WAVERTON INVESTMENT FUNDS PLC
HALF YEARLY
FINANCIAL STATEMENTS
Unaudited For the half financial year ended 31 October 2015
(Waverton Investment Funds Plc is an investment company with variable capital incorporated with limited liability in Ireland under registration number 383680
and established as an umbrella fund with segregated liability between sub-funds)
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
1
Table of Contents
Background of the Company 2 Investment Objectives, Investment Manager‟s Reports, Top 5 Investments, Portfolio Analysis and Portfolio Investments
Waverton Asia Pacific Fund 3
Waverton Global Equity Fund 8 Waverton UK Fund 14
Waverton European Fund 20
Waverton Sterling Bond Fund 21
Waverton Equity Fund 27
Waverton Global Bond Fund 31 Waverton Global Equity Wealth Creation Fund 37
Waverton Alternatives Fund 46
Waverton Cautious Income Fund 50
Statement of Financial Position 56 Statements of Comprehensive Income 60
Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares 64
Notes to the Financial Statements 68
Statements of Changes in Composition of Portfolio 110
Directors and Other Information 134
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Background of the Company
2
Waverton Investment Funds Plc (the “Company”) is an open-ended investment company with variable capital, incorporated
on 25 March 2004 in Ireland as a public limited company pursuant to the Companies Act 2014 and authorised by Central
Bank of Ireland (the “Central Bank”) as an investment company pursuant to the European Communities (Undertakings for
Collective Investment in Transferable Securities) Regulations, 2011, as amended (the “Regulations”).
Except where the context otherwise requires, defined terms shall bear the meaning given to them in the prospectus dated 26
September 2014, which may be amended from time to time (the “Prospectus”).
The Company is an umbrella type open-ended investment company with segregated liability between sub-funds. The
Company currently has ten sub-funds as follows (individually a “Fund”, collectively the “Funds”):
Sub Fund Launched Operations
Waverton Asia Pacific Fund (“Asia Pacific Fund”) 1 November 2005
Waverton Global Equity Fund (“Global Equity Fund”) 1 April 2007
Waverton UK Fund (“UK Fund”) 1 April 2007
Waverton European Fund (“European Fund”)1 1 April 2007
Waverton Sterling Bond Fund (“Sterling Bond Fund”) 12 January 2010
Waverton Equity Fund (“Equity Fund”) 12 January 2010
Waverton Global Bond Fund (“Global Bond Fund”) 12 January 2010
Waverton Global Equity Wealth Creation Fund (“Global Equity Wealth Creation Fund”) 6 March 2014 Waverton Alternatives Fund (“Alternatives Fund”) 9 March 2014 Waverton Cautious Income Fund (“Cautious Income Fund”) 6 October 2014
As at 31 October 2015, one or more of the following classes of shares are available in respect of the Funds: Class A Euro,
Class A Euro Acc, Class A US$, Class A Stg£, Class B Euro, Class B US$, Class B Stg£, Class P Stg£, Class I Euro Acc,
Class I US$, Class I Stg£ Class A US$ Institutional, Class B US$ Institutional, Class M Euro and Class M Stg£ in
accordance with Schedule IV of the Prospectus. Further classes of shares may be issued in accordance with the requirements
of the Central Bank.
Citibank Europe plc (the “Administrator”) determines the net asset value per share of each class of each fund on each
Dealing Day. The valuation point is 12 noon (Irish time) on each dealing day (except for the last dealing day of each calendar
quarter when assets are valued at the close of the regular trading session of the London Stock Exchange and securities traded
on the London Stock Exchange will be valued using post-auction prices, or such other time as the directors of the company
may decide and notify to its shareholders).
Other information
Annual report and audited financial statements and unaudited half-yearly financial statements are available to Shareholders at
the registered office of the Company and are sent to shareholders at their registered addresses by post (or where consented to
by the relevant shareholder, shall be sent electronically to such shareholder).
1On 30 June 2015, the Waverton European Fund was merged with the Odey European Focus Fund and thereafter it ceased to
be a sub-fund of the Waverton Investment Funds plc.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Asia Pacific Fund
3
The investment objective of the Asia Pacific Fund (the “Fund”) is to achieve capital growth and generate an income through
diversified investment in equities of Asian Pacific companies (excluding the equities of Japanese companies).
Investments may be made in ordinary shares (including ADRs, EDRs and GDRs), preferred shares and up to 25% of the total
assets of the Fund may be invested in debt securities convertible into shares. Investments will not be concentrated in any one
Asian-Pacific country or in any one industrial or economic sector. The securities in which the Fund may invest will be quoted
or traded on one of the regulated markets set out in Schedule I of the Prospectus. The Fund may not invest more than 10% of
its net asset value in collective investment schemes generally, of which up to 5% of its net asset value may be invested in
collective investment schemes investing in Asian-Pacific equities. These collective investment schemes will be established as
UCITS. The Fund may utilise any of the financial derivative instruments described in the Prospectus for efficient portfolio
management purposes. Furthermore, the Fund may hold ancillary liquid assets.
The base currency of the Fund is U.S. Dollar.
The performance benchmark against which the Fund‟s performance is measured is the MSCI AC Asia Pacific Ex Japan
Index (total return)*.
Class A US$, Class A Euro and Class A Stg£ of the Fund launched on 1 November 2005. Class M Stg£ launched on 2
October 2014. Class B Euro is also available.
Investment Manager’s Report
Performance
The Fund returned -11.19% over the 6 month period ending 31 Oct 2015, outperforming the MSCI AC Asia ex Japan Index
(total return) benchmark by 4.82% (in geometric terms), which returned -16.01%. The largest negative contributions came
from Asia Satellite (-2.1%), China Meidong (-1.6%), Osim (-1.5%) and Kunlun Energy (-1.2%). The largest contributors to
performance were Peak Sport (+0.8%), Netease (+0.8%) BYD (+0.6%) and Hyundai (+0.3%).
Review
The period was a dramatic time in Asian equity markets, with the benchmark falling considerably by over 15%. The sell-off
was a result of the Peoples Bank of China unexpectedly devaluing their currency, an effective stimulus to the economy which
was interpreted as a signal that the macroeconomic environment was worsening.
An examination of the reasons behind the extreme negative contribution from Asia Satellite is appropriate: The principle
reason, we believe, for the significant sell-off in the market is due to the forced selling of Aberdeen Asset Management who
experienced significant redemptions in their funds at a time when liquidity in the stock was falling dramatically. The
investment thesis was that after the special dividend the stock would move from a price to earnings multiple of 20x (pre
dividend), down to a price to earnings ratio of 12x and then rerate up to circa 16x. What occurred was the stock further
derated down from 12x to its current level of 8x. Other than the forced selling by Aberdeen, a further reason for the derating
of the name was a poor set of results, due to a weak pricing environment generally in the satellite industry. The poor
performance from China Meidong was another case of a stock derating sharply, it sells luxury cars in China, which is judged
as vulnerable to a China macroeconomic downturn. We have been selling down our holding in Asia Satellite, but continue to
hold China Meidong.
Kunlun energy‟s share prices fell as a result of the decline in the oil price, which disrupted the economics of its LNG
distribution business which requires an oil price above $50 barrel in order for China‟s diesel engine truck drivers to justify
the conversion of their engines to take LNG.
As value investors, we would hope that in the majority of cases, the businesses we have invested in are strong enough, such
that declines in the share prices of those holdings, represent a buying opportunity, rather than a change in the fortunes of the
businesses.
In this regard we have sold or are selling some of the largest positive contributors to the fund after their prices reached their
exit multiples, such as Peak Sports, BYD and Hyundai.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Asia Pacific Fund (continued)
4
Investment Manager’s Report (continued)
Outlook
Whilst the outlook in China is still uncertain, the fund has been marginally repositioned to take advantage of any rebound in
sentiment towards the region, through the accumulation of an 8% position in a collection of Chinese banks. In other areas, the
fund remains similarly positioned to the previous periods, with a large underweight position in the commodities sector and a
bias towards high dividend paying, defensive stocks.
The largest macro risk we see a the moment is a possible sharp decline in the currencies of ASEAN (South East Asian)
countries when the US rate rises start and /or an inflation shock in the US resulting in a dramatic increase in US rate
expectations.
W Hanbury
November 2015
*References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its
benchmark.
Asia Pacific Fund Top 5 Investments as at 31 October 2015
Shares/Par Security Description Fair Value USD % Net Assets
506,380 CK Hutchison Holdings Ltd. 6,958,843 7.63%
48,950 NetEase, Inc. 6,894,118 7.56%
2,031,288 Great Eagle Holdings Ltd. 6,631,365 7.27%
228,000 Melco Crown Entertainment Ltd. 4,195,200 4.60%
137,800 JD.com Inc. 3,814,304 4.18%
28,493,830 31.24%
Asia Pacific Fund Portfolio Analysis as at 31 October 2015 Fair Value USD % Total Assets
Transferable securities and money market instruments admitted to official
stock exchanges or traded on a regulated market 93,050,110 93.72%
Collective Investment Schemes 397,490 0.40%
OTC financial derivative instruments 18 0.00%
Cash 5,669,206 5.71%
Other assets 170,898 0.17%
Total assets 99,287,722 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Asia Pacific Fund (continued)
5
Portfolio Investments as at 31 October 2015
Shares/Par Security description
Fair Value
USD % Net Assets
Investment Fund
Equity Fund (2015*: 2.05%, $2,068,320)
59,336 PXP Vietnam Fund Ltd. 397,490 0.44%
Total Investment Fund (Cost $372,021) 397,490 0.44%
Equity Investment
Apparel (2015*: -%, $-)
7,390,172 Peak Sport Products Co., Ltd. 2,221,884 2.44%
Auto Manufacturers (2015*: 2.66%, $2,679,418)
126,000 Qingling Motors Co., Ltd. 40,321 0.04%
Banks (2015*: 4.82%, $4,860,910)
4,765,000 Agricultural Bank of China Ltd. 1,955,244 2.14%
4,170,000 Bank of China Ltd. 1,969,373 2.16%
2,684,000 China Construction Bank Corp. 1,946,389 2.13%
3,018,000 Industrial & Commercial Bank of China Ltd. 1,919,893 2.10%
7,790,899 8.53%
Biotechnology (2015*: -%, $-)
2,667,200 Cordlife Group Ltd. 2,571,577 2.82%
Distribution/Wholesale (2015*: -%, $-)
121,200 Jardine Cycle & Carriage Ltd. 2,818,366 3.09%
Healthcare-Services (2015*: -%, $-)
2,710,100 Bangkok Dusit Medical Services PCL 1,448,004 1.59%
Holding Companies-Diversified (2015*: 12.24%, $12,353,058)
2,173,300 Boustead Singapore Ltd. 1,482,290 1.63%
90,200 Jardine Matheson Holdings Ltd. 2,713,216 2.97%
7,073,600 Jasmine Broadband Internet Infrastructure Fund 2,048,842 2.25%
6,550,000 Noble Group Ltd. 2,362,342 2.59%
8,606,690 9.44%
Internet (2015*: 5.39%, $5,436,786)
137,800 JD.com Inc. 3,814,304 4.18%
48,950 NetEase, Inc. 6,894,118 7.56%
10,708,422 11.74%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Asia Pacific Fund (continued)
6
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
USD % Net Assets
Equity Investment (continued)
Investment Companies (2015*: -%, S-)
3,232,200 Asian Pay Television Trust 1,823,625 2.00%
Lodging (2015*: -%, $-)
228,000 Melco Crown Entertainment Ltd. 4,195,200 4.60%
1,590,000 SJM Holdings Ltd. 1,325,380 1.45%
1,256,800 Wynn Macau Ltd. 1,732,002 1.90%
7,252,582 7.95%
Oil & Gas Services (2015*: 6.76%, $6,818,193)
3,715,000 Kunlun Energy Co., Ltd. 3,029,610 3.32%
120,073 Reliance Industries Ltd. 3,440,091 3.77%
6,469,701 7.09%
Real Estate (2015*: 9.95%, $10,036,614)
2,031,288 Great Eagle Holdings Ltd. 6,631,365 7.27%
Retail (2015*: 17.16%, $17,320,380)
17,850,000 China Meidong Auto Holdings Ltd. 2,119,029 2.32%
506,380 CK Hutchison Holdings Ltd. 6,958,843 7.63%
2,263,517 OSIM International Ltd. 2,198,532 2.41%
1,991,220 Robinsons Retail Holdings, Inc. 3,271,205 3.59%
14,547,609 15.96%
Semiconductors (2015*: 5.15%, $5,205,854)
229,448 Kulicke & Soffa Industries Inc. 2,425,265 2.66%
2,523 Samsung Electronics Co., Ltd. 3,036,719 3.33%
5,461,984 5.99%
Technology Hardware & Equipment (2015*: 8.86%, $8,940,392)
2,550,000 Hana Microelectronics PCL 2,473,945 2.71%
Telecommunication (2015*: 6.12%, $6,174,776)
2,151,700 Asia Satellite Telecommunications Holdings Ltd. 3,198,491 3.51%
14,300,000 Jasmine International PCL 2,251,930 2.47%
278,500 VTech Holdings Ltd. 3,378,035 3.70%
8,828,456 9.68%
Total Equity Investment (Cost $101,764,995) 89,695,430 98.34%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Asia Pacific Fund (continued)
7
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
USD % Net Assets
Preferred Shares
Semiconductors (2015*: 3.05%, $3,081,173)
3,200 Samsung Electronics Co., Ltd. 3,354,680 3.68%
Total Preferred Shares (Cost $3,052,620) 3,354,680 3.68%
Total financial assets at fair value through profit or loss (Cost
$105,189,636) 93,447,600 102.46%
Unrealised Appreciation on Forward Currency Contracts (2015*:-, $-)
Currency Principal
Currency Principal Current Settlement Unrealised
Appreciation
USD
% Net Assets
Purchased Amount Sold Amount Fair Value Date
USD 5,216 SGD (5,198) 7,279 2-Nov-15 18 0.00%
Total Unrealised Appreciation on Forward Currency Contracts
18 0.00%
Other Liabilities in Excess of other Assets (2,239,512) (2.46%)
Net Assets Attributable to Holder of Redeemable Shares 91,208,106 100.00%
*Comparatives as at 30 April 2015.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Fund
8
The investment objective of the Global Equity Fund (the “Fund”) is to achieve capital growth through investment in a
focussed list of equities on a global basis.
At least two thirds of the total assets of the Fund (without taking into account ancillary liquid assets) is invested in ordinary
shares (including ADRs, EDRs and GDRs) and preferred shares worldwide. The Fund may invest up to one third of its total
assets (excluding ancillary liquid assets) in debt securities convertible into shares (not exceeding 25% of the total assets of
the Fund), and in fixed income securities, such as OECD government or supranational debt securities, corporate bonds,
bankers‟ acceptances and commercial paper rated investment grade or better or deemed by Waverton Investment
Management Limited (the “Investment Manager”) to have an equivalent rating. Not more than 20% of the net asset value of
the Fund will be invested in securities of issuers established in emerging market countries. The Investment Manager will not
concentrate investments in any one country or region or in any one industrial or economic sector. The Fund may utilise any
of the financial derivative instruments described in the Prospectus for efficient portfolio management purposes. The
securities in which the Fund may invest will be quoted or traded on one of the regulated markets set out in Schedule I of the
Prospectus. The Fund may not invest more than 10% of its net asset value in collective investment schemes generally of
which up to 5% of its net asset value may be invested in collective investment schemes investing in equity markets globally.
Those collective investment schemes which invest in equity markets globally will be established as UCITS. Furthermore, the
Fund may hold ancillary liquid assets.
The base currency of the Fund is Sterling.
The performance benchmark against which the Fund‟s performance is measured is the MSCI World Free Net Total Return
Index*.
Class A Stg£ and Class A US$ Shares of the Fund launched on 30 March 2007. Class B US$ Shares are also available.
Investment Manager’s Report
Performance The Fund fell -8.5% over the six months versus the MSCI World Free Net Total Return Index which fell -3.9%. Having
underperformed as the market gradually fell in the three months to the end of July, the fund made back this underperformance
during the period of market volatility in August, only to underperform in the strong October rally. The fund suffered from
poor stock selection, especially in the industrials sector where attractive valuations failed to protect against negative
momentum.
Review The MSCI World Free Net Total Return Index fell -3.9% over the six months in Sterling terms. Having peaked in late May,
the index sold off sharply in August before recovering the majority of those losses in October.
The US was the best performing major market, with the S&P 500 falling -1% over the six month period in Sterling terms.
The US Dollar continued to be strong especially against emerging market currencies. Over the six month period, it
appreciated 28% against the Brazilian Real, and 23% against the Russian Rouble. Economic data from the US continues to
surprise on the upside; the futures market now suggests that an increase in the Fed Funds rates will occur within the next six
months. Over the six month period, the MSCI Emerging Markets index fell 20% in sterling terms as stocks in the materials
and commodities sectors underperformed and emerging market currencies suffered steep declines.
On a sector basis, the consumer staples sector was the best performing sector over the six months period, closely followed by
the technology sector. Large consumer technology stocks enjoyed strong periods of performance, with Amazon returning
47% over the period in sterling terms as sales and earnings exceeded analysts‟ estimates. Energy was the worst performing
sector, falling -19% over the six month period as crude oil prices declined to test new lows in August. The materials sector
also performed poorly as commodity prices declined.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Fund (continued)
9
Investment Manager’s Report (continued)
Review (continued)
Stocks which contributed positively to performance included:
Tech Data, the technology distributor, rose 28% over the six months in sterling terms following positive Q3 results. The
company is focusing on margins and cash generation and has exited businesses in Latin America where it could not generate
adequate returns. We believe that the valuation pay-off remains attractive, and that the focus of management on cash
generation is an appropriate wealth creating strategy given that this is a mature business in our Life Cycle framework.
Bechtle, the German IT consulting and services company rose 27% in sterling terms over the period. The company is in the
Compounding part of the Life Cycle, we see good long-term growth potential with management‟s market share gain strategy
an opportunity to create significant value for shareholders.
IT Holdings Corp, a Japanese IT services business, rose 25% over the six months in sterling terms. The company covers a
broad range of IT systems integration, outsourcing and data services. It is a mature business, and our original thesis was
based on management‟s focus on generating cost and revenue synergies across its 50+ businesses, aiming to improve cash -
flow return on investment and enable higher growth. Management‟s recent announcement of an additional 3 year plan
including more aggressive restructuring and integration of business units has made this investment opportunity even more
attractive.
Detractors from performance included:
Cummins, which designs and manufactures large engines for use in transport and power generation, declined 24% over the
period in sterling terms following disappointing results which reported a slowdown in growth. We reduced our position prior
to the announcement of Q3 results over concerns about the company‟s prospects. The company is the leading high power
diesel engine manufacturer globally. In time, engines wear out and new environmental legislation on emissions is also
driving an upgrade cycle. The company has been hit by the slowdown in emerging markets and the pull back in oil prices
which in the short term reduces the incentive to upgrade to more fuel efficient engines.
International Paper, the US listed paper and packaging company, declined 20% over the six month period in sterling terms.
The fall in the share price is the result of the recent weakness in paper, and in particular, container board prices. However, we
still believe the long-term prospects for the company are attractive, with management pursuing an appropriate wealth creation
strategy for their business; focussing on generating cash, shrinking unproductive assets and improving efficiency.
Union Pacific, the North American railroad operator, declined 15% over the period in sterling terms. We had previously
reduced our position in August 2014 as the valuation pay-off was deteriorating. The company has been hit by a structural
decline in coal volumes shipped due to lower demand for coal in electricity generation in the USA. We think this will be a 3-
4 year revenue headwind, but having reviewed our position we have now added to it again on valuation grounds. We believe
the value proposition to customers remains intact and that this continues to be reflected in solid core pricing gains.
Outlook
The objective of the Fund is to achieve capital growth through investment in a focussed list of equities on a global basis.
While we are aware of the country and sector breakdown of the benchmark index, this does not dictate the construction of the
Fund and our asset allocation will tend to differ significantly from the benchmark, reflecting instead our best global ideas at
the time. Our disciplined investment process aims to outperform using a stock selection approach to identify stocks that trade
at a discount to intrinsic value. The sterling denominated MSCI World Free Net Total Return Index is the benchmark
comparison against which the performance of the Fund is measured.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Fund (continued)
10
Investment Manager’s Report
Outlook (continued) All the holdings in the portfolio continue to pursue wealth creating business models and in cases of underperformance, have
improved in value relative to our calculations of intrinsic value. We believe that the effect of momentum on the returns in the
market continues to be strongly influenced by the loose monetary policy that is being pursued by central banks globally. As
the US economy continues to improve we expect that monetary policy will normalise over time and valuation will again
become more relevant with markets less driven by momentum as has been the case over this period.
We remain focused on identifying wealth creating companies that are attractively valued and where there is a margin of
safety in our analysis. It is our belief that successful identification of these businesses will generate above market returns
with below market risk over the long term for our clients.
W Kenney
November 2015
*References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its
benchmark.
Global Equity Fund Top 5 Investments as at 31 October 2015
Shares/Par Security Description Fair Value GBP % Net Assets
51,200 Union Pacific Corp. 3,019,025 5.75%
31,530 Berkshire Hathaway, Inc. 2,833,139 5.40%
286,045 Svenska Handelsbanken AB 2,543,342 4.85%
62,800 Toyota Motor Corp. 2,501,506 4.77%
67,200 Wells Fargo & Corp. 2,411,196 4.59%
13,308,208 25.36%
Global Equity Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP % Total Assets
Transferable securities and money market instruments admitted to official
stock exchanges or traded on a regulated market 50,365,164 95.46%
Cash 2,178,428 4.13%
Other assets 215,581 0.41%
Total assets 52,759,173 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Fund (continued)
11
Portfolio Investments as at 31 October 2015
Shares/Par Security description
Fair Value
GBP % Net Assets
Equity Investment
Apparel (2015*: 2.57%, £1,595,054)
31,180 VF Corp. 1,383,679 2.64%
Auto Manufacturers (2015*: 5.01%, £3,110,382)
62,800 Toyota Motor Corp. 2,501,506 4.77%
Banks (2015*: 9.16%, £5,684,409)
286,045 Svenska Handelsbanken AB 2,543,342 4.85%
67,200 Wells Fargo & Corp. 2,411,196 4.59%
4,954,538 9.44%
Building Materials (2015*: 4.22%, £2,618,294)
127,531 CRH Plc 2,264,313 4.32%
Computers (2015*: 1.98%, £1,228,344)
13,680 Apple, Inc. 1,074,220 2.05%
99,000 Convergys Corp. 1,693,217 3.23%
2,767,437 5.28%
Data Processing & Outsourced (2015*: 3.12%, £1,935,080)
75,418 DH Corp. 1,307,276 2.49%
Electrical Components & Equipment (2015*: 3.03%, £1,880,067)
46,503 Legrand SA 1,658,358 3.16%
Electronics (2015*: 7.58%, £4,705,903)
78,676 Avnet, Inc. 2,297,536 4.38%
32,350 Tech Data Corp. 1,516,960 2.89%
3,814,496 7.27%
Forest Products & Paper (2015*: 3.87%, £2,401,029)
63,000 International Paper Corp. 1,763,819 3.36%
Healthcare-Products (2015*: 2.37%, £1,473,857)
87,800 Nihon Kohden Corp. 1,123,514 2.14%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Fund (continued)
12
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
GBP % Net Assets
Equity Investment (continued)
Insurance (2015*: 7.91%, £4,914,650)
114,900 Admiral Group Plc 1,861,380 3.55%
31,530 Berkshire Hathaway, Inc. 2,833,139 5.40%
4,694,519 8.95%
Internet (2015*: -%, £-)
39,950 CDW Corp/DE 1,164,037 2.22%
IT Consulting & Other Services (2015*: 3.29%, £2,042,148)
32,300 Bechtle AG 1,944,844 3.71%
71,000 IT Holdings Corp. 1,153,910 2.20%
3,098,754 5.91%
Machinery-Diversified (2015*: 5.43%, £3,368,087)
28,330 Cummins, Inc. 1,907,863 3.64%
Media (2015*: 1.60%, £994,756)
453,772 Entertainment One Ltd. 1,004,197 1.91%
Oil & Gas Services (2015*: 2.79%, £1,728,324)
58,900 Canadian Natural Resources Ltd. 884,734 1.69%
37,150 Helmerich & Payne, Inc. 1,336,848 2.55%
2,221,582 4.23%
Pharmaceuticals (2015*: -%, £-)
17,500 Novartis AG 1,040,543 1.98%
6,000 Roche Holding AG 1,063,549 2.03%
2,104,092 4.01%
Retail (2015*: -%, £ -)
23,650 Casey's General Stores Inc. 1,642,310 3.13%
Semiconductors (2015*: 3.01%, £1,865,992)
192,100 ON Semiconductor Corp. 1,287,926 2.45%
106,000 Taiwan Semiconductor Manufacturing Co., Ltd. 1,506,294 2.87%
2,794,220 5.32%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Fund (continued)
13
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
GBP % Net Assets
Equity Investment (continued)
Toys/Games/Hobbies (2015*: -%, £-)
75,500 Bandai Namco Holdings, Inc. 1,217,654 2.32%
Transportation (2015*: 6.74%, £4,182,015)
47,700 Old Dominion Freight Line, Inc. 1,957,975 3.73%
51,200 Union Pacific Corp. 3,019,025 5.75%
4,977,000 9.48%
Total Equity Investment (Cost £46,381,306) 50,365,164 95.99%
Total financial assets at fair value through profit or loss (Cost
£46,381,306) 50,365,164 95.99%
Other Assets in Excess of other Liabilities 2,103,859 4.01%
Net Assets Attributable to Holder of Redeemable Shares 52,469,023 100.00%
*Comparatives as at 30 April 2015.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
UK Fund
14
The investment objective of the UK Fund (the “Fund”) is to achieve long-term capital growth and income through diversified
investment in UK equities.
Not less than two thirds of the total assets of the Fund (without taking into account ancillary liquid assets) will be invested in
securities of issuers domiciled in the UK and which are quoted on markets established in the UK. Up to one third of the total
assets of the Fund (without taking into account ancillary liquid assets) may be invested in securities of issuers carrying out
business in the UK or which are quoted on other markets. The Investment Manager will not concentrate investments in any
one industrial or economic sector or companies of a particular market capitalisation. The Fund may not invest more than 10%
of its net asset value in collective investment schemes generally, of which up to 5% of its net asset value may be invested in
collective investment schemes investing in UK equities. Those collective investment schemes which invest in UK equities
will be established as UCITS. The Fund may utilise any of the financial derivative instruments described in the Prospectus
for efficient portfolio management purposes. Furthermore, the Fund may hold ancillary liquid assets.
The base currency of the Fund is Sterling.
The performance benchmark against which the Fund‟s performance is measured is the FTSE All- Share Index (total return)*.
Class A Stg£ and Class B Stg£ shares of the Fund launched on 30 March 2007.
Investment Manager’s Report
Performance
The Fund fell 1.2% net of fees, outperforming the FTSE All-Share Index (total return) by 4.5% over the half year. This
performance was encouraging with the majority of relative return coming from positive stock selection as opposed to our
industry allocation. Some of the best performers came from the mid-cap space which has been an area of the market which
has generally held up well in the sell-off.
Review
The objective of the Fund is to achieve long-term capital growth and income through diversified investment in UK equities.
Whilst we remain conscious of sector weightings this does not dictate our investment approach and the focus remains on
identifying companies with good long term growth prospects and attractive return profiles.
The FTSE All-Share Index (total return) was down 5.7% over the 6 month period in question. The weak absolute
performance of UK equities was primarily driven by investor concern surrounding the prospect of deteriorating global
economic growth on account of the slowdown in China. The devaluation of the Yuan and market intervention from Chinese
authorities had further knock on effects in emerging markets where currencies weakened considerably and commodity prices
fell sharply. Looking at this from a UK perspective, there were, as a result, large implications on an index which is reliant on
internationally derived revenues and where there is a considerable weighting to the Energy and Commodities sectors –
together they represent circa 15% in the Index at the time of writing.
At the corporate level, in the aftermath of the fears concerning global economic slowdown there has been a period of high
volatility. This point was no better demonstrated than by the extreme case of Glencore at the end of September which fell
over 40% on fears of both distressed credit and a potential liquidity crisis. The shares consequently rebounded and were up
33% in just two days as some of these fears were assuaged. Energy stocks have remained volatile too as investors question
the prospect of a „lower for longer‟ oil price environment.
Large scale M&A continues to feature in 2015 with the most attention-grabbing proposal coming from Anheuser-Busch
InBev which has had its offer of almost $106bn to take over SABMiller accepted. In what is seemingly becoming a more
difficult environment to grow organically, one would expect to see corporates continuing to use their strong balance sheets
and the low cost of debt to acquire growth as we move into next year.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
UK Fund (continued)
15
Investment Manager’s Report (continued)
Review (continued)
Perhaps unsurprisingly, the best performing sectors were Consumer Goods and Utilities as capital flowed towards the
assumed „safe-havens‟ within the market at a time when uncertainty was elevated. To some degree our underweight in these
two sectors has been a slight detractor to relative performance but we remain comfortable with our long term view.
Again it is no shock that Oil & Gas and Basic Materials have been the worst performing sectors. The price of Brent Crude oil
fell just under 40% from its peak in early May to trough before a slight recovery towards the end of the period. Given the
high degree of leverage to commodity prices in the Oil & Gas sector, this performance is clearly understandable. The
weakness in Basic Materials is largely a function of industrial slowdown in China and an expectation of weaker demand. Our
underweight positions in these two worst performing sectors of the Index have been a helpful contributor to relative return.
Looking through the individual holdings, the key performers included Dairy Crest (the UK dairy food company) and DCC
(an international sales, marketing, distribution and support services group).
Dairy Crest was up 45.0% in absolute terms after the decision to sell its dairies business to Müller was agreed by the CMA.
The remainder of the business is made up of a number of top end brands with attractive returns and strong cash generation
while the group also has some optionality in the development of the base product for infant formula. We have reduced this
position in light of the significant increase in its share price.
DCC has continued to perform well and was up 26.6% in the half year. The company has an enviable record driving
consistent earnings growth, maintaining strong cash flows and having a solid acquisition and disposal record – the latest of
which is the purchase of Butagaz, a French liquefied petroleum gas business which strengthens DCC‟s Energy offering.
The largest detractors of performance were Johnson Matthey (the multinational specialty chemicals company), Entertainment
One (the global Film and TV acquirer and distributor) and IMI (the specialist engineering company).
Johnson Matthey fell 30.3% in what can mainly be attributed to the implications surrounding the Volkswagen scandal and
wider industrial pressure. The catalytic converters they produce for diesel engines are more profitable than those for petrol
engines and the growth prospects are more attractive. As a result of the Volkswagen news, there have been apprehensions
that the viability of diesel engines in small cars could prove unsustainable. Therefore whilst Johnson Matthey was not directly
implicated we believe the risk for investors is on the downside and as such we have exited the position.
Entertainment One is a holding which we bought opportunistically when a large shareholder sold a significant stake and the
shares dropped circa 10%. We like the strong network effect from which this business benefits as a result of its scale and we
remain excited by the growth opportunity of the continued roll out of Peppa Pig. The company has recently announced a
rights issue which saw the shares react negatively but our view is that the capital raised in order to increase the stake in Peppa
Pig is a wealth creating strategy in the long term. Therefore, although the shares are down 30.4% we continue to hold.
IMI, as a specialist industrial engineer focusing on flow control, has struggled in difficult trading conditions – falling 22.9%
over the period. The company has significant exposure to Oil & Gas, Fossil Power, Petrochemicals and Iron & Steel so its
end markets have been weak. In our opinion this has masked the continued operational improvements going on within the
business under the new CEO, Mark Selway who has looked to put more emphasis on growth.
Outlook We are of the view that equities remains the most attractive asset class for long term investors although the outlook is likely
to continue to be difficult to predict. The global economy still seems robust though it must be recognised this is in a period
where economies are receiving the benefits of ultra-low interest rates and quantitative easing (“QE”).
Despite mentioning previously that we do not focus on our sector weightings versus the benchmark, it is something that at the
same time we cannot ignore. The consensual call at present is an underweight position in Resources and Commodity stocks
but we need to be aware that there will come a time when these sectors are too heavily discounted. If and when these end
markets stabilize there are likely to be good money making opportunities.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
UK Fund (continued)
16
Investment Manager’s Report (continued)
Outlook (continued)
It is worth noting that a lot of the recent additions to the fund over the period in question have been in the Mid Cap space.
These names include Entertainment One, RPC Group and Poundland. Looking further down the market capitalization
spectrum is an area we feel that we can add more value and typically these stocks are less well covered by the analyst
universe. Currently small/mid cap balance sheets are also extremely robust with Net debt / EBITDA ratios nearing their lows
– an indication of the scope for inorganic growth.
While macroeconomic uncertainty persists principally surrounding the timing of US and UK rate hikes, the market is likely to
remain volatile and unpredictable. It is at these moments when it is best to stick to our longer term investment philosophy.
A Buchan / T Faber
Nov 2015
* References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its
benchmark.
UK Fund Top 5 Investments as at 31 October 2015
Shares/Par Security Description Fair Value GBP % Net Assets
74,500 Prudential Plc 1,132,959 4.61%
1,350,000 Lloyds Banking Group Plc 996,300 4.05%
15,250 Reckitt Benckiser Group Plc 971,120 3.95%
100,000 Babcock International Group Plc 964,500 3.92%
200,000 BT Group Plc 930,800 3.79%
4,995,679 20.32%
UK Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP % Total Assets
Transferable securities and money market instruments admitted to official
stock exchanges or traded on a regulated market 22,749,243 91.27%
Collective Investment Schemes 871,250 3.50%
Cash 1,235,242 4.96%
Other assets 66,277 0.27%
Total assets 24,922,012 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
UK Fund (continued)
17
Portfolio Investments as at 31 October 2015
Shares/Par Security description
Fair Value
GBP % Net Assets
Equity Investment
Advertising (2015*: 2.65%, £681,750)
53,800 WPP Plc 786,556 3.20%
Auto Parts & Equipment (2015*: 2.97%, £763,400)
184,000 GKN Plc 527,896 2.15%
Banks (2015*: 4.04%, £1,039,500)
100,000 HSBC Holdings Plc 508,250 2.07%
1,350,000 Lloyds Banking Group Plc 996,300 4.05%
1,504,550 6.12%
Beverages (2015*: 5.58%, £1,435,020)
12,500 SABMiller Plc 498,469 2.03%
Building Materials (2015*: 3.86%, £994,125)
46,500 CRH Plc 825,375 3.36%
Commercial Services (2015*: 3.83%, £985,000)
100,000 Babcock International Group Plc 964,500 3.92%
Distribution/Wholesale (2015*: 7.50%, £1,927,175)
15,000 DCC Plc 775,875 3.16%
238,333 Entertainment One Ltd. 527,430 2.14%
65,000 Inchcape Plc 518,375 2.11%
15,000 Wolseley Plc 568,650 2.31%
2,390,330 9.72%
Diversified Financial Services (2015*: 3.37%, £865,940)
116,000 IG Group Holdings Plc 876,380 3.57%
Food (2015*: -%, £-)
120,000 Dairy Crest Group Plc 775,500 3.16%
Forest Products & Paper (2015*: 2.69%, £692,000)
200,000 DS Smith Plc 778,600 3.17%
Household Products/Wares (2015*: 2.49%, £641,740)
15,250 Reckitt Benckiser Group Plc 971,120 3.95%
Industrial Machinery (2015*: 5.17%, £1,331,160)
50,000 IMI Plc 479,250 1.95%
274,999 Melrose Industries Plc 734,247 2.99%
1,213,497 4.94%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
UK Fund (continued)
18
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
GBP % Net Assets
Equity Investment (continued)
Insurance (2015*: 8.89%, £2,287,650)
50,000 Admiral Group Plc 810,000 3.30%
150,000 Aviva Plc 725,475 2.95%
74,500 Prudential Plc 1,132,959 4.61%
2,668,434 10.86%
Internet (2015*: 1.95%, £500,555)
130,370 Just Eat Plc 558,505 2.27%
Mining (2015*: 2.34%, £603,330)
21,000 Rio Tinto Plc 499,433 2.03%
Oil & Gas (2015*: 6.64%, £1,709,912)
71,000 BG Group Plc 731,123 2.97%
40,000 Royal Dutch Shell Plc 681,800 2.77%
1,412,923 5.74%
Packaging & Containers (2015*: -%, £-)
74,000 RPC Group Plc 479,520 1.95%
Pharmaceuticals (2015*: 1.98%, £509,600)
70,000 BTG Plc 367,500 1.50%
Real Estate Investment Trust (2015*: 3.22%, £828,000)
100,000 British Land Co., Plc 871,250 3.55%
Retail (2015*: 4.67%, £1,202,825)
180,000 Dixons Carphone Plc 828,360 3.37%
93,000 Dunelm Group Plc 886,755 3.61%
175,000 Poundland Group Plc 480,900 1.96%
2,196,015 8.94%
Semiconductors (2015*: -%, £-)
50,000 ARM Holdings Plc 514,750 2.09%
Telecommunication (2015*: 9.75%, £2,509,500)
200,000 BT Group Plc 930,800 3.79%
55,000 Inmarsat Plc 538,450 2.19%
220,000 Vodafone Group Plc 470,140 1.91%
1,939,390 7.89%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
UK Fund (continued)
19
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
GBP % Net Assets
Total Equity Investment (Cost £21,101,385) 23,620,493 96.11%
Total financial assets at fair value through profit or loss (Cost
£21,101,385) 23,620,493 96.11%
Other Assets in Excess of other Liabilities 955,256 3.89%
Net Assets Attributable to Holder of Redeemable Shares 24,575,749 100.00%
*Comparatives as at 30 April 2015.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
European Fund
20
The investment objective of the European Fund (the “Fund”) is to generate long term capital growth through investing in
equities of Pan European companies in developed Pan European equity markets, primarily amongst larger capitalised
companies.
Investments may be made in ordinary shares (including ADRs, EDRs and GDRs) and preferred shares of Pan European
companies. At least two thirds of the total assets of the Fund (excluding ancillary liquid assets) will be invested in shares in
Pan European companies. Up to one third of the total assets of the Fund may be held in ancillary liquid assets. Investments
will not be concentrated in any one Pan European country or in any one industrial or economic sector. The securities in
which the Fund may invest, will be quoted or traded on one of the regulated markets set out in Schedule I of the Prospectus.
The Fund aims to generate substantial absolute returns over the course of an investment cycle. The Fund will invest primarily
in large and mid-capitalisation companies in Europe, including the U.K. The Fund is managed along a best ideas principle,
meaning that it will invest in a relatively concentrated number of holdings. The Fund will seek to invest in companies which
are perceived to generate high returns and where management is perceived as having reinvestment opportunities in order to
sustain such returns and the Fund may also invest in issuers with restructuring potential where the returns in the past have
been low. The Fund may not invest more than 10% of its net asset value in collective investment schemes generally, of which
up to 5% of its net asset value may be invested in collective investment schemes investing in Pan European companies.
Those collective investment schemes which invest in Pan European Companies will be established as UCITS. The Fund may
utilise any of the financial derivative instruments described in the Prospectus for efficient portfolio management purposes.
Notwithstanding the asset allocation limits outlined above, the Fund may hold ancillary liquid assets where, in view of
market circumstances, the Investment Manager believes that it would not be in the interests of Shareholders for the Fund to
be fully invested or where the Fund needs to maintain liquidity to meet repurchase requests.
The base currency of the Fund is Euro.
The performance benchmark against which the Fund‟s performance is measured is the FTSE World Europe Index (total
return)*.
Class A Euro, Class A Stg£ and Class B Euro Shares of the Fund launched on 30 March 2007. Class A Euro Acc Shares
of the Fund launched on 2 October 2014. Class M Euro Shares of the Fund are also available.
Investment Manager’s Report
On 30th
June 2015, the Fund was merged with the Odey European Focus Fund and thereafter it ceased to be a sub-fund of the
Waverton Investment Funds plc umbrella. For this reason, this report is for the part period up to the date of this merger.
Performance
The Fund fell 1.9% for the two months to 30 June over outperforming the FTSE World Europe Index (total return) which fell
3.0% in Euro terms.
Review
The Fund fell 1.9% over the period outperforming the FTSE World Europe Index (total return)which fell 3.0% in Euro terms.
During May, markets continued their upward trend before becoming nervous in June with the escalation of the Greek debt
crisis, a further move higher in German bond yields and the start of the Chinese equity sell-off. This caused a broad European
equity market sell-off to which the fund was not immune. However, performance was helped by stock selection and the
relative strength of the Fund‟s financial positions, ING, Danske Bank and Lloyds Banking Group as well as gains in the sugar
company, Suedzucker. On the negative side, the Fund was held back by its holdings in the German utilities, RWE and E.ON,
and its relative currency positions.
* References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its
benchmark.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Sterling Bond Fund
21
The investment objective of the Sterling Bond Fund (the “Fund”) is to achieve capital growth and income through investment
in fixed and/or floating rate UK and international government corporate debt securities.
The corporate debt securities in which the Fund invests shall not be from any particular industry sector. The debt securities
shall be predominantly investment grade rated by an agency such as Moody‟s or Standard & Poor‟s. The bonds may be
denominated in any currency but the Fund will have a minimum exposure of 80% to Sterling at all times. The Fund may
utilise any of the financial derivative instruments described in the Prospectus for efficient portfolio management and
investment purposes to make a positive return for the Fund. The securities in which the Fund may invest will be quoted or
traded on one of the regulated markets set out in Schedule I of the Prospectus. The Fund may not invest more than 10 % of
its net asset value in collective investment schemes generally which have similar investment objectives and policies to the
Fund or which invest in fixed income or money market instruments, of which up to 5% of its net asset value may be invested
in collective investment schemes investing in bond markets globally. Those collective investment schemes which invest in
Debt Securities markets globally will be established as UCITS or UCITS equivalent schemes. The Fund may hold ancillary
liquid assets where in view of market circumstances the Investment Manager believes that it would not be in the interests of
Shareholders for the Fund to be fully invested or where the Fund needs to maintain liquidity to meet redemption requests.
The base currency of the Fund is Sterling.
The performance benchmark against which the Fund‟s performance is measured is the FTSE Actuaries UK Gilts Index
Series-Gilts (All) (total return)*.
Class A Stg£ and Class B Stg£ Shares of the Fund launched on 12 January 2010. Class P Stg£ Shares of the Fund launched
on 8 January 2014.
Investment Manager’s Report
Performance
The Fund fell 1.4% in the six months to end October whilst the FTSE Actuaries UK Gilts Index Series – Gilts (All) (total
return) rose 0.6%.
Review
Market turbulence in August and September hurt the fund as fears of a global slowdown sparked by softening data from
China saw risk assets weaken and core government bonds rally. A sharp widening in credit spreads was perhaps symptomatic
of a few idiosyncratic issues such as VW and Glencore causing nervousness which was exacerbated by a lack of liquidity in
bond markets. However, October saw a material recovery in sentiment due to policy response in China, the suggestion of
further action by the ECB and a pickup in US economic data which led to the Federal Reserve becoming more hawkish. The
improvement in risk appetite helped the Fund recover some absolute and relative return as credit spreads recovered from the
sell-off and the asymmetric risk of government bonds was again highlighted as they weakened as the prospect of a US
December interest rate hike was revived.
Outlook
The recovery in US economic data showing the consumer side is compensating for the softer manufacturing sector and
further global monetary easing driven by China and the ECB seem supportive of credit markets and keep government bond
yields vulnerable to the prospect of an improvement in growth and inflation. We therefore remain long credit with lower than
benchmark duration, endeavouring to capture the additional spread available in an improving economic backdrop whilst
protecting against the headwind of higher yields.
C Lee
November 2015
* References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its
benchmark.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Sterling Bond Fund (continued)
22
Sterling Bond Fund Top 5 Investments by issuer as at 31 October 2015
Shares/Par Security Description Fair Value GBP % Net Assets
11,000,000 United Kingdom Treasury Bill & Gilt 11,730,700 8.76%
6,608,000 Barclays Bank Plc 6,357,213 4.75%
7,300,000 Standard Chartered Plc 5,158,795 3.86%
7,000,000 UBS 4,798,020 3.59%
4,510,000 PGH Capital Ltd 4,710,202 3.52%
32,754,930 24.48%
Sterling Bond Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP % Total Assets
Transferable securities and money market instruments admitted to official
stock exchanges or traded on a regulated market 126,661,422 93.13%
Financial derivative instruments dealt in on a regulated market 164,160 0.12%
OTC financial derivative instruments 306,504 0.23%
Cash 4,421,546 3.25%
Other assets 4,442,139 3.27%
Total assets 135,995,771 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Sterling Bond Fund (continued)
23
Portfolio Investments as at 31 October 2015
Shares/Par Security description Fair Value GBP % Net Assets
Corporate Bonds
Auto Manufacturers (2015*: 2.16%, £2,948,935)
2,750,000 Jaguar Land Rover Automotive Plc, 5.00%, due 15/02/22 2,827,000 2.11%
Auto Parts & Equipment (2015*: 1.87%, £2,560,956)
2,176,000 GKN Holdings Plc, 6.75%, due 28/10/19 2,454,484 1.83%
Banks (2015*: 31.34%, £42,844,870)
4,200,000 Banco Bilbao Vizcaya Argentaria SA, 9.00%, due 09/05/18 2,958,855 2.21%
2,608,000 Barclays Bank Plc, 14.00%, due 15/06/19 3,376,160 2.52%
4,000,000 Barclays Bank Plc, 6.86%, due 29/09/49 2,981,053 2.23%
2,000,000 Close Brothers Finance Plc, 3.88%, due 27/06/21 2,060,540 1.54%
4,400,000 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, 11.00%, due 30/06/19 3,577,795 2.67%
1,500,000 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, 8.38%, due 26/07/16 1,011,532 0.76%
1,700,000 Goldman Sachs Group, Inc., 5.50%, due 12/10/21 1,870,459 1.40%
5,000,000 JPMorgan Chase & Co, 6.75%, due 01/02/24 3,528,572 2.64%
800,000 Keystone Financing Plc, 9.50%, due 15/10/19 841,176 0.63%
2,535,000 LBG Capital No.2 Plc, 15.00%, due 21/12/19 3,544,184 2.65%
901,000 LBG Capital No.2 Plc, 10.50%, due 29/09/23 1,036,177 0.77%
4,500,000 Royal Bank of Scotland Group Plc, 5.50%, due 29/11/49 3,211,683 2.40%
3,000,000 Standard Chartered Plc, 5.13%, due 06/06/34 2,671,800 2.00%
4,300,000 Standard Chartered Plc, 6.41%, due 29/01/49 2,829,685 2.12%
3,700,000 Svenska Handelsbanken AB, 5.25%, due 01/03/21 2,329,110 1.74%
5,000,000 UBS AG/Jersey, 7.25%, due 22/02/22 3,446,052 2.58%
2,000,000 UBS Group AG, 7.30%, due 19/02/20 1,351,968 1.01%
3,500,000 Wells Fargo & Corp., 5.90%, due 15/06/24 2,354,541 1.76%
44,981,342 33.63%
Commercial Services 2015*: 0.87%, £1,190,090)
1,100,000 A2D Funding Plc, 4.75%, due 18/10/22 1,151,117 0.86%
Diversified Financial Services (2015*: 7.93%, £10,860,427)
1,000,000 ICAP Plc, 5.50%, due 31/07/18 1,042,830 0.78%
1,000,000 Intermediate Capital Group Plc, 5.00%, due 24/03/23 992,410 0.74%
509,000 International Personal Finance Plc, 6.13%, due 08/05/20 496,275 0.37%
1,500,000 London Stock Exchange Group Plc, 4.75%, due 02/11/21 1,601,415 1.20%
1,000,000 Paragon Group of Cos Plc, 6.13%, due 30/01/22 1,015,140 0.76%
375,000 Paragon Group of Cos Plc, 6.00%, due 28/08/24 381,409 0.28%
6,882,000 Pershing Square Holdings Ltd., 5.50%, due 15/07/22 4,249,101 3.18%
1,800,000 Provident Financial Plc, 7.00%, due 04/10/17 1,873,350 1.40% 678,000 Tesco Personal Finance Plc, 1.00%, due 16/12/19 690,265 0.52%
1,242,000 Tesco Personal Finance Plc, 5.00%, due 21/11/20 1,288,712 0.96%
13,630,907 10.19%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Sterling Bond Fund (continued)
24
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description Fair Value GBP % Net Assets
Corporate Bonds (continued)
Energy (2015*: 1.27%, £1,737,869)
1,350,000 Petroleos Mexicanos, 8.25%, due 02/06/22 1,670,045 1.25%
Insurance (2015*: 10.80%, £14,754,493)
1,500,000 Admiral Group Plc, 5.50%, due 25/07/24 1,494,495 1.12%
6,000,000
Aquarius + Investments Plc for Swiss Reinsurance Co Ltd.,
8.25%, due 01/09/18 4,222,048 3.15%
600,000 Aviva Plc, 6.13%, due 29/09/49 623,442 0.47%
3,100,000 Liverpool Victoria Friendly Society Ltd., 6.50%, due 22/05/43 3,046,618 2.28%
2,310,000 PGH Capital Ltd., 5.75%, due 07/07/21 2,499,004 1.87%
2,200,000 PGH Capital Ltd., 6.63%, due 18/12/25 2,211,198 1.65%
14,096,805 10.54%
Real Estate (2015*: 7.62%, £10,418,528)
750,000 Bruntwood Ltd., 6.00%, due 27/07/20 790,500 0.59%
1,200,000 CLS Holdings Plc, 5.50%, due 31/12/19 1,239,300 0.93%
2,500,000 Grainger Plc, 5.00%, due 16/12/20 2,598,225 1.94%
1,300,000 Helical Bar Plc, 6.00%, due 24/06/20 1,358,058 1.02%
1,500,000 QED Finance Plc, 6.50%, due 29/07/20 1,764,645 1.32%
1,124,800 UNITE Group Plc/The, 6.12%, 12/06/20 1,201,793 0.90%
1,000,000 Workspace Group Plc, 6.00%, due 09/10/19 1,059,700 0.79%
10,012,221 7.49%
Real Estate Investment Trust (2015*: 0.88%, £1,198,878)
1,144,000 Primary Health Properties Plc, 5.38%, due 23/07/19 1,178,160 0.88%
Retail (2015*: 3.78%, £5,168,510)
1,593,500 Burford Capital Plc, 6.50%, due 19/08/22 1,674,912 1.25%
2,000,000 Debenhams Plc, 5.25%, due 15/07/21 1,989,480 1.49%
1,300,000 Marks & Spencer Plc, 6.13%, due 02/12/19 1,471,418 1.10%
5,135,810 3.84%
Savings & Loans (2015*: 1.47%, £2,009,280)
2,700,000 Nationwide Building Society, 6.88%, due 11/03/49 2,720,196 2.03%
Telecommunication (2015*: 0.77%, £1,053,893)
25,000,000 America Movil SAB de CV, 7.13%, due 09/12/24 967,377 0.72%
Total Corporate Bonds (Cost £99,276,950) 100,825,464 75.37%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Sterling Bond Fund (continued)
25
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description Fair Value GBP % Net Assets
Government Obligation
Government Bonds (2015*: 6.57%, £8,972,526)
800,000 Brazil Notas do Tesouro Nacional Serie F, 10.00%, due 01/01/23 1,076,575 0.80%
800,000 Mexican Bonos, 6.50%, due 10/06/21 3,305,453 2.47%
2,000,000 United States Treasury Note/Bond, 3.63%, due 15/02/44 1,480,038 1.11%
5,862,066 4.38%
Sovereign (2015*: 5.87%, £8,022,350)
6,000,000 United Kingdom Gilt, 3.25%, due 22/01/44 6,733,200 5.02%
Total Government Obligation (Cost £14,561,397) 12,595,266 9.40%
Floating Rate Note
Banks (2015*: 5.00%, £6,829,250)
4,000,000 Lloyds Banking Group Plc, 6.66%, due 29/01/49 2,921,306 2.19%
6,000,000 Wachovia Capital Trust III, 5.57%, due 29/03/49 3,842,436 2.87%
6,763,742 5.06%
Diversified Financial Services (2015*: 0.38%, £520,000)
500,000 Morgan Stanley & Co International Plc, 0.00%, due 17/06/16 505,650 0.38%
1,000,000 SG Issuer SA 973,800 0.73%
1,479,450 1.11%
Total Floating Rate Note (Cost £7,358,058) 8,243,192 6.16%
Zero Coupon Bonds
Sovereign (2015*: -%, £-)
5,000,000 United Kingdom Treasury Bill 4,997,500 3.74%
Zero Coupon Bonds (Cost £4,993,250) 4,997,500 3.74%
Total financial assets at fair value through profit or loss (Cost
£126,189,655) 126,661,422 94.68%
Unrealised Appreciation on Forward Currency Contracts (2015*:0.96%, £1,325,061)
Currency Principal
Currency Principal Current Settlement
Unrealised
Appreciation
Purchased Amount Sold Amount Fair Value Date GBP % Net Assets
GBP 3,393,880 EUR (3,307,043) 4,600,000 08-Jan-16 86,837 0.07%
GBP 39,318,480 USD (39,103,109) 60,000,000 08-Jan-16 215,370 0.16%
USD 651,718 GBP (647,421) 647,421 08-Jan-16 4,297 0.00%
Total Unrealised Appreciation on Forward Currency Contracts
306,504 0.23%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited
Sterling Bond Fund (continued)
26
Portfolio Investments as at 31 October 2015 (continued)
Unrealised Appreciation on Option Contracts (2015*: 0.07%, £100,486)
Contract Size Security Description Expiry Date
Unrealised
Gain GBP % Net Assets
375 Call US Bond Based Future/Option 24/12/2015 164,160 0.12%
Total Unrealised Appreciation on Option Contracts
164,160 0.12%
Unrealised Depreciation on Future Contracts (2015*: (0.23%)%, £(312,246)
Contract Size Security Description Expiry Date
Unrealised
Gain GBP % Net Assets
(335) US 10 Year Note Future 21/12/15 (131,644) (0.10%)
(270) Long Gilt Future 29/12/15 (72,900) (0.05%)
Total Unrealised Depreciation on Future Contracts
(204,544) (0.15%)
Other Assets in Excess of other Liabilities 6,855,172 5.12%
Net Assets Attributable to Holder of Redeemable Shares 133,782,714 100.00%
*Comparatives as at 30 April 2015.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Equity Fund
27
The investment objective of the Equity Fund (the “Fund”) is to achieve capital growth and income through investment of up
to 100% of its net asset value in international equities either by way of direct investment or through the use of collective
investment schemes to provide exposure to the underlying asset class. Depending on market circumstances the Fund may also
invest directly in structured products which are listed, traded or dealt in on a regulated market to enhance upside potential.
The Fund‟s investment strategy shall not be specific to any particular industry sector or geographic region. The equity
securities in which the Fund may invest include ordinary shares or common stock, preference shares, American depository
receipts, European depositary receipts and global depository receipts which are listed, traded or dealt in on a regulated
market. The Fund may not invest more than 10% of its net asset value in any one collective investment scheme. The
collective investment schemes in which the Fund invests will be established as UCITS under the Directive in any EU
Member State or UCITS Equivalent Schemes. Investment in UCITS Equivalent Schemes shall be subject to an aggregate
limit of 30% of the Fund‟s net asset value. Investment in structured products shall be subject to an aggregate limit of 20% of
the Fund‟s net asset value. The structured products shall comprise securities in which the issuer undertakes to provide a
return to investors based on the performance of a reference asset such as an equity, bond, financial derivative instrument,
index or collective investment scheme. The securities in which the Fund may invest will be quoted or traded on one of the
regulated markets set out in Schedule I of the Prospectus. The Fund may utilise any of the financial derivative instruments
described in the Prospectus for efficient portfolio management purposes. The Fund may acquire Shares in another sub-fund
of the Company by investing up to 10% of its net asset value in that other sub-fund. However, the Fund may not invest in a
sub-fund of the company which itself holds shares in other sub-funds of the Company or another sub-fund managed or
advised by the Investment Manager. Where the Fund invests in another sub-fund, of the company or any other fund managed
or advised by the Investment Manager, it may not charge an annual management and/or investment management fee in
respect of the portion of its assets invested in the other sub-fund/fund. The Fund may invest up to 10% of its assets in
transferable securities that are not listed, traded or dealt in on regulated markets. These transferable securities may include
equities, units of collective investment schemes (including exchange traded Funds) which are not UCITS, or any other
transferable security which is a permitted investment under the Regulations. The Fund may hold ancillary liquid assets where
in view of market circumstances the Investment Manager believes that it would not be in the interests of Shareholders in the
Fund to be fully invested where the Fund needs to maintain liquidity to meet repurchase requests.
The base currency of the Fund is Sterling.
The performance benchmark against which the Fund‟s performance is measured is the FTSE All-World Index (total return)*.
Class A Stg£ and Class B Stg£ Shares of the Fund launched on 12 January 2010. Class P Stg£ Shares of the Fund launched
on 8 January 2014.
Investment Manager’s Report
Performance
The Fund had a very difficult period in the six months to 31st October 2015 on a relative and an absolute basis. The Fund fell
by circa 7.26% vs. a fall of 4.93% by the FTSE All-World Index (total return).
Review
In April, the markets began falling after what had been a very positive start to the year. This was prompted by recurring
concerns about the situation in Greece and a reversal in fortunes for the Chinese market that had stalled. This downward
trajectory accelerated significantly in August when the Chinese authorities surprised markets with a currency
devaluation. October proved to be a much better month for investors but was not able to undo the majority of the damage.
Up until this point in the year the fund had performed quite well. The overweights in Japan and Europe had served us well as
had the currency hedging in each of these regions. The risk off environment was particularly unkind to these positions. We
felt that most of the issues were sentiment driven rather than fundamental so we did not make any dramatic changes to the
structure of the portfolio. The subsequent rebound has, thus far, shown that to be the correct decision.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Equity Fund (continued)
28
Investment Manager’s Report (continued)
Review (continued)
During the period we parted company with our holding of Allianz UK Growth Fund. This was replaced with Sanditon UK
Fund. This new fund is run by Julie Dean who has just resurfaced after leaving Schroders in 2014. We had invested
extremely successfully for many years with Julie at Cazenove and Schroders and are happy to support her in her new
venture.
Outlook
In the US our largest position, Pershing Square Holdings, was particularly weak as their biggest holding, Valeant, was caught
up in some political shenanigans involving prescription drug prices. We met very recently with Pershing Square and they are
very comfortable with their exposure and stress that only 10% of Valeant‟s revenues derive from businesses that build
strategies around drug price increases. Once again this is a conviction position for us and one that we feel will deliver
superior risk adjusted returns in the long run but the nature of their underlying investments mean that the relative returns will
be volatile.
J Bellamy
November 2015
* References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its
benchmark.
Equity Fund Top 5 Investments as at 31 October 2015
Shares/Par Security Description Fair Value GBP % Net Assets
69,395
Odey Investment Funds Plc - Odey Allegra Developed
Markets Fund 9,432,862 7.30%
127,420 iShares Russell 1000 Growth ETF 8,427,420 6.52%
4,685,565 FP Argonaut Funds - FP Argonaut European Alpha Fund 7,009,919 5.42%
526,078 Pershing Square Holdings Ltd. 6,896,462 5.34%
333,549 Polar Capital Funds Plc - Japan Fund 6,764,374 5.23%
38,531,037 29.81%
Equity Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP % Total Assets
Transferable securities and money market instruments admitted to official
stock exchanges or traded on a regulated market 21,781,406 16.74%
Collective Investment Schemes 106,564,976 81.92%
Cash 1,483,826 1.14%
Other assets 257,424 0.20%
Total assets 130,087,632 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Equity Fund (continued)
29
Portfolio Investments as at 31 October 2015
Shares/Par Security description Fair Value GBP % Net Assets
Corporate Bonds
Banks (2015*: 4.08%, £5,275,635)
6,680,000 SGA Societe Generale Acceptance NV, 3.89% , due 10/02/20 6,388,752 4.94%
Total Corporate Bonds (Cost £6,554,210) 6,388,752 4.94%
Zero Coupon Bonds
Banks (2015*: 12.38%, £16,020,842)
6,000,000 Credit Suisse AG/London, 0.00%, due 08/04/19 5,073,600 3.93%
7,497,750 Deutsche Bank AG/London, 0.00%, due 08/02/21 4,931,573 3.82%
6,467,000 Morgan Stanley, 0.00%, 02/11/18 5,387,481 4.17%
15,392,654 11.92%
Total Zero Coupon Bonds (Cost £14,972,519) 15,392,654 11.92%
Equity Investment
Equity Fund (2015*: 82.77%, £107,079,841)
3,125,665
Edinburgh Partners Opportunities Fund Plc - European Opportunities
Fund Plc 5,785,606 4.48%
4,685,565 FP Argonaut Funds - FP Argonaut European Alpha Fund 7,009,919 5.42%
292,536 Guinness Asset Management Funds Plc - Global Equity Income Fund 3,937,622 3.05%
401,193 Guinness Global Innovators Fund 4,168,957 3.23%
4,217,871 Hermes Asia Ex-Japan Equity Fund 6,480,978 5.01%
225,395 HSBC EURO STOXX 50 UCITS ETF 5,663,806 4.38%
2,482,434 Neptune Investment Funds - Japan Opportunities Fund 4,758,826 3.68%
69,395 Odey Investment Funds Plc - Odey Allegra Developed Markets Fund 9,432,862 7.30%
526,078 Pershing Square Holdings Ltd. 6,896,462 5.34%
333,549 Polar Capital Funds Plc - Japan Fund 6,764,374 5.23%
38,802 Prusik Asian Equity Income Fund 3,650,311 2.82%
28,565 RAM Lux Systematic Funds - Emerging Markets Equities Fund 2,780,379 2.15%
2,607,789 Schroder Asian Alpha Plus Fund 1,588,926 1.23%
782,580 SIG - Lyrical Fund H 5,068,312 3.92%
2,651,779 Somerset Emerging Markets Dividend Growth Fund 3,232,519 2.50%
65,261 Source JPX-Nikkei 400 UCITS ETF 5,101,452 3.95%
250,000
Waverton Investment Funds Plc - Global Equity Wealth Creation
Fund 1,633,763 1.26%
83,955,074 64.95%
Total Equity Investment (Cost £78,887,385) 83,955,074 64.95%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Equity Fund (continued)
30
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
GBP
% Net
Assets
Investment Fund
Equity Fund (2015*: -%, £-)
434,165 HSBC MSCI WORLD UCITS ETF 4,794,825 3.71%
316,807 HSBC S&P 500 UCITS ETF 4,341,441 3.36%
127,420 iShares Russell 1000 Growth ETF 8,427,420 6.52%
5,513,784 Thesis Unit Trust Management - TM Sanditon UK Fund 5,046,216 3.90%
Total Investment Fund (Cost £22,453,331) 22,609,902 17.49%
Total financial assets at fair value through profit or loss (Cost £122,867,445) 128,346,382 99.30%
Other Assets in Excess of other Liabilities 906,291 0.70%
Net Assets Attributable to Holder of Redeemable Shares 129,252,673 100.00%
*Comparatives as at 30 April 2015.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Bond Fund
31
The investment objective of the Global Bond Fund (the “Fund”) is to achieve capital growth and income through investment
in fixed and/or floating rate global government and corporate debt securities.
The corporate debt securities in which the Fund invests shall not be from any particular industry sector. The debt securities
shall be predominantly investment grade rated by a rating agency such as Moody‟s or Standard & Poor‟s. The bonds may be
denominated in any currency. The Fund may utilise any of the financial derivative instruments described in the Prospectus
for efficient portfolio management and investment purposes. The securities in which the Fund may invest will be quoted or
traded on one of the regulated markets set out in Schedule I of the Prospectus. The Fund may not invest more than 10% of its
net asset value in collective investment schemes generally which have similar investment objectives and policies to the Fund
or which invest in Debt Securities or money market instruments, of which up to 5% of its net asset value may be invested in
collective investment schemes investing in Debt Securities markets globally. Those collective investment schemes which
invest in bond markets globally will be established as UCITS or UCITS Equivalent Schemes. Furthermore, the Fund may
hold ancillary liquid assets where in view of market circumstances the Investment Manager believes that it would not be in
the interests of Shareholders for the Fund to be fully invested or where the Fund needs to maintain liquidity to meet
repurchase requests.
The base currency of the Fund is U.S. Dollar. It is intended that the non-base currency denominated classes of the Fund will,
so far as practicable, be fully hedged against the U.S. Dollar.
The performance benchmark against which the Fund‟s performance is measured is the US Cash Indices LIBOR Total Return
1 month*.
Class A Stg£ and Class A US$ Shares of the Fund launched on 12 January 2010. Class I US$ Shares launched on 17
September 2012 and Class I Euro Acc Shares launched on the 6 July 2015. Class B US$ and Class I Stg£ Shares of the Fund
are also available.
Investment Manager’s Report
Performance
The Fund fell 2.4% in the six month period ending 31 October 2015, US Cash Indices LIBOR Total Return 1 month edged
up 0.1%, and the Citigroup Government Bond Index was down 1.0%.
Review
Market turbulence in August and September hurt the fund as fears of a global slowdown sparked by softening data from
China saw risk assets weaken and core government bonds rally. A sharp widening in credit spreads was perhaps symptomatic
of a few idiosyncratic issues such as VW and Glencore causing nervousness which was exacerbated by a lack of liquidity in
bond markets. However, October saw a material recovery in sentiment due to policy response in China, the suggestion of
further action by the European Central Bank (“ECB”) and a pickup in US economic data which led to the Federal Reserve
becoming more hawkish. The improvement in risk appetite helped the fund recover some absolute and relative return as
credit spreads recovered from the sell-off and the asymmetric risk of government bonds was again highlighted as they
weakened as the prospect of a US December interest rate hike was revived.
Outlook
The recovery in US economic data showing the consumer side is compensating for the softer manufacturing sector and
further global monetary easing driven by China and the ECB seem supportive of credit markets and keep government bond
yields vulnerable to the prospect of an improvement in growth and inflation. We therefore remain long credit with lower than
benchmark duration, endeavouring to capture the additional spread available in an improving economic backdrop whilst
protecting against the headwind of higher yields.
C Lee
November 2015
* References to benchmarks are for illustrative purposes only. There is no guarantee that the fund will outperform its
benchmark.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Bond Fund (continued)
32
Global Bond Fund Top 5 Investments by issuer as at 31 October 2015
Shares/Par Security Description Fair Value USD % Net Assets
4,800,000 Barclays Bank Plc 6,219,232 6.84%
5,000,000 UBS 5,248,400 5.78%
750,000 Mexican Bonos, 4,756,134 5.23%
2,425,000 Lloyds 4,015,291 4.42%
3,100,000 Standard Chartered Plc 3,532,024 3.89%
23,771,081 26.16%
Global Bond Fund Portfolio Analysis as at 31 October 2015 Fair Value USD % Total Assets
Transferable securities and money market instruments admitted to official
stock exchanges or traded on a regulated market 85,206,966 92.09%
OTC financial derivative instruments 68,388 0.07%
Cash 3,453,349 3.73%
Other assets 3,804,317 4.11%
Total assets 92,533,020 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Bond Fund (continued)
33
Portfolio Investments as at 31 October 2015
Shares/Par Security description
Fair Value
USD % Net Assets
Corporate Bonds
Auto Manufacturers (2015*: 1.32%, $1,323,268)
800,000 Jaguar Land Rover Automotive Plc, 5.00%, due 15/02/22 1,262,220 1.39%
Banks (2015*: 30.20%, $30,227,884)
1,800,000 Banco Bilbao Vizcaya Argentaria SA, 9.00%, due 09/05/18 1,946,250 2.14%
620,000 Bank of Scotland Plc, 9.38%, due 15/05/21 1,199,652 1.32%
1,200,000 Barclays Bank Plc, 14.00%, due 15/06/19 2,384,232 2.62%
2,000,000 Barclays Bank Plc, 6.86%, due 29/09/49 2,255,000 2.48%
1,600,000 Barclays Plc, 6.25%, due 14/09/19 1,580,000 1.74%
2,600,000
Cooperatieve Centrale Raiffeisen-Boerenleenbank
BA/Netherlands, 11.00%, due 30/06/19 3,244,800 3.57%
900,000
Cooperatieve Centrale Raiffeisen-Boerenleenbank
BA/Netherlands, 8.38%, due 26/07/16 931,500 1.03%
1,514,000 Goldman Sachs Group, Inc., 5.50%, due 12/10/21 2,556,683 2.81%
2,000,000 JPMorgan Chase & Co, 6.75%, due 01/02/24 2,166,260 2.38%
1,425,000 Lloyds Bank Plc, 12.00%, due 16/12/24 2,094,750 2.31%
1,000,000 Lloyds Banking Group Plc, 7.63%, due 22/04/25 1,920,541 2.11%
1,100,000 Standard Chartered Plc, 5.13%, due 06/06/34 1,512,024 1.67%
2,000,000 Standard Chartered Plc, 6.41%, due 29/01/49 2,020,000 2.22%
1,550,000 Svenska Handelsbanken AB, 5.25%, due 01/03/21 1,497,517 1.65%
3,000,000 UBS AG/Jersey, 7.25%, due 22/02/22 3,173,400 3.50%
2,000,000 UBS Group AG, 7.30%, due 19/02/20 2,075,000 2.28%
1,300,000 Wells Fargo & Corp., 5.90%, due 15/06/24 1,342,250 1.48%
33,899,859 37.31%
Commercial Services (2015*: 1.42%, $1,418,506)
850,000 A2D Funding Plc, 4.75%, due 18/10/22 1,367,813 1.51%
Diversified Financial Services (2015*: 9.69%, $9,699,329)
500,000 Burford Capital Plc, 6.50%, due 19/08/22 809,676 0.89%
500,000 Intermediate Capital Group Plc, 5.00%, due 24/03/23 761,575 0.84%
500,000 International Personal Finance Plc, 6.13%, due 08/05/20 763,564 0.84%
1,000,000 London Stock Exchange Group Plc, 4.75%, due 02/11/21 1,638,568 1.80%
500,000 Paragon Group of Cos Plc, 6.13%, due 30/01/22 786,692 0.87%
125,000 Paragon Group of Cos Plc, 6.00%, due 28/08/24 195,129 0.21%
3,100,000 Pershing Square Holdings Ltd., 5.50%, due 15/07/22 2,937,622 3.23%
1,000,000 Provident Financial Plc, 7.00%, due 04/10/17 1,606,552 1.77%
1,304,600 Tesco Personal Finance Plc, 5.00%, due 21/11/20 2,097,630 2.31%
11,597,008 12.76%
Energy (2015*: 0.85%, $850,485)
750,000 Petroleos Mexicanos, 6.00%, due 05/03/20 815,483 0.90%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Bond Fund (continued)
34
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
USD % Net Assets
Corporate Bonds (continued)
Insurance (2015*: 9.24%, $9,243,321)
600,000 Admiral Group Plc, 5.50%, due 25/07/24 917,500 1.01%
2,500,000
Aquarius + Investments Plc for Swiss Reinsurance Co Ltd.,
8.25%, due 01/09/18 2,700,000 2.97%
750,000 Legal & General Group Plc, 5.50%, due 27/06/64 1,072,526 1.18%
900,000 Liverpool Victoria Friendly Society Ltd., 6.50%, due 22/05/43 1,357,536 1.49%
1,000,000 PGH Capital Ltd., 5.75%, due 07/07/21 1,660,377 1.83%
700,000 PGH Capital Ltd., 6.63%, due 18/12/25 1,079,828 1.19%
8,787,767 9.67%
Oil & Gas (2015*: 1.19%, $1,191,405)
600,000 Petroleos Mexicanos, 8.25%, due 02/06/22 1,139,552 1.25%
Real Estate (2015*: 6.60%, $6,599,418)
209,500 Bruntwood Ltd., 6.00%, due 27/07/20 338,904 0.38%
300,000 CLS Holdings Plc, 5.50%, due 31/12/19 475,519 0.52%
1,500,000 Grainger Plc, 5.00%, due 16/12/20 2,392,653 2.64%
611,700 Helical Bar Plc, 6.00%, due 24/06/20 990,154 1.09%
250,000 QED Finance Plc, 6.50%, due 29/07/20 456,384 0.50%
700,000 UNITE Group Plc/The, 6.12%, 12/06/20 1,147,900 1.26%
5,801,514 6.39%
REITS (2015*: 0.65%, $654,568)
150,000 Primary Health Properties Plc, 5.38%, due 23/07/19 239,397 0.26%
250,000 Workspace Group Plc, 6.00%, due 09/10/19 405,981 0.45%
645,378 0.71%
Retail (2015*: 2.66%, $2,660,319)
500,000 Debenhams Plc, 5.25%, due 15/07/21 763,363 0.84%
450,000 Marks & Spencer Plc, 6.13%, due 02/12/19 781,730 0.86%
1,545,093 1.70%
Savings & Loans (2015*: 1.55%, $1,549,657)
1,300,000 Nationwide Building Society, 6.88%, due 11/03/49 2,010,164 2.21%
Telecommunication (2015*: 1.52%, $1,523,808)
15,000,000 America Movil SAB de CV, 7.13%, due 09/12/24 890,838 0.98%
Total Corporate Bonds (Cost £71,106,557) 69,762,689 76.78%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Bond Fund (continued)
35
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
USD % Net Assets
Government Obligation
Government Bonds (2015*: 18.18%, $18,195,748)
500,000 Brazil Notas do Tesouro Nacional Serie F, 10.00%, due 01/01/23 1,032,705 1.14%
750,000 Mexican Bonos, 6.50%, due 10/06/21 4,756,134 5.23%
2,500,000 United States Treasury Note/Bond, 3.63%, due 15/02/44 2,839,453 3.13%
Total Governemnt Obligation (Cost £10,993,398) 8,628,292 9.50%
Floating Rate Note
Banks (2015*: 5.34%, $5,338,020)
2,000,000 Royal Bank of Scotland Group Plc, 6.99%, due 29/10/49 2,332,500 2.57%
3,000,000 Wachovia Capital Trust III, 5.57%, due 29/03/49 2,948,685 3.24%
5,281,185 5.81%
Diversified Financial Services (2015*: -%, £-)
1,000,000 SG Issuer SA, 4.57%, due 10/04/20 1,534,800 1.69%
Total Floating Rate Note (Cost £6,889,550) 6,815,985 7.50%
Total financial assets at fair value through profit or loss (Cost
£88,989,505) 85,206,966 93.78%
Unrealised Appreciation on Forward Currency Contracts (2015*: 0.21%, $214,381)
Unrealised
Currency Principal Currency Principal Current Settlement Appreciation
Purchased Amount Sold Amount Fair Value Date USD % Net Assets
GBP 1,894,451 USD (1,891,708) 1,891,708 02-Nov-15 2,743 0.00%
USD 2,703,960 EUR (2,647,451) 2,400,000 08-Jan-16 56,509 0.06%
USD 3,318,273 EUR (3,309,231) 3,000,000 08-Jan-16 9,042 0.01%
USD 20,544 EUR (20,450) 18,563 02-Nov-15 94 0.00%
Total Unrealised Appreciation on Forward Currency Contracts 68,388 0.07%
Unrealised Depreciation on Forward Currency Contracts (2015*: (2.12%), $(2,115,937))
Unrealised
Currency Principal Currency Principal Current Settlement Appreciation
Purchased Amount Sold Amount Fair Value Date USD % Net Assets
EUR 1,114,903 USD (1,143,398) 1,143,398 02-Nov-15 (28,495) (0.03%)
USD 43,491,000 GBP (43,730,661) 28,500,000 08-Jan-16 (239,660) (0.27%)
GBP 767,204 USD (771,246) 771,246 08-Jan-16 (4,043) (0.00%)
GBP 537,042 USD (540,617) 540,617 08-Jan-16 (3,575) (0.00%)
Total Unrealised Depreciation on Forward Currency Contracts (275,773) (0.30%)
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Bond Fund (continued)
36
Portfolio Investments as at 31 October 2015 (continued)
Unrealised Depreciation on Future Contracts (2015*:(0.29%)%, £(298,828)
Contract
Size Security Description Expiry Date
Unrealised
Gain USD % Net Assets
(200) US 10 Year Note Future 21/12/2015 (120,625) (0.13%)
155) Long Gilt Future 29/12/2015 (64,231) (0.07%)
Total Unrealised Depreciation on Future Contracts
(184,856) (0.20%)
Other Assets in Excess of other Liabilities 6,037,509 6.65%
Net Assets Attributable to Holder of Redeemable
Shares 90,852,234 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Wealth Creation Fund
37
The investment objective of Global Equity Wealth Creation Fund (the “Fund”) is to achieve capital growth through
investment in a diversified portfolio of equities on a global basis. At least two thirds of the total assets of the Fund (excluding ancillary liquid assets) shall be invested in ordinary shares
(including ADRs, EDRs and GDRs) and preferred shares worldwide. The Fund may invest up to one third of its total assets
(excluding ancillary liquid assets) in debt securities convertible into shares (not exceeding 25% of the total assets of the
Fund) and in fixed income securities, such as OECD government or supranational debt securities, corporate bonds, bankers‟
acceptances and commercial paper rated investment grade or better or deemed by the Investment Manager to have an
equivalent rating. Not more than 20%. of the net asset value of the Fund will be invested in securities of issuers established in
emerging market countries.The Fund‟s investment strategy shall not be specific to any particular industry or economic sector
or geographic region. The Fund aims to generate returns by investing in a diversified portfolio of companies which the
Investment Manager believes create wealth at a corporate level by allocating capital efficiently. Following this wealth
creation assessment, analysis is undertaken to ascertain which companies are also Fundamentally undervalued. It is intended
that the Fund will normally hold between 150-250 positions in companies with any market capitalisation worldwide, with the
number varying from time to time. The Fund may utilise any of the financial derivative instruments described in the
Prospectus for efficient portfolio management purposes. The securities in which the Fund may invest will be quoted or traded
on one of the regulated markets set out in Schedule I of the Prospectus. The Fund may not invest more than 10% of its net
asset value in collective investment schemes generally, of which up to 5% of its net asset value may be invested in collective
investment schemes investing in equity markets globally. Those collective investment schemes which invest in equity
markets globally will be established as UCITS under the Directive in any EU Member State. The Fund may invest up to 10%
of its assets in transferable securities that are not listed, traded or dealt in on regulated markets. These transferable securities may
include equities, units of collective investment schemes (including exchange traded Funds) which are not UCITS, or any other
transferable security which is a permitted investment under the Regulations. Furthermore, the Fund may hold ancillary liquid
assets.
The base currency of the Fund is U.S. Dollar. The performance benchmark against which the Fund‟s performance is measured is the MSCI World Free Net Total Return
Index*. Class A US$ Institutional of the Fund launched on 6 March 2014. Class B US$ Institutional Shares of the Fund are also
available.
Investment Manager’s Report
Performance
The Fund was down 4.5% on a net basis over the six months versus the MCSI World Free Net Total Return Index which fell
3.2%. The fund benefited from strong stock selection in the energy sector, this was outweighed by weak stock selection in the
information technology, utilities and consumer discretionary sectors.
Review
Having peaked in late May, the index sold off sharply in August before recovering the majority of those losses in October.
The only major market to record positive returns over the six month period was the US, with the MSCI USA generating a
slight positive return of +0.4%. The US Dollar continued to be strong especially against emerging market currencies, over the
six months it appreciated 28% against the Brazilian Real and 23% against the Russian Rouble. Economic data from the US
continues to surprise on the upside; the futures market now suggests that an increase in the Fed Funds rates will occur within
the next six months. Over the period the MSCI Emerging Markets index fell 17.6% as stocks in the materials and
commodities sectors underperformed and emerging market currencies suffered steep declines.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Wealth Creation Fund (continued)
38
Investment Manager’s Report (continued)
Review (continued)
On a sector basis the consumer staples sector was the best performing sector over the six months, closely followed by the
technology sector. Large consumer technology stocks enjoyed strong periods of performance, with Amazon returning 48%
over the period as sales and earnings exceeded analysts‟ estimates. Energy was the worst performing sector, falling -16.8%
over the six months as crude oil prices declined to test new lows in August. The materials sector also performed poorly as
commodity prices declined.
Outlook
The objective of the fund is to provide capital growth through highly diversified investments in global equities. The fund has
exposure to each sector on the basis of where the managers believe superior wealth creating strategies are being pursued by
corporate management. The MCSI World Free Net Total Return Index is the benchmark against which the performance of
the Fund is measured.
The Fund is focused on identifying wealth creating companies and diversifying the exposure across sectors and geographies.
It is our belief that successful identification of these businesses will generate above market returns with below market risk
over the long term for our clients.
W Kenney
November 2015
* References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its
benchmark.
Global Equity Wealth Creation Fund Top 5 Investments as at 31 October 2015
Shares/Par Security Description Fair Value USD % Net Assets
4,070 Exxon Mobil Corp. 334,676 3.10%
2,200 Apple, Inc. 265,144 2.46%
3,380 Wells Fargo & Corp. 186,137 1.73%
246 Alphabet Inc. 179,761 1.67%
3,360 Microsoft Corp. 179,256 1.66%
1,144,974 10.62%
Global Equity Wealth Creation Fund Portfolio Analysis as at 31 October 2015 Fair Value USD % Total Assets
Transferable securities and money market instruments admitted to official
stock exchanges or traded on a regulated market 10,671,024 97.91%
Collective Investment Schemes 156,907 1.44%
Cash 31,622 0.29%
Other assets 38,913 0.36%
Total assets 10,898,466 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Wealth Creation Fund (continued)
39
Portfolio Investments as at 31 October 2015
Shares/Par Security description
Fair Value
USD % Net Assets
Equity Investment
Basic Materials (2015*: 3.84%, $417,821)
1,060 BASF SE 85,744 0.80%
4,010 BHP Billiton Plc 64,867 0.60%
640 EI du Pont de Nemours & Co. 40,538 0.38%
1,100 First Quantum Minerals Ltd. 5,828 0.05%
1,260 GoldCorp., Inc. 16,875 0.16%
950 International Paper Corp. 40,822 0.38%
880 Potash Corp. of Saskatchewan, Inc. 18,415 0.17%
1,910 Steel Dynamics, Inc. 35,431 0.32%
82 Syngenta AG 27,535 0.26%
336,055 3.12%
Building Materials (2015*: 0.39%, $42,643)
2,320 CRH Plc 63,221 0.59%
Chemicals (2015*: 0.92%, $100,303)
3,000 Kansai Paint Co., Ltd. 46,119 0.43%
700 Nitto Denko Corp. 45,450 0.42%
91,569 0.85%
Communications (2015*: 9.63%, $1,048,434)
246 Alphabet Inc. 179,761 1.67%
230 Amazon.com, Inc. 144,061 1.34%
1,530 CenturyLink, Inc. 42,947 0.40%
2,540 Cisco Systems, Inc. 73,990 0.69%
1,330 Comcast Corp. 83,870 0.78%
2,300 Deutsche Telekom AG 42,718 0.40%
415 Facebook Inc. 43,525 0.40%
8,950 Koninklijke KPN NV 32,703 0.30%
93 LinkedIn Corp. 20,181 0.19%
470 Omnicom Group, Inc. 35,400 0.33%
38 Priceline Group, Inc./The 54,175 0.50%
520 Rogers Communications, Inc. 20,949 0.19%
10,000 Singapore Telecommunications Ltd. 28,353 0.25%
700 SoftBank Corp. 39,460 0.37%
9,990 Spark New Zealand Ltd. 22,566 0.21%
2,380 Telefonica SA 31,252 0.29%
860 Time Warner, Inc. 64,904 0.60%
2,230 Verizon Communications, Inc. 103,450 0.96%
1,920 Vivendi SA 46,500 0.43%
1,110,765 10.30%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Wealth Creation Fund (continued)
40
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description Fair Value
USD % Net Assets
Equity Investment (continued)
Consumer, Cyclical (2015*: 10.30%, $1,121,573)
96 AutoZone, Inc. 75,217 0.70%
1,000 Bandai Namco Holdings, Inc. 24,753 0.23%
450 Bayerische Motoren Werke AG 46,072 0.43%
460 Berkeley Group Holdings Plc 23,348 0.22%
670 BorgWarner, Inc. 27,859 0.26%
420 Casey's General Stores Inc. 44,764 0.42%
515 Costco Wholesale Corp. 81,494 0.75%
1,350 Crown Resorts Ltd. 10,823 0.10%
620 CVS Health Corp. 64,356 0.60%
1,600 Daihatsu Motor Co., Ltd. 19,776 0.18%
13,433 Entertainment One Ltd. 45,625 0.42% 2,290 Ford Motor Corp. 33,709 0.31%
395 Fossil Group, Inc. 20,935 0.19%
2,300 ITOCHU Corp. 29,058 0.27%
880 Kohl's Corp. 39,222 0.36%
500 Lawson, Inc. 37,229 0.35%
300 Lear Corp. 37,092 0.34%
1,100 Mattel, Inc. 27,082 0.25%
680 Nokian Renkaat OYJ 25,394 0.24%
180 Panera Bread Co. 32,344 0.30%
300 Ralph Lauren Corp. 33,093 0.31%
422 Sodexo 37,181 0.34%
1,510 Texas Roadhouse, Inc. 53,061 0.49%
940 TJX Cos, Inc./The 68,676 0.64%
1,800 Toyota Motor Corp. 108,550 1.01%
880 VF Corp. 59,937 0.56%
285 Whirlpool Corp. 46,384 0.43%
110 Wynn Resorts Ltd. 7,689 0.07%
1,160,723 10.77%
Consumer, Non-cyclical (2015*: 21.52%, $2,341,344)
2,500 Abcam Plc 22,869 0.21%
205 Allergan Plc 62,525 0.58%
230 Amgen, Inc. 36,908 0.34%
660 Baxalta Inc. 22,737 0.20%
660 Baxter International, Inc. 24,803 0.23%
860 Bayer AG 113,448 1.05%
155 Biogen, Inc. 45,525 0.42%
540 Bright Horizons Family Solutions, Inc. 34,852 0.32%
1,845 British American Tobacco Plc 109,685 1.02%
1,140 Church & Dwight Co., Inc. 98,530 0.91%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Wealth Creation Fund (continued)
41
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
USD % Net Assets
Equity Investment (continued)
Consumer, Non-cyclical (2015*: 21.52%, $2,341,344)
(continued)
1,190 Colgate-Palmolive Co. 82,384 0.76%
600 Colruyt SA 29,743 0.28%
1,090 DH Corp. 28,998 0.27%
2,040 Diageo Plc 58,344 0.54%
590 Express Scripts Holding Corp. 51,419 0.48%
990 Fresenius SE & Co KGaA 71,902 0.67%
835 Gilead Sciences, Inc. 91,182 0.85%
1,180 Grifols SA 54,322 0.50%
420 Heineken NV 38,337 0.36%
270 Henry Schein, Inc. 40,730 0.38%
1,640 Johnson & Johnson 166,263 1.54% 450 L'Oreal SA 81,868 0.76%
400 McGraw Hill Financial, Inc. 37,704 0.35%
500 Miraca Holdings,Inc. 22,412 0.21%
890 Mylan NV 40,735 0.38%
2,030 Nestle SA 155,269 1.44%
2,200 Nihon Kohden Corp. 43,207 0.40%
1,180 Novartis AG 107,685 1.00%
1,480 Novo Nordisk A/S 80,101 0.74%
2,600 Park24 Co Ltd. 54,905 0.51%
1,060 Reckitt Benckiser Group Plc 103,600 0.96%
395 Roche Holding AG 107,462 1.00%
2,500 Santen Pharmaceutical Co., Ltd. 34,241 0.32%
860 St Jude Medical, Inc. 54,662 0.51%
1,100 Sysco Corp. 45,969 0.43%
500 Sysmex Corp. 28,928 0.27%
500 Takeda Pharmaceutical Co., Ltd. 24,475 0.23%
1,130 Tyson Foods, Inc. 49,551 0.46%
785 UnitedHealth Group, Inc. 93,972 0.87%
1,780 Wesfarmers Ltd. 49,855 0.46%
316 WEX, Inc. 27,492 0.25%
2,529,599 23.46%
Energy (2015*: 7.56%, $823,818)
1,420 Canadian Natural Resources Ltd. 32,737 0.30%
1,420 Continental Resources, Inc. 47,272 0.44%
520 Enbridge, Inc. 22,138 0.21%
4,070 Exxon Mobil Corp. 334,676 3.10%
1,200 Halliburton Corp. 45,828 0.42%
310 Helmerich & Payne, Inc. 17,121 0.16%
670 HollyFrontier Corp. 33,011 0.31%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Wealth Creation Fund (continued)
42
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
USD % Net Assets
Equity Investment (continued)
Energy (2015*: 7.56%, $823,818)
640 National Oilwell Varco, Inc. 23,309 0.22%
710 Occidental Petroleum Corp. 52,639 0.49%
980 PDC Energy Inc. 59,212 0.55%
1,260 Suncor Energy, Inc. 36,059 0.33%
800 Valero Energy Corp. 52,648 0.49%
840 Woodside Petroleum Ltd. 17,611 0.16%
774,261 7.18%
Engineering & Construction (2015*: 0.30%, $32,664)
740 Jacobs Engineering Group, Inc. 28,875 0.27%
Financial (2015*: 18.84%, $2,053,812)
410 ACE Ltd. 47,257 0.44%
1,750 Admiral Group Plc 43,512 0.40%
205 Affiliated Managers Group, Inc. 36,855 0.34%
8,200 AIA Group Ltd. 48,196 0.45%
1,150 American Express Corp. 85,319 0.79%
420 American Tower Corp. 42,823 0.40%
1,960 AXA SA 52,294 0.49%
9,220 Banco Santander SA 25,941 0.24%
1,800 Bank of America Corp. 30,744 0.29%
730 Berkshire Hathaway, Inc. 100,674 0.93%
1,170 Brookfield Asset Management, Inc. 41,496 0.38%
1,300 Credit Agricole SA 16,340 0.15%
1,320 Credit Suisse Group AG 32,933 0.31%
300 Daito Trust Construction Co., Ltd. 32,697 0.30%
3,000 DBS Group Holdings Ltd. 37,002 0.34%
740 Franklin Resources, Inc. 29,674 0.28%
286 Goldman Sachs Group, Inc. 54,329 0.50%
12,460 GPT Group 42,151 0.38%
1,080 Great-West Lifeco, Inc. 27,747 0.26%
12,000 Hang Lung Properties Ltd. 29,389 0.27%
8,800 HSBC Holdings Plc 68,640 0.64%
1,200 Hulic Co Ltd. 11,296 0.10%
670 Industrial Alliance Insurance & Financial Services, Inc. 21,389 0.20%
8,260 Intesa Sanpaolo SpA 28,826 0.27%
220 Jones Lang LaSalle, Inc. 36,632 0.34%
2,320 JPMorgan Chase & Co. 151,241 1.40%
330 KBC Groep NV 19,980 0.19%
1,260 Land Securities Group Plc 25,914 0.24%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Wealth Creation Fund (continued)
43
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description Fair Value
USD % Net Assets
Equity Investment (continued)
Financial (2015*: 18.84%, $2,053,812)
37,100 Lloyds Banking Group Plc 41,552 0.39%
1,501 London Stock Exchange Group Plc 58,584 0.54%
680 Marsh & McLennan Co., Inc. 38,277 0.36%
1,170 MetLife, Inc. 59,658 0.55%
1,100 MS&AD Insurance Group Holdings Inc. 32,798 0.30%
1,000 National Australia Bank Ltd. 21,428 0.20%
670 Regency Centers Corp. 45,841 0.43%
400 Societe Generale SA 18,489 0.17%
520 State Street Corp. 36,291 0.34%
1,400 Sumitomo Mitsui Financial Group, Inc. 56,450 0.52%
1,000 Suruga Bank Ltd. 19,905 0.18%
3,210 Svenska Handelsbanken AB 43,805 0.41%
370 Swiss Re AG 34,571 0.32%
2,230 Toronto-Dominion Bank/The 93,516 0.87%
3,380 Wells Fargo & Corp. 186,137 1.73%
3,290 Westpac Banking Corp. 73,303 0.68%
710 Weyerhaeuser Corp. 20,711 0.19%
164 Zurich Insurance Group AG 43,439 0.40%
2,146,046 19.90%
Industrial (2015*: 8.47%, $920,059)
590 AGCO Corp. 28,704 0.26%
710 AMETEK, Inc. 38,809 0.36%
720 Andritz AG 36,322 0.34%
1,260 Avnet, Inc. 56,471 0.52%
320 B/E Aerospace, Inc. 15,216 0.14%
2,100 Corning Inc. 39,564 0.37%
450 Cummins, Inc. 46,512 0.43%
400 East Japan Railway Co. 38,366 0.36%
400 General Dynamics Corp 59,992 0.56%
3,800 Konica Minolta Inc. 39,366 0.37%
1,230 Legrand SA 67,322 0.62%
3,000 MISUMI Group, Inc. 39,520 0.37%
800 Old Dominion Freight Line, Inc. 50,400 0.47%
1,000 Omron Corp. 33,452 0.31%
880 Pentair Plc 48,646 0.45%
6,870 PostNL NV 28,123 0.26%
750 Renishaw Plc 21,998 0.20%
300 Rinnai Corp. 23,956 0.22%
3,420 Sandvik AB 33,758 0.31%
300 Snap-on Inc. 49,422 0.46%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Wealth Creation Fund (continued)
44
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description Fair Value
USD % Net Assets
Equity Investment (continued)
Industrial (2015*: 8.47%, $920,059)
2,020 Ultra Electronics Holdings Plc 52,659 0.49%
880 Union Pacific Corp. 79,640 0.74%
640 United Technologies Corp. 63,373 0.59%
3,100 Ushio, Inc. 43,025 0.40%
1,034,616 9.60%
Mining (2015*: 0.17%, $18,222)
1,120 Orica Ltd. 12,951 0.12%
Miscellaneous Manufacturing (2015*: 1.76%, $192,650)
370 3M Co. 58,319 0.54%
3,230 General Electric Corp. 94,768 0.88%
275 Roper Technologies, Inc. 50,669 0.47%
203,756 1.89%
Technology (2015*: 8.08%, $879,422)
500 ANSYS Inc. 47,740 0.44%
2,200 Apple, Inc. 265,144 2.46%
2,210 ARM Holdings Plc 34,920 0.33%
330 Bechtle AG 30,496 0.28% 105 Constellation Software Inc./Canada 45,093 0.42%
1,698 Convergys Corp. 44,573 0.41%
2,000 IT Holdings Corp. 49,888 0.46%
480 Jack Henry & Associates, Inc. 37,291 0.35%
650 KLA-Tencor Corp. 43,108 0.40%
3,360 Microsoft Corp. 179,256 1.66%
3,300 ON Semiconductor Corp. 33,957 0.31%
2,100 Oracle Corp. 81,585 0.76%
580 Skyworks Solutions, Inc. 43,280 0.40%
2,250 Taiwan Semiconductor Manufacturing Co., Ltd. 49,073 0.46%
985,404 9.14%
Utilities (2015*: 2.87%, $312,108)
1,120 AES Corp. 12,320 0.11%
1,260 CenterPoint Energy, Inc. 23,348 0.22%
7,410 Centrica Plc 25,782 0.24%
3,100 E.ON SE 32,452 0.30%
880 Edison International 53,354 0.49%
400 Entergy Corp. 27,000 0.25%
1,830 Fortum OYJ 27,296 0.25%
880 Public Service Enterprise Group, Inc. 36,458 0.34%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Global Equity Wealth Creation Fund (continued)
45
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description Fair Value
USD % Net Assets
Equity Investment (continued)
Utilities (2015*: 2.87%, $312,108)
1,330 Questar Corp. 27,544 0.26%
5,000 Tokyo Gas Co., Ltd. 24,956 0.23%
290,510 2.69%
Total Equity Investment (Cost £10,898,581) 10,768,351 99.88%
Preferred Shares
Consumer, Non-cyclical (2015*: 0.60%, $65,862)
550 Henkel AG & Co KGaA 59,580 0.55%
Total Preferred Shares (Cost £59,910) 59,580 0.55%
Total financial assets at fair value through profit or loss (Cost
£10,958,491) 10,827,931 100.43%
Other Liabilities in Excess of other Assets (46,306) (0.43%)
Net Assets Attributable to Holder of Redeemable Shares 10,781,625 100.00%
*Comparatives as at 30 April 2015.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Alternatives Fund
46
The investment objective of Alternatives Fund (the “Fund”) is to achieve long-term capital growth through investment of up to 100% of its net asset value in a diversified portfolio of equities, structured products, deposits, cash, money market instruments and collective investment schemes, which may themselves invest in equities and alternative asset classes such as hedge Funds, real estate, private equity Funds and commodities to the extent that these are permitted under the Regulations. Not more than 20% of the net asset value of the Fund will be invested in securities of issuers established in emerging market
countries.The Fund‟s investment strategy shall not be specific to any particular industry sector or geographic region. The
Fund seeks to invest in asset classes that demonstrate little or no correlation with traditional fixed income or equity markets.
The Investment Manager seeks to identify investments that have the potential to produce positive real returns regardless of
the direction of the bond and equity markets. The Investment Manager employs quantitative screens to analyse an underlying
collective investment schemes or other issuer's nominal returns, volatility of returns and the correlation of the returns with
traditional asset classes. A qualitative approach is then used when interviewing prospective managers of underlying collective
investment schemes or issuers in order to gain a thorough understanding of how past performance has been achieved, the
investment process and to ascertain whether that process is repeatable.
The Fund may invest in equity securities issued by companies with any market capitalisation which may include ordinary
shares or common stock, preference shares, American depository receipts, European depositary receipts and global
depository receipts which are listed, traded or dealt in on a regulated market. The Fund may invest up to 20% of its net asset
value in debt securities convertible into shares. The Fund may not invest more than 20% of its net asset value in any one
collective investment scheme. The collective investment schemes in which the Fund invests will be established as UCITS
under the Directive in any EU Member State and/or UCITS equivalent schemes. Investment in UCITS equivalent schemes
shall be subject to an aggregate limit of 30% of the Fund‟s net asset value. The underlying collective investment schemes in
which the Fund may invest will provide exposure to one or more of the asset classes which form part of the Fund‟s
investment policy. Investment in structured products shall be subject to an aggregate limit of 20% of the Fund‟s net asset
value. The structured products shall comprise securities in which the issuer undertakes to provide a return to investors based
on the performance of a reference asset such as an equity, bond, financial derivative instrument, index or collective
investment scheme. Examples of such structured products include: (i) notes which give exposure to a basket of equity
securities of companies from a particular industry sector over a specified term; or (ii) certificates which give a structured
return based on the performance of a reference index over a specified term. Issuers of structured products are typically banks,
investment firms, brokers or other institutions. The structured products may employ leverage. Please see the section in the
Prospectus entitled “Leverage” for a discussion of the potential leverage level of the Fund. The Fund may utilise any of the
financial derivative instruments in the Prospectus for efficient portfolio management and/or investment purposes. The Fund
may acquire shares in another sub-fund of the Company by investing up to 20% of its net asset value in that other sub-fund.
However, the Fund may not invest in a sub-fund of the Company which itself holds Shares in other sub-funds of the
Company. Where the Fund invests in another sub-fund of the Company or any other Fund managed or advised by the
Investment Manager, it may not charge an annual management and/or investment management fee in respect of the portion of its
assets invested in the other sub-fund/fund. The Fund may invest up to 10% of its assets in transferable securities that are not
listed, traded or dealt in on regulated markets. These transferable securities may include equities, units of collective investment
schemes (including exchange traded funds) which are not UCITS, or any other transferable security which is a permitted
investment under the Regulations. Furthermore, the Fund may hold ancillary liquid assets where in view of market
circumstances the Investment Manager believes that it would not be in the interests of Shareholders for the Fund to be fully
invested or where the Fund needs to maintain liquidity to meet repurchase requests. The base currency of the Fund is Sterling. The performance benchmark against which the Fund‟s performance is measured is the BBA LIBOR 3 Month GBP*. The
benchmark comparison for the period was a rise of 0.29%. Class A Stg£ and Class P Stg£ Shares of the Fund launched on 2 March 2014. Class B Stg£ Shares of the Fund are also
available.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Alternatives Fund (continued)
47
Investment Manager’s Report
Performance
The Fund returned a modest loss of -1.19% over the six months to 31st October 2015, against the benchmark (ICE Libor 1
Month) which returned 0.29%, in what turned out to be an eventful period in global markets.
Review
Markets experienced heightened volatility during the third quarter of the year initially on concerns over the extent of the
slowdown in China, triggered by the government‟s decision to devalue the renmimbi, and the Federal Reserve‟s decision to
delay raising US interest rates. After a period of relative stability, risk assets sold off sharply in August only to recover
equally sharply in October. Not surprisingly, in an environment where global equity markets experienced two marked
reversals in trend within a short space of time the performance of our active long short and macro managers was decidedly
mixed. Those who were positioned defensively protected capital in the sell-off but did not participate in October‟s rally,
whilst those who were more bullishly positioned suffered in the sell-off but did participate in the recovery. In that regard,
there was a clear case of managers cancelling each other out over the period. Equally frustrating were the mixed returns from
our asset backed income investments. Whilst our infrastructure and property holdings produced positive returns over the
period, our aircraft leasing investments fell in value on renewed concerns over the future residual values of Airbus A380
super jumbos.
Outlook
Investors should prepare for continuing volatility as markets adjust to monetary tightening for the first time in almost seven
years in the US and continuing quantitative easing in Europe and Japan. A further and continuing factor, which was very
evident during the third quarter, is the influence of algorithm and systematic trading strategies which have the effect of
distorting short term market movements.
T Satchell
November 2015
* References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its
benchmark.
Alternatives Fund Top 5 Investments as at 31 October 2015
Shares/Par Security Description Fair Value GBP % Net Assets
1,171,566 GCP Student Living Plc 1,628,477 7.23%
15,000 Spinnaker Emerging Markets Macro Fund 1,490,850 6.62%
15,000 Keynes Dynamic Beta Strategy Fund 1,462,500 6.50%
1,516 Alpha UCITS SICAV - Silvaris Global Equity Fund 1,445,955 6.42%
1,478 Alpha UCITS SICAV - Quantmetrics Multi Strategy Fund 1,414,968 6.29%
7,442,750 33.06%
Alternatives Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP % Total Assets
Transferable securities and money market instruments admitted to official
stock exchanges or traded on a regulated market 1,781,377 7.86%
Collective Investment Schemes 20,631,395 91.32%
Cash 172,997 0.77%
Other assets 4,053 0.02%
Total assets 22,589,822 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Alternatives Fund (continued)
48
Portfolio Investments as at 31 October 2015
Shares/Par Security description Fair Value GBP % Net Assets
Equity Investment
Diversified Financial Services (2015*: 1.62%, £335,283)
700,000 Amedeo Air Four Plus Ltd. 710,500 3.15%
307,600 Doric Nimrod Air Three Ltd. 307,600 1.37%
1,018,100 4.52%
Real Estate Investment Trust (2015*: 0.91%, £188,570)
1171566 GCP Student Living Plc 1,628,477 7.23%
154,172 International Public Partnerships Ltd. 180,604 0.80%
1,809,081 8.03%
Total Equity Investment (Cost £2,704,838) 2,827,181 12.55%
Investment Fund
Alternative Investment (2015*: 14.15%, £2,937,643)
907 JL Equity Market Neutral 1,037,136 4.61%
10,169
Lyxor Dimension IRL plc - Lyxor/Tiedemann Arbitrage Strategy
Fund 995,403 4.42%
7,530
MontLake UCITS Platform plc - Dunn WMA Institutional UCITS
Fund 982,164 4.36%
15,000 Spinnaker Emerging Markets Macro Fund 1,490,850 6.62%
4,505,553 20.01%
Asset Allocation Fund (2015*: 30.80%, £6,390,242)
1,478 Alpha UCITS SICAV - Quantmetrics Multi Strategy Fund 1,414,968 6.29%
410,000 CF Odey Absolute Return Fund 1,348,285 5.99%
875,000 JPM Multi-Asset Macro Fund 1,164,625 5.17%
6,120 Odey Investments Plc - Odey Odyssey Fund 919,376 4.08%
1,203,000
Standard Life Investment Co - Global Absolute Return Strategies
Fund 1,013,888 4.50%
5,861,142 26.03%
Closed-end Funds (2015*: 2.84%, £588,564)
116,731 3i Infrastructure Plc 200,777 0.89%
156,692 GCP Infrastructure Investments Ltd. 189,284 0.84%
128,725 HICL Infrastructure Co., Ltd. Fund 199,009 0.88%
15,000 Keynes Dynamic Beta Strategy Fund 1,462,500 6.50%
2,051,570 9.11%
Debt Fund (2015*: 10.36%, £2,148,099)
95,700 Neuberger Berman Global Bond Absolute Return Fund 950,301 4.22%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Alternatives Fund (continued)
49
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description Fair Value GBP % Net Assets Investment Fund (continued)
Equity Fund (2015*: 19.46%, £4,037,706)
1,516 Alpha UCITS SICAV - Silvaris Global Equity Fund 1,445,955 6.42%
505,615 FP Argonaut European Absolute Return Fund 1,073,855 4.77%
146,000
Goldman Sachs Structured Investments SICAV - GS Equity Risk
Premia Long/Short Port 985,119 4.38%
9,590 Verrazzano SICAV - European Long-Short 1,023,855 4.55%
4,528,784 20.12%
Property Funds (2015*: 7.84%, £1,626,709)
1,150,000 Channel Islands Property Fund Ltd. 1,108,336 4.92%
Total Investment Fund (Cost £18,514,526) 19,005,686 84.40%
Preferred Shares
Diversified Financial Services (2015*: 3.20%, £664,735)
278,132 Doric Nimrod Air Two Ltd. 579,905 2.58%
Total Preferred Shares (Cost £645,529) 579,905 2.58%
Total financial assets at fair value through profit or loss (Cost
£21,864,893) 22,412,772 99.54%
Other Assets in Excess of other Liabilities 103,761 0.46%
Net Assets Attributable to Holder of Redeemable Shares 22,516,533 100.00%
*Comparatives as at 30 April 2015.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Cautious Income Fund
50
The investment objective of Waverton Cautious Income Fund (the “Fund”) is to achieve capital growth and generate income through investment of up to 100 per cent. of its Net asset value in a diversified portfolio of equities, fixed and/ or floating rate, global government and corporate debt securities, structured products, deposits, cash, money market instruments and collective investment schemes which may themselves invest in the foregoing asset Classes and commodities to the extent that these are permitted by the Regulations. The Fund‟s investment strategy shall not be specific to any particular industry sector or geographic region. The Investment
Manager seeks to identify a combination of investments that have the potential to produce positive real returns over a
medium to long term investment horizon, while providing income through the investment cycle. The Investment Manager
employs quantitative screens to analyse an underlying collective investment scheme‟s or other issuer's nominal returns,
volatility of returns and the correlation of the returns with traditional asset Classes. A qualitative approach is then used when
interviewing prospective managers of underlying collective investment schemes or issuers in order to gain a thorough
understanding of how past performance has been achieved, the investment process and to ascertain whether that process is
repeatable. The Fund may invest in equity securities issued by companies with any market capitalisation which may include ordinary shares or common stock, preference shares, American depository receipts, European depositary receipts and global depository receipts which are listed, traded or dealt in on a regulated market. The Fund may invest up to 20 per cent. of its net asset value in debt securities, such as OECD government or supranational debt securities, corporate debt securities, bankers‟ acceptances and commercial and in convertible debt securities. The debt securities in which the Fund invests shall not be from any particular industry sector. The debt securities in which the Fund invests shall be predominantly investment grade rated by a rating agency such as Moody‟s or Standard & Poor‟s. Not more than 20 per cent. of the net asset value of Fund will be invested in securities of issuers established in emerging market countries. The Fund may not invest more than 20 per cent. of its Net asset value in any one collective investment scheme. The collective investment schemes in which the Fund invests will be established as UCITS under the Directive in any EU Member State and/or UCITS equivalent schemes. Investment in UCITS equivalent schemes shall be subject to an aggregate limit of 30 per cent. of the Fund‟s net asset value. The underlying collective investment schemes in which the Fund may invest will provide exposure to one or more of the asset Classes which form part of the Fund‟s investment policy. Investment in structured products shall be subject to an aggregate limit of 20 per cent. of the Fund‟s net asset value. The structured products shall comprise securities in which the issuer undertakes to provide a return to investors based on the performance of a reference asset such as an equity, debt security, financial derivative instrument, index or collective investment scheme. Examples of such structured products include: (i) notes which give exposure to a basket of equity securities of companies from a particular industry sector over a specified term; or (ii) certificates which give a structured return based on the performance of a reference index over a specified term. Issuers of structured products are typically banks, investment firms, brokers or other institutions. The structured products may employ leverage. Please see the section below entitled “Leverage” for a discussion of the potential leverage level of the Fund. The Fund may utilise any of the financial derivative instruments described in the section entitled “Investment Techniques and Instruments” for efficient portfolio management and/or investment purposes. The Fund may acquire shares in another sub-fund of the Company by investing up to 20 per cent. of its net asset value in that other sub-fund. However, the Fund may not invest in a sub-fund of the Company which itself holds Shares in other Sub-Funds of the Company. Where the Fund invests in another sub-fund of the Company or any other Fund managed or advised by the Investment Manager, it may not charge an annual management and/or investment management fee in respect of the portion of its assets invested in the other sub-fund/fund. The Fund may invest up to 10 per cent. of its assets in transferable securities that are not listed, traded or dealt in on regulated markets. These transferable securities may include equities, units of collective investment schemes (including exchange traded funds) which are not UCITS, or any other transferable security which is a permitted investment under the Regulations. Furthermore, the Fund may hold ancillary liquid assets where in view of market circumstances the Investment Manager believes that it would not be in the interests of Shareholders for the Fund to be fully invested or where the Fund needs to maintain liquidity to meet repurchase requests. The base currency of the Fund is Sterling. The performance benchmark against which the Fund‟s performance is measured is the combined performance of the following benchmarks, with the contribution of such benchmark to the overall performance being indicated in the brackets after its name: FTSE All-World Index (total return) (45 per cent.), FTSE Actuaries UK Gilts Series (total return) (35 per cent.) and GBP 1 month Libor (20 per cent.)*. Class B Stg£ and Class P Stg£ Shares of the Fund launched on 6 October 2014.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Cautious Income Fund (continued)
51
Investment Manager’s Report
Performance
The Fund struggled over the period (performance was -2.22% versus the benchmark of -1.76%), as global risk assets sold off
from their peak in April. As mentioned in the last update, the investment objective of the fund is to “achieve capital growth
and generate income”. While we believe we can generate capital growth that will at least keep up with inflation over time
(indeed, we have generated positive absolute performance since inception), dependability and consistency of income is
paramount, and we are pleased to report that the fund has paid three dividends to date, annualising at ~3.8% on a forward
looking basis (according to Citi data).
Review
Early April saw risk assets continue the ascension they had been on since the beginning of the year, however they reached a
high on the 28th
of that month, beginning a decline that culminated in a sharp sell-off in August. In the initial weak period for
equity markets, duration bonds offered little protection, only really providing diversification benefit in the August drawdown.
Since the sharp sell-off equity markets have cautiously retrenched much of the lost ground and volatility has come back to
post-Global Financial Crisis average.
Our underweight to duration bonds hurt performance during the teeth of the drawdown, as did our overweight to equities, in
particular Europe and Japan. Our underweight to North American equities also hurt performance in the period. However,
despite volatile markets we have maintained an overweight equity stance on valuation grounds, as well as our preference for
Japanese and European equities based on our outlook for growth in both regions. Such positioning has aided the Fund in the
retrenchment of markets: Japanese and European equities bounced notably, while duration bonds have lagged.
The Fund‟s allocation to Alternative asset classes has also contributed positive relative performance over the period. The
allocation helped limit the drawdown of the fund, as well as providing positive capital growth and income since inception.
Outlook
We remain cautiously optimistic about the performance of risk assets, particularly relative to duration bonds. The following
six months could conceivably see the first Federal Reserve rate-hike since the Global Financial Crisis (which may have a
negative effect on performance of the Fund), however we believe the move will be small, well flagged and followed by a
very shallow path upwards (ceteris paribus). We continue to hold an overweight equity position, however are currently
running a low beta approach, mindful of valuations and other macroeconomic risks.
J Mee
November 2015
* References to benchmarks are for illustrative purposes only. There is no guarantee that the Fund will outperform its
benchmark.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Cautious Income Fund (continued)
52
Cautious Income Fund Top 5 Investments by issuer as at 31 October 2015
Shares/Par Security Description Fair Value GBP
% Net Assets
777,582 GPC 1,010,394 8.91%
1,236,304 Schroder 781,401 6.89%
62,200
Waverton Investment Funds Plc - Waverton Sterling Bond
Fund 592,268 5.22%
10,269 iShares Core US Growth ETF 553,193 4.88%
9,109 Vanguard Dividend Appreciation ETE 469,694 4.14%
3,406,950 30.04%
Cautious Income Fund Portfolio Analysis as at 31 October 2015 Fair Value GBP
% of Total Assets
Transferable securities and money market instruments admitted to official stock
exchanges or traded on a regulated market 1,823,110 15.89%
Collective Investment Schemes 8,336,379 72.64%
Cash 1,258,204 10.96%
Other assets 58,868 0.51%
Total assets 11,476,561 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Cautious Income Fund (continued)
53
Portfolio Investments as at 31 October 2015
Shares/Par Security description
Fair Value
GBP % Net Assets
Corporate Bonds
Financial (2015*: 1.46%, £147,915)
320,000 SGA Societe Generale Acceptance NV, 3.89% , due 10/02/20 306,048 2.70%
Savings & Loans (2015*: -%, £-)
104,000 Nationwide Building Society, 6.88%, due 11/03/49 104,778 0.92%
Total Corporate Bonds (Cost £407,838) 410,826 3.62%
Government Obligation
Government Bonds - (2015*: 4.72%, £480,057)
136,609 United Kingdom Gilt, 2.75%, due 07/09/24 146,882 1.30%
80,000 United Kingdom Gilt, 3.25%, due 22/01/44 89,740 0.79%
223,800 United States Treasury Note/Bond, 2.38%, due 15/08/24 148,870 1.31%
120,000 United States Treasury Note/Bond, 3.63%, due 15/02/44 88,802 0.78%
Total Government Obligation (Cost £447,588) 474,294 4.18%
Equity Investment
Equity Fund (2015*: -%, £-)
150,651 International Public Partnerships Ltd. 198,407 1.75%
Financial (2015*: 2.04%, £207,297)
18,831 International Public Partnerships Ltd. 132 0.00%
Financial Fund (2015*: -%, £-)
25,852 P2P Global Investments Plc/Fund 255,935 2.25%
246,204 Sequoia Economic Infrastructure Income Fund Ltd. 8,925 0.08%
264,860 2.33%
Real Estate Investment Trust (2015*: %, £-)
390,522 GCP Student Living Plc 542,826 4.79%
Total Equity Investment (Cost £984,537) 1,006,225 8.87%
Preferred Shares
Financial - (2015*: 1.93%, £195,705)
92,314 Doric Nimrod Air Two Ltd. 192,475 1.70%
Total Preferred Shares (Cost £208,235) 192,475 1.70%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Cautious Income Fund (continued)
54
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
GBP % Net Assets
Investment Fund
Alternative Investment (2015*: 1.05%, £106,849)
1,046
Lyxor Dimension IRL plc - Lyxor/Tiedemann Arbitrage Strategy
Fund 101,970 0.90%
1,599
MontLake UCITS Platform plc - Dunn WMA Institutional UCITS
Fund 208,576 1.84%
310,546 2.74%
Asset Allocation Fund (2015*: 1.06%, £107,825)
83,969 JPM Multi-Asset Macro Fund 111,090 0.98%
Debt Fund (2015*: 8.96%, £910,015)
62,200 Waverton Investment Funds PLC - Waverton Sterling Bond Fund 592,268 5.22%
Equity Fund (2015*: 51.10%, £5,190,942)
396,620 Artemis Global Income Fund 316,463 2.79%
27,902 BlackRock Global Funds - European Equity Income fund 287,182 2.53%
117,685 CF Morant Wright Nippon Yield Fund 299,179 2.63%
275,347
FP Argonaut Funds - FP Argonaut European Enhanced Income
Fund 420,354 3.71%
35,158 Goldman Sachs Structured Investments SICAV 352,146 3.11%
10,269 iShares Core US Growth ETF 553,193 4.88%
91,292 JPMorgan Fund ICVC - US Equity Income Fund 195,182 1.72%
3,718 RWC Funds - Global Enhanced Dividend Fund 347,186 3.06%
1,055,661 Schroder Asian Income Maximiser Fund 490,566 4.33%
180,643 Schroder European Alpha Income Fund 290,835 2.56%
305,939 Somerset Emerging Markets Dividend Growth Fund 322,704 2.85%
45,194 Source JPX-Nikkei 400 UCITS ETF USD Hedged 420,197 3.71%
188,749 TB Wise Evenlode Income Fund 313,474 2.76%
9,109 Vanguard Dividend Appreciation ETF 469,694 4.14%
6,884 WisdomTree Total Dividend Fund 328,816 2.90%
5,407,171 47.68%
Financial Fund (2015*: 13.75%, £1,397,038)
387,060 GCP Infrastructure Investments Ltd. 467,568 4.12%
46,068 Martin Currie Pacific Trust Plc 121,447 1.07%
295,445 Sequoia Economic Infrastructure Income Fund Ltd. 305,047 2.69%
894,062 7.88%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Cautious Income Fund (continued)
55
Portfolio Investments as at 31 October 2015 (continued)
Shares/Par Security description
Fair Value
GBP % Net Assets
Real Estate Fund (2015*: 5.03%, £510,647)
486,000 Channel Islands Property Fund Ltd. 468,392 4.13%
Total Investment Fund (Cost £7,796,533) 7,783,529 68.62%
Floating Rate Note
Diversified Financial Services - (2015*: -%, £-)
300,000 SG Issuer SA, 4.57%, due 10/04/20 292,140 2.58%
Total Floating Rate Note (Cost £300,000) 292,140 2.58%
Total financial assets at fair value through profit or loss (Cost
£10,144,731) 10,159,489 89.58%
Other Assets in Excess of other Liabilities 1,181,125 10.42%
Net Assets Attributable to Holder of Redeemable Shares 11,340,614 100.00%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF FINANCIAL POSITION
As at 31 October 2015
56
Asia Pacific Fund Global Equity Fund UK Fund
31 October 2015
20152015
30 April 2015 31 October 2015 30 April 2015 31 October 2015 30 April 2015
Notes USD USD GBP GBP GBP GBP
Current Assets: Financial assets at fair value through profit or loss, at cost 105,189,636 90,543,454
46,381,306 47,908,887
46,490,482
46,490,482
21,101,385 21,783,723
Financial assets at fair value through profit or loss, at fair value 1 93,447,600 94,651,378
50,365,164 59,525,178 23,620,493 25,270,447
Cash 8 5,669,206 6,114,691
2,178,428 2,797,179
1,235,242 837,378
Margins held with futures brokers - - - - - -
Dividends and interest receivable 96,837 105,612
69,965 120,815
66,277 162,243
Receivable from investments sold 24,414 932,305
- 4,419,752 - -
Unrealised gain on futures contracts 1 - - - - - -
Unrealised gain on options contracts 1 - - - - - -
Unrealised appreciation on forward currency contracts 1 18 - - - - -
Receivable from subscriptions due 49,384 17,687
145,616 53,860 -
- -
Receivable from investment manager 3 263 337 - - - -
Other assets - - - - - -
Total Assets 99,287,722 101,822,010
52,759,173 66,916,784
24,922,012 26,270,068
Liabilities (amounts falling due within one financial year):
Financial liabilities at fair value through profit or loss, at cost - - - - - - Financial liabilities at fair value through profit or loss, at fair value
vvalue vavalue
value
value value
1 - - - - - - Bank Overdraft 1,097,759 - - - - -
Distributions payable 4,351,215 77,784
158,630 162,665
274,001 192,260
Payable for investments purchased 2,510,531 687,426
– - 4,286,517 - -
Unrealised loss on futures contracts - - - - - -
Unrealised depreciation on forward currency contracts - 749
– - 2,308
- -
Payable for redemptions due - - 62,980 324,397
25,232 296,393
Accrued expenses:
Investment management fee 3 73,863 72,481
45,640 50,288
-
20,252 20,733
Performance fee 3 - - - - - -
Administration fee 3 6,301 19,828
900 6,561
1,039 5,023
Custodian and trustee fees 3 10,782 12,442
3,189 3,174 4,790 4,450
Transfer agency fee 3 2,640 12,687
3,647 6,489
2,666 4,235
Directors fees 4 1,655 659
777 234
344 133
Audit fee 5 2,554 8,305
1,557 4,930
2,825 4,780
Other liabilities 22,316 36,267
12,830 11,856
15,114 12,474
Total Liabilities (excluding net assets attributable to holders of
redeemable shares) 8,079,616 928,628 290,150 4,859,419 346,263 540,481
Net Assets attributable to holders of redeemable shares 91,208,106 100,893,382
52,469,023 62,057,365
24,575,749 25,729,587
The Statement of Financial Position are continued on pages 57 to 59.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF FINANCIAL POSITION (continued)
As at 31 October 2015
57
European Fund Sterling Bond Fund Equity Fund
31 October 2015 30 April 2015 31 October 2015 30 April 2015 31 October 2015 30 April 2015
Notes EUR EUR GBP GBP GBP GBP
Current Assets: Financial assets at fair value through profit or loss, at cost - 1,134,660,123
126,189,655 115,643,196
46,490,482
46,490,482
122,867,445 112,400,583
Financial assets at fair value through profit or loss, at fair value 1 - 1,355,555,855
126,661,422 121,090,855 128,346,382 128,376,318 Cash 8 3,248,978 248,085,953
4,421,546 13,406,774
1,483,826 1,129,018
Margins held with futures brokers - - 1,826,437 - - -
Dividends and interest receivable - 2,588,047
2,521,973 2,832,315 242,522 46,826
Receivable from investments sold - 39,471,869
- - - -
Unrealised gain on futures contracts 1 - - - 385,000 - -
Unrealised gain on options contracts 1 - - 164,160 100,486 - -
Unrealised appreciation on forward currency contracts 1 - - 306,504 1,325,061 - -
Receivable from subscriptions due - 628,683
93,729 168,792
6,822 149,769
Receivable from investment manager 3 - 1,492 - 5,394 8,080 8,080
Other assets - - - - - 1,929
Total Assets 3,248,978 1,646,331,899
135,995,771 139,314,677
130,087,632 129,711,940
Liabilities (amounts falling due within one financial year):
Financial liabilities at fair value through profit or loss, at cost - - - - - - Financial liabilities at fair value through profit or loss, at fair value
valuevalue value
1 - - - - - - Bank Overdraft - - - - - -
Distributions payable - 6,889,618 1,692,714 1,797,846 391,309 28,239
Payable for investments purchased - 22,521,016 - - - - Unrealised loss on futures contracts - - 204,544 312,246 - - Unrealised depreciation on forward currency contracts - - - 176,813 - 181,434
Payable for redemptions due - 1,431,563 187,396 166,685 322,124 -
Accrued expenses:
Investment management fee 3 2,958,395 1,429,065 80,732 82,882 88,460 88,126
Performance fee 3 - - - - - -
Administration fee 3 2,065 103,081 4,885 20,988 4,163 18,728
Custodian and trustee fees 3 58,190 22,555 10,592 10,615 944 –
Transfer agency fee 3 13,089 28,929 4,118 9,664 6,488 9,217
Directors fees 4 1,063 5,894 1,554 676 1,735 451
Audit fee 5 12,282 5,598 5,077 4,592 5,078 4,592
Other liabilities 203,894 30,618 21,445 13,330 14,658 6,941
Total Liabilities (excluding net assets attributable to holders of
redeemable shares) 3,248,978 32,467,937 2,213,057 2,596,337 834,959 337,728
Net Assets attributable to holders of redeemable shares - 1,613,863,962
133,782,714 136,718,340
129,252,673 129,374,212
The Statement of Financial Position are continued on pages 58 to 59.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF FINANCIAL POSITION (continued)
As at 31 October 2015
58
Global Bond Fund
Global Equity
Wealth Creation Fund Alternatives Fund
31 October 2015
2015
30 April 2015 31 October 2015 30 April 2015 31 October 2015 30 April 2015
Notes USD USD USD USD GBP GBP
Current Assets: Financial assets at fair value through profit or loss, at cost 88,989,505 90,624,756 10,958,491 10,289,750 21,864,893 18,093,002
Financial assets at fair value through profit or loss, at fair value 1 85,206,966 90,475,736 10,827,931 10,705,180 22,412,772 18,917,551 Cash 8 3,453,349 10,751,638 31,622 236,761 172,997 1,884,327
Margins held with futures brokers 1,957,978 - - - -
Dividends and interest receivable 1,760,825 1,969,624 13,359 17,871 2,977 39,892
Receivable from investments sold - - - 72,309 - -
Unrealised gain on futures contracts 1 - 262,997 - - - -
Unrealised gain on options contracts 1 - 58,125 - - - -
Unrealised appreciation on forward currency contracts 1 68,388 214,381 - - - -
Receivable from subscriptions due 85,290 169,904 - - 1,076 55,058
Receivable from investment manager 3 224 10,906 - - - -
Other assets - - 25,554 13,621 - 1,080
Total Assets 92,533,020 103,913,311 10,898,466 11,045,742
22,589,822 20,897,908
Liabilities (amounts falling due within one financial year):
Financial liabilities at fair value through profit or loss, at cost - - - - - -
Financial liabilities at fair value through profit or loss, at fair value
vvaluevaluevaluevalue fair value 1 - - - - - -
Bank Overdraft - - -
Distributions payable 1,111,609 1,310,466 86,650 84,024 53,650 16,092
Payable for investments purchased - - - 48,036 - -
Unrealised loss on futures contracts 184,856 298,828 - - - -
Unrealised depreciation on forward currency contracts 1 275,773 2,115,937 - - - -
Payable for redemptions due 1 13,851 - - - 2,797 107,627
Accrued expenses:
Investment management fee 3 45,266 53,928 - - 8,001 7,314
Performance fee 3 - - - - - -
Administration fee 3 8,645 20,483 5,740 8,707 1,211 4,988
Custodian and trustee fees 3 5,789 4,675 4,773 - - -
Transfer agency fee 3 4,372 12,530 - 6,100 46 5,399
Directors fees 4 1,273 374 147 42 351 61
Audit fee 5 3,506 8,211 9,781 7,648 1,603 4,967
Other liabilities 25,846 10,973 9,750 4,330 5,630 2,851
Total Liabilities (excluding net assets attributable to holders of
redeemable shares) 1,680,786 3,836,405 116,841 158,887 73,289 149,299
Net Assets attributable to holders of redeemable shares 90,852,234 100,076,906 10,781,625 10,886,855
22,516,533 20,748,609
The Statement of Financial Position are continued on page 59.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF FINANCIAL POSITION (continued)
As at 31 October 2015
59
The accompanying notes form an integral part of these financial statements.
:
Cautious Income Fund Cautions Income Fund Total Company
31 October 2015 30 April 2015 31 October 2015 30 April 2015
Notes GBP GBP EUR EUR
Current Assets: Financial assets at fair value through profit or loss, at cost 10,144,731 8,922,550 713,908,727 1,753,305,565 Financial assets at fair value through profit or loss, at fair value 1 10,159,489 9,254,290 714,813,259 2,030,044,680
Cash 8 1,258,204 945,264 28,389,017 292,309,960 Margins held with futures brokers - 4,716,403 - Dividends and interest receivable 58,868 37,226 6,208,779 8,922,711 Receivable from investments sold - - 26,969 46,460,865 Unrealised gain on futures contracts 1 - - - 765,601 Unrealised gain on options contracts 1 - - 229,510 190,426 Unrealised appreciation on forward currency contracts 1 - - 504,085 2,017,770 Receivable from subscriptions due - 25,000 494,436 1,419,908 Receivable from investment manager 3 - - 13,327 30,107 Other assets - 11,268 28,665 31,847
Total Assets 11,476,561 10,273,048
755,424,450 2,382,193,875
Liabilities (amounts falling due within one financial year):
Financial liabilities at fair value through profit or loss, at cost - - - -
Financial liabilities at fair value through profit or loss at fair value
iross,lossfavvaluev
1 - - - - Bank Overdraft - 1,212,639 - Distributions payable 109,529 90,555 9,876,875 11,357,975 Payable for investments purchased - - 2,773,258 29,085,897 Unrealised loss on futures contracts - - 490,172 697,344 Unrealised depreciation on forward currency contracts 1 - - 304,633 2,138,117 Payable for redemptions due 1 - - 854,894 2,915,262 Accrued expenses: Investment management fee 3 23,313 5,224 3,462,440 1,892,859 Performance fee 3 - - - - Administration fee 3 - - 41,972 224,453 Custodian and trustee fees 3 - - 109,052 62,986 Transfer agency fee 3 - - 44,553 105,153 Directors fees 4 536 - 11,865 8,998 Audit fee 5 1,129 2,796 53,925 63,927 Other liabilities 1,440 15,771 367,281 163,835
Total Liabilities (excluding net assets attributable to holders
of redeemable shares) 135,947 114,346 19,603,559 48,716,806
Net Assets attributable to holders of redeemable shares 11,340,614 10,158,702
735,820,891 2,333, 477,069
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF COMPREHENSIVE INCOME
For the half financial year ended 31 October 2015
60
Asia Pacific Fund Global Equity Fund UK Fund
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
Notes USD USD GBP GBP GBP GBP
Investment Income:
Dividend income 1 5,018,093 1,556,536 647,258 483,536 443,897 482,375
Withholding tax 1 (33,446) (196,715) (130,081) (106,361) (3,502) (2,396)
Interest income 1 - (1,655) - 932 - -
Margin Interest Income - - - - - -
Other income (3,745) (2,426) - 2,242 - 3
Net (loss)/gain on financial assets and liabilities at fair value
through profit or loss 1 (15,727,403) 107,812 (5,148,775) 1,288,878 (527,094) (1,139,905)
Total Income (10,746,501) 1,463,552 (4,631,598) 1,669,227 (86,699) (659,923)
Expenses: Investment management fee 3 470,470 471,800 290,426 264,082 126,171 134,124
Performance fee 3 - - - - - -
Administration fee 3 35,261 39,733 19,466 21,313 9,142 12,563
Custodian & trustee fee 3 65,265 46,561 11,966 10,541 5,535 4,381
Transfer agency fee 3 26,980 28,226 12,928 16,794 10,844 13,159
Directors fee 4 4,933 2,381 2,980 1,369 1,264 672
Audit fee 5 3,433 3,547 2,580 2,153 3,997 2,154
Legal fees 9,276 4,068 5,374 2,562 2,281 1,299
Transaction costs 1 608,384 172,310 37,922 183,800 74,791 39,013
Other expenses 24,300 27,863 12,826 8,975 7,159 6,638
Total Expenses 1,248,302 796,489 396,468 511,589 241,184 214,003
Net Investment (Loss)/Gain (11,994,803) 667,063 (5,028,066) 1,157,638 (327,883) (873,926)
Finance Costs: Dividends to holders of redeemable shares 14 (4,351,215) (879,721) (158,630) (52,560) (274,001) (304,992)
Net (Decrease)/Increase in Net Assets Attributable to Holders
of Redeemable Shares Resulting from Operations (16,346,018) (212,658) (5,186,696) 1,105,078 (601,884) (1,178,918)
Gains and losses arise solely from continuing operations. There were no gains or losses other than those reflected above.
The Statement of Comprehensive Income are continued on pages 61 to 63.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF COMPREHENSIVE INCOME (continued)
For the half financial year ended 31 October 2015
61
European Fund1 Sterling Bond Fund Equity Fund
for the
period
to 30 June
2015
for the half
financial year
ended 31 October
2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
Note EUR EUR GBP GBP GBP GBP
Investment Income:
Dividend income 1 13,210,278 10,343,167 - - 508,395 -
Withholding tax 1 (1,787,050) (2,441,537) (129,946) (31,576) (7,769) -
Interest income 1 - (1,464) 3,691,122 3,617,975 529,463 116
Margin interest income - - 1,457 - - -
Other income 109 1,593 (9) 26,616 - 996
Net (loss)/gain on financial assets and liabilities at fair value
through profit or loss 1 (31,520,428) (5,106,367) (4,837,074) (1,725,789) (9,049,002) 3,528,440
Total Income (20,097,091) 2,795,392 (1,274,450) 1,887,226 (8,018,913) 3,529,552
Expenses:
Investment management fee 3 2,733,602 6,151,826 499,895 510,895 504,603 419,112
Performance fee 3 - - - - - -
Administration fee 3 133,162 238,248 41,380 48,118 39,834 39,602
Custodian & trustee fee 3 202,151 213,712 22,977 25,862 28,648 18,297
Transfer agency fee 3 51,774 81,341 23,800 23,248 24,891 27,043
Directors fee 4 11,347 30,535 6,697 4,156 6,744 3,040
Audit fee 5 6,684 3,066 6,437 2,788 6,438 2,790
Legal fees 29,303 50,675 11,249 5,868 12,583 5,465
Transaction costs 1 3,129,757 1,736,809 - - 142,917 22,346
Other expenses 312,318 67,061 13,478 8,646 15,529 8,722
Total Expenses 6,610,098 8,573,273 625,913 629,581 782,187 546,417
Net Investment (Loss)/Gain (26,707,189) (5,777,881) (1,900,363) 1,257,645 (8,801,100) 2,983,135
Finance Costs:
Dividends to holders of redeemable shares 14 - (1,162,556) (3,575,682) (3,705,234) (391,309) -
Net (Decrease)/Increase in Net Assets Attributable to
Holders of Redeemable Shares Resulting from Operations (26,707,189) (6,940,437) (5,476,045) (2,447,589) (9,192,409) 2,983,135
1The European Fund on the 30 June merged with Odey European Focus Fund thereafter it ceased operation.
Fund theresceas
.
Gains and losses arise solely from continuing operations. There were no gains or losses other than those reflected above.
The Statement of Comprehensive Income are continued on pages 62 to 63.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF COMPREHENSIVE INCOME (continued)
For the half financial year ended 31 October 2015
62
Global Bond Fund
Global Equity Wealth
Creation Fund Alternatives Fund
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
for the half
financial year
ended 31
October 2015
for the half
financial year
ended 31
October 2014
Notes USD USD USD USD GBP GBP Investment Income: Dividend income 1 - - 126,063 98,303 136,164 33,453 Withholding tax 1 (111,062) (27,459) (25,797) (20,631) - (616) Interest income 1 2,743,092 2,382,658 - - - 990 Margin interest income 944 - - Other income 49 18,114 48,354 19,364 2,506 50 Net (loss)/gain on financial assets and liabilities at fair value
through profit or loss 1 (4,555,512) (1,930,897) (586,390) (114,096) (232,480)
42,305
Total Income (1,922,489) 442,416 (437,770) (17,060) (93,810) 76,182
Expenses: Investment management fee 3 278,434 253,663 - - 46,392 26,801 Performance fee 3 - 113,186 - - - - Administration fee 3 36,847 39,105 16,419 7,330 9,251 4,842 Custodian & trustee fee 3 20,040 19,504 16,202 4,864 6,155 2,630 Transfer agency fee 3 21,342 29,653 6,469 8,401 11,491 7,748 Directors fee 4 5,100 2,423 565 167 1,227 197 Audit fee 5 4,479 3,959 11,317 2,243 2,588 1,560 Legal fees 9,446 3,206 1,098 434 2,352 494 Transaction costs 1 - - 2,276 3,791 - 2,385 Other expenses 26,380 27,182 9,807 9,636 5,816 13,330
Total Expenses 402,068 491,881 64,153 36,866 85,272 59,987
Net Investment (Loss)/Gain (2,324,557) (49,465) (501,923) (53,926) (179,082) 16,195
Finance Costs:
Dividends to holders of redeemable shares 14 (2,436,231) (2,356,704) (86,650) (63,670) (53,650) (2,919)
Net (Decrease)/Increase in Net Assets Attributable to
Holders of Redeemable Shares Resulting from Operations (4,760,788) (2,406,169) (588,573) (117,596) (232,732)
13,276
Gains and losses arise solely from continuing operations. There were no gains or losses other than those reflected above.
The Statement of Comprehensive Income are continued on page 63.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF COMPREHENSIVE INCOME (continued)
For the half financial year ended 31 October 2015
63
Cautious Income Fund
*Cautious Fund
*Cautious Income Fund
Fund
Total Company
for the half financial
year ended 31
October 2015
for the half
financial year ended 31
October 2014
for the half
financial year ended 31
October 2015
for the half
financial year ended 31
October 2014
Notes GBP GBP EUR EUR Investment Income: Dividend income 1 206,606 3,103 20,568,039 12,861,839
Withholding tax 1 (4,152) (122) (2,324,254) (2,805,035)
Interest income 1 23,058 632 8,384,328 6,364,238
Margin interest income - - 2,881 -
Other income 11,388 - 59,844 65,859
Net (loss)/gain on financial assets and liabilities at fair value
through profit or loss 1 (309,744) 15,856 (78,369,023) (4,047,959)
Total Income (72,844) 19,469 (51,678,185) 12,438,942
Expenses: Investment management fee 3 33,130 2,698 5,498,279 8,411,774
Performance fee 3 - - - 85,966
Administration fee 3 3,940 269 384,362 463,180
Custodian & trustee fee 3 6,037 311 407,120 345,650
Transfer agency fee 3 6,053 185 226,535 242,670
Directors fee 4 991 29 48,618 46,222
Audit fee 5 4,285 286 60,700 25,236 Legal fees 5,621 445 102,118 76,836 Transaction costs 1 8,757 3,956 4,050,215 2,187,122
Other expenses 2,391 201 446,615 174,732
Total Expenses 71,205 8,380 11,224,562 12,059,388
Net Investment (Loss)/Gain (144,049) 11,089 (62,902,747) 379,554
Finance Costs: Dividends to holders of redeemable shares 14 (236,990) (4,141) (12,745,034) (8,791,726)
Net (Decrease)/Increase in Net Assets Attributable to Holders
of Redeemable Shares Resulting from Operations (381,039) 6,948 (75,647,781) (8,412,172)
*The Fund was launched in 6 October 2014.
Gains and losses arise solely from continuing operations. There were no gains or losses other than those reflected above.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES
For the half financial year ended 31 October 2015
64
Asia Pacific Fund Global Equity Fund UK Fund
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
Notes USD USD GBP GBP GBP GBP
Net (Decrease)/Increase in Net Assets Attributable to Holders of
Redeemable Shares Resulting from Operations (16,346,018) (212,658) (5,186,696) 1,105,078 (601,884) (1,178,918)
Capital Share Transactions of Redeemable Shares:
Proceeds from shares issued 2 10,093,671 6,481,793 2,099,807 3,179,559 821,633 1,966,901
Payments for shares redeemed 2 (3,432,929) (7,829,540) (6,501,453) (2,213,677) (1,373,587) (2,359,896)
Net Increase/(Decrease) from Capital Share Transactions of
Redeemable Shares 6,660,742 (1,347,747) (4,401,646) 965,882 (551,954) (392,995)
Net (Decrease)/Increase in Net Assets Attributable to Holders of
Redeemable Shares (9,685,276) (1,560,405) (9,588,342) 2,070,960 (1,153,838) (1,571,913)
Net Assets Attributable to Holders of Redeemable Shares:
At beginning of half financial year 100,893,382 92,059,163 62,057,365 51,220,907 25,729,587 27,547,956
Notional exchange gain on aggregation of Fund 1 – – – – – –
At end of half financial year 91,208,106 90,498,758 52,469,023 53,291,867 24,575,749 25,976,043
The Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares are continued on pages 65 to 67.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (continued)
For the half financial year ended 31 October 2015
65
European Fund
1 Sterling Bond Fund Equity Fund
for the
period
to 30 June
2015
for the half
financial year
ended 31 October
2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
Notes EUR EUR GBP GBP GBP GBP
Net (Decrease)/Increase in Net Assets Attributable to Holders of
Redeemable Shares Resulting from Operations (26,707,189) (6,940,437) (5,476,045) (2,447,589) (9,192,409) 2,983,135
Capital Share Transactions of Redeemable Shares:
Proceeds from shares issued 2 15,257,350 535,423,115 10,450,070 19,456,881 17,163,008 19,806,564
Payments for shares redeemed 2 (1,602,414,123) (115,917,390) (7,909,651) (7,086,392) (8,092,138) (16,567,879)
Net (Decrease)/Increase from Capital Share Transactions of
Redeemable Shares (1,587,156,773) 419,505,725 2,540,419 12,370,489 9,070,870 3,238,685
Net (Decrease)/Increase in Net Assets Attributable to Holders of
Redeemable Shares (1,613,863,962) 412,565,288 (2,935,626) 9,922,900 (121,539) 6,221,820
Net Assets Attributable to Holders of Redeemable Shares:
At beginning of the financial period 1,613,863,962 877,695,693 136,718,340 128,100,735 129,374,212 101,730,399
Notional exchange gain on aggregation of Fund 1 – – – – – –
At end of half financial year – 1,290,260,981 133,782,714 138,023,635 129,252,673 107,952,219
1The European Fund on the 30 June merged with Odey European Focus Fund thereafter it ceased operation.
The Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares are continued on pages 66 to 67.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (continued)
For the half financial year ended 31 October 2015
66
Global Bond
Fund
Global Equity Wealth Creation
Fund Alternatives Fund
for the half
financial year
ended 31
October 2015
for the half
financial year
ended 31
October 2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31
October 2014
for the half
financial year
ended 31 October
2015
for the half
financial year
ended 31 October
2014
Notes USD USD USD USD GBP GBP
Net (Decrease)/Increase in Net Assets Attributable to
Holders of Redeemable Shares Resulting from operations (4,760,788) (2,406,169) (588,573) (117,596) (232,732) 13,276
Capital Share Transactions of Redeemable Shares:
Proceeds from shares issued 2 6,329,961 11,702,751 753,242 3,047,763 4,038,966 8,335,185
Payments for shares redeemed 2 (10,793,845) (3,522,638) (269,899) (323,826) (2,038,310) (2,027,814)
Net (Decrease)/Increase from Capital Share
Transactions of Redeemable Shares (4,463,884) 8,180,113 483,343 2,723,937 2,000,656 6,307,371
Net (Decrease)/Increase in Net Assets Attributable to
Holders of Redeemable Shares (9,224,672) 5,773,944 (105,230) 2,606,341 1,767,924 6,320,647
Net Assets Attributable to Holders of Redeemable
Shares:
At beginning of the financial period 100,076,906 88,006,246 10,886,855 7,709,957 20,748,609 9,286,062
Notional exchange gain on aggregation of Fund 1 – – – – – –
At end of half financial year 90,852,234 93,780,190 10,781,625 10,316,298 22,516,533 15,606,709
The Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares are continued on page 67.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (continued)
For the half financial year ended 31 October 2015
67
Cautious Income Fund* Total Company
for the half
financial year
ended 31
October 2015
for the half
financial year
ended 31
October 2014
for the half
financial year
ended 31
October 2015
for the half
financial year
ended 31
October 2014
Note GBP GBP EUR EUR
Net (Decrease)/Increase in Net Assets Attributable to Holders of
Redeemable Shares Resulting from Operations (381,039) 6,948 (75,647,781) (8,412,172)
Capital Share Transactions of Redeemable Shares:
Proceeds from shares issued 2 1,637,491 5,872,531 84,668,610 625,331,264
Payments for shares redeemed 2 (74,540) (28,415) (1,654,638,304) (162,903,996)
Net (Decrease)/Increase from Capital Share Transactions of
Redeemable Shares 1,562,951 5,844,116 (1,569,969,694) 462,427,268
Net (Decrease)/Increase in Net Assets Attributable to Holders of
Redeemable Shares 1,181,912 5,851,064 (1,645,617,475) 454,015,096
Net Assets Attributable to Holders of Redeemable Shares:
At beginning of the financial period 10,158,702 – 2,333,477,069 1,400,019,331
Notional exchange gain on aggregation of Fund 1 – – 47,961,297 31,825,871
At end of half financial year 11,340,614 5,851,064 735,820,891 1,885,860,298
* This Fund was launched in 6 October 2014.
The accompanying notes form an integral part of these financial statements.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements
68
1. ACCOUNTING POLICIES
The significant accounting policies and estimation techniques adopted by the Company are as follows:
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with the Companies Act 2014 and Financial Reporting Standard
102 (“FRS 102”) issued by the Financial Reporting Council and promulgated for use in Ireland by Chartered Accountants
Ireland. Accounting standards generally accepted in Ireland in preparing financial statements giving a true and fair view are
those published by the Financial Reporting Council and promulgated by International Accounting Standards Board.
FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, replaced the extant Irish and UK
GAAP accounting standards (i.e. SSAPs and FRSs) for accounting periods commencing on or after 1 January 2015. The
Company has applied FRS 104, which is intended for use in the preparation of semi-annual reports by entities that apply FRS
102, when preparing their annual financial statements.
FRS 104 replaced the Statement of Half-Yearly Financial Reporting issued by the Accounting Standards Board for
accounting periods commencing on or after 1 January 2015. The Company has not applied the full disclosure requirements of
FRS 102 as according to FRS 104, issued by the Financial Reporting Council, disclosures demanded by Financial Reporting
Standards are generally not required for semi-annual reports.
The format and certain wordings of the financial statements have been adapted from those contained in the Companies Act
2014 and FRS 104 “Interim Financial Statements” so that, in the opinion of the Directors, they more appropriately reflect the
nature of the Company‟s business as an investment fund. As the Funds are highly liquid they have availed of the exemption
available to open-ended investment funds not to prepare a cash flow statement.
HISTORICAL COST CONVENTION
The financial statements are prepared under the historical cost convention as modified to include investments at fair value
through profit or loss.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
As required by FRS 102, financial assets at fair value through profit or loss as current assets are stated at the latest bid price
in the Statement of Financial Position. This is not in accordance with the Prospectus where the mid-market price at 12 noon
(Irish time) on each Dealing Day except for the last Dealing Day of each calendar quarter. Unrealised gains and losses arising
from this valuation are recorded in the Statement of Comprehensive Income and represent the difference between Fair Value
and the cost of the investments. A reconciliation between the net asset value as per the Financial Statements and the
published net asset value can be seen in Note 12 “Net Asset Comparison”.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
69
1. ACCOUNTING POLICIES (continued)
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (continued)
Each security, which is listed or traded on a regulated market, is valued on the regulated market, which is normally the
principal market for such security. For the ongoing valuations (i.e. valuations for the purpose of the calculation of the net
asset value of the relevant Fund), the valuation is carried out by reference to the closing mid-market quotation on that
regulated market. In the event that any investment is not listed or traded on any regulated market, such security shall be
valued at the probable realisation value determined with care and in good faith by a competent person (which may be the
Investment Manager) approved by the Citibank International Limited, Ireland Branch (the “Custodian”) as a competent
person for such purpose in consultation with the Investment Manager. Such probable realisation value will be determined: (i)
by using the original purchase price; (ii) where there have been subsequent trades with substantial volumes, by using the
latest trade price provided that the Administrator, in consultation with the Investment Manager, considers such trades to be at
arm‟s length; (iii) where the Investment Manager believes the investment has suffered a diminution in value, by using the
original purchase price that shall be discounted to reflect such a diminution; or (iv) if the Administrator in consultation with
the Investment Manager believes a mid quotation from brokers reliable, by using such mid quotation or, if unavailable, a bid
quotation. Alternatively, the Administrator in consultation with the Investment Manager may use such probable realisation
value estimated with care and in good faith as may be recommended by a competent professional (which may be the
Investment Manager) approved for that purpose by the Custodian in consultation with the Investment Manager. Due to the
nature of such unquoted securities and the difficulty in obtaining a valuation from other sources, such competent professional
may be related to the Investment Manager. Valuations of unquoted securities amounting to USD Nil in Waverton Asia
Pacific Fund are included at 31 October 2015 (2014: USD Nil).
Investments in a collective investment scheme are valued on the basis of the latest available net asset value relevant to the
collective investment scheme. Certain Funds may invest in one or more collective investment schemes. As a shareholder of
another collective investment scheme, a Fund would bear, along with other shareholders, its pro rata portion of the expenses
of other collective investment schemes, including management and /or other fees. These fees would be in addition to the
management fees and other expenses which a Fund bears directly in connection with its own operations.
Exchange-traded derivative instruments, including futures, are valued as at close of the regular trading session of the London
Stock Exchange on the Dealing Day at the settlement price for such instruments on the relevant exchange. If the settlement
price of an exchange-traded derivative instrument is not available, the value of such instrument shall be the probable
realisation value estimated with care and in good faith by a competent professional (which may be the Investment Manager)
appointed by the Directors approved for that purpose by the Custodian in consultation with the Investment Manager. No such
valuations were required at 31 October 2015 or 30 April 2015. Over-the-counter derivative instruments are valued as at 12.00
noon (Irish Time) of the regular trading session of the London Stock Exchange on the Dealing Day at the settlement price
provided by the counterparty to such transactions daily. Details of options and futures held as at 31 October 2015 are
included in the Portfolios of Investments.
Forward foreign exchange contracts are valued at the Valuation Point by reference to the prevailing market quotations,
namely the price at which a new forward contract of the same size and maturity could be undertaken, or, if unavailable, at the
settlement price as provided by the counterparty daily. The valuations of those securities which are valued at settlement price
are verified at least weekly by an independent person approved for that purpose by the Custodian, who may be the Investment
Manager.
The unrealised gain or loss on open forward foreign exchange contracts is calculated by reference to the difference between
the contracted rate and the rate to close out the contract. Realised gains or losses include net gains on contracts, which have
been settled or offset by other contracts. As at 31 October 2015, the Company held forward currency contracts for the Asia
Pacific Fund, Sterling Bond Fund, and the Global Bond Fund. As at 30 April 2015, the Company held forward currency
contracts for the Asia Pacific Fund, Global Equity Fund, Sterling Bond Fund, Equity Fund and the Global Bond Fund.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
70
1. ACCOUNTING POLICIES (continued)
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (continued)
For open futures contracts, changes in the fair value of the contract are recognised as unrealised gains or losses by “marking-
to-market” the value of the contract at the Statement of Financial Position date. When the contract is closed, the difference
between the proceeds from (or cost of) the closing transactions and the original transaction is recorded as a realised gain or
loss. Futures contracts are held at fair value through profit or loss. Gains and losses arising from changes in the fair value of
the futures contracts are included in the Statement of Comprehensive Income in the half financial year in which they arise. As
at 31 October 2015, the Company held futures contracts for the Sterling Bond Fund and Global Bond Fund As at 30 April
2015, the Company held futures contracts for the Sterling Bond Fund and Global Bond Fund
Options, held at fair value though profit or loss, are fair valued daily based upon the quotation provided by counterparty on
the principal exchange on which the option is traded. Realised and unrealised gains and losses arising from option contracts
are included in the Statement of Comprehensive Income in the half financial year in which they arise. As at 31 October 2015,
the Company held options for the Sterling Bond Fund. As at 30 April 2015, the Company held options for the Sterling Bond
Fund and Global Bond Fund.
Short-term investments including time deposits are valued at cost, which approximates their fair value. When calculating the
effective interest rate, the Company estimates cash flows considering all contractual terms of the financial instrument but
does not consider future credit losses.
MEASUREMENT
Financial instruments are measured initially at fair value (transaction price) plus, in the case of a financial asset or financial
liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the
financial asset or financial liability. Subsequent to initial recognition, all instruments Classified at fair value through profit or
loss are measured at fair value with changes in their fair value recognised in the Statement of Comprehensive Income.
Financial liabilities, other than those at fair value through profit or loss, are measured at amortised cost.
Financial liabilities arising from the redeemable shares issued by the Fund are carried at the redemption amount representing
the investors‟ right to a residual interest in the Fund‟s assets.
RECOGNITION AND DERECOGNITION
The Company recognises financial assets and financial liabilities when all significant rights and access to the benefits from
the assets and the exposure to the risks inherent in those benefits are transferred to the Company. A regular way purchase of
financial assets is recognised using trade date accounting. The Company derecognises financial assets and financial liabilities
when all such benefits and risks are transferred from the Company.
CASH AND OTHER LIQUID ASSETS
Cash and other liquid assets are valued at their face value with interest accrued (if any) as at the valuation point.
INVESTMENT TRANSACTIONS
Investment transactions are accounted for as of the date they are purchased or sold. During the half financial year ended 31
October 2015 and 30 April 2015 realised gains and losses on the sale of investments are calculated using the weighted
average cost method. Realised gains and losses on investment transactions are recorded in the Statement of Comprehensive
Income. Interest income is accrued daily on an effective yield basis.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
71
1. ACCOUNTING POLICIES (continued)
INVESTMENT INCOME
Dividends are credited to the Statement of Comprehensive Income on the dates on which the relevant securities are listed as
“ex-dividend”. Bank interest income is accounted for on an accrued interest basis. Bond interest income is accrued daily on
an effective yield basis. Income is shown gross of non-recoverable withholding tax, which is disclosed separately in the
Statement of Comprehensive Income. The Company may benefit from a reduction in the rate of withholding tax by virtue of
the double taxation agreements in operation between Ireland and other countries. Consequently, the Company may be able to
reclaim withholding tax suffered by it in particular countries. Withholding tax reclaims are accounted for on a cash receipts
basis in the Statement of Comprehensive Income.
DISTRIBUTION POLICY
Bi-annual distributions will be declared and distributed in respect of each Fund in each financial year from net income
(excluding capital gains) on 30 April and 31 October except for the Sterling Bond Fund and the Global Bond Fund. The
Company will declare dividends quarterly in respect of the Global Bond Fund and the Sterling Bond Fund on 31 January, 30
April, 31 July and 31 October in each financial year. It is proposed that dividends will not be declared in respect of the Class
A Euro Acc shares of Global Bond Fund. Instead, any net investment income and realised and unrealised capital gains net of
realised and unrealised capital losses attributable to each of these classes will be accumulated in net asset value per share of
the relevant class and will be invested in accordance with the investment objective and policies of the relevant Fund
Shareholders should note that, in the case of Funds for which a performance fee may be charged as follows: (1) any
performance fee will be charged to capital of the relevant Fund; and (2) for those Classes of Shares identified in the column
of the table in Schedule IV of the Prospectus headed “Fees and Expenses to Capital” as “Yes”, 100% of the management
fees, Administrator fees, Custodian fees, operational expenses and borrowing expenses, where applicable will be charged to
capital of the relevant Fund. The Company has received approval from the HM Revenue & Customs for reporting Fund status
for certain Classes of certain Funds for the half financial year ending 31 October 2015 and application is intended to be made
for subsequent half financial years. Details of distributions made are included in Note 14.
FOREIGN EXCHANGE TRANSLATION
Functional and presentation currency
Items included in the Company‟s financial statements are measured using the currency of the primary economic environment
in which each Fund operates (the “Functional Currency”). The Functional Currency is: Euro (“EUR”) for the European Fund;
Sterling (“GBP”) for the Global Equity Fund, the UK Fund, the Sterling Bond Fund, the Equity Fund, the Alternatives Fund,
the Cautious Income Fund and the Absolute Fund; and U.S. Dollar (“USD”) for the Asia Pacific Fund, the Global Bond Fund
and the Global Equity Wealth Creation Fund. The presentation currency for financial statement purposes of each Fund is their
functional Currency. The Company has adopted EUR as its Functional Currency for the Company as a whole.
Transactions and balances
Assets and liabilities denominated in foreign currencies are translated into the Functional Currency of each Fund at the
exchange rates ruling at the Statements of Financial Position date. Transactions in foreign currencies are translated into the
Functional Currency of each Fund at the exchange rates ruling at the dates of the transactions. Gains and losses on foreign
exchange transactions are recognised in the Statement of Comprehensive Income in determining the result for the half
financial year. The Company‟s results and financial position are translated from the Funds‟ Functional Currency to EUR as
follows: Assets and Liabilities, including Net Assets Attributable to Holders of Redeemable Shares are translated at the
closing rate at each Statement of Financial Position date. Income and expenses for each Statement of Comprehensive Income
are translated at the average exchange rate for the half financial year. Notional Exchange gains or losses due to the
presentation of these financial statements in EUR are included in the Statements of Changes in Net Assets Attributable to
Holders of Redeemable Shares.
TRANSACTION COSTS
Transaction costs are accounted for as of the date securities are purchased or sold and are included in the Statement of
Comprehensive Income as required by FRS 102.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
72
1. ACCOUNTING POLICIES (continued)
TRANSACTION COSTS (continued)
Transaction costs include fees and commissions paid to agents (including employees acting as selling agents), advisers,
brokers and dealers, levies by regulatory agencies and securities exchanges, and transfer taxes and duties. Transaction costs
do not include debt premiums or discounts, financing costs or internal administrative costs. For trades on bond the
commissions are wrapped up in the price so we are unable to split out the transaction costs.
2. SHARE CAPITAL
AUTHORISED
The Directors are authorised to issue up to 500 billion Shares of no par value.
SUBSCRIBER SHARES
There are currently two Subscriber Shares in issue to the value of EUR 2. The Subscriber Shares do not form part of the net
asset value of the Company and are thus disclosed in the Financial Statements by way of this note only.
Each of the Shares entitles the holder to attend and vote at meetings of the Company and of the Fund represented by those
Shares. No Class of Shares confers on the holder thereof any preferential or pre-emptive rights or any rights to participate in
the profits and dividends of any other Class of Shares or any voting rights in relation to matters relating solely to any other
Class of Shares.
Any resolution to alter the Class rights of the Shares requires the approval of three quarters of the holders of the Shares
represented or present and voting at a general meeting duly convened in accordance with the Articles of Association.
The Articles of Association of the Company empower the Directors to issue fractional Shares in the Company. Fractional
Shares may be issued and shall not carry any voting rights at general meetings of the Company or of any Fund or Class and
the net asset value of any fractional Share shall be the net asset value per Share adjusted in proportion to the fraction.
The Subscriber Shares entitle the Shareholders holding them to attend and vote at all meetings of the Company, but do not
entitle the holders to participate in the dividends or net assets of any Fund or of the Company.
CAPITAL SHARE TRANSACTIONS OF REDEEMABLE SHARES
The Company issues redeemable shares which can be put back to the Company at any time for cash equal to a proportionate
share of the net asset value per share of the relevant Fund. This redeemable share carried at the redemption amount that is
payable at the Statement of Financial Position date if the holder exercises the right to put the share back to the Company at
that date.
For the half financial year ended 31 October 2015
Class A US$ Class A Euro Class A Stg£ Class M Stg£
Asia Pacific Fund Shares Shares Shares Shares
At beginning of the half financial
year 841,558 616 2,273,695 179,487
Issued 95,870 - 199,334 80,292
Redeemed (46,249) (1) (72,885) (20,699)
At end of half financial year 891,179 615 2,400,144 239,080
Class A Stg£ Class A US$
Global Equity Fund Shares Shares
At beginning of the half financial
year 4,111,886 77,390
Issued 140,030 9,100
Redeemed (466,536) (2,400)
At end of half financial year 3,785,380 84,090
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
73
2. SHARE CAPITAL (continued)
CAPITAL SHARE TRANSACTIONS OF REDEEMABLE SHARES (continued)
Class A Stg£ Class A US$
UK Fund Shares Shares
At beginning of the half financial
year 1,901,747 11,193
Issued 61,685 20
Redeemed (94,623) (6,928)
At end of half financial year 1,868,809 4,285
Class A Euro Class A Stg£ Class B Euro
Class A Euro
Acc
European Fund Shares Shares Shares Shares
At beginning of the half financial
year 38,833,857 27,214,424 3,243,116 8,906,268
Issued 413,539 77,634 268,138 42,063
Redeemed (39,247,396) (27,292,058) (3,511,254) (8,948,331)
At end of half financial year - - - -
Class A Stg£ Class B Stg£ Class P Stg£
Sterling Bond Fund Shares Shares Shares
At beginning of the half financial
year 12,929,590 2,838 1,076,442
Issued 875,903 97 197,992
Redeemed (773,898) – (47,562)
At end of half financial year 13,031,595 2,935 1,226,872
Class A Stg£ Class B Stg£ Class P Stg£
Equity Fund Shares Shares Shares
At beginning of the half financial
year 4,456,227 1,433,370 3,182,662
Issued 335,200 333,190 631,547
Redeemed (351,234) (108,378) (119,573)
At end of half financial year 4,440,193 1,658,182 3,694,636
Class A Stg£ Class A US$ Class I Euro Class I US$
Global Bond Fund Shares Shares Shares Shares
At beginning of the half financial
year 115,000 8,251,264 - 2,405,367
Issued 27,900 395,370 104,599 125,015
Redeemed – (1,054,750) (1,900) (158,219)
At end of half financial year 142,900 7,591,884 102,699 2,372,163
Class A US$
Global Equity Wealth Creation
Fund
Institutional
Shares
At beginning of the half financial year 1,037,894
Issued 73,287
Redeemed (28,710)
At end of half financial year 1,082,471
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
74
2. SHARE CAPITAL (continued)
CAPITAL SHARE TRANSACTIONS OF REDEEMABLE SHARES (continued)
Class A Stg£ Class P Stg£
Alternatives Fund Shares Shares
At beginning of the half financial
year 48,120 1,947,097
Issued 23,200 365,368
Redeemed – (195,925)
At end of half financial year 71,320 2,116,540
Class B Stg£ Class P Stg£
Cautious Income Fund Shares Shares
At beginning of the half financial
year 632,193 330,744
Issued 123,545 36,763
Redeemed (4,122) (3,181)
At end of half financial year 751,616 364,326
For the half financial year ended 31 October 2014
Class A US$ Class A Euro Class A Stg£ Class M Stg£
Asia Pacific Fund Shares Shares Shares Shares
At beginning of the half financial
year 852,836 603 2,322,607
Issued 1,565 11 74,218 247,583
Redeemed (28,147) (5) (220,906) (2,554)
At end of half financial year 826,254 609 2,175,919 245,029
Class A Stg£ Class A US$
Global Equity Fund Shares Shares
At beginning of the half financial
year 3,710,120 78,300
Issued 234,515 -
Redeemed (165,429) -
At end of half financial year 3,779,206 78,300 N n Class A Stg£ Class B Stg£
UK Fund Shares Shares
At beginning of the half financial
year 2,133,165 11,089
Issued 159,962 35
Redeemed (185,687) (8)
At end of half financial year 2,107,440 11,116 N
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
75
.SHARE CAPITAL (continued)
CAPITAL SHARE TRANSACTIONS OF REDEEMABLE SHARES (continued)
Class A Euro Class A Stg£ Class B Euro Class A Euro
European Fund Shares Shares Shares Shares
At beginning of the half financial
year 23,329,859 20,765,714 1,853,817
Issued 20,342,930 7,674,336 1,971,457 199,837
Redeemed (4,512,640) (1,185,231) (1,081,582) -
At end of the half financial year 39,160,149 27,254,819 2,743,692 199,837
Class A Stg£ Class B Stg£ Class P Stg£
Sterling Bond Fund Shares Shares Shares
At beginning of the half financial
year 12,372,511 4,934 401,224
Issued 1,457,765 63 469,478
Redeemed (631,095) - (71,697)
At end of the half financial year 13,199,181 4,997 799,005
Class A Stg£ Class B Stg£ Class P Stg£
Equity Fund Shares Shares Shares
At beginning of the half financial
year 5,057,309 1,534,200 1,400,335
Issued 457,064 166,529 1,132,681
Redeemed (848,713) (248,795) (147,690)
At end of the half financial year 4,665,660 1,451,934 2,385,326
Class A Stg£ Class A US$ Class I US$
Global Bond Fund Shares Shares Shares
At beginning of the half financial
year 115,000 7,443,796 1,570,780
Issued - 815,755 397,305
Redeemed - (288,875) (76,933)
At end of the half financial year 115,000 7,970,676 1,891,152
Class A US$
Global Equity Wealth Creation
Fund
Institutional
Shares
At beginning of the half financial
year 773,484
Issued 292,900
Redeemed (32,200)
At end of the half financial year 1,034,184
Class A Stg£ Class P Stg£
Alternatives Fund Shares Shares
At beginning of the half financial
year 12,120 920,671
Issued 41,600 794,836
Redeemed - (203,057)
At end of the half financial year 53,720 1,512,450
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
76
2. SHARE CAPITAL (continued)
CAPITAL SHARE TRANSACTIONS OF REDEEMABLE SHARES (continued)
Class A Stg£ Class P Stg£
Cautious Income Fund Shares Shares
At beginning of the half financial
year - -
Issued 369,410 218,249
Redeemed (2,850) -
At end of the half financial year 366,560 218,249
3. SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS
INVESTMENT MANAGEMENT FEES
The Company has entered into an investment management agreement with Waverton Investment Management Limited, (the
“Investment Manager”), pursuant to which the Investment Manager manages the Company‟s investments on a discretionary
basis. The Investment Manager is a company incorporated under the laws of England and Wales and regulated by the
Financial Conduct Authority (“FCA”). The Investment Manager is entitled to receive an investment management fee from
the Company.
This fee is calculated and accrued on each Dealing Day and paid quarterly in arrears from the Net asset value of each Class
of the respective Funds at the following rates.
For the half financial year ended 31
October 2015 Class A Class B
Class B
Institutional
Class I Class P
Asia Pacific Fund 1.00% 1.50% - - -
Global Equity Fund 1.00% 1.50% - - -
UK Fund 1.00% 1.50% - - -
European Fund 1.00% 1.50% - - -
Sterling Bond Fund 0.75% 1.25% - - 0.40%
Equity Fund 1.00% 0.75% - - 0.40%
Global Bond Fund 0.50% 1.00% - 0.75% -
Global Equity Wealth Creation Fund - - 0.40% - -
Alternatives Fund 1.00% 0.75% - - 0.40%
Cautious Income Fund - 0.75% - - 0.40%
During the half financial year ended
31 October 2014 Class A Class B
Class B
Institutional Class I Class P
Asia Pacific Fund 1.00% 1.50% - - -
Global Equity Fund 1.00% 1.50% - - -
UK Fund 1.00% 1.50% - - -
European Fund 1.00% 1.50% - - -
Sterling Bond Fund 0.75% 1.25% - - 0.40%
Equity Fund 1.00% 0.75% - - 0.40%
Global Bond Fund 0.50% 1.00% - 0.75% -
Global Equity Wealth Creation Fund - - 0.40% - -
Alternatives Fund 1.00% 0.75% - - 0.40%
Cautious Income Fund - 0.75% - - 0.40%
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
77
3. SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS (continued)
INVESTMENT MANAGEMENT FEES (continued)
In addition, the Investment Manager is entitled to be reimbursed its reasonable vouched out-of-pocket expenses. Each Fund
bears pro rata its share of such out-of-pocket expenses.
The Investment Manager has undertaken, on a voluntary basis, to ensure that the fees payable by the Funds other than
performance fees will not exceed the total expense limit. The effect of this arrangement is that the total fees and expenses
payable by each Share Class shall not exceed the percentage limits of the net asset value of the Funds set out below:
For the half financial year ended 31 October
2015 Class A Class B Class I Class P
Asia Pacific Fund 2.00% 2.50% - -
Global Equity Fund 2.00% 2.50% - -
UK Fund 2.00% 2.50% - -
European Fund 2.00% 2.50% - -
Sterling Bond Fund 1.75% 2.25% 1.40% -
Equity Fund 2.00% 1.75% 1.40% -
Global Bond Fund 1.50% 2.00% - 1.75%
Global Equity Wealth Creation Fund - 1.40% - -
Alternatives Fund 2.00% 1.75% 1.40% -
Cautious Income Fund - 1.75% - 1.40%
During the half financial year ended 31 October
2014 Class A Class B Class I Class P
Asia Pacific Fund 2.00% 2.50% - -
Global Equity Fund 2.00% 2.50% - -
UK Fund 2.00% 2.50% - -
European Fund 2.00% 2.50% - -
Sterling Bond Fund 1.75% 2.25% 1.40% -
Equity Fund 2.00% 1.75% 1.40% -
Global Bond Fund 1.50% 2.00% - 1.75%
Global Equity Wealth Creation Fund - 1.40% - -
Alternatives Fund 2.00% 1.75% 1.40% -
Cautious Income Fund 2.00% 1.75% 1.40% -
Details of fees waived by the Investment Manager during the half financial years ended 31 October 2015 and 31 October
2014 are included in the Statement of Comprehensive Income.
PERFORMANCE FEE
The Investment Manager may receive a performance fee based on its investment management performance during a
performance period (“Performance period”). A Performance period shall: (i) in the case of the first Performance period,
commence upon the close of the Initial Offer Period and end on the next succeeding Quarter Day (as hereinafter defined);
and (ii) thereafter shall commence on the day immediately following such Quarter Day and shall end on the next succeeding
Quarter Day. A Quarter Day shall be 31 March, 30 June, 30 September or 31 December in any financial year.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
78
3. SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS (continued)
PERFORMANCE FEES (continued)
In the case of the Class A Stg£, Class A US$ and Class B US$ Shares in Waverton Global Bond Fund, a performance fee is
payable to the Investment Manager when: (i) the increase in the net asset value per Share of the relevant Class of a Fund (as
denominated in the Functional Currency of the Fund to which the Class relates) over a Performance Period is greater than the
increase in the Benchmark for that Fund over the same Performance Period; or (ii) when the decrease in the net asset value
per Share of the relevant Class of a Fund (as denominated in the Functional Currency of the Fund to which the Class relates)
over a Performance Period is less than the decrease in the Benchmark for that Fund over the same Performance Period. The
performance fee shall be 10% in respect of Waverton Global Bond Fund of the amount by which the net asset value per
Share before the deduction of performance fees exceeds the Benchmark as aforesaid as at the end of a Performance Period,
multiplied by the number of Shares in issue in that Class at the end of the period.
The performance fee is calculated by measuring the increase or decrease of the net asset value per Share as denominated in
the Functional Currency of the relevant Fund against the performance of the relevant Benchmark. The Benchmark shall
always be denominated in the Functional Currency of the relevant Fund. As the Sterling denominated Class A of the
Waverton Global Bond Fund is intended to be fully hedged, the performance fee for this Class will be calculated using the
net asset value per Share in Sterling.
The performance fee shall be calculated and accrued on each Dealing Day and paid quarterly in arrears at the end of a
Performance Period. When calculating the performance fee payable, the net asset value is adjusted, as appropriate, for
subscriptions, redemptions, dividends paid and any accruals of performance fee and by the amount, if any, by which the net
asset value underperformed the Benchmark in any preceding Performance Period. Any dividends which are to be added back
in order to determine the performance fee will be added back as a per Share amount based on the number of Shares in issue
when the dividends were paid.
Where a performance fee is payable it is based on the net asset value of a Class as at the end of each period. As a result a
performance fee may be paid in respect of unrealised gains, which may subsequently never be realised. Furthermore, because
the performance fee is payable on the performance of a Fund relative to a Benchmark (outperformance), a performance fee
may be payable in circumstances where the net asset value of a Fund has declined. On the other hand a prior relative under
performance must be recouped before a performance fee shall again be payable.
The performance fee calculation is verified by the Custodian and by the auditors of the Company as part of the annual audit
of the Company. Performance fee worked examples are available from the Administrator and the Investment Manager upon
request.
The performance fee applicable to each Fund is set out in that Fund‟s prospectus. Currently, the Waverton Global Bond Fund
is the only Fund that is entitled to a performance fee. As at the 31 October 2015 no performance fee was accrued during the
period.
ADMINISTRATOR FEES
The Company pays the Administrator an administration and fund accounting service fee of up to 0.10 per cent. per annum of
the net asset value of each of the Funds during the half financial year, subject to a minimum annual fee per Fund of EUR
28,750 per annum with an additional Share Class fee of EUR 1,300 per annum. The Administrator receives a transfer agency
fee of up to EUR 20,000 for each Fund per annum with a Share Class fee of EUR 8,850 per Fund (applicable only to Funds
that have in excess of 2 share Classes).
The fees are calculated and accrued on each Dealing Day and payable monthly in arrears. The Administrator is also entitled
to be reimbursed its reasonable vouched out-of-pocket expenses, transaction and account fees. Administration and Fund
accounting services fees payable to the Administrator as at 31 October 2015 and 30 April 2015 and expenses incurred during
the half financial years ended 31 October 2015 and 31 October 2014 are shown on the Statement of Financial Position and
Statement of Comprehensive Income, respectively.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
79
3. SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS (continued)
CUSTODIAN FEES
Each Fund pays the current Custodian a custody fee which will not exceed in aggregate 0.75% of the net asset value of the
Fund. The Custodian is also entitled to a trustee fee of up to 0.02% per annum of the net asset value of each of the Funds. The
Custodian fee is calculated and accrued on each Dealing Day and payable monthly in arrears.
In addition, the Custodian is entitled to receive transaction charges and to be reimbursed its reasonable vouched out-of-pocket
expenses, and the fees and expenses of any sub-custodian appointed by the Custodian (which shall be at normal commercial
rates). Custodian fees payable to the Custodian as at 31 October 2015 and 30 April 2015 and expenses incurred during the
half financial years ended 31 October 2015 and 31 October 2014 are shown on the Statement of Financial Position and
Statement of Comprehensive Income, respectively.
4. DIRECTOR‟S REMUNERATION
The total Director Remuneration in any one financial year shall not exceed EUR 135,000. In addition all of the Directors are
entitled to be reimbursed by the Company for reasonable out of pocket expenses. Fees payable to the Directors as at 31
October 2015 and 30 April 2015 and fees charged during the half financial years ended 31 October 2015 and 31 October
2014 are shown on the Statement of Financial Position and Statement of Comprehensive Income, respectively.
5. AUDITORS‟ REMUNERATION
Fees and expenses paid to our statutory auditors, Grant Thornton, in respect of the half financial years are as follows:
31 October 2015
Statutory audit fee: EUR 40,406
31 October 2014
Statutory audit fee: EUR 25,236
6. TAXATION
The Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997 (as
amended). It is not chargeable to Irish tax on its income and gains.
Tax may arise on the happening of a chargeable event. A chargeable event includes any payments of distributions to
Shareholders, any encashment, repurchase, redemption, cancellation or transfer of Shares and any deemed disposal of Shares
arising as a result of holding Shares for a period of eight years or more. No tax will arise on the Company in respect of
chargeable events in respect of:
(i) a shareholder who is not Irish resident and not ordinarily resident in Ireland at the time of the chargeable event, provided
the necessary signed statutory declarations are held by the Company; and
(ii) certain exempted Irish resident investors who have provided the Company with the necessary signed statutory
declarations.
Dividend income, interest and capital gains received by the Company may be subject to non-recoverable withholding tax in
the countries of origin.
7. SOFT COMMISSION ARRANGEMENTS
The Investment Manager may effect transactions with or through the agency of another person with whom the Investment
Manager or an entity affiliated to the Investment Manager has arrangements under which that person will, from time to time,
provide to or procure for the Investment Manager and/or an affiliated party goods, services or other benefits such as research
and advisory services, specialised computer hardware or software.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
80
7. SOFT COMMISSION ARRANGEMENTS (continued)
No direct payment may be made for such goods or services but the Investment Manager may undertake to place business with
that person provided that person has agreed to provide best execution with respect to such business and the services provided
must be of a type which assists in the provision of investment services to the Company.
During the half financial years ended 31 October 2015 and 31 October 2014 there were no soft commission transactions.
8. CASH
All cash balances (excluding time deposits) are held with Citibank N.A. in the name of Citibank International Limited,
Ireland Branch, as custodian. Collateral has been provided for the open futures contracts and is held with Merrill Lynch.
9. EXCHANGE RATES
The Functional Currency of the European Fund is EUR. The Functional Currency of the Global Equity Fund, the UK Fund,
the Sterling Bond Fund, the Equity Fund, the Alternatives Fund, and the Cautious Income Fund is GBP. The Functional
Currency of the Asia Pacific Fund, the Global Bond Fund and the Global Equity Wealth Creation Fund is the USD.
The following exchange rates at 31 October 2015 have been used to translate assets and liabilities in currencies other than
EUR, GBP and USD:
AUD BRL CAD CHF CNY DKK EUR GBP HKD IDR INR
USD: 1.4071 3.8607 1.4071 0.9884 - 6.7680 0.9078 0.6516 7.7498 - 65.3381
EUR: - - - 1.0409 - 7.4583 1.0000 1.4114 - - -
GBP: - 5.9254 2.0192 1.5170 9.6961 - 1.3932 1.0000 - - -
JPY KRW MXN NOK NZD PHP SEK SGD THB TWD USD
USD: 1.2047 11.3990 16.5752 - 1.4808 46.8099 8.5150 1.4002 35.5606 32.4602 1.0000
EUR: - - - - - - 9.2419 - - - -
GBP: 184.89 - 25.4397 - - - 13.0688 - - - 1.5348
The following exchange rates at 30 April 2015 have been used to translate assets and liabilities in currencies other than EUR,
GBP and USD:
AUD BRL CAD CHF CNY DKK EUR GBP HKD IDR INR
USD: 1.2633 2.9597 1.2040 0.9357 - 6.6668 0.8935 0.6483 7.7502 12,960.08 63.5082
EUR: - - - 1.0472 - 7.4615 1.0000 1.3782 - - -
GBP: - 4.5653 1.8572 1.4433 9.5678 - 1.3782 1.0000 - - 97.9614
JPY KRW MXN NOK NZD PHP SEK SGD THB TWD USD
USD: 1.1895 10.7180 15.2788 - 1.3130 44.5196 8.2754 1.3203 32.9554 30.6251 1.0000
EUR: - - - 0.1184 - - 9.2618 - - - -
GBP: 183.48 - 23.5335 - - - 12.7650 - - 47.2392 1.5425
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
81
9. EXCHANGE RATES (continued)
A Fund may employ financial derivative instruments for protection against exchange risks (including foreign exchange
transactions which alter the currency characteristics of transferable securities held by the relevant Fund) and to alter the
currency exposure characteristics of transferable securities in accordance with the conditions and limits set down by the
Central Bank of Ireland. Forward currency contracts may, at the Company‟s sole discretion, be used to hedge some or all of
the exchange risk/currency exposure arising as a result of the fluctuation between the currency in which the net asset value
per Share is computed, and the currencies in which a Fund‟s investments are denominated.
In addition, each Fund may also purchase foreign currency forwards or other contracts in order to switch the underlying
currency exposure of assets within the Fund‟s portfolio into alternative currencies, whereby the characteristics of the assets
are tailored to seek to provide the desired balance between risk and return in keeping with the strategy pursued by the
relevant Fund. Accordingly, the Fund may take material positions in currencies other than currencies of denomination of the
underlying assets of the Fund.
Details of open forward currency contracts as at 31 October 2015 are shown in the Portfolios of Investments.
Notional Exchange gains or losses due to the presentation of these financial statements in EUR are included in the Statements
of Changes in Net Assets Attributable to Holders of Redeemable Shares.
10. FINANCIAL DERIVATIVE INSTRUMENTS AND EFFICIENT PORTFOLIO MANAGEMENT
Subject to the conditions and within the limits from time to time laid down by the Central Bank, and except as otherwise
stated in the investment objective and policies of a Fund, the Investment Manager may employ, for certain Funds, investment
techniques and instruments such as futures, options, forward foreign currency contracts and other derivatives for investment
and/or efficient portfolio management (“EPM”) purposes. Furthermore, new techniques and instruments may be developed
which may be suitable for use by a Fund in the future, and a Fund may employ such techniques and instruments subject to the
prior approval of, and any restrictions imposed by, the Central Bank of Ireland.
For UCITS which have invested in financial derivative instruments (“FDI”) and/or engaged in efficient portfolio management
techniques, new disclosures are required under UCITS Notice 8.4. The Investment Manager of the Funds has identified all
financial derivative instruments which are forward currency contracts and futures, for which the counterparty is Merrill
Lynch International for futures and BNY Mellon for forwards, and is detailed further in the accounting policies Note 1.
During the half financial year, futures and forward foreign currency transactions were entered into for the purpose of efficient
portfolio management in order to hedge currency and market exposure and/or for investment purposes. The notional amounts
are detailed in the Schedule of Investments. The realised and unrealised gains or losses arising from the use of futures and
forward foreign currency transactions are discussed in Note 1.
The relevant Funds may have entered into currency forwards and other foreign currency derivative transactions for the
purposes of limiting the foreign currency exposure arising out of the non-base currency denomination of the investments of
the Fund or the currency exposure arising between the Functional Currency and the currency of denomination of each Class
of shares. In addition, certain Funds may also have purchased foreign currency forwards or other contracts in order to switch
the underlying currency exposure of assets within the relevant Fund‟s portfolio into alternative currencies, whereby the
characteristics of the assets are tailored to seek to provide the desired balance between risk and return in keeping with the
strategy pursued by the relevant Fund.
The relevant Funds may have entered into futures contracts to take long or short positions in, or to increase or reduce the
relevant Fund‟s exposure to, an underlying security, currency, market or index. For example, purchased futures may serve as
a long hedge of the investments of the relevant Funds and sold futures may have served as limited short hedge equities of the
investments of the relevant Funds. Futures may also be used, for example, to equities cash balances, both pending investment
of a cash flow and with respect to fixed cash targets.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
82
10. FINANCIAL DERIVATIVE INSTRUMENTS AND EFFICIENT PORTFOLIO MANAGEMENT (continued)
The relevant Funds may have purchased and sold put and call options. Call options may be purchased by certain Funds: (i) to
provide exposure to increases in the market (e.g., with respect to temporary cash positions); and (ii) to hedge against an
increase in the price of securities or other investments that a Fund intends to purchase. Put options may have been purchased
by the relevant Funds to (i) hedge against a decrease in the market generally; and (ii) hedge against the price of securities or
other investments held by certain Funds. The purpose behind a Fund writing covered call options is typically to seek
enhanced returns and when in the opinion of the Investment Manager the exercise price together with the option premium
received (unless the written calls are repurchased) would represent an acceptable sale price for some or all of the holding. Put
options, covered by cash, may be written when in the opinion of the Investment Manager the exercise price less the option
premium received (unless the written puts are repurchased) would represent an acceptable purchase price for a holding.
The Funds did not engage in the efficient portfolio management techniques of repurchase, reverse repurchase and stock
lending arrangements.
Details of all open transactions at the half financial year end are disclosed in the Portfolio Investments.
11. FINANCIAL INSTRUMENTS DISCLOSURE
In accordance with FRS 102 (“Financial Instruments: Disclosure”), this note details the way in which the Company identifies
and manages risks associated with the use of financial instruments.
The Company‟s activities involve identification, analysis, evaluation and acceptance of risk or a combination of risks. The
most significant types of risk to the Funds are market risk, currency risk, credit risk and liquidity risk. The Company‟s risk
management policies are designed to identify and analyse these risks, set risk limits and controls and to monitor these
continuously by means of a reliable and up to date risk monitoring system.
Based on the nature and magnitude of the risks that are being entered into, rules are established for the type and frequency of
ongoing risk monitoring. Monitoring of the ex-ante risk of a Fund is conducted in accordance to the Fund‟s risk assessment
which details the Fund‟s strategy and objectives.
Market Risk
FRS 102 identifies that this risk comprises of three types of risk; market price risk, currency risk and interest rate risk. The
risk monitoring system and stress testing are used to monitor these risks.
The Investment Manager is responsible on a day-to-day basis for measuring and monitoring market risk arising from all
sources, including derivatives, counterparties, and general market movements. This control is documented in a daily VaR and
commitment report which is distributed to the Fund manager and the compliance team of the Investment Manager. The
Investment Manager is responsible for managing that risk.
Market Price Risk
This is the potential for change in the market value of instruments due to adverse movements in equity, bond, commodity,
currency and other market prices, indices or rates or changes in the anticipated or calculated volatility of these movements.
Also pricing/valuation risk has been identified as the risk that the valuation/price of a specific transaction may not be
accurate. The majority of the Funds‟ financial assets at fair value through profit and loss consist of listed investments.
Each portfolio manager of a Fund is responsible for the investment decisions relating to his Fund and uses appropriate
investment experience, research and the daily VaR report to assist in the decision making process. The composition of each
Fund is reviewed by the Board of Directors on a quarterly basis.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
83
11. FINANCIAL INSTRUMENTS DISCLOSURE (continued)
Market Price Risk (continued)
By way of a weekly clinic, the Head of Funds at the Investment Manager, plus two Fund managers review the underlying investments of a specific Fund. Each Fund is reviewed by this weekly clinic at least once every five weeks. The Risk and Compliance Committee of the Investment Manager, which comprises a senior member of each department of the Investment Manager reviews each Fund and its risk using the VaR analysis at monthly meetings.
The Funds apply a VaR methodology to assess the market risk positions held and to estimate the potential economic loss based upon a number of parameters and assumptions for various changes in market conditions. VaR is a method used in measuring financial risk by estimating the potential negative change in a Fund not to be exceeded given a certain confidence level and over a specified time horizon.
The Funds uses a Monte Carlo simulation to calculate VaR and uses a “Full Valuation Methodology” to theoretically value every security that forms part of a Fund. Each security is broken down and tested against three broad risk factors and a variance-covariance matrix is constructed to carry out the simulations. These risk factors are Interest Rates, Market Indices and Exchange Rates. A figure is calculated based on both a one day and two week movement and VaR is calculated as 1 day and then scaled to a 1 month Var. The two week movement is used to assess potential losses in periods of sustained downside volatility.
Objectives and limitations of the VaR Methodology
The Funds use simulation models to assess possible changes in the market value of each Fund based on historical data. The default time horizon for the historical simulation model is 500 days (2 years), although this can be amended to 1 year if deemed appropriate. The VaR models are designed to measure market risk in a normal market environment. The models assume that any changes occurring in the risk factors affecting the normal market environment will follow a lognormal distribution. The distribution is calculated by using exponentially weighted historical data. The use of VaR has limitations because it is based on historical correlations and volatilities in market prices and assumes that future price movements will follow a statistical distribution.
Due to the fact that VaR relies significantly on historical data to provide information and may not clearly predict the future changes and modifications of the risk factors, the probability of large market moves may be underestimated if changes in risk factors fail to align with the normal distribution assumption. VaR may also be under or overestimated due to assumptions placed on risk factors and the relationship between such factors for specific instruments. Even though positions may change throughout the day, the VaR only represents the risk of a Fund at the close of each business day and it does not account for any losses that may occur beyond the 99% confidence level.
In practice, the actual trading results will differ from the VaR calculation and, in particular the calculation does not provide a meaningful indication of profits and losses in stressed market conditions. Stress tests are carried out on a number of predefined scenarios that form part of a separate calculation. To determine the reliability of the VaR model, actual outcomes are monitored regularly to test validity of the assumptions and the parameters used in the VaR calculation.
The table below sets out the Funds' sensitivity to extreme market conditions and tracks the movement were such market conditions to be encountered.
As at 31 October 2015
Fund
Confidence
level Currency
1 Day
VaR% Min Average Max
Average level
of leverage
Asia Pacific Fund 99% USD 1.97% 1.56% 1.83% 2.02% -*
Global Equity Fund 99% GBP 2.01% 1.86% 2.00% 2.16% -*
UK Fund 99% GBP 2.26% 1.79% 1.99% 2.26% -*
European Fund 99% EUR - - - - -*
Sterling Bond 99% GBP 0.69% 0.64% 0.75% 0.98% 1.96
Equity Fund 99% GBP 1.61% 1.12% 1.35% 1.61% -*
Global Bond Fund 99% USD 0.79% 0.45% 0.60% 0.79% 2.29
Global Equity Wealth
Creation Fund 99% USD 1.97% 1.65% 1.82% 1.97% -*
Alternatives Fund 99% GBP 0.70% 0.54% 0.64% 0.70% -*
Cautious Income Fund 99% GBP 0.95% 0.92% 0.96% 1.08% -*
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
84
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Objectives and limitations of the VaR Methodology (continued)
As at 30 April 2015
Fund
Confidence
level Currency
1 Day
VaR% Min Average Max
Average level
of leverage
Asia Pacific Fund 99% USD 1.72% 1.49% 1.84% 2.02% - *
Global Equity Fund 99% GBP 1.82% 1.61% 1.81% 2.05% - *
UK Fund 99% GBP 1.85% 1.78% 1.91% 2.11% - *
European Fund 99% EUR 2.10% 2.10% 2.25% 2.85% - *
Sterling Bond 99% GBP 0.63% 0.29% 0.57% 0.70% 1.85
Equity Fund 99% GBP 1.40% 1.11% 1.28% 1.40% - *
Global Bond Fund 99% USD 0.52% 0.52% 1.67% 2.05% 2.62
Global Equity Wealth
Creation Fund 99% USD 1.62% 1.62% 1.67% 1.80% - *
Alternatives Fund 99% GBP 0.54% 0.37% 0.46% 0.54% - *
Cautious Income Fund 99% GBP 0.95% 0.78% 0.92% 1.04% - *
Average level of leverage is calculated as the sum of the notionals of the derivatives used.
* No leverage was used in these Funds during the half financial year.
VaR Assumptions
The VaR that the Funds measure is an estimate, using a confidence level of 99%, of the potential loss that is not expected to
be exceeded if the current market risk positions were to be held unchanged for one day and two weeks. The use of a 99%
confidence level means that, within a one day horizon, losses exceeding the VaR figure should occur on average, not more
than once every hundred days.
Other Price Risk
Other price risk is managed by monitoring the schedule of investments and the Investment Manager‟s legal and compliance
team monitoring program which incorporates a review of the investment restrictions.
Currency Risk
Currency risk is defined by FRS 102 as the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. Currency risk arises on financial instruments that are denominated in a
currency other than the Functional Currency in which they are measured. The Funds have exposures to currencies other than
their Functional Currency and their main investment area. This risk is considered to be normal market exposure and
consistent with the benchmark which is set for each Fund.
The Investment Manager has the ability within their investment powers to hedge any significant exposure to one particular
currency that may result from the bottom-up stock selection process. This was exercised on the Asia Pacific Fund, Sterling
Bond Fund, Equity Fund and the Global Bond Fund during the half financial year ended 31 October 2015.
The Global Bond Fund also utilises share Class hedging to reduce the exposure of the GBP share Class to fluctuations in the
Functional Currency of the Fund which is USD. Forward currency contracts held as at 31 October 2015 are included in the
Portfolios of Investments.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
85
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Currency Risk (continued)
The ongoing risk relating to FX rate fluctuations is reviewed by the Investment Manager‟s Legal and Compliance
Committee, in line with the underlying investments.
The following table sets out the total exposure to foreign currency risk for each Fund, possible currency movement and the
impact on the Net Assets Attributable to Holders of Redeemable Shares of each Fund of these possible currency movements.
This exposure can result in an equal increase or decrease in Net Assets.
As at 31 October 2015
Asia Pacific Fund
Currency
Assets/(Liabilities)
in USD
Hedging in
USD
Total Exposure
in USD
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund USD
HKD 38,589,389 - 38,589,389 42.31% 5% 1,929,469
INR (962) - (962) 0.00% 5% (48)
KRW 4,273,027 - 4,273,027 4.68% 5% 213,651
PHP 3,273,332 - 3,273,332 3.59% 5% 163,667
SGD 13,317,603 (5,198) 13,312,405 14.60% 5% 665,620
THB 6,778,805 - 6,778,805 7.43% 5% 338,940
TWD - - - 0.00% 5% -
Total 66,231,194 (5,198) 66,225,996 72.61% 3,311,299
Global Equity Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
CAD 2,195,748 - 2,195,748 4.18% 5% 109,787
CHF 2,105,155 - 2,105,155 4.01% 5% 105,258
EUR 3,620,024 - 3,620,024 6.90% 5% 181,001
JPY 6,076,721 - 6,076,721 11.58% 5% 303,836
SEK 2,540,059 - 2,540,059 4.84% 5% 127,003
USD 28,809,810 - 28,809,810 54.91% 5% 1,440,491
Total 45,347,517 - 45,347,517 86.42% 2,267,376
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
86
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Currency Risk (continued)
As at 31 October 2015 (continued)
UK Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
EUR 6,174 - 6,174 0.03% 5% 309
USD 6,516 - 6,516 0.03% 5% 326
Total 12,690 - 12,690 0.06% 635
European Fund
As of 31 October 2015, there is no exposure in foreign currency in European Fund.
Sterling Bond Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
BRL 1,032,003 - 1,032,003 0.77% 5% 51,600
CNY - - - 0.00% 5% -
EUR 3,221,082 (3,307,043) (85,961) (0.06%) 5% (4,298)
MXN 4,284,350 - 4,284,350 3.20% 5% 214,218
USD 43,747,564 (38,451,392) 5,296,172 3.96% 5% 264,809
Total 52,284,999 (41,758,435) 10,526,564 7.87% 526,329
Equity Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
EUR 5,671,088 - 5,671,088 4.39% 5% 283,554
USD 54,448,551 - 54,448,551 42.13% 5% 2,722,428
Total 60,119,639 - 60,119,639 46.52% 3,005,982
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
87
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Currency Risk (continued)
As at 31 October 2015 (continued)
Global Bond Fund
Currency
Assets/(Liabilities)
in USD
Hedging in
USD
Total Exposure in
USD
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund USD
AUD - - - 0.00% 5% -
BRL 989,949 - 989,949 1.09% 5% 49,497
EUR 182 (4,862,228) (4,862,046) (5.35%) 5% (243,102)
GBP 40,879,620 (40,531,964) 347,656 0.38% 5% 17,383
MXN 5,660,162 - 5,660,162 6.23% 5% 283,008
SGD - - - 0.00% 5% -
Total 47,529,913 (45,394,192) 2,135,721 2.35% 106,786
Global Equity Wealth Creation Fund
Currency
Assets/(Liabilities)
in USD
Hedging in
USD
Total Exposure in
USD
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund USD
AUD 228,986 - 228,986 2.12% 5% 11,449
CAD 414,626 - 414,626 3.85% 5% 20,731
CHF 509,309 - 509,309 4.72% 5% 25,465
DKK 80,057 - 80,057 0.74% 5% 4,003
EUR 1,182,050 - 1,182,050 10.96% 5% 59,103
GBP 866,492 - 866,492 8.04% 5% 43,325
HKD 77,658 - 77,658 0.72% 5% 3,883
JPY 1,015,998 - 1,015,998 9.42% 5% 50,800
NZD 22,654 - 22,654 0.21% 5% 1,133
SEK 75,941 - 75,941 0.70% 5% 3,797
SGD 65,401 - 65,401 0.61% 5% 3,270
Total 4,539,172 - 4,539,172 42.09% 226,959
Alternatives Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
USD 987,610 - 987,610 4.39% 5% 49,380
Total 987,610 - 987,610 4.39% 49,380
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
88
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Currency Risk (continued)
As at 31 October 2015 (continued)
Cautious Income Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
EUR 287,182 - 287,182 2.53% 5% 14,359
USD 2,010,825 - 2,010,825 17.73% 5% 100,541
Total 2,298,007 - 2,298,007 20.26% 114,900
As at 30 April 2015
Asia Pacific Fund
Currency
Assets/(Liabilities)
in USD
Hedging in
USD
Total Exposure in
USD
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund USD
HKD 34,712,163 (253,544) 34,458,619 34.15% 5% 1,722,931
INR 3,888,604 - 3,888,604 3.85% 5% 194,430
KRW 18,506,580 - 18,506,580 18.34% 5% 925,329
PHP 3,189,211 - 3,189,211 3.16% 5% 159,461
SGD 11,670,176 (455,334) 11,214,842 11.12% 5% 560,742
THB 6,758,063 - 6,758,063 6.70% 5% 337,903
TWD 5,494,509 - 5,494,509 5.45% 5% 274,725
Total 84,219,306 (708,878) 83,510,428 82.77% 4,175,521
Global Equity Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
CAD 1,941,223 - 1,941,223 3.13% 5% 97,061
CHF 1,124,568 (849,840) 274,728 0.44% 5% 13,736
EUR 3,068,737 - 3,068,737 4.95% 5% 153,437
JPY 8,022,408 - 8,022,408 12.93% 5% 401,120
SEK 3,197,522 - 3,197,522 5.15% 5% 159,876
USD 38,329,116 - 38,329,116 61.76% 5% 1,916,456
Total 55,683,574 (849,840) 54,833,734 88.36% 2,741,686
UK Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
EUR 17,559 - 17,559 0.07% 5% 878
Total 17,559 - 17,559 0.07% 878
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
89
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Currency Risk (continued)
As at 30 April 2015 (continued)
European Fund
Currency
Assets/(Liabilities)
in EUR
Hedging in
EUR
Total Exposure in
EUR
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund EUR
CHF 156,711,308 - 156,711,308 9.71% 5% 7,835,565
DKK 81,613,596 - 81,613,596 5.06% 5% 4,080,680
GBP 267,828,397 - 267,828,397 16.60% 5% 13,391,420
NOK 2,189 - 2,189 0.00% 5% 109
SEK 95,618,580 - 95,618,580 5.92% 5% 4,780,929
Total 601,774,070 - 601,774,070 37.29% 30,088,703
Sterling Bond Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
BRL 1,541,968 - 1,541,968 1.13% 5% 77,098
CNY - - - 0.00% 5% -
EUR 4,042,786 (4,069,131) (26,345) (0.02%) 5% (1,317)
INR - 1,408,423 1,408,423 1.03% 5% 70,421
MXN 4,630,285 - 4,630,285 3.39% 5% 231,514
SEK - 2,692,241 2,692,241 1.97% 5% 134,612
TWD - 979,089 979,089 0.72% 5% 48,954
USD 41,034,328 (28,499,862) 12,534,466 9.17% 5% 626,723
Total 51,249,367 (27,489,240) 23,760,127 17.39% 1,188,005
Equity Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
EUR 6,404,563 - 6,404,563 4.95% 5% 320,228
USD 49,032,496 - 49,032,496 37.90% 5% 2,451,625
Total 55,437,059 - 55,437,059 42.85% 2,771,853
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
90
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Currency Risk (continued)
As at 30 April 2015 (continued)
Global Bond Fund
Currency
Assets/(Liabilities)
in USD
Hedging in
USD
Total Exposure in
USD
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund USD
AUD - - - 0.00% 5% -
BRL 1,486,553 - 1,486,553 1.49% 5% 74,328
EUR 3,732,457 (4,144,809) (412,352) (0.41%) 5% (20,618)
GBP 42,040,411 (44,359,195) (2,318,784) (2.32%) 5% (115,939)
IDR - 252,854 252,854 0.25% 5% 12,643
INR - 4,749,191 4,749,191 4.75% 5% 237,460
MXN 7,864,240 - 7,864,240 7.86% 5% 393,212
SEK - 3,159,532 3,159,532 3.16% 5% 157,977
Total 55,123,661 (40,342,427) 14,781,234 14.78% 739,063
Global Equity Wealth Creation Fund
Currency
Assets/(Liabilities)
in USD
Hedging in
USD
Total Exposure in
USD
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund USD
AUD 241,363 - 241,363 2.22% 5% 12,068
CAD 488,015 - 488,015 4.48% 5% 24,401
CHF 597,195 - 597,195 5.49% 5% 29,860
DKK 83,970 - 83,970 0.77% 5% 4,199
EUR 1,189,561 - 1,189,561 10.93% 5% 59,478
GBP 803,507 - 803,507 7.38% 5% 40,175
HKD 95,569 - 95,569 0.88% 5% 4,778
JPY 1,033,492 - 1,033,492 9.49% 5% 51,675
NZD 23,190 - 23,190 0.21% 5% 1,160
SEK 128,365 - 128,365 1.18% 5% 6,418
SGD 82,106 - 82,106 0.75% 5% 4,105
Total 4,766,333 - 4,766,333 43.78% 238,317
Alternatives Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
USD 979,710 - 979,710 4.72% 5% 48,986
Total 979,710 - 979,710 4.72% 48,986
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
91
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Currency Risk (continued)
As at 30 April 2015 (continued)
Cautious Income Fund
Currency
Assets/(Liabilities)
in GBP
Hedging in
GBP
Total Exposure in
GBP
Currency
Exposure as a
% Net Assets
Reasonable %
movement in
Currency
Impact on Net
Assets of the
Fund GBP
EUR 358,666 - 358,666 3.53% 5% 17,933
USD 841,118 - 841,118 8.28% 5% 42,056
Total 1,199,784 - 1,199,784 11.81% 59.989
Limitations of sensitivity analysis on foreign currency risk
The above analysis is included for the purposes of FRS 102 only and is not used by management in managing risk. This
currency risk sensitivity analysis is based on an estimate of the impact on the Net Assets Attributable to Holders of
Redeemable Shares of each Fund, assuming a hypothetical 5% movement in exchange rates. Actual trading results could
differ from the above sensitivity analysis, and the difference could be material.
Interest Rate Risk
This risk is defined as the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The value of investments in interest bearing securities may be subject to price volatility due to changes in interest rates. An increase in interest rates will generally reduce the value of debt securities that are issued and outstanding, while a decline in interest rates will generally increase the value of debt securities that are issued and outstanding.
The magnitude of these price fluctuations will be greater when the maturity of the outstanding securities is longer. Changes in the value of securities held by a Fund due to interest rates change may cause the net asset value per Share of the Fund to go up or down because of the effect of changing interest rates on the value of the Fund‟s portfolio of debt securities. The investment manager monitors the exposure within the Funds on an ongoing basis whilst observing the investments objectives of the Funds.
The majority of the financial assets of the Company are equity shares and other investments which neither pay interest nor have a maturity date. For the two bond Funds, the Sterling Bond Fund and the Global Bond Fund, the table below shows the Funds‟ sensitivity to interest rate risk as at 31 October 2015.
Fund 31 October 2015 Duration 30 April 2015 Duration
Sterling Bond Fund 0.5 years 1.5 years
Global Bond Fund 3.1 years 0.5 years
Duration is a measure of the sensitivity of the price of a fixed-income investment to a change in interest rates and is expressed in financial years. Funds with higher duration have a greater interest rate risk. Generally, the value of debt securities will tend to decrease in value when interest rates rise and vice versa. Shorter term securities are less sensitive to interest rate changes than longer term securities, but they also usually offer lower yield.
The interest rate profile of the Funds‟ financial assets as at 31 October 2015 is as follows:
As at 31 October 2015
Floating rate
financial assets
Fixed rate financial
assets
Financial assets on
which no interest is
paid Total
Sterling Bond Fund 48,095,167 73,063,103 5,503,150 126,661,420
Equity Fund 6,388,752 - 15,392,654 21,781,406
Global Bond Fund 51,630,195 55,384,240 - 107,014,435
Cautious Income 10,082,748 8,508,990 - 18,591,738
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
92
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Interest Rate Risk (continued)
The interest rate profile of the Funds‟ financial assets as at 30 April 2015 is as follows:
As at 30 April 2015
Floating rate
financial assets
Fixed rate financial
assets
Financial assets on
which no interest is
paid Total
Sterling Bond Fund 49,045,386 71,525,469 520,000 121,090,855
Equity Fund 5,275,635 - 16,020,842 21,296,477
Global Bond Fund 35,066,171 55,409,565 - 90,475,736
Cautious Income Fund 147,915 480,057 - 627,972
Credit Risk
This is the risk of loss arising if a counterparty fails to perform its obligations subsequent to the provision of credit facilities
(either on or off balance sheet). The Company will be exposed to a credit risk on parties with whom it trades and will also
bear the risk of settlement default. The Company seeks to minimise concentrations of credit risk by undertaking transactions
with a large number of counterparties on recognised and reputable exchanges. The Investment Manager monitors the credit
risk of the issuing of shares in the Funds. All brokers used are approved for trading purposes by the Investment Manager‟s
Legal and Compliance Committee.
The Sterling Bond Fund and the Global Bond Fund hold a number of futures which are held with Merrill Lynch. The
counterparty is approved for trading purposes by the Investment Manager‟s Legal and Compliance Committee.
Cash Management
The cash balance of all the Funds of the Company are managed by the Custodian and swept into either a bank account with
the Custodian itself, or another bank on a list prepared by the Custodian and approved by the Investment Manager. The risk
of repayment for all deposits held with the bank, including insolvency or sovereign risk, is solely for the account of the client.
This activity no longer takes place since end of March 2015 as the cash balances on the Funds are too small. As at 31 October
2015 the Company held no time deposits (30 April 2015: Nil).
The tables below detail the Funds‟ exposure to credit risk. Cash amounts are held with the Custodian Citibank International
Limited, Ireland Branch which has a credit rating of A1 (30 April 2015: A1 Moody‟s). Derivative instruments are held with
BNY Mellon with a credit rating of A1 Moody‟s and Merrill Lynch International with a credit rating of A (Standard &
Poor‟s).
31 October 2015 30 April 2015
USD USD
Asia Pacific Fund
Cash 5,669,206 6,114,691
Receivable from investments sold 24,414 932,305
Other receivables 146,502 123,636
Total 5,840,122 7,170,632
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
93
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Credit Risk (continued)
31 October 2015 30 April 2015
GBP GBP
Global Equity Fund
Cash 2,178,428 2,797,179
Receivable from investments sold – 3,804,908
Other receivables 215,581 789,519
Total 2,394,009 7,391,606
31 October 2015 30 April 2015
GBP GBP
UK Fund
Cash 1,235,242 837,378
Other receivables 66,277 162,243
Total 1,301,519 999,621
31 October 2015 30 April 2015
EUR EUR
European Fund
Cash 3,248,978 248,085,953
Receivable from investments sold – 39,471,869
Other receivables – 3,218,222
Total 3,248,978 290,776,044
31 October 2015 30 April 2015
GBP GBP
Sterling Bond Fund
Cash 4,421,546 13,406,774
Other receivables 4,912,803 3,006,501
Total 9,334,349 16,413,275
31 October 2015 30 April 2015
GBP GBP
Equity Fund
Cash 1,483,826 1,129,018
Other receivables 257,424 206,604
Total 1,741,250 1,335,622
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
94
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Credit Risk (continued)
31 October 2015 30 April 2015
USD USD
Global Bond Fund
Cash 3,453,349 10,751,638
Other receivables 3,872,705 2,150,434
Total 7,326,054 12,902,072
31 October 2015 30 April 2015
USD USD
Global Equity Wealth Creation Fund
Cash 31,622 236,761
Receivable from investments sold – 72,309
Other receivables 38,913 67,947
Total 70,535 377,017
31 October 2015 30 April 2015
USD USD
Alternatives Fund
Cash 172,997 1,884,327
Other receivables 4,053 96,030
Total 177,050 1,980,357
31 October 2015 30 April 2015
GBP GBP
Cautious Income Fund
Cash 1,258,204 945,264
Other receivables 58,868 73,494
Total 1,317,072 1,018,758
Included in the cash balances are the following amounts which are held with Merrill Lynch International and represent the
collateral for open futures contracts:
31 October 2015 30 April 2015
Sterling Bond Fund GBP 1,826,437 2,268,255
Global Bond Fund USD 1,957,978 1,456,045
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
95
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Credit Risk (continued)
The credit rating profile of the Sterling Bond Fund, Global Bond Fund, Equity Fund and Cautious Income Fund (which are
the four Funds that hold bonds) financial assets, with reference to S&P or Moody as of 31 October 2015 are as follows:
Sterling Bond Fund
As of 31 October 2015
Credit Rating GBP
AA 10,273,778
A 4,272,831
BBB 49,409,096
BB 20,996,849
B 4,052,859
Non-Rated Securities 37,656,009
Total 126,661,422
Equity Fund
As of 31 October 2015
Credit Rating GBP
Non-Rated Securities 21,781,406
Total 21,781,406
Global Bond Fund
As of 31 October 2015
Credit Rating USD
AA 2,839,453
A 5,646,972
BBB 35,686,891
BB 14,864,729
B 3,912,500
Non-Rated Securities 22,256,421
Total 85,206,966
Cautious Income Fund
As of 31 October 2015
Credit Rating GBP
AA 474,294
BB 104,778
Non-Rated Securities 598,188
Total 1,177,260
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
96
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Credit Risk (continued)
The credit rating profile of the Sterling Bond Fund, Global Bond Fund, Equity Fund and Cautious Income Fund (which are
the four Funds that hold bonds) financial assets, with reference to S&P or Moody as of 30 April 2015 are as follows:
Sterling Bond Fund
As of 30 April 2015
Credit Rating GBP
AA 11,831,102
A 6,749,991
BBB 41,091,464
BB 23,141,345
B 5,074,327
Non-Rated Securities 33,202,626
Total 121,090,855
Equity Fund
As of 30 April 2015
Credit Rating GBP
Non-Rated Securities 21,296,477
Total 21,296,477
Global Bond Fund
As of 30 April 2015
Credit Rating USD
AA 7,343,750
A 7,852,178
BBB 35,050,052
BB 14,283,798
B 4,283,798
Non-Rated Securities 21,777,403
Total 90,475,736
Cautious Income Fund
As of 30 April 2015
Credit Rating GBP
AA 480,057
Non-Rated Securities 147,915
Total 627,972
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
97
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Liquidity Risk
The assets of the Funds comprise of mainly readily realisable securities, which can generally be sold within 1 week. Liquidity
is assessed by taking the average number of trading days of each position in each Fund, assuming that each position accounts
for at least 25% of the daily trading volume. The main liability of the Funds tends to be outstanding payables on the purchase
of investments and the redemption of any Shares that investors wish to sell. All financial liabilities are due to mature within
one financial year. The Investment Manager monitors the volume and turnover of the portfolio for liquidity purposes.
The table below analyses the liquidity of the Funds‟ liabilities as at 31 October 2015 and 30 April 2015:
31 October 2015 30 April 2015
Less than 1
month Total
Less than 1
month Total
USD USD USD USD
Asia Pacific Fund
Liabilities
Financial derivative position - - 749 749
Other liabilities 8,079,616 8,079,616 927,879 927,879
Net assets attributable to holders of redeemable shares 91,208,106 91,208,106 100,893,382 100,893,382
Total Liabilities 99,287,722 99,287,722 101,822,010 101,822,010
31 October 2015 30 April 2015
Less than 1
month
1 to 6
months Total
Less than 1
month
1 to 6
months Total
GBP GBP GBP GBP GBP GBP
Global Equity Fund
Liabilities
Financial derivative position - - - - 2,308 2,308
Other liabilities 290,150 - 290,150 4,857,111 - 4,857,111
Net assets attributable to holders of
redeemable shares 52,469,023 - 52,469,023 62,057,365
- 62,057,365
Total Liabilities 52,759,173 - 52,759,173 66,914,476 2,308 66,916,784
31 October 2015 30 April 2015
Less than 1
month Total
Less than 1
month Total
GBP GBP GBP GBP
UK Fund
Liabilities
Other liabilities 346,263 346,263 540,481 540,481
Net assets attributable to holders of redeemable shares 24,575,749 24,575,749 25,729,587 25,729,587
Total Liabilities 24,922,012 24,922,012 26,270,068 26,270,068
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
98
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Liquidity Risk (continued)
31 October 2015 30 April 2015
Less than 1
month Total
Less than 1
month Total
EUR EUR EUR EUR
European Fund
Liabilities
Other liabilities 3,248,978 3,248,978 32,467,937 32,467,937
Net assets attributable to holders of redeemable shares - - 1,613,863,962 1,613,863,962
Total Liabilities 3,248,978 3,248,978 1,646,331,899 1,646,331,899
31 October 2015 30 April 2015
Less than 1 1 to 6 Less than 1 1 to 6
month months Total month months Total
GBP GBP GBP GBP GBP GBP
Sterling Bond Fund
Liabilities
Financial derivative position 204,544 - 204,544 - 489,059 489,059
Other liabilities 2,008,513 - 2,008,513 2,107,278 - 2,107,278
Net assets attributable to holders of
redeemable shares 133,782,714 - 133,782,714 136,718,340
- 136,718,340
Total Liabilities 135,995,771 - 135,995,771 138,825,618 489,059 139,314,677
31 October 2015 30 April 2015
Less than 1
month Total
Less than 1
month Total
GBP GBP GBP GBP
Equity Fund
Liabilities
Other liabilities 834,959 834,959 337,728 337,728
Net assets attributable to holders of redeemable shares 129,252,673 129,252,673 129,374,212 129,374,212
Total Liabilities 130,087,632 130,087,632 129,711,940 129,711,940
31 October 2015 30 April 2015
Less than
1 month
1 to 6
months Total
Less than 1
month
1 to 6
months Total
USD USD USD USD USD USD
Global Bond Fund
Liabilities
Financial derivative position 460,629 - 460,629 - 2,414,765 2,414,765
Other liabilities 1,220,157 - 1,220,157 1,421,640 - 1,421,640
Net assets attributable to holders of
redeemable shares 90,852,234 - 90,852,234 100,076,906
- 100,076,906
Total Liabilities 92,533,020 - 92,533,020 101,498,546 2,414,765 103,913,311
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
99
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
Liquidity Risk (continued)
31 October 2015 30 April 2015
Less than 1
month Total
Less than 1
month Total
USD USD USD USD
Global Equity Wealth Creation Fund
Liabilities
Other liabilities 116,841 116,841 158,887 158,887
Net assets attributable to holders of redeemable shares 10,781,625 10,781,625 10,886,855 10,886,855
Total Liabilities 10,898,466 10,898,466 11,045,742 11,045,742
31 October 2015 30 April 2015
Less than 1
month Total
Less than 1
month Total
USD USD USD USD
Alternatives Fund
Liabilities
Other liabilities 73,289 73,289 149,299 149,299
Net assets attributable to holders of redeemable shares 22,516,533 22,516,533 20,748,609 20,748,609
Total Liabilities 22,589,822 22,589,822 20,897,908 20,897,908
31 October 2015 30 April 2015
Less than 1
month Total
Less than 1
month Total
GBP GBP GBP GBP
Cautious Income Fund
Liabilities
Other liabilities 135,947 135.947 114,346 114,346
Net assets attributable to holders of redeemable shares 11,340,614 11340,614 10,158,702 10,158,702
Total Liabilities 11,476,561 11,476,561 10,273,048 10,273,048
ASSOCIATED RISK FOR DERIVATIVE INSTRUMENTS
The Company may use derivative instruments traded on an organised exchange and/or on over-the-counter markets for
investment purposes and/or efficient portfolio management in accordance with the investment objective and the policy of the
Fund. The use of these strategies involves certain special risks, including but not limited to: (i) dependence on the ability to
predict movements in the prices of securities being hedged and movement in interest rates; (ii) imperfect correlation between
the hedging instruments and the securities or market sectors being hedged; (iii) the possible absence of a liquid market for
any particular instrument; (iv) possible impediments to effective portfolio management or the ability to meet repurchase
requests or other short-term obligations because of the percentage of a Fund‟s assets segregated to cover its obligations; (v)
the risk of counterparty default delaying or impeding the recovery of a Fund‟s assets; (vi) the fact that skills needed to use
these instruments are different from those needed to select the Fund‟s securities; and (vii) the potential loss arising from the
use of FDI or EPM may not be predictable and may even exceed the margin or other collateral paid. A Fund‟s ability to use
these strategies may be limited by market conditions, regulatory limits and tax considerations and these strategies may be
used only in accordance with the investment objectives of the Fund.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
100
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
ASSOCIATED RISK FOR DERIVATIVE INSTRUMENTS (continued)
Derivative instruments are only utilised within the Company for the purposes of reducing risk either by hedging exposure or
reducing volatility. Derivative exposures are monitored on a daily basis by the Investment Manager‟s Legal and Compliance
Committee. Details of derivative contracts held by the Company as at 31 October 2015 are included in the Portfolio
Investments.
FAIR VALUE ESTIMATION
The Company adopted FRS 102, effective 1 January 2015. FRS 102 duplicates the previous policy, FRS 29 Financial
Instruments Disclosure, of the three-level fair value measurement hierarchy however there are distinct differences in these
Classifications for Funds in preparing financial statements. The table below is to help avoid misinterpretation of this change
in policy in that it is a summary of the two different approaches. Additionally the comparative figures have been disclosed in
accordance with both the old and new accounting policies.
Prior half financial year‟s
Classification Valuation methodology Current half financial year‟s
Classification Level 1 Quoted prices for identical instruments in
active markets
Level A
Level 2 Prices of recent transactions for identical
instruments
Level B Valuation techniques using observable market
data
Level C Level 3 Valuation techniques using non-observable
data
This requires the Funds to classify fair value measurements using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. The fair value hierarchy has the following levels:
• Level A - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level B - When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of
fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the
transaction took place.
• Level C - If the market for the asset is not active and recent transactions of an identical asset on their own are not a good
estimate of fair value, an entity estimates the fair value by using a valuation technique, based on observable market data or
non-observable market data.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on
the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the
significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses
observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level C
measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement
and consideration of factors specific to the asset or liability.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
101
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
FAIR VALUE ESTIMATION (continued)
The following table analyses within the fair value hierarchy, each Fund‟s financial assets and financial liabilities designated
at fair value through profit or loss on 31 October 2015:
Level A
Level B
Level C
Total
Asia Pacific Fund USD USD USD USD
Investments in Securities 93,050,110 397,490 - 93,447,600
Other Financial Instruments - - 18 18
Total Investments 93,050,110 397,490 18 93,447,618
Global Equity Fund GBP GBP GBP GBP
Investments in Securities 50,365,164 - - 50,365,164
Other Financial Instruments - - - -
Total Investments 50,365,164 - - 50,365,164
UK Fund GBP GBP GBP GBP
Investments in Securities 23,620,493 - - 23,620,493
Total Investments 23,620,493 - - 23,620,493
Sterling Bond Fund GBP GBP GBP GBP
Investments in Securities 11,730,700 - 114,930,722 126,661,422
Other Financial Instruments (204,544) - 470,664 266,120
Total Investments 11,526,156 - 115,401,386 126,927,542
Equity Fund GBP GBP GBP GBP
Investments in Securities 35,225,406 93,120,976 - 128,346,382
Total Investments 35,225,406 93,120,976 - 128,346,382
Global Bond Fund
Investments in Securities - - 85,206,966 85,206,966
Other Financial Instruments (184,856) - (207,385) (392,241)
Total Investments (184,856) - 84,999,581 84,814,725
Global Equity Wealth
Creation Fund USD USD USD USD
Investments in Securities 10,827,931 - - 10,827,931
Total Investments 10,827,931 - - 10,827,931
Alternatives Fund GBP GBP GBP GBP
Investments in Securities 1,277,566 21,135,206 - 22,412,772
Total Investments 1,277,566 21,135,206 - 22,412,772
Cautious Income Fund GBP GBP GBP GBP
Investments in Securities 4,140,417 5,726,932 292,140 10,159,489
Total Investments 4,140,417 5,726,932 292,140 10,159,489
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
102
11. FINANCIAL INSTRUMENTS, DISCLOSURE (continued)
FAIR VALUE ESTIMATION (continued)
At 30 April 2015 the inputs used in valuing the Funds‟ investments, which are carried at value, were as follows:
Level A
Level B
Level C
Total
Asia Pacific Fund USD USD USD USD
Investments in Securities 92,583,058 2,068,320 - 94,651,378
Other Financial
Instruments - - (749) (749)
Total Investments 92,583,058 2,068,320 (749) 94,650,629
Global Equity Fund GBP GBP GBP GBP
Investments in Securities 59,525,178 - - 59,525,178
Other Financial
Instruments
- (2,308) (2,308)
Total Investments 59,525,178 - (2,308) 59,522,870
UK Fund GBP GBP GBP GBP
Investments in Securities 25,270,447 - - 25,270,447
Total Investments 25,270,447 - - 25,270,447
European Fund EUR EUR EUR EUR
Investments in Securities 1,355,555,855 - - 1,355,555,855
Total Investments 1,355,555,855 - - 1,355,555,855
Sterling Bond Fund GBP GBP GBP GBP
Investments in Securities 8,022,350 - 113,068,505 121,090,855
Other Financial
Instruments 72,754 - 1,248,734 1,321,488
Total Investments 8,095,104 - 114,317,239 122,412,343
Equity Fund GBP GBP GBP GBP
Investments in Securities 20,701,750 107,674,568 - 128,376,318
Total Investments 20,701,750 107,674,568 - 128,376,318
Global Bond Fund USD USD USD USD
Investments in Securities 18,195,748 72,279,988 - 90,475,736
Other Financial
Instruments (35,831) - (1,843,431) (1,879,262)
Total Investments 18,159,917 72,279,988 (1,843,431) 88,596,474
Global Equity Wealth
Creation Fund USD USD USD USD
Investments in Securities 10,705,180 - - 10,705,180
Total Investments 10,705,180 - - 10,705,180
Alternatives Fund GBP GBP GBP GBP
Investments in Securities 1,777,152 17,140,399 - 18,917,551
Total Investments 1,777,152 17,140,399- - 18,917,551
Cautious Income Fund GBP GBP GBP GBP
Investments in Securities 2,828,578 6,425,712 - 9,254,290
Total Investments 2,828,578 6,425,712 - 9,254,290
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
103
12. NET ASSET COMPARISON
In accordance with the provisions of the Prospectus, financial assets at fair value through profit or loss are valued at the latest
mid-market quotation on its regulated market as at the Valuation Point for the purpose of calculating the net asset value.
Financial assets at fair value through profit or loss for financial statement purposes have been valued based on the latest bid
prices. The difference between the valuation methodology of the financial statements, as required by FRS 102, and the policy
in the Prospectus, results in there being differences which are detailed in the table below.
As at 31 October 2015
Asia Pacific
Fund
Global Equity
Fund
UK
Fund
European
Fund
USD GBP GBP EUR
Net Assets Attributable to Holders of Redeemable
Shares
Valuation in accordance with Prospectus (mid market
price) 91,384,819 52,517,954 24,606,950 -
Adjustment to the value at latest bid price (176,713) (48,931) (31,201) -
Valuation in accordance with FRS 102 91,208,106 52,469,023 24,575,749 -
Sterling Bond
Fund
Equity
Fund
Global Bond
Fund
GBP GBP USD
Net Assets Attributable to Holders of Redeemable
Shares
Valuation in accordance with Prospectus (mid market
price) 134,101,390 129,280,828 90,925,184
Adjustment to the value at latest bid price (318,676) (28,155) (72,950)
Valuation in accordance with FRS 102 133,782,714 129,252,673 90,852,234
Global Equity Wealth
Creation Fund
Alternatives
Fund
Cautious Income
Fund
USD GBP GBP
Net Assets Attributable to Holders of Redeemable Shares
Valuation in accordance with Prospectus (mid market price) 10,790,855
22,553,241 11,355,440
Adjustment to the value at latest bid price (9,230) (36,708) (14,826)
Valuation in accordance with FRS 102 10,781,625 22,516,533 11,340,614
As at 30 April 2015
Asia Pacific
Fund
Global Equity
Fund
UK
Fund
European
Fund
USD GBP GBP EUR
Net Assets Attributable to Holders of Redeemable
Shares
Valuation in accordance with Prospectus (mid market
price) 101,199,632 62,127,709 25,785,240 1,616,378,800
Adjustment to the value at latest bid price (306,250) (70,344) (55,653) (2,514,838)
Valuation in accordance with FRS 102 100,893,382 62,057,365 25,729,587 1,613,863,962
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
104
12. NET ASSET COMPARISON (continued)
As at 30 April 2015 (continued)
Sterling Bond
Fund
Equity
Fund
Global Bond
Fund
GBP GBP USD
Net Assets Attributable to Holders of Redeemable
Shares
Valuation in accordance with Prospectus (mid market
price) 137,139,924 130,366,419 100,371,736
Adjustment to the value at latest bid price (421,584) (992,207) (294,830)
Valuation in accordance with FRS 102 136,718,340 129,374,212 100,076,906
Global Equity
Wealth
Creation Fund
Alternatives
Fund
Cautious
Income Fund
USD GBP GBP
Net Assets Attributable to Holders of Redeemable
Shares
Valuation in accordance with Prospectus (mid market
price) 10,915,611 20,827,921 10,235,399
Adjustment to the value at latest bid price (28,756) (79,312) (76,697)
Valuation in accordance with FRS 102 10,886,855 20,748,609 10,158,702
For the purpose of disclosure of the Net Assets and the net asset value per Share, these financial statements disclose the
dealing net assets and net asset value per Share at which Shareholders of redeemable participating Shares can subscribe and
redeem. This is based on the valuations per the Prospectus.
Published 31 October 2015 30 April 2015 30 April 2014
Net Assets NAV Per Share Net Assets NAV Per Share Net Assets NAV Per Share
Asia Pacific Fund
Class A US$ . . . . . . . . . . . . 16,020,469 17.98 17,888,073 21.26 16,731,760 19.62
Class A Euro . . . . . . . . . . . 13,486 21.91 15,902 23.10 14,377 17.25
Class A Stg£ . . . . . . . . . . . 71,777,760 29.91 80,122,141 22.85 75,574,807 19.35
Class B US$ . . . . . . . . . . . . – – – – – –
Class B Stg£ . . . . . . . . . . . . – – – – – –
Class M Stg£ . . . . . . . . . . . 3,573,105 14.95 3,173,603 11.46 – –
Global Equity Fund
Class A US$ . . . . . . . . . . . . 1,150,172 13.68 1,156,323 23.05 1,066,859 22.91
Class A Stg£ . . . . . . . . . . . 51,367,782 13.57 60,971,423 14.83 50,163,948 13.52
Class B US$ . . . . . . . . . . . . – – – – – –
Class B Stg£ . . . . . . . . . . . . – – – – – –
UK Fund
Class A Stg£ . . . . . . . . . . . 24,550,741 13.14 25,634,245 13.48 27,418,944 12.85
Class B Stg£ . . . . . . . . . . . . 56,209 13.12 150,995 13.49 142,636 12.86
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
105
12. NET ASSET COMPARISON (continued)
Published 31 October 2015
30 April 2014 30 April 2015 30 April 2014
Net Assets NAV Per Share Net Assets NAV Per Share Net Assets NAV Per Share
European Fund
Class A Euro . . . . . . . . . . . – – 723,363,115 18.63 371,855,269 15.94
Class A Stg£ . . . . . . . . . . . . – – 729,670,396 19.45 476,958,760 18.89
Class B Euro . . . . . . . . . . . – – 59,822,281 18.45 29,278,202 15.79
Class A Euro Acc. . . . . . . . .
… … … .
– – 103,523,010 11.62 – –
Sterling Bond Fund
Class A Stg£ . . . . . . . . . . . . 122,514,073 9.40 126,570,000 9.79 124,297,616 10.05
Class B Stg£ . . . . . . . . . . . . 26,892 9.16 27,148 9.56 48,683 9.87
Class P Stg£ . . . . . . . . . . . . 11,560,424 9.42 10,542,776 9.79 4,018,639 10.02
Equity Fund
Class A Stg£ . . . . . . . . . . . . 65,231,253 14.69 70,704,987 15.87 67,810,102 13.41
Class B Stg£ . . . . . . . . . . . . 24,048,561 14.50 22,450,184 15.66 20,220,194 13.18
Class P Stg£ . . . . . . . . . . . . 40,001,014 10.83 37,211,249 11.69 13,762,538 9.83
Global Bond Fund
Class A US$ . . . . . . . . . . . . 66,163,785 8.72 75,641,667 9.17 70,791,483 9.51
Class A Stg£ . . . . . . . . . . . . 1,890,054 13.23 1,606,412 9.06 1,813,873 9.38
Class I Euro . . . . . . . . . . . . 1,109,133 10.79 – – – –
Class I US$ Distribution . . . 21,762,212 9.17 23,123,660 9.61 15,511,564 9.88
Global Equity Wealth Creation
Class A US$ Institutional . . . 10,790,855 9.97 10,915,611 10.52 7,712,700 9.97
Alternatives Fund
Class A Stg£ . . . . . . . . . . . . . 730,128 10.24 499,081 10.37 120,577 9.95
Class P Stg£ . . . . . . . . . . . . . 21,823,112 10.31 20,328,840 10.44 9,171,278 9.96
Cautious Income Fund
Class B Stg£ . . . . . . . . . . . . . 7,638,965 10.16 6,715,300 10.62 – –
Class P Stg£ . . . . . . . . . . . . . 3,716,475 10.20 3,520,099 10.64 – –
13. UMBRELLA STRUCTURE OF THE COMPANY AND CROSS-LIABILITY RISK
Each Fund will be responsible for paying its fees and expenses regardless of the level of its profitability. The Company is an
umbrella Fund with segregated liability between Funds. The adoption of segregated liability ensures that the liabilities
incurred on behalf of a Fund will generally be discharged solely out of the assets of that Fund and there can generally be no
recourse to the other Funds to satisfy those liabilities, notwithstanding the foregoing, there can be no assurance that, should
an action be brought against the Company in the courts of another jurisdiction that the segregated nature of the Funds would
necessarily be upheld.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
106
14. DISTRIBUTIONS
The following distributions were made during the half financial year ended 31 October 2015:
Asia
Pacific
Fund
Global
Equity
Fund
UK
Fund
European
Fund
Sterling
Bond Fund
USD GBP GBP EUR GBP Dividends to holders of redeemable shares
Class A Euro 645 – – – – Class A Stg£ 3,348,017 155,477 273,386 – 3,273,946
Class A US$ 802,894 3,153 – – –
Class B Euro – – – – – Class B Stg£ – – 615 – 707
Class M Stg£ – – – – – Class P Stg£ 199,659 – – – 301,029
4,351,215 158,630 274,001 – 3,575,682
Equity
Fund
Global
Bond
Fund
Global Equity
Wealth
Creation Fund
Alternatives
Fund
Cautious
Income
Fund
GBP USD USD USD GBP
Dividends to holders of redeemable shares Class A Stg£ 123,908 51,792 – – – Class A US$ – 1,904,812 86,650 – – Class B Stg£ 74,675 – – – 157,653 Class I US$ distribution – 479,627 – – – Class P Stg£ 192,726 – –
53,650 79,337 391,309 2,436,231 86,650 53,650 236,990
The following distributions were made during the half financial year ended 31 October 2014:
Asia
Pacific
Fund
Global
Equity
Fund
UK
Fund
European
Fund
Sterling Bond
Fund
USD GBP GBP EUR GBP Dividends to holders of redeemable shares
Class A Euro 138 – – 230,559 – Class A Stg£ 720,838 51,490 303,740 931,997 3,505,296
Class A US$ 158,745 1,070 - – – Class B Euro – – 1,252 – –
Class B Stg£ – – – – 1,298 Class P Stg£ – – – – 198,640
879,721 52,560 304,992 1,162,556 3,705,234
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
107
14. DISTRIBUTIONS (continued)
Global
Bond
Fund
Global Equity
Wealth Creation
Fund
Alternatives
Fund
Cautious
Income Fund
USD USD GBP GBP
Dividends to holders of redeemable shares Class A Stg£ 47,086 – – –
Class A US$ 1,929,573 63,670 – –
Class B Stg£ – – – 2,761 Class I US$ distribution 380,045 – – –
Class P Stg£ – – 2,920 1,381
2,356,704 63,670 2,920 4,142
15. DIRECTORS' & RELATED PARTIES INTERESTS
In the opinion of the Directors, the Investment Manager is a related party under FRS 102 “The Financial Reporting Standard
applicable in the UK and Republic of Ireland”. Fees payable to the Investment Manager as at 31 October 2015 and 30 April
2015 and expenses incurred during the half financial year ended 31 October 2015 and 31 October 2014 are shown on the
Statement of Financial Position and the Statement of Comprehensive Income, respectively. All transactions with related
parties, Directors or any party in which they have a material interest are entered into in the ordinary course of business on
normal commercial terms.
The Board of Directors is satisfied that: (i) there are arrangements (evidenced by written procedures) in place to ensure that
the obligations set out in paragraph 1 of the Central Bank‟s UCITS Notice 14 are applied to all transactions with connected
parties; and (ii) transactions with connected parties entered into during the period complied with the obligations set out in
paragraph 1 of UCITS Notice 14.
Amounts receivable from the Investment Manager, are detailed in the Statement of Financial Position on pages 56 to 59.
Paul McNaughton is also a director of Hermes Asia ex Japan Fund and SIG – Lyrical Fund H, which are a Fund of Fund
investments held by the Waverton Equity Fund.
Johnny McClintock is also a director of Guinness Global Equity Income Fund and the Guinness Global Innovators Fund, in
which Waverton Equity Fund has invested. The Cautious Income Fund has also invested in the Guinness Global Equity
Income Fund.
The following Directors and related parties held shares in the Company as at 31 October 2015 and 30 April 2015:
31 October 2015 30 April 2015
Class Shares Shares
Asia Pacific Fund
Hugh Grootenhuis A Stg£ - 1,828
Global Equity Fund
Hugh Grootenhuis A Stg£ - 3,159
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
108
15. DIRECTORS' & RELATED PARTIES INTERESTS (continued)
31 October 2015 30 April 2015
Class Shares Shares
UK Fund
Hugh Grootenhuis A Stg£ - 2,766
European Fund
Hugh Grootenhuis A Stg£ - 1,412
Hugh Grootenhuis A Euro - 7,038
Sterling Bond Fund
Hugh Grootenhuis A Stg£ - 7,827
Alternatives Fund
Hugh Grootenhuis A Stg£ - 184,500
16. SIGNIFICANT EVENTS DURING THE HALF FINANCIAL YEAR
An extraordinary general meeting of the shareholders of the European Fund was convened on 22 June 2015 where resolutions
proposing the merger between the European Fund and Odey European Focus Fund (the “Merger”) were approved. The
Merger took effect as of 30 June 2015. Pursuant to the Merger, the assets of the European Fund were transferred to Odey
European Focus Fund, a sub-fund of Odey Investment Funds plc. All shareholders of the European Fund were issued shares
in the Odey European Focus Fund in proportion to their current shareholding in the European Fund and their European Fund
shares were cancelled.
On 22 October 2015, Mr. Hugh Grootenhuis resigned as a director of the Company
17. SIGNIFICANT EVENTS POST HALF FINANCIAL YEAR END
Effective 31 October 2015:
RBC Investor Services Bank S.A. (Dublin Branch) was appointed as custodian of the Company in place of Citibank
Europe plc; and
RBC Investor Services Ireland Limited was appointed as administrator of the Company in place of Citibank
International Limited.
A revised prospectus of the Company was filed with the Central Bank for noting on 2 November 2015 to reflect the
following:
The appointment of RBC Investor Services Bank S.A. (Dublin Branch) as custodian of the Company;
The appointment of RBC Investment Services Ireland Limited as administrator of the Company;
The appointment of Bridge Consulting to provide secondees (designated individuals) who are responsible on
behalf of the Company for the discharge of a number of management functions services in respect of the
Company;
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Notes to the Financial Statements (continued)
109
17. SIGNIFICANT EVENTS POST HALF FINANCIAL YEAR END (continued)
A general update to the prospectus to reflect the latest developments, including the resignation of Mr Grootenuis
as a director of the Company on 22 October 2015.
On 6 November 2015, Mr. Marc Geduldt was appointed as a director of the Company.
18. COMPARATIVE INFORMATION
Certain comparative information in the notes has been restated in order to conform with the current half financial year‟s
presentation.
19. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved by the Directors on 10 December 2015.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited)
110
Asia Pacific Fund
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost USD
CK Hutchison Holdings Ltd. 506,380 9,573,206
Cheung Kong Property Holding 1113 Hk 1,003,880 8,843,949
Asia Satellite Telecommunications Holdings Ltd. 2,787,203 8,219,581
Melco Crown Entertainment Ltd. 251,000 4,647,356
JD.com, Inc. 153,300 4,456,872
NetEase, Inc. 32,581 4,314,051
Jardine Matheson Holdings Ltd. 137,500 4,272,479
Hyundai Motor Co. 26,300 3,189,079
Samsung Electronics Co., Ltd. 2,700 3,139,994
Jardine Cycle & Carriage Ltd. 135,500 3,079,244
Kulicke & Soffa Industries, Inc. 229,448 2,908,136
Noble Group Ltd. 6,550,000 2,607,215
Wynn Macau Ltd. 1,256,800 2,528,157
My Eg Services Bhd Myeg Mk 3,541,000 2,506,446
Hutchison Whampoa Ltd. 169,000 2,492,440
Cordlife Group Ltd. 2,485,043 2,375,588
Asian Pay Television Trust 3,232,200 2,135,730
SJM Holdings Ltd. 1,590,000 2,112,329
Jasmine Broadband Internet Infrastructure Fund 7,220,000 2,080,967
Jasmine International PCL 14,300,000 2,060,229
Bank of China Ltd. 4,170,000 1,929,507
Agricultural Bank of China Ltd. 4,765,000 1,918,915
China Construction Bank Corp. 2,684,000 1,918,631
Industrial & Commercial Bank of China Ltd. 3,018,000 1,882,775
Reliance Industries Ltd. 65,135 1,858,843
Pc Jeweller Ltd Pcjl In 300,000 1,814,117
Peak Sport Products Co., Ltd. 8,550,172 1,758,312
Byd Co 'H'Shs Cny1 354,000 1,605,927
China Meidong Auto Holdings Ltd. 8,348,000 1,604,387
Melco Crown Entertainment 6883 Hk 237,000 1,496,979
Bangkok Dusit Medical Services PCL 2,710,100 1,480,664
Hana Microelectronics PCL 1,359,000 1,282,208
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
111
Asia Pacific Fund (continued)
Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds USD
Cheung Kong Property Holding 1113 Hk 1,003,880 8,517,574
Hutchison Whampoa Ltd. 445,000 6,526,517
Hyundai Motor Co. 42,900 6,028,851
Lotte Shopping Co., Ltd. 16,300 3,724,746
SK Telecom Co., Ltd. 16,800 3,659,988
Largan Precision Co., Ltd. 32,918 3,557,892
Jardine Matheson Holdings Ltd. 62,700 3,549,628
Coal India Ltd. 499,540 3,163,953
Thai Beverage PCL 5,000,000 2,810,310
Siam Cement PCL 173,000 2,680,515
Persistent Systems Ltd. 233,500 2,659,866
Samsung Electronics Co., Ltd. 2,627 2,655,629
Samsonite International SA 752,600 2,595,635
MediaTek, Inc. 190,000 2,424,257
BTS Group Holdings PCL 7,893,500 2,327,612
Asia Satellite Telecommunications Holdings Ltd. 1,571,420 2,315,041
GS Home Shopping, Inc. 10,000 2,276,648
My Eg Services Bhd Myeg Mk 3,541,000 2,132,923
OSIM International Ltd. 1,670,000 2,072,694
Byd Co 'H'Shs Cny1 354,000 2,044,794
Hang Lung Properties Ltd. 679,000 1,891,606
NetEase, Inc. 12,200 1,773,748
PXP Vietnam Fund Ltd. 288,048 1,727,259
Pc Jeweller Ltd Pcjl In 300,000 1,565,950
Reliance Industries Ltd. 50,000 1,544,789
Melco Crown Entertainment 6883 Hk 237,000 1,496,980
Jardine Matheson Holdings Ltd. 47,300 1,441,933
China Construction Bank Corp. 1,230,000 1,228,187
Industrial & Commercial Bank of China Ltd. 1,401,000 1,220,997
Bank of China Ltd. 1,790,000 1,201,267
Agricultural Bank of China Ltd. 2,171,000 1,183,143
Hilong Holding Ltd. 3,788,000 981,983
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
112
Asia Pacific Fund (continued)
Additional Portfolio Information (unaudited) The following table summarises the fees paid by the underlying investment Fund held by the Asia Pacific Fund during the half financial year as stated in the prospectus or
applicable information held by the relevant Fund.
Names Manager Domicile
Management
fee %
Performance
fee %
Subscription
fee %
Redemption
fee %
PXP Vietnam Fund Ltd. Kevin Snowball Cayman 2.00% 0.00% 0.00% 0.00%
The boards of directors of the above mentioned underlying Fund may elect to reduce, increase, waive or calculate differently these fees with respect to certain
shareholders.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
113
Global Equity Fund
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost GBP
Svenska Handelsbanken AB 318,045 2,412,667
ON Semiconductor Corp. 219,550 1,898,185
Convergys Corp. 107,100 1,786,691
Canadian Natural Resources Ltd. 93,500 1,780,209
Casey's General Stores, Inc. 25,000 1,674,033
Union Pacific Corp. 20,610 1,256,839
Bandai Namco Holdings, Inc. 75,500 1,130,774
Roche Holding AG 6,000 1,055,724
Novartis AG 17,500 1,054,809
CDW Corp/DE 42,550 1,035,505
Old Dominion Freight Line, Inc. 13,200 584,821
Helmerich & Payne, Inc. 15,850 577,059
Bechtle AG 10,800 549,702
Entertainment-Full Paid Rts Etof Ln 139,622 335,985
Entertainment One Ltd. 139,622 335,984
Berkshire Hathaway, Inc. 3,200 270,585
Wells Fargo & Corp. 4,800 162,971
Entertainment One Rts Sub End 19/10/2015 139,622 122,363
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
114
Global Equity Fund (continued)
Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds GBP
American Express Corp. 53,538 2,583,640
AGCO Corp. 78,100 2,578,351
Svenska Handelsbanken AB 106,015 2,412,667
Parker Hannifin Corp. 31,369 2,185,691
Bridgestone Corp. 89,000 1,890,504
Microsoft Corp. 58,670 1,770,693
Oracle Corp. 61,050 1,570,906
Avnet, Inc. 28,975 751,888
Cummins, Inc. 9,306 681,308
Helmerich & Payne, Inc. 12,700 566,774
Canadian Natural Resources Ltd. 34,600 501,134
Tech Data Corp. 11,500 469,297
Entertainment-Full Paid Rts Etof Ln 139,622 335,984
CRH Plc 17,100 306,955
Berkshire Hathaway, Inc. 3,300 294,161
Svenska Handelsbanken AB 32,000 291,286
Union Pacific Corp. 3,900 242,288
Wells Fargo & Corp. 6,850 241,940
Toyota Motor Corp. 5,500 223,159
Admiral Group Plc 12,650 205,712
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
115
UK Fund
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost GBP
Dixons Carphone Plc 180,000 859,490
Entertainment One Ltd. 238,333 706,361
HSBC Holdings Plc 100,000 571,958
Poundland Group Plc 175,000 505,719
RPC Group Plc 74,000 505,611
ARM Holdings Plc 50,000 481,998
Dairy Crest Group Plc 55,000 283,021
Aviva Plc 50,000 271,196
Reckitt Benckiser Group Plc 4,250 253,915
Dunelm Group Plc 28,000 248,611
Prudential Plc 14,500 220,053
Entertainment-Full Paid Rts Etof Ln 73,333 177,278
Johnson Matthey Plc 4,750 146,394
WPP Plc 8,800 118,421
BG Group Plc 11,000 105,227
Just Eat Plc 20,370 88,066
Entertainment One Rts Sub End 19/10/2015 73,333 65,079
Just Eat Plc-Ent Rts Sub End 08/06/2015 20,370 1,493
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
116
UK Fund (continued)
Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds GBP
Ultra Electronics Holdings Plc 45,000 831,283
Marston's Plc 490,000 780,915
Sports Direct International Plc 100,000 756,758
Centrica Plc 275,000 744,719
easyJet Plc 42,500 676,174
Compass Group Plc 50,000 515,197
Johnson Matthey Plc 20,750 477,264
Vodafone Group Plc 180,000 394,337
SABMiller Plc 6,500 236,807
Entertainment-Full Paid Rts Etof Ln 73,333 177,279
BG Group Plc 15,000 169,133
CRH Plc 8,500 160,752
Inmarsat Plc 15,000 149,325
DCC Plc 2,500 131,112
Dairy Crest Group Plc 20,000 130,534
GKN Plc 36,000 104,147
Inchcape Plc 10,000 88,882
Entertainment One Ltd. - 65,079
Entertainment One Rts Sub End 19/10/2015 73,333 65,079
Just Eat Plc-Ent Rts Sub End 08/06/2015 20,370 1,493
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
117
European Fund
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost EUR
Ing Groep Nv Eur0.24 3,626,480 53,169,154
Deutsche Bank Ag Npv(Regd) 1,549,168 43,957,552
Svenska Cellulosa Ab-B Shs Scab Ss 1,873,773 43,821,385
Fresnillo Plc Fres Ll 3,141,261 33,783,292
Suedzucker AG 1,796,385 25,540,818
Centrica Plc 6,526,821 25,406,883
Assa Abloy 1,338,078 17,727,149
Alcatel-Lucent 3,062,798 10,270,952
Koninklijke DSM NV 160,066 8,120,176
E.ON SE 541,716 7,353,124
Holcim Ltd. 57,644 3,974,732
Orange SA 261,674 3,893,406
Husqvarna AB 493,219 3,307,685
Svenska Cellulosa Ab-B Shs 591571Q Vx 136,000 3,211,363
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
118
European Fund (continued)
Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds EUR
E.ON SE 6,238,389 85,388,668
Orange SA 6,494,430 83,546,162
Lloyds Banking Group Plc 76,508,760 82,225,182
Centrica Plc 22,140,380 81,662,169
Carrefour SA 3,081,212 81,338,818
Lonza Group AG 700,229 69,368,932
Koninklijke Philips NV 2,755,584 66,520,735
Holcim Ltd. 972,370 66,363,786
Danske Bank A/S 3,252,957 63,888,272
Alcatel-Lucent 18,553,131 59,783,567
International Consolidated Airlines Group SA 9,778,014 59,408,407
Koninklijke DSM NV 1,152,000 56,312,434
Ing Groep Nv Eur0.24 3,626,480 53,048,219
easyJet Plc 1,939,823 45,608,357
Fresenius Medical Care AG & Co KGaA 856,173 44,892,987
SES SA 1,635,964 44,365,769
Svenska Cellulosa Ab-B Shs Scab Ss 1,873,773 44,339,868
Deutsche Bank Ag Npv(Regd) 1,549,168 43,796,527
Suedzucker AG 3,146,408 43,008,819
Societe Television Francaise 1 3,274,590 41,656,868
Koninklijke KPN NV 12,464,367 40,852,002
Cap Gemini SA 619,221 36,021,828
Fresnillo Plc Fres Ll 3,141,261 34,315,701
Husqvarna AB 6,122,955 33,760,039
RWE AG 1,522,052 31,605,568
Securitas AB 2,990,541 26,482,255
Assa Abloy 1,338,078 23,506,412
Fomento de Construcciones y Contratas SA 1,735,051 18,081,945
Assa Abloy AB 449,768 17,931,657
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
119
Sterling Bond Fund
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost GBP
United Kingdom Gilt, 3.25%, due 22/01/44 6,000,000 6,974,985
United Kingdom Treasury Bill 5,000,000 4,993,250
Pershing Square Holdings Ltd. 6,882,000 4,387,752
LBG Capital No.2 Plc 2,535,000 3,604,038
United States Treasury Note/Bond, 3.63%, due 15/02/44 3,000,000 2,258,601
Barclays Plc, 7.00%, due 15/06/49 2,200,000 2,205,500
Treasury Bill 0% 14-10/Dec/15 2,500,000 1,604,684
PGH Capital Ltd, 6.63%, due 18/12/25 1,500,000 1,550,500
UBS Group AG 2,000,000 1,377,966
SG Issuer SA 1,000,000 1,000,000
Nationwide Building Society, 6.88%, due 11/03/49 700,000 687,050
Paragon Group of Cos Plc/The 375,000 375,000
Provident Financial Plc, 7.00%, due 04/10/17 300,000 316,320
Santander Uk Group 7.375% 15-24/06/22 200,000 200,000
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
120
Sterling Bond Fund (continued)
Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds GBP
United Kingdom Gilt, 3.25%, due 22/01/44 7,000,000 7,888,764
United States Treasury Note/Bond, 3.63%, due 15/02/44 6,000,000 4,399,197
Barclays Plc, 7.00%, due 15/06/49 2,200,000 2,202,690
Treasury Bill 0% 14-10/Dec/15 2,500,000 1,637,253
Scottish Widows Plc, 5.13%, due 29/09/49 1,260,000 1,260,000
Cabot Financial Luxembourg SA, 6.50%, 01/04/21 1,000,000 960,111
Barclays Bank Plc, 4.75%, due 29/03/49 1,000,000 777,340
Tesco Personal Finance Plc, 1.00%, due 16/12/19 700,000 736,452
HSBC Capital Funding LP/Jersey, 8.21%, due 30/06/15 700,000 700,000
PGH Capital Ltd, 5.75%, due 07/07/21 490,000 552,079
Santander UK Plc, 7.04%, due 14/02/26 450,000 550,152
QED Finance Plc, 6.50%, due 29/07/20 500,000 540,693
Provident Financial Plc, 8.00%, due 23/10/19 300,000 347,698
Santander Uk Group 7.375% 15-24/06/22 200,000 198,784
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
121
Equity Fund
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost GBP
iShares Russell 1000 Growth ETF 127,420 7,999,258
Thesis Unit Trust Management - TM Sanditon UK Fund 5,513,784 5,500,000
HSBC MSCI WORLD UCITS ETF 434,165 4,661,593
HSBC S&P 500 UCITS ETF 316,807 4,292,479
Wells Fargo Lux Worldwide Fund - U.S. Premier Growth Fund 20,303 2,106,820
Odey Investment Funds Plc - Odey Allegra Developed Markets Fund 12,885 1,716,790
SIG - Lyrical Fund 195,081 1,319,251
Edinburgh Partners Opportunities Fund Plc - European Opportunities
Fund Plc
591,611 1,205,703
SGA Societe Generale Acceptance NV, 3.89% , due 10/02/20 1,330,000 1,204,315
Guinness Global Innovators Fund 74,389 781,509
Polar Capital Funds Plc - Japan Fund 30,284 663,220
FP Argonaut Funds - FP Argonaut European Alpha Fund 261,347 387,943
Prusik Asian Equity Income Fund 3,426 325,513
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
122
Equity Fund (continued)
Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds GBP
Wells Fargo Lux Worldwide Fund - U.S. Premier Growth Fund 78,200 7,667,246
Allianz UK & European Investment Funds - Allianz UK Growth
Fund 114,173 5,238,613
Premier Global Utilities Income Fund 5,142,885 5,059,336
Nordea 1 SICAV - North American All Cap Fund 30,533 3,187,960
Guinness Asset Management Funds Plc - Global Equity Income
Fund 99,077 1,295,670
HSBC EURO STOXX 50 UCITS ETF 11,168 303,440
Guinness Global Innovators Fund 26,750 257,474
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
123
Equity Fund (continued)
Additional Portfolio Information (unaudited) The following table summarises the fees paid by the underlying investment Funds held by the Equity Fund during the half financial year as stated in the prospectus or applicable
information held by the relevant Fund.
Names Manager Domicile
Management
fee %
Performance
fee %
Subscription
fee %
Redemption
fee %
Edinburgh Partners Opportunities Fund Plc – European
Opportunities Fund Plc Dale Robertson Ireland 0.75% 0.00% 1.50% 0.00%
FP Argonaut Funds - FP Argonaut European Alpha Fund Barry Norris England 0.75% 0.00% 0.00% 0.00%
Guinness Asset Management Funds Plc - Global Equity
Income Fund Matthew Page Ireland 0.25% 0.00% 0.00% 2.00%
Guinness Global Innovators Fund Ireland
Hermes Asia Ex-Japan Equity Fund Jonathan Dan Pines Ireland 0.75% 0.00% 0.00% 0.00%
HSBC EURO STOXX 50 UCITS ETF Ireland 0.15% 0.00% 0.00% 0.00%
HSBC MSCI WORLD UCITS ETF Ireland 0.35% 0.00% 0.00% 0.00%
HSBC S&P 500 UCITS ETF Ireland 0.09% 0.00% 0.00% 0.00%
iShares Russell 1000 Growth ETF Diane Hsiung United States 0.20% 0.00% 0.00% 0.00%
Neptune Investment Funds - Japan Opportunities Fund Chris Taylor England 0.00% 0.00% 0.00% 0.00%
Odey Investments Plc - Odey Allegra Developed Markets
Fund Odey Asset Management LLP Ireland 0.70% 20.00% 0.00% 0.00%
Pershing Square Holdings Ltd William J. Doyle Guernsey 1.50% 0.00% 0.00% 0.00%
Polar Capital Funds Plc - Japan Fund James Salter Ireland 1.00% 10.00% 0.00% 0.00%
Prusik Asian Equity Income Fund Tom Naughton Ireland 1.00% 10.00% 0.00% 0.00%
RAM Lux Systematic Funds - Emerging Markets Equities
Fund Maxime Botti Luxembourg 1.00% 15.00% 0.00% 0.00%
Schroder Asian Alpha Plus Fund Schroder Investment MGT Ltd Britain 0.75% 0.00% 0.00% 0.00%
SIG – Lyrical Fund Andrew Wellington Ireland 0.75% 0.00% 0.00% 0.00%
Somerset Emerging Markets Dividend Growth Fund England
Source JPX-Nikkei 400 UCITS ETF Assenagon Asset MGT S.A. Ireland 0.20% 0.00% 0.00% 0.00%
Thesis Unit Trust Management - TM Sanditon UK Fund England 0.65% 0.00%
Waverton Investment Funds Plc - Global Equity Wealth
Creation Fund
Waverton Investment
Management Ltd Ireland 0.75% 0.00% 0.00% 0.00%
The boards of directors of the above mentioned underlying Funds may elect to reduce, increase, waive or calculate differently these fees with respect to certain shareholders.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
124
Global Bond Fund
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost USD
Treasury Bill 0%, due 14/12/15 5,000,000 4,997,950
Pershing Square Holdings Ltd. 3,100,000 3,090,250
United States Treasury Note/Bond, 3.63%, due 15/02/44 2,500,000 2,958,203
UBS Group AG 2,000,000 2,085,000
Lloyds Bank PLC 1,425,000 2,060,906
Barclays PLC 1,600,000 1,590,000
SG Issuer SA 1,000,000 1,567,600
Santander Uk Group 7.37%, due 24/06/22 833,000 1,302,269
Nationwide Building Society, 6.88%, due 11/03/49 300,000 463,023
Paragon Group of Cos Plc/The 125,000 196,063
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
125
Global Bond Fund (continued)
Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds USD
United States Treasury Note/Bond, 3.63%, due 15/02/44 6,250,000 7,028,499
Treasury Bill 0%, due 14/12/15 5,000,000 4,999,702
Spain Government Bond, 5.15%, due 31/10/44 1,400,000 2,150,378
Mexican Bonos, 6.50%, due 10/06/21 250,000 1,581,428
Barclays Bank Plc, 4.75%, due 29/03/49 1,100,000 1,306,211
Santander Uk Group 7.37%, due 24/06/22 833,000 1,301,926
Cabot Financial Luxembourg SA, 6.50%, 01/04/21 750,000 1,126,138
Keystone Financing Plc, 9.50%, due 15/10/19 500,000 812,569
Marks & Spencer Plc, 6.13%, due 02/12/19 300,000 554,687
Marks & Spencer Plc, 6.25%, due 01/12/17 500,000 554,479
Verizon Communications, Inc., 4.50%, due 15/09/20 500,000 547,000
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
126
Global Equity Wealth Creation Fund
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost USD
GCP Student Living Plc 1,171,566 1,500,000
Alpha-Silvaris Glob Eqy-Mgbp 1,516 1,500,000
Alpha-Quan Multi Str-E Gbp 1,478 1,500,000
Gcp Student Living Plc-C Shs Digc Ln 1,500,000 1,500,000
Spinnaker Emerging Markets Macro Fund 15,000 1,500,000
Keynes Dynamic Beta Strategy Fund 15,000 1,500,000
JPM Multi-Asset Macro Fund 875,000 1,195,250
Neuberger Berman Global Bond Absolute Return Fund 95,700 966,667
Amedeo Air Four Plus Ltd. 700,000 700,000
Channel Islands Property Fund Ltd. 500,000 500,000
3i Infrastructure Plc 116,731 178,546
International Public Partnerships Ltd. 17,130 23
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
127
Global Equity Wealth Creation Fund (continued)
Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds USD
Gcp Student Living Plc-C Shs Digc Ln 1,500,000 1,500,000
GAM Star Fund Plc - Cat Bond Fund 94,862 1,189,024
Old Mutual Global Investors Series Plc - Old Mutual Global Equity
Absolute Return
696,990 1,045,694
JPmorgan Funds - Systematic Alpha 11,135 1,017,962
Jupiter Absolute Return Fund/United Kingdom 1,979,433 1,005,156
Morgan Stanley Investment Funds - Diversified Alpha Plus Fund 31,519 985,914
IFSL North Row Liquid Property Fund 937,987 982,072
Neuberger Berman Global Bond Absolute Return Fund 96,667 966,667
3i Infrastructure Plc 129,702 178,546
International Public Partnerships Ltd. - 23
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
128
Alternatives Fund
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost GBP
Alphabet, Inc. 123 75,077
Alphabet, Inc. 123 74,486
General Dynamics Corp. 400 57,946
PDC Energy, Inc. 980 56,255
Svenska Handelsbanken AB 3,210 54,952
Snap-on, Inc. 300 49,002
Konica Minolta, Inc. 3,800 46,525
Convergys Corp. 1,698 44,734
ANSYS, Inc. 500 44,570
Casey's General Stores, Inc. 420 44,205
Constellation Software, Inc./Canada 105 43,552
ON Semiconductor Corp. 3,300 43,499
Corning Inc. 2,100 43,240
Facebook, Inc. 415 39,233
Gilead Sciences, Inc. 325 38,449
At&T Inc 1,343 37,290
Entertainment One Ltd. 8,433 37,278
Allergan Plc 205 33,642
British American Tobacco Plc 615 33,194
UnitedHealth Group, Inc. 275 32,466
Renishaw Plc 750 27,306
United Technologies Corp. 230 26,921
VF Corp. 340 23,837
American Express Corp. 300 23,103
Omron Corp. 500 22,770
Johnson & Johnson 230 22,519
Priceline Group, Inc./The 20 22,458
Biogen, Inc. 55 22,185
Berkshire Hathaway, Inc. 160 22,142
CenturyLink, Inc. 750 22,009
Continental Resources, Inc. 600 21,827
Pentair Plc 350 21,807
Grifols SA 550 21,805
CRH Plc 780 21,777
Cummins, Inc. 160 21,773
BASF SE 250 21,743
MetLife, Inc. 400 21,683
Ralph Lauren Corp. 164 21,511
Wesfarmers Ltd. 680 21,487
Admiral Group Plc 950 21,229
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
129
Alternatives Fund (continued)
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost GBP
Baxalta, Inc. 660 21,153
Westpac Banking Corp. 700 17,336
TJX Cos, Inc./The 250 16,776
Legrand SA 290 16,407
Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds GBP
Google, Inc. 123 75,077
Google, Inc. 123 74,486
DIRECTV 710 57,525
Svenska Handelsbanken AB 1,070 54,952
Parker Hannifin Corp. 506 54,037
Raytheon Corp. 495 49,089
Intuit, Inc. 450 47,025
eBay, Inc. 720 44,472
At&T Inc 1,343 43,410
Bridgestone Corp. 1,000 35,732
Telefonaktiebolaget LM Ericsson 3,190 35,290
Noble Energy, Inc. 700 32,687
Open Text Corp. 730 31,286
Gemalto NV 340 29,016
International Business Machines Corp. 164 28,022
Tech Data Corp. 450 25,025
Western Digital Corp. 316 24,392
Oracle Corp. 550 22,012
Baxter International, Inc. - 21,153
Admiral Group Plc 860 19,385
Entertainment-Full Paid Rts Etof Ln 4,133 15,084
BHP Billiton Plc - 8,829
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
130
Alternatives Fund (continued)
Additional Portfolio Information (unaudited) The following table summarises the fees paid by the underlying investment Funds held by the Alternatives Fund during the half financial year as stated in the prospectus or
applicable information held by the relevant Fund.
Names Manager Domicile
Management
fee %
Performance
fee %
Subscription
fee %
Redemption
fee %
3i Infrastructure Plc Peter Sedgwick England 1.50% 0.00% 4.00% 0.00% Alpha UCITS SICAV - Quantmetrics Multi Strategy Fund Luxembourg 2.00% 20.00% 0.00% 0.00%
Alpha UCITS SICAV - Silvaris Global Equity Fund Luxembourg 1.25% 17.50% 0.00% 0.00%
CF Odey Absolute Return Fund Odey Asset Management Llp England 0.75% 0.00% 4.00% 0.00%
Channel Islands Property Fund Ltd. Tara Hutcheon Guam 06% of
gross nav 0.00% 0.00% 0.00%
FP Argonaut European Absolute Return Fund Argonaut Capital Partners LLP England 0.75% 20%% 5.25% 0.00%
GCP Infrastructure Investments Ltd. Gravis Capital Partners LLP England 1.00% 0.00% 0.00% 0.00%
Goldman Sachs Structured Investments SICAV - GS Equity Risk Premia Long/Short Port Luxembourg
0.35%
0.00%
0.00%
0.00%
HICL Infrastructure Co., Ltd. Fund InfraRed Capital Partners Guernsey 1.50% 6
mths 0.00% 0.00% 0.00%
JL Equity Market Neutral Sebastien Valeyre France 1.00% 20.00% 4.00% 0.00%
JPM Multi-Asset Macro Fund England 0.40%* 0.00% 0.00% 0.00%
Keynes Dynamic Beta Strategy Fund Ireland 0.75% 0.00% 0.00% 0.00% Lyxor Dimension IRL plc - Lyxor/Tiedemann Arbitrage Strategy Fund
Ireland 1.10% 20.00% 0.00% 0.00%
MontLake UCITS Platform Plc - Dunn WMA UCITS Fund William Dunn Ireland 0.80% 0.00% 0.00% 0.00%
Neuberger Berman Global Bond Absolute Return Fund Andrew Aurelius Johnson Ireland 0.50% 0.00% 0.00% 0.00%
Odey Investments Plc - Odey Odyssey Fund Odey Asset Management LLP Ireland 0.75% 20.00% 5.00% 0.00%
Spinnaker Emerging Markets Macro Fund Ireland 0.75% 10.00% 0.00% 0.00%
Standard Life Investments Global SICAV - Global Focused Strategies Fund
Standard Life Investments (Mutual Funds) Limited Luxembourg
0.75%
0.00%
0.00%
0.00%
Verrazzano Sicav - European Long-Short Fund Luxembourg 1.25% 0.00% 0.00% 0.00%
The boards of directors of the above mentioned underlying Funds may elect to reduce, increase, waive or calculate differently these fees with respect to certain shareholders.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
131
Cautious Income Fund
Major Purchases for the half financial year ended 31 October 2015 Shares or Principal Amount Cost GBP
iShares Core US Growth ETF 10,269 539,114
GCP Student Living Plc 390,522 500,000
Gcp Student Living Plc - C Shs Digc Ln 500,000 500,000
Source JPX-Nikkei 400 UCITS ETF USD Hedged 45,194 430,345
Doric Nimrod Air Two Ltd. 141,423 316,004
Channel Islands Property Fund Ltd. 300,000 300,000
Amedeo Air Four Plus Ltd. 300,000 300,000
SG Issuer SA 300,000 300,000
P2P Global Investments plc 25,852 271,927
MontLake UCITS Platform plc - Dunn WMA Institutional UCITS Fund 1,599 208,748
3i Infrastructure Plc 124,592 197,133
SGA Societe Generale Acceptance NV, 3.89% , due 10/02/20 170,000 153,935
RWC Funds - Global Enhanced Dividend Fund 1,498 145,312
FP Argonaut Funds - FP Argonaut European Enhanced Income Fund 75,165 109,583
JPM Multi-Asset Macro Fund 83,969 109,328
Vanguard Dividend Appreciation ETF 2,073 104,985
Waverton Investment Funds PLC - Waverton Sterling Bond Fund 10,989 104,879
WisdomTree Total Dividend Fund 2,258 104,836
Nationwide Building Society, 6.88%, due 11/03/49 104,000 103,948
Sequoia Economic Infrastructure Income Fund Ltd. 246,204 5,783
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
132
Cautious Income Fund (continued)
Major Sales for the half financial year ended 31 October 2015 Shares or Principal Amount Proceeds GBP
Gcp Student Living Plc - C Shs Digc Ln 500,000 500,000
Source JPX-Nikkei 400 UCITS ETF 5,553 428,450
Waverton Investment Funds PLC - Waverton Sterling Bond Fund 41,752 410,088
Guinness Asset Management Funds Plc - Global Equity Income Fund 26,884 351,573
IFSL North Row Liquid Property Fund 310,652 329,201
Amedeo Air Four Plus Ltd. 300,000 309,878
Doric Nimrod Air Two Ltd. 130,994 298,704
P2P Global Investments Plc 26,108 271,927
3i Infrastructure Plc 124,592 204,294
3i Infrastructure Plc 138,436 197,133
Premier Global Utilities Income Fund 160,140 164,592
JPmorgan Funds - Systematic Alpha 1,181 108,073
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Statements of Changes in Composition of Portfolio (unaudited) (continued)
133
Cautious Income Fund (continued)
Additional Portfolio Information The following table summarises the fees paid by the underlying investment Funds held by the Cautious Income Fund during the half financial year as stated in the prospectus or
applicable information held by the relevant Fund.
Names Manager Domicile
Management
fee %
Performance
fee %
Subscription
fee %
Redemption
fee %
Artemis Global Income Fund Jacob De Tusch-Lec Britain 0.75% 0.00% 1.00% 0.00%
BlackRock Global Funds – European Equity Income Fund Luxembourg 0.75% 0.00% 5.00% 0.00% CF Morant Wright Nippon Yield Fund Ranny Pahngli Britain 1.00% 0.00% 5.00% 0.00%
Channel Islands Property Fund Ltd. Tara Hutcheon Guam 0.6%of
GNA 0.00% 0.00% 0.00% FP Argonaut Funds - FP Argonaut European Enhanced Income Fund
Oliver Russ Britain 0.00% 0.00% 0.00% 0.00%
GCP Infrastructure Investments Ltd Gravis Capital Partners LLP Jersey 0.90% 0.00% 0.00% 0.00%
Goldman Sachs Structured Investments SICAV RBS Luxembourg 1.00% 0.00% 0.00% 0.00% iShares Core US Growth ETF United States 0.09% 0.00% 0.00% 0.00%
JPM Multi-Asset Macro Fund Britain 0.40%* 0.00% 0.00% 0.00% JPMorgan Fund ICVC - US Equity Income Fund Britain 0.75% 0.00% 0.00% 0.00% Lyxora Dimension IRL plc - Lyxor/Tiedemann Arbitrage Strategy Fund
Ireland 0.40% 0.00% 0.00% 0.00%
Martin Currie Pacific Trust Plc Andrew Graham Britain 0.75% 0.00% 0.00% 0.00%
MontLake UCITS Platform plc - Dunn WMA Institutional UCITS Fund William Dunn Ireland 0.80% 0.00% 0.00% 0.00%
RWC Funds - Global Enhanced Dividend Fund Luxembourg 0.80% 0.00% 0.00% 0.00% Schroder Asian Income Maximiser Fund Richard Sennitt Britain 0.75% 0.00% 0.00% 0.00%
Schroder European Alpha Income Fund James Sym Britain 0.75% 0.00% 0.00% 0.00%
Sequoia Economic Infrastructure Income Fund Ltd. Chris Gambrell Guernsey 0.06% 0.00% 0.00% 0.00% Somerset Emerging Markets Dividend Growth Fund Edward Lam Britain 1.00% 0.00% 5.00% 1.00%
Source JPX-Nikkei 400 UCITS ETF USD Hedged Assengon Asset MGT S.A. Ireland 0.20% 0.00% 0.00% 0.00% TB Wise Evenlode Income Fund Hugh Yarrow Britain 0.10% 0.00% 0.00% 0.00%
Vanguard Dividend Appreciation ETF Ryan E Ludt United States 0.75% 0.00% 0.00% 0.00% Waverton Investment Funds Plc – Waverton Sterling Bond Fund
Waverton Investment Management Ltd Ireland 0.75% 0.00% 0.00% 0.00%
WisdomTree Total Dividend Fund Karen Q. Wong United States 0.28% 0.00% 0.00% 0.00%
The boards of directors of the above mentioned underlying Funds may elect to reduce, increase, waive or calculate differently these fees with respect to certain
shareholders. *0% on cash, 0.5% bonds, 0.9% other investments quarterly then take 25% in shares lock up for 3 financial years.
Waverton Investment Funds Plc Half-Yearly Financial Statements (Unaudited)
Directors and Other Information
134
BOARD OF DIRECTORS
Mr. Hugh Grootenhuis (British) resigned 22 October 2015
Mr. John McClintock* (Irish)
Mr. Eanna McHugh* (Irish)
Mr. Paul McNaughton* (Irish)
Mr. Peter Troughton (British)
*Independent
REGISTERED OFFICE
1 North Wall Quay
Dublin 1
Ireland
INVESTMENT MANAGER, DISTRIBUTOR
AND PROMOTER
Waverton Investment Management Limited
16 Babmaes Street
London SW1Y 6AH
England
(with effect from 31 October 2015)
George‟s Quay House
43 Townsend Street
Dublin 2
Ireland
LEGAL ADVISERS IN ENGLAND
Berwin Leighton Paisner
Adelaide House
London Bridge
London EC4R 9HA
England
ADMINISTRATOR AND SHAREHOLDER
SERVICING AGENT
Citibank Europe plc
1 North Wall Quay
Dublin 1
Ireland
LEGAL ADVISERS IN IRELAND
Arthur Cox
Earlsfort Centre
Earlsfort Terrace
Dublin 2
Ireland
(with effect from 31 October 2015)
RBC Investor Services Ireland Limited
George‟s Quay House
43 Townsend Street
Dublin 2
Ireland
CUSTODIAN INDEPENDENT AUDITORS
Citibank International Limited, Ireland Branch
1 North Wall Quay
Dublin 1
Ireland
Grant Thomton
Chartered Accountants & Registered Auditors
24-26 City Quay
Dublin 2
Ireland
(with effect from 31 October 2015) COMPANY SECRETARY
RBC Investor Services Bank S.A., Dublin Branch Bradwell Limited
George‟s Quay House Arthur Cox Building
43 Townsend Street Earlsfort Centre
Dublin 2 Earlsfort Terrace
Ireland Dublin 2