Halbjahresbericht

Transcription

Halbjahresbericht

2016 SEMI ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
Multi-Style, Multi-Manager Funds plc
an umbrella fund with segregated liability between sub-funds
31 March 2016
The European Small Cap Fund
The Eurozone Aggressive Equity Fund
The Global Real Estate Securities Fund
Contents
Administration of the Company ................................................................................................................................
2
Background to the Company ....................................................................................................................................
3
Combined Statements ..............................................................................................................................................
4
The European Small Cap Fund ................................................................................................................................
7
The Eurozone Aggressive Equity Fund ....................................................................................................................
16
The Global Real Estate Securities Fund ..................................................................................................................
26
Notes to the Financial Statements ...........................................................................................................................
41
Contents
Administration of the Company
Board of Directors of the Company*
Mr. James Firn (Chairman)
Mr. James Beveridge
Mr. Peter Gonella
Mr. Neil Jenkins
Mr. John McMurray
Mr. Tom Murray
Mr. William Roberts
Mr. David Shubotham
Mr. Kenneth Willman
Members of the Manager’s Audit Committee
Mr. David Shubotham (Chairman)
Mr. Tom Murray
Mr. William Roberts
Registered Office
78 Sir John Rogerson’s Quay
Dublin 2
Ireland
Manager
Russell Investments Ireland Limited
Dublin 2
Ireland
Independent Auditors
PricewaterhouseCoopers
Chartered Accountants and Statutory Audit Firm
One Spencer Dock
North Wall Quay
Dublin 1
Ireland
Legal Adviser
Maples and Calder
75 St. Stephen’s Green
Dublin 2
Ireland
Administrator
State Street Fund Services (Ireland) Limited
Dublin 2
Ireland
Custodian and Trustee
State Street Custodial Services (Ireland) Limited
Dublin 2
Ireland
Company Secretary
MFD Secretaries Limited
2nd Floor, Beaux Lane House
Mercer Street Lower
Dublin 2
Ireland
Paying and Information Agent in Austria
UniCredit Bank Austria AG
Schottengasse 6-8
1010 Vienna
Austria
Paying and Centralising Agent in France
Société Générale
29, boulevard Haussmann
75009 Paris
France
Paying and Information Agent in Germany**
Marcard, Stein & Co AG
Ballindamm 36
20095 Hamburg
Germany
Representative Agent in Italy
BNP Paribas
Via Ansperto, 5
20123 Milan
Italy
Paying Agent in Italy
SGSS S.p.A.
Via Benigno Crespi, 19/A
20159 Milan
Italy
Adviser and Distributor
Russell Investments Limited
Rex House
10 Regent Street, St James’
London SW1Y 4PE
England
* As of 31 March 2016.
** The Company’s Memorandum and Articles of Association, the Prospectus, the Key Investor Information Documents, the unaudited semiannual reports, as well as the audited annual reports can be obtained free of charge from the office of the paying and information agent via
regular mail or per e-mail. The net asset value of each of the Funds and the subscription and redemption prices of the shares of the Funds are
published jointly and daily on “www.fundinfo.com” for information purposes only and do not constitute an invitation to subscribe for or
repurchase the Company’s shares at those prices.
There have been no changes to Money Managers during the period.
2 Administration of the Company
Background to the Company
Multi-Style, Multi-Manager Funds plc (the “Company”) was incorporated in Ireland as a public limited company on 7 May 1998.
The Company operates under the Companies Act 2014 and has been authorised since 8 July 1998 by the Central Bank of Ireland
(the “Central Bank”).
The Company is an open-ended investment company with variable capital which is authorised by the Central Bank under the
European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) (the
“UCITS Regulations”).
The Company is organised in the form of an umbrella fund with segregated liability between sub-funds and as at 31 March 2016,
had three constituent funds available for investment (each a “Fund” collectively the “Funds”).
Please see each Fund’s Manager’s Report for details of the investment objectives of the particular Fund.
The Adviser, the Manager and their affiliated group companies are referred to collectively as “Russell Investments” in these
financial statements.
The net assets under management for the Company at 31 March 2016 amounted to EUR 475,247,416 (30 September 2015: EUR
488,252,856 and 31 March 2015: EUR 501,322,572) are broken down as follows:
Net Assets
31 March 2016
‘000
Net Assets
30 September 2015
‘000
Net Assets
31 March 2015
‘000
Funded during
the year ended
Functional
Currency
30 September 2000
30 September 2005
EUR
EUR
90,972
161,601
90,897
176,455
85,822
161,714
30 September 2006
USD
253,748
246,581
272,566
Fund
The Company intends to apply to the Central Bank to revoke the approval of The Actions France Fund, The Core Eurozone
Equity Fund, The Global Bond Fund, The Global Bond (Euro Hedged) Fund, The Pacific Basin (ex Japan) Equity Fund and The
Pan European Equity Fund following the final disbursement of assets in the Funds.
The Central Bank approved the withdrawal of approval of The U.S. Equity Fund on 18 January 2016.
All share classes are Roll-Up Class Shares unless otherwise indicated in the name of the share class.
All references to “net assets” throughout this document refer to net assets attributable to holders of redeemable participating
shares unless otherwise stated.
Notice to the Shareholders: Removal of Investment Manager reports in Semi Annual financial statements
The Investment Manager reports are no longer included in the semi annual financial statements. For information regarding six
months Fund performance and market commentary please contact the client executive. Alternatively please email
[email protected]
During the period, there has been no change to investment objective as stated within the Prospectus.
Background to the Company 3
Combined Balance Sheet
As at 31 March 2016
Total
31 March 2016
(Unaudited)
EUR ‘000
Assets
Financial assets at fair value through profit or loss ...................................................
472,267
Total
30 September 2015
(Audited)
EUR ‘000
483,412
Cash at bank ......................................................................................................................................................................................
2,451
2,138
Cash held with brokers and counterparties for open financial derivative
instruments ........................................................................................................................................................................................
3,042
3,424
Debtors:
Receivable for investments sold ......................................................................
Receivable on fund shares issued ....................................................................
Dividends receivable .............................................................................................
Prepayments and other debtors .................................................................................
Liabilities
Financial liabilities at fair value through profit or loss .............................................
Creditors – amounts falling due within one year:
Payable for investments purchased ..................................................................
Payable on fund shares redeemed .......................................................................
Distributions payable on income share classes ...................................................
Management fees payable ....................................................................................
Custodian and Trustee fees payable .......................................................................
Sub-custodian fees payable ..........................................................................................
Administration fees payable ....................................................................................
Audit fees payable ....................................................................................................
Net assets attributable to redeemable participating shareholders ..................
The accompanying notes are an integral part of the financial statements.
4 Combined Balance Sheet
1,861
65
1,232
480,918
571
40
1,157
46
490,788
(724)
(1,224)
(4,107)
(39)
(159)
(536)
(6)
(54)
(23)
(23)
(5,671)
(642)
(13)
(2)
(529)
(7)
(63)
(10)
(45)
(2,535)
475,247
488,253
Combined Profit and Loss Account
For the six months ended 31 March 2016
Total
Six months ended
31 March 2016
(Unaudited)
EUR ‘000
Income
Dividends .......................................................................................................................
Other income .................................................................................................................
Total
Six months ended
31 March 2015*
(Unaudited)
EUR ‘000
5,840
61
5,901
4,302
4,302
Net gain (loss) on investment activities ............................................................................
12,547
52,610
Total investment income (expense) .....................................................................
18,448
56,912
Expenses
Management fees ...........................................................................................................
Custodian and Trustee fees ............................................................................................
Sub-custodian fees .........................................................................................................
Administration and transfer agency fees ........................................................................
Audit fees .......................................................................................................................
Professional fees ............................................................................................................
Other fees .......................................................................................................................
Total operating expenses ........................................................................................
(3,301)
(22)
(185)
(115)
(23)
(32)
(113)
(3,791)
(2,756)
(9)
(195)
(108)
(21)
(52)
(27)
(3,168)
Net income (expense) ............................................................................................
14,657
53,744
Finance costs
Distributions ..................................................................................................................
Profit (loss) for the financial period before taxation ............................................
(1,148)
13,509
(801)
52,943
Taxation
Withholding tax .........................................................................................................................................
(845)
(597)
Net increase (decrease) in net assets attributable to redeemable
participating shareholders resulting from operations .........................................
12,664
52,346
All amounts in respect of the six months ended 31 March 2016 arose solely from continuing operations. There are no recognised gains or losses
other than those dealt with in the Profit and Loss Account.
* The Combined Profit and Loss Account and the Profit and Loss Account of the individual Funds for the six month ended 31 March 2015 have been restated due
to a change in the accounting policy for valuation of investments. See note 1 to the financial statements for details of changes to the Company's accounting
policies.
Combined Profit and Loss Account 5
Combined Statement of Changes in Net Assets Attributable to Redeemable Participating
Shareholders
Total
Six months ended
31 March 2016
(Unaudited)
EUR ‘000
participating shareholders resulting from operations .....................................
12,664
Total
Six months ended
31 March 2015
(Unaudited)
EUR ‘000
52,346
Share transactions
Reinvestment of deemed distributions on accumulation shares ..........................................
981
Net increase (decrease) in net assets resulting from redeemable participating
share transactions ................................................................................................................. .....................
(21,885)
42,520
Total net increase (decrease) in net assets attributable to redeemable
participating shareholders .....................................................................................
(8,240)
95,665
Currency translation (Note 2) ............................................................................................
(4,766)
37,289
Net assets attributable to redeemable participating shareholders
Beginning of period .............................................................................................................
488,253
368,369
End of period .......................................................................................................................
475,247
501,323
6 Combined Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders
799
Balance Sheet
As at 31 March 2016
31 March 2016
(Unaudited)
EUR ‘000
Assets
Financial assets at fair value through profit or loss (Note 1) ..................................
Cash at bank (Note 2) ........................................................................................................
instruments (Note 2) ..........................................................................................................
Debtors:
Receivable for investments sold ............................................................................
Receivable for fund shares issued .............................................................................
Dividends receivable .................................................................................................
Prepayments and other debtors ...................................................................................
Liabilities
Financial liabilities at fair value through profit or loss (Note 1) ...............................
Payable for investments purchased .....................................................................
Payable on fund shares redeemed .......................................................................
Management fees payable ...................................................................................
Custodian and Trustee fees payable ....................................................................
Sub-custodian fees payable .................................................................................
Administration fees payable ...............................................................................
Audit fees payable ..............................................................................................
Net assets attributable to redeemable participating shareholders ..........................
30 September 2015
(Audited)
EUR ‘000
91,527
89,378
787
487
1,100
1,200
351
4
161
93,930
90
171
12
91,338
(25)
(90)
(2,807)
(3)
(102)
(1)
(9)
(5)
(6)
(2,958)
(220)
(107)
(1)
(9)
(2)
(12)
(441)
90,972
90,897
The European Small Cap Fund 7
Profit and Loss Account
Six months ended
31 March 2016
(Unaudited)
EUR ‘000
Six months ended
31 March 2015
(Unaudited)
EUR ‘000
Income
Dividends ........................................................................................................................
510
234
Net gain (loss) on investment activities .............................................................................
(1,383)
15,324
Total investment income (expense) ............................................................................
(873)
15,558
Expenses
Management fees (Note 3) ..........................................................................................
Custodian and Trustee fees (Note 4) ...........................................................................
Sub-custodian fees (Note 4) ........................................................................................
Administration and transfer agency fees (Note 4) ......................................................
Audit fees ....................................................................................................................
Professional fees .........................................................................................................
Other fees ....................................................................................................................
Total operating expenses .............................................................................................
(631)
(4)
(33)
(25)
(6)
(8)
(27)
(734)
(437)
(2)
(33)
(21)
(6)
(8)
(5)
(512)
Profit (loss) for the financial period before taxation ................................................
(1,607)
15,046
Taxation
Withholding tax (Note 7) ............................................................................................
(10)
(4)
participating shareholders resulting from operations ..............................................
(1,617)
15,042
All amounts are solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss
Account.
8 The European Small Cap Fund
Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders
Six months ended
31 March 2016
(Unaudited)
EUR ‘000
Six months ended
31 March 2015
(Unaudited)
EUR ‘000
(1,617)
15,042
Share transactions
share transactions (Note 8) ...........................................................................................
1,692
11,285
participating shareholders ..........................................................................................
75
26,327
Beginning of period .....................................................................................................
90,897
59,495
End of period ................................................................................................................
90,972
85,822
Schedule of Investments
31 March 2016
Number
of Shares
70,000
32,500
15,000
23,000
31,000
Fair Value
EUR ‘000
Transferable Securities (92.68%)
Common Stock (92.68%)
Austria (4.22%)
Building Products
Wienerberger AG ................
1,182
Insurance
Vienna Insurance Group AG
Wiener Versicherung
Gruppe .................................
605
Machinery
Andritz AG ..........................
724
Miscellaneous Manufacturers
RHI AG ...............................
395
Semiconductor Equipment and Products
Ams AG ..............................
936
3,842
Belgium (0.87%)
Telecommunications
40,000 Mobistar SA ........................
Fund
%
Number
of Shares
1.30
0.66
0.80
0.43
1.03
4.22
133,773 Altran Technologies SA ......
8,950 Teleperformance .................
Distributors
95,000 Rexel SA .............................
Electrical Equipment
30,000 Nexans SA ..........................
Entertainment
138,800 Technicolor SA ...................
Health Care Providers and Services
31,300 Korian SA ...........................
12,750 Orpea ..................................
Insurance
60,000 Coface SA ...........................
Media
Societe Television
100,000 Francaise 1 ..........................
787
0.87
24,300
463
0.51
28,500
Denmark (1.43%)
Building Products
5,000 Rockwool International A/S
Software
14,950 SimCorp A/S .......................
14,650
698
0.77
606
0.66
1,304
1.43
17,000
Finland (2.09%)
Commercial Services and Supplies
80,000 Ramirent OYJ ......................
460
Hand and Machine Tools
20,000 Konecranes OYJ ..................
420
Machinery
105,000 Valmet OYJ .........................
1,016
1,896
28,500
41,500
12,500
26,000
59,000
16,000
France (16.05%)
Advertising
Ipsos ....................................
585
Auto Components
Faurecia ...............................
1,382
Beverages
Remy Cointreau SA ............
834
Building Products
Imerys SA ...........................
1,594
Europcar Groupe SA ...........
562
Computers and Peripherals
Alten SA ..............................
863
8,000
5,700
0.51
14,800
0.46
19,000
1.12
2.09
17,000
18,500
0.64
1.52
75,500
0.92
1.75
163,997
0.62
50,200
0.95
88,270
Fund
%
1,629
691
1.79
0.76
1,193
1.31
1,186
1.30
762
0.84
810
933
0.89
1.03
435
0.48
1,138
1.25
14,597 16.05
10,900
Canada (0.51%)
Distributors
242,000 Entertainment One Ltd ........
Fair Value
EUR ‘000
Germany (7.23%)
Advertising
Stroeer SE & Co KGaA ......
Auto Components
Hella KGaA Hueck & Co ...
Banks
Aareal Bank AG .................
Biotechnology
Morphosys AG ...................
Wirecard AG .......................
Vossloh AG ........................
KUKA AG ..........................
Hotels, Restaurants and Leisure
CTS Eventim AG & Co
KGaA ..................................
Internet Software and Services
Scout24 AG ........................
Office Electronics
SLM Solutions Group AG ..
Telecommunications
Drillisch AG .......................
602
0.66
906
1.00
812
0.89
621
0.68
566
0.62
462
0.51
525
0.58
462
0.51
580
0.64
377
0.41
667
0.73
6,580
7.23
Ireland (4.40%)
Agriculture
Origin Enterprises Plc .........
507
Banks
Permanent TSB Group
Holdings Plc .......................
446
Building Products
Kingspan Group Plc ............
1,172
UDG Healthcare Plc ...........
650
0.56
0.49
1.29
0.72
Schedule of Investments - continued
31 March 2016
Number
of Shares
Fair Value
EUR ‘000
Paper and Forest Products
Smurfit Kappa Group
54,000 Plc .......................................
Isle Of Man (1.94%)
136,500 Paysafe Group Plc ...............
Software
94,500 Playtech Plc .........................
1,223
1.34
3,998
4.40
729
1,033
1,762
130,000
55,000
70,000
105,800
125,500
50,000
116,700
17,500
4,350
28,200
1,800,000
180,000
13,000
40,000
Italy (11.76%)
Banks
Banca Popolare dell'Emilia
Romagna SC .......................
Banco Popolare SC ..............
Credito Emiliano SpA .........
FinecoBank Banca Fineco
SpA .....................................
Building Products
Buzzi Unicem SpA ..............
Distributors
Safilo Group SpA ................
Diversified Financials
Anima Holding SpA ............
Banca IFIS SpA ...................
Reply SpA ...........................
Yoox Net-A-Porter Group
SpA .....................................
Real Estate Investment Trust
Beni Stabili SpA SIIQ .........
Retail Trade
Autogrill SpA ......................
Textile and Apparel
Tod's SpA ............................
Transport
Ansaldo STS SpA ...............
Fund
%
0.80
Number
of Shares
Fair Value
EUR ‘000
Oil and Gas Services
62,200 SBM Offshore NV ..............
695
21,600 ASM International NV ........
850
BE Semiconductor Industries
21,200 NV ......................................
511
Software
89,800 TomTom NV ......................
770
1.14
1.94
544
332
421
0.60
0.37
0.46
783
0.86
1,906
2.10
392
0.43
750
509
0.82
0.56
566
0.62
Norway (1.47%)
Media
30,200 Schibsted ASA ....................
TGS Nopec Geophysical Co
41,800 ASA ....................................
Portugal (0.67%)
Media
104,600 NOS SGPS SA ....................
Spain (1.01%)
Prosegur Cia de Seguridad
100,000 SA .......................................
Media
Atresmedia Corp de Medios
44,000 de Comunicacion SA ..........
761
0.84
1,187
1.30
200,000
1,316
1.45
48,700
814
0.89
11,400
420
0.46
47,800
Sweden (3.12%)
Lodging
Rezidor Hotel Group AB ....
Metals and Mining
Boliden AB .........................
Indutrade AB ......................
Oil and Gas
Lundin Petroleum AB .........
10,701 11.76
Jersey, Channel Islands (1.38%)
165,000 UBM Plc .............................
1,251
28,800
31,400
98,000
23,900
17,100
Netherlands (8.38%)
Chemicals
IMCD Group NV ................
947
Brunel International
NV .......................................
581
USG People NV ..................
1,703
Euronext NV .......................
872
Flow Traders .......................
697
1.38
840
80,000
2,900
1.04
13,600
0.64
1.87
0.96
0.76
2,650
16,900
Switzerland (3.55%)
Machinery
Conzzeta AG .......................
OC Oerlikon Corp AG ........
Other Finance
Leonteq AG ........................
Software
Temenos Group AG ............
Telecommunications
U-Blox AG .........................
Transport
Gategroup Holding AG .......
Fund
%
0.76
0.94
0.56
0.85
7,626
8.38
775
0.85
560
0.62
1,335
1.47
613
0.67
495
0.54
424
0.47
919
1.01
831
0.91
685
0.75
615
0.68
711
0.78
2,842
3.12
493
727
0.54
0.80
242
0.27
656
0.72
449
0.49
666
0.73
3,233
3.55
31 March 2016
Number
of Shares
153,600
217,100
58,300
700,000
266,593
85,000
60,000
81,600
830,000
140,000
108,327
107,200
97,896
690,000
195,000
22,800
95,000
52,700
15,300
145,600
Fair Value
EUR ‘000
United Kingdom (22.60%)
Banks
Virgin Money Holdings UK
Plc .......................................
715
Chemicals
Elementis Plc .......................
656
Babcock International Group
Plc .......................................
698
Hays Plc ..............................
1,069
ITE Group Plc .....................
494
Michael Page International
Plc .......................................
458
Construction and Engineering
Kier Group Plc ....................
972
Containers and Packaging
RPC Group Plc ....................
782
Distributors
SIG Plc ................................
1,529
ICAP Plc .............................
838
IG Group Holdings Plc ........
1,093
Intermediate Capital
Group ..................................
836
Entertainment
Cineworld Group Plc ...........
664
Environmental Control
Shanks Group Plc ................
722
Food Products
SSP Group Plc .....................
713
Home Builders
Bellway Plc .........................
754
Home Furnishings
Howden Joinery Group
Plc .......................................
573
Insurance
St James's Place Plc .............
611
ASOS Plc ............................
627
Just Eat Plc ..........................
693
Fund
%
Number
of Shares
0.79
0.72
0.77
1.18
0.54
0.50
Fair Value
EUR ‘000
Media
150,000 Informa Plc .........................
205,000 Morgan Crucible Co Plc .....
145,000 Senior Plc ............................
150,000 Vesuvius Plc .......................
Pharmaceuticals
67,400 BTG Plc ..............................
Retail Trade
225,000 Home Retail Group Plc .......
18,000 Travis Perkins Plc ...............
Transport
580,000 Firstgroup Plc .....................
1.07
0.86
Fund
%
1,313
1.44
587
417
628
0.65
0.46
0.69
528
0.58
471
415
0.52
0.45
707
0.78
20,563 22.60
Total Common Stock ........
Total Transferable
Securities ...........................
84,312 92.68
84,312 92.68
1.68
0.92
1.20
0.92
0.73
0.79
0.78
0.83
0.63
0.67
Investment funds (7.86%)
Ireland (7.86%)
Russell Investment Company
III plc The Sterling Liquidity
Fund - Class R Roll-Up
280 Shares ...............................
III plc The US Dollar Cash Fund
II - Class R Roll-Up
6 Shares ...............................
plc Russell Euro Liquidity
6,810 Shares ...............................
Total Investment funds .....
Total Investments
excluding Financial
Derivative Instruments .....
354
0.39
5
0.01
6,793
7.46
7,152
7.86
91,464 100.54
0.69
0.76
Financial Derivative Instruments (0.04%)
Open Futures Contracts (0.06%)
Notional
Amount
EUR ‘000
Average
Cost Price
EUR
1,072
7,654.00
732
385.16
Unrealised
Gain (Loss)
EUR ‘000
14 of FTSE 100 Index Futures
Long Futures Contracts
Expiring June 2016 ........................................................................................................
8
0.01
38 of Stoxx Euro Mid 200
Expiring June 2016 .........................................................................................................
10
0.01
Fund
%
31 March 2016
Notional
Amount
EUR ‘000
Average
Cost Price
EUR
3,719
239.15
Unrealised
Gain (Loss)
EUR ‘000
Fund
%
311 of Stoxx Euro Small 20 Index Futures
Expiring June 2016 .........................................................................................................
35
0.04
53
0.06
Net unrealised gain (loss) on open futures contracts ....................................................
Open Forward Foreign Currency Exchange Contracts ((0.02)%)
Settlement
Date
Amount
Bought ‘000
Amount
Sold ‘000
Unrealised
Gain (Loss)
EUR ‘000
Fund
%
15/06/2016
EUR
205 GBP
160
4
15/06/2016
EUR
63 GBP
50
1
15/06/2016
EUR
635 GBP
500
5
15/06/2016
GBP
820 EUR
1,039
(7)
15/06/2016
GBP
816 EUR
1,046
(18)
Unrealised gain on open forward foreign currency exchange contracts ................................
10
Unrealised loss on open forward foreign currency exchange contracts .................................
(25)
(15)
Net unrealised gain (loss) on open forward foreign currency exchange contracts .............................
Total Financial Derivative Instruments ................................................................................................. 38
Fair Value
EUR ‘000
0.00
0.00
0.01
(0.01)
(0.02)
0.01
(0.03)
(0.02)
0.04
Fund
%
Total Financial Assets at Fair Value through Profit or
91,527
100.61
Loss (100.61%) ....................................................................................................................
Total Financial Liabilities at Fair Value through Profit or
(25)
(0.03)
Loss ((0.03)%) ......................................................................................................................
Net Financial Assets at Fair Value through Profit or Loss
91,502
100.58
(100.58%) ..................................................................................................................................................
(530)
(0.58)
Other Net Liabilities ((0.58)%) ...............................................................................................................
90,972
100.00
Net Assets ..................................................................................................................................................
% of
gross assets
Analysis of gross assets
Transferable securities admitted to an official stock exchange listing ...................................................................
Investment funds (UCITS) .......................................................................................................................................
Over the counter financial derivative instruments .................................................................................................
Exchange traded financial derivative instruments .................................................................................................
Other assets ............................................................................................................................................................
89.76
7.61
0.01
0.06
2.56
100.00
The broker for the open futures contracts is Morgan Stanley.
The counterparties for the open forward foreign currency exchange contracts are:
Bank of America
Citibank
State Street Bank & Trust Company
31 March 2016
Fair Value Hierarchy (Note 1 e))
The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type)
measured at fair value at 31 March 2016 and 30 September 2015.
As at 31 March 2016
Level 1
EUR ‘000
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
Transferable securities ...............................................................
Investment funds ........................................................................
Unrealised gain on open futures contracts .....................................
Unrealised gain on forward foreign currency exchange
contracts ........................................................................................
Total assets ......................................................................................
Level 2
EUR ‘000
Level 3
EUR ‘000
Total
EUR ‘000
84,312
53
7,152
-
84,312
7,152
53
84,365
10
7,162
10
91,527
-
(25)
(25)
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange
contracts ........................................................................................
Total liabilities ................................................................................
-
(25)
(25)
As at 30 September 2015
Level 1
EUR ‘000
Assets
Transferable securities ...............................................................
contracts ........................................................................................
Total assets ......................................................................................
Level 3
EUR ‘000
Total
EUR ‘000
86,355
-
3,019
-
86,355
3,019
86,355
4
3,023
-
4
89,378
(67)
-
-
(67)
(67)
(23)
(23)
-
(23)
(90)
Liabilities
Unrealised loss on open futures contracts .....................................
contracts ........................................................................................
Level 2
EUR ‘000
Statement of Changes in Composition of Portfolio
Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 31 March 2016
Portfolio Securities
Russell Investment Company plc
Russell Euro Liquidity Fund
Class R Roll-Up Shares
Ams AG
Boliden AB
Euronext NV
ICAP Plc
Lundin Petroleum AB
Buzzi Unicem SpA
Intermediate Capital Group Plc
Virgin Money Holdings UK Plc
RPC Group Plc
Mobistar SA
SBM Offshore NV
Rockwool International A/S
Scout24 AG
Korian SA
Babcock International Group Plc
TGS Nopec Geophysical Co ASA
Europcar Groupe SA
Stroeer SE & Co KGaA
Leonteq AG
Acquisition Cost
EUR ‘000
25,235
1,389
1,183
1,162
1,135
1,049
930
929
908
908
851
796
750
749
731
704
667
618
586
577
Disposal Proceeds
EUR ‘000
Paddy Power Plc
TNT Express NV
Banca Popolare di Milano Scarl
Sports Direct International Plc
Aalberts Industries NV
Ubisoft Entertainment
Teleperformance
International Personal Finance Plc
Restaurant Group Plc
Trelleborg AB
Gaztransport Et Technigaz SA
Korian SA
Flow Traders
Leoni AG
TomTom NV
Arcadis NV
Recordati SpA
Wirecard AG
Altran Technologies SA
(21,205)
(1,508)
(1,113)
(1,003)
(956)
(874)
(858)
(831)
(820)
(809)
(742)
(682)
(666)
(624)
(619)
(619)
(605)
(586)
(532)
(528)
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s
Administrator or from the paying agent or paying and information agents in each country of distribution.
Balance Sheet
As at 31 March 2016
31 March 2016
(Unaudited)
EUR ‘000
Assets
Financial assets at fair value through profit or loss (Note 1) .............................................
Cash at bank (Note 2) ........................................................................................................
Cash held with brokers and counterparties for open derivative instruments
(Note 2) .............................................................................................................................
Debtors:
Receivable for investments sold ......................................................................
Dividends receivable .......................................................................................
Prepayments and other debtors .......................................................................................
Liabilities
Financial liabilities at fair value through profit or loss (Note 1) .......................................
Payable for investments purchased ..................................................................
Payable on fund shares redeemed ....................................................................
Management fees payable ...............................................................................
Custodian and Trustee fees payable ................................................................
Sub-custodian fees payable .............................................................................
Administration fees payable ............................................................................
Audit fees payable ...........................................................................................
Net assets attributable to redeemable participating shareholders ........................
16 The Eurozone Aggressive Equity Fund
30 September 2015
(Audited)
EUR ‘000
159,224
173,885
593
910
1,339
1,740
568
390
162,114
70
324
16
176,945
(7)
(255)
(243)
(31)
(205)
(2)
(8)
(9)
(8)
(513)
(198)
(2)
(15)
(4)
(16)
(490)
161,601
176,455
Six months ended
31 March 2016
(Unaudited)
EUR ‘000
Six months ended
31 March 2015
(Unaudited)
EUR ‘000
Income
Dividends ...........................................................................................................
1,014
686
Net gain (loss) on investment activities ......................................................................
(326)
21,242
Total investment income (expense) .........................................................................
688
21,928
Expenses
Management fees (Note 3) .................................................................................
Custodian and Trustee fees (Note 4) ..................................................................
Sub-custodian fees (Note 4) ...............................................................................
Administration and transfer agency fees (Note 4) ............................................
Audit fees .........................................................................................................
Professional fees ..............................................................................................
Other fees .........................................................................................................
Total operating expenses ..........................................................................................
(1,250)
(8)
(26)
(38)
(8)
(11)
(44)
(1,385)
(815)
(4)
(37)
(28)
(6)
(15)
(9)
(914)
Profit (loss) for the financial period before taxation .............................................
(697)
21,014
(68)
(33)
(765)
20,981
Taxation
Withholding tax (Note 7) .................................................................................
participating shareholders resulting from operations ...........................................
All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss
Account.
The Eurozone Aggressive Equity Fund 17
Six months ended
31 March 2016
(Unaudited)
EUR ‘000
participating shareholders resulting from operations ...........................................
Six months ended
31 March 2015
(Unaudited)
EUR ‘000
(765)
20,981
Share transactions
share transactions (Note 8) ...................................................................................
(14,089)
36,960
participating shareholders .......................................................................................
(14,854)
57,941
Beginning of period .............................................................................................
176,455
103,773
End of period ........................................................................................................
161,601
161,714
31 March 2016
Number
of Shares
Fair Value
EUR ‘000
Austria (0.10%)
Real Estate
35,948 Immofinanz AG ..................
Transport
4,275 Oesterreichische Post AG ....
22,051
11,000
32,036
110,000
9,350
13,315
13,023
8,034
8,895
1,162
39,399
132,500
23,250
25,500
79,182
127,500
24,200
61,280
26,040
Belgium (2.76%)
Beverages
Anheuser-Busch InBev
NV .......................................
Distributors
D'ieteren NV .......................
Household Products
Ontex Group NV .................
AGFA-Gevaert NV .............
Telecommunications
Proximus SADP ..................
Finland (1.02%)
Insurance
Sampo OYJ .........................
Machinery
Kone OYJ ............................
Pharmaceuticals
Orion OYJ ...........................
Telecommunications
Elisa OYJ ............................
France (33.30%)
Aerospace and Defence
Dassault Aviation SA ..........
Zodiac Aerospace ................
Airlines
Air France-KLM .................
Auto Components
Cie Generale des
Etablissements Michelin ......
Automobiles
Renault SA ..........................
Banks
BNP Paribas SA ..................
Credit Agricole SA ..............
Societe Generale SA ............
Building Products
Cie de Saint-Gobain ............
Imerys SA ...........................
Fund
%
-
0.00
153
0.10
153
0.10
2,409
1.49
407
0.25
923
0.57
431
0.27
281
0.18
4,451
2.76
556
0.34
552
0.34
233
0.15
304
0.19
1,645
1.02
1,225
694
0.76
0.43
1,108
0.68
2,091
1.29
2,227
1.38
3,502
1,214
786
2.17
0.75
0.48
2,373
1,596
1.47
0.99
Number
of Shares
Fair Value
EUR ‘000
11,500 Assystem .............................
274
52,763 Bureau Veritas SA ..............
1,033
15,977 Edenred ...............................
273
15,350 Atos SE ...............................
1,099
24,200 Cap Gemini SA ...................
1,998
14,177 Ingenico Group SA .............
1,431
22,800 Bouygues SA ......................
817
8,250 FFP .....................................
545
48,250 Legrand SA .........................
2,376
14,538 Schneider Electric SE .........
807
Food Products
22,300 Carrefour SA .......................
539
4,612 Sodexo SA ..........................
437
Health Care Equipment and Supplies
14,512 Essilor International SA ......
1,575
14,549 Orpea ..................................
1,065
Home Furnishings
15,917 SEB SA ...............................
1,451
Household Products
7,219 Societe BIC SA ...................
954
Insurance
128,200 AXA SA .............................
2,652
14,911 CNP Assurances .................
204
17,857 SCOR SE ............................
557
Lodging
18,600 Accor SA ............................
693
9,000 Pierre & Vacances SA ........
286
Media
9,136 Metropole Television SA ....
146
Metals and Mining
82,500 Vallourec SA ......................
474
Oil and Gas
89,597 Total SA ..............................
3,589
22,500 Bourbon SA ........................
296
18,600 Technip SA .........................
906
Personal Products
4,592 L'Oreal SA ..........................
723
Pharmaceuticals
38,914 Sanofi ..................................
2,757
Retail Trade
7,720 Kering .................................
1,213
Software
8,475 Dassault Systemes ..............
591
Fund
%
0.17
0.64
0.17
0.68
1.24
0.88
0.51
0.34
1.47
0.50
0.33
0.27
0.97
0.66
0.90
0.59
1.64
0.13
0.34
0.43
0.18
0.09
0.29
2.22
0.18
0.56
0.45
1.71
0.75
0.37
31 March 2016
Number
of Shares
Fair Value
EUR ‘000
Telecommunications
212,895 Orange SA ...........................
Textile and Apparel
LVMH Moet Hennessy
13,031 Louis Vuitton SE .................
Fund
%
3,278
2.03
1,961
1.21
Number
of Shares
53,816 33.30
6,114
13,415
5,580
115,624
55,000
14,400
17,412
14,670
6,807
7,450
10,825
4,780
6,857
19,657
874
5,500
3,543
4,283
24,600
50,000
28,466
21,581
9,378
19,000
142,500
Germany (20.87%)
Auto Components
Continental AG ...................
Norma Group SE .................
Automobiles
Bayerische Motoren Werke
AG .......................................
Banks
Commerzbank AG ..............
Deutsche Bank AG ..............
Building Products
HeidelbergCement AG ........
Chemicals
BASF SE .............................
Brenntag AG .......................
Evonik Industries AG ..........
Linde AG .............................
Symrise AG .........................
Bechtle AG ..........................
Deutsche Boerse AG ...........
Fresenius SE & Co
KGaA ..................................
Home Furnishings
Rational AG ........................
Insurance
Allianz SE ...........................
Hannover Rueck SE ............
Muenchener
RueckversicherungsGesellschaft AG in
Muenchen ............................
United Internet AG ..............
Iron and Steel
Salzgitter AG .......................
Machinery
GEA Group AG ...................
Media
Axel Springer SE .................
ProSiebenSat.1 Media
SE ........................................
Metals and Mining
Aurubis AG .........................
Kloeckner & Co SE .............
1,223
660
0.76
0.41
450
0.28
883
822
0.55
0.51
19,783 Siemens AG ........................
1,843
Pharmaceuticals
16,217 Bayer AG ............................
1,675
8,370 Merck KGaA ......................
614
Retail Trade
10,841 Hugo Boss AG ....................
625
19,694 Takkt AG ............................
332
115,658 Infineon Technologies AG ..
1,446
Software
48,795 SAP SE ...............................
3,469
Telecommunications
197,966 Deutsche Telekom AG ........
3,123
Telefonica Deutschland
48,197 Holding AG ........................
229
Fund
%
1.14
1.04
0.38
0.39
0.20
0.89
2.15
1.93
0.14
33,731 20.87
1,084
0.67
1,154
736
179
954
639
0.71
0.46
0.11
0.59
0.40
434
0.27
514
72,500
46,322
8,202
10,315
0.32
1,262
0.78
411
0.25
786
363
0.49
0.22
44,295
1,227,588
372,000
45,000
24,180
275,000
29,892
766
0.47
1,085
0.67
1,244
0.77
1,224
0.76
1,022
0.63
424
0.26
70,000
831
1,225
0.51
0.76
347,868
10,491
135,000
26,041
Fair Value
EUR ‘000
Ireland (2.69%)
Building Products
CRH Plc ..............................
Kingspan Group Plc ............
Food Products
Kerry Group Plc ..................
Oil and Gas
DCC Plc ..............................
1,800
1,082
1.11
0.67
672
0.42
800
0.49
4,354
2.69
Italy (12.12%)
Banks
Banca Generali SpA ...........
1,145 0.71
Intesa Sanpaolo SpA ...........
2,988 1.85
UniCredit SpA ....................
1,179 0.73
ASTM SpA .........................
457 0.28
Atlantia SpA .......................
589 0.37
Astaldi SpA .........................
1,118 0.69
Distributors
MARR SpA ........................
529 0.33
Industria Macchine
Automatiche SpA ................
541 0.33
Holding Companies - Diversified Operations
CIR-Compagnie Industriali
Riunite SpA ........................
140 0.09
Home Furnishings
De' Longhi SpA ..................
521 0.32
Machinery
Danieli & C Officine
Meccaniche SpA .................
963 0.59
Media
Mediaset SpA .....................
1,261 0.78
31 March 2016
Number
of Shares
Fair Value
EUR ‘000
Oil and Gas
248,196 Eni SpA ...............................
175,000 Saras SpA ............................
Retail Trade
10,824 Luxottica Group SpA ..........
Salvatore Ferragamo
36,871 SpA .....................................
Telecommunications
3,437,731 Telecom Italia SpA ..............
Fund
%
3,301
247
2.04
0.15
525
0.33
828
0.51
3,259
2.02
19,591 12.12
5,180
180,000
3,086
72,885
16,602
Luxembourg (2.38%)
Eurofins Scientific SE .........
1,670
Iron and Steel
ArcelorMittal .......................
716
Media
RTL Group SA ....................
230
Metals and Mining
Tenaris SA ...........................
798
Telecommunications
SES SA ................................
427
3,841
21,683
8,247
8,813
8,370
67,328
7,033
65,000
21,850
11,503
28,104
471,950
59,148
10,591
14,158
112,500
Netherlands (7.73%)
Aerospace and Defence
Airbus Group SE .................
1,265
Chemicals
Akzo Nobel NV ...................
494
Koninklijke DSM NV .........
426
Randstad Holding NV .........
408
RELX NV ...........................
1,033
Boskalis Westminster ..........
243
Heijmans NV .......................
538
Koninklijke Philips NV .......
547
TKH Group NV ...................
433
Food Products
Koninklijke Ahold NV ........
556
Insurance
Aegon NV ...........................
2,281
Personal Products
Unilever NV ........................
2,330
Retail Trade
GrandVision NV .................
265
ASML Holding
NV .......................................
1,264
Transport
PostNL NV ..........................
403
12,486
Number
of Shares
Portugal (0.06%)
Paper and Forest Products
29,679 Portucel SA .........................
677,491
64,180
12,610
1.03
0.44
0.14
7,198
19,317
0.50
52,621
0.27
307,808
2.38
18,708
0.78
0.31
0.26
0.25
0.64
18,732
26,751
69,887
133,000
0.15
0.33
0.34
0.27
0.35
1.41
1.44
Fair Value
EUR ‘000
Fund
%
95
Spain (5.56%)
Banks
Banco Popular Espanol SA .
1,550
Prosegur Cia de Seguridad
SA .......................................
318
Containers and Packaging
Vidrala SA ..........................
653
Bolsas y Mercados
Espanoles SHMSF SA ........
204
Electric Utilities
Endesa SA ..........................
326
Food Products
Distribuidora Internacional
de Alimentacion SA ............
240
Insurance
Mapfre SA ..........................
585
Machinery
Zardoya Otis SA .................
191
Media
Mediaset Espana
Comunicacion SA ...............
189
Retail Trade
Industria de Diseno Textil
SA .......................................
791
Software
Amadeus IT Holding SA ....
2,635
Telecommunications
Telefonica SA .....................
1,310
Sweden (1.14%)
Metals and Mining
69,589 Assa Abloy AB ...................
Telecommunications
Telefonaktiebolaget LM
72,500 Ericsson ..............................
Oil and Gas
212,274 Royal Dutch Shell Plc .........
0.06
0.96
0.20
0.40
0.12
0.20
0.15
0.36
0.12
0.12
0.49
1.63
0.81
8,992
5.56
1,207
0.75
638
0.39
1,845
1.14
4,531
2.80
149,531 92.53
0.17
0.78
0.25
7.73
Preferred Stock (1.63%)
Germany (1.63%)
Automobiles
7,055 Volkswagen AG ..................
Chemicals
11,727 Fuchs Petrolub SE ...............
789
0.49
460
0.28
31 March 2016
Number
of Shares
Fair Value
EUR ‘000
Fund
%
1,795 Sartorius AG .......................
402
Health Care Equipment and Supplies
Draegerwerk AG & Co
3,417 KGaA ..................................
204
Household Products
8,017 Henkel AG & Co KGaA .....
777
Total Preferred Stock ........
Total Transferable
Securities ............................
Ireland (3.56%)
III plc
The Sterling Liquidity
70 Shares ...............................
2,632
Number
of Shares
0.25
0.13
0.48
1.63
Fair Value
EUR ‘000
III plc
The US Dollar Cash Fund
II - Class R Roll-Up
2 Shares ...............................
plc
Russell Euro Liquidity
5,673 Shares ...............................
152,163 94.16
France (0.79%)
Metropole Gestion
1,720 Metropole Avenir Europe ...
Metropole Gestion
760 Metropole Frontiere Europe
89
0.06
Total Investments
excluding Financial
Fund
%
2
0.00
5,657
3.50
5,748
3.56
1,019
0.63
268
0.16
1,287
0.79
7,035
4.35
159,198 98.51
Notional
Amount
EUR ‘000
442
Average
Cost Price
EUR
Unrealised
Gain (Loss)
EUR ‘000
Fund
%
17,685.00
5 of FTSE MIB Index Futures
Expiring June 2016 ....................................................................................................
1,056
439.98 12 of Amsterdam Index Futures
Expiring April 2016 ....................................................................................................
(1)
2,369
2,925.00 81 of Euro Stoxx 50 Index Futures
Expiring June 2016 .....................................................................................................
5
1,736
9,918.93 7 of DAX Index Futures
Expiring June 2016 .....................................................................................................
14
615
8,783.14 7 of IBEX 35 Index Futures
Expiring April 2016 ....................................................................................................
(6)
1,746
4,365.83 40 of CAC 40 Index Futures
Expiring April 2016 ....................................................................................................
7
Unrealised gain on open futures contracts ......................................................................
26
Unrealised loss on open futures contracts .......................................................................
(7)
19
Total Financial Derivative Instruments ................................................................................................. 19
0.00
0.00
0.00
0.01
0.00
0.00
0.01
0.00
0.01
0.01
31 March 2016
Fair Value
EUR ‘000
Fund
%
159,224
98.52
Loss (98.52%) .......................................................................................................................
(7)
0.00
Loss ((0.00)%) ......................................................................................................................
159,217
98.52
(98.52%) ....................................................................................................................................................
2,384
1.48
Other Net Assets (1.48%) ........................................................................................................................
161,601
100.00
Net Assets ..................................................................................................................................................
% of
gross assets
Transferable securities admitted to an official stock exchange listing ...................................................................
Exchange traded financial derivative instruments .................................................................................................
Other assets ............................................................................................................................................................
93.86
4.34
0.02
1.78
100.00
The broker for the open futures contracts is Morgan Stanley.
As at 31 March 2016
Level 1
EUR ‘000
Level 2
EUR ‘000
Assets
Transferable securities ............................................................... 152,163
26
Total assets ...................................................................................... 152,189
Liabilities
(7)
(7)
Level 3
EUR ‘000
Total
EUR ‘000
7,035
7,035
-
152,163
7,035
26
159,224
-
-
(7)
(7)
31 March 2016
Level 1
EUR ‘000
Assets
Total assets ...................................................................................... 166,099
Liabilities
(255)
(255)
Level 2
EUR ‘000
Level 3
EUR ‘000
Total
EUR ‘000
7,786
7,786
-
166,099
7,786
173,885
-
-
(255)
(255)
Total SA
Orpea
Astaldi SpA
Royal Dutch Shell Plc
Vallourec SA
GEA Group AG
Deutsche Bank AG
Carrefour SA
Linde AG
Telecom Italia SpA
Bouygues SA
Deutsche Boerse AG
BNP Paribas SA
Orange SA
Sanofi
CRH Plc
TKH Group NV
Deutsche Telekom AG
Technip SA
Acquisition Cost
EUR ‘000
32,938
1,323
1,150
909
868
848
676
665
631
626
625
583
579
505
494
481
478
478
464
461
Disposal Proceeds
EUR ‘000
LafargeHolcim Ltd
AXA SA
Renault SA
Air France-KLM
Deutsche Telekom AG
Aegon NV
Carrefour SA
Royal Dutch Shell Plc
Schneider Electric SE
Vivendi SA
SAP SE
Total SA
Finnair OYJ
ArcelorMittal
Repsol SA
Cap Gemini SA
Cie de Saint-Gobain
Eni SpA
Linde AG
(33,754)
(1,656)
(1,491)
(1,478)
(1,413)
(1,284)
(1,177)
(1,024)
(872)
(861)
(722)
(708)
(672)
(657)
(623)
(609)
(564)
(547)
(533)
(523)
Balance Sheet
As at 31 March 2016
31 March 2016
(Unaudited)
USD ‘000
Assets
Financial assets at fair value through profit or loss (Note 1) ..................................
Cash at bank (Note 2) .............................................................................................
instruments (Note 2) .........................................................................................................
Debtors:
Receivable for investments sold .................................................................................
Receivable on fund shares issued ................................................................................
Dividends receivable ...................................................................................................
Prepayments and other debtors .......................................................................................
Liabilities
Financial liabilities at fair value through profit or loss (Note 1) ...................................
Creditors - amounts falling due within one year:
Payable for investments purchased .............................................................................
Payable on fund shares redeemed ...............................................................................
Distributions payable on income share classes ...........................................................
Management fees payable ...........................................................................................
Custodian and Trustee fees payable ............................................................................
Sub-custodian fees payable .........................................................................................
Administration fees payable .......................................................................................
Audit fees payable ....................................................................................................
Net assets attributable to redeemable participating shareholders ..........................
26 The Global Real Estate Securities Fund
30 September 2015
(Audited)
USD ‘000
252,428
245,741
1,221
827
687
540
1,073
69
776
256,254
459
45
739
20
248,371
(788)
(981)
(1,204)
(6)
(181)
(261)
(3)
(42)
(11)
(10)
(2,506)
(471)
(15)
(2)
(250)
(4)
(43)
(5)
(19)
(1,790)
253,748
246,581
Six months ended
31 March 2016
(Unaudited)
USD ‘000
Income
Dividends ........................................................................................................
Other income ...................................................................................................
Six months ended
31 March 2015
(Unaudited)
USD ‘000
4,730
67
4,797
4,009
4,009
Net gain (loss) on investment activities ............................................................................
15,624
18,990
Total investment income (expense) ............................................................................
20,421
22,999
Expenses
Management fees (Note 3) ..............................................................................
Custodian and Trustee fees (Note 4) ..................................................................
Sub-custodian fees (Note 4) ...............................................................................
Administration and transfer agency fees (Note 4) ..............................................
Audit fees ...........................................................................................................
Professional fees .................................................................................................
Other fees ...........................................................................................................
Total operating expenses ................................................................................................
(1,556)
(11)
(138)
(57)
(10)
(14)
(46)
(1,832)
(1,783)
(3)
(148)
(70)
(10)
(34)
(16)
(2,064)
Net income (expense) ......................................................................................................
18,589
20,935
Finance costs
Distributions (Note 6) .........................................................................................
Profit (loss) for the financial period before taxation ................................................
(1,258)
17,331
(949)
19,986
(841)
(664)
16,490
19,322
Taxation
Withholding tax (Note 7) ...................................................................................
All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss
Account.
The Global Real Estate Securities Fund 27
Six months ended
31 March 2016
(Unaudited)
USD ‘000
Share transactions
Reinvestment deemed distributions on accumulation shares (Note 6) ...............
share transactions (Note 8) .................................................................................
participating shareholders ..........................................................................................
Beginning of period ...............................................................................................
End of period ............................................................................................................
Six months ended
31 March 2015
(Unaudited)
USD ‘000
16,490
19,322
1,075
947
(10,398)
(6,786)
7,167
13,483
246,581
259,083
253,748
272,566
31 March 2016
Number
of Shares
Fair Value
USD ‘000
6,812,836
268,229
179,644
120,447
70,063
32,755
549,410
963,621
21,451
235,483
1,456,691
292,373
Australia (5.51%)
Real Estate
BGP Holdings Plc ...............
Dexus Property Group .........
Goodman Group ..................
GPT Group ..........................
GPT Metro Office Fund ......
Investa Office Fund .............
Mirvac Group ......................
Scentre Group Shopping
Centres Australasia
Property ...............................
Shopping Centres
Australasia Property
Group ..................................
Stockland .............................
Vicinity Centres ..................
Westfield Corp ....................
Austria (0.19%)
Real Estate
22,674 Buwog AG ..........................
Belgium (0.00%)
178 Befimmo SA .......................
Bermuda (1.25%)
Real Estate
Hongkong Land Holdings
505,900 Ltd .......................................
52,000 Kerry Properties Ltd ............
Brazil (0.01%)
Real Estate
13,900 BR Properties SA ................
37,347
53,209
7,603
8,140
14,544
16,369
Canada (1.92%)
Real Estate
First Capital Realty Inc .......
Allied Properties Real Estate
Investment Trust ..................
Boardwalk Real Estate
Brookfield Canada Office
Properties ............................
Canadian Real Estate
Chartwell Retirement
Residences ...........................
Fund
%
-
0.00
1,638
922
463
111
106
818
0.65
0.36
0.18
0.04
0.04
0.32
3,291
1.30
38
773
3,575
2,247
0.02
0.30
1.41
0.89
13,982
5.51
488
0.19
11
0.00
3,030
143
1.19
0.06
3,173
1.25
Number
of Shares
Crombie Real Estate
10,215 Investment Trust .................
Dream Office Real Estate
H&R Real Estate Investment
28,617 Trust ....................................
RioCan Real Estate
Smart Real Estate
Cayman Islands (1.20%)
Real Estate
Cheung Kong Property
462,500 Holdings Ltd .......................
China Resources Land
22,000 Ltd ......................................
0.23
1,439
0.57
304
0.12
184
0.07
507
0.20
178
0.07
111
0.05
129
0.05
464
0.18
503
0.20
458
0.18
4,872
1.92
2,975
1.18
56
0.02
3,031
1.20
38
0.02
Finland (0.14%)
Real Estate
139,561 Citycon OYJ .......................
2,049 Sponda OYJ ........................
353
9
0.14
0.00
362
0.14
983
386
944
5,195
34
0.39
0.15
0.37
2.05
0.01
1,952
0.77
10,390
2,800
12,302
108,288
1,461
7,085
0.01
595
Fund
%
China (0.02%)
Real Estate
Dalian Wanda Commercial
6,500 Properties Co Ltd ................
1,496
35
Fair Value
USD ‘000
1,766
62,085
11,685
56,303
48,806
France (3.90%)
Fonciere Des Regions .........
Gecina SA ...........................
Icade SA .............................
Klepierre .............................
Mercialys SA ......................
Unibail-Rodamco SE
(France listed) .....................
Unibail-Rodamco SE
(Netherlands listed) .............
Germany (2.31%)
Real Estate
Deutsche EuroShop
AG ......................................
Deutsche Wohnen AG ........
LEG Immobilien AG ..........
Vonovia SE .........................
Alstria Office AG ...............
Hong Kong (6.35%)
Holding Companies Diversified Operations ........
350,000 Wharf Holdings Ltd ............
412
0.16
9,906
3.90
83
1,934
1,103
2,029
0.03
0.76
0.44
0.80
705
0.28
5,854
2.31
1,913
0.75
31 March 2016
Number
of Shares
Fair Value
USD ‘000
40,000
71,000
204,663
208,000
385,278
262,000
521,442
538,800
96,000
529,400
Real Estate
China Overseas Land &
Investment Ltd ....................
Hang Lung Properties Ltd ...
Henderson Land
Development Co Ltd ...........
Hysan Development Co Ltd
New World Development Co
Ltd .......................................
Sino Land Co Ltd ................
Sun Hung Kai Properties Ltd
Swire Properties Ltd ............
Champion REIT ..................
Link REIT ...........................
Ireland (0.31%)
367,254 Green REIT Plc ...................
125,413 Hibernia REIT Plc ...............
Italy (0.20%)
663,429 Beni Stabili SpA SIIQ .........
38,600
14,100
217,000
275,627
2,200
56,000
74,500
58,100
247
57
37
18
8
495
767
5
781
Japan (10.95%)
Real Estate
Aeon Mall Co Ltd ...............
Hulic Co Ltd ........................
Mitsubishi Estate Co Ltd .....
Mitsui Fudosan Co Ltd ........
NTT Urban Development
Corp .....................................
Sumitomo Realty &
Development Co Ltd ...........
Tokyo Tatemono Co Ltd .....
Tokyu Fudosan Holdings
Corp .....................................
Activia Properties Inc ..........
Advance Residence
Investment Corp ..................
Daiwa House REIT
Daiwa Office Investment
Corp .....................................
Fair ValueUSD '000 ............
Frontier Real Estate
GLP J-Reit ...........................
Hulic Reit Inc ......................
Industrial & Infrastructure
Fund Investment Corp .........
Invincible Investment
Corp .....................................
Fund
%
127
136
0.05
0.05
1,255
886
0.49
0.35
368
416
6,370
1,462
0.15
0.16
2.51
0.58
49
3,136
0.02
1.24
16,118
6.35
591
186
0.23
0.08
777
0.31
499
0.20
Number
of Shares
157 Japan Excellent Inc .............
Japan Hotel REIT
542 Investment Corp ..................
Japan Prime Realty
153 Investment Corp ..................
Japan Real Estate Investment
265 Corp ....................................
Japan Retail Fund
507 Investment Corp ..................
Kenedix Office Investment
52 Corp ....................................
Mori Hills REIT Investment
82 Corp ....................................
36 Mori Trust Sogo Reit Inc ....
97 Nippon Building Fund Inc ..
435 Nippon Prologis REIT Inc ..
Nomura Real Estate Master
1,390 Fund Inc ..............................
102 Orix JREIT Inc ...................
United Urban Investment
419 Corp ....................................
0.23
0.05
1.59
2.71
Luxembourg (0.18%)
Real Estate
12,975 ADO Properties SA ............
22
0.01
1,641
929
0.65
0.37
395
0.15
Netherlands (1.33%)
Eurocommercial Properties
5,927 NV ......................................
108,384 NSI NV ...............................
45,853 Wereldhave NV ..................
1,283
0.51
144
0.06
162
0.06
112
0.04
39
565
1,249
0.02
0.22
0.49
23
0.01
586
0.23
Fund
%
212
0.08
478
0.19
624
0.25
1,533
0.60
1,219
0.48
299
0.12
121
62
576
975
0.05
0.02
0.23
0.38
2,078
158
0.82
0.06
678
0.27
27,793 10.95
Jersey, Channel Islands (0.28%)
Real Estate
Atrium European Real Estate
23,992 Ltd ......................................
Kennedy Wilson Europe
25,580 Real Estate Plc ....................
139,212 LXB Retail Properties Plc ...
573
135
4,036
6,886
Fair Value
USD ‘000
Norway (0.13%)
Real Estate
30,546 Entra ASA ..........................
29,483 Norwegian Property ASA ...
400,300
828,371
32,143
344,900
Singapore (1.77%)
Real Estate
CapitaLand Ltd ...................
Global Logistic Properties
Ltd ......................................
UOL Group Ltd ..................
Ascendas Real Estate
Investment Trust .................
96
0.04
431
192
0.17
0.07
719
0.28
446
0.18
278
516
2,568
0.11
0.21
1.01
3,362
1.33
288
31
0.12
0.01
319
0.13
913
0.36
1,184
143
0.47
0.05
612
0.24
31 March 2016
Number
of Shares
Fair Value
USD ‘000
CapitaLand Commercial
78,800 Trust Ltd ..............................
730,200 CapitaLand Mall Trust ........
364,100 Mapletree Industrial Trust ...
Spain (0.73%)
Real Estate
Hispania Activos
33,547 Inmobiliarios SA .................
451,495 Inmobiliaria Colonial SA ....
Merlin Properties Socimi
90,188 SA .......................................
6,985
9,791
25,281
17,246
27,704
Sweden (0.62%)
Real Estate
Atrium Ljungberg AB .........
Castellum AB ......................
Fabege AB ...........................
Hufvudstaden AB ................
Wihlborgs Fastigheter AB ...
Switzerland (0.48%)
Real Estate
58 Mobimo Holding AG ..........
5,816 PSP Swiss Property AG ......
7,117 Swiss Prime Site AG ...........
39,932
22,736
4,118
34,869
97,104
94,924
115,540
136,067
23,761
134,554
320,190
87,983
183,323
227,828
133,792
8,676
9,078
Urban & Civic Plc ...............
Real Estate
Capital & Counties
Properties Plc ......................
Helical Bar Plc ....................
ST Modwen Properties
Plc .......................................
Unite Group Plc ...................
Big Yellow Group Plc .........
British Land Co Plc .............
Capital & Regional Plc ........
Derwent London Plc ............
Great Portland Estates Plc ...
Hammerson Plc ...................
Intu Properties Plc ...............
Land Securities Group Plc ...
Londonmetric Property Plc .
Segro Plc .............................
Shaftesbury Plc ....................
Workspace Group Plc ..........
Fund
%
86
1,133
431
0.03
0.45
0.17
4,502
1.77
Number
of Shares
Fair Value
USD ‘000
33,832
84,737
5,804
478
335
0.19
0.13
1,050
0.41
1,863
0.73
233
23,970
12,780
3,573
121
156
428
274
589
0.05
0.06
0.17
0.11
0.23
1,568
0.62
14
562
630
0.01
0.22
0.25
1,206
0.48
146
0.06
108
23
0.04
0.01
152
888
0.06
0.35
1,057
1,163
127
1,076
1,408
2,662
396
2,901
519
789
114
102
0.42
0.46
0.05
0.42
0.56
1.05
0.16
1.14
0.20
0.31
0.04
0.04
13,631
5.37
4,144
19,786
21,006
86,888
28,723
34,907
42,165
94,482
22,039
23,969
15,207
3,504
11,727
135,721
4,946
35,296
11,299
117,383
68,615
11,503
47,249
24,081
10,076
20,292
51,506
2,783
16,135
58,396
17,053
United States (50.57%)
Brookdale Senior Living
Inc .......................................
Lodging
Hilton Worldwide Holdings
Inc .......................................
La Quinta Holdings Inc .......
Starwood Hotels & Resorts
Worldwide Inc ....................
Real Estate
Four Corners Property Trust
Inc .......................................
Xenia Hotels & Resorts
Inc .......................................
Acadia Realty Trust ............
Alexandria Real Estate
Equities Inc .........................
American Campus
Communities Inc .................
American Homes 4 Rent .....
Apartment Investment &
Management Co ..................
AvalonBay Communities
Inc .......................................
Boston Properties Inc ..........
Brandywine Realty Trust ....
Brixmor Property Group
Inc .......................................
Camden Property Trust .......
Care Capital Properties
Inc .......................................
Chesapeake Lodging Trust .
Colony Starwood Homes ....
Corporate Office Properties
Trust ....................................
Cousins Properties Inc ........
CubeSmart ..........................
CyrusOne Inc ......................
DCT Industrial Trust Inc .....
DDR Corp ...........................
DiamondRock Hospitality
Co .......................................
Digital Realty Trust Inc ......
Douglas Emmett Inc ...........
Duke Realty Corp ...............
DuPont Fabros Technology
Inc .......................................
Education Realty Trust Inc .
Empire State Realty Trust
Inc .......................................
Equinix Inc .........................
Equity LifeStyle Properties
Inc .......................................
Equity Residential ...............
Essex Property Trust Inc .....
Fund
%
537
0.21
1,908
73
0.75
0.03
19
0.01
430
0.17
200
0.08
126
0.05
377
0.15
932
334
0.37
0.13
3,634
1.43
5,463
4,436
592
2.15
1.75
0.23
2,421
1,853
0.95
0.73
643
402
87
0.25
0.16
0.03
308
1,409
165
1,611
446
2,088
0.12
0.56
0.06
0.63
0.18
0.82
694
1,018
1,423
543
0.27
0.40
0.56
0.21
408
844
0.16
0.33
903
920
0.36
0.36
1,173
4,381
3,988
0.46
1.73
1.57
31 March 2016
Number
of Shares
Fair Value
USD ‘000
19,160 Extra Space Storage Inc ......
Federal Realty Investment
6,627 Trust ....................................
First Industrial Realty Trust
12,157 Inc .......................................
General Growth Properties
91,771 Inc .......................................
112,309 HCP Inc ...............................
Healthcare Realty Trust
56,387 Inc .......................................
Healthcare Trust of America
26,765 Inc .......................................
220,232 Host Hotels & Resorts Inc ...
Hudson Pacific Properties
62,731 Inc .......................................
16,915 InfraREIT Inc ......................
28,242 Kilroy Realty Corp ..............
41,673 Kimco Realty Corp ..............
41,234 LaSalle Hotel Properties ......
17,480 Liberty Property Trust .........
7,447 Macerich Co ........................
18,073 Mack-Cali Realty Corp .......
Mid-America Apartment
15,592 Communities Inc .................
National Retail Properties
13,981 Inc .......................................
Omega Healthcare Investors
56,843 Inc .......................................
14,288 Paramount Group Inc ..........
13,961 Pebblebrook Hotel Trust .....
61,335 Prologis Inc .........................
21,779 Public Storage .....................
27,605 QTS Realty Trust Inc ..........
Ramco-Gershenson
34,194 Properties Trust ...................
20,450 Realty Income Corp ............
20,226 Regency Centers Corp .........
Retail Opportunity
47,289 Investments Corp ................
Rexford Industrial Realty
36,484 Inc
900 RLJ Lodging Trust ..............
Senior Housing Properties
18,907 Trust ....................................
74,002 Simon Property Group Inc ..
8,550 SL Green Realty Corp .........
Fund
%
1,791
0.71
1,034
0.41
276
0.11
2,728
3,659
1.08
1.44
1,742
0.69
787
3,678
0.31
1.45
1,814
288
1,747
1,199
1,044
585
590
425
0.71
0.11
0.69
0.47
0.41
0.23
0.23
0.17
1,594
0.63
646
0.25
2,007
228
406
2,710
6,007
1,308
0.79
0.09
0.16
1.07
2.37
0.52
617
1,278
1,514
0.24
0.50
0.60
951
0.37
663
21
0.26
0.01
338
15,370
828
0.13
6.06
0.33
Number
of Shares
3,384
84,663
47,828
22,543
51,124
48,736
4,234
54,089
18,340
79,195
10,300
30,458
30,220
43,997
Fair Value
USD ‘000
Sovran Self Storage Inc ......
Spirit Realty Capital Inc .....
Store Capital Corp ..............
Sun Communities Inc .........
Sunstone Hotel Investors
Inc .......................................
Tanger Factory Outlet
Centers Inc ..........................
Taubman Centers Inc ..........
UDR Inc ..............................
Ventas Inc ...........................
Vornado Realty Trust ..........
Washington Real Estate
Investment Trust .................
Weingarten Realty
Investors .............................
Welltower Inc .....................
WP Glimcher Inc ................
Fund
%
399
952
1,238
1,614
0.16
0.38
0.49
0.64
716
0.28
1,774
302
2,084
1,155
7,478
0.70
0.12
0.82
0.46
2.95
301
0.12
1,143
2,096
418
0.45
0.83
0.16
128,332 50.57
Total Transferable
Securities ...........................
Ireland (2.17%)
III plc
The Sterling Liquidity
Fund Class R Roll-Up
18 Shares ...............................
III plc
The US Dollar Cash Fund
II Class R Roll-Up
5,465 Shares ...............................
plc
Russell Euro Liquidity
Fund Class R Roll-Up
18 Shares ...............................
Total Investments
excluding Financial
242,887 95.72
242,887 95.72
26
0.01
5,474
2.15
20
0.01
5,520
2.17
248,407 97.89
Notional
Amount
USD ‘000
3,740
Average
Cost Price
USD
296.86
Unrealised
Gain (Loss)
USD ‘000
126 of DJ US Real Estate Index Futures
Expiring June 2016 ..................................................
120
Fund
%
0.05
31 March 2016
Notional
Amount
USD ‘000
Average
Cost Price
USD
525
Unrealised
Gain (Loss)
USD ‘000
Fund
%
2,623.59
4 of Hang Seng Index Futures
Expiring April 2016 .................................................
12
833
11.90 7 of Topix Index Futures
Expiring June 2016 ..................................................
6
3,195
2,384.29 134 of FTSE EPRA Europe Index Futures
Expiring June 2016 ..................................................
48
491
3,930.81 5 of S&P TSX 60 Index Futures
Expiring June 2016 ..................................................
(4)
166
236.78 7 of SGX MSCI Singapore Index Futures
Expiring April 2016 .................................................
Unrealised gain on open futures contracts .......................................................................... 80,587 0.02186
Unrealised loss on open futures contracts........................................................................... (38,321) (0.01)
(4)
182
0.00
0.00
0.02
0.00
0.00
0.07
(0.00)
0.07
Open Forward Foreign Currency Exchange Contracts (1.20%)
Settlement
Date
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
15/06/2016
15/06/2016
15/06/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
15/06/2016
15/06/2016
15/06/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
Amount
Bought ‘000
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CHF
CHF
CHF
CHF
CHF
CHF
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Amount
Sold ‘000
55
27
543
2
49
400
100
665
12
264
1
10
100
200
221
60
3
6
1
1
7
529
529
529
589
537
4
921
257
Unrealised
Gain (Loss)
USD ‘000
Fund
%
EUR
37
0.00
EUR
18
0.00
EUR
366
0.00
GBP
1
0.00
GBP
25
2
0.00
USD
300
7
0.00
USD
76
1
0.00
USD
493
17
0.01
EUR
8
0.00
EUR
179
0.00
GBP
1
0.00
GBP
5
0.00
USD
76
2
0.00
USD
151
4
0.00
USD
165
6
0.00
EUR
55
0.00
EUR
3
0.00
EUR
6
0.00
EUR
1
0.00
GBP
1
0.00
GBP
5
0.00
(0.01)
AUD
808
(19)
(0.01)
AUD
808
(19)
AUD
808
(19)
(0.01)
AUD
901
(22)
(0.01)
AUD
820
(19)
(0.01)
AUD
6
0.00
CAD
1,362
(3)
0.00
CAD
379
(1)
0.00
31 March 2016
Settlement
Date
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
15/06/2016
15/06/2016
15/06/2016
15/06/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
Amount
Bought ‘000
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
4
12
88
317
501
501
501
3
74
501
558
554
554
554
12
588
617
972
972
972
68
1,198
1,082
419
117
16
5
684
190
5
17
255
4,702
4,701
4,701
4,701
5,241
200
2,000
600
2,956
469
469
469
65
204
204
204
28
70
CAD
CAD
CHF
CHF
GBP
GBP
GBP
GBP
GBP
GBP
GBP
HKD
HKD
HKD
HKD
HKD
HKD
JPY
JPY
JPY
JPY
JPY
JPY
SEK
SEK
SEK
SEK
SGD
SGD
SGD
SGD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
AUD
AUD
AUD
AUD
CAD
CAD
CAD
CAD
CHF
Unrealised
Gain (Loss)
USD ‘000
Amount
Sold ‘000
6
17
96
345
395
395
395
2
58
395
439
4,696
4,696
4,696
100
4,979
5,227
119,645
119,645
119,645
8,308
147,387
133,157
3,897
1,085
150
46
1,050
292
8
26
285
5,124
5,124
5,124
5,124
5,713
224
2,240
677
3,271
910
910
910
126
383
383
383
53
97
4
4
4
1
4
5
26
26
26
1
28
29
43
43
43
3
54
48
(4)
(1)
6
234
233
233
233
260
5
44
9
105
(26)
(26)
(26)
(4)
(3)
(3)
(3)
(1)
Fund
%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.01
0.01
0.00
0.01
0.01
0.02
0.02
0.02
0.00
0.02
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.09
0.09
0.09
0.09
0.11
0.00
0.02
0.00
0.04
(0.01)
(0.01)
(0.01)
0.00
0.00
0.00
0.00
0.00
0.00
31 March 2016
Settlement
Date
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
15/06/2016
15/06/2016
15/06/2016
15/06/2016
07/04/2016
07/04/2016
15/06/2016
Amount
Bought ‘000
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
HKD
HKD
HKD
HKD
HKD
HKD
HKD
HKD
JPY
JPY
JPY
Unrealised
Gain (Loss)
USD ‘000
Amount
Sold ‘000
70
70
10
26
13
261
686
686
686
97
95
26
492
491
491
68
861
862
862
4
91
120
43
93
93
93
13
5
152
152
151
21
2
4,169
4,169
4,168
40
579
3,752
171
106
5
1,000
3,000
1,000
4,379
98,015
5,580
10,000
CHF
CHF
CHF
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
HKD
HKD
HKD
HKD
JPY
JPY
JPY
JPY
JPY
JPY
NZD
SEK
SEK
SEK
SEK
SEK
SEK
SGD
SGD
SGD
SGD
SGD
USD
USD
USD
USD
USD
EUR
EUR
GBP
GBP
USD
USD
USD
USD
EUR
EUR
USD
97
97
14
33
16
329
871
871
871
124
121
33
5,288
5,288
5,288
735
134,740
134,740
134,740
669
14,281
18,706
91
1,097
1,097
1,097
153
54
2
295
295
295
41
3
5,771
5,771
5,771
56
801
433
20
10
129
387
129
564
779
45
88
(1)
(1)
(1)
(7)
(7)
(7)
(2)
(1)
(1)
25
25
25
3
39
39
39
4
5
(1)
(2)
(2)
(2)
(2)
(2)
(2)
222
221
220
2
30
(10)
1
(15)
(1)
1
Fund
%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.01
0.01
0.00
0.02
0.02
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.09
0.09
0.09
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(0.01)
0.00
0.00
31 March 2016
Settlement
Date
15/06/2016
15/06/2016
15/06/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
07/04/2016
15/06/2016
15/06/2016
07/04/2016
15/06/2016
Amount
Bought ‘000
JPY
JPY
JPY
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
NZD
SEK
SEK
SGD
SGD
SGD
SGD
USD
USD
70,000
30,000
108,657
802
802
802
65
354
354
355
39
122
122
122
8
1,190
1,190
1,191
60
771
771
772
853
853
853
100
1,494
1,495
1,496
374
161
161
161
30
263
263
263
39
7,233
7,234
7,237
372
35
770
208
9
219
100
1,166
76
USD
USD
USD
AUD
AUD
AUD
AUD
CAD
CAD
CAD
CAD
CHF
CHF
CHF
CHF
EUR
EUR
EUR
EUR
GBP
GBP
GBP
HKD
HKD
HKD
HKD
JPY
JPY
JPY
JPY
SEK
SEK
SEK
SEK
SGD
SGD
SGD
SGD
USD
USD
USD
USD
EUR
EUR
EUR
EUR
USD
USD
AUD
AUD
Unrealised
Gain (Loss)
USD ‘000
Amount
Sold ‘000
622
269
966
739
739
739
60
316
316
316
35
80
80
80
5
718
718
718
36
366
366
366
4,359
4,359
4,359
514
111,054
111,054
111,054
27,732
904
904
904
171
244
244
244
36
4,757
4,757
4,757
245
4
83
136
6
158
73
1,636
100
2
(2)
3
(12)
(12)
(12)
(1)
2
2
2
1
1
1
8
8
8
9
9
9
30
30
30
3
49
50
50
13
2
2
2
264
264
267
13
(1)
5
1
(92)
-
Fund
%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.01
0.01
0.00
0.02
0.02
0.02
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.11
0.11
0.11
0.01
0.00
0.00
0.00
0.00
0.00
0.00
(0.04)
0.00
31 March 2016
Settlement
Date
Amount
Bought ‘000
Unrealised
Gain (Loss)
USD ‘000
Amount
Sold ‘000
15/06/2016
USD
338 AUD
450
07/04/2016
USD
513 CAD
695
15/06/2016
USD
50 CAD
65
15/06/2016
USD
114 CAD
150
07/04/2016
USD
173 CHF
173
07/04/2016
USD
4,015 EUR
3,596
07/04/2016
USD
229 EUR
205
07/04/2016
USD
1,681 EUR
1,542
07/04/2016
USD
134 EUR
123
07/04/2016
USD
24 EUR
22
07/04/2016
USD
8 EUR
7
15/06/2016
USD
781 EUR
700
15/06/2016
USD
2,351 EUR
2,100
15/06/2016
USD
136 EUR
120
07/04/2016
USD
1,090 GBP
787
07/04/2016
USD
481 GBP
345
07/04/2016
USD
22 GBP
16
07/04/2016
USD
1,236 HKD
9,610
15/06/2016
USD
129 HKD
1,000
15/06/2016
USD
426 HKD
3,300
07/04/2016
USD
2,260 JPY
255,202
15/06/2016
USD
89 JPY
10,000
15/06/2016
USD
90 JPY
10,000
15/06/2016
USD
756 JPY
85,000
07/04/2016
USD
239 SEK
2,040
07/04/2016
USD
385 SGD
542
15/06/2016
USD
88 SGD
120
Unrealised gain on open forward currency exchange contracts ........................................
Unrealised loss on open forward currency exchange contracts ........................................
Net unrealised gain (loss) on open forward foreign currency exchange contracts ....
Total Financial Derivative Instruments ........................................................................
Fund
%
(7)
(25)
(2)
(8)
(83)
(5)
(76)
(6)
(1)
(19)
(48)
(1)
(41)
(15)
(1)
(3)
(11)
1
(2)
(13)
(18)
(1)
3,835
(784)
3,051
3,233
Fair Value
USD ‘000
0.00
(0.01)
0.00
0.00
0.00
(0.04)
0.00
(0.04)
0.00
0.00
0.00
(0.01)
(0.02)
0.00
(0.02)
(0.01)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(0.01)
(0.01)
0.00
1.50
(0.30)
1.20
1.27
Fund
%
252,428
99.46
Loss (99.46%) ......................................................................................................................
(788)
(0.30)
Loss ((0.30)%) ......................................................................................................................
251,640
99.16
(99.16%) ....................................................................................................................................................
2,108
0.84
Other Net Assets (0.84%) ........................................................................................................................
253,748
100.00
Net Assets ..................................................................................................................................................
31 March 2016
% of
gross assets
Transferable securities admitted to an official stock exchange listing .....................................................................
Over the counter financial derivative instruments ...................................................................................................
Exchange traded financial derivative instruments ...................................................................................................
Other assets ..............................................................................................................................................................
94.78
2.15
1.50
0.07
1.50
100.00
The broker for the open futures contracts is UBS AG.
The counterparties for the open forward foreign currency exchange contracts are:
Bank of America
Brown Brothers Harriman & Co
Citibank
HSBC
Royal Bank of Canada
Standard Chartered Bank
State Street Bank
As at 31 March 2016
Level 1
EUR ‘000
Level 2
EUR ‘000
Assets
186
contracts ........................................................................................
Total assets ...................................................................................... 243,073
Liabilities
contracts ........................................................................................
Level 3
EUR ‘000
Total
EUR ‘000
5,520
-
242,887
5,520
186
3,835
9,355
3,835
252,428
(4)
-
-
(4)
(4)
(784)
(784)
-
(784)
(788)
31 March 2016
Level 1
EUR ‘000
Assets
34
contracts ........................................................................................
Total assets ...................................................................................... 241,319
Liabilities
contracts ........................................................................................
Level 2
EUR ‘000
Level 3
EUR ‘000
Total
EUR ‘000
4,144
-
-
241,285
4,144
34
278
4,422
-
278
245,741
(22)
-
-
(22)
(22)
(959)
(959)
-
(959)
(981)
Russell Investment Company III plc
The U.S. Dollar Cash Fund II
HCP Inc
Essex Property Trust Inc
General Growth Properties Inc
Vornado Realty Trust
Simon Property Group Inc
Nomura Real Estate Master Fund Inc
Brixmor Property Group Inc
Klepierre SA
Vonovia SE
Sun Hung Kai Properties Ltd
Apartment Investment & Management Co
Dexus Property Group
Wharf Holdings Ltd
AvalonBay Communities Inc
Henderson Land Development Co Ltd
Mitsui Fudosan Co Ltd
Hammerson Plc
Digital Realty Trust Inc
Hilton Worldwide Holdings Inc
Acquisition Cost
USD ‘000
40,080
3,040
2,978
2,703
2,582
2,140
1,847
1,814
1,620
1,481
1,472
1,424
1,334
1,283
1,204
1,197
1,134
1,095
1,077
1,049
Russell Investment Company III plc
The U.S. Dollar Cash Fund II
Simon Property Group Inc
Equity Residential
Public Storage Inc
Extra Space Storage Inc
Mitsubishi Estate Co Ltd
Regency Centers Corp
AvalonBay Communities Inc
SL Green Realty Corp
General Growth Properties Inc
Land Securities Group Plc
Westfield Corp
Deutsche Wohnen AG
Ventas Inc
New World Development Co Ltd
Prologis Inc
BioMed Realty Trust Inc
American Campus Communities Inc
Healthcare Trust of America Inc
Federal Realty Investment Trust
Disposal Proceeds
USD ‘000
(38,265)
(4,330)
(3,532)
(2,995)
(2,684)
(2,596)
(2,476)
(2,242)
(2,044)
(1,895)
(1,867)
(1,852)
(1,834)
(1,770)
(1,659)
(1,653)
(1,588)
(1,317)
(1,310)
(1,305)
Notes to the Financial Statements
31 March 2016
1.
Basis of Preparation
The condensed semi-annual unaudited financial statements (the “Financial Statements”) have been prepared for the six
months ended 31 March 2016.
a)
Statement of Compliance
The Financial Statements are prepared in accordance with Financial Reporting Standard (“FRS”) 104: Interim Financial
Reporting (“FRS 104”) (for the first time), the financial reporting standard applicable to in the UK and Republic of Ireland
for preparing interim financial statements and the provisions of the UCITS Regulations.
FRS 104 is promulgated by the Institute of Chartered Accountants in Ireland (the “Institute”) and issued by the Financial
Reporting Council (“FRC”).
The Financial Statements should be read in conjunction with the Company’s annual audited Financial Statements for the year
ended 30 September 2015.
b)
Transition to FRS 102 & FRS 104
As detailed in the Company’s annual audited financial statements for the year ended 30 September 2015 the Company
transitioned to a new accounting framework, namely FRS 102 & FRS 104. FRS 102 was applied to the Company's annual
audited financial statements for the year ended 30 September 2015.
The date of transition to the new accounting framework is 1 October 2014 and accordingly certain comparative amounts
presented in the Profit and Loss Accounts for the six month ended 31 March 2015 are based on the Company’s financial
statements for that period after adjustment for the transition to FRS 104 (see section f of this note).
The transition to FRS 104 has not resulted in any change to the financial position, financial performance or profit and loss
amounts of the Company to that previously reported and presented in the financial statements as at 31 March 2015.
The accounting policies applied in preparing these financial statements under FRS 104 are consistent with the accounting
policies applied, except where noted in the accounting policies section of this note to the Financial Statements, in preparing
the Company’s prior interim financial statements under the previous accounting framework.
policies applied in preparing the Company’s prior annual financial statements under FRS 102.
c)
Basis of measurement & presentation
The Financial Statements are prepared under the historical cost convention as modified by the revaluation of financial assets
and financial liabilities held at fair value through profit or loss. The Company will continue as a going concern and all Funds
trading as at 31 March 2016 have been prepared on a going concern basis.
The Company has availed of the exemption available to open ended investment funds that hold a substantial proportion of
highly liquid and fair valued investments and is not presenting cash flow statements.
The information required by FRS 104 to be included in a statement of comprehensive income, is, in the opinion of the
Directors, contained in the Profit and Loss Account of the Company and each Fund.
The financial statements of the individual Funds are prepared in the functional currency of the respective Fund. The
functional currency of each Fund is that disclosed on the primary statements of the respective Fund.
The combined financial statements of the Company are measured using Euro. The Company has also adopted Euro as the
presentation currency. The financial statements of each Fund are prepared in the functional currency of the respective Fund.
The functional currency of each Fund is that as disclosed on the primary statements of the respective Fund. The financial
statements of The Global Real Estate Securities Fund (prepared in U.S. Dollar) are translated into Euro and accumulated for
preparation of the combined financial statements.
Notes to the Financial Statements 41
Notes to the Financial Statements - continued
31 March 2016
1.
Basis of Preparation - continued
For the purpose of producing the Combined Balance Sheet, respective financial period end exchange rates are used. For the
purpose of producing the Combined Profit and Loss Account and the Combined Statement of Changes in Net Assets
Attributable to Redeemable Participating Shareholders, the average exchange rates for the relevant period are used. The
currency gain or loss of opening net assets, and the average rate difference arising on the translation of the Profit and Loss
Account and the Combined Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders, is
included in the Combined Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders. This
translation adjustment does not impact the Net Asset Value per share of any individual Fund.
d) Estimates and Judgements
The estimates and judgements applied in preparing the Financial Statements are consistent with those applied and disclosed
in the Company’s annual audited financial statements as at and for the year ended 30 September 2015.
e)
Fair Value Hierarchy
The amendment to FRS 102 Section 11.27 on “Fair Value: Disclosure” requires the Company to classify fair value
measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.
On 8 March 2016, the Financial Reporting Council (FRC) issued Amendments to FRS 102 - Fair value hierarchy disclosures.
The amendment is effective for accounting periods commencing 1 January 2017, however, the Board of Directors have
agreed to early adopt this amendment in preparing these financial statements for the six months ended 31 March 2016. The
prior annual fair value hierarchy tables have been restated and presented under the new hierarchy definitions as set out under
this amendment to FRS 102.
f)
Accounting Policies
policies applied in preparing the Company’s prior annual financial statements under FRS 102. With the exception of where
noted below, the accounting policies applied in preparing these Financial Statements under FRS 104 are consistent with the
accounting policies applied in preparing the Company’s prior condensed interim Financial Statements under previous
accounting framework, namely, the FRC’s: “Half Yearly Financial Reports”.
Valuation of Financial Instruments at Fair Value through Profit or Loss
The transition to the new accounting framework has resulted in Financial Instruments at Fair Value through Profit or
Loss being accounted for differently.
On initial application of FRS 102 and FRS 104, in accounting for its financial instruments a reporting entity is required
to apply either:
the full provisions of section 11 “Basis Financial Instruments” and section 12 “Other Financial Instruments” of FRS
102, or
b) the recognition and measurement provisions of IAS 39 Financial Instruments: Recognition and Measurement and
only the disclosure requirements of Sections 11 and 12 of FRS 102; or
c) the recognition and measurement provisions of IFRS 9 Financial Instruments and/or IAS 39 (as amended following
the publication of IFRS 9) and only the disclosure requirements of Sections 11 and 12 of FRS 102.
a)
The Company has chosen to implement option b), the recognition and measurement provisions of IAS 39 and only the
disclosure requirements of Sections 11 and 12 of FRS 102.
As a result the Company changed its fair valuation input to utilise last traded market price for both financial assets and
liabilities. Where the last traded price is not within the bid ask spread, management will determine the point within the
bid ask spread which is most representative of fair value. Under the previous accounting framework the market price
used for financial assets held by the Company was the current bid price, the quoted market price for financial liabilities
was the current ask price. The Company’s Profit and Loss Account for the six months ended 31 March 2015 has also
been restated to reflect the use of last traded market prices.
42 Notes to the Financial Statements
31 March 2016
1.
Basis of Preparation - continued
The following tables summaries the respective restatements reflected on the Profit and Loss Account six months ended
31 March 2015.
Profit and Loss Account for the six months ended 31 March 2015
Combined
EUR ’000
The Eurozone
The Global Real
The European Aggressive Equity Estate Securities
Small Cap Fund
Fund
Fund
EUR ’0000
EUR ’000
USD ’000
Net gain (loss) on investment activities (at bid
market prices) ......................................................................................................................................................................
52,611
15,287
21,196
………….
19,116
Movement in adjustment from bid market
prices to last traded market prices .......................................................................................................................................
(1)
37
46
……….(126)
Net gain (loss) on investment activities (at last
traded market prices) ...........................................................................................................................................................
52,610
15,324
21,242
…………..
18,990
g)
Change in Presentation
Under the FRC’s “Half Yearly Financial Reports” the comparative information required to be disclosed for each primary
statement was the prior annual audited primary statement and the prior interim unaudited primary statement and their
respective notes to the financial statements. Under FRS 104 the comparative information required to be disclosed is the prior
annual audited primary statement for the Balance Sheet and the prior interim unaudited primary statement for the Profit and
Loss Account and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders.
2.
Cash at Bank and Cash Held with/due to Brokers and Counterparties
a) Cash at Bank
Cash at bank balances are comprised of cash balances held by State Street Bank and Trust Company’s (“State Street”)
custodian network*, unrestricted margin accounts held by brokers for futures contracts held by the Funds and net unrealised
gains and losses on open spot foreign currency exchange contracts. The names of brokers used by each individual Fund can
be found at the base of each relevant Fund’s Schedule of Investments.
Cash held in U.S. Dollar bank accounts with State Street automatically transfer into the demand deposit account at State
Street Bank and Trust New York in the name of State Street Bank and Trust Company - London.
b) Cash held with brokers and counterparties for open financial derivative instruments
Cash may also be deposited by or on behalf of the Funds for initial margin purposes with brokers for futures contracts and as
collateral with counterparties in respect of OTC FDI’s held on the Funds. As this amount is the minimum deemed by the
brokers and counterparties for collateral requirements the cash is as such restricted and is reported separately to the
unrestricted cash on the Funds’ Balance Sheets.
3.
Transactions with Related Parties
a) Related Parties
The Company identified related parties under Section 33 of FRS 102. The parties listed below are currently engaged in
related party transactions with the Company.
Details
disclosed in
Relation to the Company
Name of entity
section of this note
Manager .............................................................................................................................
Russell Investments Ireland Limited ................................................................................
b), i)
Advisor and Distributor (the “Adviser”) ...........................................................................
Russell Investments Limited ............................................................................................
b), ii)
Affiliated Money Manager ................................................................................................
Affiliated Russell Entities .................................................................................................
b), iii)
Currency Implementation ..................................................................................................
Russell Implementation Services Inc. ..............................................................................
b), iii)
Affiliated Broker ...............................................................................................................
Russell Implementation Services Inc. ..............................................................................
b), iii)
Directors of the Company .................................................................................................
As listed on the Administration of the Company page ....................................................
b), iv)
Related Party Investors and Investees ...............................................................................
Affiliated Russell Entities and Russell Managed Funds ..................................................
b), vi)
* Certain cash balances may be held by sub-custodians, as approved and appointed by State Street, in markets where State Street does not operate as a
custodian.
31 March 2016
3.
Transactions with Related Parties - continued
b) Related Party Transactions
i)
Manager, Management Fee and Performance Fee
Russell Investments Ireland Limited, a wholly owned subsidiary of Frank Russell Company, which in turn is a 100 per
cent owned subsidiary of The London Stock Exchange Group (“LSEG”), is the Manager of the Company. The Manager
is engaged in the business of providing investment management and administrative services to collective investment
schemes. The Manager has: (a) appointed the Adviser to advise it on the Funds’ investments; (b) delegated the
administration of the Company to the Administrator; and (c) appointed the Adviser to market and promote the shares of
the Funds.
a) Management Fee
For services rendered under the management agreement, the Company pays the Manager a fee, accrued daily and
paid monthly in arrears, at the following annual rates based on the respective average daily net asset values of each
class of shares.
The European
Small Cap Fund
Class A
Class B
Class P
1.90%
1.30%
2.25%
The Eurozone
Aggressive Equity Fund
Class A Retail Euro
1.90%
Class B Institutional Euro
1.30%
The Global Real
Estate Securities Fund
Class A
Class B
Class DH-B Income
Class EH-A
Class H
Class I Income
Class NZDH Accumulation
Class R-H Accumulation
Class SH-A Accumulation
Class SH-B
Class T
1.50%
0.90%
0.95%
1.55%
2.00%
0.90%
0.90%
2.55%
0.95%
0.95%
2.30%
Rates for classes of shares not yet funded as at 31 March 2016 are not listed.
b) Performance Fee
Each Fund may also pay the Manager a performance fee (the “Performance Fee”) on an annual basis (the
“Performance Period”) that is equal to the sum of Performance Fees to be paid to the Fund’s Money Managers as
described more fully in the Prospectus.
The calculation of any Performance Fee must be verified by the Custodian and Trustee.
No Performance Fee was charged during the period under review (six months ended 31 March 2015: Nil).
ii)
Adviser
The Manager discharges all fees payable to the Adviser out of its management fee. The Adviser is not entitled to a fee
in its capacity as Distributor to the Company.
iii)
Affiliated Money Managers, Affiliated Broker and Currency Implementation
Russell Implementation Services Inc. and Russell Implementation Services Limited (collectively called “RIS”) are
affiliated Group Companies to the Manager and the Adviser. The Adviser and Russell Implementation Services Inc. can
be appointed as Money Managers to the Funds.
The appointment of Russell group companies as Money Manager to the Funds is subject to the same procedures as
appointing an external Money Manager and an intercompany agreement and investment guidelines are applied.
31 March 2016
3.
The Funds effect certain transactions through RIS and its global network of unaffiliated correspondent brokers. Trades
placed through RIS and its correspondents are made (i) to manage trading associated with changes in Money Managers,
rebalancing across existing Money Managers, cash flows and other portfolio transitions or (ii) to execute portfolio
securities transactions for each Fund’s assets where RIS has been appointed as Money Manager.
RIS may also be engaged by the Company to carry out foreign currency implementation trading for which a fee of 0.02
per cent per trade is included in individual transactions.
For the six months ended 31 March 2016, the total commission earned by RIS, encompassing the range of services
provided, amounted to EUR 13,044 (six months ended 31 March 2015: EUR 43,732).
iv)
Directors
The Articles of Association provide that the Directors are entitled to a fee by way of remuneration at a rate to be
determined from time to time by the Directors. Directors’ fees are paid to non-executive Directors not employed by
Russell group companies. Directors’ fees shall not exceed the limits contained in the Prospectus and the Directors are
entitled to certain additional expenses as listed in the Prospectus. Directors’ fees charged during the six months ended
31 March 2016 were EUR 3,144 (six months ended 31 March 2015: EUR 2,293), these amounts are included in other
fees in the Combined Profit and Loss Account.
All of the Directors of the Company are also directors of Russell Investment Company plc and Russell Investment
Company III plc. All of the Directors of the Company are also directors of the Manager. The following Directors of the
Company are employed by Russell group companies: Mr. James Beveridge, Mr. Peter Gonella, Mr. Neil Jenkins, Mr.
John McMurray and Mr. Kenneth Willman.
Mr. James Firn is a former employee of Russell Investments who retired in June 2014. He continues to act as a Director
of Russell Investments Ireland Limited and the Funds managed by Russell Investments Ireland Limited.
The Adviser operates a defined contribution pension plan for its employees which invests in Russell managed funds
including the Funds. The pension fund is subject to a management fee rebate. The Directors who are employed by the
Adviser may be indirectly exposed to the Company through the pension scheme.
v)
Related Party Investors and Investees
a) Investment in other Russell Funds
The Funds may invest in the sub-funds of other funds managed by the Manager as listed in the table below. Details
of the Fund’s investments in these sub-funds can be found in the Schedule of Investments of each relevant Fund.
Type of Fund
Management
Fund Structure Name
Structure
Fee Rate
Russell Investment Company plc .............................................................................................................................................................................
UCITS Umbrella 0.05% - 2.80%
Russell Investment Company III plc ........................................................................................................................................................................
UCITS Umbrella
0.05%
b) Related Party Shareholders of the Company
During the six months ended 31 March 2016 and the six months ended 31 March 2015, certain sub-funds of openended collective investment schemes also managed by the Manager and administered by the Administrator were
invested in the Funds.
The table below discloses the value of related shareholders in the Company and the percentage of this value against
the Company’s combined net asset value as at 31 March 2016 and 30 September 2015.
31 March 2016
Company
30 September 2015
Related Party Shareholder
EUR ‘000
%
EUR ‘000
Russell Investment Company plc ...................................................................................................................................
1,914
0.40%
2,137
Russell Investment Company V plc ...............................................................................................................................
Russell Institutional Funds plc .......................................................................................................................................
22,870
4.81%
22,307
Company
%
0.44%
4.57%
31 March 2016
3.
c) Connected Party Transactions
The Central Bank UCITS Notices, UCITS 14.5 - “Dealings by manager, trustee, investment adviser and group
companies” states in paragraph one that any transaction carried out with a UCITS by a promoter, manager, trustee,
investment adviser and/or associated or group companies of these (“connected parties”) must be carried out as if
negotiated at arm’s length. Transactions must be in the best interests of the unitholders.
The Directors are satisfied that there are arrangements (evidenced by written procedures) in place, to ensure that the
obligations set out in paragraph one of UCITS 14.5 are applied to all transactions with connected parties; and the
Directors are satisfied that transactions with connected parties entered into during the period complied with the
obligations set out in this paragraph.
vi)
4.
FTSE Russell Indices
The Eurozone Aggressive Equity Fund’s benchmark, namely Russell Developed Euro Zone Large Cap Net, is a FTSE
Russell Index. FTSE Russell is wholly owned by London Stock Exchange Group. No fees are payable by the Company
to FTSE Russell for this service.
Significant Agreements
i) Custodian and Trustee
State Street Custodial Services (Ireland) Limited is the Company’s Custodian and Trustee. The Custodian and Trustee
has appointed its parent State Street Bank and Trust Company, Boston (“State Street”) as its global sub-custodian who in
turn has appointed a network of local sub-custodial agents. The sub-custodian fees are paid at annual rates based on the
total assets held in each individual country in which the Funds invest plus applicable transaction charges.
Custodian and Trustee fees accrue daily and are paid monthly in arrears.
Included within the custodian agreement is a right of set off for fees owing to and monies lent by the Custodian and
Trustee.
ii) Administrator and Transfer Agency
State Street Fund Services (Ireland) Limited is the Company’s Administrator. The Administrator is responsible for the
daily determination of the net asset value, maintaining the books and records of the Funds in respect of the Company and
other administrative services. The Manager has also appointed the Administrator as the Company’s Transfer Agent.
Such fees accrue daily and are paid monthly in arrears. The Manager shall discharge reasonable out of pocket expenses
payable to the Administrator out of the Funds’ assets.
The Administrator is also entitled to shareholder services fees as disclosed in the Administration Agreement and
reporting services fees of USD 7,000 per Fund per annum.
Transfer agency fees are charged based on the number of Funds in the umbrella structure, the number of shareholders,
number of statements issued, number of share classes and volume of shareholder transactions in a period and are subject
to adequate thresholds. Transfer agency fees charged and are paid on a daily basis and are recognised within
Administration and transfer agency fees in the Profit and Loss Account for each Fund.
The Custodian and Trustee fees, Administrator and transfer agency fees disclosed in the Profit and Loss Account include
minimum fees. If the total of the minimum fees are in excess of the combined administration and trustee percentage
charges, the share class fee, the reporting service fee and the shareholder service fee, after the deduction of any discount,
then this minimum will apply. The minimum fee for new Funds will be waived for one year from the launch of the new
Fund.
The aggregate of Administration and Custodian and Trustee fees will not exceed 0.20% of the Net Asset Value of the
Fund.
31 March 2016
5.
Soft Commissions and Commission Recapture Programme
The Adviser retains the right to request that the Money Managers participate in Russell’s soft commission and commission
recapture programme (the “Programme”) by executing a portion of their securities transactions through certain brokers (the
“Correspondent Broker Network”). Money Manager participation in the Programme is not mandatory and the appropriate
participation percentage target is determined on a Money Manager by Money Manager basis, based upon asset class,
investment mandate, trading habits, and tolerance for participation and is always subject to a Money Manager’s ability to
obtain best execution.
The Programme, including the Correspondent Broker Network, is administered by Recapture Services, a division of BNY
ConvergEx Execution Solutions LLC (“BNY”) and State Street Global Markets (“SSGM”).
A portion of the commission earned by the Correspondent Broker Network as a result of this trading activity will be set aside
in the Programme as “credits”. These credits are then earmarked for purchase of third party research (“Soft Commission
Credits”) or future commission recapture (“Future Commission Credits”).
i) Soft Commission Credits
All soft commission use is overseen by Russell’s soft commission committee (the “Committee”) which is made up of
senior level investment personnel. The Committee, with the guidance of Russell’s investment strategy committee,
establishes an annual soft commission research budget for the use of the Soft Commission Credits.
Soft Commission Credits are used by the Adviser to purchase third party research that will aid the Adviser in its
investment decision-making process. Research purchased through the Programme is obtained from unaffiliated third
parties at market rates.
ii) Commission Credits
Once the soft commission research budget has been met the Committee will instruct BNY to recapture the Future
Commission Credits which are then rebated directly back to the relevant Fund from which the commission was generated.
Future Commission Credits are recognised within net gain/(loss) on investment activities in the relevant Fund’s Profit and
Loss Account.
6.
Distributions
The Company conducts its affairs so as to enable U.K. Reporting Fund status to be obtained under the United Kingdom
Income and Corporation Tax Act 1988 for the purposes of U.K. taxation for each applicable Fund.
With the exception of Roll-Up Class Shares, the distribution policy of each Fund is to distribute out of net income. Roll-Up
Class Shares do not declare or distribute net income and their net asset value reflects net income. Distributions declared by
Income Class Shares are paid in cash unless the shareholder chooses to reinvest part or all of the amount in the capital of the
relevant Share Class. Accumulation Class Shares declare a distribution which is then reinvested in the capital of the relevant
share class. Net income includes all interest, dividends and other amounts deemed by the Administrator to be in the nature of
income less the estimated expenses of that Fund applicable to that dividend year.
The distributions of the Funds are calculated and declared on a calendar quarterly basis (i.e. quarterly periods ended
31 March, 30 June, 30 September and 31 December).
31 March 2016
7.
Taxation
Under current law and practice the Company qualifies as an investment undertaking as defined in Section 739B of the Taxes
Consolidation Act, 1997, as amended (the “TCA”). On that basis, it is not chargeable to Irish tax on its income or gains.
However, Irish tax may arise on the occurrence of a “chargeable event”. A chargeable event includes any distribution
payments to shareholders or any encashment, redemption, transfer or cancellation of shares and any deemed disposal of
shares for Irish tax purposes arising as a result of holding shares in the Company for a period of eight years or more.
No Irish tax will arise in respect of chargeable events in respect of a shareholder who is an Exempt Irish Investor (as defined
in Section 739D of the TCA) or who is neither Irish resident nor ordinarily resident in Ireland for tax purposes at the time of
the chargeable event, provided, in each case, that an appropriate valid declaration in accordance with Schedule 2B of the
TCA is held by the Company or where the Company has been authorised by Irish Revenue to make gross payments in
absence of appropriate declarations.
Distributions, interest and capital gains (if any) received on investments made by the Company may be subject to
withholding taxes imposed by the country of origin and such taxes may not be recoverable by the Company or its
shareholders.
8.
Number of Shares in Issue and Net Assets Attributable to Redeemable Participating Shareholders
a) Authorised Share Capital
The authorised share capital of the Company is 30,000 subscriber shares of no par value and 500 billion participating shares
of no par value. Subscriber shares do not form part of the net asset value of the Company. They are disclosed in the financial
statements by way of this note only.
Holders of subscriber shares are not entitled to dividends or any surplus of assets over liabilities upon winding-up the
Company. There are currently two subscriber shares in issue. The subscriber shares are held by Frank Russell Company (one
share), and Russell Investments Limited (one share).
b) Redeemable Participating Shares
Each of the shares entitles the holder to participate equally on a pro rata basis in the profits and dividends of the relevant
Fund attributable to such shares and to attend and vote at meetings of the Company and of the relevant Fund represented by
those shares. No class of shares confers on the holder thereof any preferential or pre-emptive rights or any rights to
participate in the profits and dividends of any other class of shares or any voting rights in relation to matters relating solely to
any other class of shares.
Each share represents an individual beneficial interest in the Company. The shares are not debt obligations or guaranteed by
the Company. The return on an investment in the Company will depend solely upon the investment performance of the assets
of the relevant Fund and the increase or decrease (as the case may be) in the net asset value of the shares. The amount
payable to a shareholder in respect of each share upon liquidation of the Company or a Fund will equal the net asset value per
share. However, in a relatively illiquid market, a Fund may not be able to dispose of its investments quickly and as such a
Fund may experience adverse price movements upon liquidation of its investments. Settlement of transactions may be subject
to delay and administrative uncertainties and the price repaid to the shareholders in such circumstances will not equal the
final published net asset value per share.
Net assets attributable to shareholders represent a liability on the Balance Sheet, carried at the redemption amount that would
be payable at the balance sheet date if the shareholder exercised the right to redeem the shares in the Company.
31 March 2016
8.
Number of Shares in Issue and Net Assets Attributable to Redeemable Participating Shareholders - continued
Participating Share Transactions
All cash amounts are in the functional currency of the relevant Fund not the currency of the class.
Number of Shares in issue
Six months ended 31 March 2015
Beginning
Shares
Shares
End
Beginning
Shares
Shares
End
Share Class
of period
Issued
Redeemed
of period
of period
Issued
Redeemed
of period
Class A .............................................................................
3,686
1,327
(184)
4,829
4,896
731
(239)
5,388
Class B .............................................................................
22,151
5,115
(2,556)
24,710
28,139
2,360
(2,116)
28,383
Class P ..............................................................................
164
164
164
(63)
101
Value of Share Transactions
Subscriptions
Redemptions
Share Class
EUR
EUR
Class A .............................................................................
3,483
(458)
Class B .............................................................................
14,466
(6,206)
Class P ..............................................................................
-
Subscriptions
Redemptions
EUR
EUR
1,803
(588)
6,390
(5,809)
(104)
Beginning
Shares
Shares
End
of period
Issued
Redeemed
of period
Share Class
Class A
Retail Euro .......................................................................
16,266
3,921
(701)
Class B
Institutional
Euro ..................................................................................
62,681
26,490
(4,704)
Beginning
Shares
Shares
End
of period
Issued
Redeemed
of period
19,486
19,713
683
(5,660)
14,736
84,467
107,205
8,115
(14,509)
100,811
Subscriptions
Redemptions
EUR
EUR
Share Class
Class A
Retail Euro .......................................................................
4,288
Class B
Institutional
Euro ..................................................................................
40,552
Subscriptions
Redemptions
EUR
EUR
(759)
684
11,964
(7,121)
(5,477)
(21,260)
31 March 2016
8.
Beginning
Shares
Shares
End
Share Class
of period
Issued
Redeemed
of period
Class A .............................................................................
3,292
1,354
(1,049)
3,597
Class B .............................................................................
101,288
14,142
(31,867)
83,563
Class DH-B
Income ..............................................................................
Class EH-A .......................................................................
11,583
82
(2,282)
9,383
Class H .............................................................................
7,548
5
(299)
7,254
Class I
Income ..............................................................................
579
717
1,296
Class NZDH
Accumulation .....................................................................................
39,496
39,496
Class R-H
Accumulation .....................................................................................
321,054
12,087
(39,108)
294,033
Class SH-A
Accumulation .....................................................................................
625
80
(105)
600
Class SH-B .......................................................................
205,024
95
(19,810)
185,309
Class T ..............................................................................
4,570
4,570
Beginning
Shares
Shares
End
of period
Issued
Redeemed
of period
3,008
75
(1,705)
1,378
85,000
3,887
(16,022)
72,865
8,910
6,356
19,955
11
106
(6,136)
(316)
19,955
2,785
6,146
1,874
1,514
-
3,388
39,525
30
-
39,555
271,826
12,094
(22,307)
261,613
846
185,527
4,570
0
273
-
(55)
(839)
791
185,800
3,731
Subscriptions
Redemptions
Share Class
USD ‘000
USD ‘000
Class A .............................................................................
1,932
(1,508)
Class B .............................................................................
21,355
(48,306)
Class DH-B
Income ..............................................................................
Class EH-A .......................................................................
126
(3,473)
Class H .............................................................................
4
(283)
Class I
Income ..............................................................................
129
Class NZDH
Accumulation .....................................................................................
31,357
Class R-H
Accumulation .....................................................................................
1,986
(6,423)
Class SH-A
Accumulation .....................................................................................
166
(220)
Class SH-B .......................................................................
18
(3,646)
Class T ..............................................................................
-
Subscriptions
Redemptions
USD ‘000
USD ‘000
104
(2,294)
5,822
(23,632)
19,955
14
96
(8,742)
(281)
254
-
21
-
1,772
(3,328)
48
-
(113)
(94)
31 March 2016
8.
c)
Swing Pricing/Dilution Adjustments
Swing pricing (also known as dilution adjustment) is applied to a Fund once net subscriptions or redemptions for a Fund
relating to a Fund’s net asset value for a given dealing day is determined by the Administrator to exceed certain
predetermined percentage thresholds. In calculating the swing pricing, the net asset value of a Fund is swung by a “swing
factor” on the following basis:
Net subscriptions - the price used to process all transactions is adjusted upwards by the swing factor to a notional offer price.
Net redemptions - the price used to process all transactions is adjusted downwards by the swing factor to a notional bid price.
If the net asset value of a Fund is swung on a specific dealing day the official price for a Fund will be the derived swing
price. In addition, all dealing activity for this dealing day will be dealt at the swing price. Swing pricing applied to a Fund
during the year is recognised within the share transactions figure on the Statement of Changes in Net Assets Attributable to
Redeemable Shareholders.
The swing factors applied by the Funds during the period end prior period ranged from 0.20% to 0.45% on subscriptions and
0.15% to 0.25% on redemptions:
d) Significant Shareholders
The following table details the number of shareholders with significant holdings of at least 20 per cent of the relevant Fund’s
net asset value, the aggregate monetary value and percentage (of that Fund’s net asset value) as at 31 March 2016.
Number of
Value
Significant
of Holding
Fund
Shareholders
‘000
The European Small Cap Fund .....................................................
2
EUR
47,526
Aggregate
Shareholding as
a % of the Fund
52.24%
The following table details the number of shareholders with significant holdings of at least 20 per cent of the relevant Fund’s
net asset value, the aggregate monetary value and percentage (of that Fund’s net asset value) as at 30 September 2015.
Number of
Value
Significant
of Holding
Fund
Shareholders
‘000
The European Small Cap Fund .....................................................
2
EUR
44,986
The Eurozone Aggressive Equity Fund ........................................
1
EUR
38,942
9.
Aggregate
Shareholding as
a % of the Fund
49.49%
22.07%
Financial Risks
The activities of the Funds expose them to various financial risks such as market risk (including price risk, interest rate risk,
and currency risk), credit risk and liquidity risk. The overall risk management process for the Funds focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance for the
Funds. The Funds combine Money Managers with varied investment styles to achieve returns in a broad range of market
conditions and to manage exposure to risk through diversification.
The Company’s financial risk management objectives and policies continue to be consistent with those disclosed in the
Company’s audited financial statements as at and for the year ended 30 September 2015.
31 March 2016
10. Exchange Rates
Where applicable, the Administrator used the exchange rates listed below to translate foreign currency amounts, market value
of investments and other assets and liabilities into Euro at the following rates for each EUR 1.
Australian Dollar
Brazilian Real
British Pound
Canadian Dollar
Danish Krone
Hong Kong Dollar
31 March 2016
AUD
BRL
GBP
CAD
DKK
HKD
1.4814
4.0386
0.7928
1.4740
7.4503
8.8390
31 March 2016
Hungarian Forint
HUF
Japanese Yen
JPY
Norwegian Krone
NOK
New Zealand Dollar
NZD
Philippine Peso
PHP
Singapore Dollar
SGD
314.1802
128.0798
9.4255
1.6413
52.4706
1.5345
Swedish Krona
Swiss Franc
U.S. Dollar
31 March 2016
SEK
CHF
USD
9.2380
1.0913
1.1396.
Where applicable, the Administrator used the exchange rates listed below to translate foreign currency amounts, market value
of investments and other assets and liabilities into Euro at the following rates for each EUR 1.
30 September 2015
Australian Dollar
AUD
Brazilian Real
BRL
British Pound
GBP
Canadian Dollar
CAD
Danish Krone
DKK
Hong Kong Dollar
HKD
1.5895
4.4449
0.7369
1.4966
7.4602
8.6510
30 September 2015
Hungarian Forint
HUF
Japanese Yen
JPY
Norwegian Krone
NOK
New Zealand Dollar
NZD
Philippine Peso
PHP
Singapore Dollar
SGD
313.2199
133.6876
9.5216
1.7450
52.1735
1.5872
30 September 2015
Swedish Krona
SEK
Swiss Franc
CHF
U.S. Dollar
USD
9.3620
1.0907
1.1162
The Administrator used the average exchange rates for each reporting period as listed below to translate U.S. Dollar into
Euro the Profit and Loss Account and Statement of Changes in Net Assets Attributable to Redeemable Participating
Shareholders of those Funds not prepared in Euro in preparing the Company’s Combined Profit and Loss Account and the
Combined Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders at the following rates
for each EUR 1.
U.S. Dollar
USD
1.0959
U.S. Dollar
USD
1.1853
11. Comparative Dealing Net Assets
Class A
EUR ‘000
Total net asset value
31 March 2016 ......................................................................
13,243
30 September 2015 ................................................................
12,295
31 March 2015 ......................................................................
12,852
Class A
EUR
Net asset value per share
31 March 2016 ......................................................................
2,457.81
30 September 2015 ................................................................
2,511.17
31 March 2015 ......................................................................
2,661.49
Class B
EUR‘000
77,571
78,341
72,693
Class B
EUR
2,733.08
2,784.08
2,941.86
Class A
Retail Euro
EUR ‘000
31 March 2016 ......................................................................
14,419
30 September 2015 ................................................................
19,413
31 March 2015 ......................................................................
21,769
Class A
Retail Euro
EUR
31 March 2016 ......................................................................
978.48
30 September 2015 ................................................................
984.78
31 March 2015 ......................................................................
1,117.17
Class P
EUR‘000
Class B
Institutional
Euro
EUR ‘000
147,182
157,042
139,945
Class B
Institutional
Euro
EUR
1,459.98
1,464.87
1,656.80
158
261
277
Class P
EUR
1,553.87
1,590.61
1,688.78
31 March 2016
11. Comparative Dealing Net Assets - continued
Class A
USD ‘000
31 March 2016 ......................................................................
1,981
30 September 2015 ................................................................
4,019
31 March 2015 ......................................................................
5,236
Class A
USD
31 March 2016 ......................................................................
1,437.69
30 September 2015 ................................................................
1,336.00
31 March 2015 ......................................................................
1,455.65
Class NZDH
Accumulation
NZD ‘000
31 March 2016 ......................................................................
43,751
30 September 2015 ................................................................
40,849
31 March 2015 ......................................................................
43,756
Class NZDH
Accumulation
NZD
31 March 2016 ......................................................................
1,106.07
30 September 2015 ................................................................
1,033.48
31 March 2015 ......................................................................
1,107.86
Class B
USD ‘000
112,137
121,185
129,417
Class B
USD
Class DH-B
Income
USD ‘000
20,238
Class DH-B
Income
USD
1,538.96
1,425.71
1,548.73
1014.13
-
Class R-H
Accumulation
EUR ‘000
Class SH-A
Accumulation
GBP ‘000
36,614
36,199
42,839
Class R-H
Accumulation
EUR
139.95
133.17
145.69
1,118
1,126
864
Class SH-A
Accumulation
GBP
1,412.22
1,331.05
1,441.06
Class EH-A
EUR ‘000
3,644
11,036
12,649
Class EH-A
EUR
1,308.55
1,238.56
1,348.08
Class SH-B
GBP ‘000
Class H
USD ‘000
5,783
5,570
6,944
Class H
USD
130.03
122.54
132.68
413
204
159
Class I Income
GBP
940.82
876.39
957.28
121.90
108.74
122.35
Class T
USD ‘000
24,159
22,735
24,587
Class SH-B
GBP
Class I Income
GBP ‘000
435
497
544
Class T
USD
116.57
108.76
118.97
12. Segregated Liability
Each Fund will be responsible for paying its fees and expenses regardless of the level of its profitability. The Company has
availed of the segregated provisions of Companies Acts 2014. The adoption of segregated liability ensures that liability
incurred on behalf of a Fund will generally be discharged solely out of the assets of that Fund and there can generally be no
recourse to other Funds to satisfy these liabilities. Notwithstanding the foregoing there can be no guarantee that should an
action be brought against the Company in the court of another jurisdiction that the segregated nature of the Funds would
necessarily be upheld.
13. Significant Events During the Period
Frank Russell Company
LSEG announced on 8 October 2015 that it has agreed the proposed sale of the investment management and solutions
business of Russell Investments to TA Associates, subject to customary closing adjustments and regulatory and other
required approvals. Reverence Capital Partners, partnered with TA Associates and will make a significant minority
investment.
Fund revocation
The U.S. Equity Fund had its approval withdrawn by the Central Bank on 18 January 2016.
31 March 2016
14. Significant Events Since the Period End
Prospectus update
A supplemental prospectus dated 13 April 2016 was noted by the Central Bank incorporating an additional share class in The
Global Real Estate Securities Fund, being Class N.
15. Approval of Financial Statements
The Financial Statements were approved by the Directors on 19 May 2016.
Russell Investments
Rex House
10 Regent Street, St James’
London, SW1Y 4PE
tel +44 (0) 20 7024 6000
fax +44 (0) 20 7024 6001
www.russell.com

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