HEAD OFFICE MARGETTS FUND MANAGEMENT LTD DEALING

1 SOVEREIGN COURT PO BOX 17067

GRAHAM STREET www.margetts.com BIRMINGHAM

BIRMINGHAM VAT No. (GB) 795 0415 16 B2 2HL

B1 3JR

Registered in England No. 4158249

TELEPHONE: 0121 236 2380 Authorised and Regulated by TELEPHONE: 0345 607 6808

FACSIMILE: 0121 236 2330 the Financial Conduct Authority FACSIMILE: 0121 236 8990

Interim Report and

Financial Statements

for MGTS AFH DA Global

Emerging Markets Equity Fund

For the period ended 31 August 2018 (Unaudited)

ACD Margetts Fund Management Limited

1 Sovereign Court Graham Street

Birmingham B1 3JR

Tel: 0121 236 2380 Fax: 0121 236 2330

(Authorised and regulated by the Financial Conduct Authority)

Directors of the ACD T J Ricketts A J M Quy

M D Jealous A S Weston

T H Ricketts (non-exec) G M W Oakley (non-exec)

J M Vessey (non-exec)

Depositary The Bank of New York Mellon (International) Limited

One Canada Square London E14 5AL

(Authorised and regulated by the Financial Conduct Authority)

Administrator and Registrar Margetts Fund Management Ltd

PO Box 17067 Birmingham

B2 2HL

Tel: 0345 607 6808 Fax: 0121 236 8990

(Authorised and regulated by the Financial Conduct Authority)

Auditors Shipleys LLP

Chartered Accountants & Statutory Auditors 10 Orange Street

Haymarket London

WC2H 7DQ

Investment Advisers AFH Independent Financial Services Limited

AFH House Buntsford Drive

Stoke Heath Bromsgrove

Worcestershire B60 4JE

(Authorised and regulated by the Financial Conduct Authority)

Contents Investment Adviser’s Report 1 Certification of Accounts by Directors of the ACD 3 Significant Purchases and Sales 4 Portfolio Statement 5 Net Asset Value per Share and Comparative Table 7 Financial Statements

Statement of Total Return 9 Statement of Change in Net Assets Attributable to Shareholders 9 Balance Sheet 10 Notes to the Financial Statements 11

General Information 18

1

Investment Adviser’s Report For the period commencing from the launch of the sub fund 08 January 2018 and ending 31 August 2018

Investment Objective and Policy To provide long term growth principally through capital growth as well as income from a portfolio of investments. The sub-fund will primarily invest in quoted Global Emerging Markets Equities. Global Emerging Markets are those which are defined as such by either of MSCI, FTSE or equivalent future index provider. The sub-fund may also invest in collective investment schemes (restricted to 10%), cash, money market instruments, and other transferable securities (including unlisted securities) and, including collective investments schemes of which the Manager (or one of its associates) is the appointed manager. Investment Review MGTS AFH DA Global Emerging R -15.05% MGTS AFH DA Global Emerging -15.60% Benchmark: IA Global Emerging Market Sector -8.56%

Source: Morningstar Direct. Performance growth in the period is bid to bid with income reinvested.

The MSCI Emerging Markets Index fell 4.5% during the six months to the end of August 2018 in sterling terms, as the persistent strength of the US dollar, the ongoing impact of the trade war and country-specific issues had a large negative impact on sentiment towards emerging market asset classes. Argentina and Turkey suffered notable currency falls, on concerns about rising US interest rates and a strengthening US dollar. Argentina (to which the fund has no exposure) raised interest rates to 40% while Turkey implemented a rate rise that the market viewed as long overdue, although concerns persisted about the country’s ability to manage the crisis. The fund underperformed in a tumultuous environment that tilted market sentiment towards the safe (by emerging market standards) havens of large caps, to which the fund is underweight, and away from both mid and small caps and frontier markets where the fund is overweight. The largest single stock detractor in relative terms was Indonesian property company PT Bumi Serpong Damai, which posted weak second quarter results as residential housing sales remained subdued, leading to a 17% drop in quarter-on-quarter revenue. Other significant detractors from performance during the period were Turkish holdings DP Eurasia and Ulker Biskuvi. In our view both are fundamentally sound businesses and have limited exposure to lira risk due to significant foreign revenues and prudent hedges. Indian oil marketing company HPCL was another detractor, after it was hit by the rising price of oil and investor concerns grew that they may be prevented by the government from passing along the impact of that rise and a weakening rupee to customers. On the positive side, a top contributing position in the fund was Vesta, as the Mexican real estate company benefited from the rally in the peso. The main driver of its returns, however, was a very strong set of quarterly results, with leasing activity better than expected and 92% occupancy of its property portfolio. One of the fund’s largest positions, SK Hynix, was also a contributor, driven by an announcement from key US competitor Micron that they would buy back up to $10 billion in shares, which the market took as evidence that – with a small number of significant players – the industry is now behaving like an oligopoly. Finally, US-listed Chinese biotechnology company China Biologic outperformed after it received an offer from Chinese investment company CITIC Capital in a deal valuing the company at $3.65 billion.

2

Investment Adviser’s Report (continued) During the period we initiated positions in Despegar and Vinda. Despegar is an online travel booking company specialising in Latin America, a region where we believe there is significant potential from rising mobile and internet bookings (much of the region still operates a physical travel agent model). The firm trades at a discount to peers, despite what we see as stronger growth potential. Chinese hygiene company Vinda stands to benefit, in our view, from a structural increase in the usage of tissue, feminine and incontinence care products in China, as well as industry consolidation. Outlook The last few months have been painful for the fund and its investors. Macroeconomic factors have had a significant impact on emerging market returns this year; however, these factors are often difficult if not impossible to predict. We believe our expertise lies in finding opportunities where an element of change is underappreciated by the market, but during periods where the market is preoccupied with macro, such fundamental stock characteristics will often continue to go overlooked. Though it is painful to experience a period of underperformance, we have confidence in the effectiveness of our process over the medium to long-term. Some of the ways in which we believe the positioning of the fund is appropriate for the current environment include: avoidance of highly-valued large cap growth stocks that in our view are crowded trades; exposure to major positive structural changes in emerging markets, such as financial inclusion and rising health care spending, which are also somewhat insulated from trade tariffs; and a higher weighting than the benchmark to smaller companies which, although more volatile, should we believe present superior stock-picking opportunities to deliver long-term alpha. Despite the market volatility, most of our emerging market holdings have delivered strong earnings growth and valuations now look compelling to us both in a historical context and relative to developed markets. Risks The fund invests in emerging markets which carry increased volatility and liquidity risks. The fund invests in smaller companies, which can be less liquid than investments in larger companies and can have fewer resources than larger companies to cope with unexpected adverse events. As such price fluctuations may have a greater impact on the fund. This fund invests mainly in shares and it is likely to experience fluctuations in price which are larger than funds that invest only in bonds and/or cash. The Key Investor Information Document, Supplementary Information Document and Scheme Particulars are available from Jupiter on request.

Jupiter Asset Management Limited Delegated adviser to the fund 15 October 2018

3

Certification of Accounts by Directors of the ACD This report is signed in accordance with the requirements of the Collective Investment Schemes Sourcebook (COLL) as issued and amended by the Financial Conduct Authority.

T J Ricketts M D Jealous

Margetts Fund Management Ltd 29 October 2018

Authorised Status

The MGTS AFH DA Global emerging Markets Equity Fund is a sub fund of the MGTS AFH DA Fund an open-ended investment company with variable capital incorporated in England and Wales under regulation number IC1086 and authorised by the Financial Conduct Authority with effect from 02 August 2017. The fund is classed as a UCITS scheme, which complies with the requirements of the FCA FUND and COLL handbooks. Shareholders are not liable for the debts of the fund.

Investor Notice

With effect from 01 February 2018, the trustee and depositary, as appropriate, of the funds, BNY Mellon Trust & Depositary (UK) Limited ("T&D") retired and was replaced by The Bank of New York Mellon (International) Limited ("BNYMIL"). This change has been agreed by the Financial Conduct Authority and the Manager/Authorised Corporate Director. As a result, the activities previously carried out by T&D will be performed by BNYMIL. The change did not impact on the effective organisation of the trustee and depositary as carried out by BNYMIL, the business address remained the same and all commercial terms remained unchanged including the fee structure and costs. The sub fund launch date is 08 January 2018 and the figures quoted are from this date up until 31 August 2018.

4

Significant purchases and salesFor the period ended 31 August 2018

Total purchases for the period £72,368,053

Purchases Cost (£)

SAMSUNG ELECTRONICS-PREF 2,788,343

SK HYNIX INC 2,694,275

BANK OF GEORGIA GROUP PLC 2,453,159

HINDUSTAN PETROLEUM CORP 2,312,303

BUMI SERPONG DAMAI PT 2,091,634

GUARANTY TRUST BANK 2,086,641

LG CHEM LTD-PREFERENCE 1,944,436

CHINA UNICOM HONG KONG LTD 1,725,449

KCB GROUP LTD 1,626,118

SBERBANK OF RUSSIA PREFERENCE SHARE 1,575,560

BIZLINK HOLDING INC 1,555,799

HOLLYSYS AUTOMATION TECHNOLO 1,539,806

GINKO INTERNATIONAL CO LTD 1,520,270

NETEASE INC-ADR 1,467,602

CORP INMOBILIARIA VESTA SAB 1,375,761

MMC NORILSK NICKEL PJSC-ADR 1,341,281

BAIDU INC - SPON ADR 1,311,330

DP EURASIA NV 1,288,593

NASPERS LTD CLASS N 1,273,406

MEDIATEK INC 1,263,590

UNITED BANK LTD 1,262,928

INTERGLOBE AVIATION LTD 1,260,943

BITAUTO HOLDINGS LTD-ADR 1,253,131

GT CAPITAL HOLDINGS INC 1,252,624

CHROMA ATE INC 1,248,048

FIBRA UNO ADMINISTRACION SA 1,243,684

ALMACENES EXITO SA 1,229,239

ASCENDIS HEALTH LTD 1,224,149

ULKER BISKUVI SANAYI 1,205,539

RELIANCE CAPITAL LTD 1,177,059

TAIWAN SEMICONDUCTOR MANUFAC 1,143,924

Total sales for the period £8,309,583

Sales Proceeds (£)

CHINA BIOLOGIC PROD HOLD 1,249,141

BGEO GROUP PLC 1,089,255

BANK OF GEORGIA GROUP PLC 968,100

TORRENT PHARMACEUTICALS LTD 860,888

AKBANK T.A.S. 656,259

KROTON EDUCACIONAL SA 569,096

DEUTSCH-CW27 UNITED BANK L 517,569

EROS INTERNATIONAL PLC 435,474

GEORGIA CAPITAL PLC 320,974

SK HYNIX INC 278,297

FELDA GLOBAL VENTURES 239,986

SAMSUNG ELECTRONICS-PREF 175,364

5

Portfolio statement As at 31August 2018

Total Net Assets

Holding Portfolio of Investments Value (£) 31.08.18

%

Healthcare

575,500 3SBio Inc 845,244 1.53

1,691,868 Ascendis Health Ltd 1,054,272 1.91

1,229,000 Consun Pharmaceutical Group Ltd 827,213 1.50

553,170 Fortis Healthcare Ltd 900,692 1.63

263,000 Ginko International Co Ltd 1,357,131 2.46

Healthcare 4,984,552 9.03 -

Industrials

3,142,730 Air Arabia PJSC 670,545 1.21

917,312 Grupo Rotoplas SAB de CV 820,789 1.48

93,705 InterGlobe Aviation Ltd 963,677 1.74

Industrials 2,455,011 4.43 -

Consumer Defensive

1,112,903 Grupo Lala SAB de CV 917,312 1.66

322,733 Ulker Biskuvi Sanayi AS 593,892 1.07

423,000 Vinda International Holdings Ltd 553,536 1.00

Total Consumer Defensive 2,064,740 3.73 -

Technology

7,071 Baidu Inc 1,242,335 2.25

59,652 Bitauto Holdings Ltd 1,096,782 1.98

261,000 Bizlink Holding Inc 1,020,810 1.85

289,000 Chroma Ate Inc 1,210,538 2.19

446,000 Hon Hai Precision Industry Co Ltd 901,447 1.63

175,249 Jianpu Technology Inc 682,381 1.23

277,000 MediaTek Inc 1,006,503 1.82

6,202 Naspers Ltd 1,053,494 1.91

6,793 NetEase Inc 1,041,769 1.88

96,268 Samsung Electronics Co Ltd 2,610,380 4.72

45,973 SK Hynix Inc 2,589,571 4.69

173,000 Taiwan Semiconductor Manufacturing Co Ltd 1,121,894 2.03

Total Technology 15,577,904 28.18 -

Real Estate

23,192,500 Bumi Serpong Damai Tbk 1,445,199 2.61

1,399,457 Corporacion Inmobiliaria Vesta SAB de 1,535,357 2.78

1,793,271 Emaar Malls PJSC 757,661 1.37

1,130,830 Fibra Uno Administracion SA de CV 1,146,198 2.08

417,869 LSR Group PJSC 661,329 1.20

Total Real Estate 5,545,744 10.04 -

Communication Services

1,756,000 China Unicom (Hong Kong) Ltd 1,570,693 2.84

Total Communication Services 1,570,693 2.84 -

6

Portfolio statement (continued)

Total Net Assets

Holding Portfolio of Investments Value (£) 31.08.18

%

Consumer Cyclical

285,117 Almacenes Exito SA 1,148,496 2.08

374,913 Cox and Kings Ltd 916,388 1.66

56,753 Despegar.com Corp 742,323 1.34

652,446 DP Eurasia NV 587,201 1.06

75,133 GT Capital Holdings Inc 958,953 1.73

3,955,000 Haichang Ocean Park Holdings Ltd 625,439 1.13

11,193 Hyundai Motor Co 668,028 1.21

164,000 Merida Industry Co Ltd 1,032,493 1.87

411,658 T4F Entretenimento SA 590,603 1.07

Total Consumer Cyclical 7,269,924 13.15 -

Energy

559,696 Hindustan Petroleum Corp Ltd 1,567,235 2.84

627,184 SEPLAT Petroleum Development Company PLC 859,242 1.55

Total Energy 2,426,477 4.39 -

Industrials

84,953 Hollysys Automation Technologies Ltd 1,429,504 2.59

25,825 Mills Estruturas e Servicos de Engenharia SA 301,293 0.55

Total Industrials 1,730,797 3.14 -

Basic Materials

12,513 LG Chem Ltd 1,762,084 3.19

91,821 MMC Norilsk Nickel PJDC 1,179,640 2.13

Total Basic Materials 2,941,724 5.32 -

Financial Services

334,983 AvivaSA Emeklilik ve Hayat AS 508,133 0.92

50,465 Bank of Georgia Group PLC 856,088 1.55

22,192,443 Guaranty Trust Bank PLC 1,717,001 3.11

4,879,746 KCB Group Ltd 1,656,543 3.00

218,757 Reliance Capital Ltd 1,124,806 2.03

637,970 Sberbank of Russia PJSC 1,154,228 2.09

1,113,000 United Bank Ltd 1,107,992 2.00

Total Financial Services 8,124,791 14.70 -

Portfolio of Investments 54,692,357 98.95 -

Net Current Assets 581,026 1.05 -

Net Assets 55,273,383 100.00 -

7

Net Asset Value per Share and Comparative Tables Accumulation share class

Change in net assets per share 31/08/2018

Opening net asset value per share 100.0000

Return before operating charges * -99.3300

Operating charges -0.6700

Return after operating charges -100.0000

Distribution on income shares 0.0000

Closing NAV per share 0.0000

Retained distribution on acc shares 0.0000

* After direct transaction costs of 0.1738

Return after charges 0.00%

Other Information

Closing net asset value (£) -

Closing number of shares -

OCF 1.29%

Direct transaction costs 0.18%

Prices

Highest share price (pence) 100.00

Lowest share price (pence) 84.00

Performance

R Accumulation share class

Change in net assets per share 31/08/2018

Opening net asset value per share 100.0000

Return before operating charges * -15.1571

Operating charges -0.6600

Return after operating charges -15.8171

Distribution on income shares 0.0000

Closing NAV per share 84.1829

Retained distribution on acc shares 0.0000

* After direct transaction costs of 0.2563

Return after charges -15.82%

Other Information

Closing net asset value (£) 55,273,383

Closing number of shares 65,658,664

OCF 1.04%

Direct transaction costs 0.28%

Prices

Highest share price (pence) 100.00

Lowest share price (pence) 84.00

Performance

8

Net Asset Value per Share and Comparative Tables (continued) Risk Warning

An investment in an open-ended investment company (OEIC) should be regarded as a medium to long term investment. Investors should be aware that the price of shares and the income from them can fall as well as rise and investors may not receive back the full amount invested. Past performance is not a guide to future performance. Investments denominated in currencies other than the base currency are subject to fluctuations in exchange rates, which can be favourable or unfavourable. Fund Performance The performance of the fund is shown in the Investment Adviser’s Report.

Synthetic Risk and Reward Indicator Typically Lower Returns Typically Higher Returns

1 2 3 4 5 6 7

Lower Risk Higher Risk

The risk and reward score is based on past performance and calculated in accordance with European legislation. It may not be a reliable indication of the future risk profile.

9

Financial statements

Notes 31.08.18

Income £ £

Net capital gains/(losses) 4 (9,205,114)

Revenue 6 895,520

Expenses 7 (323,217)

Finance costs: Interest 9 (1,548)

Net revenue before taxation 570,755

Net revenue after taxation 570,755

(8,634,359)

Finance costs: Distribution 9 -

(8,634,359)

£ £

Opening net assets attributable to

shareholders200

65,044,022

(1,393,385)

Dilution levy 256,905

63,907,542

(8,634,359)

55,273,383

Statement of total returnFor the period ended 31 August 2018

For the period ended 31 August 2018

Total return before distributions

Amounts receivable on issue of shares

Amounts payable on cancellation of shares

Change in net assets attributable to

shareholders from investment activities

Change in net assets attributable to

shareholders from investment activities

Closing net assets attributable to shareholders

Statement of change in net assets attributable to shareholders

10

As at 31 August 2018

Notes 31.08.18

Assets £ £

Investment assets 54,692,357

Debtors 10 1,898,632

Bank balances 559,540

Total other assets 2,458,172

Total assets 57,150,529

Liabilities

Creditors 11 1,877,146

Total other liabilities 1,877,146

Net assets attributable to shareholders 55,273,383

Balance sheet

11

Notes to the financial statements As at 31 August 2018

1 Accounting policies

a) Basis of accounting

The financial statements have been prepared under the historical cost basis in accordance with Financial Reporting Standard (FRS) 102, as modified by the revaluation of investments, and in accordance with the revised Statement of Recommended Practice (SORP) for Authorised Funds issued by the Investment Association in May 2014.

b) Basis of valuation of investments

The investments are valued at quoted bid prices for dual priced funds and at quoted prices for single priced funds, on the last business day of the accounting period.

c) Foreign exchange rates

Transactions in foreign currencies are recorded in sterling at the rate ruling at the date of the transactions. Assets and liabilities expressed in foreign currencies at the end of the accounting period are translated into sterling at the closing middle exchange rates ruling on that date.

d) Revenue

All income allocations and distributions declared by the managers of the underlying funds up to the accounting date are included in Income, net of attributable tax credits. The net allocations which are retained in Income are included in the fund’s own income allocation. Bank and other interest receivable is accrued up to the accounting date. Equalisation on distributions received is deducted from the cost of the investment and not included in the fund’s income available for distribution.

e) Expenses

The ACD’s periodic charge is deducted from Income. All of the other expenses are charged against Income except for costs associated with the purchase and sale of investments which are charged against Capital.

f) Taxation

(i) The fund is treated as a corporate shareholder with respect to its underlying holdings and its income is subject to streaming into franked and unfranked.

(ii) Corporation tax is provided at 20% on income, other than the franked portion of distributions from collective investment schemes, after deduction of expenses.

(iii) The charge for deferred tax is based on the profit for the year and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred tax is provided using the liability method on all timing differences, calculated at the rate at which it is anticipated the timing differences will reverse. Deferred tax assets are recognised only when, on the basis of available evidence, it is more likely than not that there will be taxable profits in the future against which the deferred tax asset can be offset.

2 Distribution policy

Income arising from investments accumulates during each accounting period. Surplus income is allocated to shareholders in accordance with the COLL regulations. In order to conduct a controlled dividend flow to shareholders, interim distributions will be made at the ACD’s discretion, up to a maximum of the distributable income available for the period. All remaining income is distributed in accordance with the COLL regulations.

12

3 Risk management policies

In pursuing the investment objective, a number of financial instruments are held which may comprise securities and other investments, cash balances and debtors and creditors, that arise directly from operations. Derivatives, such as futures or forward foreign exchange contracts, may be utilised for efficient portfolio management purposes. Political and economic events in the major economies of the world, such as the United States, Japan and the European Union, will influence stock and securities markets worldwide. The main risks from the fund’s holding of financial instruments with the ACD’s policy for managing these risks are set out below:

i. Credit Risk – The fund may find that collective investment schemes in which it invests fail to settle their debts or deliver the investments purchased on a timely basis.

ii. Interest Rate Risk – Debt securities may be held by the underlying investments of the fund.

The Interest Rate Risk of these securities is managed by the relevant manager.

iii. Foreign Currency Risk – Although the net assets of the fund are denominated in sterling, a proportion of the fund’s investments in collective investment schemes have currency exposure with the effect that the balance sheet and total return can be affected by currency movements.

iv. Liquidity Risk – The main liability of the fund is the cancellation of any shares that investors

want to sell. Securities may have to be sold to fund such cancellations should insufficient cash be held at the bank to meet this obligation. Smaller companies by their nature, tend to have relatively modest traded share capital, and the market in such shares can, at times, prove illiquid. Shifts in investor sentiment, or the announcement of new price-sensitive information, can provoke significant movement in share prices, and make dealing in any quantity difficult. The equity markets of emerging countries tend to be more volatile than the more developed markets of the world. Standards of disclosure and accounting regimes may not always fully comply with international criteria, and can make it difficult to establish accurate estimates of fundamental value. The dearth of accurate and meaningful information and insufficiencies in its distribution, can leave emerging markets prone to sudden and unpredictable changes in sentiment. The resultant investment flows can trigger significant volatility in these relatively small and illiquid markets. At the same time, this lack of liquidity, together with the low dealing volumes, can restrict the ACD’s ability to execute substantial deals.

v. Market Price Risk – Market Price Risk is the risk that the value of the fund’s financial instruments will fluctuate as a result of changes in market prices caused by factors other than interest rates or foreign currency movement. The Market Price Risk arises primarily from uncertainty about the future prices of financial instruments that the fund holds.

Market Price Risk represents the potential loss the fund may suffer through holding market positions in the face of price movements. This risk is generally regarded as consisting of two elements – Stock Specific Risk and Market Risk. The fund’s exposure to Stock Specific Risk is reduced for equities and bonds through the holding of a diversified portfolio in accordance with the investment and borrowing powers set out in the Instrument of Incorporation.

vi. Counterparty Risk – Transactions in securities entered into by the fund give rise to exposure to the risk that the counterparties may not be able to fulfil their responsibility by completing their side of the transaction.

vii. Fair Value of Financial Assets and Financial Liabilities – There is no material difference

between the value of the financial assets and liabilities, as shown in the balance sheet, and their fair value.

13

4 Net capital losses 31.08.18

£

Proceeds from sales on investments during the period 8,309,583

Original cost of investments sold during the period (8,381,189)

Net realised depreciation for the period (71,606)

Net unrealised depreciation for the period (8,968,697)

Unrealised gain/loss on derivatives 4,432

Realised gain/loss on derivatives (169,243)

Net losses on derivatives (164,811)

Net losses on non-derivative securities (9,040,303)Net capital losses on investments (9,205,114)

5 Purchases, sales and transaction costs

Purchases excluding transaction costs 72,327,994

Commissions: 0.04% 40,059

Stamp duty: 0.01% 5,484

Trustee transaction charges: 0.13% 69,842Purchases including transaction costs 72,443,379

Sales excluding transaction costs 8,314,935

Commissions: 0.06% (5,352)

Trustee transaction charges: 0.06% (4,643)Sales including transaction costs 8,304,940

Trustee transaction charges have been deducted in determining net capital

Transaction charges are displayed as percentage of purchase/sale

Total commision charges: 0.10% 45,411

Total stamp duty: 0.01 5,484

Total trustee transaction charges : 0.16% 74,485

Total charges displayed as percentage of average net asset value

Average portfolio dealing spread : 0.47%

6 Revenue

UK franked dividends -

UK unfranked dividends -

Bond interest -

Gross bond interest -

Overseas franked income 895,567

Overseas gross unfranked income (47)

Collective Investment Schemes

14

7 Expenses 31.08.18

£

ACD's periodic charge 205,268

Depositary's fee 14,896

Safe custody 73,684

88,580

Other expenses:

FCA fee 129

Audit fee 3,581

Registration fees 27

Sundry charges 2,214

Account Setup fee 16,837

Transfer agency fee 6,581Total expenses 323,217

8 Taxation

a) Analysis of the tax charge for the period:

UK Corporation tax -

Irrecoverable income tax -

Current tax charge (note 8b) - Total tax charge -

b) Factors affecting the tax charge for the period:

Net income before taxation 570,755

Corporation tax at 20% 114,152

Effects of:

UK dividends (179,113)

Utilisation of excess management expenses 64,961

Corporation tax charge -

Irrecoverable income tax - Current tax charge for the year (note 8a) -

c) Provision for deferred taxation

No provision for deferred taxation has been made in the current or prior accounting year.

d) Factors that may affect future tax changes

Payable to the Depositary associates of the Depositary and agents of either:

Payable to the ACD, associates of the ACD and agents of either:

The fund has unutilised management expenses of £321,710. The fund does not

expect to be able to utilise this in the forseeable future.

9 Finance costs 31.08.18

£

Distributions

Interim -

-

Finance costs: Distributions -

Finance costs: Interest 1,548Total finance costs 1,548

15

10 Debtors 31.08.18

£

Amounts receivable for issue of shares 452,380Amounts receivable for investment securities sold 555,108

Accrued income:UK franked dividends - Overseas franked dividends 864,814

864,814

Taxation recoverable 26,330Total debtors 1,898,632

11 Creditors

Amounts payable for cancellation of shares 7

Amounts payable for investment securities purchased 1,689,921

Accrued expenses:

Amounts payable to the ACD, associates and agents:

ACD's periodic charge 33,419

Amounts payable to the Depositary, associates and agents:

Depositary's fees 2,232

Transaction charges 55,975

Safe custody fee 60,262

118,469

Other expenses 35,330Total creditors 1,877,146 12 Contingent liabilities and commitments

There were no contingent liabilities or outstanding commitments at the balance sheet date.

13 Related party transactions

Margetts Fund Management Ltd as ACD, is a related party, and acts as principal in respect of all transactions of shares in the Company. The aggregate monies received through issues, and paid on cancellations are disclosed in the statement of change in net assets attributable to shareholders and note 9. Amounts paid to Margetts Fund Management Ltd in respect of management services are disclosed in note 7 and amounts due at the end of the year in note 11.

Acc R Acc

Opening number of shares - -

Shares issued 134,734 71,071,481

Shares converted - -

Shares redeemed (134,734) (5,412,817)Closing number of shares - 65,658,664

14 Shareholders' funds

15 Post balance sheet events There were no material post balance sheet events which have a bearing on the understanding of the financial statements.

16

16 Risk disclosures Debt securities may be held by the underlying investments of the fund. The Interest Rate Risk of these securities is managed by the relevant manager. The table below shows the Interest Rate Risk profile at the balance sheet date:

ii. Interest risk 31.08.18

£

Floating rate assets (pounds sterling): 559,540

Assets on which interest is not paid (pounds sterling): 48,902,717

Assets on which interest is not paid (dollars): 7,688,272

Liabilities on which interest is not paid (pounds sterling): (1,877,146)

Net Assets 55,273,383

ii. Currency risk 31.08.18

£

GBP 47,585,111

US Dollars 7,688,272Net Assets 55,273,383

The floating rate financial assets and liabilities comprise bank balances, which earn or pay interest at rates linked to the UK base rate

17 Securities Financing Transactions (SFT) and Total Return Swaps (TRS) As at the Balance Sheet date, the amount of securities and commodities on loan as a proportion of total lendable assets is 0.00%

18 Fair Value Techniques

Assets 31.08.2018

£

Quoted prices for identical instruments in active markets 54,692,357

Prices of recent transactions for identical instruments -

Valuation techniques using observable data -

Valuation techniques using non-observable data -

54,692,357

19 Periodic disclosure As required by FUND 3.2.5R the ACD is required to disclose certain information periodically in relation to the Fund which is shown below. At the end of the reporting period the percentage of the Fund’s assets subject to special arrangements arising from their illiquid nature was 0% of the NAV. There have been no new arrangements introduced for managing the liquidity of the Fund. The risk characteristics of the Fund are explained in the Prospectus.

17

Periodic disclosure (continued) In order to assess the sensitivity of the Fund’s portfolio to the risks to which the Fund is or could be exposed, Margetts Fund Management Ltd monitors relative value at risk, commitment, gross leverage and the results of stress tests. The ACD has set limits considered appropriate to the risk profile of the fund. Any breaches of these limits are investigated by the Margetts risk committee and appropriate action taken if necessary. During the reporting period there have been no changes to the maximum level of leverage that the Fund can employ or any right of reuse of collateral or any guarantee granted under leveraging arrangements. At the end of the reporting period the total amount of leverage, expressed as a ratio, calculated using the commitment approach was 1:0.99 and using the gross method was 1:0.99.

Leverage is limited to overdraft use and the gross exposure from EPM techniques. Although the ACD may use derivatives for EPM, no collateral arrangements are currently in place and no asset re-use arrangements are in place. The maximum leverage expressed as the ratio of the exposure to net asset value using the commitment method is 1.1:1.0 and using the gross method 3.3:1.0. Please note that the maximum leverage under the gross method is theoretical and would only occur if market risk and currency risk were hedged across the entire Fund whilst it was using the maximum borrowing facility of 10%. It is not anticipated that both market risk and currency risk would be simultaneously hedged and therefore the likely maximum leverage which would be used in normal circumstances using the commitment method is 1.1:1.0 and using the gross method 2.2:1.0.

20 Remuneration In accordance with the requirements of COLL 4.7.7(7) the total amount of remuneration paid by the ACD to its staff for the financial year ended 30 September 2017 is:

£

Fixed Remuneration 2,077,507

Variable Remuneration 1,223,483

Total Remuneration 3,300,990

Full Time Equivalent number of staff 45

Analysis of senior management

Senior management 1,964,095

Staff whose actions may have a material impact on the funds -

Other -

1,964,095

The remuneration for senior management has been calculated in accordance with the Remuneration Policy and is reviewed annually. The remuneration policy and, where required by the FCA, how benefits are calculated together with details of the remuneration committee can be found on the website: www.margetts.com. A paper copy of this is available free of charge upon request by writing to the compliance officer at 1 Sovereign Court, Graham Street, Birmingham B1 3JR. No material changes were made to the Policy or irregularities reported at the last review.

18

General Information Valuation Point The Valuation Point of the fund is at 12 noon each business day. Valuations may be made at other times with the Depositary’s approval. Buying and Selling of Shares The ACD will accept orders to buy or sell shares on normal business days between 9.00am and 5.00pm and transactions will be effected at prices determined by the following valuation. Instructions to buy or sell shares may be made either in writing to: Margetts Fund Management Ltd, PO Box 17067, Birmingham, B2 2HL or by telephone on 0345 607 6808. A contract note will be issued by close of business on the next business day after the dealing date to confirm the transaction. Prices The most recent mid prices of shares are published on the Margetts website at www.margetts.com. Other Information The Instrument of Incorporation, Prospectus, Key Investor Information Document, Supplementary Information Document and the latest annual and interim reports may be inspected at the offices of the ACD, with a copy available, free of charge, on written request. The register of shareholders can be inspected by shareholders during normal business hours at the offices of the Administrator. The Head Office of the Company is at 1 Sovereign Court, Graham Street, Birmingham B1 3JR and is also the address of the place in the United Kingdom for service on the Company of notices or other documents required or authorised to be served on it.

The base currency of the Company is pounds (£) sterling.

The maximum share capital of the Company is currently £10,000,000,000 and the minimum is £1,000. Shares in the Company have no par value and therefore the share capital of the Company at all times equals the Company’s current net asset value. The prospectus has been updated to state that The Bank of New York Mellon’s charges for transfer agency services are subject to annual inflationary increases capped at 3% per annum. Shareholders who have any complaints about the operation of the fund should contact the ACD or the Depositary in the first instance. In the event that a unitholder finds the response unsatisfactory, they may make their complaint direct to the Financial Ombudsman Service at Exchange Tower, London E14 9SR or email to: complaint.info@financial-ombudsman.org.uk or by telephone to 0800 023 4567.