Butterfield Asset Management Funds plc (an umbrella fund with segregated liability between sub-funds) Annual Report and Audited Financial Statements

Butterfield Asset Management Funds plc (an umbrella fund with segregated liability between sub-funds) Annual Report and Audited Financial Statements ...
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Butterfield Asset Management Funds plc (an umbrella fund with segregated liability between sub-funds)

Annual Report and Audited Financial Statements For the year ended 31 January 2014

Butterfield Asset Management Funds plc

Table of contents

Page

Company information

3

Directors’ report

4

Investment Manager's report

6

Report of the Custodian to the shareholders

9

Independent Auditors’ report

10

Balance sheet

12

Profit and loss account

14

Statement of changes in net assets attributable to holders of redeemable participating shares

16

Notes to the financial statements

18

Schedule of investments

37

Statement of significant portfolio movements (unaudited)

44

Appendix 1: Underlying Collective investment schemes fees (unaudited)

49

2

Butterfield Asset Management Funds plc

Company information Peter Cleavely (British) John Hamrock (Irish resident) (Independent) Richard Saunders (British) Bronwyn Wright (Irish resident) (Independent)

Directors of the Company

(All Directors are non-executive) Registered Office

2nd Floor, 2 Grand Canal Square Grand Canal Harbour Dublin 2 Ireland

Investment Manager, Distributor and Promoter

Butterfield Bank (UK) Limited 99 Gresham Street London EC2V 7NG England

Manager

Capita Financial Managers (Ireland) Limited 2nd Floor, 2 Grand Canal Square Grand Canal Harbour Dublin 2 Ireland

Custodian

BNY Mellon Trust Company (Ireland) Limited Guild House Guild Street, IFSC Dublin 1 Ireland

Administrator and Company Secretary

Capita Financial Administrators (Ireland) Limited 2nd Floor, 2 Grand Canal Square Grand Canal Harbour Dublin 2 Ireland

Independent Auditor

Deloitte & Touche Chartered Accountants and Statutory Audit Firm Deloitte & Touche House Earlsfort Terrace Dublin 2 Ireland

Irish Legal Advisor

Arthur Cox Earlsfort Centre Earlsfort Terrace Dublin 2 Ireland

Company number

511970 (Registered in Ireland)

3

Directors’ report

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 The Directors of Butterfield Asset Management Funds plc (the “Company”) present herewith their annual report and audited financial statements for the year ended 31 January 2014. The Company was incorporated on 16 April 2012 and is authorised as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) by the Central Bank of Ireland. The Company is an umbrella type investment company with segregated liability between sub-funds. As of the date of this report the Company is comprised of five sub-funds, each of which launched on 26 October 2012. Statement of directors’ responsibilities Irish company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of the profit or loss for that year. In preparing those financial statements, the Directors are required to: •

select suitable accounting policies and then apply them consistently;



make judgements and estimates that are reasonable and prudent; and



prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping proper books of account which disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements are prepared in accordance with accounting standards generally accepted in Ireland and comply with Irish Statute comprising the Companies Acts, 1963 to 2013 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011, as amended (the “UCITS Regulations”). They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Company has appointed BNY Mellon Trust Company (Ireland) Limited to carry out the custodial functions of the Company including the safekeeping of assets, trustee duties and the operation and maintenance of bank accounts. Basis of preparation The format and certain wordings of the financial statements have been adapted from those contained in the Companies (Amendment) Act 1986 so that, in the opinion of the Directors, they more appropriately reflect the nature of the Company’s business as an investment fund. Principal activities The Company is an open-ended investment company with variable capital and limited liability which has been authorised by the Central Bank of Ireland as a UCITS pursuant to the UCITS Regulations. Directors’ statement on proper books of account The measures which the Directors have taken to ensure that proper books of account are kept are the adoption of suitable policies for recording transactions, assets and liabilities and the appointment of a suitable service organisation, Capita Financial Administrators (Ireland) Limited (the “Administrator”). The books of accounts of the Company are located at the offices of the Administrator. Activities and business review A comprehensive overview of the Company’s trading activities is detailed in the Investment Manager’s report for each sub-fund on pages 6 to 8. Risks and uncertainties The principal risks and uncertainties faced by the Company are outlined in the prospectus. These risks include market price risk, currency risk, interest rate risk, liquidity risk and credit risk as per FRS 29. The Investment Manager reviews and agrees policies for managing each of these risks and these are detailed in note 14 to the financial statements. Directors The Directors as at the reporting date and their country of residence are as stated on page 3. All the Director’s serve in a non-executive capacity. Directors’ interests in the shares of the Company See note 21 to the financial statements. Transactions involving Directors Other than as disclosed in note 21 to the financial statements, there were no contracts or arrangements of any significance in relation to the business of the Company in which the Directors had any interest, as defined in the Companies Act, 1990, at any time during the year. Results of operations The results of operations for the year are set out in the profit and loss account on page 14. Distributions The Directors declared dividends during the year ended 31 January 2014. See note 17 for further details. Independent Auditors The Auditors, Deloitte & Touche have indicated their willingness to remain in office in accordance with section 160(2) of the Companies Act, 1963.

4

Investment Manager’s report

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 Butterfield Global Growth Fund Global equities had a very strong year and Butterfield Global Growth Fund (the “Fund”) gained 20.4% versus a benchmark return of 24.2%. Contrary to expectations at the start of the year volatility remained relatively low and US equities kept favour with investors despite worries around tapering of quantitative easing, debt ceiling negotiations and the government shutdown. Given the strong performance it was a difficult period for active managers to outperform the index so our passive holdings contributed positively to overall returns and being overweight US equities was also positive. UK and European equities returned 21% and 29% respectively last year (in USD terms). Returns in the UK were largely driven by an improving economic outlook compared to expectations at the beginning of the year. Returns in Europe were led by Germany which continued to benefit from strong exports. Fading worries about a breakup of the Eurozone were also positive and evidenced by falling peripheral bond yields. We are in the process of increasing our weighting to UK equities but remain underweight European equities given the lack of recapitalisation of the banking system and the ongoing threat of deflation. Japanese equities performed very strongly with a return of 55% for Yen investors. A significant proportion of this return was driven by the earnings of Japanese exporters, which benefitted from a weakening Yen. As Japan progressed with ambitious measures aimed at ending years of deflation the currency weakened against all G10 currencies. We are equal weight Japanese equities but our exposure is currency hedged so our funds produced very strong returns. Emerging markets were the big disappointment for equity investors in 2013, losing 2% for the year. Headwinds include a strengthening US economy and worries about the increase in credit creation which has occurred over the last few years. We retain a small direct exposure to emerging markets based on attractive long-term valuations, an optimistic structural growth story and portfolio diversification benefits. Overall we remain positive on equity markets going into 2014 but given that improving economics and earnings are already priced in to some markets we do not see a repeat of 2013’s returns. Equities continue to look attractive relative to other asset classes, notably bonds, but we continue to balance the merits of valuations versus fundamentals to help identify the best opportunities going forward. References to a benchmark are for illustrative purposes only. There is no guarantee that the Fund will outperform this benchmark. Butterfield Sterling Balanced Fund Global equity markets finished the year with a gain for the MSCI World of 24.3% for sterling investors. In contrast, UK government bonds had a difficult year, losing 1.9%. Butterfield Sterling Balanced Fund (the “Fund”) continued to benefit from its overweight position in equities and underweight position in bonds although returns from Emerging market equities and alternative assets tempered the overall return. Expectations for economic growth in the UK were revised higher throughout 2013 and this led to an improvement in sentiment and a “riskon” approach. Given that UK government bonds were expensive on a real yield (after inflation) basis we continued to favour bonds with a relatively short maturity. This reduction in interest rate risk helped to protect capital values as bond yields increased to the psychologically important 3% level. Towards the end of the year, corporate bonds generated higher returns than government bonds as risk appetite improved and our M&G corporate bond fund managed a small positive return. In the UK, small and mid-cap stocks posted very strong positive returns last year and quarter 4 was no exception. These stocks provide the highest potential for return during economic recoveries and the FTSE 250 managed to outperform the FTSE 100 by 13.6% over the year. The Fund’s holdings in Marlborough Special Situations and JO Hambro UK Growth were significant beneficiaries of this trend and generated returns well in excess of the benchmark. Within international markets US equities performed very strongly generating a 30% return to sterling investors. Contrary to expectations at the start of the year volatility remained relatively low and US equities kept favour with global investors despite worries around tapering, debt ceiling negotiations and the government shutdown. Given the strong performance it was a difficult period for active managers to outperform the index so our passive holdings contributed positively to overall returns. Positive economic signals even emerged from the Eurozone, with GDP growth turning positive for the first time in seven quarters and unemployment finally stabilising at 12% overall, albeit with large divergence across the countries. We exited our position in the Schroder UK Alpha Plus fund on the back of both the resignation of its manager and the uncertainty generated from Schroders’ merger with Cazenove Capital. We used this capital to purchase the MFS Meridian UK Equity fund, which we expect to be a core holding going forward. Additionally, we sold the Invesco Perpetual Income fund because of a manager departure and reallocated the proceeds to small and mid-cap managers. We remain positive on equity markets going into 2014 but given that improving economics and earnings are already priced in to a degree, we do not see a repeat of 2013’s returns. Equities continue to look attractive relative to bonds based on historical averages but given that equities are more expensive than they were this time last year we remain vigilant to the risks and will look to reduce equity exposure if we do not see the risk reward trade-off as favourable. References to a benchmark are for illustrative purposes only. There is no guarantee that the Fund will outperform this benchmark.

6

Investment Manager’s report (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 Butterfield Sterling Income Fund UK fixed income markets have experienced a disappointing year with official interest rates stuck at 0.5%, while longer dated bond yields have risen and yield curves steepened. During the last 12 months, the benchmark index has remained broadly unchanged while Butterfield Sterling Income Fund (the “Fund”) has posted a small loss of 0.55% after fees. It has now been more than 12 months since the UK implemented any form of quantitative easing (“QE”). With the US also now starting down the path of reducing and ultimately winding up QE, we believe that Central Banks in developed economies (ex Japan) are moving into a new era where ‘forward guidance’ will be a key policy tool in influencing interest rate markets beyond the overnight rate. To this extent, Central Bankers in the US and UK have been at great pains to note that despite economic data improving faster than originally anticipated (especially employment numbers), the current low level of official interest rates would be administered for an extended period through 2014 and at least into 2015. This leaves the market with a relatively steep yield curve – long rates are pricing in an improving economic outlook, while short rates remained nailed to the floor through Central Bank policy. A positive economic surprise or signs of higher inflation could certainly push rates higher still, while disappointment on the economic front could see yields decrease and forward guidance extended. Economically, the UK appears to be entering a relative sweet spot, where quarterly economic growth figures tick higher and ahead of consensus, the unemployment rate is falling and inflation is moving back towards the Bank of England’s target rate. Initial strength appears to be driven by renewed activity in the housing market, although the most recent data suggest that the recovery is becoming increasingly broad based. While this is naturally good news for the economy, it is important to understand that while sentiment is improving, it is coming from a low base and projected growth rates still remain below those historically achieved through recent decades. Bond markets will take comfort that inflation is less of a near-term issue and the improved growth outlook should assist the poor state of government finances, but on balance, an improving growth outlook, falling unemployment (especially if accompanied by more progressive wage settlements) and the exceptionally low level of real rates suggests that bond yields will continue to tick marginally higher through 2014 as growth becomes ingrained. Recent investment strategy, as detailed in previously quarterly reports has helped mitigate against the worst of the yield curve steepening witnessed through the latter part of 2013. Focus has been on the higher yields available in strong, investment grade corporate and financial bonds, while interest rate risk has been limited through shorter duration bonds. Looking forward, markets have moved a long way towards pricing in a higher interest rate environment, perhaps ahead of where official forward guidance would suggest. Therefore, the steepness of the yield curve is becoming more attractive and the level of carry available for extending term is in excess of historical norms. However, this needs to be weighed against the low level of nominal and real yields available and the ongoing acceptance that Central Banks are focussing upon growth ahead of the potential for inflation in the future. Over recent weeks, we have started to add a little duration to the Fund as bonds mature, but continue to remain short of benchmark duration at this time. References to a benchmark are for illustrative purposes only. There is no guarantee that the Fund will outperform this benchmark. Butterfield UK Growth Fund 2013 was a strong year for UK equity markets; the benchmark MSCI UK index returned 18.8% compared to a 10.7% return the year before and a decline of 2.5% in 2011. The UK outlook has steadily improved with a strong housing market, declining unemployment and a partial rebound in consumer sentiment. As consumer and business confidence increased, cyclical sectors fared particularly well: consumer discretionary stocks returned 32.6% and information technology stocks 39.9%. However, the best performing sector in 2013 was telecommunication services, returning 61.7%. This was almost entirely attributable to Vodafone which makes up three-quarters of the index sector: the long-awaited sale of its stake it Verizon materialised and the stock price gained 61.5% during the year. In contrast, the materials sector performed the worst, losing 10.4% over the year due to a combination of low commodity prices, rising costs and slower growth in key economies like China. Valuations are reasonably attractive and the long term structural drivers for the sector are positive despite muted earnings in the near-term. We retain our neutral view on the sector. The Butterfield UK Growth Fund (the “Fund”) returned 14.1%, underperforming the index. The two primary reasons for this were our underweight exposure to the telecommunication services sector and an overweight in the energy sector. In hindsight, the reasoning for both looks to hold true: telecoms is low growth, extremely competitive, highly regulated and capital intensive; energy continues to look good value and offers enticing yields, whilst a normalising global economy and tight supply/demand balance bodes well for future earnings. We look forward to 2014 with cautious optimism. A repetition of last year seems highly unlikely, as valuations have increased as the market has risen. The year has begun in cautious mood as tapering in the US combined with slower global growth has caused disruption in emerging markets. However, the risk/reward trade-off remains positive, as does the outlook for the UK economy. References to a benchmark are for illustrative purposes only. There is no guarantee that the Fund will outperform this benchmark.

7

Investment Manager’s report (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 Butterfield USD Balanced Fund Global equity markets finished the year with a gain for the MSCI World in 2013 of 27.4% for USD investors. In contrast, US government bonds had a difficult year as yields rose, losing 0.3%. The Butterfield USD Balanced Fund (the “Fund”) again benefitted from its overweight position in equities and its underweight position in bonds although returns from emerging market equities and alternative assets tempered overall returns. US economic growth numbers were better than expected in quarter 3 and the improving economic environment was positive for equities but negative for bonds. Given that US government bonds were expensive on a real yield (after inflation) basis we continued to favour bonds with a relatively short maturity. This reduction in interest rate risk helped to protect capital values as bond yields increased to the psychologically important 3% level. Toward the end of the year, corporate bonds generated higher returns than government bonds as risk appetite improved and our PIMCO investment grade bond fund produced a pleasing positive return. US equities performed very strongly generating a 32% return over the year. Contrary to expectations at the start of the year volatility remained relatively low and US equities kept favour with global investors despite worries around tapering, debt ceiling negotiations and the government shutdown. Given the strong performance it was a difficult period for active managers to outperform the index so our passive holdings contributed positively to overall returns and being overweight US equities was also positive. Within international equities Japan was the standout performer with a return of 55% in local currency. A significant proportion of this return was driven by the earnings of Japanese exporters, which benefitted from a weakening Yen. As Japan progressed with ambitious measures aimed at ending years of deflation the currency weakened against all G10 currencies. We are equal weight Japanese equities but our exposure through Polar Capital is currency hedged so our Fund performed very strongly. Positive economic signals even emerged from the Eurozone, with GDP growth turning positive for the first time in seven quarters and unemployment finally stabilising at 12% overall, albeit with large divergence across the countries. We exited our position in the Allianz US Equity fund on the back of the departure of its manager and the uncertainty generated from the change in investment process. We reallocated this capital across other managers as it was not a large portion of the portfolio. Overall we remain positive on equity markets going into 2014 but given that improving economics and earnings are already priced in to some markets we do not see a repeat of 2013’s returns. Equities continue to look attractive relative to bonds based on historical averages but given that equities are more expensive than they were this time last year we remain vigilant to the risks and will look to reduce equity exposure if we do not see the risk reward trade-off as favourable.

Butterfield Bank (UK) Limited February 2014

8

Notes to the financial statements

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 1.

General information

Butterfield Asset Management Funds plc (the “Company”), was incorporated on 16 April 2012 under the Companies Acts 1963 to 2013 as an investment company with variable capital. The Company has been authorised in Ireland as an Undertakings for Collective Investment in Transferable Securities (“UCITS”) and an open-ended umbrella fund with segregated liability between sub-funds pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011, as amended (the “UCITS Regulations”). The Company is currently comprised of five sub-funds, Butterfield Global Growth Fund, Butterfield Sterling Balanced Fund, Butterfield Sterling Income Fund, Butterfield UK Growth Fund and Butterfield USD Balanced Fund. All sub-funds launched on the 26 October 2012. Each sub-fund has a distinct portfolio of investments. Each sub-fund aims to achieve its investment objective, as set out below, while spreading investment risks through investment in transferable securities and liquid financial assets in accordance with the UCITS Regulations. The transferable securities and liquid financial assets in which a sub-fund may invest generally must be listed, traded or dealt in on a regulated market except that, provided that it is set out in the investment policies of the relevant sub-fund, up to 10% of the net asset value (“NAV”) of a sub-fund may be invested in transferable securities and liquid financial assets which are not so listed, traded or dealt. 2.

Significant accounting policies

(a) Basis of preparation The audited financial statements of the Company have been prepared in accordance with accounting standards generally accepted in Ireland and Irish statute comprising the Companies Acts, 1963 to 2013 and the UCITS Regulations. Accounting standards generally accepted in Ireland in preparing financial statements, giving a true and fair view, are those published by Chartered Accountants Ireland and issued by the Financial Reporting Council (FRC). The format and certain wordings of the audited financial statements has been adapted from those contained in the Companies (Amendment) Act, 1986 and Financial Reporting Standard (“FRS”) No. 3 “Reporting Financial Performance” so that, in the opinion of the Directors, they more appropriately reflect the nature of the Company’s business as an investment fund. The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and liabilities at fair value through profit or loss. The Company has availed of the exemption available to open-ended investment funds under FRS 1 “Cash Flow Statements” not to prepare a cash flow statement. (b) Foreign currency (i)

Functional and presentation currency

The functional currency of Butterfield Global Growth Fund, Butterfield Sterling Balanced Fund, Butterfield Sterling Income Fund and Butterfield UK Growth Fund is British Pound (“GBP”) and the functional currency of Butterfield USD Balanced Fund is U.S. Dollar (“USD”). The Company has adopted the GBP as its presentation currency. (ii) Foreign currency translation Assets and liabilities denominated in currencies other than the functional currency of the sub-fund’s are translated into the functional currency using exchange rates prevailing at year end. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of assets and liabilities that are denominated in foreign currencies are recognised in profit or loss in the period in which they arise. (iii) Notional foreign exchange adjustment The foreign exchange adjustment arises due to the use of exchange rates at the reporting date to translate sub-funds that have a functional currency that differs to the presentation currency of the Company. The translation of the sub-funds functional currencies into the presentation currency of the Company is recognised separately through the statement of changes in net assets attributable to holders of redeemable participating shares. For the reporting date, the translation adjustment was a notional loss of £184,467; which has no impact on the NAV of each individual sub-fund (31 January 2013: notional gain of £34,291). (c) Financial assets at fair value through profit or loss (i)

Classification

The Company classifies its financial assets into the categories below in accordance with FRS 26 “Financial Instruments: Recognition and Measurement”. o

Financial assets held for trading are those acquired or incurred principally for the purpose of selling or repurchasing in the short term.

o

Financial assets designated at fair value through profit or loss at inception are those that are managed and their performance evaluated on a fair value basis in accordance with each sub-fund’s investment strategy.

The Company has classified all of its financial assets at fair value through profit or loss as held for trading for the reporting dates 31 January 2014 and 31 January 2013. (ii) Recognition All “regular way” purchases and sales of financial instruments are recognised using trade date accounting, the day that the Company commits to purchase or sell the asset. From this date any gains and losses arising from changes in fair value of the financial assets or financial liabilities are recorded. Regular way purchases, or sales, are purchases and sales of financial assets that require delivery of the asset within a time frame generally established by regulation or convention in the market place.

18

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 2.

Significant accounting policies (continued)

(c) Financial assets at fair value through profit or loss (continued) (iii) Measurement At initial recognition financial assets categorised at fair value through profit or loss are recognised initially at fair value, with transaction costs for such instruments being recognised directly in the profit and loss account. Subsequent to initial recognition, all instruments classified at fair value through profit or loss, are measured at fair value with changes in their fair value recognised in the profit and loss account. • •

Investments in listed equity positions and debt securities are valued at their latest traded price. Investments in investment funds are valued at their NAV as calculated by the relevant administrator.

In the event of it being impossible or incorrect to carry out a valuation of a specific investment in accordance with the valuation rules set out in the prospectus or if such valuation is not representative of an asset’s fair market value, a competent person appointed by the Company and approved for the purpose by BNY Mellon Trust Company (Ireland) Limited (the “Custodian”) is entitled to use such other generally recognised valuation method in order to reach a proper valuation of that specific instrument, provided that such method of valuation has been approved by the Custodian. (iv) Derecognition Financial assets are derecognised when the contractual rights to the cash flows from the investments have expired or the Company has transferred substantially all risks and rewards of ownership. (v) Offsetting The Company only offsets financial assets at fair value through profit or loss if the Company has a legally enforceable right to set off the recognised amounts and either intends to settle on a net basis, or to realise the asset and settle the liability simultaneously. (d)

Income

Dividends and interest arising on the investments are recognised as income of the Company on an ex-dividend or interest date, and for deposits of the Company, on an accrual basis. (e)

Net gain/(loss) from financial instruments at fair value through profit or loss

Net gain/(loss) from financial instruments at fair value through profit or loss includes all realised and unrealised fair value changes and foreign exchange differences. Net realised gain/(loss) from financial instruments at fair value through profit or loss is calculated using the average cost method. (f) Cash at bank Cash at bank comprises of deposits with banks and bank overdrafts held with the Bank of New York Mellon SA/NV, a sub-custodian of the Custodian and fixed term deposits with Butterfield Private Bank (private banking section of Butterfield Bank (UK) Limited). See note 4 for further details. (g) Expenses All expenses are recognised in the profit and loss account on an accrual basis. (h) Redeemable participating shares Redeemable participating shares are redeemable at the shareholders option and are classified as financial liabilities. Any distribution on these shares is recognised in the profit and loss account as finance costs. (i)

Withholding tax

The Company currently incurs withholding taxes imposed by certain countries on investment income. Such income is recorded gross of withholding taxes in the profit and loss account. Withholding taxes are shown as a separate item in the profit and loss account. (j)

Transaction costs

Transaction costs are incremental costs, which are separately identifiable and directly attributable to the acquisition, issue or disposal of a financial asset or financial liability. Transaction costs are included in the profit and loss account as part of net gain of financial assets at fair value through profit or loss and foreign exchange. The following costs are included in the transaction costs disclosure: - identifiable brokerage charges and commissions; - identifiable transaction related taxes and other market charges; - separately identifiable transaction costs related to derivatives. (k) Securities purchased payable Securities purchased payable represents payable amounts for securities that have been contracted for but not yet settled or delivered on the reporting date. These amounts are recognised at cost and include all transaction costs and commissions due in relation to the trade.

19

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 3.

Financial assets at fair value through profit or loss

(i)

Net gains on financial assets at fair value through profit or loss

For the year ended 31 January 2014

Net realised gain on financial assets at fair value through profit or loss and foreign exchange Change in unrealised gain/(loss) on financial assets at fair value through profit or loss and foreign exchange Net gain/(loss) on financial assets at fair value through profit or loss and foreign exchange

Butterfield Global Growth Fund GBP

Butterfield Sterling Balanced Fund GBP

Butterfield Sterling Income Fund GBP

Butterfield UK Growth Fund GBP

Butterfield USD Balanced Fund USD

Total GBP

220,043

808,185

4,909

34,651

72,188

1,113,793

158,870

727,811

(6,994)

316,467

547,838

1,545,287

378,913

1,535,996

(2,085)

351,118

620,026

2,659,080

Butterfield Global Growth Fund GBP

Butterfield Sterling Balanced Fund GBP

Butterfield Sterling Income Fund GBP

Butterfield UK Growth Fund GBP

Butterfield USD Balanced Fund USD

Total GBP

6,062

16,309

(508)

21,036

4,877

45,936

240,690

1,068,219

24,039

415,320

198,528

1,871,882

246,752

1,084,528

23,531

436,356

203,405

1,917,818

For the period ended 31 January 2013

Net realised gain/(loss) on financial assets at fair value through profit or loss and foreign exchange Change in unrealised gain/(loss) on financial assets at fair value through profit or loss and foreign exchange Net gain on financial assets at fair value through profit or loss and foreign exchange

20

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 3.

Financial assets at fair value through profit or loss (continued)

(ii)

Fair value of financial instruments

FRS 26 requires investments in securities held long to be valued at bid price. The difference between the dealing NAV and the FRS 26 adjusted NAV was deemed immaterial for adjustment for the reporting dates 31 January 2014 and 31 January 2013. FRS 29 establishes a fair value hierarchy for inputs used in measuring fair value that classifies investments according to how observable the inputs are. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions, made in good faith, about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorised into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities; Level 2 - Valuations based on quoted prices in markets that are not active or inputs other than quoted prices for which all significant inputs are observable, either directly (as prices) or indirectly (derived from prices); and Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Observable data is considered to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorisation of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to Butterfield Bank (UK) Limited’s (the “Investment Manager”) perceived risk of that instrument. There were no transfers between level 1 and level 2 during the year. As at 31 January 2014 Level 1

Level 2

Level 3

Total

GBP

GBP

GBP

GBP

1,180,264 1,180,264

2,069,702 2,069,702

-

3,249,966 3,249,966

GBP

GBP

GBP

GBP

1,132,088 1,311,362 2,443,450

2,843,286 22,344,996 25,188,282

-

2,843,286 1,132,088 23,656,358 27,631,732

Butterfield Sterling Income Fund Held for trading Debt securities CIS Financial assets at fair value through profit or loss

GBP

GBP

GBP

GBP

-

5,480,873 3,377,158 8,858,031

-

5,480,873 3,377,158 8,858,031

Butterfield UK Growth Fund Held for trading CIS Equity securities Financial assets at fair value through profit or loss

GBP

GBP

GBP

GBP

10,112,219 10,112,219

241,815 241,815

-

241,815 10,112,219 10,354,034

USD

USD

USD

USD

307,869 1,706,528 2,014,397

806,002 4,474,220 5,280,222

-

806,002 307,869 6,180,748 7,294,619

Level 1

Level 2

Level 3

Total

GBP

GBP

GBP

GBP

851,405 851,405

2,093,684 2,093,684

-

2,945,089 2,945,089

Butterfield Global Growth Fund Held for trading CIS Financial assets at fair value through profit or loss Butterfield Sterling Balanced Fund Held for trading Debt securities Other transferable securities CIS Financial assets at fair value through profit or loss

Butterfield USD Balanced Fund Held for trading Debt securities Other transferable securities CIS Financial assets at fair value through profit or loss As at 31 January 2013

Butterfield Global Growth Fund Held for trading CIS Financial assets at fair value through profit or loss

21

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 3.

Financial assets at fair value through profit or loss (continued)

(ii)

Fair value of financial instruments (continued)

As at 31 January 2013 (continued) Level 1

Level 2

Level 3

Total

GBP

GBP

GBP

GBP

923,776 923,776

2,013,435 17,301,563 19,314,998

-

2,013,435 923,776 17,301,563 20,238,774

Butterfield Sterling Income Fund Held for trading Debt securities CIS Financial assets at fair value through profit or loss

GBP

GBP

GBP

GBP

-

6,584,367 3,354,678 9,939,045

-

6,584,367 3,354,678 9,939,045

Butterfield UK Growth Fund Held for trading Equity securities Financial assets at fair value through profit or loss

GBP

GBP

GBP

GBP

9,910,016 9,910,016

-

-

9,910,016 9,910,016

USD

USD

USD

USD

187,222 658,314 845,536

709,019 2,663,420 3,372,439

-

709,019 187,222 3,321,734 4,217,975

Butterfield Sterling Balanced Fund Held for trading Debt securities Other transferable securities CIS Financial assets at fair value through profit or loss

Butterfield USD Balanced Fund Held for trading Debt securities Other transferable securities CIS Financial assets at fair value through profit or loss 4.

Cash at bank

Cash at bank represents the cash balances held at the Custodian and Butterfield Private Bank. The Standard & Poor’s credit rating for The Bank of New York, the parent Company of the Custodian, is AA- as at 31 January 2014 (31 January 2013: AA-). The Custodian is not rated. 5.

Investment management fee

Under the investment management agreement, Capita Financial Managers (Ireland) Limited (the “Manager”) procures that the Company will pay to the Investment Manager an investment management fee at the rates specified in the following table, which accrues daily and is paid monthly in arrears. The Investment Manager is also entitled to be reimbursed out of the assets of the Company for its reasonable out-of pocket expenses.

Sub-fund Butterfield Global Growth Fund Butterfield Sterling Balanced Fund Butterfield Sterling Income Fund Butterfield UK Growth Fund Butterfield USD Balanced Fund

% NAV

Actual fee charged during the reporting period

Up to 1.50% Up to 1.50% Up to 1.50% Up to 1.50% Up to 1.50%

1.50% 1.43% 0.74% 0.87% 1.50%

Total investment management fees accrued at the reporting date and charged during the year are disclosed in the balance sheet and profit and loss account respectively. 6.

Management and administration fee

Under the management agreement, the Company pays to the Manager an annual management fee up to 5% of the NAV of each sub-fund subject to a minimum fee of an amount equal to the greater of 0.12% per annum of the NAV of the Company or an annual minimum fee across all existing sub-funds of €375,000. (In the event of the creation of additional sub-funds, this minimum amount of €375,000 may be increased). The management fee is apportioned between the sub-funds pro rata to the NAV of the sub-funds during the relevant period. Such fees accrue daily and are paid monthly in arrears. The Company pays financial statement production fees, transaction fees, account fees and corporate secretarial fees to the Manager at normal commercial rates. Such fees accrue daily and, with the exception of the corporate secretarial fees, are paid monthly in arrears. The corporate secretarial fees are paid in advance. In addition, the Manager is entitled to be reimbursed its reasonable vouched out-of-pocket expenses. Each sub-fund bears its pro rata share of such out-of pocket expenses. The Manager discharges the fees and out-of-pocket expenses of Capita Financial Administrators (Ireland) Limited (the “Administrator”) from the fee it receives from the Company. Total management and administration fees accrued at the reporting date and charged during the year are disclosed in the balance sheet and profit and loss account respectively. 22

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 7.

Custodian fee

The Custodian receives a fee which is accrued daily and paid monthly in arrears at the annual rate of up to 0.02% of the NAV of each of the sub-funds, subject to a minimum fee of €25,000 per sub-fund per annum. The Custodian is entitled to be reimbursed its reasonable out-of-pocket expenses, transaction and account costs at normal commercial rates, from the assets of each of the sub-funds. The Custodian is further entitled to be reimbursed any sub-custodian fees and expenses, at normal commercial rates. Total custodian fees accrued at the reporting date and charged during the year are disclosed in the balance sheet and profit and loss account respectively. 8.

Directors’ fee

The Company pays the Directors such annual remuneration for acting as Directors of the Company as the Directors may from time to time agree, provided, however, that the annual aggregate remuneration per Director shall not exceed €45,000. The Directors are entitled to reimbursement by the Company for all reasonable disbursements and out of pocket expenses incurred by them. Total directors’ fee accrued at the reporting date and charged during the year are disclosed in the balance sheet and profit and loss account respectively. 9.

Audit fee

Fees and expenses charged by the Company’s statutory Auditor, Deloitte & Touche, in respect of the reporting period ended 31 January 2014, entirely relate to the audit of the financial statements of the Company €15,500 (31 January 2013: €13,500 exclusive of VAT). The amount reflected in the profit and loss account is inclusive of VAT of 23% and is an estimate and will differ to the above amounts. There were no other fees or expenses charged in respect of other assurance, non routine tax advisory or non-audit services provided by the statutory Auditor for the year ended 31 January 2014 (2013: nil).

23

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 10. Transaction costs The Company incurred transaction costs as follows: For the year ended 31 January 2014

Transaction costs

Butterfield Global Growth Fund GBP 1,428

Butterfield Sterling Balanced Fund GBP 16,611

Butterfield Sterling Income Fund GBP 2,110

Butterfield UK Growth Fund GBP 14,026

Butterfield USD Balanced Fund USD 4,263

Total GBP 36,892

Butterfield Global Growth Fund GBP 465

Butterfield Sterling Balanced Fund GBP 11,912

Butterfield Sterling Income Fund GBP -

Butterfield UK Growth Fund GBP 19,318

Butterfield USD Balanced Fund USD 628

Total GBP 32,086

For the period ended 31 January 2013

Transaction costs 11. Other expenses

The Company held the below accruals on the balance sheet at the reporting date: As at 31 January 2014

Expenses Professional fee Legal fee Other fees charged by the Administrator Directors’ insurance fee MLRO fee Regulatory fee Total

Butterfield Global Growth Fund GBP 268 171 320 223 57 112 1,151

Butterfield Sterling Balanced Fund GBP 2,278 1,344 941 1,856 478 514 7,411

Butterfield Sterling Income Fund GBP 682 505 956 639 138 188 3,108

Butterfield UK Growth Fund GBP 793 560 973 723 87 213 3,349

Butterfield USD Balanced Fund USD 559 380 436 459 105 138 2,077

Total GBP 4,362 2,811 3,455 3,720 824 1,111 16,283

Butterfield Global Growth Fund GBP 542 489 41 60 (704) 428

Butterfield Sterling Balanced Fund GBP 4,634 3,331 282 406 (4,803) 3,850

Butterfield Sterling Income Fund GBP 2,066 3,404 155 225 (2,666) 3,184

Butterfield UK Growth Fund GBP 1,895 3,119 141 206 (2,434) 2,927

Butterfield USD Balanced Fund USD 738 679 56 81 (940) 614

Total GBP 9,602 10,772 654 948 (11,200) 10,776

As at 31 January 2013

Expenses Professional fees Other fees charged by the Administrator MLRO fee Regulatory fee Adjustment to audit fee accrual Total

24

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 11. Other expenses (continued) The below fees were charged through the profit and loss account up to the reporting date: For the year ended 31 January 2014

Expenses Professional fees Legal fee Other fees charged by the Administrator Directors’ insurance fee MLRO fees Regulatory fees Bank charges VAT expense Total

Butterfield Global Growth Fund GBP 529 1,370 3,156 766 743 394 444 386 7,788

Butterfield Sterling Balanced Fund GBP 4,192 11,117 19,017 5,501 4,974 1,555 3,177 3,207 52,740

Butterfield Sterling Income Fund GBP 1,147 3,902 10,590 2,836 1,876 606 1,181 1,152 23,290

Butterfield UK Growth Fund GBP 1,556 4,299 11,442 2,480 1,984 1,268 1,285 1,234 25,548

Butterfield USD Balanced Fund USD 1,509 2,887 4,949 1,214 1,589 766 1,259 872 15,045

Total GBP 8,386 22,528 47,358 12,357 10,590 4,311 6,889 6,535 118,954

Butterfield Global Growth Fund GBP 701 1,052 193 135 60 500 (704) 1,937

Butterfield Sterling Balanced Fund GBP 5,729 6,339 1,706 925 406 500 (4,803) 10,802

Butterfield Sterling Income Fund GBP 2,653 5,215 732 512 225 500 (2,666) 7,171

Butterfield UK Growth Fund GBP 2,426 4,708 669 467 206 500 (2,434) 6,542

Butterfield USD Balanced Fund USD 958 1,515 265 184 81 546 (940) 2,609

Total GBP 12,106 18,257 3,465 2,154 947 2,340 (11,192) 28,077

For the period ended 31 January 2013

Expenses Professional fees Other fees charged by the Administrator Directors’ insurance fee MLRO fees Regulatory fees Bank charges Adjustment to audit fee accrual Total

25

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 12. Exchange rates The following spot foreign exchange rates were used to convert the assets and liabilities held in foreign currencies other than the functional currency of the Company at the reporting date. 31 January 2014 31 January 2013 Currency Exchange rate to GBP Exchange rate to GBP Euro 0.820563 0.858682 United States Dollar 0.608480 0.630740 13. Share capital Authorised The Company has an authorised share capital of 500,000,000,000 shares of no par value. Subscriber shares The issued share capital of the Company is €2 represented by 2 subscriber shares (issued for the purposes of the incorporation of the Company) which are beneficially owned by the Investment Manager. The subscriber shares do not form part of the NAV of the Company and are thus disclosed in the financial statements by way of this note only. In the opinion of the Directors, this disclosure reflects the nature of the Company’s business as an investment fund. Redeemable participating shares Redeemable participating shares carry the right to a proportionate share in the assets of the sub-funds and the holders of redeemable participating shares are entitled to attend and vote at all meetings of the Company and the relevant sub-fund. Shares are redeemable by holders of the relevant share class at the respective NAV per share. Issued share capital The Company had the following shareholder transactions during the reporting period: For the reporting period ended 31 January 2014 Butterfield Global Growth Fund

Butterfield Sterling Balanced Fund

Butterfield Sterling Income Fund

Butterfield UK Growth Fund

Butterfield USD Balanced Fund

3,091,090.3470 739,712.9322 (877,888.2752) 2,952,915.0040

21,254,731.6640 7,850,776.6457 (2,748,395.7066) 26,357,112.6031

-

-

4,061,072.0437 3,218,144.3018 (720,371.0096) 6,558,845.3359

-

-

10,568,135.2529 1,785,871.2613 (2,621,014.1226) 9,732,992.3916

9,576,755.9971 1,556,150.2812 (1,336,097.8179) 9,796,808.4604

-

For the reporting period ended 31 January 2013 Butterfield Global Growth Fund

Butterfield Sterling Balanced Fund

Butterfield Sterling Income Fund

Butterfield UK Growth Fund

Butterfield USD Balanced Fund

3,164,672.5553 (73,582.2083) 3,091,090.3470

21,683,142.8177 (428,411.1537) 21,254,731.6640

-

-

4,317,121.5780 (256,049.5343) 4,061,072.0437

-

-

12,626,486.0734 (2,058,350.8205) 10,568,135.2529

10,157,419.1205 (580,663.1234) 9,576,755.9971

-

Accumulating Class Opening balance Shares issued Shares redeemed Closing balance Income Class Opening balance Shares issued Shares redeemed Closing balance

Accumulating Class Opening balance Shares issued Shares redeemed Closing balance Income Class Opening balance Shares issued Shares redeemed Closing balance

14. Financial instruments and risk management The main risks to which the Company is exposed are set out in the prospectus and any consideration of the risks here should be viewed in the context of the prospectus which is the primary document governing the operation of the Company. The Company’s investment activities expose it to various types of risks that are associated with the financial investments and markets in which it invests. Asset allocation is determined by the Investment Manager, who manages the distribution of assets to achieve the investment objectives. Divergence from target asset allocation and the composition of the portfolios of the sub-funds is closely monitored by the Investment Manager.

26

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 14. Financial instruments and risk management (continued) As a high proportion of the Company’s investments are in other CIS, the Company may be subject to valuation risk due to the manner and timing of valuations of the relevant sub-funds' investments. Underlying CIS may be valued by fund administrators affiliated to fund managers, or by the fund managers themselves, or, for open-ended underlying funds that are not valued daily, on the basis of the latest available NAV, resulting in valuations which are not verified by an independent third party on a regular or timely basis. Accordingly there is a risk that (i) the valuations of CIS may not reflect the true value of underlying CIS holdings at a specific time which could result in significant losses or inaccurate pricing for these CIS and/or (ii) valuation may not be available on the valuation day for a sub-fund so that some or all of the assets of the sub-fund may be valued on an estimated basis. The Investment Manager has developed mechanisms designed to ensure that risk is controlled effectively and systematically in all markets, strategies and sectors and if total risk deviates outside pre-determined thresholds, the risk is brought back within acceptable limits. The nature and extent of the financial instruments outstanding at the reporting date and the specific risk management policies employed by the Investment Manager in respect of the sub-funds are discussed below. Market risk Market risk arises from uncertainty about future prices of financial investments held by a sub-fund, whether those changes are caused by factors specific to individual financial instruments, or other factors affecting a number of similar financial instruments traded in the markets. It represents the potential loss a sub-fund might suffer through holding market positions in the face of price movements. Usually the maximum risk resulting from financial instruments is determined by the opening fair value of the instruments. Market risk consists of currency risk, interest rate risk and other price risk. (i)

Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. A portion of the net assets of the sub-funds are denominated in currencies other than the functional currency with the effect that the financial statements and total return can be significantly affected by currency movements. The Company does not actively manage currency risk. The following table sets out the Company’s total exposure to foreign currency risk: As at 31 January 2014

British Pound Euro United States Dollar Total

Butterfield Global Growth Fund GBP 1,592,106 1,592,106

Butterfield Sterling Balanced Fund GBP 2,626,941 2,626,941

Butterfield Sterling Income Fund GBP -

Butterfield UK Growth Fund GBP 5,869 2,382 8,251

Butterfield USD Balanced Fund USD 2,790,799 2,790,799

Butterfield Global Growth Fund GBP 1,331,311 1,331,311

Butterfield Sterling Balanced Fund GBP 2,813,382 2,813,382

Butterfield Sterling Income Fund GBP -

Butterfield UK Growth Fund GBP -

Butterfield USD Balanced Fund USD 1,578,235 1,578,235

As at 31 January 2013

British Pound United States Dollar Total

The following table demonstrates the impact on net assets attributable to holders of redeemable participating shares of a movement in local currencies against each sub-funds’ functional currency. The table assumes a 10% upwards movement in the value of the local currencies (a negative 10% would have an equal, but opposite, effect). Sub-fund Butterfield Global Growth Fund Butterfield Sterling Balanced Fund Butterfield Sterling Income Fund Butterfield UK Growth Fund Butterfield USD Balanced Fund

Currency GBP GBP GBP GBP USD

31 January 2014 159,211 262,694 825 279,080

31 January 2013 133,131 281,338 157,824

(ii) Interest rate risk If not reflected in the market price itself, the effect of interest rate movements on the present value of future payments represents an additional risk in the value of securities to be considered. Interest rate risk represents the potential losses that a sub-fund might suffer due to adverse movements in relevant interest rates. The value of fixed interest securities may be affected by changes in the interest rate environment and the amount of income receivable from floating rate securities and bank balances, or payable on overdrafts, will also be affected by fluctuations in interest rates. The Investment Manager monitors the sub-funds' securities and cash positions on a daily basis to ensure each sub-fund is not suffering from adverse fluctuations in interest rates (e.g. running a large overdraft balance).

27

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 14. Financial instruments and risk management (continued) Market risk (continued) (ii) Interest rate risk (continued) The tables below show the comparative numerical interest rate exposure of the sub-funds at the reporting date: As at 31 January 2014

>12 months

Not subject to interest rate risk

Total

GBP

GBP

GBP

GBP

303,648 303,648

-

-

3,249,966 7,910 3,257,876

3,249,966 303,648 7,910 3,561,524

-

-

-

89,568

89,568

303,648

-

-

3,168,308

3,471,956

Less than 6 months

6 to 12 months

>12 months

Not subject to interest rate risk

Total

GBP

GBP

GBP

GBP

GBP

1,458,032 4,601 1,462,633

-

2,843,286 2,843,286

24,788,446 34,232 91,267 24,913,945

27,631,732 1,458,032 38,833 91,267 29,219,864

-

-

-

67,609

67,609

Total interest sensitivity

1,462,633

-

2,843,286

24,846,336

29,152,255

Sub-fund

Less than 6 months

6 to 12 months

>12 months

Not subject to interest rate risk

Total

GBP

GBP

GBP

GBP

GBP

689,668 496 690,164

513,454 513,454

4,967,419 4,967,419

3,377,158 47,765 11,808 3,436,731

8,858,031 689,668 48,261 11,808 9,607,768

-

-

-

19,677

19,677

690,164

513,454

4,967,419

3,417,054

9,588,091

Sub-fund Butterfield Global Growth Fund Financial assets Financial assets at fair value through profit or loss Cash at bank Other assets

Financial liabilities Total interest sensitivity

Sub-fund Butterfield Sterling Balanced Fund Financial assets Financial assets at fair value through profit or loss Cash at bank Interest receivable Other assets

Financial liabilities

Butterfield Sterling Income Fund Financial assets Financial assets at fair value through profit or loss Cash at bank Interest receivable Other assets

Less than 6 months

6 to 12 months

GBP

Financial liabilities Total interest sensitivity

28

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 14. Financial instruments and risk management (continued) Market risk (continued) (ii) Interest rate risk (continued) The tables below show the comparative numerical interest rate exposure of the sub-funds at the reporting date (continued): As at 31 January 2014 (continued)

Sub-fund Butterfield UK Growth Fund Financial assets Financial assets at fair value through profit or loss Cash at bank Other assets

>12 months

Not subject to interest rate risk

Total

GBP

GBP

GBP

GBP

160,183 160,183

-

-

10,354,034 25,929 10,379,963

10,354,034 160,183 25,929 10,540,146

-

-

-

23,256

23,256

160,183

-

-

10,356,707

10,516,890

Less than 6 months

6 to 12 months

GBP

Financial liabilities Total interest sensitivity

Sub-fund Butterfield USD Balanced Fund Financial assets Financial assets at fair value through profit or loss Cash at bank Interest receivable Other assets

Financial liabilities Total interest sensitivity

>12 months

Not subject to interest rate risk

Total

USD

USD

USD

USD

10,139 66,957 77,096

13,352 13,352

782,511 782,511

6,488,617 7,145 19,330 6,515,092

7,294,619 66,957 7,145 19,330 7,388,051

-

-

-

21,230

21,230

77,096

13,352

782,511

6,493,862

7,366,821

Less than 6 months

6 to 12 months

USD

As at 31 January 2013

Sub-fund Butterfield Global Growth Fund Financial assets Financial assets at fair value through profit or loss Cash at bank Other assets

Financial liabilities Total interest sensitivity

>12 months

Not subject to interest rate risk

Total

GBP

GBP

GBP

GBP

394,260 394,260

-

-

2,945,089 10,023 2,955,112

2,945,089 394,260 10,023 3,349,372

-

-

-

9,513

9,513

394,260

-

-

2,945,599

3,339,859

Less than 6 months

6 to 12 months

GBP

29

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 14. Financial instruments and risk management (continued) Market risk (continued) (ii) Interest rate risk (continued) The tables below show the comparative numerical interest rate exposure of the sub-funds at the reporting date (continued): As at 31 January 2013 (continued)

>12 months

Not subject to interest rate risk

Total

GBP

GBP

GBP

GBP

3,259,176 3,259,176

-

2,013,435 2,013,435

18,225,339 91,102 18,316,441

20,238,774 3,259,176 91,102 23,589,052

-

-

-

1,316,132

1,316,132

Total interest sensitivity

3,259,176

-

2,013,435

17,000,309

22,272,920

Sub-fund

Less than 6 months

6 to 12 months

>12 months

Not subject to interest rate risk

Total

GBP

GBP

GBP

GBP

GBP

506,045 578,945 1,084,990

2,687,051 2,687,051

3,391,271 3,391,271

3,354,678 68,049 3,422,727

9,939,045 578,945 68,049 10,586,039

-

-

-

28,033

28,033

Total interest sensitivity

1,084,990

2,687,051

3,391,271

3,394,694

10,558,006

Sub-fund

Less than 6 months

6 to 12 months

>12 months

Not subject to interest rate risk

Total

GBP

GBP

GBP

GBP

GBP

114,093 114,093

-

-

9,910,016 48,174 9,958,190

9,910,016 114,093 48,174 10,072,283

-

-

-

27,452

27,452

114,093

-

-

9,930,738

10,044,831

Less than 6 months

6 to 12 months

>12 months

Not subject to interest rate risk

Total

USD

USD

USD

USD

USD

54,385 203,211 257,596

-

654,634 654,634

3,508,956 12,778 3,521,734

4,217,975 203,211 12,778 4,433,964

-

-

-

192,805

192,805

257,596

-

654,634

3,328,929

4,241,159

Sub-fund Butterfield Sterling Balanced Fund Financial assets Financial assets at fair value through profit or loss Cash at bank Other assets

Financial liabilities

Butterfield Sterling Income Fund Financial assets Financial assets at fair value through profit or loss Cash at bank Other assets

Financial liabilities

Butterfield UK Growth Fund Financial assets Financial assets at fair value through profit or loss Cash at bank Other assets

Financial liabilities Total interest sensitivity

Sub-fund Butterfield USD Balanced Fund Financial assets Financial assets at fair value through profit or loss Cash at bank Other assets

Financial liabilities Total interest sensitivity

Less than 6 months

6 to 12 months

GBP

30

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 14. Financial instruments and risk management (continued) Market risk (continued) (iii)

Other price risk

Other price risk arises mainly from uncertainty about future prices of investments held. It represents the potential loss the Company might suffer through holding market positions in the face of price movements. The Investment Manager manages each sub-fund’s market price risk on a daily basis in accordance with each sub-fund’s investment objective and policies. The following table demonstrates the impact on net assets attributable to holder’s of redeemable participating shares of a movement in market prices. The table assumes a 10% upwards movement in investment market prices (a negative 10% would have an equal, but opposite, effect). Other price sensitivity Butterfield Global Growth Fund Butterfield Sterling Balanced Fund Butterfield Sterling Income Fund Butterfield UK Growth Fund Butterfield USD Balanced Fund

31 January 2014 £324,997 £2,478,845 £337,716 £1,035,403 $644,862

31 January 2013 £294,509 £2,023,877 £993,905 £991,002 $421,798

Liquidity risk Liquidity risk is the risk that the Company may not be able to settle or meet its obligations on time or at a reasonable price. In some circumstances, investments may be relatively illiquid making it difficult to acquire or dispose of them at the prices quoted on the various exchanges. Accordingly, the sub-fund’s ability to respond to market movements may be impaired and the sub-fund may experience adverse price movements upon liquidation of its investments. There can be no assurance that the liquidity of the investments of underlying CIS will always be sufficient to meet redemption requests as and when made. Any lack of liquidity may affect the liquidity of the shares of a sub-fund and the value of its investments. The liquidity of the exchanges and the individual stocks are monitored by the Investment Manager and, where liquidity issues arise, the Investment Manager will trade accordingly. The main liability of the Company is the net assets attributable to redeemable participating shareholders which may be redeemed by shareholders on any dealing day. The below table summarises the Company’s financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date: As at 31 January 2014 Butterfield Global Growth Fund

Liabilities Other liabilities Net assets attributable to holders of redeemable participating shares

Less than 1 month GBP

1 to 3 Months GBP

3 months to 1 year GBP

No stated Maturity GBP

Total GBP

89,568

-

-

-

89,568

3,471,956 3,561,524

-

-

-

3,471,956 3,561,524

Butterfield Sterling Balanced Fund

Liabilities Other liabilities Net assets attributable to holders of redeemable participating shares

Less than 1 month GBP

1 to 3 Months GBP

3 months to 1 year GBP

No stated Maturity GBP

Total GBP

67,609

-

-

-

67,609

29,152,255 29,219,864

-

-

-

29,152,255 29,219,864

Less than 1 month GBP

1 to 3 Months GBP

3 months to 1 year GBP

No stated Maturity GBP

Total GBP

19,677

-

-

-

19,677

9,588,091 9,607,768

-

-

-

9,588,091 9,607,768

Less than 1 month GBP

1 to 3 Months GBP

3 months to 1 year GBP

No stated Maturity GBP

Total GBP

23,256

-

-

-

23,256

10,516,890 10,540,146

-

-

-

10,516,890 10,540,146

Butterfield Sterling Income Fund

Liabilities Other liabilities Net assets attributable to holders of redeemable participating shares Butterfield UK Growth Fund

Liabilities Other liabilities Net assets attributable to holders of redeemable participating shares

31

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 14. Financial instruments and risk management (continued) Liquidity risk (continued) As at 31 January 2014 (continued) Butterfield USD Balanced Fund

Liabilities Other liabilities Net assets attributable to holders of redeemable participating shares

Less than 1 month USD

1 to 3 Months USD

3 months to 1 year USD

No stated Maturity USD

Total USD

21,230

-

-

-

21,230

7,366,821 7,388,051

-

-

-

7,366,821 7,388,051

As at 31 January 2013 Butterfield Global Growth Fund

Liabilities Other liabilities Net assets attributable to holders of redeemable participating shares

Less than 1 month GBP

1 to 3 Months GBP

3 months to 1 year GBP

No stated Maturity GBP

Total GBP

9,513

-

-

-

9,513

3,339,859 3,349,372

-

-

-

3,339,859 3,349,372

Less than 1 month GBP

1 to 3 Months GBP

3 months to 1 year GBP

No stated Maturity GBP

Total GBP

1,316,132

-

-

-

1,316,132

22,272,920 23,589,052

-

-

-

22,272,920 23,589,052

Less than 1 month GBP

1 to 3 Months GBP

3 months to 1 year GBP

No stated Maturity GBP

Total GBP

28,033

-

-

-

28,033

10,558,006 10,586,039

-

-

-

10,558,006 10,586,039

Less than 1 month GBP

1 to 3 Months GBP

3 months to 1 year GBP

No stated Maturity GBP

Total GBP

27,452

-

-

-

27,452

10,044,831 10,072,283

-

-

-

10,044,831 10,072,283

Less than 1 month USD

1 to 3 Months USD

3 months to 1 year USD

No stated Maturity USD

Total USD

192,805

-

-

-

192,805

4,241,159 4,433,964

-

-

-

4,241,159 4,433,964

Butterfield Sterling Balanced Fund

Liabilities Other liabilities Net assets attributable to holders of redeemable participating shares Butterfield Sterling Income Fund

Liabilities Other liabilities Net assets attributable to holders of redeemable participating shares Butterfield UK Growth Fund

Liabilities Other liabilities Net assets attributable to holders of redeemable participating shares Butterfield USD Balanced Fund

Liabilities Other liabilities Net assets attributable to holders of redeemable participating shares

Credit risk Credit risk is the risk that a company’s counterparty or investment issuer will be unable or unwilling to meet a commitment that it has entered into and cause the company to incur a financial loss. A company will be exposed to settlement risk in respect of parties with whom it trades and custodian risk in respect of the Custodian and its sub-custodians. In managing credit risk, the Investment Manager, on behalf of the Company, seeks to do business with institutions that are well known, financially sound and where appropriate well rated by rating agencies.

32

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 14. Financial instruments and risk management (continued) Credit risk (continued) Settlement risk: Most transactions in listed securities are settled on delivery versus payment basis (“DVP”) with settlement a few days after execution. Default by the Broker could expose the Company to an adverse price movement in the security between execution and default. Because the Company would only be exposed to a potentially adverse market move (rather than 100% of the principal sum) during a short period, this risk is limited. In addition, default by regulated Brokers in the major markets is rare. Custodian risk: Custody risk is the risk of loss of assets held in custody. This is not a “primary credit risk” as the unencumbered assets of the Company are segregated from the Custodian’s own assets and the Custodian requires its sub-custodians likewise to segregate non-cash assets. This mitigates custody risk but does not entirely eliminate it. The Custodian has the power to appoint sub-custodians, although, in accordance with the terms of the custodian agreement, the Custodian’s liability shall not be affected by the fact that it has entrusted some or all of the assets in safekeeping to any third party (in order for the Custodian to discharge this responsibility, the Custodian must exercise care and diligence in choosing and appointing a third party as a safe-keeping agent so as to ensure that the third party has and maintains the expertise, competence and standing appropriate to discharge the responsibilities concerned and the Custodian must maintain an appropriate level of supervision over the safe-keeping agent and make appropriate enquiries from time to time to confirm that the obligations of the agent continue to be competently discharged). Custody and title risk: The Custodian is under a duty to take into custody and to hold the property of each sub-fund of the Company on behalf of its shareholders. The Central Bank of Ireland requires the Custodian to hold legally separately the non-cash assets of each subfund and to maintain sufficient records to clearly identify the nature and amount of all assets that it holds, the ownership of each asset and where the documents of title to such assets are physically located. When the Custodian employs a sub-custodian the Custodian retains responsibility for the assets of the sub-fund. However, it should be noted that not all jurisdictions have the same rules and regulations as Ireland regarding the custody of assets and the recognition of the interests of a beneficial owner such as a sub-fund. Therefore, in such jurisdictions, there is a risk that if a sub-custodian becomes bankrupt or insolvent, the sub-fund’s beneficial ownership of the assets held by such sub-custodian may not be recognised and consequently the creditors of the sub-custodian may seek to have recourse to the assets of the sub-fund. In those jurisdictions where the sub-fund’s beneficial ownership of its assets is ultimately recognised, the sub-fund may suffer delay and cost in recovering those assets. The Funds may invest in markets where custodial and/or settlement systems are not fully developed, the assets of a Fund which are traded in such markets and which have been entrusted to sub-custodians, in circumstances where the use of such sub-custodians is necessary, may be exposed to risk in circumstances whereby the Custodian will have no liability. The Standard & Poor’s credit rating for the Bank of New York, the parent Company of the Custodian, is AA- at the reporting date (31 January 2013: AA-). The Custodian is not rated. 15. Taxation The Company qualifies as an investment undertaking as defined in Section 739B (1) of the Taxes Consolidation Act, 1997, (the “Taxes Act”) as amended from time to time. Under current Irish law and practice, the Company is not chargeable to Irish tax on its income and gains. However, tax can arise on the happening of a “chargeable event” in the Company. A chargeable event includes any distribution payments to shareholders or any encashment, redemption, cancellation, transfer or deemed disposal (a deemed disposal will occur at the expiration of a relevant period) of shares or the appropriation or cancellation of shares of a shareholder by the Company for the purposes of meeting the amount of tax payable on a gain arising on a transfer. No tax will arise on the Company in respect of chargeable events in respect of a shareholder who is neither Irish resident nor ordinarily resident in Ireland at the time of the chargeable event provided that a relevant declaration is in place and the Company is not in possession of any information which would reasonably suggest that the information contained therein is no longer materially correct. Dividends, interest and capital gains (if any) which the Company or any sub-fund receives with respect to their investments (other than securities of Irish issuers) may be subject to taxes, including withholding taxes, in the countries in which the issuers of investments are located. It is anticipated that the Company may not be able to benefit from reduced rates of withholding tax in double taxation agreements between Ireland and such countries. If this position changes in the future and the application of a lower rate results in a repayment to the Company the NAV will not be re-stated and the benefit will be allocated to the existing shareholders rateably at the time of the repayment. Any reclaims due to the sub-funds are accounted for on a receipt basis. No stamp duty is payable in Ireland on the issue, transfer, repurchase or redemption of shares in the Company. Where any subscription or redemption of shares is satisfied by the in specie transfer of securities, property or other types of assets, Irish stamp duty may arise on the transfer of such assets. No Irish stamp duty will be payable by the Company on the conveyance or transfer of stock or marketable securities provided that the stock or marketable securities in question have not been issued by a company registered in Ireland and provided that the conveyance or transfer does not relate to any immovable property situated in Ireland or any right over or interest in such property or to any stocks or marketable securities of a company (other than a company which is an investment undertaking within the meaning of the Taxes Act) which is registered in Ireland. Further details on tax applicable to the Company can be found in the prospectus. 16. Net asset values Net asset value Butterfield Global Growth Fund Accumulation Class Butterfield Sterling Balanced Fund Accumulation Class

Currency

31 January 2014

31 January 2013

GBP

£3,471,956

£3,339,859

GBP

£29,152,255

£22,272,920

33

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 16. Net asset values (continued) Net asset value Butterfield Sterling Income Fund Income Class

Currency

31 January 2014

31 January 2013

GBP

£9,588,091

£10,558,006

Butterfield UK Growth Fund Income Class

GBP

£10,516,890

£10,044,831

Butterfield USD Balanced Fund Accumulation Class

USD

$7,366,821

$4,241,159

31 January 2014

31 January 2013

Net asset value per share

Currency

Butterfield Global Growth Fund Accumulation Class

GBP

£1.1758

£1.0805

Butterfield Sterling Balanced Fund Accumulation Class

GBP

£1.1060

£1.0479

Butterfield Sterling Income Fund Income Class

GBP

£0.9851

£0.9990

Butterfield UK Growth Fund Income Class

GBP

£1.0735

£1.0489

Butterfield USD Balanced Fund Accumulation Class

USD

$1.1232

$1.0443

17. Distributions The Directors intend to declare dividends in respect of income classes of shares. Income class shares are shares that distribute net income from time to time, subject to Directors’ discretion, on a distribution date. The amount of any distribution on different share classes of income class shares in a sub-fund may vary to reflect any differing charges and expenses suffered by such share classes. Any such distribution shall be made from net income on a distribution date. Net income includes all interest, dividends and other amounts deemed by the Company to be in the nature of income less the expenses of the sub-fund applicable to that dividend period. The distribution allocated to a shareholder will reflect equalisation account adjustments as described below and will be adjusted for the aggregate of any shares subscribed for and redeemed, including any income equalisation amounts paid upon subscription and redemption. The Company, with the consent of the Custodian, shall operate such provisions for the equalisation of income as it thinks fit so as to ensure that shareholders participate in income on an equitable basis. Accordingly, the subscription price for shares subscribed for, and the redemption price for any shares redeemed, during that year shall contain an amount called equalisation which represents the proportion of the net income of the sub-fund that has accrued up to the date of subscription/redemption, as appropriate. The amount of equalisation is averaged across all the shareholders of such shares and shall be refunded to such shareholders as part of their distribution. The share classes for all sub-funds were accepted into the UK Reporting Fund Regime with effect from 26 October 2012. If sufficient net income after expenses is available in the sub-fund, the Directors intend to make a single distribution to income class shareholders of substantially the whole of the net income of the sub-fund. The following tables shows the distributions charged during the reporting period 31 January 2014: Butterfield Sterling Income Fund

Class Income Class Income Class

Currency GBP GBP

Distribution per share £0.0025 £0.0059

Final Distribution paid £26,420 £61,342

Income received on subscriptions (£2,153) (£3,521)

Income deducted on redemptions £4,029 £804

Net Distribution charge £28,296 £58,625

Ex-date 01 February 2013 01 August 2013

Distribution per share £0.0090 £0.0200

Final Distribution paid £86,191 £202,356

Income received on subscriptions (£1,396) (£8,677)

Income deducted on redemptions £1,865 £5,956

Net Distribution charge £86,660 £199,635

Ex-date 01 February 2013 01 August 2013

Butterfield UK Growth Fund

Class Income Class Income Class

Currency GBP GBP

There were no distributions made during the reporting period 31 January 2013. 18. Soft commission arrangements During the reporting period 31 January 2014, the Investment Manager engaged in soft commission arrangements with two brokers in exchange for equity research; Oppenheimer and Nomura. Other than dealing commission, no amounts were paid to these brokers. This arrangement was in place at the reporting date.

34

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 19. Capital management The redeemable shares issued by the Company provide a shareholder with the right to require redemption at a value proportionate to the shares in the sub-fund’s net assets on each dealing day and are classified as liabilities. The sub-fund’s objectives in managing the redeemable shares are to ensure a stable base to maximise returns to all investors and to manage liquidity risk arising from redemptions. 20. Segregated liability The Company was incorporated as an umbrella fund with segregated liability between sub-funds in accordance with the provisions of the Investment Funds, Companies and Miscellaneous Provisions Act, 2005 and as such, as a matter of Irish law the assets of the Company will not be exposed to the liabilities of the Company’s other sub-funds. Each sub-fund of the Company will be responsible for paying its fees and expenses regardless of the level of its profitability. Notwithstanding the foregoing, there can be no assurance that, should an action be brought against the Company in the courts of another jurisdiction, the segregated nature of the sub-funds would necessarily be upheld. 21. Related party disclosures In accordance with FRS 8 ‘Related Party Disclosures’ the related parties to the Company are outlined below. As per note 6, not all fees are paid directly by the Company so not all fees will be reflected in the profit and loss account. Investment Manager The Investment Manager was appointed by the Manager to provide investment management services to the Company. The Investment Manager is considered a related party due to Peter Cleavely and Richard Saunders holding positions of significant influence at the Investment Manager, as well as being Directors of the Company. Peter Cleavely is Head of Risk and Compliance and Richard Saunders is Head of European Asset Management at the Investment Manager. Each sub-fund will pay the Investment Manager fees at the rates set out in note 5. Details of fees charged are outlined below: 31 January 2014 GBP 673,418

31 January 2013 GBP 145,585

The following table details cash balances held with Butterfield Private Bank at the reporting date: 31 January 2014 GBP Butterfield Sterling Balanced Fund 690,000 Butterfield Sterling Income Fund 400,000

31 January 2013 GBP 500,000

Investment management fees

Distributor The Investment Manager was appointed by the Manager to promote and market the sale of shares and to use all reasonable endeavours to procure subscribers for shares. The Distributor does not receive a fee in its capacity as a distributor to the Company. Directors The Directors are also considered to be related parties. The Company pays the Directors annual remuneration for acting as Directors of the Company. Fees charged during the reporting period are as follows: 31 January 2014 31 January 2013 Director EUR EUR Peter Cleavely Waived Waived Richard Saunders Waived Waived Bronwyn Wright 15,000 11,906 John Hamrock 15,000 11,906 Related party shareholder transactions None of the Directors or other related parties held shares in any of the sub-funds of the Company as at the reporting date (31 January 2013: nil). 22. Significant events during the year There have been no significant events during the year that affect these financial statements. 23. Changes to the prospectus An updated prospectus dated 11 July 2013 was issued during the reporting period. There were no material changes in the prospectus.

35

Notes to the financial statements (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 24. Events after the reporting date The following table shows the distributions declared following the reporting date: Butterfield Sterling Income Fund

Class Income Class

Currency GBP

Distribution per share £0.0062

Final Distribution paid £60,345

Income received on subscriptions (£2,897)

Income deducted on redemptions £5,468

Net Distribution charge £62,916

Ex-date 03 February 2014

Distribution per share £0.0175

Final Distribution paid £171,444

Income received on subscriptions (£3,834)

Income deducted on redemptions £6,955

Net Distribution charge £174,565

Ex-date 03 February 2014

Butterfield UK Growth Fund

Class Income Class

Currency GBP

25. Approval of the financial statements The financial statements were authorised for issue by the Board of Directors on 29 May 2014.

36

Schedule of investments

Butterfield Asset Management Funds plc

As at 31 January 2014 Nominal Holdings

Fair value in GBP

% NAV

USD USD USD GBP USD USD GBP GBP

7,611 54,800 28,400 10,300 14,500 9,600 2,250 1,063

322,014 597,079 307,599 198,790 147,343 207,428 68,158 166,360 2,014,771

9.27% 17.20% 8.86% 5.73% 4.24% 5.97% 1.96% 4.79% 58.02%

Luxembourg MFS Meridian Funds - U.K. Equity Fund* Schroder International Selection Fund - Global Energy*

GBP GBP

620 7,800

75,088 146,562 221,650

2.16% 4.22% 6.38%

United Kingdom Aberdeen UK ICVC - Aberdeen Asia Pacific Equity Fund* AXA Framlington UK Select Opportunities Fund* Cazenove Investment Fund Company - European Fund* Henderson Global Funds - Global Technology Fund* M&G Global Dividend Fund* Morgan Stanley Funds UK - Global Brands Fund* Schroder Global Emerging Markets Fund*

GBP GBP GBP GBP GBP GBP GBP

71,635 62,000 33,000 19,058 109,043 3,580 232,000

132,368 77,686 202,831 157,001 174,916 152,047 116,696 1,013,545

3.81% 2.24% 5.84% 4.52% 5.04% 4.38% 3.36% 29.19%

Total CIS

3,249,966

93.59%

Total financial assets at fair value through profit or loss

3,249,966

93.59%

221,990

6.41%

3,471,956

100.00%

Butterfield Global Growth Fund Financial assets at fair value through profit or loss CIS (*UCITS) Ireland Findlay Park American Fund* HSBC S&P 500 UCITS ETF* iShares S&P 500 UCITS ETF Inc* Polar Capital Funds PLC - Healthcare Opportunities Fund* Polar Capital Funds PLC - Japan Fund* SPDR S&P US Dividend Aristocrats UCITS ETF* Vanguard FTSE 100 UCTIS ETF* Veritas Funds PLC - Global Equity Income Fund*

Currency

Cash at bank and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets UCITS CIS Other assets

% of total assets 91.25% 8.75% 100.00%

37

Schedule of investments (continued)

Butterfield Asset Management Funds plc

As at 31 January 2014

Butterfield Sterling Balanced Fund Financial assets at fair value through profit or loss CIS (*UCITS) Ireland Findlay Park American Fund* J O Hambro Capital Management Umbrella Fund PLC - UK Growth Fund* Polar Capital Funds PLC - Healthcare Opportunities Fund* Polar Capital Funds PLC - Japan Fund* Vanguard FTSE 100 UCTIS ETF* Veritas Funds PLC - Global Equity Income Fund*

Nominal Holdings

Fair value in GBP

% NAV

USD

35,133

1,486,405

5.10%

GBP GBP GBP GBP GBP

480,820 65,000 36,000 43,290 13,695

1,409,764 1,254,500 601,920 1,311,362 2,142,782 8,206,733

4.84% 4.30% 2.06% 4.50% 7.35% 28.15%

Currency

Luxembourg MFS Meridian Funds - U.K. Equity Fund* Schroder International Selection Fund - Emerging Markets Debt Absolute Return* Schroder International Selection Fund - Global Energy*

GBP

14,411

1,745,344

5.99%

GBP GBP

51,021 44,182

1,222,979 830,180 3,798,503

4.20% 2.85% 13.04%

United Kingdom AXA Framlington UK Select Opportunities Fund* Henderson Global Funds - Global Technology Fund* M&G Global Dividend Fund* M&G Investment Funds 3 - Corporate Bond Fund* Marlborough Special Situations Fund* Morgan Stanley Funds UK - Global Brands Fund* Neptune Investment Funds - Income Fund* Royal London US Index Tracker Fund* Schroder Global Emerging Markets Fund*

GBP GBP GBP GBP GBP GBP GBP GBP GBP

1,120,306 117,516 1,169,871 2,551,756 149,110 30,196 1,611,714 548,607 1,330,000

1,403,743 968,100 2,245,217 971,964 1,463,813 1,282,553 1,724,534 922,208 668,990 11,651,122

4.82% 3.32% 7.70% 3.33% 5.02% 4.40% 5.92% 3.16% 2.29% 39.96%

23,656,358

81.15%

Total CIS Debt securities Corporate bond Germany KFW 5.5% 12/7/2015

GBP

431,000

468,007 468,007

1.61% 1.61%

Ireland GE Capital UK Funding 4.125% 9/28/2017

GBP

420,000

451,650 451,650

1.55% 1.55%

Netherlands Bank Nederlandse Gemeenten 1.875% 12/7/2018

GBP

455,000

450,692 450,692

1.55% 1.55%

Supranational European Investment Bank 4.375% 7/8/2015

GBP

693,000

728,931 728,931

2.50% 2.50%

United Kingdom Network Rail Infrastructure Finance PLC 4.875% 11/27/2015

GBP

693,000

744,006 744,006

2.55% 2.55%

Total corporate bond

2,843,286

9.76%

Total debt securities

2,843,286

9.76%

1,132,088 1,132,088

3.88% 3.88%

27,631,732

94.79%

1,520,523

5.21%

29,152,255

100.00%

Other transferable securities Jersey ETFS Physical Gold/Jersey

USD

Total financial assets at fair value through profit or loss Cash at bank and other net assets Net assets attributable to holders of redeemable participating shares

38

15,380

Schedule of investments (continued)

Butterfield Asset Management Funds plc

As at 31 January 2014

Butterfield Sterling Balanced Fund (continued) Analysis of total assets Transferable securities listed on an official stock exchange or dealt on another regulated market UCITS CIS Other assets

39

% of total assets 13.61% 80.96% 5.43% 100.00%

Schedule of investments (continued)

Butterfield Asset Management Funds plc

As at 31 January 2014

Butterfield Sterling Income Fund Financial assets at fair value through profit or loss CIS (*UCITS) Ireland Legg Mason Global Funds PLC - Western Asset Global Blue Chip Bond Fund* United Kingdom M&G Investment Funds 3 - Corporate Bond Fund* Threadneedle Short Dated Corporate Bond Fund*

Currency

Nominal Holdings

GBP

GBP GBP

Fair value in GBP

% NAV

10,555

1,269,554 1,269,554

13.24% 13.24%

3,434,455 757,600

1,308,184 799,420 2,107,604

13.64% 8.34% 21.98%

3,377,158

35.22%

Total CIS Debt securities Corporate bond Australia Westpac Banking Corp 1.375% 12/23/2015

GBP

200,000

200,960 200,960

2.10% 2.10%

France Orange SA 5% 5/12/2016

GBP

200,000

214,468 214,468

2.24% 2.24%

Germany KFW 1.75% 1/22/2016

GBP

200,000

203,492 203,492

2.12% 2.12%

Ireland GE Capital UK Funding 4.125% 9/28/2017

GBP

200,000

215,071 215,071

2.24% 2.24%

Luxembourg Nestle Finance International Ltd 2.25% 11/30/2023

GBP

100,000

92,942 92,942

0.97% 0.97%

GBP GBP

200,000 350,000

198,106 368,585

2.07% 3.84%

GBP GBP GBP

200,000 500,000 350,000

209,658 504,415 349,728 1,630,492

2.19% 5.26% 3.65% 17.01%

Supranational European Investment Bank 3.375% 9/8/2014

GBP

505,000

513,454 513,454

5.36% 5.36%

United Kingdom Barclays Bank PLC 5.75% 8/17/2021

GBP

100,000

116,122 116,122

1.21% 1.21%

United States Bank of America Corp 6.125% 9/15/2021 Citigroup Inc 5.5% 11/18/2015 JPMorgan Chase & Co 4.25% 1/25/2017 The Goldman Sachs Group Inc 6.125% 2/14/2017

GBP GBP GBP GBP

100,000 200,000 200,000 200,000

118,058 214,591 214,337 223,618 770,604

1.23% 2.24% 2.24% 2.33% 8.04%

3,957,605

41.29%

Netherlands Bank Nederlandse Gemeenten 1.875% 12/7/2018 BMW Finance NV 3.375% 12/14/2018 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands 3.25% 11/1/2017 Nederlandse Waterschapsbank NV 1.07094% 1/25/2016 Volkswagen Financial Services NV 1.75% 8/21/2017

Total corporate bond Government bond Canada Export Development Canada 0.875% 12/7/2016

GBP

200,000

199,144 199,144

2.08% 2.08%

Finland Finland Government International Bond 0.70344% 2/23/2017

GBP

300,000

301,361 301,361

3.14% 3.14%

40

Schedule of investments (continued)

Butterfield Asset Management Funds plc

As at 31 January 2014

Butterfield Sterling Income Fund (continued) Financial assets at fair value through profit or loss (continued) Debt securities (continued) Government bond (continued) United Kingdom United Kingdom Gilt Inflation Linked 1.25% 11/22/2017 United Kingdom Gilt Inflation Linked 1.875% 11/22/2022

Currency

Nominal Holdings

GBP GBP

350,000 350,000

Fair value in GBP

% NAV

504,768 517,995 1,022,763

5.26% 5.40% 10.66%

Total government bond

1,523,268

15.88%

Total debt securities

5,480,873

57.17%

Total financial assets at fair value through profit or loss

8,858,031

92.39%

730,060

7.61%

9,588,091

100.00%

Cash at bank and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange or dealt on another regulated market UCITS CIS Other assets

41

% of total assets 57.05% 35.15% 7.80% 100.00%

Schedule of investments (continued)

Butterfield Asset Management Funds plc

As at 31 January 2014 Nominal Holdings

Fair value in GBP

% NAV

GBP GBP

14,000 9,250

161,700 281,478 443,178

1.54% 2.68% 4.22%

Netherlands Royal Dutch Shell PLC

GBP

9,000

189,315 189,315

1.80% 1.80%

United Kingdom Alent PLC AMEC PLC AstraZeneca PLC BAE Systems PLC Barclays PLC BG Group PLC BHP Billiton PLC BP PLC British American Tobacco PLC BT Group PLC Centrica PLC Compass Group PLC Croda International PLC Diageo PLC Elementis PLC GlaxoSmithKline PLC Greene King PLC HSBC Holdings PLC Imperial Tobacco Group PLC London Stock Exchange Group PLC Old Mutual PLC Prudential PLC Reckitt Benckiser Group PLC Reed Elsevier PLC Rexam PLC Rio Tinto PLC Rolls-Royce Holdings PLC Royal Dutch Shell PLC Smith & Nephew PLC Smiths Group PLC Standard Chartered PLC Standard Life PLC Tesco PLC The Sage Group PLC Tullow Oil PLC Unilever PLC United Utilities Group PLC Vodafone Group PLC

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

35,000 17,500 10,750 61,000 68,750 24,000 11,500 103,700 8,870 56,500 29,500 27,600 6,000 14,900 56,000 21,350 29,350 103,000 12,950 12,000 90,000 15,900 6,710 27,500 30,500 6,700 23,000 17,900 29,850 19,000 10,800 49,000 80,400 51,730 19,400 12,000 16,500 201,000

109,795 180,250 414,789 261,751 187,344 245,280 206,483 495,685 258,649 216,565 91,804 251,298 144,720 268,275 143,304 333,914 251,676 645,809 287,879 220,800 155,250 195,252 306,177 243,925 150,365 217,315 273,010 398,275 261,486 273,220 133,920 179,144 257,561 211,214 153,357 280,680 118,140 455,365 9,479,726

1.04% 1.71% 3.94% 2.49% 1.78% 2.33% 1.96% 4.71% 2.46% 2.06% 0.87% 2.39% 1.38% 2.55% 1.36% 3.18% 2.39% 6.14% 2.74% 2.10% 1.48% 1.86% 2.91% 2.32% 1.43% 2.07% 2.60% 3.79% 2.49% 2.60% 1.27% 1.70% 2.45% 2.01% 1.46% 2.67% 1.12% 4.33% 90.14%

10,112,219

96.16%

241,815 241,815

2.30% 2.30%

241,815

2.30%

10,354,034

98.46%

162,856

1.54%

10,516,890

100.00%

Butterfield UK Growth Fund Financial assets at fair value through profit or loss Equities Jersey Petrofac Ltd Shire PLC

Currency

Total equities CIS (Non-UCITS**) United Kingdom Land Securities Group PLC**

GBP

Total CIS Total financial assets at fair value through profit or loss Cash at bank and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange or dealt on another regulated market Non-UCITS CIS Other assets

42

23,500

% of total assets 95.94% 2.29% 1.77% 100.00%

Schedule of investments (continued)

Butterfield Asset Management Funds plc

As at 31 January 2014 Nominal Holdings

Fair value in USD

% NAV

USD USD USD

10,747 44,300 32,356

747,259 793,247 575,936

10.14% 10.77% 7.82%

USD GBP USD USD GBP

22,195 11,700 16,800 9,500 1,691

343,138 371,105 280,560 337,345 434,901 3,883,491

4.66% 5.04% 3.81% 4.58% 5.90% 52.72%

Luxembourg Schroder International Selection Fund - Emerging Markets Debt Absolute Return* Schroder International Selection Fund - Global Energy*

USD GBP

16,926 7,100

318,556 219,250 537,806

4.32% 2.98% 7.30%

United Kingdom AXA Framlington American Growth Fund* Henderson Global Funds - Global Technology Fund* Legg Mason Funds ICVC - US Smaller Companies Fund* M&G Global Dividend Fund* Morgan Stanley Funds UK - Global Brands Fund* Schroder Global Emerging Markets Fund*

GBP GBP GBP GBP GBP GBP

90,142 19,018 40,123 177,506 5,148 240,000

215,547 257,481 168,806 559,870 359,351 198,396 1,759,451

2.93% 3.50% 2.29% 7.60% 4.88% 2.69% 23.89%

6,180,748

83.91%

Butterfield USD Balanced Fund Financial assets at fair value through profit or loss CIS (*UCITS) Ireland Findlay Park American Fund* HSBC S&P 500 UCITS ETF* iShares S&P 500 UCITS ETF Inc* PIMCO Funds Global Investors Series PLC - Global Investment Grade Credit Fund* Polar Capital Funds PLC - Healthcare Opportunities Fund* Polar Capital Funds PLC - Japan Fund* SPDR S&P US Dividend Aristocrats UCITS ETF* Veritas Funds PLC - Global Equity Income Fund*

Currency

Total CIS Debt securities Corporate bond Germany KFW 4.125% 10/15/2014 KFW 1.25% 10/26/2015 Landwirtschaftliche Rentenbank 0.875% 9/12/2017

USD USD USD

13,000 323,000 150,000

13,352 326,584 147,778 487,714

0.18% 4.43% 2.01% 6.62%

Netherlands Bank Nederlandse Gemeenten 1.375% 3/19/2018

USD

150,000

148,778 148,778

2.02% 2.02%

Supranational European Bank for Reconstruction & Development 5% 5/19/2014 European Investment Bank 3.75% 4/15/2015

USD USD

10,000 153,000

10,139 159,371 169,510

0.14% 2.16% 2.30%

Total corporate bond

806,002

10.94%

Total debt securities

806,002

10.94%

307,869 307,869

4.18% 4.18%

7,294,619

99.03%

72,202

0.97%

7,366,821

100.00%

Other transferable securities Jersey ETFS Physical Gold/Jersey

USD

Total financial assets at fair value through profit or loss Cash at bank and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange or dealt on another regulated market UCITS CIS Other assets

43

2,545

% of total assets 15.08% 83.66% 1.26% 100.00%

Statement of significant portfolio movements (unaudited)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 Butterfield Global Growth Fund Cost GBP 209,744 204,901 164,978 147,393 140,476 78,926 78,752 70,618 38,000 35,914 35,740 33,453

Purchases Findlay Park American Fund HSBC S&P 500 UCITS ETF iShares S&P 500 UCITS ETF Inc Polar Capital Funds PLC - Healthcare Opportunities Fund Schroder Global Emerging Markets Fund AXA Framlington UK Select Opportunities Fund MFS Meridian Funds - U.K. Equity Fund Vanguard FTSE 100 UCTIS ETF Veritas Funds PLC - Global Equity Income Fund Aberdeen UK ICVC - Aberdeen Asia Pacific Equity Fund Cazenove Investment Fund Company - European Fund SPDR S&P US Dividend Aristocrats UCITS ETF

Proceeds GBP 182,414 170,248 168,845 159,816 145,839 145,030 84,663 80,324 65,508 49,645 36,729 20,923 20,706

Sales Invesco Perpetual UK Investment Series - Income Fund iShares S&P 500 UCITS ETF Inc Old Mutual Global Investors Series PLC - Healthcare Fund M&G Global Dividend Fund HSBC S&P 500 UCITS ETF Morgan Stanley Funds UK - Global Brands Fund Polar Capital Funds PLC - Japan Fund Findlay Park American Fund Cazenove Investment Fund Company - European Fund Absolute Insight Equity Market Neutral Fund Aberdeen UK ICVC - Aberdeen Asia Pacific Equity Fund Veritas Funds PLC - Global Equity Income Fund Henderson Global Funds - Global Technology Fund

UCITS Notices issued by the Central Bank of Ireland require the top 20 largest purchases and sales to be disclosed, however due to trading volumes, the above details all the purchases and sales during the year.

44

Statement of significant portfolio movements (unaudited) (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 Butterfield Sterling Balanced Fund Purchases MFS Meridian Funds - U.K. Equity Fund Veritas Funds PLC - Global Equity Income Fund Vanguard FTSE 100 UCTIS ETF Polar Capital Funds PLC - Healthcare Opportunities Fund Schroder International Selection Fund - Emerging Markets Debt Absolute Return Schroder Global Emerging Markets Fund Schroder International Selection Fund - Emerging Markets Debt Absolute Return Neptune Investment Funds - Income Fund ETFS Physical Gold/Jersey Morgan Stanley Funds UK - Global Brands Fund GE Capital UK Funding 4.125% 9/28/2017 Bank Nederlandse Gemeenten 1.875% 12/7/2018 AXA Framlington UK Select Opportunities Fund Findlay Park American Fund Marlborough Special Situations Fund M&G Global Dividend Fund J O Hambro Capital Management Umbrella Fund PLC - UK Growth Fund Schroder International Selection Fund - Global Energy Invesco Perpetual UK Investment Series - Income Fund Henderson Global Funds - Global Technology Fund

Cost GBP 1,736,382 1,491,628 1,360,506 930,150 865,557 805,315 663,023 529,110 510,398 501,043 455,658 453,271 442,000 406,041 318,886 318,304 310,247 221,258 149,039 136,609

Sales Invesco Perpetual UK Investment Series - Income Fund Schroder UK Alpha Plus Fund Veritas Funds PLC - Global Equity Income Fund Old Mutual Global Investors Series PLC - Healthcare Fund Schroder International Selection Fund - Emerging Markets Debt Absolute Return Absolute Insight Equity Market Neutral Fund Royal London US Index Tracker Fund Findlay Park American Fund KFW 5.5% 12/7/2015 Network Rail Infrastructure Finance PLC 4.875% 11/27/2015 European Investment Bank 4.375% 7/8/2015

Proceeds GBP 1,845,971 1,510,396 1,057,727 907,953 663,023 386,349 269,280 266,336 369 225 215

UCITS Notices issued by the Central Bank of Ireland require the top 20 largest purchases and sales to be disclosed, however due to trading volumes, the above details all the sales during the year.

45

Statement of significant portfolio movements (unaudited) (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 Butterfield Sterling Income Fund Purchases Fixed Rate Deposit 1.25% 04/28/2014 BMW Finance NV 3.375% 12/14/2018 Volkswagen Financial Services NV 1.75% 8/21/2017 Finland Government International Bond 0.70344% 2/23/2017 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands 3.25% 11/1/2017 KFW 1.75% 1/22/2016 Bank Nederlandse Gemeenten 1.875% 12/7/2018 Export Development Canada 0.875% 12/7/2016 Bank of America Corp 6.125% 9/15/2021 Barclays Bank PLC 5.75% 8/17/2021 Nestle Finance International Ltd 2.25% 11/30/2023 International Bank for Reconstruction & Development 1.25% 12/10/2013 KFW 5.375% 1/29/2014

Sales Bank Nederlandse Gemeenten 2.625% 12/10/2013 International Bank for Reconstruction & Development 1.25% 12/10/2013 Kommunalbanken AS 2.25% 12/30/2013 European Investment Bank 2.875% 3/7/2013 KFW 5.375% 1/29/2014 European Investment Bank 3.375% 9/8/2014

Cost GBP 400,000 367,850 350,350 302,550 212,000 203,700 203,600 199,060 117,180 115,100 91,650 375 253 Proceeds GBP 1,021,651 960,160 606,081 505,066 76,000 68

UCITS Notices issued by the Central Bank of Ireland require the top 20 largest purchases and sales to be disclosed, however due to trading volumes, the above details all the purchases and sales during the year.

46

Statement of significant portfolio movements (unaudited) (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 Butterfield UK Growth Fund Cost GBP 513,253 226,440 200,982 192,296 187,965 175,471 140,543 131,750 114,087 99,443 90,190 85,343 73,298 65,376 43,933 34,798 33,019 24,825 24,802 20,963

Purchases HSBC Holdings PLC Shire PLC Royal Dutch Shell PLC Standard Chartered PLC Standard Life PLC Barclays PLC Elementis PLC Alent PLC Compass Group PLC Vodafone Group PLC Reed Elsevier PLC Greene King PLC Tullow Oil PLC BP PLC Imperial Tobacco Group PLC Petrofac Ltd Diageo PLC Reckitt Benckiser Group PLC AstraZeneca PLC Tesco PLC

Proceeds GBP 302,245 256,080 253,090 141,605 138,205 129,553 125,483 122,221 99,539 93,307 80,236 73,991 63,105 62,340 58,855 55,063 49,762 41,737 41,690 41,453

Sales Tullow Oil PLC Smith & Nephew PLC BG Group PLC BT Group PLC African Barrick Gold PLC GlaxoSmithKline PLC Glencore Xstrata PLC AstraZeneca PLC London Stock Exchange Group PLC Prudential PLC Croda International PLC Rio Tinto PLC Old Mutual PLC Royal Dutch Shell PLC Reckitt Benckiser Group PLC BP PLC Rexam PLC Shire PLC Diageo PLC Unilever PLC

47

Statement of significant portfolio movements (unaudited) (continued)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 Butterfield USD Balanced Fund Purchases HSBC S&P 500 UCITS ETF SPDR S&P US Dividend Aristocrats UCITS ETF Findlay Park American Fund Polar Capital Funds PLC - Healthcare Opportunities Fund Schroder International Selection Fund - Emerging Markets Debt Absolute Return Schroder Global Emerging Markets Fund Veritas Funds PLC - Global Equity Income Fund Morgan Stanley Funds UK - Global Brands Fund ETFS Physical Gold/Jersey M&G Global Dividend Fund AXA Framlington American Growth Fund Landwirtschaftliche Rentenbank 0.875% 9/12/2017 Bank Nederlandse Gemeenten 1.375% 3/19/2018 PIMCO Funds Global Investors Series PLC - Global Investment Grade Credit Fund Henderson Global Funds - Global Technology Fund Schroder International Selection Fund - Global Energy Old Mutual Global Investors Series PLC - Healthcare Fund Polar Capital Funds PLC - Japan Fund KFW 4.125% 10/15/2014 European Investment Bank 3.75% 4/15/2015

Sales Old Mutual Global Investors Series PLC - Healthcare Fund Allianz International Investment Funds - Allianz US Equity Fund AXA Framlington American Growth Fund Veritas Funds PLC - Global Equity Income Fund Absolute Insight Equity Market Neutral Fund KFW 4.125% 10/15/2014 iShares S&P 500 UCITS ETF Inc European Bank for Reconstruction & Development 5% 5/19/2014 International Bank for Reconstruction & Development 3.625% 5/21/2013 KFW 1.25% 10/26/2015

Cost USD 575,381 308,478 286,195 253,935 243,516 219,666 201,446 184,838 181,980 169,619 157,687 148,425 147,900 130,891 93,121 89,595 67,626 48,330 428 423 Proceeds USD 233,954 196,265 157,687 114,813 79,200 74,326 74,033 63,495 54,000 146

UCITS Notices issued by the Central Bank of Ireland require the top 20 largest purchases and sales to be disclosed, however due to trading volumes, the above details all the sales during the year.

48

Appendix 1: Underlying Collective investment schemes fees (unaudited)

Butterfield Asset Management Funds plc

For the year ended 31 January 2014 A UCITS which invests more than 20% of its assets in other CIS must disclose the management fees charged to the underlying CIS. The table below shows the management fee and the total expense ratio (TER) of each CIS held by the Company. Management Fee Rate TER Collective Investment Schemes % NAV Butterfield Global Growth Fund Findlay Park American Fund HSBC S&P 500 UCITS ETF iShares S&P 500 UCITS ETF Inc Polar Capital Funds PLC - Healthcare Opportunities Fund Polar Capital Funds PLC - Japan Fund SPDR S&P US Dividend Aristocrats UCITS ETF Vanguard FTSE 100 UCTIS ETF Veritas Funds PLC - Global Equity Income Fund MFS Meridian Funds - U.K. Equity Fund Schroder International Selection Fund - Global Energy Aberdeen UK ICVC - Aberdeen Asia Pacific Equity Fund AXA Framlington UK Select Opportunities Fund Cazenove Investment Fund Company - European Fund Henderson Global Funds - Global Technology Fund M&G Global Dividend Fund Morgan Stanley Funds UK - Global Brands Fund Schroder Global Emerging Markets Fund

Butterfield Sterling Balanced Fund Findlay Park American Fund J O Hambro Capital Management Umbrella Fund PLC - UK Growth Fund Polar Capital Funds PLC - Healthcare Opportunities Fund Polar Capital Funds PLC - Japan Fund Vanguard FTSE 100 UCTIS ETF Veritas Funds PLC - Global Equity Income Fund MFS Meridian Funds - U.K. Equity Fund Schroder International Selection Fund - Emerging Markets Debt Absolute Return Schroder International Selection Fund - Global Energy AXA Framlington UK Select Opportunities Fund Henderson Global Funds - Global Technology Fund M&G Global Dividend Fund M&G Investment Funds 3 - Corporate Bond Fund Marlborough Special Situations Fund Morgan Stanley Funds UK - Global Brands Fund Neptune Investment Funds - Income Fund Royal London US Index Tracker Fund Schroder Global Emerging Markets Fund

Butterfield Sterling Income Fund Legg Mason Global Funds PLC - Western Asset Global Blue Chip Bond Fund M&G Investment Funds 3 - Corporate Bond Fund Threadneedle Short Dated Corporate Bond Fund

Butterfield USD Balanced Fund Findlay Park American Fund HSBC S&P 500 UCITS ETF iShares S&P 500 UCITS ETF Inc PIMCO Funds Global Investors Series PLC - Global Investment Grade Credit Fund Polar Capital Funds PLC - Healthcare Opportunities Fund Polar Capital Funds PLC - Japan Fund SPDR S&P US Dividend Aristocrats UCITS ETF Veritas Funds PLC - Global Equity Income Fund Schroder International Selection Fund - Emerging Markets Debt Absolute Return Schroder International Selection Fund - Global Energy AXA Framlington American Growth Fund Henderson Global Funds - Global Technology Fund Legg Mason Funds ICVC - US Smaller Companies Fund M&G Global Dividend Fund Morgan Stanley Funds UK - Global Brands Fund Schroder Global Emerging Markets Fund

49

9.27% 17.20% 8.86% 5.73% 4.24% 5.97% 1.96% 4.79% 2.16% 4.22% 3.81% 2.24% 5.84% 4.52% 5.04% 4.38% 3.36% 93.59%

1.00% 0.09% 0.40% 1.00% 1.00% 0.35% 0.10% 0.75% 0.85% 1.00% 1.00% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%

1.09% 0.09% 0.40% 1.24% 1.22% 0.35% 0.10% 0.90% 1.00% 1.29% 1.89% 0.80% 0.85% 1.03% 1.01% 1.00% 0.97%

5.10% 4.84% 4.30% 2.06% 4.50% 7.35% 5.99% 4.20% 2.85% 4.82% 3.32% 7.70% 3.33% 5.02% 4.40% 5.92% 3.16% 2.29% 81.15%

1.00% 0.75% 1.00% 1.00% 0.10% 0.75% 0.85% 0.90% 1.00% 0.75% 0.75% 0.75% 0.50% 1.50% 0.75% 0.75% 0.20% 0.75%

1.09% 0.84% 1.24% 1.22% 0.10% 0.90% 1.00% 1.22% 1.29% 0.80% 1.03% 1.01% 0.66% 1.51% 1.00% 0.80% 0.23% 0.97%

13.24% 13.64% 8.34% 35.22%

0.35% 0.50% 0.40%

0.51% 0.66% 0.50%

10.14% 10.77% 7.82% 4.66% 5.04% 3.81% 4.58% 5.90% 4.32% 2.98% 2.93% 3.50% 2.29% 7.60% 4.88% 2.69% 83.91%

1.00% 0.09% 0.40% 0.49% 1.00% 1.00% 0.35% 0.75% 0.90% 1.00% 0.75% 0.75% 1.00% 0.75% 0.75% 0.75% 1.00%

1.09% 0.09% 0.40% 0.49% 1.24% 1.22% 0.35% 0.90% 1.22% 1.29% 0.79% 1.03% 1.25% 1.01% 1.00% 0.97% 1.09%

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