funds 81

MELCHIOR JAPAN ADVANTAGE FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 6. FINANCE COSTS Distributions The distributions take account of revenue received on the issue of shares and revenue deducted on cancellations of shares, and comprise: 000 000 Final 52,105 82,832 52,105 82,832 Add: Revenue deducted on cancellation of shares 10,192 35,948 Deduct: Revenue received on issues of shares (11,180) (13,751) Net distributions for the year 51,117 105,029 Interest - 83,949 Total finance costs 51,117 188,978 Distributions represented by: Net revenue after taxation 42,103 105,029 Allocations to capital: Performance fees 13 - Revenue deficit 8,985-8,998 - Balance carried forward 16 - Net distributions for the year 51,117 105,029 7. DEBTORS 000 000 Amounts receivable for issue of shares 9,911 3,794 Currency deals awaiting settlement 115,236 48,394 Sales awaiting settlement 369,479 333,269 Accrued revenue: Overseas dividends 59,434 102,975 59,434 102,975 Prepaid expenses 92 27 Total Debtors 554,152 488,459 82 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 8. CREDITORS 000 000 Amounts payable on cancellation of shares 156,904 142,701 Currency deals awaiting settlement 113,876 47,789 Purchases awaiting settlement 327,157 334,309 Accrued expenses: Amounts payable to the ACD, associates of the ACD and agents of either of them: ACD's periodic charge 12,624 12,879 Amounts payable to the Depositary, associates of the Depositary and agents of either of them: Depositary's fees 409 435 Transaction charges 234 1,864 Safe custody and other bank charges 335 891 978 3,190 Other expenses: Bank interest - 28 Fees paid to auditors - audit 1,790 1,516 Insurance premium 448 - Legal and professional fees 3,167 6,000 Performance fees 14 - Printing costs 57 47 Publication costs - 25 Registration fees - 1,631 5,476 9,247 Total creditors 617,015 550,115 9. RELATED PARTY TRANSACTIONS Disclosure is made in note 9 of the Notes to the Aggregated Financial Statements. 10. SHAREHOLDERS FUNDS Disclosure is made in note 10 of the Notes to the Aggregated Financial Statements. 11. CONTNGENT LIABILITIES AND COMMITMENTS There are no contingent liabilities or outstanding commitments at the year end (30.11.12: Nil). Melchior Investment Funds 83

MELCHIOR JAPAN ADVANTAGE FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS The main risks from the Fund s holding of financial instruments, together with the ACD s policy for managing these risks, are disclosed in note 12 of the Notes to the Aggregated Financial Statements. i The table below shows the interest rate risk profile: Interest rate risk 000 000 Floating rate assets: Japanese yen 703,140 425,416 Pounds sterling 3,325 1,545 US dollar 468 378 706,933 427,339 Floating rate liabilities: Pounds sterling - (27,931) - (27,931) Assets on which interest is not paid: Japanese yen 15,014,547 12,920,916 Pounds sterling 2,309,464 547,215 17,324,011 13,468,131 Liabilities on which interest is not paid: Japanese yen (2,914,983) (1,078,550) (2,914,983) (1,078,550) Net assets 15,115,961 12,788,989 The floating rate financial assets and liabilities comprise bank balances and overdrafts which earn or pay interest at rates linked to UK LIBOR or its international equivalents. There are no material amounts of non-interest bearing financial assets and liabilities other than equities, which do not have maturity dates. 84 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS (continued) ii Foreign currency risk The table below shows the foreign currency risk profile: 000 000 Currency: Pounds sterling 14,821 520,829 US dollar 468 378 15,289 521,207 Japanese yen 15,100,672 12,267,782 Net assets 15,115,961 12,788,989 iii Sensitivity analysis There were no derivatives of a material nature held by the Fund during the current or prior year. 13. PORTFOLIO TRANSACTION COSTS 000 000 Analysis of total purchase costs Purchases in period before transaction costs 31,154,944 28,171,197 Transaction costs: Commissions 27,385 19,269 27,385 19,269 Gross purchase total 31,182,329 28,190,466 Analysis of total sale costs Gross sales before transaction costs 36,653,163 27,911,593 Transaction costs: Commissions (29,141) (18,797) Other charges (14) (16) (29,155) (18,813) Total sales net of transaction costs 36,624,008 27,892,780 Melchior Investment Funds 85

MELCHIOR JAPAN ADVANTAGE FUND DISTRIBUTION TABLES FOR THE YEAR ENDED 30 NOVEMBER 2013 - IN CURRENCY PER SHARE No dividend was paid at the interim. Final Group 1 - Shares purchased prior to 1 June 2013 Group 2 - Shares purchased on or after 1 June 2013 and on or before 30 November 2013 JPY B Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share Group 1 - - - 1.0566 Group 2 - - - 1.0566 JPY I Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share Group 1 1.4103-1.4103 - Group 2 0.5226 0.8877 1.4103 - GBP A Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 - - - 0.1156 Group 2 - - - 0.1156 GBP I Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 0.6308-0.6308 0.6459 Group 2 0.1765 0.4543 0.6308 0.6459 GBP I Hedged Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 0.9077-0.9077 0.6485 Group 2 0.2443 0.6634 0.9077 0.6485 86 Melchior Investment Funds

MELCHIOR JAPAN ADVANTAGE FUND DISTRIBUTION TABLES (continued) FOR THE YEAR ENDED 30 NOVEMBER 2013 - IN CURRENCY PER SHARE Final (continued) Group 1 - Shares purchased prior to 1 June 2013 Group 2 - Shares purchased on or after 1 June 2013 and on or before 30 November 2013 GPB C Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 0.0623-0.0623 0.7472 Group 2 0.0623-0.0623 0.7472 GPB D Net Allocated Allocated Accumulation Income Equalisation 31.03.14 31.03.13 Share p p p p Group 1 - - - 1.2621 Group 2 - - - 1.2621 Equalisation Equalisation applies only to shares purchased during the distribution period (Group 2 shares). It represents the accrued income included in the purchase price of the shares. After averaging it is returned with the distribution as a capital repayment. It is not liable to Income Tax but must be deducted from the cost of the shares for Capital Gains Tax purposes. Melchior Investment Funds 87

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND INVESTMENT MANAGER'S REPORT FOR THE YEAR ENDED 30 NOVEMBER 2013 Investment Objective and Policy The investment objective of the Melchior North American Opportunities Fund is to achieve longer term capital growth, without undue risk, through diversified investment in equities that are issued by companies that have their registered office or carry out a predominant portion of their economic activity in North America. The Fund may invest in cash or near cash instruments. There may be times in light of adverse conditions when the manager will wish to hold positions in collective investment schemes. Investment Review The Melchior North American Opportunities Fund s USD B share class rose by 33.77% between the end of November 2012 and the end of November 2013. This compares to a net return (with dividends reinvested) of 30.29% from the benchmark S&P 500 Index ( SPX ). Statistical data has been sourced from Bloomberg. The past twelve months saw investment markets shrug off the previous eighteen months of concern over the fiscal situation in the United States and in Europe, and by the sluggish economic growth of caused by the post- 2008 deleveraging of private and public debt. Developed equity markets posted a sprightly twelve month total return of 25% in Sterling terms. However, while inflation has remained quiescent, government bonds have declined. The total return in Sterling of the Citigroup World Government Bond Index was just shy of -5% over the twelve months under review. The key event of the period from a market perspective has been the anticipated timing and scale of a reduction ( tapering ) of the US Federal Reserve s bond purchasing programme. After a breath-taking first quarter for all asset classes (equities +15%; bonds +4%; commodities +7%), on May 1st the yield on the US 10 Year Treasury hit a low of 1.6%. Almost immediately investor speculation, fuelled by Chairman Bernanke s speech and the June FOMC press conference, focussed on the earlier prospect of interest rate rises and the consequences of a tighter policy. The resulting early summer jolt to all asset classes had a lingering effect on bond markets and emerging market equities, which both declined further for the rest of the period. In contrast, developed market equities pushed ever higher. Just after the period under review ended tapering duly arrived, but the prospect was so well digested that the impact was mildly positive. The stand out performer amongst equity markets was Japan. The strap line for the year was Buy Japan, Hedge the Yen. The Nikkei Index was up over 65% in Yen, but unhedged this was worth 30% in sterling terms. The period under review fitted neatly with the three arrows of new Prime Minister Abe s policies. Significant gains in Japanese equities had already been made when the new Bank of Japan Governor Kuroda took office in March and implemented a bigger than expected change in monetary policy, with the specific aim of getting inflation to 2% after years of deflation. Abe also announced economic stimulus packages and a plan to revitalize Japanese industrial competitiveness. The only hurdle on the horizon is the April 2014 increase in the consumption tax. European equity markets also signalled that investors anticipated recovery, ahead of clear evidence starting to emerge towards the period end. The UK has been surprising with positive economic growth in the second half of the year and equity returns picked up mid-year, shrugging off the drag from the travails of the major miners listed in the UK. Elsewhere on the continent some of the peripheral markets at the heart of the 2011/12 crisis 88 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND INVESTMENT MANAGER'S REPORT (continued) Investment Review (continued) (Spain, Ireland, and Greece) have joined with Germany and France to post strong equity gains. Economic growth remains muted The Economist shows GDP growth of -0.4% for 2013 for the Euro area but has stabilized. Germany remains robust, Greece looks set to survive and the concerns over Cyprus have receded but political uncertainty overhangs Italy and there s little progress in addressing France s structural issues. The United States has been the solid engine of global equity returns, powered initially by housing market improvement and the decline in the federal deficit, and latterly by rock solid corporate profitability, lower energy costs as the shale gas benefits kick in. Political scares have produced bumps along the way, and the next year sees further deficit and debt limit hurdles to be negotiated. The strong equity gains have reflected multiple expansion rather than profit growth, and the challenge facing investors is whether corporate earnings will catch up. Finally, Emerging Markets have turned in a really poor twelve months, down 1% in Sterling but up 9% in local currency terms. China has been suffering as investors have adjusted to a slower rate of nominal GDP growth, currently about 7.7% according to The Economist. Credit growth, whilst also moderating, is still more than double the rate of GDP growth and the PBoC have been using various measures to tighten liquidity in the banking sector. Other Emerging Markets have been sensitive to slower Chinese growth, to tapering concerns and rises in US rates, particularly those countries with current account deficits and higher levels of inflation. However value opportunities are increasingly available in EM equities. Notable individual stock highlights were Financial Engines, Celgene Corp and Western Alliance Bancorp, whilst poorly performing holdings included First Solar Inc, Research In Motion and Walter Investment Management. The largest individual purchases in the Fund were Ebay Inc., Monsanto and Eagle Materials Inc. The largest individual sales in the Fund were Michael Kors Holdings, Apple Inc. and Google Inc. Top 5 Purchases and Sales Security Name (Purchases) Cost US$000 s SPDR S&P 5 ETF Trust 15,982 Cisco Systems 1,759 Linkedin 'A' 1,385 Google 'A' 1,342 Citigroup 1,207 Security Name (Sales) Proceeds US$000 s SPDR S&P 5 ETF Trust 16,437 Regeneron Pharmaceuticals 2,121 ebay 2,041 PerkinElmer 1,982 First Solar 1,862 DALTON CAPITAL (GUERNSEY) LIMITED Investment Manager 10 January 2014 Melchior Investment Funds 89

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND COMPARATIVE TABLES Price and Income History USD A Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year US$ US$ US$ (cents) 2009 1.9685 1.2288-2010 2.5014 1.8461-2011 2.8035 2.0111-2012 2.7435 2.2849-2013* 3.4807 2.7193 - USD B Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year US$ US$ US$ (cents) 2009 2.0139 1.2543-2010 2.5746 1.8920-2011 2.8904 2.0779-2012 2.8585 2.3646-2013* 3.6436 2.8387 - USD C Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year US$ US$ US$ (cents) 2009 1.9890 1.2368-2010 2.5457 1.8695-2011 2.8386 2.0579-2012 2.8353 2.3429-2013* 3.6043 2.8172 - * To 30 November 2013. 90 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Price and Income History (continued) USD I Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year US$ US$ US$ (cents) 2009 2.0443 1.2661-2010 2.5860 1.9228-2011 2.8975 2.0989-2012 2.8148 2.3863-2013* - - - GBP A Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 121.94 87.33-2010 161.48 117.85-2011 168.04 130.48-2012 169.81 146.55-2013* 215.90 168.60 - GBP I Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 124.90 89.18-2010 166.60 120.99-2011 173.64 135.14-2012 176.70 151.99-2013* 227.20 175.81 - * To 2 July 2012. ** To 30 November 2013. The USD D Accumulation share class was renamed USD I Accumulation on 1 January 2013. Melchior Investment Funds 91

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Price and Income History (continued) GBP C Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 124.14 88.55-2010 163.31 120.21-2011 168.77 131.76-2012 170.71 147.19-2013* 216.40 169.28 - GBP D Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 127.40 90.60-2010 168.50 123.76-2011 175.13 137.36-2012 180.64 154.71-2013* 231.23 180.00 - GBP A Hedged Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009** 95.07 61.80 - * To 30 November 2013. ** To 30 November 2009. As at 1 January 2013 the name of GBP B Accumulation shares was changed to GBP I Accumulation shares and GBP B Hedged Accumulation shares was changed to GBP I Hedged Accumulation shares. 92 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Price and Income History (continued) GBP I Hedged Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009 97.98 62.99-2010 122.27 91.65-2011 140.07 101.00-2012 139.83 115.43-2013* 181.03 140.05 - GBP C Hedged Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009** 96.51 62.43 - GBP D Hedged Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year p p p 2009** 98.49 63.76 - EUR A Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year (cents) 2009** 1.3022 0.9669 - EUR B Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year (cents) 2009** 1.3286 0.9767 - * To 30 November 2013. ** To 30 November 2009. Melchior Investment Funds 93

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Price and Income History (continued) EUR C Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year (cents) 2009* 1.3328 0.9792 - EUR D Accumulation shares Highest Lowest Distribution Calendar Price Price per share Year (cents) 2009* 1.3713 1.0019 - * To 30 November 2009. 94 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Net Asset Value Net Asset Net Asset Value Shares in Value Date Share Class US$ issue per share 30.11.11 USD 'A' 7,797,520 3,565,358 $2.19 USD 'B' 56,925,933 25,171,222 $2.26 USD 'C' 17,821 8,000 $2.23 USD 'D' 1,714,728 750,000 $2.2863 GBP 'A' 1,353,102 619,572 140.37p GBP 'B' 17,054,298 7,532,779 145.52p GBP 'C' 3,820,119 2,236,238 109.80p GBP 'D' 1,465,550 666,035 141.43p GBP 'B' Hedged 4,885,355 2,121,115 148.04p 30.11.12 USD 'A' 1,996,693 768,588 $2.60 USD 'B' 33,755,869 12,455,557 $2.71 USD 'C' 21,512 8,000 $2.69 GBP 'A' 1,004,145 385,087 162.85p GBP 'I' 27,076,469 9,967,853 169.64p GBP 'C' 229,093 87,537 163.44p GBP 'D' 1,687,730 606,963 173.65p GBP 'I' Hedged 1,457,133 687,150 132.43p 30.11.13 USD 'A' 17,344 5,011 $3.46 USD 'B' 8,372,661 2,310,749 $3.62 USD 'C' 14,358 4,000 $3.59 GBP 'A' 973,706 280,636 211.98p GBP 'I' 23,977,943 6,560,531 223.30p GBP 'C' 72,980 20,921 213.12p GBP 'D' 1,580,970 423,827 227.90p GBP 'I' Hedged 327,826 111,250 180.04p Price Per Share (Ex-distribution) Yield Date Share Class Price % 02.12.13 USD 'A' $3.3638 1.6 USD 'B' $3.5225 1.6 USD 'C' $3.4901 1.6 GBP 'A' 203.44p 3.5 GBP 'I' 214.71p 3.4 GBP 'C' 204.86p 1.6 GBP 'D' 219.14p 1.6 GBP 'I' Hedged 175.15p 1.6 Melchior Investment Funds 95

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND COMPARATIVE TABLES (continued) Ongoing Charges Figure (OCF) 30.11.13 % A B C D I Ongoing charges figure 2.75 2.25 2.10 1.40 1.60 30.11.12 % A B C D I Ongoing charges figure 2.36 1.86 1.71 1.21 1.86 The Ongoing Charges Figure is the ratio of the Fund's total discloseable costs (excluding overdraft interest) to the average net assets of the Fund. Synthetic Risk and Reward Calculator Lower Risk Typically lower rewards Higher Risk Typically higher rewards 1 2 3 4 5 6 7 The SRRI table demonstrates where a Fund ranks in terms of risk and reward. The higher the risk the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the risk profile of the Fund. The shaded area on the table above shows the Fund's ranking on the risk and reward indicator. 96 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND PORTFOLIO STATEMENT AS AT 30 NOVEMBER 2013 Total Net Assets Value Holding Portfolio of Investments US$ % % OIL & GAS 10,159 Halliburton 535,176 1.51 3,410 Oasis Petroleum 157,269 0.45 5,230 SM Energy 460,920 1.30 TOTAL OIL & GAS 1,153,365 3.26 1.14 BASIC MATERIALS 8,484 Fortune Brands Home & Security 369,648 1.05 6.93 INDUSTRIALS 2,852 Alliance Data Systems 690,926 1.96 17,724 Gentex 528,175 1.49 5,726 Illumina 561,148 1.59 3,327 Middleby 733,203 2.07 13,089 Smith & Wesson 708,900 2.01 TOTAL INDUSTRIALS 3,222,352 9.12 22.08 CONSUMER GOODS 10,017 Best Buy 406,290 1.15 5,770 Casey s General Stores 429,173 1.21 5,910 Costco Wholesale 741,291 2.10 4,220 Deckers Outdoor 348,614 0.99 6,620 Hasbro 356,288 1.01 13,399 Gamestop 'A' 646,368 1.83 9,973 Michael Kors Holdings 813,098 2.30 83,117 Rite Aid 491,221 1.39 10,110 TJX 635,717 1.80 8,410 Tractor Supply 615,696 1.74 6,320 Walt Disney 445,497 1.26 12,929 Winnebago Industries 400,153 1.13 TOTAL CONSUMER GOODS 6,329,406 17.91 12.03 HEALTHCARE 4,692 Celgene 759,025 2.15 6,002 Covance 506,569 1.43 1,950 Mckesson 323,252 0.91 3,264 Valeant Pharmaceuticals International 357,767 1.02 TOTAL HEALTHCARE 1,946,613 5.51 9.31 Melchior Investment Funds 97

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Holding Portfolio of Investments US$ % % CONSUMER SERVICES 3,588 Buffalo Wild Wings 538,918 1.53 1,280 Chipotle Mexican Grill 670,554 1.90 10,400 Euronet Worldwide 503,152 1.42 23,580 Lifelock 405,576 1.15 18,675 MDC Partners 'A' 424,109 1.20 25,070 MGM Resorts International 481,093 1.36 7,680 Starbucks 625,613 1.77 5,659 Steiner Leisure 332,862 0.94 3,510 Wex 348,613 0.99 TOTAL CONSUMER SERVICES 4,330,490 12.26 20.87 FINANCIALS 2,164 Affiliated Managers 433,276 1.23 26,506 Bancorpsouth 633,493 1.79 10,146 CBOE Holdings 530,129 1.50 10,410 Citigroup 550,897 1.56 9,947 Discover Financial Services 530,076 1.50 8,268 Evercore Partners 'A' 453,334 1.28 8,981 Financial Engines 608,463 1.72 8,050 Iberiabank 504,333 1.43 4,837 Moody's 360,985 1.02 17,571 Morgan Stanley 549,972 1.56 3,515 VISA 'A' 716,041 2.03 28,470 Western Alliance Bancorp 660,789 1.87 TOTAL FINANCIALS 6,531,788 18.49 13.91 INDEX TRACKER FUNDS 1,963 SPDR S&P 5 ETF Trust 355,107 1.00 1.01 TECHNOLOGY 4,533 3D Systems 340,610 0.96 1,350 Apple 750,694 2.12 773 Google 'A' 819,063 2.32 14,522 Infoblox 461,364 1.31 6,316 Sandisk 430,372 1.22 9,459 Stamps.Com 434,168 1.23 7,481 Synaptics 377,641 1.07 8,717 Wabtec 601,211 1.70 TOTAL TECHNOLOGY 4,215,123 11.93 13.67 98 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND PORTFOLIO STATEMENT (continued) Total Net Assets Value Holding Portfolio of Investments US$ % % INSURANCE 9,005 AIG 447,909 1.27 - TRANSPORTATION 5,532 Boeing 742,505 2.10 16,292 Spirit Airlines 746,662 2.11 23,774 Swift Transportation 550,130 1.56 TOTAL TRANSPORTATION 2,039,297 5.77 - FOOD & BEVERAGE 21,374 Flowers Foods 464,457 1.31 4,056 J.M. Smucker 422,960 1.20 TOTAL FOOD & BEVERAGE 887,417 2.51 - AUTO PARTS & EQUIPMENT 9,052 Delphi Automotive 529,904 1.50 - ELECTRICAL COMPONENTS & EQUIPMENT 7,937 Generac Holdings 422,487 1.20 11,460 Sunpower 347,238 0.98 TOTAL ELECTRICAL COMPONENTS & EQUIPMENT 769,725 2.18 - TELECOMMUNICATIONS 12,000 Verizon Communications 595,440 1.68 - CHEMICALS 6,570 Ecolab 703,976 1.99 - Counterparty FORWARD FX CURRENCY CONTRACTS $(327,995) Northern Trust* Sold USD, Bought GBP 201,000 for settlement 31/01/2014 1,662 - (0.01) Portfolio of investments 34,429,222 97.43 100.94 Net other assets 908,566 2.57 (0.94) Net assets 35,337,788 100.00 100.00 * Currently forward positions are not collateralised. Melchior Investment Funds 99

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND PORTFOLIO STATEMENT (continued) Percentage of Total Market Investments Value Portfolio of Investments % % Index Tracker Funds 355,107 1.03 1.00 Equities 34,072,453 98.96 99.01 Forward FX Currency Contracts 1,662 0.01 (0.01) 34,429,222 100.00 100.00 100 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND STATEMENT OF TOTAL RETURN FOR THE YEAR ENDED 30 NOVEMBER 2013 Notes US$ US$ US$ US$ Income Net capital gains 2 13,200,788 17,189,039 Revenue 3 554,816 806,239 Expenses 4 (842,525) (1,448,102) Finance costs: Interest 6 (1,842) (6,985) Net expense before taxation (289,551) (648,848) Taxation 5 (84,642) (118,677) Net expense after taxation (374,193) (767,525) Total return before distributions 12,826,595 16,421,514 Finance costs: Distributions 6 (54,284) (47) Change in net assets attributable to shareholders from investment activities 12,772,311 16,421,467 STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS FOR THE YEAR ENDED 30 NOVEMBER 2013 US$ US$ US$ US$ Opening net assets attributable to shareholders 67,228,644 95,034,526 Amounts receivable on issue of shares of share 8,874,716 71,989,338 Less: Amounts payable on cancellation of shares (53,537,883) (116,216,687) (44,663,167) (44,227,349) Change in net assets attributable to shareholders (see Statement of Total Return above) 12,772,311 16,421,467 Closing net assets attributable to shareholders 35,337,788 67,228,644 Notes 1 to 13 form part of these financial statements. Melchior Investment Funds 101

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND BALANCE SHEET AS AT 30 NOVEMBER 2013 Notes US$ US$ US$ US$ ASSETS Investment assets 34,429,222 67,869,913 Other assets Debtors 7 586,582 601,737 Cash and bank balances 869,333 629,945 Total other assets 1,455,915 1,231,682 Total assets 35,885,137 69,101,595 LIABILITIES Derivative liabilities - (8,624) Other liabilities Creditors 8 (259,790) (693,895) Bank overdrafts (287,559) (1,170,432) Total other liabilities (547,349) (1,864,327) Total liabilities (547,349) (1,872,951) Net assets attributable to shareholders 35,337,788 67,228,644 Notes 1 to 13 form part of these financial statements. 102 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS AS AT 30 NOVEMBER 2013 1. ACCOUNTING POLICIES The Fund's Financial Statements have been prepared based on the Accounting Policies shown in the Aggregated Financial Statements. This Fund is reported in US dollars and is translated into sterling at the rate of 1.6367 for the purposes of aggregation. 2. NET CAPITAL GAINS US$ US$ Net capital gains during the year comprise: Non-derivative securities 13,202,077 17,147,508 Currency gains 48,960 45,179 Derivative securities - (9,661) Forward currency contracts 615 33,318 Transaction charges (50,864) (27,305) Net gains 13,200,788 17,189,039 3. REVENUE US$ US$ Bank interest - 4,289 Overseas dividends 554,816 801,950 Total revenue 554,816 806,239 Melchior Investment Funds 103

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 4. EXPENSES US$ US$ Payable to the ACD, associates of the ACD and agents of either of them: ACD's periodic charge 558,301 1,308,058 Payable to the Depositary, associates of the Depositary and agents of either of them: Depositary fees 20,913 37,882 Safe custody and other bank charges 1,648 642 22,561 38,524 Other expenses: Administration fees 24,643 2,236 Fees paid to auditors - audit 19,376 21,619 FCA fee 243 264 German taxation fees expense 13,938 - Insurance premiums - 5,249 Legal and professional fees 119,277 (42,186) Performance fees 73,109 142 Printing costs 2,631 (240) Publication costs 2,976 (425) Registration fees 5,470 114,861 261,663 101,520 Total expenses 842,525 1,448,102 104 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 5. TAXATION US$ US$ a) Analysis of charge for the year Overseas tax 84,642 118,677 Current tax charge (note 5b) 84,642 118,677 Deferred tax - origination and reversal of timing differences (note 5c) - - Total taxation 84,642 118,677 b) Factors affecting current tax charge for the year The tax assessed for the year differs from the standard rate of corporation tax in the UK for an authorised fund (20%) (30.11.12: 20%) for the reasons explained below. Net expense before taxation (289,551) (648,848) Corporation tax at 20% (57,910) (129,770) Effects of: Expenses not deductable for tax purposes - 1,050 Non trade loan relationship 368 539 Non-taxable overseas dividends (130,639) (153,129) Overseas tax 84,642 118,677 Tax chargeable in different periods 19,676 (5,107) Unutilised excess management expenses 168,505 286,417 Current tax charge (note 5a) 84,642 118,677 c) Deferred tax At the year end there is a potential deferred tax asset of US$2,478,767 (30.11.12: US$2,310,262) in relation to surplus management expenses. It is unlikely that the Fund will generate sufficient taxable profits in the future to utilise this amount and, therefore, no deferred tax asset has been recognised in the current or prior period. Melchior Investment Funds 105

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 6. FINANCE COSTS Distributions The distributions take account of revenue received on the issue of shares and revenue deducted on cancellations of shares, and comprise: US$ US$ Add: Revenue deducted on cancellation of shares 57,080 175 Deduct: Revenue received on issues of shares (2,796) (128) Net distributions for the year 54,284 47 Interest 1,842 6,985 Total finance costs 56,126 7,032 Distributions represented by: Net expense after taxation (374,193) (767,525) Allocations to capital: Performance fees 8,012 - Revenue deficit 420,465 767,430 Tax relief on capital management fees - 142 428,477 767,572 Net distributions for the year 54,284 47 7. DEBTORS US$ US$ Amounts receivable for issue of shares 66,578 21,208 Currency deals awaiting settlement 65,119 - Sales awaiting settlement 441,219 483,248 Accrued revenue: Overseas dividends 13,226 96,847 13,226 96,847 Prepaid expenses 87 81 Taxation recoverable: Overseas withholding tax 353 353 Total Debtors 586,582 601,737 106 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 8. CREDITORS US$ US$ Amounts payable on cancellation of shares 19,386 325,790 Currency deals awaiting settlement 65,470 - Purchases awaiting settlement - 238,591 Accrued expenses: Amounts payable to the ACD, associates of the ACD and agents of either of them: ACD's periodic charge 32,529 89,636 Amounts payable to the Depositary, associates of the Depositary and agents of either of them: Depositary's fees 1,327 2,863 Transaction charges 20,349 6,194 Safe custody and other bank charges 269 1,675 21,945 10,732 Other expenses: Administration fees 24,643 - Bank interest - 642 Fees paid to auditors - audit 19,248 19,226 German taxation fees 7,839 - Insurance premium 6,818 - Legal and professional fees 53,212 - Performance fees 8,012 - Printing costs 688 - Registration fees - 9,278 120,460 29,146 Total creditors 259,790 693,895 9. RELATED PARTY TRANSACTIONS Disclosure is made in note 9 of the Notes to the Aggregated Financial Statements. 10. SHAREHOLDERS FUNDS Disclosure is made in note 10 of the Notes to the Aggregated Financial Statements. 11. CONTNGENT LIABILITIES AND COMMITMENTS There are no contingent liabilities or outstanding commitments at the year end (30.11.12: Nil). Melchior Investment Funds 107

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS The main risks from the Fund s holding of financial instruments, together with the ACD s policy for managing these risks, are disclosed in note 12 of the Notes to the Aggregated Financial Statements. i The table below shows the interest rate risk profile: Interest rate risk US$ US$ Floating rate assets: Euro - 31 Pounds sterling 44,900 479,227 Swiss franc - 4,848 US dollar 824,433 145,839 869,333 629,945 Floating rate liabilities: Pound sterling (25,851) - US dollar (261,708) (1,170,432) (287,559) (1,170,432 Assets on which interest is not paid: Pounds sterling 329,657 1,349,664 US dollar 35,014,142 68,471,650 35,343,799 69,821,314 Liabilities on which interest is not paid: US dollar (587,785) (2,052,183) (587,785) (2,052,183) Net assets 35,337,788 67,228,644 The floating rate financial assets and liabilities comprise bank balances and overdrafts which earn or pay interest at rates linked to UK LIBOR or its international equivalents. There are no material amounts of non-interest bearing financial assets and liabilities other than equities, which do not have maturity dates. 108 Melchior Investment Funds

MELCHIOR NORTH AMERICAN OPPORTUNITIES FUND NOTES TO THE FINANCIAL STATEMENTS (continued) 12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS (continued) ii Foreign currency risk The table below shows the foreign currency risk profile: US$ US$ Currency: Euro - 31 Pounds sterling 348,706 1,828,891 Swiss franc - 4,848 348,706 1,833,770 US dollar 34,989,082 65,394,874 Net assets 35,337,788 67,228,644 iii Sensitivity analysis There were no derivatives of a material nature held by the Fund during the current or prior year. 13. PORTFOLIO TRANSACTION COSTS US$ US$ Analysis of total purchase costs Purchases in period before transaction costs 97,259,454 180,729,126 Transaction costs: Commissions 118,916 235,704 Stamp duty and other charges 109 3,016 119,025 238,720 Gross purchase total 97,378,479 180,967,846 Analysis of total sale costs Gross sales before transaction costs 144,169,947 226,337,203 Transaction costs: Commissions (142,852) (230,152) Other charges (4,186) (5,266) (147,038) (235,418) Total sales net of transaction costs 144,022,909 226,101,785 Melchior Investment Funds 109

GENERAL INFORMATION Structure of Melchior Investment Funds The Company is structured as an umbrella company, in that different sub-funds may be established from time to time by the ACD with the approval of the Financial Conduct Authority and the agreement of the Depositary. On the introduction of any new sub-fund or class, a revised Prospectus will be prepared setting out the relevant details of each sub-fund or class. The assets of each sub-fund will be treated as separate from those of every other sub-fund and will be invested in accordance with the investment objective and investment policy applicable to that sub-fund. Each sub-fund of Melchior Investment Funds has its own base currency. The sub-funds which are currently available and their respective base currencies are detailed below: Melchior Asian Opportunities Fund US dollars Melchior Global Equity Fund Pounds sterling Melchior Japan Advantage Fund Japanese yen Melchior North American Opportunities Fund US dollars In the future there may be other sub-funds of the Company. Classes of Shares The Company can issue Income and Accumulation Shares. Holders of Income shares are entitled to be paid the income attributable to such shares in respect of each annual or interim accounting period, as applicable for the relevant sub-fund. Holders of Accumulation shares are not entitled to be paid the income attributable to such shares, but that income is retained and accumulated for the benefit of shareholders and is reflected in the price of shares. Valuation Point The valuation point of the Funds with the exception of Melchior North American Opportunities Fund and Melchior Global Equity Fund is 11.00 hours on each business day. The valuation point for Melchior North American Fund and Melchior Global Equity Fund is 22.30 hours on each business day. Valuations may be made at other times under the terms contained within the Prospectus. Buying and Selling Shares The ACD will accept orders to deal in the shares on normal business days between 9.00am and 5.30pm. Instructions to buy or sell shares may be either in writing to: Thesis Unit Trust Management Limited, P.O. Box 3733, Royal Wootton Bassett, Swindon, SN4 4BG or by telephone on 0870 870 8439. A contract note will be issued by close of business on the next business day after the dealing date to confirm the transaction. 110 Melchior Investment Funds

GENERAL INFORMATION (continued) Prices The most recent buying and selling prices of shares are available on the website of the Investment Management Association at www.investmentuk.org under the heading Thesis Unit Trust Management Limited, P.O. Box 3733, Royal Wootton Bassett, Swindon, SN4 4BG or by calling 0870 870 8439 during the ACD s normal business hours. Other Information The Instrument of Incorporation, Prospectus, Key investor information documents and the most recent interim and annual reports may be inspected at the office of the ACD which is also the Head Office of the Company and copies may be obtained upon application. Shareholders who have any complaints about the operation of the Company should contact the ACD or the Depositary in the first instance. In the event that a shareholder finds the response unsatisfactory they may make their complaint direct to the Financial Ombudsman Service at South Quay Plaza, 183 Marsh Wall, London E14 9SR. Data Protection Shareholders names will be added to a mailing list which may be used by the ACD, its associates or third parties to inform investors of other products by sending details of such products. Shareholders who do not want to receive such details should write to the ACD requesting their removal from any such mailing list. Risk Warning An investment in an open-ended investment company should be regarded as a medium to long term investment. Investors should be aware that the price of shares and the income from them can fall as well as rise and investors may not receive back the full amount invested. Past performance is not a guide to future performance. Investments denominated in currencies other than the base currency are subject to fluctuation in exchange rates, which can be favourable or unfavourable. The assets of each sub-fund will generally be treated as separate from those of any other sub-fund and will be invested in accordance with the investment objective and policy applicable to that sub-fund. As each sub-fund is not a legal entity, if the assets attributable to any sub-fund were insufficient to meet the liabilities ascribed to it, the shortfall may have to be met out of the assets from other sub-funds. However, please note, on the 21 December 2011, the Open Ended Investment Companies Regulations 2011 (as amended) ( the Regulations ) were amended to introduce a Protected Cell Regime for OEICS. Under the Protected Cell Regime, each sub-fund represents a segregated portfolio of assets and accordingly, the assets of a sub-fund belong exclusively to that sub-fund and shall not be used or made available to discharge (directly or indirectly) the liabilities of, or claims against, any other person or body, including any other sub-funds, and shall not be available for such purpose. The Regulations allow a transitional period for implementation of the Protected Cell Regime, but it must be in place before 20 December 2013. As at the date of these accounts, the Protected Cell Regime has been implemented. Melchior Investment Funds 111

Thesis Unit Trust Management Limited Exchange Building St. John s Street Chichester West Sussex PO19 1UP www.tutman.co.uk