WAVERTON MULTI-ASSET INCOME FUND P GBPFUND FACTSHEET - AS AT 31 JANUARY 2020

OBJECTIVES

INVESTMENT STYLE

The Fund has a multi-asset structure and invests in a portfolio of direct equities, bonds and alternative strategies, and may use open-ended funds and ETFs to gain exposure to the same asset classes. The fund will maintain a relatively concentrated portfolio with a high degree of flexibility.

FUND AIM

The investment objective of the Waverton Multi-Asset Income Fund is to

provide holders with a reasonable level of income and maintain the real

value of the capital over the medium to long term. The yield of the Fund

may alter as interest rate and market conditions change.

Risk Warning: Past performance is no guide tofuture performance. The value of holdings mayfall as well as rise and investors may not getback their initial investment.Important information: Performance displayedis for the P Share Class. Performance iscalculated on a NAV to NAV basis and doesnot take into account any initial fees.Performance is displayed net of fees andassumes income is reinvested.

Period 1 Month 3 Months YTD 1 Year 3 Years 5 Years Inception Oct 14

Portfolio (%) 1.2 3.5 1.2 11.7 15.0 31.4 41.1

Benchmark (%) 0.2 0.8 0.2 4.6 15.1 23.4 23.1

Average Peer Group (%) -0.1 2.4 -0.1 9.1 13.4 25.5 35.0

Quartile 1 1 1 1 2 1 1

DISCRETE CALENDAR YEAR PERFORMANCE

Period 2019 2018 2017 2016 2015

Fund (%) 12.5 -3.3 4.7 12.6 3.6

Benchmark (%) 3.8 4.6 5.4 4.1 2.7

PERFORMANCE

PERFORMANCE SINCE INCEPTION

PORTFOLIO SUMMARY

TOP 10 HOLDINGS

Waverton Sterling Bond Fund 'A' Inc £ 4.6%

US Treasury 2.25% 15/11/2027 $100/$100 4.6%

iShares MSCI Far East ex Japan Fund £ UCITS ETF 4.5%

AT&T Inc Com US$1.00 3.1%

JP Morgan Chase Com US$1 (US quote) 3.0%

Microsoft Corporation Com US$0.00000625 2.8%

American Express Co Com US$0.20 2.8%

BioPharma 2.7%

Invesco Physical Gold ETC 2.7%

Starwood European Real Estate Finance Limited 2.3%

Total 33.1%

Sources: Waverton Investment Management, Morningstar.

Asset %

Projected

Yield (%)

Equities 48.3% 1.5%

Alternatives 22.5% 1.0%

Fixed Income 18.9% 0.7%

Cash 10.3% 0.0%

Total 100.0% 3.1%

Fund Benchmark Morningstar Peer

100

110

120

130

Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 20

100.00

110.00

120.00

130.00

96.25

100.00 97.76 96.82

100.00 97.78 97.6497.08 105.65100.00 108.8499.83 98.71 106.07 111.19112.21109.48101.83100.1099.28 106.39 114.26112.85110.13 117.69102.46100.38 99.43 104.90106.81

115.54 114.41113.10110.35 121.21100.39 100.08 99.77105.12 107.24 115.77 114.49113.40110.47 121.76100.64 100.5299.90 105.81107.43120.52116.01115.42113.85111.33 122.02101.55100.68 100.23105.83 107.55 120.96117.01 115.72114.04111.87 122.02104.48102.57100.81 100.47 108.19107.56 117.14117.09114.20114.91 122.38102.88101.12 101.01 112.26107.87 119.23117.35114.87115.97 122.41101.24101.21 113.05108.97 119.24118.47 117.59115.01118.76 122.67101.63 101.61 113.06109.87 120.14119.77117.70116.05 122.88101.93 101.79 114.33110.27110.11 121.98 120.72117.98116.56 116.36 123.39122.94102.70101.95 114.95111.23 121.70118.09117.43116.76116.47 125.11123.13103.09102.14 115.04111.72 123.10118.17117.57 131.39123.47103.21102.37 116.32111.85 123.33118.26117.68 125.02103.31102.48 116.69113.99 126.13118.28117.89

103.84102.66 117.15114.20 126.96118.61118.36117.92104.05102.71 117.41114.22 128.67118.76118.46118.34

103.16 117.50 129.45119.26118.74117.67 129.67123.07119.39

129.81123.07119.55130.69

ASSET ALLOCATION

COMMENTARY

A volatile start to the year. Equities continued to rally into overbought territory the first half of the month, making them

vulnerable to negative news that might catalyse a pull-back. Coronavirus acted as that catalyst, but possibly only briefly.

At 361 deaths and over 17,000 cases to date, the virus has metastasised exponentially faster than SARS did in 2003. If we

use SARS as a guide, we might expect Chinese GDP growth to fall to 3-4% from its current c.6%. Domestic Chinese sales

growth is likely to slow down or possibly decline, and additional holiday days following the normal end to Chinese New

Year celebrations will likely have a knock-on impact to the region and countries exporting to China (e.g. Europe).

Naturally, there are differences to note between SARS in 2003 and Coronavirus today. In 2003, China represented c.20%

of global growth versus c.33% today, and the make-up of that growth has shifted; from manufacturing and trade to

consumption – both domestic and international. Hubei accounts for 4.6% of China’s GDP and just 1.3% of China’s total

exports, versus Guangdong and Beijing, which were hit in 2003, which represented 15.2% and 37.4% of GDP and Exports

at the time. Policy response has been faster in 2020 than it was in 2003, although we understand from speaking to contacts

in the region that the actual numbers are underreported.

We note that the PBOC has already injected 1.2 trillion yuan via reverse repos on Monday, and we expect that policy

makers will continue to step in where necessary to avoid systemic fall-out from the virus. Most investors appear to be

viewing the recent volatility in the same manner: a survey by Citibank suggests that 50% of respondents view the current

sell-off as a buy-the-dip opportunity. We are holding off from doing so for the time being - the policy response, though

welcome, seems disproportionately large for the relatively small number of cases in a relatively small geography, and we

wonder whether the inevitable slowdown could become systemic (via the credit markets, principally).

The Fund returned 1.2% in January, driven by strong returns from EDP, L3 Harris, Microsoft and our 2027 US Treasury.

Drags on performance included our beta position in Asia ex Japan, Royal Dutch Shell, Chevron and BT. At the end of the

month the Fund is 5% cheaper than the market on a price to cash flow basis, and 30% cheaper on price to book, with a

45% higher dividend yield.

FUND DETAILS

FUND FACTS

Launch Date 16th October 2014

Morningstar Sector GBP Moderate Allocation

Benchmark CPI +2.5%

Fund Size £59.2m

No. of Holdings 57

Domicile Ireland

Sedol BQ1KPQ1

Bloomberg Code WAVCIPG ID

Fund Type OEIC

Base Currency GBP

Other Currencies None

Ex Dividend Dates Jan 31st, Apr 30th, Jul 31st and Oct 31st

RISK PROFILE

FUND INFORMATION

Share class ISIN Minimum investment AMC INC/ACC NAV Historic yield (%) Ongoing charge (%)

B GBP IE00BQ1KPP02 1,500 GBP 0.75% INC 11.15 3.54% 1.15%

P GBP IE00BQ1KPQ19 1,500 GBP 0.40% INC 11.43 3.53% 0.80%

Note: The Multi Asset Income Fund P share class is only available through Financial Advisers.

CONTACT DETAILS

MARKETING DIRECTOR

Mark Barrington

mbarrington@waverton.co.uk

+44 (0) 20 7484 2058

www.waverton.co.uk

ADMINISTRATOR

RBC Investor Services

Dublin_TA_Customer_Support@rbc.com

FUND MANAGER

James Mee - CFA

FUND MANAGER

Luke Hyde-Smith - CFA

Risk Warning: Past performance is no guide to future performance. The value of holdings may fall as well as rise. All financial investments involve an elementof risk. Clients should note that yields on investments may fall or rise dependent on the performance of the underlying investment and more specifically theperformance of financial markets. As such, no warranty can be given that the expressed yields will consistently attain such levels over any given period.Currency movements may also affect the value of the investment. If the currency in which the past performance is displayed differs from the currency of thecountry in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if convertedinto your local currency.

For full details of investment risks please refer to the Prospectus. A copy of the full prospectus and the KIID is available from Waverton InvestmentManagement or Administrator, RBC Investor Services (Ireland). Sources: Waverton, Morningstar.

Issued by Waverton Investment Management Limited. Registered in England No 2042285. Registered Office: 16 Babmaes Street, London, SW1Y 6AH. Authorised and Regulated by the Financial Conduct Authority.