GVQ OPPORTUNITIES FUND

2017 interim review and Fund outlook Notice to recipients

This document is given to the recipient on condition that the recipient accepts that it is not a client of GVQ Investment Management Limited (“GVQ Investment Management” or “GVQIM”) and that hence, none of the client protections applicable to GVQIM’s clients are in fact in force or available, and GVQIM is not providing any financial or other advice to it. This document has been issued by GVQIM in the UK solely for the purposes of section 21 of the UK Financial Services and Markets Act 2000. GVQIM, whose registered office is at 12-13 St. James’s Place, London, SW1A 1NX, is registered in England: No 4493500 and is authorised and regulated by the UK Financial Conduct Authority. This document is confidential, is for informational purposes only, and is intended solely for the person to whom it is delivered. It may not be reproduced, photocopied or disseminated to any other person without the express prior written consent of GVQIM. GVQIM acts as the investment manager for the various funds included in this presentation. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, and it may be incomplete and is condensed. This document is not intended to provide, and should not be relied on for, accounting, legal or tax advice or investment recommendations. All opinions and estimates included in this document speak as of the date of this document and are subject to change without notice and reliance should not be placed on the information given herein. Although GVQIM has taken all reasonable care that the information contained in this document is accurate at the time of publication, no representation or warranty (including liability towards third-parties), expressed or implied, is made (or accepted) as to its accuracy or completeness or fitness for any purpose by GVQIM. Under no circumstances will GVQIM be liable for any direct, indirect, incidental, special or consequential loss or damages caused by reliance on this information or for the risks inherent in the financial markets. To the maximum extent permitted by applicable law and regulatory requirements, GVQIM specifically disclaims any liability for errors, inaccuracies or omissions in this document and for any loss or damage resulting from its use, whether caused by negligence or otherwise. Switzerland: The Prospectus and the Supplements of the Funds, the Key Investor Information Documents (“KIIDs”), the Memorandum and Articles of Association as well as the annual and interim reports of the Company are available only to Qualified Investors free of charge from the Swiss Representative. In respect of the Shares distributed in Switzerland to Qualified Investors, place of performance and jurisdiction is at the registered office of the Representative. Swiss Representative: Vescore Fondsleitung AG, Bahnhofstrasse 8, CH- 9001 St. Gallen. Swiss Paying Agent: Notenstein La Roche Private Bank Ltd, Bohl 17, CH-9004 St. Gallen Source & Copyright: CITYWIRE. Jamie Seaton is A rated by Citywire for his 3 year risk adjusted performance for the period 30/06/2014 – 30/06/2017 The Prospectus and key information document (KIID’s) for the GVQ UK Focus Fund [sub fund or GVQ Investment Funds (Dublin) Plc] are available in English on GVQIM’s website www.gvqim.com. Please see offering documents for full term and conditions.

1 2017 interim review and Fund outlook

Manager’s review1,2

Whilst twelve months is a spuriously short period of time over which to measure investment performance, given the magnitude of BREXIT, we think it is poignant to take stock. A reminder again of what we wrote a year ago in the immediate aftermath of the referendum:

“Following the BREXIT referendum and in a twist of irony, our view is that UK assets now have a big ‘for sale’ sign over the top of them, given the dramatic negative move in sterling vis-à-vis other major global currencies, particularly the US dollar, with cable trading at close to 30 year lows. Our view on the Fund’s annualised ‘cost of money’ remains unchanged, currently 20.0%. Historically this has been a good guide to future Fund returns. BREXIT clearly presents massive uncertainty to the domestic UK economy. The Fund is largely positioned away from this in overseas earning assets or strong domestic niches such as Sky. We remain of the belief the patient investor will be handsomely rewarded, and given the M&A angle, this is not a market one wants to be out of in the short term.”

The outcome to date:

• The Fund has delivered a positive total return of 25.2%, (I class shares), over the last year, outperforming the FTSE All Share index (the “index”) by 7.1%. • Three takeouts since BREXIT: Lavendon, e2v technologies and SKY; average bid premium of c. 50%. • One merger, Aberdeen Asset Management and Standard Life.

The index has had a very strong thematic over the last year, with commodity related sectors driving the market in eight out of the twelve periods, (based on rolling prior three month returns). This has provided a natural headwind to relative performance as the Fund has zero exposure to these sectors. Against this backdrop, it is pleasing to note the strong outperformance of the Fund over the twelve month period, driven in a large part, by its high exposure to stock specific ‘merger and acquisition’ (“M&A”) activity.

Specifically, H1 2017 was a solid period for the Fund. It delivered a positive total return of 6.4% (I class shares), slightly outperforming the index, which delivered a positive total return of 5.5% over the equivalent period. This included outperforming in April and June when the index delivered negative returns, building on the Manager’s strong history of relative capital preservation.

Following from this, and albeit a slightly abstract article, we were pleased to receive recognition in the recent Bank Holiday edition of 'The Times'. Based on data from Citywire's Research department and purely quantitative, covering all sectors and Managers available for sale in the UK market, (c.1800 in total), the article looked to identify which universities have produced the highest percentage of top performing fund managers; Southampton, my former university, came out top, as did GVQ's track record. The Manager was consistently rated by Citywire over the sample

Source: 1. GVQIM 2. Bloomberg 3. Northern Trust Past performance is no guarantee of future performance and the value of investments can go down as well as up 2 2017 interim review and Fund outlook

period, including an unbeaten, (in the UK All Companies space), 40 consecutive months as AAA. (For information purposes, Citywire ratings are produced monthly and are based on rolling 3 year risk adjusted returns).

Performance review1,2,3

As highlighted, H1 2017 was a solid period for the Fund, building on the strong returns witnessed by the Fund since the BREXIT referendum. NAV per share increased to £11.67 for the I class shares, delivering a total positive return of 6.4%, and NAV per share increased to £11.66 for the A class shares, delivering a total positive return of 6.3%. The Fund declared an interim dividend on the 30th June of £0.14 (I class shares) and £0.14 (A class shares); the annual equivalent total dividend yield for the I class shares was 2.0% and for the A class shares, 1.9%.

6 months to 1 year to 3 years to 5 years to Share Class 30th June 2017 30th June 2017 30th June 2017 30th June2017

I Class Shares 6.4% 25.2 - -

A Class Shares 6.3% 25.1 - -

FTSE All-Share 5.5% 18.1 - -

Performance over H1 was driven principally by the Fund’s high exposure to the ‘Asset Managers’. The Fund’s holdings in Jupiter Fund Management (“Jupiter”), and Aberdeen Asset Management (“Aberdeen”), delivered 178 basis points (“bps”) and 166bps of positive contribution respectively. Taking each in turn, Jupiter delivered a very solid set of FY results in February and followed this up with a very strong trading update in April. The latter showed record Q1 net inflows, materially ahead of market expectations, resulting in upgrades. We believe market expectations at the time were for net inflows of c. £1.6bn for FY 2017; the company delivered £1.3bn in Q1 2017 alone. On our analysis, the company offers a strong combination of cash flow and structural long term growth. Given these attributes, the fact that the company is regularly cited as a potential bid candidate is of no surprise to us.

Continuing the Asset Management and M&A themes, and as we drew attention to in your company’s FY 2016 accounts, (again included below for context), we wrote in our December 2016 Fund Factsheet re Aberdeen:

“The company’s share price has had another volatile year, as sentiment around emerging market equities in particular, has ebbed and flowed, coupled with some market commentators seeing new regulation and technology as the ‘death knell’ for the industry. This, however, is not the first time an industry has been subject to similar or worse threats, cue the Tobacco industry in the late 90’s: smoking and advertising bans, health warnings, e-cigarettes to name but a few challenges. Back then the sector found little support from the investment community, but despite these threats, the

Source: 1. GVQIM 2. Bloomberg 3. Northern Trust Past performance is no guarantee of future performance and the value of investments can go down as well as up 3 2017 interim review and Fund outlook

FTSE All Share Tobacco index has delivered a total return of 1046.4% since the turn of the millennium, an annualised 15.4% compared to the broader index’s 4.5% per annum. We would not be too quick to write off the Asset Management industry just yet, and like the Tobacco sector, expect industry consolidation to be a big driver of shareholder returns going forward.”

With this in mind, we noted with interest the proposed Aberdeen Standard Life deal announced over the period; very much in line with our thinking. Following discussions with management, we are, (clearly along with the market), enthused by the increased opportunities presented by the deal and are supportive of management and the transaction. The company also delivered a very strong set of H1 2017 results showing underlying pre-tax profits up 19.8%. Not bad, in our opinion, for a company that many allege to operate a broken business model in a sunset industry; we obviously disagree. Aberdeen represented the fourth Fund holding since BREXIT to be involved in M&A. Tyman and Apple also delivered strong H1 performances, adding a further 136bps and 114bps to the attribution respectively. Other notable performances included Equiniti Group, Clinigen Group, LVMH and Ascential; all delivered share price appreciation in excess of 20%.

There were no negative contributors greater than 100bps, with Shire and the AA, the only detractors of any significance. Shire delivered 92bps of negative attribution; double digit compound earnings growth, prodigious cash generation, on a forward price to earnings multiple of less than 10x all look very attractive to us. The AA detracted 70bps to performance. The company recently delivered an in line trading update. Historically the company’s share price has exhibited a negative correlation with its bond yield spread. This has broken down recently with the yield premium declining, but the shares underperforming. We view this as a positive lead indicator.

Portfolio review1,3

The Fund was 98.5% invested at period end with holdings in 26 companies; the balance held in cash. The top 10 holdings accounted for 60.3% of the Fund’s NAV. Large and Mid Caps represented 85.0%; the Fund continued to have strong liquidity with the average market capitalisation of the portfolio, £8.4bn at period end.

The Fund made two new investments since it reported its Finals: ITV and RPC Group (“RPC”). We have followed ITV closely ever since Wireless Group, (a former holding in the GVQ UK Focus Fund until it was taken over at a 70% premium last year), sold its TV assets to ITV in 2015. In addition to operating the largest commercial family of channels in the UK, in ITV Studios it also owns the UK’s largest production company, producing content for its own channels and also sells to other broadcasters such as the BBC, Channel 4, and Sky. The company has maintained its leading position as the only commercial broadcaster able to deliver mass audiences to advertisers; in 2015 it delivered 93% of all audiences over 3 million. Interestingly ITV’s share of the TV advertising market has actually increased since 2009, from 44.7%, to 46.1% in 2015. This is against a backdrop of stable television viewing over more than 10 years. In 2004, the average television viewing in the UK was 222 minutes per day; in 2015, 216 minutes per day. All this we believe points to a very robust business model, combined with an excellent management team who operate the company on a conservative basis; net debt to EBITDA is less than 1x. The

Source: 1. GVQIM 2. Bloomberg 3. Northern Trust Past performance is no guarantee of future performance and the value of investments can go down as well as up 4 2017 interim review and Fund outlook

company has also been a perennial takeover candidate itself, and recent bid activity in the sector, (e.g. Sky and Wireless Group), has done nothing but reinforce this rumour. Of note, Liberty Global, (ITV’s largest shareholder at just under 10%), last acquired stock in July 2015 at 271.6p. Currency adjusted for exchange rate moves between the USD and GBP, this equates to 337.5p in today’s terms, versus ITV’s current share price of 203.2p. Moreover, Mike Fries, CEO of Liberty Global, was recently quoted on record as saying: “One of the assets in Europe that we like are free-to-air broadcasters, because in Europe free -to-air broadcasters continue to dominate 70%, 80% of the viewership, they are the only real production engine in those countries, they have all the eyeballs, they have great reach. We've done a deal in Belgium, we've done a deal in Ireland, and those deals have worked out very well for us.” We believe ITV has a strong investment case on a standalone basis, and expect further consolidation in the sector.

Following a sharp de-rating this year, (and since disposal last year), the Fund re-initiated its investment in RPC, where we see strong medium term cash flow and growth potential, the latter augmented, we believe, by the on-going industry consolidation opportunity. The only disposal was e2v technologies. The company was subject to an approved bid approach by an overseas acquirer in Q4 2016 at a c.50% premium. The deal completed and the cash proceeds were received in H1.

Fund outlook and strategy1

We read with interest an article in the Financial Times in February on the highly topical ‘active’ versus ‘passive’ debate, specifically that active management has no more chance of success than gambling. With reference to the US market and based on data going back to the start of 2001, it points out that there are a small number of highly successful investors who have consistently beaten the S&P500. It goes on to explore any common characteristics that this group of investors may have? The findings include: little or any emphasis on macro forecasting; a focus on companies, not markets; in depth analysis of investments; concentrated investment style (i.e. small number of holdings); and typically long holding periods. These principles make intuitive sense to us and have been integral to the way we invest our client’s capital since GVQ Investment Management Limited was established in 2002. It concludes that the vast majority of the active management industry is hopelessly unable to practice these key principles and that this is the real crisis in active management, not the practice of active management itself; we agree.

As with most things in life, ‘the proof is in the pudding’ and we feel our approach, and our long held positive Strategy outlook which has been consistent and well documented, have both been more than vindicated; £1000 invested in the Fund’s sister product, the GVQ UK Focus Fund at the beginning of 2009 would be worth £4335 today on a total return basis (after all fees). For reference and by way of comparison, £1000 invested in the index, (on same terms), would be worth £2701; in a cash account, based on the Bank of England's indicative Bank Rate, £1043. The opportunity cost of holding banknotes, or conversely of not being exposed to equities, has clearly been, (and remains), enormous. It has been, and continues to be in our opinion, a golden age for equities.

Source: 1. GVQIM 2. Bloomberg 3. Northern Trust Past performance is no guarantee of future performance and the value of investments can go down as well as up 5 2017 interim review and Fund outlook

Clearly uncertainty persists, but then it always does. That is not to belittle some of the enormous challenges the world faces, not least close to home, those presented by BREXIT and a UK government in somewhat of disarray. If further evidence were needed for this, other than the shambolic campaign run by the Conservatives in the recent election, turn to Fund holding, Sky. It is over six months since Fox approached the company to take it over. A decision was initially delayed by the election. At the time of writing, a decision of indecision has been achieved thus far. Karen Bradley, the UK Culture Secretary in charge of the process, has said she is minded to refer the deal to Britain’s competition enforcement. This is mentioned for no other reason than to highlight if it has taken more than six months for the government to get to this point on a relatively simple, cross boarder media deal, it makes the timeframe of two years post the triggering of Article 50 to secure a BREXIT deal seem, well, somewhat implausible? As always we will continue to work with what is presented in front of us, paying more attention to what companies are saying, than macro conjecture, which as already alluded to earlier, often proves to be just that, and of little relevance.

M&A has been a key thematic for the Fund over the last twelve months. We expect this to continue. As we highlighted in our April Fund Factsheet, the then latest data from Prequin, showed Private Equity ‘dry powder’ (i.e. available for investment), stood at $842bn, a new industry record. In June it was reported that Apollo Global Management had raised $23.5bn and continues to fund raise; also CVC Capital Partners had closed the largest Europe-based fund in history, at €15.5bn. All of which, we see as very supportive to the Fund backdrop. A lot of work has been done over the last twelve months to the Fund with five new names added, and convictions backed. This, combined with operational over-delivery versus expectations from the portfolio in aggregate, means the Fund today has an annualised cost of money of 19.9%, broadly similar to twelve months ago when it was 20.0%. Our outlook; copy last years, paste here, no change.

Source: 1. GVQIM 2. Bloomberg 3. Northern Trust Past performance is no guarantee of future performance and the value of investments can go down as well as up 6 2017 interim review and Fund outlook

Annualised performance1,3 (%) Key Investment features: We aim to combine the best elements of public and private equity 30 investing as described in the chart below: 25.2 25 24.3 Main focus of most Main focus of most PUBLIC EQUITY INVESTORS PRIVATE EQUITY INVESTORS 19.8 20 18.1 15 Growth Corporate Activity 10 6.4 5.5 5 2.7 1.4 0 -5 -2.3 -2.5 Value De-gearing 1M 3M 6M 12M Inception*

Opportunities Fund FTSE All-Share Annual performance1,2

2016 2015 2014 2013 2012 2011 Investment features also include: Due diligence - thorough 360° appraisals, referencing execs, non- % Growth 9.6 N/A N/A N/A N/A N/A execs, customers, suppliers. Making use of strategic relationships with private equity groups. Quartile 3 N/A N/A N/A N/A N/A Investment strategy – a focus on catalysts “how will we make money?” and exit plans - “how will we realise the gain?” Fund facts GVQ UK Focus Fund information Use of industry experts – utilising an Advisory Panel of senior Structure industrialists including Stewart Binnie, Peter Williams, Chris Dublin listed Open Ended Investment Company (OEIC), UCITS V Rickard, Lindsay Dibden and Sir Clive Thompson. compliant, recognised by the FCA, with reporting status Incorporation date 14th October 2015 Fund size £160.8m Contact details For Fund subscriptions and redemptions please visit the No. of holdings 26 GVQIM website for an APPLICATION FORM or contact: Dividends Semi-annual distribution Liquidity Daily pricing and daily dealing Northern Trust Fund Servicing Centre Share price I Class A Class Tel +353 (0)1 434 5099 £11.67 £11.66 Fax +353 (0)1 434 5200

Minimal initial For all other investment queries please contact the investment £10m £1,000 Management fee* 0.65% p.a. 0.75% p.a. GVQ Investment Management marketing team: Reference codes Email: [email protected] Tel +44 (0)20 3824 4500 ISIN: IE00BYMY5574 IE00BYMY5C45 Fax +44 (0)20 3824 4539 SEDOL: BYMY557 BYMY5C4

Bloomberg: GVQOPPI GVQOPPA GVQ Investment Management Limited Additional information 12-13 St. James’s Place, London, SW1A 1NX *The fund may also pay fees and charges related to www.gvqim.com administration, custody and other reasonable expenses Management team

Fund Manager: Jamie Seaton Deputy Fund Manager: Jeff Harris Jamie was appointed CEO of GVQIM in May Jeff joined GVQ Investment Management in 2012 2014. He is Fund Manager of both the GVQ UK as an Analyst. He was appointed Deputy Fund Focus Fund (since April 2009) and GVQ Manager in May 2014 and fulfils this role on both Opportunities Fund (launched October 2015). GVQ’s Unconstrained Funds. Jeff is also Lead Prior to this, Jamie was an equities analyst for Manager of Strategic Equity Capital plc. Prior to GVQIM, and its first recruit following its formation. joining he worked at PricewaterhouseCoopers Previously he was an Investment Manager at within the Transaction Services Team on a number Rothschild Asset Management and worked at of private equity and corporate transactions. Jeff Goldman Sachs. Jamie holds the CFA and IMC holds the ACA qualification. qualifications.

Source: 1. GVQIM 2. Bloomberg 3. Northern Trust Past performance is no guarantee of future performance and the value of investments can go down as well as up 7