River and Mercantile Funds ICVC Interim Long Report for the … · 30-09-2018 · sourcebook (the COLL) and also an umbrella company for the purposes of the OEIC Regulations. The

River and Mercantile Funds ICVCInterim Long Report for the Period Ended

30 September 2018 (unaudited)

Page 1

Contents

Page

The Authorised Corporate Director’s Report* 2

Company Information 3

Notes Applicable to the Financial Statements of all sub-funds of the River and Mercantile Funds ICVC 5

Investment Review* and Financial Statements for:UK Equity High Alpha Fund 6UK Equity Smaller Companies Fund 20UK Dynamic Equity Fund 31UK Recovery Fund (formerly UK Equity Long Term Recovery Fund) 41UK Equity Income Fund 58Global Recovery Fund (formerly World Recovery Fund) 69Dynamic Asset Allocation Fund 95Global High Alpha Fund 104

Other Information 126

Directory 127

*Collectively these comprise the Authorised Corporate Director’s Report.

Page 2

The Authorised Corporate Director’s Report

The Authorised Corporate Director presents its report and financial statements of the Company for the period ended 30 September 2018.

IncorporationThe Company is an investment company with variable capital incorporated under the OEIC Regulations.The Company is incorporated in England and Wales with registered number IC000489. The head office of theCompany is 30 Coleman Street, London, EC2R 5AL. This is also the address for the service on the Company of notices or other documents required or authorised to be served on it.

The Company shall issue shares in the following Funds:

• River and Mercantile UK Equity High Alpha Fund

• River and Mercantile UK Equity Smaller Companies Fund

• River and Mercantile UK Dynamic Equity Fund

• River and Mercantile UK Recovery Fund (formerly UK Equity Long Term Recovery Fund)

• River and Mercantile UK Equity Income Fund

• River and Mercantile Global Recovery Fund (formerly World Recovery Fund)

• River and Mercantile Dynamic Asset Allocation Fund

• River and Mercantile Global High Alpha Fund

Page 3

Company Information

Company River and Mercantile Funds ICVC

Registered Office 30 Coleman Street, London, EC2R 5AL

Administrator and Registrar The Bank of New York Mellon (International) Limited One Canada Square London, E14 5AL

Authorised Corporate Director ('ACD') River and Mercantile Asset Management LLP

Designated Members of James Edward Ellis BarhamRiver and Mercantile River and Mercantile Holdings LimitedAsset Management LLP

Depositary The Bank of New York Mellon (International) Limited One Canada Square London, E14 5AL

Page 4

Company Information continued

Principal ActivitiesThe Company is a UCITS scheme under the OEIC regulations as defined in the Collective Investment Schemes sourcebook (the COLL) and also an umbrella company for the purposes of the OEIC Regulations. The property attributable to each of the sub-funds is managed as if such sub-fund belonged to the “UCITS Scheme” category as specified in the COLL. Holders of shares in a sub-fund are entitled to receive (or, in the case of accumulation shares, to have re-invested) the net revenue derived from the sub-fund and to redeem their shares at a price linked to the value of the property of the sub-fund. Shareholders do not have any proprietary interest in the underlying assets of any sub-fund.

Each sub-fund is a segregated portfolio of assets and those assets can only be used to meet the liabilities of, or claims against, that Fund. Whilst the provisions of the OEIC Regulations provide for segregated liability between Funds, the concept of segregated liability is relatively new. Accordingly, where claims are brought by local creditors in foreign courts or under foreign law contracts, it is not yet known whether a foreign court would give effect to the segregated liability and cross-investment provisions contained in the OEIC Regulations. Therefore, it is not possible to be certain that the assets of a sub-fund will always be completely insulated from the liabilities of another sub-fund of the Company in every circumstance. The shareholders of the Company will not be liable for the debts of the Company.

The base currency for the Company is pounds sterling. The maximum size of the Company's capital is £100,000,000,000 and the minimum size is £1.

The Company was authorised by an order made by FCA with effect from 2 October 2006. The operation of the Company is governed by the Regulations, the Company's Instrument of Incorporation and its Prospectus.

Holdings in other Sub-Funds of the CompanyAs at 30 September 2018, no sub-funds held shares in any other sub-fund of the Company.

Securities Financing Transactions RegulationThe Securities Financing Transactions Regulation, as published by the European Securities and Markets Authority, aims to improve the transparency of the securities financing markets. Disclosures regarding exposure to Securities Financing Transactions (SFTs) will be required on all report & accounts published after 13 January 2017. During the period to 30 September 2018 and at the balance sheet date, the River and Mercantile Funds ICVC did not engage in SFTs.

Authorised Corporate Director’s StatementIn accordance with COLL 4.5.8BR, the Interim Report and the unaudited statements were approved by the ACD of the Company.

Mr James Barhamfor and on behalf of River and Mercantile Asset Management LLPAuthorised Corporate Director29 November 2018

Page 5

Notes Applicable to the Financial Statements of allsub-funds of the River and Mercantile Funds ICVC Notes applicable to the Financial Statements

Accounting policies

Basis of accountingThe Financial Statements of the Company comprise the Financial Statements of each sub-fund and have beenprepared on a going concern basis in accordance with Financial Reporting Standard (“FRS”) 102 and the Statementof Recommended Practice ‘Financial Statements of UK Authorised Funds’ issued by the IMA (now known as theInvestment Association) in May 2014 (the “SORP”).

All other accounting and distribution policies used to prepare the interim financial statements are as per the auditedfinancial statements for the year ended 31 March 2018.

Page 6

River and MercantileUK Equity High Alpha FundInvestment Objective and PolicyThe investment objective of the sub-fund is to achieve capital growth by investing in a focused portfolio of investmentswhich shall primarily consist of UK equities which offer the prospect of superior long term growth.

Investment Manager’s ReviewPortfolio reviewFor the six month period to 30 September 2018, the Z-Class Accumulation shares of the River and Mercantile UKEquity High Alpha Fund returned 7.6% compared to the benchmark FTSE All-Share Index return of 8.3%.

Market backgroundThe six month period to 30 September 2018 witnessed elevated volatility across the major asset classes with newsflow dominated by geopolitics, most notably the constantly evolving headlines relating to the trade war initiated bythe US with its key trading partners contrasting with a landmark US-North Korean nuclear disarmament agreement.Positions on US-China trade relations hardened with the imposition of tariffs on $250 billion of Chinese goods by theWhite House. China sought to support the economy via looser fiscal and monetary policy; the renminbi weakened byaround 10% since the start of the period. The major story of the summer saw concerns flaring in emerging markets(EM), especially in weaker economies such as Turkey and Argentina, over the impact of reduced US dollar liquidity.Many of the more dollar-denominated debt-exposed emerging economies have made significant progress since the‘Taper Tantrum’ of 2013 so it would be unfair to tar all EMs with the same brush and imply that contagion is inevitable;however, while sanguine about these risks today, we remain cognisant that market action does not always follow therational or fair path. In the UK, Prime Minister Theresa May came under renewed pressure from all sides after her‘Chequers’ deal for the UK’s exit from Europe was first seen to be reneging on original promises by Euroscepticmembers of her Conservative party and was then rejected by fellow EU leaders at a Salzburg summit. Elsewhere inEurope, relations with the new Italian coalition government reached a loggerhead with the announcement that theyintend to run a higher than anticipated budget deficit of 2.4% of GDP; Italian bond yields widened on the news. Globalgrowth has remained robust against this background; current forecasts continue to point to solid global real GDPgrowth of 3.8% in 2018 and 3.6% in 2019, while corporate earnings are growing at 16% year on year (11% in theUK). Lead indicators are still in expansionary territory and in the US in particular business confidence is back closeto exuberant peaks.

Performance and activityWe are not well positioned for the current type of market: narrow, capital seeking certainty at any price, pro expensivegrowth stocks and anti-value stocks. Over the six month period, performance was modestly behind the benchmark and was hindered by the drag of value versus growth. Detractors over the period included TP ICAP and Centamin,following disappointing company updates. Our overweight to financials also hindered performance (StandardChartered, Barclays), as did our emerging markets exposure (DP Eurasia). The greatest contributor to performancewas our underweight position to British American Tobacco. Our exposure to oil and gas stocks (Premier Oil, FaroePetroleum and Serica Energy) also added to performance, as did our stock picking (John Wood, LearningTechnologies).

Major purchases during the period focused on high scoring stocks and PVT anomalies and, in many cases, recyclingstrong performers into laggards as we would anticipate a reversal in fortunes when value returns. We added furtherto EM facing companies during the period as those stocks came under more selling pressure, impacted by very weaksentiment, the strong US dollar and trade war dislocation. Purchases included Prudential, Investec and DP Eurasia.With the energy complex recovering, we added to our exposure in later cycle oil services companies. This includednew holdings in Weir (2nd decile Recovery) and Petrofac (1st decile Recovery). We continue to be attracted to non-cyclical PVT anomalies, when they are available at an attractive price. This has included building up positions inEssentra (support services turnaround), BTG (specialist pharma company) and adding to Chemring, a classicRecovery thesis, where a new management team has evolved the business from a financially vulnerable, short-cyclebusiness exposed to the ups and downs of conflict budgets to one exposed to higher quality long term contracts,supported by a strong balance sheet. Sales focused on taking profits in a number of strong performers (Ocado,Plus500, Burberry), M&A (Shire, Sinclair Pharma, Vedanta Resources, ZPG, Laird) and selling some stocks wherethe thesis was not playing out (Merlin Entertainments and Spire Healthcare).

Page 7

River and MercantileUK Equity High Alpha FundInvestment Manager’s Review continuedOutlookWe are high conviction regarding both the absolute and relative valuation and profit potential of the stocks in thisportfolio. We keep putting money into very cheap PVT stocks, some of which are new ideas and some existing ideas.“Mr. Market” is focused on paying higher and higher prices for the already fully delivering expensive growth stocks;we are paying lower prices for everything else that has been left behind (for whatever reason) in the stampede of hotcapital into ‘guaranteed’ growth. There are so many opportunities to create medium term wealth. Our recent short-term returns have been modest ones, but we remain very excited about the medium term opportunities.

Page 8

River and MercantileUK Equity High Alpha FundPortfolio Statement as at 30 September 2018 Market % of Value Net Holding Investment £ Assets

UNITED KINGDOM (88.22%) 221,193,496 82.24

Oil & Gas Producers (10.58%) 30,631,824 11.39 9,130,200 Amerisur Resources 1,082,842 0.40 2,524,333 BP 14,875,894 5.53 567,900 Cairn Energy 1,317,528 0.49 343,968 Eland Oil & Gas 395,563 0.15 2,433,400 Enquest 1,004,994 0.37 1,140,100 Faroe Petroleum 1,894,846 0.70 511,300 Gulf Keystone Petroleum 1,475,100 0.55 2,702,497 JKX Oil & Gas 945,874 0.35 332,573 Nostrum Oil & Gas 799,838 0.30 2,323,740 Ophir Energy 879,536 0.33 1,174,783 Premier Oil 1,627,074 0.61 1,901,600 Serica Energy 1,616,360 0.60 932,200 SOCO International 802,624 0.30 728,493 Tullow Oil 1,913,751 0.71

Oil Equipment, Services & Distribution (1.21%) 4,396,628 1.63 162,300 Hunting 1,266,751 0.47 169,000 Petrofac 1,094,782 0.41 263,750 Wood (John) 2,035,095 0.75

Chemicals (0.61%) 1,684,529 0.63 545,227 Carclo 496,157 0.19 33,400 Johnson Matthey 1,188,372 0.44

Industrial Metals & Mining (0.03%) — —

Industrial Engineering (1.09%) 2,859,915 1.06 595,935 MPAC 828,350 0.31 1,680,025 Renold 656,890 0.24 293,200 Rotork 969,026 0.36 23,009 Weir 405,649 0.15

Mining (6.86%) 6,469,059 2.41 283,607 Anglo American 4,885,414 1.82 288,250 KAZ Minerals 1,583,645 0.59

Construction & Materials (0.58%) 2,507,538 0.93 88,020 Keller 894,283 0.33 152,399 Polypipe 542,845 0.20 306,269 Tyman 1,070,410 0.40

Aerospace & Defence (2.33%) 6,605,978 2.46 1,038,060 Chemring 2,231,829 0.83 686,980 Cobham 802,049 0.30 265,870 QinetiQ 760,654 0.28 192,138 Rolls-Royce 1,897,171 0.71 57,574 Ultra Electronics 914,275 0.34

Page 9

River and MercantileUK Equity High Alpha FundPortfolio Statement continued Market % of Value Net Holding Investment £ Assets

Electronic & Electrical Equipment (1.77%) 5,221,423 1.94 108,231 Dialight 497,863 0.18 361,400 Morgan Advanced Materials 1,200,571 0.45 114,416 Oxford Instruments 1,132,718 0.42 257,500 TT Electronics 669,500 0.25 1,451,302 Volex 1,204,581 0.45 314,750 Xaar 516,190 0.19

Support Services (3.16%) 12,603,565 4.69 129,560 Aggreko 1,128,468 0.42 389,900 Biffa 978,649 0.36 353,593 Blancco Technology 385,416 0.14 1,204,850 Capita 1,718,116 0.64 168,826 De La Rue 813,741 0.30 218,235 Equiniti 579,414 0.22 283,915 Essentra 1,149,856 0.43 764,090 Learning Technologies* 1,264,569 0.47 451,827 MITIE 662,830 0.25 469,757 RPS 1,033,465 0.39 1,299,106 Serco 1,269,227 0.47 76,000 Smart Metering Systems 468,160 0.17 1,822,237 Speedy Hire 1,151,654 0.43

Beverages (1.93%) 3,944,432 1.47 120,777 Diageo 3,283,927 1.22 335,282 Stock Spirits 660,505 0.25

Food Producers (0.63%) 2,885,885 1.07 29,490 Associated British Foods 675,026 0.25 437,582 Devro 901,419 0.33 191,775 Tate & Lyle 1,309,440 0.49

Household Goods & Home Construction (1.19%) 4,485,510 1.67 67,291 Bovis Homes 721,696 0.27 134,000 Galliford Try 1,354,740 0.50 420,370 McBride 596,085 0.22 631,010 McCarthy & Stone 846,184 0.32 13,780 Reckitt Benckiser 966,805 0.36

Personal Goods (0.81%) 2,046,970 0.76 59,868 Burberry 1,206,340 0.45 359,551 PZ Cussons 840,630 0.31

Tobacco (1.83%) 5,582,924 2.08 90,700 British American Tobacco 3,251,141 1.21 87,300 Imperial Brands 2,331,783 0.87

Health Care Equipment & Services (0.49%) 1,303,021 0.48 60,100 Consort Medical 705,574 0.26 42,690 Smith & Nephew 597,447 0.22

Page 10


Pharmaceuticals & Biotechnology (6.02%) 11,490,809 4.27 73,972 AstraZeneca 4,410,211 1.64 47,200 BTG 260,308 0.10 396,723 GlaxoSmithKline 6,096,839 2.26 393,180 Indivior 723,451 0.27

Food & Drug Retailers (0.59%) 1,528,477 0.56 82,200 Ocado 738,649 0.27 304,600 Morrison (Wm.) Supermarkets 789,828 0.29

General Retailers (2.29%) 4,363,737 1.62 354,200 Auto Trader 1,581,857 0.59 2,017,888 Game Digital 611,420 0.23 282,600 Kingfisher 729,108 0.27 2,992,889 Pendragon 811,073 0.30 527,872 Pets at Home 630,279 0.23

General Industrials (1.03%) 2,536,848 0.94 2,188,773 Coats 1,803,549 0.67 755,200 Gocompare.Com 733,299 0.27

Gas, Water & Multiutilities (0.84%) 1,576,492 0.59 1,018,406 Centrica 1,576,492 0.59

Media (2.36%) 5,266,222 1.96 160,562 Ascential 671,149 0.25 71,000 Daily Mail & General Trust 'A' 498,420 0.19 650,870 Ebiquity 279,874 0.10 331,637 Future 1,598,490 0.59 717,612 ITV 1,132,750 0.42 749,484 Reach 473,674 0.18 665071 XLMedia* 611,865 0.23

Travel & Leisure (2.09%) 5,967,745 2.22 399,618 888 Holdings 796,039 0.30 164,516 On the Beach 814,354 0.30 300,277 Playtech 1,463,550 0.54 1,351,152 Rangers International Football 270,230 0.10 413,358 Revolution Bars 513,391 0.19 941,199 Thomas Cook 544,954 0.20 16,800 Whitbread 792,288 0.30 306,600 William Hill 772,939 0.29

Fixed Line Telecommunications (0.34%) 1,359,685 0.51 603,500 BT 1,359,685 0.51

Mobile Telecommunications (2.30%) 4,932,584 1.83 204,310 Inmarsat 1,021,346 0.38 2,377,652 Vodafone 3,911,238 1.45

Electricity (0.80%) 1,223,355 0.45 106,750 SSE 1,223,355 0.45

Page 11


Banks (17.20%) 37,139,027 13.81 2,977,616 Barclays 5,114,949 1.90 52,500 Georgia Capital 585,060 0.22 2,133,792 HSBC 14,292,139 5.31 11,521,602 Lloyds Banking 6,828,853 2.54 242,904 OneSavings Bank 986,190 0.37 1,421,980 Royal Bank of Scotland 3,553,528 1.32 907,968 Standard Chartered 5,778,308 2.15

Non-life Insurance (0.00%) 919,723 0.34 348,380 Sabre Insurance 919,723 0.34

Life Insurance (3.40%) 9,082,742 3.38 216,693 Aviva 1,060,712 0.40 1,155,399 Just 1,021,373 0.38 599,100 Legal & General 1,570,840 0.58 308,600 Prudential 5,429,817 2.02

Real Estate Investment & Services (1.23%) 2,937,990 1.09 261,441 Grainger Trust 784,323 0.29 476,390 Purplebricks 1,091,886 0.40 33,700 Savills 263,028 0.10 351,100 U and I 798,753 0.30

Real Estate Investment Trusts (0.42%) 1,174,500 0.44 190,480 British Land 1,174,500 0.44

Financial Services (7.36%) 20,449,056 7.61 925,741 ADVFN 231,435 0.09 382,470 Ashmore 1,392,191 0.52 357,327 Brewin Dolphin 1,225,632 0.46 32,768 Brooks MacDonald 647,168 0.24 171,850 Charles Stanley 618,660 0.23 55,308 Close Brothers 874,973 0.32 730,966 CMC Markets 1,016,043 0.38 65,643 Gresham House Strategic 649,866 0.24 234,172 H&T 721,250 0.27 183,300 IG 1,160,289 0.43 146,200 IMI 1,603,814 0.60 456,500 Impax Asset Management 1,100,165 0.41 502,900 International Personal Finance 1,131,525 0.42 182,770 Investec* 985,861 0.37 149,385 John Laing 466,679 0.17 509,521 Man 897,776 0.33 1,921,679 Miton 1,364,392 0.51 137,200 Provident Financial 828,688 0.31 441,502 RM 900,664 0.33 429,468 Standard Life Aberdeen 1,313,743 0.49 493,354 TP ICAP 1,318,242 0.49

Equity Investment Instruments (1.16%) 2,028,246 0.75 644,600 Fidelity China Special Situations Investment Trust 1,385,890 0.51 134,384 Gresham House 642,356 0.24

Page 12


Software & Computer Services (2.84%) 11,534,461 4.29 138,193 Alfa Financial Software 188,772 0.07 629,200 AO World 880,880 0.33 386,300 Avast 1,094,774 0.41 225,550 Codemasters 421,779 0.16 1,925,849 Eckoh 722,193 0.27 3,626,743 Eu-Supply 453,343 0.17 131,029 iomart 568,011 0.21 2,552,298 Maistro* 107,197 0.04 587,393 Maistro warrants 31/12/2049* — — 43,000 Micro Focus International 614,040 0.23 396,000 NCC 792,000 0.29 843,623 RhythmOne 1,872,843 0.70 250,100 Sage 1,466,586 0.54 387,754 SDL 1,834,076 0.68 600,890 Tribal 517,967 0.19

Technology Hardware & Equipment (0.85%) 2,452,596 0.91 914,000 IQE* 749,937 0.28 1,266,859 Spirent Communications 1,702,659 0.63

CHANNEL ISLANDS (0.60%) 3,047,508 1.13

JERSEY (0.60%) 2,543,367 0.94

Mining (0.58%) 1,464,127 0.54 1,379,300 Centamin 1,464,127 0.54

Support Services (0.00%) 1,079,240 0.40 16,568 Ferguson 1,079,240 0.40

Technology (0.02%) — —

ISLE OF MAN (0.00%) 504,141 0.19

Electronic & Electrical Equipment (0.00%) 504,141 0.19 300,800 Strix* 504,141 0.19

NORTH AMERICA (1.26%) 3,287,587 1.22

BERMUDA (0.39%) 973,010 0.36

Industrial Transportation (0.39%) 973,010 0.36 94,467 Ocean Wilsons 973,010 0.36

UNITED STATES OF AMERICA (0.87%) 2,314,577 0.86

Industrial Engineering (0.57%) 1,221,594 0.45 321,472 Somero Enterprises 1,221,594 0.45

Automobiles & Parts (0.30%) 1,092,983 0.41 440,719 TI Fluid Systems 1,092,983 0.41

Page 13


SOUTH AMERICA (0.00%) 1,634,675 0.61

Chile (0.00%) 579,690 0.22

Mining (0.00%) 579,690 0.22 67,800 Antofagasta 579,690 0.22

Mexico (0.00%) 1,054,985 0.39

Mining (0.00%) 1,054,985 0.39 128,500 Fresnillo 1,054,985 0.39

CONTINENTAL EUROPE (7.60%) 19,942,568 7.41

IRELAND (1.26%) 2,843,819 1.06

Construction & Materials (0.15%) 836,496 0.31 33,300 CRH 836,496 0.31

Industrial Engineering (0.19%) 645,702 0.24 461,216 Mincon 645,702 0.24

Pharmaceuticals & Biotechnology (0.92%) 1,361,621 0.51 29,450 Shire 1,361,621 0.51

LUXEMBOURG (0.39%) 976,670 0.36

General Retailers (0.39%) 976,670 0.36 252,500 B&M European Value Retail 976,670 0.36

NETHERLANDS (4.04%) 12,196,267 4.53

Oil & Gas Producers (3.84%) 11,444,357 4.25 425,599 Royal Dutch Shell 'B' (UK Regd.) 11,444,357 4.25

Travel & Leisure (0.20%) 751,910 0.28 884,600 DP Eurasia 751,910 0.28

SWITZERLAND (1.91%) 3,925,812 1.46

Mining (1.50%) 3,925,812 1.46 1,183,900 Glencore 3,925,812 1.46

Support Services (0.41%) — —

MIDDLE EAST (0.46%) 483,467 0.18

ISRAEL (0.46%) 483,467 0.18

Financial Services (0.30%) — —

Technology Hardware & Equipment (0.16%) 483,467 0.18 1,421,961 BATM Advanced Communications 483,467 0.18

Page 14


AFRICA (0.00%) 3,215,714 1.20

South Africa (0.00%) 2,415,154 0.90

Financial Services (0.00%) 2,415,154 0.90 1,490,836 Old Mutual 2,415,154 0.90

Egypt (0.00%) 800,560 0.30

Oil & Gas Producers (0.00%) 800,560 0.30 78,200 ADES International 800,560 0.30

ASIA (0.40%) 405,835 0.15

INDIA (0.40%) 405,835 0.15

Mining (0.40%) — —

Electricity (0.00%) 405,835 0.15 3,828,629 OPG Power Ventures 405,835 0.15

PACIFIC BASIN (0.52%) 13,535,932 5.03

AUSTRALIA (0.52%) 13,535,932 5.03

Industrial Metals & Mining (0.52%) 1,382,730 0.51 645,532 South32 1,382,730 0.51

Mining (0.00%) 12,153,202 4.52 338,037 BHP Billiton 5,649,274 2.10 167,627 Rio Tinto 6,503,928 2.42

Portfolio of investments 266,746,782 99.17

Net other assets 2,233,649 0.83

Net assets 268,980,431 100.00

Unless otherwise stated, all investments are approved securities being either officially listed in a member state ortraded on or under the rules of an eligible securities market.

All investments are in ordinary shares unless otherwise stated.

The percentages in brackets show the equivalent percentage of net assets as at 31 March 2018.

* Security listed on AIM.

Page 15

River and MercantileUK Equity High Alpha FundStatement of Total Returnfor the period ended 30 September 2018

Statement of Change in Net Assets attributable to Shareholdersfor the period ended 30 September 2018

The opening net assets attributable to shareholders for the current period do not equal the closing net assetsattributable to shareholders for the comparative period as they are not consecutive periods.

1 April 2018to 30 September 2018

£ £


£ £

IncomeNet capital gainsRevenueExpensesInterest payable and similar charges

Net revenue before taxation for the periodTaxation

Net revenue after taxation for the period

Total return before distributionsDistributionsChange in net assets attributable toShareholders from investment activities

14,506,060 5,498,235 (290,830)

—

5,207,405(27,409)

5,179,996

19,686,056 (5,181,934)

14,504,122

12,148,226 5,304,932(298,639)

(45)

5,006,248(40,440)

4,965,808

17,114,034 (4,962,599)

12,151,435


£ £


£ £

Opening net assets attributable to ShareholdersAmounts received on creation of sharesAmounts paid on cancellation of shares

Dilution adjustmentChange in net assets attributable to Shareholders from investment activitiesRetained distributions on accumulation shares

Closing net assets attributable to Shareholders

255,404,332 3,871,302 (9,793,594)

(5,922,292) (31,074)

14,504,122 5,025,343

268,980,431

272,546,816 4,870,887 (4,658,014)

212,873 —

12,151,435 4,897,370

289,808,494

Page 16

River and MercantileUK Equity High Alpha FundBalance Sheet as at 30 September 2018

30 September 2018£ £

31 March 2018£ £

ASSETSFixed assetsInvestmentsCurrent assetsDebtorsCash and bank balancesTotal other assets

Total assets

LIABILITIESCreditors Distribution payableOther creditorsTotal other liabilities

Total liabilities

Net assets attributable to Shareholders

266,746,782

1,659,392 1,183,461

2,842,853

269,589,635

(104,972) (504,232)

(609,204)

(609,204)

268,980,431

253,012,342

4,599,445 486,441

5,085,886

258,098,228

(45,504) (2,648,392)

(2,693,896)

(2,693,896)

255,404,332

Page 17

River and MercantileUK Equity High Alpha FundFund Facts

Distribution informationA-Class Distribution sharesThe distribution payable on 30 November 2018 is 2.3300p (2017: 1.9432p) per share for distribution shares.

B-Class Accumulation sharesThe distribution payable on 30 November 2018 is 15.4442p (2017: 12.9645p) per share for accumulation shares.

Z-Class Accumulation sharesThe distribution payable on 30 November 2018 is 26.7378p (2017: 22.6393p) per share for accumulation shares.

Performance records

Net asset values

Net asset valueof sub-fund

£

Net asset valueper share

p

Sharesin issue

31 March 2016A-Class Distribution sharesB-Class Accumulation sharesZ-Class Accumulation shares31 March 2017A-Class Distribution sharesB-Class Accumulation sharesZ-Class Accumulation shares31 March 2018A-Class Distribution sharesB-Class Accumulation sharesZ-Class Accumulation shares30 September 2018A-Class Distribution sharesB-Class Accumulation sharesZ-Class Accumulation shares

3,391,68923,478,835234,366,654

5,921,19430,816,482235,809,140

7,255,24632,199,404215,949,682

8,485,536 29,243,555 231,251,340

138.70669.52920.39

175.63867.34

1,201.32

178.31902.22

1,258.96

188.34968.30

1,356.28

2,445,3403,506,83525,463,705

3,371,4793,552,98319,629,231

4,068,838 3,568,91817,152,965

4,505,340 3,020,077 17,050,441

Page 18

River and MercantileUK Equity High Alpha FundFund Facts continued

Operating Charges

The Operating Charges figure represents the annual operating expenses of the sub-fund expressed as a percentageof average net assets for the period. The Operating Charges figure has been calculated in accordance with the COLLsourcebook and is designed to be indicative of future costs to investors, as such there will be no comparative figure.The Operating Charges figure is inclusive of Annual Management Charges.

The Operating Charges figure is capped at a maximum of 0.15% above the annual management charge, with anycosts above this amount absorbed by the ACD.

Synthetic Risk Reward Indicator (SRRI)

Please note, the category stated above is the same for each class of share within the sub-fund.

The Synthetic Risk & Reward Indicator is based on how much the returns of the shares have varied over the last fiveyears, or since launch (whichever is the shorter period). The higher the rank the greater the potential reward but alsothe greater the risk of losing money.

The shaded area in the Indicator shows the sub-fund’s ranking on the Synthetic Risk & Reward Indicator. The Indicatoruses a standard calculation method that is used by all EU companies who offer such funds to allow you to comparefunds. Historical data is used to calculate the ranking and this may not be a reliable indication for the future rankingand might change.

The sub-fund may not achieve its investment objective and/or you could lose money on your investment in the sub-fund. The following risks are materially relevant to the sub-fund but may not be adequately captured by the Riskand Reward Indicator, and may cause additional loss:

• Liquidity risk: securities in the sub-fund may be sold below their valuation due to insufficient liquidity in the market.

Lower Risk Higher Risk

Typically Lower Rewards Typically Higher Rewards

1 2 3 4 5 6 7

..........................................................................

30 September 2018

A-Class Distribution sharesB-Class Accumulation sharesZ-Class Accumulation shares

1.59%0.84%0.09%

Page 19

River and MercantileUK Equity High Alpha FundSummary of Largest Portfolio ChangesThe table below shows the top ten purchases and sales for the period.

Purchases £

Prudential 2,236,982Playtech 1,484,890Petrofac 1,265,494Galliford Try 1,186,657British American Tobacco 1,184,714McCarthy & Stone 1,134,908Fresnillo 1,095,693Chemring 1,086,523Capita 1,074,758888 Holdings 1,070,429

Sales £

HSBC 3,382,345AstraZeneca 2,681,003GlaxoSmithKline 2,675,865Ocado 2,122,165ZPG 1,726,553Shire 1,625,893Diageo 1,358,597Standard Chartered 1,311,750Vedanta Resources 1,178,048Plus500 1,107,526

Page 20

River and MercantileUK Equity Smaller Companies Fund Investment Objective and PolicyThe investment objective of the sub-fund is to achieve capital growth by investing in a portfolio of investments whichshall primarily consist of UK equities which reside in the bottom 10% of the UK stock market in terms of marketcapitalisation.

Investment Manager’s ReviewPortfolio review For the six month period to 30 September 2018, the B-Class Accumulation shares of the River and Mercantile UKEquity Smaller Companies Fund returned 9.1% compared to the benchmark Numis Smaller Companies plus AIM(excluding Investment Trusts) Index return of 4.9%.


Performance and activityThe fund enjoyed a positive period, which was encouraging given a tricky start to the year. The largest contributor toperformance over the period was Learning Technologies, the largest supplier of e-learning solutions, performed wellfollowing the highly accretive acquisition of the US based talent management business, PeopleFluent, and associatedsynergy upgrades reported in the recent interim report. Other contributors included the leading supplier of direct carrierbilling, Boku, which finished the period higher as major e-commerce business recognised the payment provider as achannel to acquire new subscribers, and Gym Group, the low cost leader in UK gyms, which benefitted as concernsabout overcapacity in the industry receded on the back of positive pricing trends. However, Smart Metering Systemstracked lower during the period on the back of continued negative press commentary and, in particular, the BritishInfrastructure Group report which questioned the potential savings from smart meters. Other detractors fromperformance included gold stock, Hochschild Mining, which fell on the rising dollar as well as markets pricing in higherreal interest rates, and Ibstock, which fell as a result of lowering its earnings guidance.

Key purchases included Charter Court Financial Services, a specialist UK bank focused on buy-to-let and residentialmortgages, Sabre Insurance, a high quality motor insurer with sector leading returns due to management’s focus onunderwriting profits, and Diversified Gas & Oil, the leading consolidator of traditional gas assets in the AppalachianBasin. We continued to shift the portfolio out of cyclical growth stocks towards robust undervalued companies in orderto provide a better hedge in a ‘stagflationary’ environment. FDM, the high-returns ‘mountie’ recruitment business, hasbeen a long term performer in the fund and has delivered exceptional, long term organic growth. However, the shareshave substantially re-rated and returns have been declining so the position was exited in a bid to reduce the exposureto highly rated growth stocks. We exited Microgen, a provider of business-critcal software for the finance sector, asmarket expectations had reached a point that fully captured the margin accretive growth potential driven by regulatorychange. Following a period of strong earnings upgrades and re-rating driven by inflecting cyclical industrial endmarkets, we also exited our positions in Bodycote and Vesuvius as valuation on mid-cycle earnings looked stretched.

Page 21

River and MercantileUK Equity Smaller Companies FundInvestment Manager’s Review continuedOutlookWhile the data will always remain mixed, we cannot rule out that the previously identified maturing stock market cyclewill get worse before it gets better. Participants typically look for validation of slowdown from cyclical data or certainmarket events like an inverted yield curve. However, reflecting on the past six months reveals a series of events thatare symptoms of global tightening of financial conditions – largely a function of policy developments in the US. Itstarted with widening credit spreads highlighting tighter dollar liquidity. More recently Fed rate hikes, balance sheetshrinkage, a higher oil price and the risk of a trade war – expressed through risk-off positioning in markets continueto provide a warning. Whilst US PMIs hold up, around the rest of the world there is more softness, in particular evidentin European and EM PMIs. We remain vigilant that the economy may remain robust for a bit longer with inflationarypressures pushing higher in the US as well as a myriad of different outcomes possible in the Brexit discussions andso retain a balanced portfolio.

In the later stages of the stock market lifecycle it requires a nimble approach to stock selection to take opportunitiesin an ever changing market environment. What does not change, however, is that stocks are selected via ourdisciplined investment process which generates the opportunity to deliver alpha. Our PVT investment philosophyprovides a dedicated focus to investing in firms with high Potential to create significant shareholder value, whenbought at attractive low Valuations and at the right Time. We remain focused on PVT alpha and income generationwithin the rich opportunity set that the UK and global stock markets provide.

Page 22

River and MercantileUK Equity Smaller Companies FundPortfolio Statement as at 30 September 2018 Market % of Value Net Holding Investment £ Assets

UNITED KINGDOM (81.74%) 464,999,077 78.74

Oil & Gas Producers (2.38%) 30,449,853 5.15 39,032,500 Amerisur Resources* 4,629,255 0.78 4,400,000 Cairn Energy 10,208,000 1.73 6,809,264 Diversified Gas & Oil* 8,341,348 1.41 5,250,000 Premier Oil 7,271,250 1.23

Chemicals (1.32%) — —

Mining (1.11%) 6,986,056 1.19 60,000,000 Pan African Resources* 4,818,000 0.82 4,336,111 Serabi Gold 2,168,056 0.37

Construction & Materials (5.28%) 34,440,227 5.82 1,770,000 Costain 7,380,900 1.25 4,500,000 Ibstock 10,593,000 1.79 967,109 Keller 9,825,827 1.66 1,900,000 Tyman 6,640,500 1.12

Aerospace & Defence (4.21%) 28,820,007 4.88 316,380 Avon Rubber 4,049,664 0.69 3,613,183 Chemring 7,768,343 1.31 4,000,000 QinetiQ 11,444,000 1.94 350,000 Ultra Electronics 5,558,000 0.94

General Industrials (1.81%) — —

Electronic & Electrical Equipment (0.67%) 2,407,750 0.41 523,424 Dialight 2,407,750 0.41

Industrial Engineering (2.65%) 4,199,246 0.71 425,887 Hill & Smith 4,199,246 0.71

Support Services (11.77%) 83,864,421 14.20 3,374,018 Biffa 8,468,785 1.43 410,000 Diploma 5,793,300 0.98 730,000 Essentra 2,956,500 0.50 5,240,000 Johnson Service* 7,074,000 1.20 12,788,298 Learning Technologies* 21,164,633 3.58 687,857 PayPoint 6,362,677 1.08 3,390,475 Smart Metering Systems* 20,885,326 3.54 611,149 Staffline* 7,590,471 1.29 5,646,723 Speedy Hire 3,568,729 0.60

Beverages (4.54%) 17,012,900 2.88 310,000 Fever-Tree Drinks* 11,181,700 1.89 2,960,000 Stock Spirits 5,831,200 0.99

Food Producers (1.04%) 4,179,498 0.71 2,478,943 Bakkavor 4,179,498 0.71

Household Goods & Home Construction (0.86%) 10,226,195 1.73 520,000 Galliford Try 5,257,200 0.89 3,504,228 McBride 4,968,995 0.84

Page 23

River and MercantileUK Equity Smaller Companies FundPortfolio Statement continued Market % of Value Net Holding Investment £ Assets

Leisure Goods (0.97%) 3,810,490 0.65 3,063,095 Photo-Me 3,810,490 0.65

Personal Goods (0.00%) 1,987,300 0.34 850,000 PZ Cussons 1,987,300 0.34

Health Care Equipment & Services (1.91%) 12,168,862 2.06 850,000 Consort Medical 9,979,000 1.69 1,421,988 Medica 2,189,862 0.37

Pharmaceuticals & Biotechnology (1.20%) 10,010,694 1.69 9,500,000 Alliance Pharma* 6,270,000 1.06 15,586,224 Allergy Therapeutics* 3,740,694 0.63

Food & Drug (1.56%) 8,791,129 1.49 1,039,755 Clinigen* 8,791,129 1.49

General Retailers (3.55%) 16,000,751 2.71 5,500,000 boohoo.com* 12,875,500 2.18 2,042,648 Quiz* 3,125,251 0.53

Media (4.73%) 26,965,266 4.57 1,900,000 Ascential 7,942,000 1.34 2,300,000 Future 11,086,000 1.88 5,129,929 Reach 3,242,115 0.55 5,103,425 XLMedia* 4,695,151 0.80

Travel & Leisure (6.20%) 44,395,238 7.52 3,105,000 888 Holdings 6,185,160 1.05 4,222,500 Enterprise Inns 6,992,460 1.18 3,975,742 Gym 12,444,072 2.11 3,100,000 Hollywood Bowl 6,944,000 1.18 300,000 Millennium & Copthorne Hotels 1,563,000 0.26 1,705,910 On the Beach 8,444,255 1.43 1,467,223 Revolution Bars 1,822,291 0.31

Fixed Line Telecommunications (0.00%) 2,032,800 0.34 1,650,000 TalkTalk Telecom 2,032,800 0.34

Mobile Telecommunications (2.13%) 9,195,010 1.56 1,092,044 Gamma Communications* 9,195,010 1.56

Electricity (1.01%) 10,520,220 1.78 2,710,000 Drax 10,520,220 1.78

Banks (1.83%) 11,368,000 1.93 2,800,000 OneSavings Bank 11,368,000 1.93

Non-Life Insurance (1.20%) 7,370,708 1.25 2,791,935 Sabre Insurance 7,370,708 1.25

Life Insurance (0.00%) 1,332,314 0.23 1,507,143 Just 1,332,314 0.23

Real Estate Investment Trusts (0.83%) 9,879,791 1.67 3,900,000 Primary Health Properties 4,422,600 0.75 5,350,187 Supermarket Income REIT 5,457,191 0.92

Page 24


Financial Services (3.92%) 29,701,266 5.03 2,700,000 Charter Court Financial Services 9,034,200 1.53 2,296,876 John Laing 7,175,441 1.22 463,514 Provident Financial 2,799,625 0.47 5,400,000 Sigma Capital* 7,722,000 1.31 1,800,000 Xafinity 2,970,000 0.50

Equity Investment Instruments (1.21%) — —

Software & Computer Services (7.98%) 28,539,863 4.83 213,365 Blue Prism* 5,056,751 0.85 3,053,049 Codemasters 5,709,202 0.97 658,888 GB* 3,834,728 0.65 3,255,983 Ideagen* 5,177,013 0.88 1,852,467 SDL 8,762,169 1.48

Technology Hardware & Equipment (3.87%) 8,343,222 1.41 4,496,614 IQE* 3,689,472 0.62 1,095,000 Quixant* 4,653,750 0.79

CHANNEL ISLANDS (1.75%) 24,610,412 4.17

GUERNSEY (1.10%) 15,905,018 2.69

Equity Investment Instruments (0.00%) 9,095,720 1.54 4,310,768 River & Mercantile UK Micro Cap Investment Company** 9,095,720 1.54

Real Estate Investment & Services (1.10%) 6,809,298 1.15 6,370,666 Summit Germany* 6,809,298 1.15

JERSEY (0.65%) 8,705,394 1.48

Mining (0.65%) 8,705,394 1.48 4,055,011 Centamin 4,304,394 0.73 3,000,000 Highland Gold Mining* 4,401,000 0.75

ISLE OF MAN (1.67%) 12,821,400 2.17

Electronic & Electrical Equipment (1.67%) 12,821,400 2.17 7,650,000 Strix* 12,821,400 2.17

NORTH AMERICA (3.27%) 32,148,728 5.44

CANADA (0.00%) 1,940,855 0.33

Oil & Gas Producers (0.00%) 1,940,855 0.33 3,375,400 SDX Energy* 1,940,855 0.33

CAYMAN ISLANDS (0.00%) 2,604,000 0.44

Gas, Water & Multiutilities (0.00%) 2,604,000 0.44 4,200,000 Fulcrum Utility Services* 2,604,000 0.44

Page 25



Automobiles & Parts (1.36%) 8,122,000 1.38 3,275,000 TI Fluid Systems 8,122,000 1.38

Pharmaceuticals & Biotechnology (0.89%) 6,282,000 1.06 2,617,500 MaxCyte 6,282,000 1.06

Financial Services (1.02%) 13,199,873 2.23 7,857,067 Boku* 13,199,873 2.23

SOUTH AMERICA (1.83%) 9,453,675 1.60

PERU (1.83%) 9,453,675 1.60

Mining (1.83%) 9,453,675 1.60 5,775,000 Hochschild Mining 9,453,675 1.60

MIDDLE EAST (1.52%) 10,616,839 1.80

ISRAEL (1.52%) 10,616,839 1.80

Media (1.18%) 10,616,839 1.80 2,908,723 Taptica International* 10,616,839 1.80


PACIFIC BASIN (0.97%) 5,250,000 0.89

AUSTRALIA (0.97%) 5,250,000 0.89

Mining (0.97%) 5,250,000 0.89 15,000,000 Berkeley Energia* 5,250,000 0.89



Net assets 590,528,458 100.00




*Security listed on AIM.

**This is a related party investment.

Page 26

River and MercantileUK Equity Smaller Companies FundStatement of Total Returnfor the period ended 30 September 2018




£ £


£ £

IncomeNet capital gainsRevenue

Expenses




53,769,449 8,683,204

(2,891,371)

5,791,833 (148,211)

5,643,622

59,413,071 (5,658,535)

53,754,536

91,294,426 9,271,203

(3,656,184)

5,615,019 (187,906)

5,427,113

96,721,539 (3,005,735)

93,715,804


£ £


£ £


Dilution adjustmentChange in net assets attributable to Shareholders from investment activitiesRetained distributions on accumulation sharesUnclaimed distributions


708,564,566 2,635,671

(178,262,639) (175,626,968)

1,012,466

53,754,536 2,823,748

110

590,528,458

765,585,739 32,545,406

(42,827,301)(10,281,895)

(21,677)

93,715,804 1,404,879

—

850,402,850

Page 27

River and MercantileUK Equity Smaller Companies FundBalance Sheet as at 30 September 2018


31 March 2018£ £

ASSETSFixed assets

InvestmentsCurrent assets

DebtorsCash and bank balancesTotal other assets

Total assets

LIABILITIESCreditors

Distribution payableOther creditorsTotal other liabilities

Total liabilities


559,900,131

3,326,292 31,754,478

35,080,770

594,980,901

(2,202,030) (2,250,413)

(4,452,443)

(4,452,443)

590,528,458

657,202,170

3,577,177 60,185,539

63,762,716

720,964,886

(2,168,637) (10,231,683)

(12,400,320)

(12,400,320)

708,564,566

Page 28

River and MercantileUK Equity Smaller Companies FundFund Facts

Distribution informationA-Class Distribution sharesThe distribution payable on 30 November 2018 is 1.7855 (2017: 0.5340p) per share for distribution shares.

B-Class Accumulation sharesThe distribution payable on 30 November 2018 is 19.0789 (2017: 7.2489p) per share for accumulation shares.

B-Class Distribution sharesThe distribution payable on 30 November 2018 is 4.5297 (2017: 1.7398p) per share for distribution shares.

Performance records

Net asset values


£


p

Sharesin issue

31 March 2016A-Class Distribution sharesB-Class Accumulation sharesB-Class Distribution shares31 March 2017A-Class Distribution sharesB-Class Accumulation sharesB-Class Distribution shares31 March 2018A-Class Distribution sharesB-Class Accumulation sharesB-Class Distribution shares30 September 2018A-Class Distribution sharesB-Class Accumulation sharesB-Class Distribution shares

42,029,295316,115,238325,571,134

41,433,351356,124,359368,028,029

41,429,347 332,842,707334,292,512

40,503,874 323,200,410 226,824,174

256.071,534.69

372.86

294.471,787.68

429.05

325.461,995.38

474.21

353.022,183.73

514.45

16,412,91220,597,98687,318,272

14,070,48219,921,03685,777,930

12,729,663 16,680,70270,494,040

11,473,528 14,800,404 44,090,926

Page 29

River and MercantileUK Equity Smaller Companies FundFund Facts continued

Operating Charges











1 2 3 4 5 6 7

..........................................................................

30 September 2018

A-Class Distribution sharesB-Class Accumulation sharesB-Class Distribution shares

1.60%0.85%0.85%

Page 30

River and MercantileUK Equity Smaller Companies FundSummary of Largest Portfolio ChangesThe table below shows the top ten purchases and sales for the period.

Purchases £

Chemring 8,233,633Charter Court Financial Services 8,054,199Sabre Insurance 7,261,744Diversified Gas & Oil 7,137,776Premier Oil 6,476,318Codemasters 6,408,716PayPoint 6,014,672Centamin 5,866,050Supermarket Income REIT 5,403,689Galliford Try 5,211,538

Sales £

Blue Prism 23,457,165Fever-Tree Drinks 19,686,868Vesuvius 13,599,666Bodycote 11,523,148Avon Rubber 10,778,168Laird 10,422,841Elementis 8,664,793Hastings 8,661,063Microgen 7,781,736Gamma Communications 7,773,912

Page 31

River and MercantileUK Dynamic Equity FundInvestment Objective and PolicyThe investment objective of the sub-fund is to achieve capital growth through investing in a concentrated portfoliowhich will primarily consist of UK equities. The sub-fund will not be restricted by reference to a benchmark, sectorconstraints or company size.

Investment Manager’s ReviewPortfolio review For the six month period to 30 September 2018, the Z-Class Accumulation shares of the River and Mercantile UKDynamic Equity Fund returned 7.2% compared to the benchmark FTSE All-Share Index return of 8.3%.


Performance and activity During the period, the stock market treated those companies delivering weaker earnings updates particularly harshlyand the reality is the fund was invested in too many names that disappointed on this front. Over the six month period,the fund lagged the benchmark. The main detractor from performance over the period was Centamin, where disruptionto production due to equipment shortages and lower mined grades than expected led to sharp earnings downgradesand a steep fall in the share price. Elsewhere, private healthcare provider Spire Healthcare also suffered off the backof a very disappointing interim statement and Smart Metering Systems performed poorly on the back of continuednegative press commentary and, in particular, the British Infrastructure Group report which questioned the scale ofpotential savings and the ultimate beneficiaries of those savings. The biggest contributor to performance over theperiod was our major underweight (and zero weight later on in the period) to British American Tobacco. boohoo.comwas another contributor over the period on a highly impressive first half sales and gross margin performance, as wasQinetiQ, with investors beginning to reassess the opportunities for growth that the business possesses through bettercommercialisation of their IP and investment in their assets.

Key purchases during the period included Growth investment JD Sports Fashion and Chemring, where a newmanagement team has evolved the business from a financially vulnerable, short-cycle business exposed to the upsand downs of conflict budgets to one exposed to higher quality long term contracts. We also purchased Meggitt, aglobal engineering group specialising in harsh environment components and sub-systems for civil aerospace, militaryand energy end markets with a key franchise in aircraft brakes. Key sales during the period included theaforementioned British American Tobacco, finding more opportunities to deploy capital to higher conviction ideasincluding a higher weighting to tobacco peer Imperial Brands. We also exited Shire as the bid from TakedaPharmaceutical offered a value realisation event and Ascential. Given the combination of a high valuation, limitedearnings forecast upside and dependence on management achieving returns-accretive M&A for outperformance, ourconviction in the Ascential investment case reduced.

Page 32

River and MercantileUK Dynamic Equity FundInvestment Manager’s Review continuedOutlookThe stock market has taken a particularly dim view during this last earnings season of any companies reportingdisappointing numbers and we have held too many companies that fell into this bracket. In some cases the issuesare transitory and the share price response harsh, while in others the PVT investment case has been impaired andin these latter cases we have sought to take suitably swift action to sell out of these positions. This has certainly takenthe shine off strong showings from a number of holdings introduced to the fund over the last six months. Theinvestment environment remains as febrile as at any point since early 2016, with rising bond yields, Brexit negotiations,US-China trade relations and the Italian-EU impasse all vying for headlines and investor attention. While not obliviousto ‘top down’ considerations as investors, our PVT investment philosophy and bottom-up stock selection process isdesigned to shut out this macro noise and focus on company fundamentals, while the nimble and unconstrainedapproach that this fund takes makes it best positioned to be able to benefit from current market volatility. Ourphilosophy is strictly focused on finding firms with the Potential to create significant shareholder value from variousstages of the corporate lifecycle, when bought at attractive low Valuations at the right Time. The portfolio today hasan increased weight towards enterprises that should continue to compound high returns whatever the state of theglobal economy, some who can use self-help to improve the profitability of strong but under-earning franchises, andsome whose valuation is discounted against their asset value but whose returns and cash flow can improve (in somecases due to later cycle exposure). We believe that the balance and diversification benefits this brings will deliverstrong absolute and relative returns over the medium term and will shield investors from the painful de-rating thatsome well-loved pockets of the stock market are likely to witness.

Page 33

River and MercantileUK Dynamic Equity FundPortfolio Statement as at 30 September 2018 Market % of Value Net Holding Investment £ Assets

UNITED KINGDOM (74.35%) 105,146,998 84.64

Oil & Gas Producers (5.91%) 9,268,130 7.46 1,010,000 BP 5,951,930 4.79 750,000 Cairn Energy 1,740,000 1.40 600,000 Tullow Oil 1,576,200 1.27

Chemicals (2.49%) 3,451,260 2.78 97,000 Johnson Matthey 3,451,260 2.78

Forestry & Paper (0.00%) 1,577,250 1.27 75,000 Mondi 1,577,250 1.27

Mining (2.21%) 2,497,770 2.01 145,000 Anglo American 2,497,770 2.01

Construction & Materials (4.97%) 7,015,500 5.65 385,000 Costain 1,605,450 1.29 650,000 Ibstock 1,530,100 1.23 1,050,000 Melrose Industries 2,098,950 1.69 500,000 Polypipe 1,781,000 1.44

Aerospace & Defence (1.08%) 7,091,608 5.71 100,000 BAE Systems 629,800 0.51 1,376,557 Chemring 2,959,598 2.38 290,000 Meggitt 1,642,560 1.32 650,000 QinetiQ 1,859,650 1.50


Industrial Engineering (1.45%) — —

Support Services (8.50%) 9,986,850 8.04 80,000 Ashtead 1,949,600 1.57 700,000 Biffa 1,757,000 1.41 1,050,000 Capita 1,497,300 1.21 18,000 DCC 1,253,700 1.01 225,000 Essentra 911,250 0.73 425,000 Smart Metering Systems 2,618,000 2.11

Beverages (1.43%) 3,199,150 2.58 45,000 Fever-Tree Drinks 1,623,150 1.31 800,000 Stock Spirits 1,576,000 1.27

Tobacco (3.66%) 3,953,080 3.18 148,000 Imperial Brands 3,953,080 3.18

Health Care Equipment & Services (0.00%) 605,625 0.49 425,000 Spire Healthcare 605,625 0.49

Pharmaceuticals & Biotechnology (1.82%) 5,301,960 4.27 345,000 GlaxoSmithKline 5,301,960 4.27

Food & Drug Retailers (4.78%) 7,087,800 5.70 1,300,000 Morrison (Wm.) Supermarkets 3,370,900 2.71 1,550,000 Tesco 3,716,900 2.99

Page 34

River and MercantileUK Dynamic Equity FundPortfolio Statement continued Market % of Value Net Holding Investment £ Assets

General Retailers (5.24%) 8,119,410 6.53 470,000 Auto Trader 2,099,020 1.69 480,000 B&M European Value Retail 1,856,640 1.49 700,000 boohoo.com 1,638,700 1.32 550,000 JD Sports Fashion 2,525,050 2.03

Media (3.33%) — —

Travel & Leisure (0.72%) 4,175,540 3.36 850,000 888 Holdings 1,693,200 1.36 190,000 Playtech 926,060 0.75 33,000 Whitbread 1,556,280 1.25

Gas, Water & Multiutilities (2.57%) 4,071,510 3.28 1,250,000 Centrica 1,935,000 1.56 270,000 National Grid 2,136,510 1.72

Banks (12.80%) 14,890,770 11.99 475,000 HSBC 3,181,550 2.56 3,600,000 Lloyds Banking 2,133,720 1.72 450,000 OneSavings Bank 1,827,000 1.47 1,700,000 Royal Bank of Scotland 4,248,300 3.42 550,000 Standard Chartered 3,500,200 2.82

Non-life Insurance (1.00%) 1,848,000 1.49 700,000 Sabre Insurance 1,848,000 1.49

Life Insurance (6.02%) 4,095,495 3.29 750,000 Legal & General 1,966,500 1.58 121,000 Prudential 2,128,995 1.71

Financial Services (1.00%) 4,529,400 3.64 350,000 Charter Court Financial Services 1,171,100 0.94 1,075,000 John Laing 3,358,300 2.70

Software & Computer Services (2.36%) 2,380,890 1.92 160,000 Sage 938,240 0.76 305,000 SDL 1,442,650 1.16

CHANNEL ISLAND (2.38%) 5,276,257 4.25

JERSEY (2.38%) 5,276,257 4.25

Mining (2.38%) 2,149,537 1.73 2,025,000 Centamin 2,149,537 1.73

Construction & Materials (0.00%) 3,126,720 2.52 48,000 Ferguson 3,126,720 2.52


IRELAND (4.28%) 3,140,000 2.53

Construction & Materials (2.84%) 3,140,000 2.53 125,000 CRH 3,140,000 2.53

Pharmaceuticals & Biotechnology (1.44%) — —

Page 35

River and MercantileUK Dynamic Equity FundPortfolio Statement continued Market % of Value Net Holding Investment £ Assets

NETHERLANDS (5.15%) 6,194,600 4.99

Oil & Gas Producers (5.15%) 6,194,600 4.99 235,000 Royal Dutch Shell 'A' 6,194,600 4.99

SWITZERLAND (6.40%) 1,906,700 1.53

Mining (2.82%) 1,906,700 1.53 575,000 Glencore 1,906,700 1.53


MIDDLE EAST (1.48%) — —

UNITED ARAB EMIRATES (1.48%) — —

Health Care Equipment & Services (1.48%) — —

PACIFIC BASIN (1.83%) 2,089,000 1.68

AUSTRALIA (1.83%) 2,089,000 1.68

Mining (1.83%) 2,089,000 1.68 125,000 BHP Billiton 2,089,000 1.68 Portfolio of investments 123,753,555 99.62

Net other assets 473,846 0.38

Net assets 124,227,401 100.00




Page 36

River and MercantileUK Dynamic Equity FundStatement of Total Returnfor the period ended 30 September 2018




£ £


£ £


Expenses




9,651,388 3,225,280(652,729)

2,572,551(24,149)

2,548,402

12,199,790 (2,556,331)

9,643,459

9,162,548 3,307,114 (868,365)

2,438,749 (59,738)

2,379,011

11,541,559 (2,385,699)

9,155,860


£ £


£ £




214,066,582 1,117,929

(102,732,684)(101,614,755)

99,285

9,643,4592,032,830

124,227,401

162,200,831 63,298,268(4,141,771)

59,156,497 391,909

9,155,860 2,728,816

233,633,913

Page 37

River and MercantileUK Dynamic Equity FundBalance Sheet as at 30 September 2018


31 March 2018£ £

ASSETSFixed assets



Total assets

LIABILITIESCreditors


Total liabilities


123,753,555

1,014,757 1,790,812

2,805,569

126,559,124

(89,982) (2,241,741)

(2,331,723)

(2,331,723)

124,227,401

205,225,712

6,835,6658,036,270

14,871,935

220,097,647

(41,342) (5,989,723)

(6,031,065)

(6,031,065)

214,066,582

Page 38

River and MercantileUK Dynamic Equity FundFund Facts

Distribution informationA-Class Distribution sharesThe distribution payable on 30 November 2018 is 2.2143p (2017:1.4080p) per share for distribution shares.

B-Class Accumulation sharesThe distribution payable on 30 November 2018 is 8.6012p (2017: 5.9682p) per share for accumulation shares.

Z-Class Accumulation sharesThe distribution payable on 30 November 2018 is 24.5239p (2017: 17.9758p) per share for accumulation shares.

Performance records

Net asset values


£


p

Sharesin issue

31 March 2016A-Class Distribution sharesB-Class Accumulation sharesZ-Class Accumulation shares31 March 2017A-Class Distribution sharesB-Class Accumulation sharesZ-Class Accumulation shares31 March 2018A-Class Distribution sharesB-Class Accumulation sharesZ-Class Accumulation shares30 September 2018A-Class Distribution sharesB-Class Accumulation sharesZ-Class Accumulation shares

2,734,44661,208,964

2,084,412

7,490,310152,138,746

2,571,775

7,998,676 203,157,552

2,910,354

6,601,078 114,555,577

3,070,746

128.28372.00854.77

155.68461.57

1,068.50

154.18466.94

1,089.01

162.44500.53

1,171.80

2,131,59216,454,072

243,858

4,811,38732,960,877

240,690

5,187,906 43,508,320

267,247

4,063,669 22,887,081

262,053

Page 39

River and MercantileUK Dynamic Equity FundFund Facts continued

Operating Charges









• Concentration risk: the sub-fund invests in a limited number of securities and hence experiences higher levels ofvolatility than more diverse funds.



1 2 3 4 5 6 7

..........................................................................

30 September 2018

A-Class Distribution sharesB-Class Accumulation sharesZ-Class Accumulation shares

1.63%0.88%0.13%

Page 40

River and MercantileUK Dynamic Equity FundSummary of Largest Portfolio ChangesThe table below shows the top ten purchases and sales for the period.

Purchases £

Chemring 3,434,421JD Sports Fashion 2,874,575Polypipe 2,558,269GlaxoSmithKline 2,293,205888 Holdings 2,281,367Auto Trader 2,150,207Stock Spirits 2,142,848Meggitt 2,040,292Capita 2,026,836Spire Healthcare 1,966,098

Sales £

Royal Dutch Shell 'A' 6,817,391BP 5,704,847Lloyds Banking 5,209,406Prudential 4,639,829HSBC 4,449,551Legal & General 4,430,460Tesco 4,244,673ITV 4,191,724Glencore 3,993,702Ashtead 3,985,809

Page 41

River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)

Investment Objective and PolicyThe investment objective of the sub–fund is to achieve capital growth by investing in a portfolio which will primarilyconsist of UK equities that meet the Investment Manager’s recovery criteria of a turnaround in company profitabilityover the longer term.

Investment Manager’s ReviewPerformance reviewFor the six month period to 30 September 2018, the Z-Class Accumulation shares of the River and Mercantile UKRecovery Fund (which was renamed from the River and Mercantile UK Equity Long Term Recovery Fund on 1 July2018) returned 6.9% compared to the benchmark FTSE All-Share Index return of 8.3%.


Performance and activityWe are not well positioned for the current type of market: narrow, capital seeking certainty at any price, pro expensivegrowth stocks and anti-value stocks. Over the six month period, performance was hindered by the drag of valueversus growth. The biggest detractors from performance over the period included TP ICAP and Centamin, followingdisappointing company updates. Our overweight to financials also hindered performance (Standard Chartered, RoyalBank of Scotland), as did our emerging markets exposure (DP Eurasia, Playtech). The greatest contributor toperformance was our underweight position to British American Tobacco. Our exposure to oil and gas stocks (PremierOil, Faroe Petroleum and Rockhopper Exploration) also added to performance, as did M&A activity (ZPG) and ourstock picking (Filtronic, Learning Technologies).

Major purchases during the period focused on high scoring stock and PVT anomalies and, in many cases, recyclingstrong performers into laggards as we would anticipate a reversal in fortunes when value returns. We added furtherto emerging market facing companies as those stocks came under more selling pressure, impacted by very weaksentiment, the strong US dollar and trade war dislocation. With the energy complex recovering we added to ourexposure, with a focus on building up later cycle services companies, including a new holding in Petrofac and WeirGroup. We also bought Essentra (support services turnaround), Associated British Foods (significantly de-rated overthe last couple of years as Primark growth has slowed, forecasts now look very achievable) and BTG (de-rated, non-cyclical specialist pharma company now on an attractive rating where forecasts are now conservative and starting tobe beaten). Sales were focused on M&A (Shire, Sinclair Pharma and Vedanta Resources) and taking profits in anumber of strong performers (Burberry, Senior, QinetiQ and Rotork). We also cut a couple of stocks where the thesiswas not playing out (Merlin Entertainments and Spire Healthcare).

Page 42

River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)Investment Manager’s Review continuedOutlookWe are high conviction regarding both the absolute and relative valuation and profit potential of the stocks in thisportfolio. We keep putting money into very cheap PVT stocks, some of which are new ideas and some existing ideas.“Mr. Market” is focused on paying higher and higher prices for the already fully delivering expensive growth stocks;we are paying lower prices for everything else that has been left behind (for whatever reason) in the stampede of hotcapital into ‘guaranteed’ growth. There are so many opportunities to create medium term wealth. Our recent short-term returns have been modest ones, but we remain very excited about the medium term opportunities.

Page 43

River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)Portfolio Statement as at 30 September 2018 Market % of Value Net Holding Investment £ Assets

UNITED KINGDOM (68.71%) 191,702,028 69.62

Oil & Gas Producers (8.77%) 27,594,545 10.02 12,188,709 Amerisur Resources 1,445,581 0.52 1,902,000 BP 11,208,486 4.07 508,482 Cairn Energy 1,179,678 0.43 900,532 Eland Oil & Gas 1,035,612 0.38 2,917,278 Enquest 1,204,836 0.44 914,030 Faroe Petroleum 1,519,118 0.55 462,354 Gulf Keystone Petroleum 1,333,891 0.48 910,000 JKX Oil & Gas 318,500 0.12 3,343,025 Ophir Energy 1,265,335 0.46 918,400 Premier Oil 1,271,984 0.46 4,753,857 Rockhopper Exploration 1,766,058 0.64 1,287,052 Serica Energy 1,093,994 0.40 1,232,726 SOCO International 1,061,377 0.38 1,470,000 Trinity Exploration and Production 266,070 0.10 618,205 Tullow Oil 1,624,025 0.59

Oil Equipment, Services & Distribution (0.98%) 3,428,264 1.25 115,825 Hunting 904,014 0.33 168,600 Petrofac 1,092,191 0.40 185,596 Wood (John) 1,432,059 0.52

Chemicals (0.62%) 1,412,385 0.51 634,420 Carclo 577,322 0.21 23,470 Johnson Matthey 835,063 0.30

Mining (4.19%) 11,461,094 4.16 311,488 Anglo American 5,365,692 1.95 157,098 Rio Tinto (UK Regd.) 6,095,402 2.21

Construction & Materials (0.54%) 3,356,231 1.22 7,915,000 Aukett Fitzroy Robinson 139,304 0.05 371,502 Norcros 780,154 0.28 158,433 Polypipe 564,338 0.21 575,000 Tekmar 937,250 0.34 267,578 Tyman 935,185 0.34

Aerospace & Defence (2.33%) 6,245,392 2.27 1,293,545 Chemring 2,781,122 1.01 620,739 Cobham 724,713 0.26 260,320 QinetiQ 744,776 0.27 112,958 Rolls-Royce 1,115,347 0.41 55,380 Ultra Electronics 879,434 0.32

General Industrials (0.57%) 1,328,575 0.48 1,612,348 Coats 1,328,575 0.48

Electronic & Electrical Equipment (1.62%) 5,599,108 2.03 179,973 Dialight 827,876 0.30 249,566 Morgan Advanced Materials 829,058 0.30 114,328 Oxford Instruments 1,131,847 0.41 239,802 TT Electronics 623,485 0.23 1,653,898 Volex 1,372,735 0.50 496,407 Xaar 814,107 0.29

Page 44

River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)Portfolio Statement continued Market % of Value Net Holding Investment £ Assets

Industrial Engineering (1.45%) 4,235,927 1.54 935,591 MPAC 1,300,471 0.47 723,412 Northbridge 954,904 0.35 2,862,125 Renold 1,119,091 0.41 174,088 Rotork 575,361 0.21 16,228 Weir 286,100 0.10

Industrial Transportation (0.00%) 472,366 0.17 4,961,832 DX 472,366 0.17

Support Services (3.19%) 14,023,653 5.09 140,201 Aggreko 1,221,151 0.44 1,467,269 Augean 748,307 0.27 294,562 Biffa 739,351 0.27 442,955 Blancco Technology 482,821 0.18 735,605 Capita 1,048,973 0.38 127,183 De La Rue 613,022 0.22 572,338 Driver 446,424 0.16 158,273 Equiniti 420,215 0.15 281,977 Essentra 1,142,007 0.42 890,193 Learning Technologies 1,473,269 0.54 547,100 MITIE 802,596 0.29 467,152 RPS 1,027,734 0.37 1,163,291 Serco 1,136,535 0.41 89,770 Smart Metering Systems 552,983 0.20 1,683,651 St. Ives 1,734,161 0.63 1,991,303 Utilitywise 434,104 0.16

Beverages (1.23%) 821,588 0.30 417,050 Stock Spirits 821,588 0.30

Food Producers (0.60%) 2,018,233 0.73 12,310 Associated British Foods 281,776 0.10 414,944 Devro 854,785 0.31 129,126 Tate & Lyle 881,672 0.32

Household Goods & Home Construction (0.34%) 2,797,209 1.02 54,898 Bovis Homes 588,781 0.21 134,900 Galliford Try 1,363,839 0.50 629,820 McCarthy & Stone 844,589 0.31

Personal Goods (0.87%) 1,603,633 0.58 37,237 Burberry 750,326 0.27 364,973 PZ Cussons 853,307 0.31


Pharmaceuticals & Biotechnology (4.11%) 4,597,968 1.67 124,600 BTG 687,169 0.25 213,421 GlaxoSmithKline 3,279,854 1.19 342,905 Indivior 630,945 0.23

Food & Drug Retailers (0.53%) 1,463,455 0.53 333,700 Morrison (Wm.) Supermarkets 865,284 0.31 66,567 Ocado 598,171 0.22

Page 45


General Retailers (2.41%) 5,009,956 1.82 241,372 Auto Trader 1,077,967 0.39 217,825 B&M European Value Retail 842,547 0.31 2,299,547 Game Digital 696,763 0.25 177,115 Kingfisher 456,957 0.17 171,700 Majestic Wine 669,630 0.24 2,770,443 Pendragon 750,790 0.27 431,576 Pets at Home 515,302 0.19

Media (2.01%) 7,678,600 2.79 126,913 Ascential 530,496 0.19 167,000 Centaur Media 63,460 0.02 112,300 Daily Mail & General Trust 'A' 788,346 0.29 1,719,204 Ebiquity 739,258 0.27 160,462 Future 773,427 0.28 349,000 ITV 550,896 0.20 666,702 Reach 421,356 0.15 874,782 RhythmOne 1,942,016 0.71 121,173 STV 466,516 0.17 670,000 Time out 556,100 0.20 920,358 XLMedia 846,729 0.31

Travel & Leisure (1.15%) 4,487,429 1.63 510,824 888 Holdings 1,017,561 0.37 310,534 Playtech 1,513,543 0.55 293,580 Rangers International Football 58,716 0.02 991,978 Thomas Cook 574,355 0.21 16,400 Whitbread 773,424 0.28 218,100 William Hill 549,830 0.20

Fixed Line Telecommunications (0.39%) 597,045 0.22 265,000 BT 597,045 0.22

Mobile Telecommunications (1.17%) 820,186 0.30 164,070 Inmarsat 820,186 0.30

Electricity (0.50%) — —

Gas, Water & Multiutilities (0.51%) 781,022 0.28 504,536 Centrica 781,022 0.28

Financials (1.13%) 4,421,272 1.60 251,280 Prudential 4,421,272 1.60

Banks (15.63%) 32,273,439 11.72 2,333,671 Barclays 4,008,780 1.45 98,500 Georgia Capital 1,097,684 0.40 1,650,172 HSBC 11,052,852 4.01 11,751,982 Lloyds Banking 6,965,400 2.53 154,051 OneSavings Bank 625,447 0.23 1,374,513 Royal Bank of Scotland 3,434,908 1.25 799,555 Standard Chartered 5,088,368 1.85

Non-Life Insurance (0.00%) 833,105 0.30 315,570 Sabre Insurance 833,105 0.30

Page 46


Life Insurance (1.02%) 3,011,008 1.10 831,160 Just 734,745 0.27 274,729 Legal & General 720,339 0.26 960,447 Old Mutual 1,555,924 0.57

Real Estate Investment & Services (0.96%) 2,776,881 1.01 173,980 Grainger Trust 521,940 0.19 481,312 Purplebricks 1,103,167 0.40 35,500 Savills 277,077 0.10 384,482 U and I 874,697 0.32

Real Estate Investment Trusts (0.32%) 694,477 0.25 112,630 British Land 694,477 0.25

Financial Services (4.09%) 14,248,821 5.18 383,372 ADVFN 95,843 0.03 283,700 Ashmore 1,032,668 0.38 209,858 Brewin Dolphin 719,813 0.26 65,532 Brooks MacDonald 1,294,257 0.47 685,923 CMC Markets 953,433 0.35 74,740 Gresham House Strategic 739,926 0.27 202,353 H&T 623,247 0.23 140,992 IG 892,479 0.32 110,633 IMI 1,213,644 0.44 440,000 Impax Asset Management 1,060,400 0.39 456,600 International Personal Finance 1,027,350 0.37 99,400 John Laing 310,526 0.11 1,979,243 Miton 1,405,263 0.51 129,700 Provident Financial 783,388 0.28 263,485 RM 537,509 0.20 65,000 Shore Capital 165,750 0.06 521,454 TP ICAP 1,393,325 0.51

Equity Investment Instruments (1.09%) 3,466,273 1.26 121,277 BlackRock World Mining Trust 441,448 0.16 910,498 Fidelity China Special Situations Investment Trust 1,957,571 0.71 223,275 Gresham House 1,067,254 0.39

Software & Computer Services (2.44%) 10,705,798 3.89 218,619 Alfa Financial Software 298,634 0.11 687,200 AO World 962,080 0.35 382,000 Avast 1,082,588 0.39 396,915 Codemasters 742,231 0.27 3,126,779 Earthport 253,269 0.09 2,736,018 Eckoh 1,026,007 0.37 2,675,000 Eu-Supply 334,375 0.12 16,667 First Derivative 683,347 0.25 227,631 IMImobile 792,156 0.29 729,431 NCC 1,458,862 0.53 170,000 Sage 996,880 0.36 287,914 SDL 1,361,833 0.50 827,768 Tribal 713,536 0.26

Technology Hardware & Equipment (0.97%) 4,761,324 1.73 5,467,390 Filtronic 1,530,869 0.56 1,250,800 IQE 1,026,281 0.37 884,951 Spirent Communications 1,189,374 0.43 590,000 Telit Communications 1,014,800 0.37

Page 47


CHANNEL ISLANDS (0.65%) 1,309,325 0.48

JERSEY (0.65%) 1,309,325 0.48

Mining (0.65%) 1,309,325 0.48 1,233,467 Centamin 1,309,325 0.48

ISLE OF MAN (0.00%) 725,205 0.26

Electronic & Electrical Equipment (0.00%) 725,205 0.26 432,700 Strix 725,205 0.26

NORTH AMERICA (4.80%) 10,774,670 3.91

BERMUDA (0.19%) 424,875 0.15



Oil & Gas Producers (0.00%) 826,875 0.30 675,000 Diversified Gas & Oil 826,875 0.30

Industrial Engineering (0.69%) 1,587,127 0.58 417,665 Somero Enterprises 1,587,127 0.58

Automobiles & Parts (0.34%) 1,061,006 0.39 427,825 TI Fluid Systems 1,061,006 0.39

Leisure Goods (0.90%) 2,225,107 0.81 65,000 Acushnet 1,366,244 0.50 280,000 Zynga 858,863 0.31

Personal Goods (0.56%) 1,160,186 0.42 11,000 Ralph Lauren 1,160,186 0.42


Food & Drug Retailers (0.56%) 1,169,798 0.42 11,500 McKesson 1,169,798 0.42

Fixed Line Telecommunications (0.33%) 1,219,278 0.44 75,000 CenturyLink 1,219,278 0.44

Banks (0.50%) 1,100,418 0.40 20,000 Citigroup 1,100,418 0.40

SOUTH AMERICA (0.65%) 3,324,950 1.21

BRAZIL (0.65%) 2,150,276 0.78

Industrial Transportation (0.00%) 796,313 0.29 580,000 Ecorodovias Infraestrutura e Logistica 796,313 0.29

Household Goods & Home Construction (0.24%) 525,966 0.19 245,000 Gafisa 525,966 0.19

Fixed Line Telecommunications (0.41%) 827,997 0.30 110,000 Telefonica Brasil pref. 827,997 0.30

Page 48


CHILE (0.00%) 305,235 0.11

Mining (0.00%) 305,235 0.11 35,700 Antofagasta 305,235 0.11

MEXICO (0.00%) 869,439 0.32

Mining (0.00%) 869,439 0.32 105,900 Fresnillo 869,439 0.32


FRANCE (2.36%) 6,283,544 2.28

Oil Equipment, Services & Distribution (0.00%) 1,059,054 0.38 500,000 CGG 1,059,054 0.38

Construction & Materials (0.43%) 742,496 0.27 16,000 Vicat 742,496 0.27

Food & Drug Retailers (0.42%) 1,089,895 0.39 75,000 Carrefour 1,089,895 0.39

Media (0.35%) — —

Fixed Line Telecommunications (0.56%) 1,586,354 0.58 130,000 Orange 1,586,354 0.58

Banks (0.30%) 982,195 0.36 21,000 BNP Paribas 982,195 0.36

Software & Computer Services (0.30%) 823,550 0.30 33,500 Cegedim 823,550 0.30

GERMANY (0.27%) 988,924 0.36

Chemicals (0.27%) 988,924 0.36 14,500 Bayer (Regd.) 988,924 0.36

GREECE (1.46%) 3,487,610 1.27

Construction & Materials (0.31%) 893,783 0.32 47,000 Titan Cement 893,783 0.32

Household Goods & Home Construction (0.48%) 1,036,118 0.38 225,000 Fourlis 1,036,118 0.38

Personal Goods (0.39%) 674,125 0.25 102,000 Sarantis 674,125 0.25

Banks (0.28%) 883,584 0.32 800,000 Alpha Bank 883,584 0.32

IRELAND (0.44%) 1,869,484 0.68

Construction & Materials (0.15%) 1,009,824 0.37 40,200 CRH 1,009,824 0.37

Industrial Engineering (0.29%) 859,660 0.31 614,043 Mincon 859,660 0.31

Page 49


ITALY (1.42%) 2,455,869 0.89

General Industrials (0.32%) 827,719 0.30 220,000 Anima 827,719 0.30

General Retailers (0.42%) 827,024 0.30 100,000 Cerved Information Solutions 827,024 0.30

Banks (0.39%) 801,126 0.29 69,400 UniCredit 801,126 0.29


NETHERLANDS (4.02%) 12,468,384 4.53

Oil & Gas Producers (3.24%) 10,036,827 3.65 373,255 Royal Dutch Shell 'B' (UK Regd.) 10,036,827 3.65

Oil Equipment, Services & Distribution (0.26%) — —

Travel & Leisure (0.20%) 1,058,420 0.38 1,245,200 DP Eurasia 1,058,420 0.38

Banks (0.32%) 704,552 0.26 35,000 Van Lanschot 704,552 0.26

Financial Services (0.00%) 668,585 0.24 13,000 EXOR 668,585 0.24

NORWAY (0.45%) 599,289 0.22

Mobile Telecommunications (0.45%) 599,289 0.22 40,000 Telenor 599,289 0.22

SPAIN (0.46%) 1,546,788 0.56

Industrial Engineering (0.00%) 727,821 0.26 75,000 Gamesa 727,821 0.26

Financial Services (0.46%) 818,967 0.30 486,999 Prosegur Cash 818,967 0.30

SWEDEN (0.00%) 910,005 0.33

Industrial Engineering (0.00%) 910,005 0.33 115,000 Epiroc 910,005 0.33

Travel & Leisure (0.00%) — — 9,940,556 Trustbuddy* — —

SWITZERLAND (2.02%) 4,987,396 1.81


Mining (1.39%) 3,959,762 1.44 1,194,138 Glencore 3,959,762 1.44

Electronic & Electrical Equipment (0.45%) 1,027,634 0.37 20,000 Landis+Gyr 1,027,634 0.37

Page 50



MIDDLE EAST (1.51%) 3,862,917 1.40

ISRAEL (1.02%) 1,668,150 0.60

Chemicals (0.36%) 693,608 0.25 150,000 Israel Chemicals 693,608 0.25


Technology Hardware & Equipment (0.35%) 974,542 0.35 2,866,300 BATM Advanced Communications 974,542 0.35

UNITED ARAB EMIRATES (0.49%) 2,194,767 0.80

Oil & Gas Producers (0.00%) 1,786,567 0.65 510,000 Borr Drilling 1,786,567 0.65

Oil Equipment, Services & Distribution (0.49%) 408,200 0.15 650,000 Lamprell 408,200 0.15

AFRICA (1.18%) 2,711,732 0.98

EGYPT (0.00%) 626,525 0.23


GHANA (0.80%) — —

Oil & Gas Producers (0.80%) — —

NIGERIA (0.00%) 590,750 0.21

Oil & Gas Producers (0.00%) 590,750 0.21 425,000 SEPLAT Petroleum Development 590,750 0.21

SOUTH AFRICA (0.38%) 1,494,457 0.54

Media (0.38%) 1,040,336 0.38 6,310 Naspers 'N' 1,040,336 0.38

Financial Services (0.00%) 454,121 0.16 84,190 Investec 454,121 0.16

ASIA (7.67%) 19,712,288 7.16

CHINA (2.07%) 5,536,291 2.01

Industrial Engineering (0.34%) 874,163 0.32 200,000 Zhuzhou CRRC Times Electric 'H' 874,163 0.32

Food Producers (0.75%) 1,303,551 0.47 925,000 Tingyi (Cayman Islands) 1,303,551 0.47

Personal Goods (0.22%) — —

Financials (0.41%) 976,671 0.36 330,000 China Pacific Insurance 976,671 0.36

Page 51


Non-Equity Investment Instruments (0.00%) 1,242,107 0.45 439,200 iShares MSCI China A UCITS ETF USD Acc 1,242,107 0.45

Software & Computer Services (0.35%) 1,139,799 0.41 6,500 Baidu ADR 1,139,799 0.41

HONG KONG (0.67%) 1,304,180 0.47

General Industrials (0.00%) 678,162 0.24 500,000 Swire Pacific (B) 678,162 0.24

Food Producers (0.33%) — —

Personal Goods (0.34%) 626,018 0.23 2,074,000 Texwinca 626,018 0.23

INDIA (0.70%) 622,498 0.23

Mining (0.40%) — —

Electricity (0.30%) 622,498 0.23 5,872,625 OPG Power Ventures 622,498 0.23

JAPAN (2.85%) 7,286,275 2.64

Leisure Goods (0.42%) 1,385,540 0.50 4,950 Nintendo 1,385,540 0.50

Health Care Equipment & Services (0.48%) 1,248,983 0.45 25,000 Fukuda Denshi 1,248,983 0.45

Food & Drug Retailers (0.40%) 923,471 0.34 55,000 Qol 923,471 0.34

Banks (0.53%) 1,238,181 0.45 40,000 Sumitomo Mitsui Financial 1,238,181 0.45

Financial Services (0.43%) 1,023,322 0.37 43,000 SBI Holdings 1,023,322 0.37

Technology Hardware & Equipment (0.59%) 1,466,778 0.53 180,000 Konica Minolta 1,466,778 0.53

KAZAKHSTAN (0.75%) 2,523,793 0.92

Oil & Gas Producers (0.35%) 1,017,772 0.37 423,190 Nostrum Oil & Gas 1,017,772 0.37

Mining (0.40%) 1,506,021 0.55 274,121 KAZ Minerals 1,506,021 0.55

MAURITIUS (0.21%) 870,822 0.32

Support Services (0.21%) 870,822 0.32 2,291,638 Capital Drilling 870,822 0.32

SINGAPORE (0.42%) 984,959 0.36

Real Estate Investment & Services (0.42%) 984,959 0.36 900,000 Wing Tai Holdings 984,959 0.36

Page 52

River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)

SOUTH KOREA (0.00%) 583,470 0.21

Automobiles & Parts (0.00%) 583,470 0.21 10,000 Hyundai Motor pref. '2' 583,470 0.21

PACIFIC BASIN (2.90%) 7,400,792 2.69

AUSTRALIA (2.90%) 7,400,792 2.69

Industrial Metals & Mining (0.47%) 992,001 0.36 3,249,886 International Ferro Metals* — — 463,119 South32 992,001 0.36

Mining (2.13%) 5,689,383 2.07 340,437 BHP Billiton (London listing) 5,689,383 2.07

General Retailers (0.30%) 719,408 0.26 1,433,083 MySale 719,408 0.26

FORWARD CURRENCY CONTRACTS (0.07%) 18,242 0.01£15,140,073 Forward Currency Contract 18/10/2018: UK Sterling 15,140,073 vs Euro 16,968,000 18,242 0.01


Net other liabilities (1,782,910) (0.65)

Net assets 275,356,532 100.00




*Delisted security.

Portfolio Statement continued Market % of Value Net Holding Investment £ Assets

Page 53

River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)Statement of Total Returnfor the period ended 30 September 2018




£ £


£ £





12,111,905 4,933,067 (1,447,425)

(963)

3,484,679 (91,771)

3,392,908

15,504,813 (3,177,911)

12,326,902

9,653,520 2,991,589 (906,899)

(468)

2,084,222 (39,357)

2,044,865

11,698,385 —

11,698,385


£ £


£ £




227,338,668 43,938,996(8,668,819)

35,270,177 375,007

12,326,902 45,778

275,356,532

133,383,543 51,451,623 (9,225,782)

42,225,841 327,418

11,698,385 —

187,635,187

Page 54

River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)Balance Sheet as at 30 September 2018


31 March 2018£ £


Total assets

LIABILITIESCreditors Bank overdraftsDistribution payableOther creditors

Total other liabilities

Total liabilities


277,139,442

4,849,471 2,380,387

7,229,858

284,369,300

— (3,263,691)(5,749,077)

(9,012,768)

(9,012,768)

275,356,532

229,699,325

8,040,021 128,791

8,168,812

237,868,137

(430,198) (4,570,798) (5,528,473)

(10,529,469)

(10,529,469)

227,338,668

Page 55

River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)Fund Facts

Distribution informationA-Class Distribution sharesThe distribution payable on 30 November 2018 is 2.6068p (2017: Nil) per share distribution shares.

B-Class Distribution sharesThe distribution payable on 30 November 2018 is 13.7663p (2017: Nil) per share distribution shares.

S-Class Distribution sharesThe distribution payable on 30 November 2018 is 1.7061p (2017: Nil) per share distribution shares.

Z-Class Accumulation sharesThe distribution payable on 30 November 2018 is 33.2676p (2017: Nil) per share accumulation shares.

Performance records

Net asset values

The S-Class Distribution share class launched on 20 July 2018


£


p

Sharesin issue

31 March 2016A-Class Distribution sharesB-Class Distribution sharesZ-Class Accumulation shares31 March 2017A-Class Distribution sharesB-Class Distribution sharesZ-Class Accumulation shares31 March 2018A-Class Distribution sharesB-Class Distribution sharesZ-Class Accumulation shares30 September 2018A-Class Distribution sharesB-Class Distribution sharesS-Class Distribution sharesZ-Class Accumulation shares

98,583,94218,463,0841,843,622

3,046,129128,203,3412,134,073

1,985,648223,003,7942,349,226

1,696,882 237,545,028 33,503,624 2,610,998

206.55757.74

1,229.36

270.48993.35

1,657.22

279.461,026.071,764.31

295.321,084.23 245.70

1,897.47

47,729,1422,436,588149,966

1,126,17312,906,184128,774

710,54121,733,786133,153

574,600 21,909,035 13,636,093 137,604

Page 56

River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)Fund Facts continued

Operating Charges




Please note, the category stated above is the same for each class of share within the sub–fund.


The shaded area in the Indicator shows the sub–fund’s ranking on the Synthetic Risk & Reward Indicator. The Indicatoruses a standard calculation method that is used by all EU companies who offer such funds to allow you to comparefunds. Historical data is used to calculate the ranking and this may not be a reliable indication for the future rankingand might change.

The sub–fund may not achieve its investment objective and/or you could lose money on your investment in the sub–fund. The following risks are materially relevant to the sub–fund but may not be adequately captured by the Riskand Reward Indicator, and may cause additional loss:

• Liquidity risk: securities in the sub–fund may be sold below their valuation due to insufficient liquidity in the market.

• Foreign exchange risk: the sub–fund invests in international securities which are denominated in foreign currencieswhose fluctuations may increase the sub–fund’s volatility and losses.

• Forward FX risk: the sub-fund may use forward FX transactions for efficient portfolio management purposes onlyto reduce the risk of the sub-fund, but may not always be effective and the sub-fund may still suffer a loss.

• Derivative risk: Derivatives may be used to reduce the risk of the sub-fund, but may not always be effective andthe sub-fund may still suffer a loss.



1 2 3 4 5 6 7

..........................................................................

30 September 2018

A-Class Distribution sharesB-Class Distribution sharesS-Class Distribution sharesZ-Class Accumulation shares

1.85%1.10%0.87%0.10%

Page 57

River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)River and MercantileUK Recovery Fund (formerly UK Equity Long Term Recovery Fund)Summary of Largest Portfolio ChangesThe table below shows the top ten purchases and sales for the period.

Purchases £

Prudential 3,147,714HSBC 2,818,642Anglo American 1,894,204Playtech 1,878,745Chemring 1,668,855DP Eurasia 1,472,320Essentra 1,465,327888 Holdings 1,370,472Lloyds Banking 1,293,403Galliford Try 1,292,198

Sales £

HSBC 6,350,666AstraZeneca 3,709,728Shire 2,497,237GlaxoSmithKline 2,483,868Diageo 2,345,175Vodafone 1,879,765Ocado 1,828,422ZPG 1,761,189Anglo American 1,200,632Inmarsat 1,179,887

Page 58

River and MercantileUK Equity Income FundInvestment Objective and PolicyThe investment objective of the sub-fund is to generate a rising level of income combined with the potential for capitalgrowth through investing in a portfolio which shall primarily consist of UK equities, however, it may also invest in otherinstruments such as government gilts, corporate fixed income securities and convertibles.

Investment Manager’s ReviewPortfolio review For the six month period to 30 September 2018, the B-Class Distribution shares of the River and Mercantile UK EquityIncome Fund returned 7.6% compared to the benchmark FTSE All-Share Index return of 8.3%.


Performance and activityThe prevailing factor headwinds affected performance during the period, with the fund modestly underperforming thebenchmark. The main negative contributors during the period were from our basket of gold stocks (Barrick Gold,Fresnillo, Centamin). Smart Metering Systems also fell during the period on the back of continued negative presscommentary and, in particular, the British Infrastructure Group report which questioned the potential savings fromsmart meters. Our portfolio and sector positioning was good with the overweight in Food Retailers proving positivefor performance (J Sainsbury, Morrison (Wm.) Supermarkets). Learning Technologies, the largest supplier of e-learningsolutions in the UK, performed well following the highly accretive acquisition of the US based talent managementbusiness, PeopleFluent, and associated synergy upgrades reported in the recent interim report. Our oil and gas stocksalso contributed positively as the oil price continue to rise with BP and Tullow Oil doing well in particular.

Key purchases included Charter Court Financial Services, a specialist UK bank focused on buy-to-let and residentialmortgages and Sabre Insurance, a high quality motor insurer with sector leading returns due to management’s focuson underwriting profits. Aggreko is a global provider of mobile power solutions to a range of sectors including oil andgas, petrochemicals, refining and utilities. A modest position was purchased at a low entry valuation on trough earningsfollowing several years of earnings downgrades presenting option value on rebounding late-cycle end marketexposures. Meggitt is a global engineering group specialising in harsh environment components and sub-systemsfor civil aerospace, military and energy end markets with a market leading position in aircraft brakes. We continuedto shift our portfolio out of cyclical growth orientated stocks towards robust undervalued companies in order to providea better hedge in a ‘stagflationary’ environment. In terms of sales, we reduced our conviction in ITV during the periodas our research identified more material second-half earnings risk and, following a period of strong earnings upgradesand re-rating driven by inflecting cyclical industrial end markets, we decided to exit our position in Vesuvius as valuationon mid-cycle earnings looked stretched. We sold Pets at Home, the dominant UK specialist pet care retailer andservice provider as it became clear that Recovery potential was limited with further price investment in merchandiseannounced as a result of tough online competition.

Page 59

River and MercantileUK Equity Income FundInvestment Manager’s Review continuedOutlookWhile the data will always remain mixed, we cannot rule out that the previously identified maturing stock market cyclewill get worse before it gets better. Participants typically look for validation of slowdown from cyclical data or certainmarket events like an inverted yield curve. However, reflecting on the past six months reveals a series of events thatare symptoms of global tightening of financial conditions – largely a function of policy developments in the US. Itstarted with widening credit spreads highlighting tighter dollar liquidity. More recently Fed rate hikes, balance sheetshrinkage, a higher oil price and the risk of a trade war – expressed through risk-off positioning in markets continueto provide a warning. Whilst US PMIs hold up, around the rest of the world there is more softness, in particular evidentin European and EM PMIs. We remain vigilant that the economy may remain robust for a bit longer with inflationarypressures pushing higher in the US as well as a myriad of different outcomes possible in the Brexit discussions andso retain a balanced portfolio.

In the later stages of the stock market lifecycle it requires a nimble approach to stock selection to take opportunitiesin an ever changing market environment. What does not change, however, is that stocks are selected via ourdisciplined investment process which generates the opportunity to deliver alpha. Our PVT investment philosophyprovides a dedicated focus to investing in firms with high Potential to create significant shareholder value, whenbought at attractive low Valuations and at the right Time. We remain focused on PVT alpha and income generationwithin the rich opportunity set that the UK and global stock markets provide.

Page 60

River and MercantileUK Equity Income FundPortfolio Statement as at 30 September 2018 Market % of Value Net Holding Investment £ Assets

UNITED KINGDOM (78.15%) 227,733,670 80.15

Oil & Gas Producers (8.83%) 28,595,178 10.06 5,410,000 Amerisur Resources 641,626 0.22 2,800,000 BP 16,500,400 5.81 5,253,536 Diversified Gas & Oil 6,435,582 2.26 1,910,000 Tullow Oil 5,017,570 1.77

Oil Equipment, Services & Distribution (0.00%) 3,858,000 1.36 500,000 Wood (John) 3,858,000 1.36

Chemicals (1.32%) 3,548,140 1.25 50,000 Johnson Matthey 1,779,000 0.63 53,000 Victrex 1,769,140 0.62

Mining (2.16%) 677,082 0.24 283,892 Central Asia Metals 677,082 0.24

Construction & Materials (1.76%) 5,707,558 2.01 395,000 Costain 1,647,150 0.58 1,350,000 Ibstock 3,177,900 1.12 86,861 Keller 882,508 0.31

Aerospace & Defence (2.49%) 12,142,042 4.27 780,000 Meggitt 4,417,920 1.55 1,090,000 QinetiQ 3,118,490 1.10 325,000 Rolls-Royce 3,209,050 1.13 87,946 Ultra Electronics 1,396,582 0.49


Industrial Transportation (0.84%) — —

Support Services (5.13%) 23,043,932 8.11 250,000 Aggreko 2,177,500 0.77 500,000 Babcock International 3,615,000 1.27 1,200,000 Capita 1,711,200 0.60 425,000 Essentra 1,721,250 0.61 3,678,179 Learning Technologies 6,087,386 2.14 323,453 PayPoint 2,991,940 1.05 555,513 Smart Metering Systems 3,421,960 1.21 2,084,962 Speedy Hire 1,317,696 0.46

Beverages (0.61%) 1,405,431 0.49 38,964 Fever-Tree Drinks 1,405,431 0.49

Food Producers (1.08%) 4,428,443 1.56 648,571 Tate & Lyle 4,428,443 1.56

Leisure Goods (0.74%) 3,621,550 1.27 1,450,000 Photo-Me 1,803,800 0.63 550,000 Rotork 1,817,750 0.64

Personal Goods (0.00%) 1,169,000 0.41 500,000 PZ Cussons 1,169,000 0.41

Page 61

River and MercantileUK Equity Income FundPortfolio Statement continued Market % of Value Net Holding Investment £ Assets


Pharmaceuticals & Biotechnology (5.08%) 11,572,104 4.07 753,000 GlaxoSmithKline 11,572,104 4.07

Food & Drug Retailers (4.96%) 14,707,840 5.18 900,000 J Sainsbury 2,894,400 1.02 1,800,000 Morrison (Wm.) Supermarkets 4,667,400 1.64 2,980,000 Tesco 7,146,040 2.52

General Retailers (2.85%) 2,941,895 1.03 360,000 B&M European Value Retail 1,392,480 0.49 782,533 Card Factory 1,549,415 0.54

Media (4.26%) 10,212,178 3.60 672,581 Ascential 2,811,389 0.99 875,000 ITV 1,381,188 0.49 570,000 Pearson 5,073,000 1.79 1,028,914 XLMedia 946,601 0.33

Travel & Leisure (1.85%) 6,107,515 2.15 1,183,642 888 Holdings 2,357,815 0.83 450,000 International Consolidated Airlines (UK Regd.) 2,968,200 1.04 150,000 Millennium & Copthorne Hotels 781,500 0.28

Fixed Line Telecommunications (0.98%) 4,590,400 1.62 1,600,000 BT 3,604,800 1.27 800,000 TalkTalk Telecom 985,600 0.35

Mobile Telecommunications (2.43%) 4,935,000 1.74 3,000,000 Vodafone 4,935,000 1.74

Electricity (0.39%) 2,210,756 0.78 400,000 Drax 1,552,800 0.55 6,207,130 OPG Power Ventures 657,956 0.23

Gas, Water & Multiutilities (5.04%) 15,314,215 5.39 4,500,000 Centrica 6,966,000 2.45 1,055,000 National Grid 8,348,215 2.94

Banks (10.12%) 19,090,705 6.72 1,243,500 HSBC 8,328,963 2.93 5,833,779 Lloyds Banking 3,457,681 1.22 650,488 OneSavings Bank 2,640,981 0.93 720,000 Royal Bank of Scotland 1,799,280 0.63 450,000 Standard Chartered 2,863,800 1.01

Non-Life Insurance (3.05%) 7,987,353 2.81 260,000 Beazley 1,484,600 0.52 1,050,000 Direct Line 3,399,900 1.20 1,175,323 Sabre Insurance 3,102,853 1.09

Page 62


River and MercantileUK Equity Income Fund

Life Insurance (4.90%) 15,768,748 5.55 923,480 Aviva 4,520,435 1.59 1,280,000 Legal & General 3,356,160 1.18 620,888 Phoenix 4,197,203 1.48 210,000 Prudential 3,694,950 1.30

Real Estate Investment Trusts (0.63%) 4,418,794 1.56 1,320,000 Primary Health Properties 1,496,880 0.53 2,864,622 Supermarket Income REIT 2,921,914 1.03

Financial Services (0.80%) 7,537,541 2.65 325,000 Charter Court Financial Services 1,087,450 0.38 400,000 Investec 2,157,600 0.76 1,074,677 John Laing 3,357,291 1.18 350,000 TP ICAP 935,200 0.33

Software & Computer Services (1.23%) 758,400 0.27 32,000 Blue Prism 758,400 0.27

CHANNEL ISLANDS (4.15%) 12,810,762 4.51

GUERNSEY (0.51%) 1,522,732 0.54

Real Estate Investment & Services (0.51%) 1,522,732 0.54 1,424,643 Summit Germany 1,522,732 0.54

JERSEY (3.64%) 11,288,030 3.97

Mining (3.64%) 11,288,030 3.97 3,320,000 Centamin 3,524,180 1.24 1,950,000 Highland Gold Mining 2,860,650 1.01 90,000 Randgold Resources 4,903,200 1.72

NORTH AMERICA (6.29%) 15,477,924 5.45

CANADA (1.74%) 6,003,554 2.11

Mining (1.74%) 6,003,554 2.11 550,000 Barrick Gold 4,662,731 1.64 650,000 Kinross Gold 1,340,823 0.47

MEXICO (1.93%) 3,489,250 1.23

Mining (1.93%) 3,489,250 1.23 425,000 Fresnillo 3,489,250 1.23


Pharmaceuticals & Biotechnology (1.04%) 1,308,960 0.46 545,400 MaxCyte 1,308,960 0.46

Software & Computer Services (1.58%) 4,676,160 1.65 40,333 IBM 4,676,160 1.65

Page 63

River and MercantileUK Equity Income FundPortfolio Statement continued Market % of Value Net Holding Investment £ Assets


FRANCE (1.53%) 4,942,104 1.74

Fixed Line Telecommunications (1.53%) 4,942,104 1.74 405,000 Orange 4,942,104 1.74

IRELAND (0.61%) — —

Construction & Material (0.61%) — —

NETHERLANDS (5.96%) 16,640,000 5.85

Oil & Gas Producers (5.16%) 16,640,000 5.85 60,000 Royal Dutch Shell 'A' 1,581,600 0.55 560,000 Royal Dutch Shell 'B' 15,058,400 5.30

Oil Equipment, Services & Distribution (0.80%) — —

SWITZERLAND (1.34%) — —


FORWARD CURRENCY CONTRACTS (0.02%) (35,069) (0.01) Forward Currency Contract 18/10/2018: £2,473,378 UK Sterling 2,473,378 vs Euro 2,772,000 2,980 0.00 Forward Currency Contract 18/10/2018: £2,122,674 UK Sterling 2,122,674 vs Canadian Dollar 3,624,000 (26,507) (0.01) Forward Currency Contract 18/10/2018: £2,294,078 UK Sterling 2,294,078 vs US Dollar 3,004,000 (7,840) 0.00 Forward Currency Contract 18/10/2018: £724,268 UK Sterling 724,268 vs US Dollar 950,000 (3,702) 0.00



Net assets 284,124,366 100.00




Page 64

River and MercantileUK Equity Income FundStatement of Total Returnfor the period ended 30 September 2018




£ £


£ £


Expenses




15,603,206 7,340,930

(1,315,073)

6,025,857 (53,501)

5,972,356

21,575,562 (7,271,918)

14,303,644

5,356,855 6,238,726

(1,335,348)

4,903,378(77,837)

4,825,541

10,182,396 (5,560,062)

4,622,334


£ £


£ £


Dilution adjustmentChange in net assets attributable to Shareholders from investment activities


279,656,184 5,933,188

(15,768,647)(9,835,459)

(3)

14,303,644

284,124,366

281,900,330 23,743,490 (8,260,622)

15,482,868 23

4,622,334

302,005,555

Page 65

River and MercantileUK Equity Income FundBalance Sheet as at 30 September 2018


31 March 2018£ £

ASSETSFixed assets



Total assets

LIABILITIESInvestment liabilitiesCreditors


Total liabilities


277,607,440

1,909,97114,070,611

15,980,582

293,588,022

(38,049)

(7,120,759)(2,304,848)

(9,425,607)

(9,463,656)

284,124,366

274,196,446

3,112,051 8,679,644

11,791,695

285,988,141

—

(5,349,812) (982,145)

(6,331,957)

(6,331,957)

279,656,184

Page 66

River and MercantileUK Equity Income FundFund Facts

Distribution informationA-Class Distribution sharesThe distribution payable on 30 November 2018 is 4.9585p (2017: 4.0404p) per share for distribution shares.

B-Class Distribution sharesThe distribution payable on 30 November 2018 is 13.2980p (2017: 10.2232p) per share for distribution shares.

Performance records

Net asset values


£


p

Sharesin issue

31 March 2016A-Class Distribution sharesB-Class Distribution shares31 March 2017A-Class Distribution sharesB-Class Distribution shares31 March 2018A-Class Distribution sharesB-Class Distribution shares30 September 2018A-Class Distribution sharesB-Class Distribution shares

4,868,187238,303,981

5,538,583276,361,747

5,485,865274,170,319

4,799,653 279,324,713

172.54455.05

197.68525.33

188.58504.94

197.39530.62

2,821,54752,368,597

2,801,86252,606,803

2,909,02954,297,362

2,431,619 52,640,775

Page 67

River and MercantileUK Equity Income FundFund Facts continued

Operating Charges













1 2 3 4 5 6 7

..........................................................................

30 September 2018

A-Class Distribution sharesB-Class Distribution shares

1.63%0.88%

Page 68

River and MercantileUK Equity Income FundSummary of Largest Portfolio ChangesThe table below shows the top ten purchases and sales for the period.

Purchases £

Meggitt 4,201,813BP 3,750,055BT 3,655,941Wood (John) 3,640,690Randgold Resources 3,175,971Sabre Insurance 3,063,976Standard Chartered 3,062,433Tate & Lyle 2,374,594Photo-Me 2,333,274ITV 2,245,998

Sales £

BP 6,724,410HSBC 4,597,944Rio Tinto 4,582,286Barclays 4,219,518AstraZeneca 3,983,283ITV 2,998,868Blue Prism 2,946,759HomeServe 2,875,732Standard Chartered 2,831,266J Sainsbury 2,694,127

Page 69

River and MercantileGlobal Recovery Fund (formerly World Recovery Fund)Investment Objective and PolicyThe investment objective of the sub-fund is to achieve capital growth through investing in a portfolio which will primarilyconsist of Global equities that the Investment Manager believes will benefit from a recovery in company profitabilityover the medium and longer term.

The sub-fund will not be restricted by reference to a benchmark, territory, sector constraints or company size.

Investment Manager’s ReviewPerformance reviewFor the six month period to 30 September 2018, the Z-Class Accumulation shares of the River and Mercantile GlobalRecovery Fund (which was renamed from the River and Mercantile World Recovery Fund on 1 July 2018) returned 4.1%compared to the benchmark MSCI All Country World Index return of 12.8%.

Market backgroundThe six month period to 30 September 2018 witnessed elevated volatility across the major asset classes with news flowdominated by geopolitics, most notably the constantly evolving headlines relating to the trade war initiated by the US withits key trading partners contrasting with a landmark US-North Korean nuclear disarmament agreement. Positions on US-China trade relations hardened with the imposition of tariffs on $250 billion of Chinese goods by the White House. Chinasought to support the economy via looser fiscal and monetary policy; the renminbi weakened by around 10% since thestart of the period. The major story of the summer saw concerns flaring in emerging markets (EM), especially in weakereconomies such as Turkey and Argentina, over the impact of reduced US dollar liquidity. Many of the more dollar-denominated debt-exposed emerging economies have made significant progress since the ‘Taper Tantrum’ of 2013 so itwould be unfair to tar all EMs with the same brush and imply that contagion is inevitable; however, while sanguine aboutthese risks today, we remain cognisant that market action does not always follow the rational or fair path. In the UK, PrimeMinister Theresa May came under renewed pressure from all sides after her ‘Chequers’ deal for the UK’s exit from Europewas first seen to be reneging on original promises by Eurosceptic members of her Conservative party and was thenrejected by fellow EU leaders at a Salzburg summit. Elsewhere in Europe, relations with the new Italian coalitiongovernment reached a loggerhead with the announcement that they intend to run a higher than anticipated budget deficitof 2.4% of GDP; Italian bond yields widened on the news. Global growth has remained robust against this background;current forecasts continue to point to solid global real GDP growth of 3.8% in 2018 and 3.6% in 2019, while corporateearnings are growing at 16% year on year (11% in the UK). Lead indicators are still in expansionary territory and in theUS in particular business confidence is back close to exuberant peaks.

Performance and activityWe are not well positioned for the current type of market: narrow, capital seeking certainty at any price, pro expensivegrowth stocks and anti-value stocks. Value, recovery, smaller companies, regional mix and currently all worked againstus – a perfect storm. Detractors from performance included our country allocation (underweight US equities andoverweight emerging market in particular) and our underweight positions in Apple and Amazon in what is a pro highlypriced growth market. Positive individual stock picks contributed to performance (Filtronic, Endo International, JuventusF.C.), as did our exposure to oil and gas stocks (Faroe Petroleum, Chesapeake Energy, Tullow Oil).

Major purchases during the period focused on high scoring stocks and PVT anomalies and, in many cases, recyclingstrong performers into laggards as we would anticipate a reversal in fortunes when value returns. The weakness inemerging markets created some amazing top-up opportunities and also some new ideas as those stocks came undermore selling pressure and were impacted by very weak sentiment, the strong US dollar and trade war dislocation(Beijing Capital International Airport, Uni-President China and the iShares MSCI China A UCITS ETF, which gives usaccess to a very depressed market). We also started to build positions in a number of deeply out of favour Germanlisted large cap companies (Bayer, Volkswagen) on deeply discounted valuations due to short-term issues. Salesfocused on taking profits in a number of strong performers (Ocado, Schibsted, Heijmans), M&A (Web.com, HispaniaActivos Inmobiliarios) and selling some stocks where the thesis was not playing out (Novo Nordisk, TripAdvisor).

OutlookWe are high conviction regarding both the absolute and relative valuation and profit potential of the stocks in thisportfolio. We keep putting money into very cheap PVT stocks, some of which are new ideas and some existing ideas.“Mr. Market” is focused on paying higher and higher prices for the already fully delivering expensive growth stocks;we are paying lower prices for everything else that has been left behind (for whatever reason) in the stampede of hotcapital into ‘guaranteed’ growth. There are so many opportunities to create medium term wealth. Our recent short-term returns have been modest ones, but we remain very excited about the medium term opportunities

Page 70

River and MercantileGlobal Recovery Fund (formerly World Recovery Fund)Portfolio Statement as at 30 September 2018 Market % of Value Net Holding Investment £ Assets

UNITED KINGDOM (6.58%) 33,306,081 7.23

Oil & Gas Producers (1.35%) 6,953,061 1.51 5,000,000 Amerisur Resources 593,000 0.13 592,525 Cairn Energy 1,374,658 0.30 1,193,375 Faroe Petroleum 1,983,389 0.43 3,044,763 Ophir Energy 1,152,443 0.25 704,062 Tullow Oil 1,849,571 0.40

Oil Equipment, Services & Distribution (0.33%) 2,477,840 0.54 332,814 Noble 1,791,614 0.39 60,525 Subsea 7 686,226 0.15

Construction & Materials (0.42%) 2,511,706 0.54 145,809 Anglo American 2,511,706 0.54

Aerospace & Defense (0.32%) 1,690,281 0.37 786,177 Chemring 1,690,281 0.37

Industrial Engineering (0.17%) 840,484 0.18 636,730 Northbridge 840,484 0.18

Consumer Services (0.10%) 315,665 0.07 1,578,327 Rangers International Football 315,665 0.07

Health Care Equipment & Services (0.20%) 361,680 0.08 164,400 Immunodiagnostic Systems 361,680 0.08

Food & Drug Retailers (0.35%) 856,914 0.19 95,361 Ocado 856,914 0.19

General Retailers (0.02%) 157,734 0.03 1,460,500 Koovs 157,734 0.03

Media (0.02%) — —

Banks (1.43%) 5,711,216 1.24 186,050 HSBC 1,246,163 0.27 3,102,470 Lloyds Banking 1,838,834 0.40 386,691 Royal Bank of Scotland 966,341 0.21 260,823 Standard Chartered 1,659,878 0.36

Real Estate Investment & Services (0.21%) 946,653 0.21 413,025 Purplebricks 946,653 0.21

Equity Investment Instruments (0.21%) 1,522,014 0.33 318,413 Gresham House 1,522,014 0.33

Financial Services (0.19%) 866,960 0.19 324,461 TP ICAP 866,960 0.19

Software & Computer Services (1.11%) 5,981,996 1.29 4,528,154 Earthport 366,780 0.08 2,251,877 Eckoh 844,454 0.18 324,568 IMImobile 1,129,497 0.24 834,194 RhythmOne 1,851,911 0.40 378,299 SDL 1,789,354 0.39

Page 71

River and MercantileGlobal Recovery Fund (formerly World Recovery Fund)Portfolio Statement continued Market % of Value Net Holding Investment £ Assets

Technology Hardware & Equipment (0.15%) 2,111,877 0.46 7,542,417 Filtronic 2,111,877 0.46

NORTH AMERICA (13.82%) 76,026,261 16.50

BRITISH VIRGIN ISLANDS (0.34%) 1,531,342 0.33

Electronic & Electrical Equipment (0.34%) 1,531,342 0.33 93,490 Hollysys Automation Technologies 1,531,342 0.33

CANADA (0.21%) 1,659,923 0.36

Oil & Gas Producers (0.21%) 1,659,923 0.36 116,418 Enerplus 1,098,843 0.24 41,700 Husky Energy 561,080 0.12

CAYMAN ISLANDS (0.60%) 2,250,103 0.49

Media (0.34%) 1,295,477 0.28 652,265 Fang ADR 1,295,477 0.28

Life Insurance (0.26%) 954,626 0.21 100,800 Greenlight Capital 954,626 0.21

MEXICO (0.86%) 6,396,971 1.39

Construction & Materials (0.18%) 1,643,005 0.36 304,774 Cemex ADR 1,643,005 0.36

Industrial Transportation (0.15%) 1,032,059 0.22 1,703,897 Grupo Traxion SAB de CV 1,032,059 0.22

Household Goods & Home Construction (0.23%) 997,662 0.22 3,631,013 Consorcio 997,662 0.22

Pharmaceuticals & Biotechnology (0.10%) 757,059 0.16 1,130,480 Genomma Lab Internacional 757,059 0.16

Banks (0.00%) 978,013 0.21 1,260,500 Gentera 978,013 0.21

Real Estate Investment & Services (0.20%) 989,173 0.22 838,401 Corporación Inmobiliaria Vesta 989,173 0.22


Oil & Gas Producers (2.37%) 15,186,294 3.30 51,717 Apache 1,890,533 0.41 61,000 Baker Hughes GE 1,582,010 0.34 398,046 Chesapeake Energy 1,370,520 0.30 39,772 Devon Energy 1,218,123 0.27 16,059 Exxon Mobil 1,046,997 0.23 83,485 Marathon Oil 1,490,381 0.32 77,500 ProPetro 980,005 0.21 41,600 Range Resources 541,673 0.12 371,344 Southwestern Energy 1,455,134 0.32 34,610 Toyo Tanso 786,269 0.17 264,049 Transocean (Regd.) 2,824,649 0.61

Page 72


Oil Equipment, Services & Distribution (0.00%) 485,397 0.11 14,700 National Oilwell Varco 485,397 0.11

Chemicals (0.23%) 1,303,755 0.28 52,361 Mosaic 1,303,755 0.28

Industrial Metals & Mining (0.21%) 780,242 0.17 73,147 Freeport McMoRan 'B' 780,242 0.17

Mining (0.00%) 953,785 0.21 803,850 Alacer Gold 953,785 0.21

Construction & Materials (0.05%) — —

General Industrials (0.04%) 820,658 0.18 94,790 General Electric 820,658 0.18

Consumer Goods (0.31%) 1,585,602 0.34 516,926 Zynga 1,585,602 0.34

Consumer Services (0.19%) 805,155 0.17 1,905,565 Selcuk Ecza Deposu 805,155 0.17

Electronic & Electrical Equipment (0.54%) 2,240,253 0.49 96,690 Rubicon Technology 663,606 0.15 200,588 Veeco Instruments 1,576,647 0.34

Industrial Engineering (0.65%) 3,382,772 0.73 4,320 Caterpillar 505,195 0.11 757,257 Somero Enterprises 2,877,577 0.62

Support Services (0.25%) 2,042,183 0.44 53,730 First Data 1,007,399 0.22 23,000 Stericycle 1,034,784 0.22

Household Goods & Home Construction (0.18%) — —

Personal Goods (0.11%) 632,829 0.14 6,000 Ralph Lauren 632,829 0.14

Pharmaceuticals & Biotechnology (0.42%) 2,475,365 0.54 87,093 Endo International 1,123,350 0.25 48,172 Mylan 1,352,015 0.29

Food & Drug Retailers (0.67%) 2,909,544 0.63 1,144,360 Blue Apron 1,500,599 0.32 13,851 McKesson 1,408,945 0.31

General Retailers (0.96%) 3,558,513 0.77 33,660 eBay 852,051 0.18 28,075 Etsy 1,105,734 0.24 23,764 PayPal 1,600,728 0.35

Media (0.16%) 2,917,609 0.63 271,216 Groupon 782,004 0.17 15,400 Spotify Technology 2,135,605 0.46

Travel & Leisure (0.15%) — —

Page 73


Mobile Telecommunications (0.00%) 520,847 0.11 62,600 ORBCOMM 520,847 0.11

Financials (0.29%) 1,021,319 0.22 26,814 Voya Financial 1,021,319 0.22

Banks (2.75%) 12,651,296 2.75 110,553 Bank of America 2,497,520 0.54 55,325 Citigroup 3,044,031 0.66 62,964 Citizens Financial 1,861,809 0.41 23,012 JPMorgan Chase 1,991,062 0.43 50,914 Wells Fargo 2,052,099 0.45 31,334 Zions Bancorporation 1,204,775 0.26


Equity Investment Instruments (0.00%) 240,150 0.05 4,600 Altaba 240,150 0.05

Software & Computer Services (0.90%) 6,358,160 1.38 98,100 Dropbox 2,018,345 0.44 6,350 IBM 736,211 0.16 16,225 Microsoft 1,424,112 0.31 135,900 Snap 882,691 0.19 59,420 Twitter 1,296,801 0.28

Technology Hardware & Equipment (0.19%) 1,316,194 0.29 90,862 3D Systems 1,316,194 0.29

SOUTH AMERICA (9.45%) 35,894,109 7.79

ARGENTINA (0.56%) 3,807,097 0.82

Construction & Materials (0.00%) 757,699 0.16 111,900 Loma Negra Cia Industrial Argentina ADR 757,699 0.16

Industrial Transportation (0.35%) 1,386,667 0.30 213,241 America Airports 1,386,667 0.30

General Retailers (0.21%) 1,662,731 0.36 6,370 Mercadolibre 1,662,731 0.36

BRAZIL (6.58%) 22,652,695 4.92

Oil & Gas Producers (0.90%) 3,247,079 0.70 471,957 Petroleo Brasileiro pref. 1,911,300 0.41 527,800 QGEP Participacoes 1,335,779 0.29


Construction & Materials (0.15%) 497,159 0.11 782,200 Eucatex SA Industria e Comercio pref. 497,159 0.11

Industrial Engineering (0.69%) 2,541,999 0.55 1,082,900 Industrias Romi 1,382,802 0.30 1,775,532 Marcopolo pref. 1,159,197 0.25

Page 74


Industrial Transportation (0.56%) 2,685,912 0.59 1,330,892 Ecorodovias Infraestrutura e Logistica 1,827,253 0.40 109,600 Wilson Sons BDR 858,659 0.19

Support Services (0.25%) 872,182 0.19 361,345 Valid Solucoes 872,182 0.19

Automobiles & Parts (0.45%) — —

Household Goods & Home Construction (0.77%) 2,729,916 0.59 1,198,340 Direcional Engenharia 1,571,631 0.34 539,540 Gafisa 1,158,285 0.25

Personal Goods (0.21%) 729,948 0.16 2,276,280 Technos 729,948 0.16

Food & Drug Retailers (0.23%) 1,015,201 0.22 1,136,971 Profarma Distribuidora de Produtos Farmaceuticos 1,015,201 0.22

General Retailers (0.71%) 2,893,719 0.63 163,792 B2W Cia Global Do Varejo 866,177 0.19 1,442,544 Marisa Lojas 1,105,228 0.24 104,417 Smiles Fidelidade 922,314 0.20

Travel & Leisure (0.21%) 622,684 0.14 511,480 IMC 622,684 0.14

Fixed Line Telecommunications (0.14%) — —

Electricity (0.18%) 958,926 0.21 525,668 AES Tiete Energia 958,926 0.21

Non-Life Insurance (0.22%) 1,204,355 0.26 382,671 Qualicorp 1,204,355 0.26

Real Estate Investment & Services (0.12%) 461,469 0.10 640,857 Brasil Brokers Participacoes 461,469 0.10

Financials (0.17%) 700,568 0.15 379,250 BR Malls Participacoes 700,568 0.15

Financial Services (0.34%) 1,491,578 0.32 274,100 Banco BTG Pactual 1,121,085 0.24 865,217 Tarpon Investimentos 370,493 0.08

CHILE (0.82%) 1,966,771 0.43

Beverages (0.56%) 1,021,491 0.22 668,165 Vina Concha y Toro 1,021,491 0.22

Financial Services (0.26%) 945,280 0.21 71,568 Inversiones La Construccion 945,280 0.21

COLOMBIA (1.26%) 6,122,322 1.33

Construction & Materials (0.48%) 1,689,713 0.37 169,400 Argos 713,082 0.16 700,323 CEMEX LatAm 976,631 0.21

Page 75


Food Producers (0.20%) 816,198 0.18 132,683 Nutresa 816,198 0.18

Travel & Leisure (0.14%) 1,061,467 0.23 246,300 Avianca ADR 1,061,467 0.23

Banks (0.10%) 460,081 0.10 56,200 Bancolombia 460,081 0.10

Financial Services (0.34%) 2,094,863 0.45 252,224 Bolsa de Valores de Colombia 771,217 0.17 147,453 Gpo De Inversiones 1,323,646 0.28

URUGUAY (0.23%) 1,345,224 0.29

Pharmaceuticals & Biotechnology (0.00%) 177,985 0.04 103,449 Biotoscana 177,985 0.04

Travel & Leisure (0.23%) 1,167,239 0.25 243,542 Arcos Dorados 'A' 1,167,239 0.25


AUSTRIA (0.52%) 3,145,017 0.68

Construction & Materials (0.00%) 506,554 0.11 26,600 Wienerberger 506,554 0.11

Banks (0.26%) 1,041,988 0.22 46,925 Raiffeisen International Bank 1,041,988 0.22

Non-Life Insurance (0.26%) 1,045,406 0.23 47,633 Vienna Insurance 1,045,406 0.23

Technology Hardware & Equipment (0.00%) 551,069 0.12 12,800 AMS 551,069 0.12

BELGIUM (0.22%) 1,132,215 0.25

General Retailers (0.22%) 1,132,215 0.25 33,897 D'ieteren 1,132,215 0.25

DENMARK (0.38%) 1,269,406 0.28

Industrial Transportation (0.16%) 1,269,406 0.28 1,260 AP Moeller-Maersk 'A' 1,269,406 0.28


FINLAND (0.22%) 893,805 0.19

Software & Computer Services (0.22%) 893,805 0.19 157,779 Alma Media 893,805 0.19

FRANCE (5.72%) 21,928,542 4.76

Oil & Gas Producers (0.17%) 1,063,534 0.23 218,287 Etablissements Maurel et Prom 1,063,534 0.23

Page 76


Oil Equipment, Services & Distribution (0.05%) 2,207,704 0.48 1,042,300 CGG 2,207,704 0.48

Construction & Materials (1.03%) 2,461,679 0.54 42,550 Herige 1,106,671 0.24 29,199 Vicat 1,355,008 0.30

General Industrials (0.17%) 698,108 0.15 11,698 Eurazeo 698,108 0.15

Beverages (0.16%) — —


Food & Drug Retailers (0.35%) 1,488,340 0.33 27,920 Carrefour 405,732 0.09 52,503 Peugeot 1,082,608 0.24

Media (1.38%) 5,627,640 1.22 75,663 Criteo 1,331,014 0.29 53,993 Eutelsat Communications 969,056 0.21 2,660,973 Solocal 2,365,415 0.51 49,551 Vivendi 962,155 0.21


Banks (0.78%) 3,789,670 0.82 50,414 BNP Paribas 2,357,922 0.51 43,680 Société Générale 1,431,748 0.31

Real Estate Investment Trusts (0.15%) 684,128 0.15 8,630 Convivio 684,128 0.15

Financial Services (0.17%) 757,155 0.16 32,948 Tikehau Capital SCA 757,155 0.16

Software & Computer Services (0.79%) 3,150,584 0.68 128,158 Cegedim 3,150,584 0.68

Technology Hardware & Equipment (0.19%) — —

GERMANY (1.40%) 11,887,366 2.58

Chemicals (0.00%) 1,174,433 0.25 17,220 Bayer (Regd.) 1,174,433 0.25

Construction & Materials (0.00%) 704,560 0.15 11,750 HeidelbergCement 704,560 0.15

Automobiles & Parts (0.00%) 3,984,033 0.87 6,220 BMW 430,419 0.10 8,320 Continental 1,112,347 0.24 17,700 Porsche pref. (non-voting) 914,403 0.20 11,300 Volkswagen pref. (non-voting) 1,526,864 0.33

Household Goods & Home Construction (0.27%) 1,784,994 0.39 13,369 Zooplus 1,784,994 0.39

Page 77


Travel & Leisure (0.23%) 1,446,860 0.31 76,767 Deutsche Lufthansa 1,446,860 0.31

Gas, Water & Multiutilities (0.23%) 1,090,721 0.24 57,626 RWE 1,090,721 0.24

Banks (0.17%) — —

Financial Services (0.28%) 980,057 0.21 40,843 Rocket Internet 980,057 0.21

Technology Hardware & Equipment (0.22%) 721,708 0.16 92,686 Aixtron 721,708 0.16

GREECE (2.96%) 10,919,677 2.37

Construction & Materials (0.56%) 2,226,558 0.48 795,446 Ellaktor 1,011,755 0.22 63,881 Titan Cement 1,214,803 0.26

Industrial Transportation (0.49%) 1,328,304 0.29 90,381 Piraeus Port Authority 1,328,304 0.29

Household Goods & Home Construction (0.37%) 1,529,278 0.33 332,093 Fourlis 1,529,278 0.33

Leisure Goods (0.27%) 917,745 0.20 81,904 Jumbo 917,745 0.20

Personal Goods (0.24%) 1,137,777 0.25 172,154 Sarantis 1,137,777 0.25

Banks (0.57%) 1,895,879 0.41 1,028,669 Alpha Bank 1,136,145 0.25 1,322,409 Eurobank Ergasias 759,734 0.16

Real Estate Investment Trusts (0.27%) 1,071,980 0.23 151,195 Grivalia Properties REIC 1,071,980 0.23

Financial Services (0.19%) 812,156 0.18 209,611 Hellenic Exchange 812,156 0.18

IRELAND (0.96%) 4,200,834 0.91

Industrial Engineering (0.28%) 1,298,039 0.28 927,171 Mincon 1,298,039 0.28

Support Services (0.18%) 843,001 0.18 31,418 Johnson Controls International 843,001 0.18

Household Goods & Home Construction (0.22%) 886,742 0.19 677,242 Cairn Homes 886,742 0.19

Banks (0.28%) 1,173,052 0.26 198,192 Bank of Ireland 1,173,052 0.26

Page 78


ITALY (6.67%) 29,416,344 6.37

Oil & Gas Producers (0.62%) 4,048,180 0.88 118,876 Eni 1,724,004 0.37 491,774 Saipem 2,324,176 0.51

General Industrials (0.36%) 1,766,657 0.38 469,561 Anima 1,766,657 0.38

Electronic & Electrical Equipment (0.21%) 870,812 0.19 335,966 Nice 870,812 0.19

Industrial Engineering (0.27%) — —



Personal Goods (0.69%) 3,515,489 0.76 512,670 Prada 1,884,068 0.41 40,500 Salvatore Ferragamo Italia 744,202 0.16 16,969 Tod's 887,219 0.19

General Retailers (0.18%) 1,200,963 0.26 145,215 Cerved Information Solutions 1,200,963 0.26

Media (0.38%) 1,810,217 0.39 423,997 ePrice 659,391 0.14 480,488 Mediaset 1,150,826 0.25

Travel & Leisure (0.34%) 986,648 0.21 755,600 Juventus F.C. 986,648 0.21

Banks (1.76%) 7,484,294 1.62 699,581 Banco BPM 1,322,892 0.29 171,362 Credito Emiliano 863,907 0.19 109,740 FinecoBank 1,125,551 0.24 634,185 Intesa Sanpaolo 1,243,290 0.27 188,831 Mediobanca 1,446,802 0.31 128,370 UniCredit 1,481,852 0.32

Non-Life Insurance (0.64%) 2,830,612 0.62 106,221 Assicurazioni Generali 1,407,355 0.31 416,660 Unipol Gruppo Finanziario 1,423,257 0.31

Real Estate Investment & Services (0.16%) 838,814 0.18 142,450 Immobiliare Grande Distribuzione SIIQ 838,814 0.18

Real Estate Investment Trusts (0.02%) — —

Financial Services (0.68%) 2,863,230 0.62 317,255 Banca Farmafactoring SpA 1,458,124 0.31 91,351 Gruppo MutuiOnline 1,370,224 0.30 6,025 Tecnoinvestimenti Spa 34,882 0.01

Software & Computer Services (0.00%) 1,200,428 0.26 30,630 Wiit SpA 1,200,428 0.26

Page 79


LUXEMBOURG (0.31%) 1,429,106 0.31

Industrial Metals & Mining (0.31%) 1,429,106 0.31 111,189 Tenaris 1,429,106 0.31

NETHERLANDS (3.10%) 13,878,121 3.01


Oil Equipment, Services & Distribution (0.13%) 1,476,862 0.32 108,300 SBM Offshore 1,476,862 0.32

Construction & Materials (0.60%) 2,106,437 0.46 192,268 Heijmans 2,106,437 0.46

Electronic & Electrical Equipment (0.00%) 837,713 0.18 19,800 TKH 837,713 0.18

Food & Drug Retailers (0.19%) 1,336,965 0.29 34,506 Shop Apotheke Europe 1,336,965 0.29

Mobile Telecommunications (0.16%) 822,694 0.18 369,943 VEON ADR 822,694 0.18

Banks (0.88%) 4,032,196 0.87 189,208 ING 1,884,159 0.41 106,708 Van Lanschot 2,148,037 0.46

Real Estate Investment Trusts (0.19%) 846,935 0.18 27,601 NSI 846,935 0.18

Financial Services (0.46%) 1,314,592 0.29 25,561 EXOR 1,314,592 0.29

Technology Hardware & Equipment (0.26%) 1,103,727 0.24 177,022 Tomtom 1,103,727 0.24

NORWAY (0.70%) 2,241,815 0.49

Oil Equipment, Services & Distribution (0.40%) 1,340,210 0.29 388,747 Petroleum Geo-Services 1,340,210 0.29

Media (0.30%) 901,605 0.20 31,340 Schibsted 901,605 0.20

POLAND (0.21%) 887,673 0.19

Software & Computer Services (0.21%) 887,673 0.19 85,000 Wirtualna Polska 887,673 0.19

PORTUGAL (0.93%) 4,091,901 0.89

Food & Drug Retailers (0.20%) 895,146 0.19 1,137,499 Sonae 895,146 0.19

Travel & Leisure (0.55%) 2,422,465 0.53 292,441 Ibersol 2,422,465 0.53

Page 80


Banks (0.00%) — — 1,853,080 Banco Espirito Santo* — —

Software & Computer Services (0.18%) 774,290 0.17 328,036 Novabase SGPS 774,290 0.17

RUSSIA (1.25%) 5,142,883 1.12

Banks (0.31%) 1,009,716 0.22 104,336 Sberbank of Russia ADR 1,009,716 0.22

Financial Services (0.36%) 1,363,885 0.30 135,150 QIWI ADR 1,363,885 0.30

Software & Computer Services (0.58%) 2,769,282 0.60 76,096 Mail.ru GDR 1,559,208 0.34 47,978 Yandex 'A' 1,210,074 0.26

SPAIN (3.48%) 12,636,308 2.74

Oil & Gas Producers (0.15%) 780,505 0.17 51,050 Repsol 780,505 0.17


Support Services (0.73%) 3,703,733 0.80 223,019 Applus Services 2,435,391 0.53 271,232 Global Dominion Access 1,268,342 0.27

Travel & Leisure (0.22%) 895,638 0.19 87,590 Parques Reunidos Servicios Centrales 895,638 0.19

Banks (0.60%) 902,688 0.20 127,767 Bankinter 902,688 0.20

Real Estate Investment & Services (0.46%) 1,928,409 0.42 123,060 Inmobiliaria Colonial 980,468 0.21 67,960 Neinor Homes 947,941 0.21

Financial Services (0.85%) 2,636,119 0.57 38,189 Bolsas y Mercados Españoles 946,987 0.21 24,137 Corporacion Financiera Alba 1,030,880 0.22 391,430 Prosegur Cash 658,252 0.14

Software & Computer Services (0.21%) 816,915 0.18 92,829 Indra Sistemas 816,915 0.18

SWEDEN (0.88%) 4,932,538 1.07

Industrial Engineering (0.44%) 1,876,368 0.41 51,046 Modern Times 'B' 1,439,310 0.31 130,300 Munters 437,058 0.10

Household Goods & Home Construction (0.00%) 236,910 0.05 14,000 Electrolux 'B' 236,910 0.05

Health Care Equipment & Services (0.00%) 525,134 0.11 59,300 Getinge 525,134 0.11

Page 81


Travel & Leisure (0.00%) — — 16,136,126 Trustbuddy* — —

Equity Investment Instruments (0.22%) 1,180,838 0.26 1,397,110 Fingerprint Cards 1,180,838 0.26

Software & Computer Services (0.22%) 1,113,288 0.24 68,603 KNOW IT AB 1,113,288 0.24

SWITZERLAND (1.08%) 5,427,519 1.18

Electronic & Electrical Equipment (0.25%) 1,337,671 0.29 26,034 Landis+Gyr 1,337,671 0.29

Industrial Engineering (0.29%) 1,059,835 0.23 1,942,472 Meyer Burger Technology 1,059,835 0.23

Banks (0.54%) 3,030,013 0.66 174,601 Credit Suisse (Regd.) 2,021,111 0.44 82,939 UBS 1,008,902 0.22

MIDDLE EAST (0.71%) 4,794,782 1.04

ISRAEL (0.30%) 1,223,118 0.26

Chemicals (0.30%) 1,223,118 0.26 264,512 Israel Chemicals 1,223,118 0.26

TURKEY (0.00%) 1,686,626 0.37

Beverages (0.00%) 861,044 0.19 199,800 Coca-Cola Icecek 861,044 0.19

Financial Services (0.00%) 825,582 0.18 379,100 KOC 825,582 0.18

UNITED ARAB EMIRATES (0.41%) 1,885,038 0.41

Oil & Gas Producers (0.41%) 1,885,038 0.41 538,110 Borr Drilling 1,885,038 0.41

ASIA (36.47%) 168,089,617 36.48

CHINA (9.97%) 52,301,227 11.35

Oil & Gas Producers (0.32%) 2,464,354 0.54 1,006,100 CNOOC 1,528,271 0.33 1,048,500 Kunlun Energy 936,083 0.21

Oil Equipment, Services & Distribution (0.00%) 249,342 0.05 301,100 China Oilfield Services 249,342 0.05

Alternative Energy (0.29%) 1,501,579 0.33 2,328,600 China Longyuan Power 1,501,579 0.33

Chemicals (0.41%) 2,532,231 0.55 5,001,200 China Sanjiang Fine Chemicals 1,024,349 0.22 4,038,452 Fufeng 1,507,882 0.33

Page 82


Construction & Materials (0.42%) 620,285 0.13 2,637,260 Xinyi Solar 620,285 0.13

Industrial Engineering (0.73%) 2,584,181 0.56 2,308,300 China Lesso 1,002,129 0.22 748,000 Qingling Motors 'H' 157,604 0.03 325,900 Zhuzhou CRRC Times Electric 'H' 1,424,448 0.31

Industrial Transportation (0.47%) 3,835,820 0.83 1,470,000 Beijing Capital International Airport 1,365,693 0.30 1,703,638 COSCO Pacific 1,435,831 0.31 1,621,200 Zhejiang Expressway 'H' 1,034,296 0.22

Automobiles & Parts (0.00%) 764,644 0.17 500,800 Geely Automobiles 764,644 0.17

Beverages (0.28%) 2,392,909 0.52 255,670 Tsingtao Brewery 920,798 0.20 1,803,300 Uni-President China 1,472,111 0.32

Food Producers (0.89%) 3,217,085 0.70 372,070 China Mengniu Dairy 948,037 0.21 909,150 Tingyi (Cayman Islands) 1,281,215 0.28 1,531,900 Want Want China 987,833 0.21


Health Care Equipment & Services (0.00%) 474,927 0.10 681,600 China Resources Phoenix Healthcare 474,927 0.10


Financials (0.64%) 3,247,634 0.71 225,060 China Pacific Insurance 666,090 0.15 2,202,360 Haitong Securities 1,536,724 0.33 134,190 Ping An Insurance 1,044,820 0.23

General Retailers (0.90%) 5,455,268 1.18 15,777 Alibaba ADS 1,992,980 0.43 1,142,230 China New Higher Education 601,112 0.13 2,163,000 China Yongda Auto 1,488,062 0.32 68,632 JD.com ADR 1,373,114 0.30

Media (0.28%) 1,561,558 0.34 75,600 BitAuto ADS 1,333,384 0.29 11,000 iQIYI ADR 228,174 0.05

Travel & Leisure (0.28%) 1,130,397 0.25 41,997 Yum China 1,130,397 0.25

Banks (1.09%) 3,885,628 0.84 4,313,270 Bank of China 'H' 1,466,775 0.32 446,730 China Merchants Bank ‘H’ 1,390,005 0.30 2,452,900 Chongqing Rural Commercial Bank 1,028,848 0.22

Life Insurance (0.23%) 1,069,513 0.23 613,800 China Life Insurance 1,069,513 0.23

Page 83


Real Estate Investment & Services (0.16%) 1,577,538 0.34 386,101 China Overseas Land & Investment 927,031 0.20 1,056,976 Greentown Service 650,507 0.14

Financial Services (0.20%) 1,538,317 0.33 198,940 Qudian ADR 796,340 0.17 52,500 Yirendai ADR 741,977 0.16

Non-Equity Investment Instruments (0.00%) 1,607,782 0.35 568,500 iShares MSCI China A UCITS ETF USD Acc 1,607,782 0.35

Software & Computer Services (1.75%) 10,136,426 2.20 17,726 Baidu ADR 3,108,320 0.67 1,726,878 Chinasoft International 881,712 0.19 17,200 Momo ADR 577,576 0.13 157,400 Ping An Healthcare and Technology 805,969 0.18 30,680 SINA 1,633,694 0.35 82,283 Sohu.com ADR 1,254,389 0.27 59,190 Tencent 1,874,766 0.41

Technology Hardware & Equipment (0.00%) 453,809 0.10 7,900 YY ADS 453,809 0.10

HONG KONG (3.33%) 13,663,394 2.96

Chemicals (0.15%) — —


Industrial Transportation (0.20%) 676,653 0.14 3,601,590 Hutchison Port Holdings Trust 676,653 0.14

Food Producers (0.10%) 1,464,834 0.32 1,469,100 First Pacific 555,733 0.12 1,689,710 WH 909,101 0.20

Personal Goods (0.59%) 2,543,013 0.55 5,071,160 Li & Fung 864,737 0.19 2,260,040 Texwinca 682,173 0.15 1,734,520 Wing Tai Properties 996,103 0.21

Food & Drug Retailers (0.24%) 813,696 0.18 117,900 Dairy Farm International 813,696 0.18

General Retailers (0.24%) 784,613 0.17 995,800 Chow Tai Fook Jewellery 784,613 0.17

Travel & Leisure (1.11%) 3,160,397 0.69 101,198 IMAX China 197,555 0.04 443,820 Melco International Development 680,254 0.15 992,700 Shangri-La Asia 1,132,396 0.25 1,625,570 SJM 1,150,192 0.25

Financial Services (0.38%) 1,994,026 0.43 3,271,244 Value Partners 1,994,026 0.43

Page 84


Software & Computer Services (0.32%) 1,494,289 0.32 14,118,331 Hi Sun Technology 1,494,289 0.32

INDIA (0.83%) 2,608,395 0.57

Consumer Services (0.39%) 1,357,144 0.30 64,473 Makemytrip 1,357,144 0.30

Banks (0.44%) 1,251,251 0.27 17,340 HDFC Bank ADS 1,251,251 0.27

INDONESIA (1.16%) 5,107,762 1.11

Construction & Materials (0.34%) 1,811,750 0.39 3,565,212 Semen Indonesia 1,811,750 0.39

Support Services (0.19%) 785,011 0.17 28,513,200 Mega Manunggal Property 785,011 0.17

Food Producers (0.24%) 1,003,663 0.22 18,227,555 Nippon Indosari Corpindo 1,003,663 0.22

Technology Hardware & Equipment (0.39%) 1,507,338 0.33 3,588,987 Link Net Tbk PT 775,706 0.17 2,538,804 Tower Bersama Infrastructure 731,632 0.16

JAPAN (10.97%) 49,965,012 10.84

Chemicals (0.14%) 1,827,822 0.40 8,200 Nitto Denko 471,282 0.10 17,671 Okamoto Industries 739,669 0.16 29,570 UBE Industries 616,871 0.14

Industrial Metals & Mining (0.14%) 715,546 0.16 29,400 Dowa Mining 715,546 0.16

Construction & Materials (0.22%) 1,185,660 0.26 49,401 Taiheiyo Cement 1,185,660 0.26

Consumer Services (0.36%) 1,824,513 0.40 310,380 Rakuten 1,824,513 0.40

Industrial Transportation (0.51%) 786,047 0.17 67,810 Seino 786,047 0.17

Support Services (0.18%) 822,261 0.18 688,100 Nippon Parking 822,261 0.18

Automobiles & Parts (0.26%) 1,649,815 0.36 36,419 Toyota Industries 1,649,815 0.36

Beverages (0.17%) 227,235 0.05 11,090 Coca-Cola West Japan 227,235 0.05

Food Producers (0.15%) 977,115 0.21 74,240 Ajinomoto 977,115 0.21

Page 85


Leisure Goods (0.78%) 3,625,111 0.79 192,780 COLOPL 957,910 0.21 7,430 Nintendo 2,079,710 0.45 12,501 Sony 587,491 0.13

Health Care Equipment & Services (0.41%) 1,700,765 0.37 34,043 Fukuda Denshi 1,700,765 0.37

Pharmaceuticals & Biotechnology (0.81%) 3,801,485 0.82 77,600 Nichi-iko Pharmaceutical 884,339 0.19 28,100 Takeda Pharmaceutical 921,992 0.20 27,500 Tsumura 726,857 0.16 146,881 Vital KSK 1,268,297 0.27

General Retailers (0.25%) 1,171,656 0.25 86,600 Dena 1,171,656 0.25

Travel & Leisure (0.42%) 850,280 0.18 36,400 Universal Entertainment 850,280 0.18

Mobile Telecommunications (0.29%) 1,822,845 0.40 23,550 Softbank 1,822,845 0.40

Banks (1.76%) 8,357,545 1.81 57,250 Bank of Kyoto 2,288,136 0.50 261,300 Concordia Financial 982,606 0.21 240,201 Resona 1,035,105 0.22 95,000 Sumitomo Mitsui Financial 2,940,679 0.64 35,201 Sumitomo Mitsui Trust 1,111,019 0.24

Non-Life Insurance (0.42%) 2,352,728 0.51 64,700 MS&AD Insurance 1,653,749 0.36 21,400 Sompo Japan Nipponkoa 698,979 0.15

Life Insurance (0.33%) 1,751,550 0.38 109,700 Dai-ichi Life 1,751,550 0.38

Real Estate Investment & Services (0.47%) 2,728,713 0.59 133,200 Daibiru 1,076,423 0.23 88,300 Mitsubishi Estate 1,151,735 0.25 63,100 Tosei 500,555 0.11

Financial Services (0.83%) 3,005,006 0.65 301,700 Nomura 1,105,197 0.24 79,830 SBI Holdings 1,899,809 0.41

Software & Computer Services (1.46%) 6,106,565 1.32 373,600 Broadband Tower 852,527 0.19 93,500 Future Architect 1,164,643 0.25 47,136 Internet Initiative Japan 733,514 0.16 48,700 NS Solutions 1,205,002 0.26 35,300 Square-Enix 1,117,718 0.24 376,001 Yahoo Japan 1,033,161 0.22

Page 86


Technology Hardware & Equipment (0.61%) 2,674,749 0.58 244,750 Konica Minolta 1,994,411 0.43 12,200 ROHM 680,338 0.15

MACAU (0.24%) 1,132,442 0.25

Travel & Leisure (0.24%) 1,132,442 0.25 933,400 MGM China 1,132,442 0.25

MALAYSIA (3.64%) 12,916,942 2.80

Construction & Materials (0.47%) 2,104,674 0.46 3,708,000 IJM Corporation Berhad 1,229,862 0.27 1,723,060 Lafarge Malayan Cement 874,812 0.19

General Industrials (0.75%) 3,026,652 0.65 2,786,610 Sime Darby 1,347,660 0.29 7,744,600 Sime Darby Property 1,678,992 0.36

Industrial Transportation (0.71%) 1,826,806 0.40 546,500 Malaysia Airports 897,197 0.20 5,253,314 Tiong NAM Logistics 929,609 0.20

Travel & Leisure (0.50%) 1,995,520 0.43 3,268,800 Berjaya Food Bhd 860,083 0.19 784,600 Genting Berhad 1,135,437 0.24


Banks (0.46%) 1,694,621 0.37 1,526,800 CIMB 1,694,621 0.37

Non-Life Insurance (0.33%) 1,449,216 0.31 10,223,700 Tune Protect 1,449,216 0.31

Real Estate Investment & Services (0.23%) 819,453 0.18 1,626,437 SP Setia 810,687 0.18 64,804 SP Setia Bhd 5.93% Perpetual 8,766 —

PHILIPPINES (0.35%) 2,689,216 0.58

Food & Drug Retailers (0.00%) 782,028 0.17 9,500,000 Cosco Capital 782,028 0.17

Travel & Leisure (0.35%) 1,907,188 0.41 19,169,242 Melco Resorts And Entertainment Philippines 1,907,188 0.41

SINGAPORE (1.97%) 7,590,581 1.65

Construction & Materials (0.21%) 1,019,703 0.22 6,988,100 Yoma Strategic 1,019,703 0.22

General Industrials (0.41%) 2,300,270 0.50 897,100 Fraser and Neave 936,472 0.20 349,140 Keppel 1,363,798 0.30

Page 87


General Retailers (0.00%) 231,386 0.05 12,900 Jardine Cycle & Carriage 231,386 0.05

Travel & Leisure (0.74%) 2,626,320 0.57 2,216,260 Genting Singapore 1,306,024 0.28 1,547,700 OUE 1,320,296 0.29

Real Estate Investment & Services (0.41%) 1,412,902 0.31 1,291,030 Wing Tai Holdings 1,412,902 0.31


SOUTH KOREA (2.83%) 14,745,734 3.20

Chemicals (0.13%) 968,948 0.21 3,840 LG Chemical 968,948 0.21

General Industrials (0.22%) 914,548 0.20 6,000 LG 300,722 0.07 20,966 LG pref. 613,826 0.13

Industrial Transportation (0.31%) 1,320,678 0.29 14,752 Hyundai Glovis 1,320,678 0.29

Support Services (0.37%) 1,326,195 0.29 104,543 Kginicis 1,326,195 0.29

Automobiles & Parts (0.19%) 940,612 0.20 16,121 Hyundai Motor pref. '2' 940,612 0.20

Food Producers (0.20%) 894,765 0.19 9,623 CJ 894,765 0.19

Leisure Goods (0.50%) 2,171,929 0.47 24,969 DoubleUGames 1,189,314 0.26 30,600 Samsung Electronics 982,615 0.21

Personal Goods (0.00%) 249,371 0.05 7,200 Spigen Korea 249,371 0.05

Health Care Equipment & Services (0.00%) 224,875 0.05 6,700 Osstem Implant 224,875 0.05

General Retailers (0.23%) 1,174,619 0.26 6,854 CJ O Shopping 1,174,619 0.26

Travel & Leisure (0.34%) 2,189,613 0.48 74,753 Kangwon Land 1,480,572 0.32 7,920 Samsung C&T 709,041 0.16

Life Insurance (0.10%) 752,594 0.16 11,200 Samsung Life Insurance 752,594 0.16

Software & Computer Services (0.09%) 881,764 0.19 55,820 Minwise 881,764 0.19

Page 88


Technology Hardware & Equipment (0.15%) 735,223 0.16 9,757 Koh Young Technology 735,223 0.16

TAIWAN (0.87%) 3,310,626 0.72

Health Care Equipment & Services (0.00%) 464,867 0.10 92,547 Ginko International 464,867 0.10

Travel & Leisure (0.00%) 274,275 0.06 41,682 Gourmet Master 274,275 0.06

Technology Hardware & Equipment (0.87%) 2,571,484 0.56 210,380 Advantech 1,199,407 0.26 331,170 ASE Technology 618,814 0.14 121,920 MediaTek 753,263 0.16

THAILAND (0.31%) 2,058,286 0.45

Media (0.00%) 620,726 0.14 3,766,600 BEC World Public (Alien Market) 620,726 0.14

Banks (0.31%) 1,437,560 0.31 283,300 Bangkok Bank (Bangkok Alien Market) 1,437,560 0.31

PACIFIC BASIN (1.18%) 5,516,699 1.20

AUSTRALIA (1.18%) 5,516,699 1.20

Industrial Metals & Mining (0.31%) 1,518,742 0.33 709,030 South32 1,518,742 0.33

Mining (0.87%) 3,997,957 0.87 137,992 BHP Billiton (London listing) 2,306,122 0.50 38,715 Rio Tinto 1,691,835 0.37

AFRICA (0.97%) 5,218,556 1.13

EGYPT (0.00%) 650,071 0.14


SOUTH AFRICA (0.97%) 4,568,485 0.99

Mining (0.12%) — —

Construction & Materials (0.26%) 971,871 0.21 2,784,916 PPC 971,871 0.21

Health Care Equipment & Services (0.11%) 931,017 0.20 702,410 Life Healthcare 931,017 0.20

Media (0.19%) 1,765,438 0.38 10,708 Naspers 'N' 1,765,438 0.38

Banks (0.29%) 900,159 0.20 109,683 Absa 900,159 0.20

Page 89


FORWARD CURRENCY CONTRACTS (0.06%) 295,425 0.06 £12,268,741 Forward Currency Contract 18/10/2018: UK Sterling 12,268,741 vs Euro 13,750,000 14,783 — $28,137,889 Forward Currency Contract 18/10/2018: US Dollar 28,137,889 vs Euro 24,063,000 116,748 0.02 $14,717,634 Forward Currency Contract 18/10/2018: US Dollar 14,717,634 vs Japanese Yen 1,645,443,000 163,894 0.04


Net other liabilities (3,791,062) (0.82)

Net assets 460,811,538 100.00



*Delisted security.


Page 90

River and MercantileGlobal Recovery Fund (formerly World Recovery Fund)Statement of Total Returnfor the period ended 30 September 2018




£ £


£ £





7,959,322 7,049,906 (2,491,636) (11,742)

4,546,528 (459,256)

4,087,272

12,046,594 (3,473,385)

8,573,209

17,213,875 4,427,434 (1,756,408)

(9,393)

2,661,633 (349,208)

2,312,425

19,526,300 —

19,526,300


£ £


£ £


Dilution adjustmentChange in net assets attributable to Shareholders from investment activities

Retained distributions on accumulation shares


438,426,404 37,145,945(23,687,021)

13,458,924 110,906

8,573,209242,095

460,811,538

291,806,676 94,799,120(11,560,790)

83,238,330 294,713

19,526,300 —

394,866,019

Page 91

River and MercantileGlobal Recovery Fund (formerly World Recovery Fund)Balance Sheet as at 30 September 2018


31 March 2018£ £


Total assets

LIABILITIESCreditors Bank overdraftsDistribution payableOther creditorsTotal other liabilities

Total liabilities


464,602,600

6,067,156 286,486

6,353,642

470,956,242

(2,202,651) (3,342,864) (4,599,189)

(10,144,704)

(10,144,704)

460,811,538

439,426,467

4,514,137183,472

4,697,609

444,124,076

(1,545,177)(2,918,547)(1,233,948)

(5,697,672)

(5,697,672)

438,426,404

Page 92

River and MercantileGlobal Recovery Fund (formerly World Recovery Fund)Fund Facts

Distribution information

B-Class Distribution sharesThe distribution payable on 30 November 2018 is 4.6134p (2017: Nil) per share distribution shares.

S-Class Distribution sharesThe distribution payable on 30 November 2018 is 0.5839p (2017: Nil) per share distribution shares.

Z-Class Accumulation sharesThe distribution payable on 30 November 2018 is 15.8183p (2017: Nil) per share accumulation shares.

Performance records

Net asset values

The S-Class Distribution share class launched on 20 July 2018


£


p

Sharesin issue

31 March 2016B-Class Distribution sharesZ-Class Accumulation shares31 March 2017B-Class Distribution sharesZ-Class Accumulation shares31 March 2018B-Class Distribution sharesZ-Class Accumulation shares30 September 2018B-Class Distribution shares S-Class Distribution sharesZ-Class Accumulation shares

149,477,9582,939,345

264,446,65327,360,023

412,855,57325,570,831

354,105,09989,140,65917,565,780

349.57731.84

491.961,048.34

512.491,110.85

522.23242.45

1,147.74

42,760,757401,640

53,753,8272,609,851

80,558,2812,301,918

67,806,289 36,766,819 1,530,469

Page 93

River and MercantileGlobal Recovery Fund (formerly World Recovery Fund)

Fund Facts continued

Operating Charges









• Foreign exchange risk: the sub-fund invests in international securities which are denominated in foreign currencieswhose fluctuations may increase the sub-fund’s volatility and losses.

• Emerging market risk: the sub-fund may invest in emerging markets which may be more volatile than developedmarkets and be more susceptible to unforeseen events such as devaluations, political instability, etc.





1 2 3 4 5 6 7

..........................................................................

30 September 2018 B-Class Distribution sharesS-Class Distribution sharesZ-Class Accumulation shares

1.16%0.90%0.16%

Page 94

River and MercantileGlobal Recovery Fund (formerly World Recovery Fund)Summary of Largest Portfolio ChangesThe table below shows the top ten purchases and sales for the period.

Purchases £

Dropbox 2,271,600Tencent 1,936,213Spotify Technology 1,908,479Snap 1,717,501iShares MSCI China A UCITS ETF USD Acc 1,581,005CGG 1,559,911Volkswagen pref. (non-voting) 1,427,704ProPetro 1,372,894Beijing Capital International Airport 1,265,200Wiit SpA 1,229,956

Sales £

Web.com 1,874,217Ocado 1,845,151Computer Engineering & Consulting 1,837,421Japan Airport Terminal 1,792,052Tiffany 1,695,675Vina Concha y Toro ADR 1,540,370Malaysia Airports 1,491,311Vale 1,439,863ASTM 1,393,279Heijmans 1,392,145

Page 95

River and MercantileDynamic Asset Allocation FundInvestment Objective and PolicyThe sub-fund aims to achieve a return of 4% per annum in excess of cash based on the 3 month sterling LIBORinterest rate by investing in a broad range of asset classes, including equities (up to a maximum of 80% of theportfolio), fixed interest securities, bonds, exchange traded funds (“ETFs”), units in collective investment schemes,cash and near cash. The sub–fund may also hold up to 50% of its net assets in non Investment Grade securities.

At least 60% of the assets of the sub–fund will be denominated in sterling or hedged back to sterling.

Investment Manager’s ReviewPortfolio review Over the six month period to 30 September 2018, the River and Mercantile Dynamic Asset Allocation Fund Z-ClassAccumulation shares returned 4.7%. Three month LIBOR over the same period represented a return of 0.4%.

Market backgroundConfidence in the US was boosted by tax cuts with US economic growth looking stronger than the other developedmarkets, and its leading indicators more positive. Historically low post-war unemployment rates in the US have beenaccompanied by rising wages. Following concerns of rising inflation and a tightening job market, the Fed hiked ratesfurther in September. Trade tensions have escalated after the US imposed trade tariffs against China, Canada, Mexicoand the European Union. President Donald Trump further threatened to impose 10 per cent tariffs on $200bn inimports from Beijing, with levies on a further in $267bn in products. There are fears that the US-China trade war coulddeliver a “shock” to already struggling emerging markets, raising the prospect that a crisis ripping through Argentinaand Turkey could spread across the developing world. Amidst Donald Trump’s threats, tensions between the US andEU eased when EU president Jean-Claude Juncker and Trump agreed to press pause on new automobile tariffs. TheUS dollar has appreciated against all major trading currencies. This appreciation, and the US interest rate rises helpingfuel it, are among the main reasons why emerging market assets have been doing so poorly of late. Over the period,emerging equity fell in local currency terms, as did emerging market debt - while global investment grade and globalhigh yield credit were generating positive returns - with burgeoning crises in Argentina, Brazil and Turkey. Emergingmarket currencies started to weaken against the US dollar in mid-April, and have fallen significantly since. WeakeningChinese economic data helped depress the price of copper and other industrial metals alongside the Chinese currency,the renminbi, and the Chinese equity prices falling. Meanwhile in the US, large US technology stocks had a largeturnaround in performance having reported mixed earnings. However, the vast majority of reporting companies inother industry sectors beat expectations, showing earnings growth of more than 10% a year. European corporateresults were also encouraging, led by the banks which inspired the European Central Bank to announce in June thatit would halt its bond-buying programme by the end of this year.

Uncertainty of Brexit has been the main catalyst for the sterling weakening against the US dollar and the euro. Fearsof a no-deal Brexit have been looming after the prime minister’s attempt to forge a way forward with her “Chequersagreement” was rejected by the EU in September, largely due to wanting to protect the integrity of the single market.Sterling’s weakness was also aided by the Bank of England, who raised the base rate in August. At the start of theperiod, the ten-year gilt fell but showed a rebound at the end of the period alongside 20- and 30-year gilt yields rising.These rises were boosted by a growing acceptance that the disappointing economic data of the first quarter was duemore to bad weather than a secular downturn, leaving the way clear the Bank of England to raise its base rate.Similarly, government bond yields moved upwards internationally on fears the Bank of Japan might tighten monetarypolicy. Italy’s new populist government hit European sentiment with a large sell-off in Italian government debt. Yieldson Italian bonds rose across the curve by the largest amount in more than four years. As talks on a national budgetbetween the parties of the governing populist coalition continue, volatility is expected to continue in Italian assets,which are expected to remain exposed to the process. There is an ongoing constitutional struggle in Poland.

In September, oil prices rose to the highest level since 2014 amid continued uncertainty over how the market wouldrespond to supply constraints from Donald Trump’s sanctions on Iran. Brent crude, the international benchmark, roseto over $83 a barrel. The world’s biggest oil producers, led by Saudi Arabia and Russia, have decided against anadditional rise in output, despite calls from Trump for further action to restrict oil prices from increasing above $80 abarrel.

Page 96

River and MercantileDynamic Asset Allocation FundInvestment Manager’s Review continuedPerformance and activityThroughout the period, we remained underweight risk overall at a portfolio level due to increased volatility in markets.We continued to look for diversifying sources of return at this stage of the market cycle and therefore preferringalternative investments over traditional asset classes. Over the second quarter, we continued our theme of de-riskingfrom earlier in the year and reduced the equity exposure further in the US, Japan and Emerging Markets. In July, weadjusted some of the areas we are looking to take risk in. Given the heightened geopolitical tensions and fallingEmerging Market Debt in the market, we reduced our exposure, and instead investing some of the proceeds in GlobalQuality equity. August also saw a further increase to our Global Quality equity exposure, this time in favour of passiveEmerging Markets equity. We made this switch due to a negative outlook for Emerging Markets, primarily due toglobal trade tensions, concerns over China slowdown alongside a rising rate environment in the US. In September,we reduced credit, alternatives and cyclical equities in favour of broad equity exposure.

OutlookUncertainty relating to global trade wars and tariffs will likely lead to further volatility in financial markets, with aparticular focus on China and the USA. Confidence is dropping in European government bond markets and beyond,which is due predominantly to Italy’s populist government and its benefit-focused spending pledges. Brexit negotiationsare ongoing and creating uncertainty in the UK as well as Europe. We expect volatility in both on and off risk marketsto continue off the back of this, with gilt yields and sterling in particular affected. The European Central Bank is set tohalt its asset purchase scheme at the end of December, while the US Federal Reserve is also expected to continuetightening monetary policy with markets pricing a further rate rise during the fourth quarter. Wage inflation in the UKis at its highest level since 2009. Further strong wage readings could put increasing pressure on the Bank of Englandto raise interest rates again.

Page 97

River and MercantileDynamic Asset Allocation FundPortfolio Statement as at 30 September 2018 Market % of Value Net Holding Investment £ Assets

UNITED KINGDOM (49.56%) 87,290,237 50.61

Non-Equity Investment Instruments (30.27%) 50,107,191 29.05 16,111,239 Insight Liquidity Funds 16,111,239 9.34 341,200 iShares Core FTSE 100 UCITS ETF 2,529,316 1.47 260,385 iShares S&P 500 UCITS ETF 5,798,123 3.36 67,352 Nomura Funds Ireland US High Yield Bond 8,929,531 5.18 25,232 Pimco GIS Emerging Local Bond Fund Institutional 460,983 0.27 Class GBP (UnHedged) Accumulation Shares 158,031 Pimco GIS Emerging Markets Bond Fund Institutional 3,964,988 2.30 Class GBP (Hedged) Accumulation Shares 110,829 Pimco GIS High Yield Bond Fund Institutional 2,332,951 1.35 Class GBP (Hedged) Accumulation Shares 559,878 Putnam Global High Yield Bond Fund 2,597,835 1.50 299,900 Vanguard FTSE Japan UCITS 7,382,225 4.28

Bonds (19.29%) 37,183,046 21.56£1,649,796 UK Treasury 0.5% 22/7/2022 1,616,000 0.94£2,367,880 UK Treasury 1.5% 22/7/2026 2,387,356 1.38£12,960,442 UK Treasury 1.75% 22/7/2019 13,051,748 7.57£3,184,551 UK Treasury 4.25% 07/12/2027 3,949,496 2.29£15,928,763 UK Treasury 4.5% 07/3/2019 16,178,446 9.38

NORH AMERICA (43.34%) 75,263,706 43.64

BERMUDA (25.66%) 44,264,921 25.67

Non-Equity Investment Instruments (25.66%) 44,264,921 25.67 135,722 Investec Global Strategy Fund - Global Franchise Fund 6,192,607 3.59 542,266 iShares Edge MSCI World Quality Factor 15,064,149 8.74 UCITS ETF USD Acc 38,663 Marshall Wace UCITS Funds - MW Liquid Alpha Fund 4,213,606 2.44 210,256 T Rowe Price Funds SICAV - Emerging Markets Bond Fund 2,464,205 1.43 88,210 UBS ETF MSCI EMU UCITS ETF 9,554,907 5.54 17,190 Vanguard FTSE Emerging Markets UCITS ETF 738,225 0.43 214,390 Xtrackers MSCI World Quality UCITS ETF 6,037,222 3.50

CANADA (1.39%) 2,540,212 1.47

Non-Equity Investment Instruments (1.39%) 2,540,212 1.47 62,360 Xtrackers MSCI Canada UCITS ETF 2,540,212 1.47


Non-Equity Investment Instruments (16.29%) 28,458,573 16.50 520,730 iShares Edge MSCI USA Quality Factor UCITS ETF 2,788,234 1.62 90,770 Vanguard FTSE Emerging Markets 2,853,159 1.65 32,966 Vanguard S&P 500 ETF 6,750,440 3.91 378,620 Vanguard S&P 500 UCITS ETF 16,066,740 9.32

Page 98

River and MercantileDynamic Asset Allocation Fund

CONTINENTAL EUROPE (1.15%) — —

GERMANY (1.15%) — —

Non-Equity Investment Instruments (1.15%) — —

FORWARD CURRENCY CONTRACTS ((0.16%)) (124,150) (0.07) £3,535,397 Forward Currency Contract 25/10/18: UK Sterling 3,535,397 vs Japanese Yen 515,270,000 54,341 0.03£20,881,722 Forward Currency Contract 25/10/18: UK Sterling 20,881,722 vs US Dollar 27,518,100 (198,254) (0.11) £5,278,637 Forward Currency Contract 25/10/18: UK Sterling 5,278,637 vs Euro 5,899,500 19,763 0.01 Portfolio of investments 162,429,793 94.18

Net other assets 10,041,561 5.82 Net assets 172,471,354 100.00





Page 99

River and MercantileDynamic Asset Allocation FundStatement of Total Returnfor the period ended 30 September 2018




£ £


£ £





5,380,652 2,182,128 (439,841)

—

1,742,287 (222,747)

1,519,540

6,900,192 (1,520,218)

5,379,974

1,924,624 1,479,654 (388,879)

(874)

1,089,901 (86,475)

1,003,426

2,928,050 (998,102)

1,929,948


£ £


£ £




159,246,514 15,485,816 (9,159,065)

6,326,751 5,415

5,379,974 1,512,700

172,471,354

113,641,814 45,771,676 (1,081,167)

44,690,509 16,405

1,929,948 1,071,488

161,350,164

Page 100

River and MercantileDynamic Asset Allocation FundBalance Sheet as at 30 September 2018


31 March 2018£ £


Total assets

LIABILITIESInvestment liabilitiesCreditors Other creditorsTotal other liabilities

Total liabilities


162,628,047

6,435,925 8,226,517

14,662,442

177,290,489

(198,254)

(4,620,881) (4,620,881)

(4,819,135)

172,471,354

149,800,965

243,9039,727,166

9,971,069

159,772,034

(292,152)

(233,368)(233,368)

(525,520)

159,246,514

Page 101


Fund Facts

Distribution informationB–Class Accumulation sharesThe distribution payable on 30 November 2018 is 2.5784p (2017: 1.8335p) net per share for accumulation shares.

Z–Class Accumulation sharesThe distribution payable on 30 November 2018 is 6.6149p (2017: 5.0469p) net per share for accumulation shares.

Performance records

Net asset values


£


p

Sharesin issue

31 March 2016B–Class Accumulation sharesZ–Class Accumulation shares31 March 2017B–Class Accumulation sharesZ–Class Accumulation shares31 March 2018B–Class Accumulation sharesZ–Class Accumulation shares30 September 2018B–Class Accumulation sharesZ–Class Accumulation shares

62,573,4675,144,142

95,216,02718,425,787

119,759,64039,486,874

133,104,20639,367,148

254.26512.08

292.69592.07

299.23608.16

311.39634.28

24,609,9291,004,553

32,531,6263,112,105

40,022,3766,492,863

42,745,4986,206,593

Page 102



Operating Charges

The Operating Charges figure represents the annual operating expenses of the sub–fund expressed as a percentageof average net assets for the period. The Operating Charges figure has been calculated in accordance with the COLLsourcebook and is designed to be indicative of future costs to investors, as such there will be no comparative figure.The Operating Charges figure is inclusive of Annual Management Charges.

The Operating Charges figure is capped at a maximum of 0.15% above the annual management charge, with anycosts above this amount absorbed by the ACD. This excludes a synthetic exposure of 0.20% which has been appliedto the Operating Charges figure.


Please note, the category stated above is the same for each class of share within the sub–fund.


The shaded area in the Indicator shows the sub–fund’s ranking on the Synthetic Risk & Reward Indicator. The Indicatoruses a standard calculation method that is used by all EU companies who offer such funds to allow you to comparefunds. Historical data is used to calculate the ranking and this may not be a reliable indication for the future rankingand might change.

The sub-fund may not achieve its investment objective and/or you could lose money on your investment in the sub-fund.

The following risks are materially relevant to the sub-fund but may not be adequately captured by the Risk and RewardIndicator, and may cause additional loss:



• Collective Investment Schemes risk: the sub-fund may invest in collective investment schemes and ETFs. It maybe difficult for the sub-fund in extreme market conditions to redeem its units from the collective investment schemesor ETFs at short notice without suffering a loss. Investing in a collective investment scheme or ETF may lead to payment by the sub-fund of additional fees and expenses in relation to those collective investment schemes or ETFs.





1 2 3 4 5 6 7

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30 September 2018

B–Class Accumulation sharesZ–Class Accumulation shares

0.84%0.29%

Page 103

River and MercantileDynamic Asset Allocation FundSummary of Largest Portfolio ChangesThe table below shows the top ten purchases and sales for the period.

Purchases £ Sales £

UK Treasury 1.75% 22/7/2019 13,092,120 UK Treasury 4.5% 07/3/2019 8,721,251 UBS ETF MSCI EMU UCITS ETF 3,204,210 iShares Edge MSCI USA Quality Factor UCITS ETF 2,765,717 iShares S&P 500 UCITS ETF 2,144,142 Investec Global Strategy Fund - Global Franchise Fund 2,138,314 Vanguard FTSE Japan UCITS 1,910,525 iShares Core FTSE 100 UCITS ETF 1,737,977 Insight Liquidity Funds 1,731,542 Vanguard S&P 500 ETF 1,101,142

UK Treasury 1.25% 22/07/2018 14,941,077 T Rowe Price Funds SICAV - Global Unconstrained Bond Fund 3,950,724 Nomura Funds Ireland US High Yield Bond 2,709,728 Vanguard S&P 500 ETF 2,374,758 Vanguard FTSE Emerging Markets 2,248,067 Pimco GIS Emerging Markets Bond Fund Institutional Class GBP (Hedged) Accumulation Shares 2,085,371 iShares MDAX UCITS ETF 1,930,064 UBS ETF MSCI EMU UCITS ETF 796,034 Vanguard FTSE Japan UCITS 791,078 iShares S&P 500 UCITS ETF 768,086

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River and MercantileGlobal High Alpha FundInvestment Objective and PolicyThe investment objective of the sub-fund is to achieve capital growth by investing in global equities. The equitiesselected will be those that are believed, by the investment manager, to offer the prospect of superior long term growth.The sub-fund seeks to outperform the market over the medium term.

Investment Manager’s ReviewPortfolio review The River and Mercantile Global High Alpha Fund Z-Class Accumulation shares returned 7.7% over the six monthsfrom 31 March 2018 to 30 September 2018, compared with its benchmark MSCI All Country World Index whichreturned 12.7% over the same period.

Market backgroundThe six month period to 30 September 2018 witnessed elevated volatility across the major asset classes with news flowdominated by geopolitics, most notably the constantly evolving headlines relating to the trade war initiated by the USwith its key trading partners contrasting with a landmark US-North Korean nuclear disarmament agreement. Positionson US-China trade relations hardened with the imposition of tariffs on $250 billion of Chinese goods by the White House.China sought to support the economy via looser fiscal and monetary policy; the renminbi weakened by around 10%since the start of the period. The major story of the summer saw concerns flaring in emerging markets (EM), especiallyin weaker economies such as Turkey and Argentina, over the impact of reduced US dollar liquidity. Many of the moredollar-denominated debt-exposed emerging economies have made significant progress since the ‘Taper Tantrum’ of2013 so it would be unfair to tar all EMs with the same brush and imply that contagion is inevitable; however, whilesanguine about these risks today, we remain cognisant that market action does not always follow the rational or fairpath. In the UK, Prime Minister Theresa May came under renewed pressure from all sides after her ‘Chequers’ deal forthe UK’s exit from Europe was first seen to be reneging on original promises by Eurosceptic members of her Conservativeparty and was then rejected by fellow EU leaders at a Salzburg summit. Elsewhere in Europe, relations with the newItalian coalition government reached a loggerhead with the announcement that they intend to run a higher thananticipated budget deficit of 2.4% of GDP; Italian bond yields widened on the news. Global growth has remained robustagainst this background; current forecasts continue to point to solid global real GDP growth of 3.8% in 2018 and 3.6%in 2019, while corporate earnings are growing at 16% year on year (11% in the UK). Lead indicators are still inexpansionary territory and in the US in particular business confidence is back close to exuberant peaks.

Performance and activityWe are not well positioned for the current type of market: narrow, capital seeking certainty at any price, pro expensivegrowth stocks and anti-value stocks. Value, recovery, smaller companies, regional mix and currently all worked againstus – a perfect storm. Detractors from performance included our country allocation (underweight US equities andoverweight emerging market in particular) and our underweight positions in Apple and Amazon in what is a pro highlypriced growth market. Contributors to performance included digital economy stocks (Twitter), as did our exposure tooil and gas stocks (Chesapeake Energy, Marathon Oil, Noble and Saipem). Positive individual stock picks also addedto performance (Endo International, 3D Systems).

Major purchases during the period focused on high scoring stocks and PVT anomalies and, in many cases, recyclingstrong performers into laggards as we would anticipate a reversal in fortunes when value returns. The weakness inemerging markets created some amazing top-up opportunities and also some new ideas as those stocks came undermore selling pressure and were impacted by very weak sentiment, the strong US dollar and trade war dislocation(Beijing Capital International Airport, Uni-President and the iShares MSCI China A UCITS ETF, which gives us accessto a very depressed market). We added to the digital economy exposure of the portfolio, in particular China facingcompanies that saw a very aggressive equity price markdown during the period. We also bought Baidu (down over30% from highs, on a free cash flow yield of over 6% and growing its revenues by almost 20% p.a. and Tencent (directand through topping up Naspers, both down about 40% from highs and now discounting historically low levels of cashflow returns and growth). Sales were focused on M&A (Web.com, Hispania Activos Inmobiliarios) and taking profits ina number of strong performers (Ocado, Vale and GrubHub). We also sold some stocks where the thesis was not playingout (Novo Nordisk, TripAdvisor).

OutlookWe are high conviction regarding both the absolute and relative valuation and profit potential of the stocks in thisportfolio. We keep putting money into very cheap PVT stocks, some of which are new ideas and some existing ideas.“Mr. Market” is focused on paying higher and higher prices for the already fully delivering expensive growth stocks;we are paying lower prices for everything else that has been left behind (for whatever reason) in the stampede of hotcapital into ‘guaranteed’ growth. There are so many opportunities to create medium term wealth. Our recent short-term returns have been modest ones, but we remain very excited about the medium term opportunities.

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River and MercantileGlobal High Alpha FundPortfolio Statement as at 30 September 2018 Market % of Value Net Holding Investment £ Assets

UNITED KINGDOM (5.12%) 6,489,329 5.58

Oil & Gas Producers (1.05%) 1,239,208 1.07 141,900 Cairn Energy 329,208 0.28 227,500 Faroe Petroleum 378,105 0.33 202,472 Tullow Oil 531,895 0.46

Oil Equipment, Services & Distribution (0.42%) 207,824 0.18 18,330 Subsea 7 207,824 0.18

Mining (0.87%) 1,040,923 0.89 26,200 BHP Billiton 503,416 0.43 12,300 Rio Tinto 537,507 0.46

Aerospace & Defence (0.00%) 436,426 0.37 202,989 Chemring 436,426 0.37

Electronic & Electrical Equipment (0.00%) 281,321 0.24 17,251 Oxford Instruments 170,785 0.15 67,400 Xaar 110,536 0.09

Food & Drug Retailers (0.37%) 218,360 0.19 24,300 Ocado 218,360 0.19

Travel & Leisure (0.00%) 264,171 0.23 54,200 Playtech 264,171 0.23

Banks (1.61%) 1,587,398 1.36 69,600 HSBC 472,001 0.40 973,700 Lloyds Banking 577,112 0.50 215,400 Royal Bank of Scotland 538,285 0.46

Financial Services (0.19%) 251,889 0.22 94,270 TP ICAP 251,889 0.22

Software & Computer Services (0.61%) 961,809 0.83 221,173 RhythmOne 491,004 0.42 99,536 SDL 470,805 0.41

NORTH AMERICA (27.87%) 35,584,411 30.57

BERMUDA (0.33%) 356,874 0.31


BRITISH VIRGIN ISLANDS (0.11%) 234,230 0.20

Electronic & Electrical Equipment (0.11%) 234,230 0.20 14,300 Hollysys Automation Technologies 234,230 0.20

CANADA (0.35%) 548,373 0.47

Oil & Gas Producers (0.35%) 548,373 0.47 43,130 Enerplus 407,094 0.35 10,500 Husky Energy 141,279 0.12

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River and MercantileGlobal High Alpha FundPortfolio Statement continued Market % of Value Net Holding Investment £ Assets

CAYMAN ISLANDS (0.76%) 528,982 0.45

Media (0.50%) 289,378 0.25 145,700 Fang ADR 289,378 0.25

Life Insurance (0.26%) 239,604 0.20 25,300 Greenlight Capital 239,604 0.20


Oil & Gas Producers (3.17%) 4,309,400 3.70 14,890 Apache 544,309 0.47 19,330 Baker Hughes GE 501,316 0.43 102,290 Chesapeake Energy 352,197 0.30 10,620 Devon Energy 325,266 0.28 11,700 Exxon Mobil 762,804 0.65 24,550 Marathon Oil 438,268 0.38 15,800 Range Resources 205,731 0.18 106,470 Southwestern Energy 417,209 0.36 71,260 Transocean (Regd.) 762,300 0.65

Oil Equipment, Services & Distribution (0.00%) 997,727 0.86 113,550 Noble 611,266 0.53 15,900 ORBCOMM 132,292 0.11 20,100 ProPetro 254,169 0.22

Chemicals (0.41%) 647,383 0.56 26,000 Mosaic 647,383 0.56

Industrial Metals & Mining (0.45%) 425,604 0.37 39,900 Freeport McMoRan 'B' 425,604 0.37

Construction & Materials (0.16%) 542,729 0.47 6,550 Fluor 291,775 0.25 7,600 National Oilwell Varco 250,954 0.22

General Industrials (0.14%) 258,171 0.22 29,820 General Electric 258,171 0.22

Electronic & Electrical Equipment (0.78%) 876,570 0.75 12,700 Avnet 436,010 0.37 56,050 Veeco Instruments 440,560 0.38

Industrial Engineering (0.20%) 366,033 0.31 3,130 Caterpillar 366,033 0.31

Support Services (0.59%) 941,839 0.81 23,970 First Data 449,420 0.39 2,600 Global Payments 253,969 0.22 5,300 Stericycle 238,450 0.20

Beverages (0.42%) 485,155 0.42 13,700 Coca-Cola 485,155 0.42


Leisure Goods (1.00%) 1,436,432 1.23 17,700 Acushnet 372,039 0.32 4,900 Take-Two Interactive Software 518,463 0.44 177,980 Zynga 545,930 0.47

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Personal Goods (0.11%) 158,207 0.14 1,500 Ralph Lauren 158,207 0.14

Health Care Equipment & Services (0.41%) 591,475 0.51 2,900 UnitedHealth 591,475 0.51

Pharmaceuticals & Biotechnology (1.68%) 1,765,656 1.52 8,600 Eli Lilly 707,560 0.61 17,500 Endo International 225,720 0.19 4,380 Johnson & Johnson 464,014 0.40 10,900 Pfizer 368,362 0.32

Food & Drug Retailers (0.87%) 945,677 0.81 275,130 Blue Apron 360,778 0.31 5,750 McKesson 584,899 0.50

General Retailers (2.55%) 2,340,040 2.01 20,309 eBay 514,091 0.44 9,360 Etsy 368,644 0.32 2,950 GrubHub 313,584 0.27 12,200 PayPal 821,784 0.71 4,470 Wal-Mart Stores 321,937 0.27

Media (0.45%) 1,182,394 1.02 16,100 Discovery Communications 'A' 394,953 0.34 66,290 Groupon 191,136 0.17 4,300 Spotify Technology 596,305 0.51

Travel & Leisure (0.44%) 266,500 0.23 175 Booking 266,500 0.23

Financials (0.68%) 498,966 0.43 13,100 Voya Financial 498,966 0.43

Banks (4.50%) 5,381,888 4.62 44,600 Bank of America 1,007,566 0.87 25,544 Citigroup 1,405,454 1.21 23,100 Citizens Financial 683,054 0.59 7,320 JPMorgan Chase 633,347 0.54 24,400 Wells Fargo 983,447 0.84 17,400 Zions Bancorporation 669,020 0.57

Non-Life Insurance (0.56%) 630,006 0.54 5,900 AIG 240,923 0.21 3,600 Willis Towers Watson 389,083 0.33

Real Estate Investment & Services (0.57%) 220,264 0.19 6,500 Zillow 220,264 0.19

Financial Services (1.35%) 1,698,140 1.46 6,999 American Express 571,599 0.49 11,691 Blackstone 341,482 0.29 18,700 ITG 310,603 0.27 14,100 Jefferies Financial 237,442 0.21 9,900 Legg Mason 237,014 0.20

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Equity Investment Instruments (0.40%) 626,479 0.54 12,000 Altaba 626,479 0.54

Software & Computer Services (3.01%) 4,774,403 4.10 1,230 Alphabet 'A' 1,138,885 0.98 24,000 Dropbox 493,785 0.42 2,700 Facebook 340,469 0.29 7,320 IBM 848,672 0.73 15,100 Microsoft 1,325,368 1.14 37,800 Snap 245,517 0.21 17,490 Twitter 381,707 0.33

Technology Hardware & Equipment (1.21%) 1,548,814 1.32 22,800 3D Systems 330,273 0.28 15,000 Cisco Systems 559,718 0.48 12,600 Intel 456,926 0.39 5,821 Micron Technology 201,897 0.17

SOUTH AMERICA (8.53%) 8,585,523 7.38

ARGENTINA (0.56%) 926,962 0.79

Construction & Materials (0.00%) 190,948 0.16 28,200 Loma Negra CIA 190,948 0.16

Industrial Transportation (0.27%) 325,160 0.28 50,003 America Airports 325,160 0.28

General Retailers (0.29%) 410,854 0.35 1,574 Mercadolibre 410,854 0.35

BRAZIL (5.41%) 4,659,276 4.01

Oil & Gas Producers (0.86%) 752,247 0.65 103,860 Petroleo Brasileiro pref. 420,605 0.36 131,040 QGEP Participacoes 331,642 0.29


Construction & Materials (0.06%) — —

Industrial Engineering (0.66%) 581,732 0.50 271,200 Industrias Romi 346,307 0.30 360,598 Marcopolo pref. 235,425 0.20

Industrial Transportation (0.20%) 453,844 0.39 330,560 Ecorodovias Infraestrutura e Logistica 453,844 0.39

Support Services (0.31%) 251,533 0.22 104,210 Valid Solucoes 251,533 0.22

Automobiles & Parts (0.15%) — —

Household Goods & Home Construction (0.65%) 724,424 0.62 276,440 Direcional Engenharia 362,553 0.31 168,563 Gafisa 361,871 0.31

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Personal Goods (0.22%) 180,614 0.16 563,230 Technos 180,614 0.16

General Retailers (0.80%) 779,212 0.67 41,413 B2W Cia Digital 219,003 0.19 11,761 Magazine Luiza 276,627 0.24 34,192 Ser Educacional 108,070 0.09 19,870 Smiles Fidelidude 175,512 0.15

Fixed Line Telecommunications (0.20%) — —

Electricity (0.19%) 237,329 0.20 130,100 AES Tiete Energia 237,329 0.20

Real Estate Investment & Services (0.52%) 426,352 0.37 95,337 BR Malls Participacoes 176,111 0.15 142,196 Brasil Brokers Participacoes 102,393 0.09 62,700 MRV Engenharia 147,848 0.13

Financial Services (0.23%) 271,989 0.23 66,500 Banco BTG Pactual 271,989 0.23

CHILE (0.36%) 197,108 0.17

Beverages (0.36%) 197,108 0.17 128,930 Vina Concha y Toro 197,108 0.17

COLOMBIA (1.29%) 1,461,032 1.26

Oil & Gas Producers (0.28%) 349,586 0.30 335,900 Ecopetrol 349,586 0.30

Construction & Materials (0.48%) 383,997 0.33 39,800 Argos 167,536 0.14 155,220 CEMEX LatAm 216,461 0.19

Food Producers (0.20%) 207,305 0.18 33,700 Nutresa 207,305 0.18

Financial Services (0.33%) 520,144 0.45 70,000 Bolsa de Valores de Colombia 214,037 0.19 34,100 Gpo De Inversiones 306,107 0.26

MEXICO (0.64%) 998,942 0.86

Construction & Materials (0.23%) 417,164 0.36 77,383 Cemex ADR 417,164 0.36

Industrial Transportation (0.15%) 193,917 0.17 320,151 Grupo Traxion SAB de CV 193,917 0.17

Household Goods & Home Construction (0.26%) 289,866 0.25 1,054,972 Consorcio 289,866 0.25

Financial Services (0.00%) 97,995 0.08 126,300 Gentera SAB 97,995 0.08

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URUGUAY (0.27%) 342,203 0.29

Travel & Leisure (0.27%) 342,203 0.29 71,400 Arcos Dorados 'A' 342,203 0.29


AUSTRIA (0.66%) 773,078 0.66

Construction & Materials (0.00%) 62,843 0.05 3,300 Wienerberger 62,843 0.05

Banks (0.32%) 310,209 0.27 13,970 Raiffeisen International Bank 310,209 0.27

Non-Life Insurance (0.34%) 352,668 0.30 16,069 Vienna Insurance 352,668 0.30

Technology Hardware & Equipment (0.00%) 47,358 0.04 1,100 AMS 47,358 0.04

DENMARK (0.40%) 211,568 0.18

Industrial Transportation (0.20%) 211,568 0.18 210 AP Moeller-Maersk 'A' 211,568 0.18


FRANCE (5.08%) 5,625,950 4.83

Oil & Gas Producers (0.17%) 273,471 0.24 56,129 Etablissements Maurel et Prom 273,471 0.24

Oil Equipment, Services & Distribution (0.05%) 546,896 0.47 258,200 CGG 546,896 0.47

Construction & Materials (0.61%) 386,515 0.33 8,329 Vicat 386,515 0.33

General Industrials (0.26%) 276,307 0.24 4,630 Eurazeo 276,307 0.24

Automobiles & Parts (0.35%) 340,023 0.29 16,490 Peugeot 340,023 0.29

Personal Goods (0.21%) 221,817 0.19 820 LVMH Moet Hennessy 221,817 0.19

Pharmaceuticals & Biotechnology (0.28%) 367,211 0.32 5,399 Sanofi 367,211 0.32

Food & Drug Retailers (0.10%) 108,408 0.09 7,460 Carrefour 108,408 0.09

Media (1.44%) 1,483,735 1.27 20,878 Criteo 367,272 0.31 13,629 Eutelsat Communications 244,611 0.21 722,161 Solocal 641,949 0.55 11,840 Vivendi 229,903 0.20

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Banks (0.57%) 615,041 0.53 13,150 BNP Paribas 615,041 0.53

Real Estate Investment Trusts (0.16%) 177,572 0.15 2,240 Convivio 177,572 0.15

Financial Services (0.17%) 198,090 0.17 8,620 Tikehau Capital SCA 198,090 0.17

Software & Computer Services (0.71%) 630,864 0.54 25,662 Cegedim 630,864 0.54

GERMANY (1.43%) 2,946,752 2.53

Chemicals (0.00%) 234,614 0.20 3,440 Bayer (Regd.) 234,614 0.20

Construction & Materials (0.00%) 119,925 0.10 2,000 HeidelbergCement 119,925 0.10

Automobiles & Parts (0.00%) 759,948 0.65 780 BMW 53,975 0.05 1,660 Continental 221,935 0.19 4,400 Porsche 227,309 0.19 1,900 Volkswagen 256,729 0.22

Household Goods & Home Construction (0.28%) 384,530 0.33 2,880 zooplus 384,530 0.33

Travel & Leisure (0.31%) 324,176 0.28 17,200 Deutsche Lufthansa 324,176 0.28

Gas, Water & Multiutilities (0.27%) 321,769 0.28 17,000 RWE 321,769 0.28

Financial Services (0.35%) 617,567 0.53 13,000 DWS 275,412 0.24 14,259 Rocket Internet 342,155 0.29

Technology Hardware & Equipment (0.22%) 184,223 0.16 23,659 Aixtron 184,223 0.16

GREECE (2.44%) 2,429,126 2.09

Construction & Materials (0.43%) 477,768 0.41 125,000 Ellaktor 158,992 0.14 16,763 Titan Cement 318,776 0.27

Industrial Transportation (0.75%) 691,602 0.60 27,000 Piraeus Port Authority 396,811 0.35 26,622 Star Bulk Carriers 294,791 0.25

Household Goods & Home Construction (0.43%) 416,289 0.36 90,400 Fourlis 416,289 0.36

Leisure Goods (0.23%) 224,192 0.19 20,008 Jumbo 224,192 0.19

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Real Estate Investment Trusts (0.35%) 354,978 0.30 50,067 Grivalia Properties REIC 354,978 0.30

Financial Services (0.25%) 264,297 0.23 68,213 Hellenic Exchange 264,297 0.23

IRELAND (1.32%) 1,524,387 1.31

Industrial Goods & Services (0.47%) 551,340 0.47 20,548 Johnson Controls International 551,340 0.47

Household Goods & Home Construction (0.26%) 241,574 0.21 184,500 Cairn Homes 241,574 0.21

Health Care Equiptment & Services (0.28%) 403,573 0.35 5,350 Medtronic 403,573 0.35

Banks (0.31%) 327,900 0.28 55,400 Bank of Ireland 327,900 0.28

ITALY (6.33%) 6,829,427 5.87

Oil & Gas Producers (0.66%) 1,105,607 0.95 36,300 Eni 526,442 0.45 122,546 Saipem 579,165 0.50

General Industrials (0.47%) 526,933 0.45 140,054 Anima 526,933 0.45


Personal Goods (0.55%) 656,105 0.57 115,790 Prada 425,530 0.37 4,410 Tod's 230,575 0.20

General Retailers (0.24%) 366,372 0.31 44,300 Cerved Information Solutions 366,372 0.31

Media (0.43%) 494,562 0.42 119,729 ePrice 186,200 0.16 128,746 Mediaset 308,362 0.26


Banks (1.45%) 1,743,052 1.50 177,357 Banco BPM 335,378 0.29 28,810 FinecoBank 295,490 0.25 187,700 Intesa Sanpaolo 367,977 0.32 51,420 Mediobanca 393,974 0.34 30,340 UniCredit 350,233 0.30

Non-Life Insurance (0.85%) 765,609 0.66 26,700 Assicurazioni Generali 353,757 0.30 120,570 Unipol Gruppo Finanziario 411,852 0.36

Real Estate Investment & Services (0.24%) 320,386 0.28 54,409 Immobiliare Grande Distribuzione SIIQ 320,386 0.28

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Real Estate Investment Trusts (0.03%) — —

Financial Services (0.88%) 850,801 0.73 107,116 Banca Farmafactoring SpA 492,312 0.42 23,900 Gruppo MutuiOnline 358,489 0.31

LUXEMBOURG (0.32%) 377,877 0.32

Industrial Metals & Mining (0.32%) 377,877 0.32 29,400 Tenaris 377,877 0.32

NETHERLANDS (2.96%) 3,235,733 2.77


Oil Equipment, Services & Distribution (0.23%) 434,331 0.37 31,850 SBM Offshore 434,331 0.37

Construction & Materials (0.31%) 461,565 0.40 42,130 Heijmans 461,565 0.40

Electronic & Electrical Equipment (0.00%) 203,082 0.17 4,800 TKH 203,082 0.17

Food & Drug Retailers (0.18%) 341,545 0.29 8,815 Shop Apotheke Europe 341,545 0.29

Banks (1.09%) 1,154,268 0.99 53,000 ING 527,781 0.45 31,122 Van Lanschot 626,487 0.54

Real Estate Investment Trusts (0.17%) 198,685 0.17 6,475 NSI 198,685 0.17

Financial Services (0.31%) 118,288 0.10 2,300 EXOR 118,288 0.10

Technology Hardware & Equipment (0.31%) 323,969 0.28 51,960 Tomtom 323,969 0.28

NORWAY (0.15%) 226,408 0.19

Media (0.15%) 226,408 0.19 7,870 Schibsted 226,408 0.19

PORTUGAL (0.28%) 318,090 0.27

Travel & Leisure (0.28%) 318,090 0.27 38,400 Ibersol 318,090 0.27

RUSSIA (1.50%) 1,447,934 1.24

Banks (0.36%) 338,714 0.29 35,000 Sberbank of Russia ADR 338,714 0.29

Financial Services (0.39%) 342,813 0.29 33,970 QIWI ADR 342,813 0.29

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Software & Computer Services (0.75%) 766,407 0.66 17,697 Mail.ru GDR 362,612 0.31 16,010 Yandex 'A' 403,795 0.35

SPAIN (4.00%) 3,453,060 2.98

Oil & Gas Producers (0.20%) 268,170 0.23 17,540 Repsol 268,170 0.23


Support Services (0.65%) 860,599 0.74 59,680 Applus Services 651,712 0.56 44,670 Global Dominion Access 208,887 0.18

Travel & Leisure (0.34%) 347,662 0.30 34,000 Parques Reunidos Servicios Centrales 347,662 0.30

Banks (0.70%) 297,441 0.26 42,100 Bankinter 297,441 0.26

Real Estate Investment & Services (0.53%) 509,633 0.44 33,100 Inmobiliaria Colonial 263,721 0.23 17,630 Neinor Homes 245,912 0.21

Financial Services (1.31%) 915,982 0.79 14,500 Bolsas y Mercados Espanoles 359,562 0.31 8,900 Corporacion Financiera Alba 380,115 0.33 104,840 Prosegur Cash 176,305 0.15

SWEDEN (0.27%) 536,983.00 0.47

Industrial Engineering (0.00%) 137,072 0.12 7,700 Epiroc 60,931 0.05 22,700 Munters 76,141 0.07

Health Care Equipment & Services (0.00%) 65,531 0.06 7,400 Getinge 65,531 0.06

Media (0.27%) 334,380 0.29 11,859 Modern Times 'B' 334,380 0.29

SWITZERLAND (1.33%) 1,493,959 1.29

Electronic & Electrical Equipment (0.26%) 267,185 0.23 5,200 Landis+Gyr 267,185 0.23

Personal Goods (0.19%) 204,114 0.18 3,250 Compagnie Financiere Richemont 204,114 0.18

Banks (0.88%) 1,022,660 0.88 55,244 Credit Suisse 639,482 0.55 31,500 UBS 383,178 0.33

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MIDDLE EAST (0.24%) 352,059 0.30

UNITED ARAB EMIRATES (0.24%) 352,059 0.30

Oil & Gas Producers (0.24%) 352,059 0.30 100,500 Borr Drilling 352,059 0.30

ASIA (27.45%) 31,305,925 26.89

CHINA (8.26%) 10,231,488 8.79

Oil & Gas Producers (0.33%) 620,600 0.53 252,100 CNOOC 382,941 0.33 266,200 Kunlun Energy 237,659 0.20

Alternative Energy (0.30%) 369,198 0.32 572,540 China Longyuan Power 369,198 0.32

Chemicals (0.00%) 130,310 0.11 349,000 Fufeng 130,310 0.11

Construction & Materials (0.47%) 130,113 0.11 553,200 Xinyi Solar 130,113 0.11

Industrial Engineering (0.29%) 247,895 0.21 571,000 China Lesso 247,895 0.21

Industrial Transportation (0.38%) 820,335 0.70 377,800 Beijing Capital International Airport 350,992 0.30 425,700 COSCO Pacific 358,781 0.31 173,300 Zhejiang Expressway 110,562 0.09

Beverages (0.38%) 625,976 0.54 78,700 Tsingtao Brewery 283,439 0.24 419,600 Uni-President 342,537 0.30

Food Producers (1.05%) 824,600 0.71 94,280 China Mengniu Dairy 240,226 0.21 231,640 Tingyi (Cayman Islands) 326,437 0.28 400,000 Want Want China 257,937 0.22


Health Care Equipment & Services (0.13%) — —


General Retailers (0.61%) 915,360 0.79 4,690 Alibaba ADS 592,449 0.51 16,140 JD.com 322,911 0.28

Media (0.00%) 282,198 0.24 16,000 BitAuto ADS 282,198 0.24

Travel & Leisure (0.26%) 257,830 0.22 9,579 Yum China 257,830 0.22

Page 116


Financials (0.33%) 732,399 0.63 139,100 China Life Insurance 242,374 0.21 76,700 China Pacific Insurance 227,002 0.19 33,781 Ping An Insurance 263,023 0.23

Banks (0.87%) 902,910 0.78 1,016,140 Bank of China 'H' 345,550 0.30 106,200 China Merchants Bank 'H' 330,442 0.28 541,000 Chongqing Rural Commercial Bank 226,918 0.20

Life Insurance (0.18%) — —

Real Estate Investment & Services (0.24%) 406,664 0.35 107,000 China Overseas Land & Investment 256,908 0.22 243,331 Greentown Service 149,756 0.13

Financial Services (0.35%) 394,522 0.34 565,410 Haitong Securities 394,522 0.34

Software & Computer Services (1.30%) 2,151,102 1.85 4,300 Baidu ADR 754,021 0.65 288,065 Chinasoft International 147,081 0.13 40,500 Ping An Healthcare and Technology 207,381 0.18 6,430 SINA 342,394 0.29 18,860 Sohu.com 287,517 0.25 13,030 Tencent 412,708 0.35

Technology Hardware & Equipment (0.00%) 114,888 0.10 2,000 YY ADS 114,888 0.10

Non-Equity Investment Instruments (0.00%) 304,588 0.26 107,700 iShares MSCI China A UCITS ETF 304,588 0.26

HONG KONG (2.18%) 2,031,285 1.75


Industrial Transportation (0.12%) 170,911 0.15 909,700 Hutchison Port Holdings Trust 170,911 0.15

Food Producers (0.11%) 197,153 0.17 366,440 WH 197,153 0.17

Personal Goods (0.40%) 332,948 0.29 950,740 Li & Fung 162,121 0.14 565,950 Texwinca 170,827 0.15

Food & Drug Retailers (0.22%) 203,596 0.17 29,500 Dairy Farm International 203,596 0.17

General Retailers (0.31%) 236,456 0.20 300,100 Chow Tai Fook Jewellery 236,456 0.20

Travel & Leisure (0.54%) 169,443 0.15 110,550 Melco International Development 169,443 0.15

Financial Services (0.38%) 483,693 0.42 793,510 Value Partners 483,693 0.42

Page 117


INDIA (0.87%) 516,468 0.44

Travel & Leisure (0.37%) 291,329 0.25 13,840 Makemytrip 291,329 0.25

Banks (0.50%) 225,139 0.19 3,120 HDFC Bank ADS 225,139 0.19

INDONESIA (0.74%) 847,157 0.73

Construction & Materials (0.34%) 446,487 0.38 878,610 Semen Indonesia 446,487 0.38

Technology Hardware & Equipment (0.40%) 400,670 0.35 827,663 Link Net Tbk PT 178,887 0.16 769,600 Tower Bersama Infrastructure 221,783 0.19

JAPAN (10.06%) 11,226,365 9.64

Chemicals (0.31%) 521,001 0.45 3,100 Nitto Denko 178,168 0.15 2,758 Okamoto Industries 115,444 0.10 10,900 UBE Industries 227,389 0.20

Industrial Metals & Mining (0.17%) 219,045 0.19 9,000 Dowa Mining 219,045 0.19

Construction & Materials (0.10%) 180,005 0.15 7,500 Taiheiyo Cement 180,005 0.15

Industrial Transportation (0.57%) 249,226 0.21 21,500 Seino 249,226 0.21

Automobiles & Parts (0.21%) 308,499 0.27 6,810 Toyota Industries 308,499 0.27

Beverages (0.23%) 56,757 0.05 2,770 Coca-Cola Bottlers 56,757 0.05

Food Producers (0.10%) 175,575 0.15 13,340 Ajinomoto 175,575 0.15

Leisure Goods (1.09%) 1,293,811 1.11 55,300 COLOPL 274,782 0.24 2,012 Nintendo 563,173 0.48 9,700 Sony 455,856 0.39

Pharmaceuticals & Biotechnology (0.30%) 344,124 0.29 18,600 Nichi-iko Pharmaceutical 211,968 0.18 5,000 Tsumura 132,156 0.11

General Retailers (0.61%) 727,980 0.63 26,100 Dena 353,120 0.31 63,770 Rakuten 374,860 0.32

Mobile Telecommunications (0.30%) 548,014 0.47 7,080 Softbank 548,014 0.47

Financials (0.59%) 801,530 0.69 50,200 Dai-ichi Life 801,530 0.69

Page 118


Banks (1.86%) 2,132,733 1.83 15,030 Bank of Kyoto 600,711 0.52 82,100 Concordia Financial 308,733 0.26 100,700 Resona 433,949 0.37 25,500 Sumitomo Mitsui Financial 789,340 0.68

Non-Life Insurance (0.51%) 639,007 0.55 25,000 MS&AD Insurance 639,007 0.55

Real Estate Investment & Services (0.60%) 678,443 0.58 54,900 Daibiru 443,661 0.38 18,000 Mitsubishi Estate 234,782 0.20

Financial Services (0.73%) 562,165 0.48 14,000 Japan Exchange 187,050 0.16 102,400 Nomura 375,115 0.32

Software & Computer Services (0.97%) 897,758 0.77 7,769 Internet Initiative Japan 120,898 0.10 12,100 Square-Enix 383,127 0.33 8,000 Trend Micro 393,733 0.34

Technology Hardware & Equipment (0.81%) 890,692 0.77 61,400 Konica Minolta 500,334 0.43 7,000 ROHM 390,358 0.34

MACAU (0.34%) 295,546 0.25

Travel & Leisure (0.34%) 295,546 0.25 243,600 MGM China 295,546 0.25

MALAYSIA (1.32%) 1,537,133 1.32

Construction & Materials (0.15%) 311,214 0.27 938,300 IJM Corporation Berhad 311,214 0.27

General Industrials (0.00%) 317,518 0.27 1,464,600 Sime Darby Property 317,518 0.27

Industrial Transportation (0.50%) 225,900 0.19 137,600 Malaysia Airports 225,900 0.19

Travel & Leisure (0.25%) 316,203 0.27 218,500 Genting Berhad 316,203 0.27


Non-Life Insurance (0.31%) 366,298 0.32 2,584,100 Tune Protect 366,298 0.32

SINGAPORE (1.46%) 1,821,018 1.56

General Industrials (0.39%) 625,316 0.53 216,900 Fraser and Neave 226,419 0.19 102,120 Keppel 398,897 0.34

General Retailers (0.00%) 59,192 0.05 3,300 Jardine Cycle & Carriage 59,192 0.05

Page 119


Travel & Leisure (0.74%) 780,010 0.67 639,930 Genting Singapore 377,105 0.32 472,300 OUE 402,905 0.35

Real Estate Investment & Services (0.33%) 356,500 0.31 325,750 Wing Tai Holdings 356,500 0.31

SOUTH KOREA (1.59%) 2,036,303 1.75

Chemicals (0.18%) 269,993 0.23 1,070 LG Chemical 269,993 0.23

General Industrials (0.16%) 166,792 0.14 5,697 LG pref. 166,792 0.14

Industrial Transportation (0.13%) 205,908 0.18 2,300 Hyundai Glovis 205,908 0.18

Support Services (0.25%) 256,250 0.22 20,200 Kginicis 256,250 0.22

Leisure Goods (0.31%) 342,948 0.29 7,200 DoubleUGames 342,948 0.29

Health Care Equipment & Services (0.00%) 56,386 0.05 1,680 Osstem Implant 56,386 0.05

Travel & Leisure (0.36%) 460,267 0.40 12,300 Kangwon Land 243,616 0.21 2,420 Samsung C&T 216,651 0.19

Life Insurance (0.09%) — —

Financials (0.00%) 137,752 0.12 2,050 Samsung Life Insurance 137,752 0.12

Technology Hardware & Equipment (0.11%) 140,007 0.12 1,858 Koh Young Technology 140,007 0.12

TAIWAN (0.37%) 431,453 0.37

Technology Hardware & Equipment (0.37%) 431,453 0.37 56,000 Advantech 319,264 0.27 60,040 ASE Technology 112,189 0.10

THAILAND (0.26%) 331,709 0.29

Banks (0.26%) 331,709 0.29 65,370 Bangkok Bank (Bangkok Alien Market) 331,709 0.29

PACIFIC BASIN (0.88%) 410,139 0.35

AUSTRALIA (0.88%) 410,139 0.35

Industrial Metals & Mining (0.34%) 410,139 0.35 188,570 South32 410,139 0.35

Mining (0.54%) — —

Page 120


AFRICA (0.94%) 1,430,821 1.23

EGYPT (0.00%) 161,750 0.14


SOUTH AFRICA (0.94%) 1,269,071 1.09

Mining (0.29%) 506,083 0.44 29,379 Anglo American Platinum 506,083 0.44

Media (0.30%) 478,126 0.41 2,900 Naspers 'N' 478,126 0.41

Banks (0.35%) 284,862 0.24 34,710 Absa 284,862 0.24

FORWARD CURRENCY CONTRACTS (0.05%) 55,376 0.05 $4,824,327 Forward Currency Contract 18/10/2018: US Dollar 4,824,327 vs Euro 4,798,205 26,122 0.03 $1,785,450 Forward Currency Contract 18/10/2018: US Dollar 1,785,450 vs Japanese Yen 1,759,504 25,947 0.02 £2,744,629 Forward Currency Contract 18/10/2018: UK Sterling 2,744,629 vs Euro 2,741,322 3,307 —


Net other assets 759,035 0.65 Net assets 116,402,950 100.00




Page 121

River and MercantileGlobal High Alpha FundStatement of Total Returnfor the period ended 30 September 2018



£ £

1 April 201730 September 2017£ £





5,838,632 1,756,987 (83,125) (486)

1,673,376(121,044)

1,552,332

7,390,964 (1,552,552)

5,838,412

4,585,435 1,475,134(96,423) (748)

1,377,963(117,234)

1,260,729

5,846,164 (1,259,406)

4,586,758


£ £

1 April 201730 September 2017£ £




111,029,349 2,695,632(4,697,440)

(2,001,808) (4,528)

5,838,412 1,541,525

116,402,950

103,517,857 5,208,278 (3,186,584)

2,021,694 6,250

4,586,758 1,273,899

111,406,458

Page 122

River and MercantileGlobal High Alpha FundBalance Sheet as at 30 September 2018


31 March 2018£ £


Total assets

LIABILITIESCreditors Bank overdraftsOther creditorsTotal other liabilities

Total liabilities


115,643,915

1,881,72274,451

1,956,173

117,600,088

(333,906)(863,232)

(1,197,138)

(1,197,138)

116,402,950

110,524,649

655,024193,367

848,391

111,373,040

(152,669) (191,022)

(343,691)

(343,691)

111,029,349

Page 123

River and MercantileGlobal High Alpha FundFund Facts

Distribution informationB-Class Accumulation sharesThe distribution payable on 30 November 2018 is 3.1660p (2017: is 2.4438p) per share for accumulation shares.

Z-Class Accumulation sharesThe distribution payable on 30 November 2018 is 8.9213p (2017: is 7.1965p) per share for accumulation shares.

Performance records

Net asset values

The sub-fund launched on 12 August 2016.


£


p

Sharesin issue

31 March 2017B-Class Accumulation sharesZ-Class Accumulation shares31 March 2018B-Class Accumulation sharesZ-Class Accumulation shares30 September 2018B-Class Accumulation sharesZ-Class Accumulation shares

118,561103,399,296

313,112110,716,237

335,377116,067,573

296.84595.71

312.02630.84

331.73673.12

39,94117,357,181

100,35117,550,643

101,10017,243,253

Page 124

River and MercantileGlobal High Alpha Fund


Operating Charges












• Global Equity Risk: the sub-fund invests in global equities which can carry additional risks such as exchange raterisk, political and economic upheaval, lack of information, low market liquidity and the potential lack of strict financialcontrols.

• Emerging Markets Risk: the risk related to investing in countries that have less developed political, economic,legal and regulatory systems, and that may be impacted by political/ economic instability, lack of liquidity ortransparency, or safekeeping issues.



1 2 3 4 5 6 7

..........................................................................

30 September 2018

B-Class Accumulation sharesZ-Class Accumulation shares

0.94%0.19%

Page 125

River and MercantileGlobal High Alpha Fund

Summary of Largest Portfolio ChangesThe table below shows the top ten purchases and sales for the period.Purchases £ Sales £

Dropbox 560,365Spotify Technology 480,051Chemring 443,608Tencent 430,422ProPetro 407,427Snap 378,616Playtech 373,606CGG 370,565Ecorodovias Infraestrutura e Logistica 354,178Sime Darby Property 345,028

Tiffany 1,020,630Web.com 635,092Pfizer 601,963Ocado 493,732ASTM 473,547Vale 463,622Japan Airport Terminal 461,649Hispania Activos Inmobiliarios 445,120Royal Dutch Shell 439,317Sands China 385,587

Page 126

Other Information

Subscription and redemption applications for shares issued by the sub-funds should be received by 11 a.m. to ensureinclusion in the following 12 noon valuation point.

With effect from 31 March 2011 the ACD at its discretion may apply the Tax Elected Fund (TEF) rules as reflected inthe Principal Prospectus.

From 1 June 2015, in order for the River and Mercantile Asset Management LLP to rely on the Delivery versusPayment client money exemption in connection with the creation and redemption of shares within the sub-funds ofRiver and Mercantile Funds ICVC, River and Mercantile Asset Management LLP must obtain clients’ written consent.Please refer to River and Mercantile Asset Management LLP’s Terms of Business for Professional Investors dated 1 June 2015 for further details.

The Industry Classification Benchmark is a joint product of FTSE International Limited and Dow Jones Indexes, alicensed trademark of CME Group Index Services LLC (”Dow Jones Indexes”), and has been licensed for use. “FTSE”is a trade and service mark of London Stock Exchange and The Financial Times Limited. “Dow Jones” and “DowJones Indexes” are service marks of Dow Jones Trademark Holdings, LLC. FTSE and Dow Jones Indexes and theirrespective licensors and affiliates do not accept any liability to any person for any loss or damage arising out of anyerror or omission in the ICB.

The Global Industry Classification Standard ("GICS") was developed by and is the exclusive property and a servicemark of MSCI Inc ("MSCI") and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P") and islicensed for use by River and Mercantile Asset Management LLP. Neither MSCI, S&P nor any third party involved inmaking or compiling the GICS or any GICS classifications makes any express or implied warranties or representationswith respect to such standard or classification (or the results to be obtained by the use thereof), and all such partieshereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for aparticular purpose with respect to any of such standard or classification. Without limiting any of the foregoing, in noevent shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICSclassifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (includinglost profits) even if notified of the possibility of such damages.

Page 127

Directory

The Open-Ended River and Mercantile Funds ICVCInvestment Company 30 Coleman Street London EC2R 5AL

(authorised and regulated by the Financial Conduct Authority)

Registered in England The Company is incorporated in England and Wales with registered number IC000489.

The Authorised Corporate River and Mercantile Asset Management LLPDirector (ACD) 30 Coleman Street London EC2R 5AL


Registered and Head Office of the Company 30 Coleman Street London EC2R 5AL

Investment Manager of River and Mercantile Investments Limited (formerly known as P-solveRiver and Mercantile Investments Limited)Dynamic Asset Allocation Fund 30 Coleman Street London EC2R 5AL


Depositary The Bank of New York Mellon (International) Limited One Canada Square London E14 5AL


Administrator and Registrar The Bank of New York Mellon (International) Limited One Canada Square London E14 5AL


The Independent Auditors PricewaterhouseCoopers LLP 7 More London Riverside London, SE1 2RT

Documents

River and Mercantile Funds ICVC Interim Long Report for the … · 30-09-2018 · sourcebook (the COLL) and also an umbrella company for the purposes of the OEIC Regulations. The