VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC (Sub-fund VT Rossie House Portfolio Fund)
Interim Report and Financial Statements for the six months ended 30 June 2020 CONTENTS
Company Overview 1
Investment Manager's Review 3
Performance Record 5
Portfolio Statement 8
Summary of Material Portfolio Changes 9
Statement of the Authorised Corporate Director's (ACD's) Responsibilities 10
Statement of Total Return 11
Statement of Changes in Net Assets Attributable to Shareholders 11
Balance Sheet 12
Distribution Tables 13
Information for Investors 14
Corporate Directory 16
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 COMPANY OVERVIEW
Size of Company £10,947,082
Launch date 11 April 2014
Type of Company VT Rossie House Investment Management Funds ICVC is an investment company with variable capital under regulation 12 (Authorisation) of the Open Ended Investment Companies (OEIC) Regulations 2001, authorised by the FCA. The company is incorporated under registration number IC000991. The company is a 'Non-UCITS Retail Scheme' umbrella company comprising one sub-fund, VT Rossie House Portofolio Fund ("the Fund"). You as a shareholder are not liable for the debts of the company.
Sub-fund objective and policy The Sub-fund's objective is to achieve long term capital and income growth.
The Sub-fund will aim to meet its objectives by investing primarily, though not exclusively, in investment trusts and collective investment schemes that invest predominantly in equity securities. The Sub-fund may also have some direct exposure to bonds and other non-equity investments, including cash, gold and derivatives.
The Sub-fund can use derivatives for the purpose of meeting its investment objective and for efficient portfolio management (including hedging) ("EPM"). It is envisaged however that the Investment Manager will not make a significant use of derivatives in the ordinary course of investing the assets of the Sub-fund.
Authorised Corporate Director (ACD) Valu-Trac Investment Management Limited
Ex-distribution dates 30 June, 31 December
Distribution dates 31 August, 28 February
Individual Savings Account (ISA) The Sub-fund is a qualifying investment for inclusion in an ISA.
Minimum investment
Lump sum subscription: A Class = £250,000 B Class = £10,000
Top-up: A Class = £1,000 B Class = £1,000
Holding: A Class = £1,000 B Class = £1,000
Redemption: A Class = lower of £1,000 or total remaining holding B Class = lower of £1,000 or total remaining holding
Switching: A Class = £10,000 B Class = £10,000
Initial charges 9%
Redemption charges 3%
The ACD may waive the minimum levels (and initial charge) at its discretion.
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 1 COMPANY OVERVIEW (Continued)
ACD charges
The annual management charge is comprised of a fixed element which is retained by the ACD for its own account and a variable element which is paid by the ACD to the Investment Manager.
The fixed element, which is equal to £10,000 per annum, is taken from A Class and B Class Shares pro-rata to their net asset value.
The variable element in respect of the A Class Shares is nil.
The variable element in respect of the B Class Shares is equal to 0.8% per annum of the net asset value of the B Class Shares.
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 2 INVESTMENT MANAGER'S REVIEW
ROSSIE HOUSE PORTFOLIO FUND
Performance
In the first half of the year the B class net income units returned -4.5% to 30th June 2020 (A class net income units -4.2%). This compares to the MSCI PIMFA Balanced Index which fell -5.2%. To remind investors, the MSCI PIMFA Balanced Index is a blend of well-known equity and bond indices representing what is deemed a typical private client portfolio.
Activity
Turnover mainly resulted from flows in and out of the fund. A small reduction was made in CG Real Return Fund to maintain appropriate weightings in defensive assets. Somerset Emerging Markets Small Cap Fund was sold reluctantly. After satisfactory gains, Caledonia Investments was sold to reinvest in Mid Wynd International Investment Trust which seems to offer better growth prospects. The investment team have a fine track record and hold significant personal stakes in the trust. An addition was made to the existing holding of Artemis Alpha Trust. This remains at a big discount and appears to us to have an attractive portfolio of UK stocks. The legacy unquoted holdings are being reduced and we expect a re-rating over time. There is also an exit opportunity should that fail to materialise and investors want an exit.
Economic and Market Review
This has been a momentous half year. As the virus spread around the world, economies were actively shut down causing stock markets to crash. The speed and extent of the falls in the US were greater than the great stock market decline of 1929. At one point all asset classes were in free fall and even highest quality US Treasuries and gold were dumped to fund redemptions. As always seems to happen, we then saw governments and central banks undertake massive interventions to provide support to economies and stock markets. After the initial panic stage our defensive holdings began to do their job and by the end of the first quarter a little stability had started to return. A strong rebound in markets followed in the second quarter as a result of the simply enormous amount of financial support from the authorities. Economies on the other hand, have been unprecedentedly weak with only stuttering recovery possible whilst everything was “locked down”.
Portfolio Review
There has been noticeable divergence in performance between sectors and countries. Technology investments have been very strong, demonstrating the reliance we now have on some of the largest internet companies and probably speeding up the adoption of other technologies. The US equity market, which is heavily exposed to that sector, has performed well. In contrast, oil, banks, retail and travel sectors have understandably been very weak. The UK equity market has been a weak performer. It is quite heavily weighted in some of the poorest performing sectors, the yield support evaporated as dividends have been cut or passed and there has also been currency weakness.
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 3 INVESTMENT MANAGER'S REVIEW (Continued)
Our defensive investments have generally made very satisfactory gains. CG Real Return is up 2%, Trojan Fund gained 5%, Ruffer Investments 7% and Capital Gearing Trust was unchanged. Investors sought sanctuary in gold which propelled Gold Bullion Securities up 25%. Elsewhere, Monks Investment Trust has a growth oriented portfolio, including many technology stocks, and rose 10%. Findlay Park American Fund (+2%) made useful progress. Herald Investment Trust, which specialises in smaller technology companies also gained 5%. Last year at this time we bemoaned the poor performance of our social housing property trust, Civitas, which had moved to a wide discount. Our patience has been rewarded with a strong rebound in the price of 20% as well as a continuing very healthy dividend yield.
The fund’s UK holdings, Aberforth Smaller Companies Trust (-40%), Keystone Investment Trust (- 29%) and Artemis Alpha Trust (-19%) were all poor. RIT Capital Partners (-16%) and Overstone Global Equity Fund (15%) both disappointed. Asian and Emerging equity exposure were also unhelpful. Asia Dragon Trust (-4%) was respectable but Utilico Emerging Markets (-24%) offered no resilience even with a healthy maintained dividend.
Underlying income is likely to be affected though investment trusts are often able to smooth out the fluctuations by using accumulated reserves.
Outlook
The sheer scale of money printing, most especially in the US, is likely to provide support to markets. While interest rates are at rock bottom, while many bonds offer derisory or negative yields and property is a challenged asset class, shares look a “least bad” alternative. Investors will also hope that as economies come out of “lockdown” there will be a natural rebound and profitability should recover in many areas, even if not to pre pandemic levels. It is highly likely that there will be many companies and sectors where their futures are changed and their outlook will be uncertain at best, sometimes hopeless.
The longer-term outlook is more uncertain. Inflation is much more likely following this splurge of monetary growth. This has implications for bond yields, discount rates and equity valuations. At the risk of sounding like a cracked record, outstanding debt levels grow ever higher. At some stage quite soon it is likely that government spending will need to be restrained, public expectations will be disappointed and taxes will have to rise, or a combination of all three. We are relying on the underlying managers of the funds we own to steer their way through the difficult path ahead.
Rossie House Investment Management LLP Investment Manager to the Fund
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 4 PERFORMANCE RECORD
Financial Highlights
Class A Net Income GBP
Six months to 30 Year to 31 December Year to 31 December June 2020 2019 2018
Changes in net assets per unit GBp GBp GBp Operating net asset value per unit 144.2427 125.8150 134.2295 Return before operating charges (5.4563) 21.9250 (5.0272) Operating charges (note 1) (0.5349) (1.7540) (1.6123) Return after operating charges * (5.9912) 20.1710 (6.6395) Distribution on income units (0.9471) (1.7433) (1.7750) Closing net asset value per unit 137.3044 144.2427 125.8150
*after direct transactions costs of: 0.0214 0.0540 -
Performance Return after charges (4.15%) 16.03% (4.95%)
Other information Closing net asset value £1,124,669 £1,181,439 £1,026,665 Closing number of units 819,107 819,063 816,011 Operating charges (note 2) 0.38% 1.10% 1.24% Direct transaction costs 0.02% 0.04% -
Prices Highest unit price 146.99 145.67 139.04 Lowest unit price 109.13 125.82 125.70
Class B Net Income GBP Six months to 30 Year to 31 December Year to 31 December June 2020 2019 2018
Changes in net assets per unit GBp GBp GBp Operating net asset value per unit 137.0123 120.4682 129.5701 Return before operating charges (4.6328) 20.9164 (4.8551) Operating charges (note 1) (1.5748) (2.7100) (2.5504) Return after operating charges * (6.2076) 18.2064 (7.4055) Distribution on income units (0.8982) (1.6623) (1.6964) Closing net asset value per unit 129.9065 137.0123 120.4682
*after direct transactions costs of: 0.0315 0.0515 -
Performance Return after charges (4.53%) 15.11% (5.72%)
Other information Closing net asset value £871,079 £925,405 £888,589 Closing number of units 670,543 675,418 737,613 Operating charges (note 2) 1.18% 1.90% 2.04% Direct transaction costs 0.02% 0.04% -
Prices Highest unit price 139.56 138.38 133.56 Lowest unit price 103.49 120.47 120.37
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 5 2020 PERFORMANCE RECORD (Continued)
Financial Highlights (conitnued)
Class A Net Accumulation GBP Six months to 30 Year to 31 December Year to 31 December June 2020 2019 2018
Changes in net assets per unit GBp GBp GBp Operating net asset value per unit 139.1729 119.8962 126.1820 Return before operating charges (5.2681) 20.7016 (4.7601) Operating charges (note 1) (0.5179) (1.4249) (1.5257) Return after operating charges * (5.7860) 19.2767 (6.2858)
Closing net asset value per unit 133.3869 139.1729 119.8962 Retained distributions on accumulated units 0.9129 1.6665 1.6739
*after direct transactions costs of: 0.0207 0.0518 -
Performance Return after charges (4.16%) 16.08% (4.98%)
Other information Closing net asset value £8,121,512 £8,541,412 £7,664,762 Closing number of units 6,088,689 6,138,266 6,392,830 Operating charges (note 2) 0.38% 1.10% 1.24% Direct transaction costs 0.02% 0.04% -
Prices Highest unit price 141.82 139.63 131.43 Lowest unit price 105.29 119.60 111.82
Class B Net Accumulation GBP Six months to 30 Year to 31 December Year to 31 December June 2020 2019 2018
Changes in net assets per unit GBp GBp GBp Operating net asset value per unit 133.9438 116.3424 123.3676 Return before operating charges (4.5321) 19.9791 (4.5802) Operating charges (note 1) (1.5447) (2.3777) (2.4450) Return after operating charges * (6.0768) 17.6014 (7.0252)
Closing net asset value per unit 127.8670 133.9438 116.3424 Retained distributions on accumulated units 0.8772 1.6098 1.6235
*after direct transactions costs of: 0.0301 0.0501 -
Performance Return after charges (4.54%) 15.13% (5.69%)
Other information Closing net asset value £876,282 £818,425 £594,530 Closing number of units 685,307 611,021 511,018 Operating charges (note 2) 1.18% 1.90% 2.04% Direct transaction costs 0.02% 0.04% -
Prices Highest unit price 136.43 134.39 127.90 Lowest unit price 101.16 116.34 115.30
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 6 PERFORMANCE RECORD (Continued)
1. The operating charges per unit figure is calculated by applying the operating charges percentage to the average net asset valuation per share throughout the period. 2. The operating charges percentage is based on the expenses incurred during the period annualised, as a proportion of the average net asset value of the Sub-fund together with the ongoing charges included within the underlying Open Ended Investment Companies held within the fund's holdings.
Risk Profile
Based on past data, the Sub-fund is ranked a '4' on the synthetic risk and reward indicator scale (of 1 to 7) as described fully in the Key Investor Information Document. The Sub-fund is ranked '4' because monthly performance data indicates that it has experienced average rises and falls in market prices historically.
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 7 PORTFOLIO STATEMENT
As at 30 June 2020 (unaudited) % of total Holding Value £ net assets
FIXED INTEREST (31 December 2019: 5.90%) 3,300 CG Real Return 722,469 6.60 722,469 6.60
CAPITAL PRESERVATION (31 December 2019: 14.02%) 13,000 Capital Gearing Trust 570,050 5.21 175,000 Ruffer Investments 420,875 3.84 599,657 Trojan Fund (X Inc.) 675,214 6.17 1,666,139 15.22
UK (31 December 2019: 14.90%) 22,500 Aberforth UK Smaller Companies Trust 208,463 1.90 184,000 Artemis Alpha Trust 510,600 4.66 107,500 Keystone Investment Trust 269,825 2.46 80,000 Law Debenture 417,200 3.81 1,406,088 12.83
INTERNATIONAL (31 December 2019: 23.30%) 80,000 Mid Wynd International Investment Trust 498,400 4.55 104,400 Monks Investment Trust 1,104,552 10.09 4,000 Odey Allegra Developed Markets Fund 805,360 7.36 3,100 Overstone Global Equity Fund (A) 388,204 3.55 17,500 RIT Capital Partners 312,550 2.86 TOTAL INTERNATIONAL 3,109,066 28.41
US (31 December 2019: 6.06%) 6,700 Findlay Park American Fund (USD) 709,954 6.49 TOTAL US 709,954 6.49
GOLD (31 December 2019: 4.71%) 5,000 Gold Bullion Securities 673,972 6.16 673,972 6.16
JAPAN (31 December 2019: 3.76%) 108,000 LF Morant Wright Japan Fund (B Inc) 388,185 3.55 388,185 3.55
ASIA (31 December 2019: 3.60%) 39,791 Asia Dragon Trust 158,169 1.44 25,000 Scottish Oriental Smaller Companies Trust 206,250 1.88 364,419 3.32
EMERGING MARKETS (31 December 2019: 4.46%) 115,600 Utilico Emerging Markets Investment Trust 206,924 1.89 206,924 1.89
SPECIALIST (31 December 2019: 14.95%) 76,500 Hansa Trust Ord 121,253 1.11 33,000 Herald Investment Trust 511,500 4.67 14,000 North Atlantic Smaller Companies Investment Trust 397,600 3.63 1,030,353 9.41
PROPERTY (31 December 2019: 2.40%) 300,000 Civitas Social Housing 329,100 3.01 329,100 3.01
Portfolio of Investment (31 December 2019: 98.06%) 10,606,669 96.89
Net Other Assets (31 December 2019: 2.12%) 386,872 3.53
Adjustment to revalue from Mid to Bid Prices (31 December (46,459) (0.42) 2019: (0.18%)) 10,947,082 100.00
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 8 SUMMARY OF MATERIAL PORTFOLIO CHANGES
£ Total sales for the six months ended 30 June 2020 693,595
CG Real Return 34,295 PFS Somerset Emerging Markets Small Cap Fund B Accumulation 165,662 Caledonia Investments 493,638
£ Total purchases for the six months ended 30 June 2020 608,234
Artemis Alpha Trust 124,304 Mid Wynd International Investment Trust 483,930
The above transactions represent all of the sales and purchases during the period.
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 9 STATEMENT OF THE AUTHORISED CORPORATE DIRECTOR'S (ACD'S) RESPONSIBILITIES
The rules of the Financial Conduct Authority's Collective Investment Schemes Sourcebook require the Authorised Corporate Director to prepare financial statements for each accounting period which give a true and fair view of the financial position of the Company at the end of the financial period and its net revenues and net capital losses for the period. In preparing these financial statements the Authorised Corporate Director is required to:
> comply with the Prospectus, the Statement of Recommended Practice for Authorised Funds issued by the Investment Association in May 2014, the Instrument of Incorporation, generally accepted accounting principles and applicable accounting standards, subject to any material departures which are required to be disclosed and explained in the financial statements. > select suitable accounting policies and then apply them consistently. > make judgements and estimates that are reasonable and prudent. > prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in operation for the forseeable future.
The Authorised Corporate Director is required to keep proper accounting records and to manage the Company in accordance with the COLL regulations, the FCA's Investment Funds Sourcebook ("FUND"), the Instrument of Incorporation, and the Prospectus. The Authorised Corporate Director is responsible for taking reasonable steps for the prevention and detection of fraud and other irregularities.
DIRECTOR'S STATEMENT
In accordance with the requirements of the Financial Conduct Authority's Collective Investment Scheme's Sourcebook and FUND, we hereby certify the interim report.
Neil J. Smith MA BA CA
Valu-Trac Investment Management Limited Authorised Corporate Director
Date
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 10 STATEMENT OF TOTAL RETURN
For the six months ended 30 June 2020 (unaudited)
30.06.20 30.06.19 £ £ £ £ Income Net capital (losses)/gains (557,918) 884,246
Revenue 75,051 62,215
Expenses (26,329) (23,147)
Interest payable and similar charges 0 -
Net revenue before taxation 48,722 39,068
Taxation - -
Net revenue after taxation 48,722 39,068
Total return before distributions (509,196) 923,314
Finance costs (75,051) (62,125)
Changes in net assets attributable to shareholders from investment activities (584,247) 861,189
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS
For the six months ended 30 June 2020 (unaudited)
30.06.20 30.06.19 £ £
Opening net assets attributable to shareholders 11,443,543 10,143,027
Amounts receivable on creation of shares 350,546 347,607
Amounts payable on cancellation of shares (324,356) (329,231)
Retained accumulation distributions 61,596 52,072
Changes in net assets attributable to shareholders from (584,247) 861,189 investment activities (see above)
Closing net assets attributable to shareholders 10,947,082 11,074,664
The Investment Association SORP requires that comparatives are shown for the above report. As comparatives should be for the comparable interim period the net asset value at the end of the period will not agree to the net asset value at the start of the period. The company net asset value as at 31 December 2019 was £11,074,664.
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 11 BALANCE SHEET
As at 30 June 2020 (unaudited) 30.06.20 31.12.19 £ £ £ £
Assets Investment assets 10,560,209 11,203,647
Current assets Debtors 17,797 6,479 Cash and bank balances 394,628 264,237 Total current assets 412,425 270,716
Total assets 10,972,634 11,474,363
Current liabilities Distribution payable on income shares (13,780) (13,881) Other creditors (11,772) (16,939) Total current liabilities (25,552) (30,820)
Net assets attributable to shareholders 10,947,082 11,443,543
Accounting Policies
The accounting policies applied are consistent with those of the financial statements for the period ended 31 December 2019 and are described in those financial statements.
The financial statements have been prepared in accordance with the Statement of Recommended Practice ('SORP') for Authorised Funds issued by the Investment Association in May 2014.
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 12 DISTRIBUTION TABLES
Final distribution in pence per share Group 1: Shares purchased prior to 01 January 2020 Group 2 : Shares purchased on or after 01 January 2020 and on or before 30 June 2020
01 January 2020 to 30 June 2020
Distribution payable Distribution payable Distributon paid Class A Net Income Equalisation 28.08.2020 28.08.2020 30.08.2019
Group 1 0.9471p - 0.9471p 0.7939p
Group 2 0.6055p 0.3416p 0.9471p 0.7939p
Distribution payable Distribution payable Distributon paid Class B Net Income Equalisation 28.08.2020 28.08.2020 30.08.2019
Group 1 0.8982p - 0.8982p 0.7585p
Group 2 0.3718p 0.5264p 0.8982p 0.7585p Distribution payable Distribution payable Distributon paid Class A Net Accumulation Equalisation 28.08.2020 28.08.2020 30.08.2019
Group 1 0.9129p - 0.9129p 0.7566p
Group 2 0.0737p 0.8392p 0.9129p 0.7566p
Distribution payable Distribution payable Distributon paid Class B Net Accumulation Equalisation 28.08.2020 28.08.2020 30.08.2019
Group 1 0.8772p - 0.8772p 0.7322p
Group 2 0.4056p 0.4716p 0.8772p 0.7322p
EQUALISATION Equalisation applies only to shares purchased during the distribution period (Group 2 shares). It represents the accrued revenue included in the purchase price of the shares. It is returned with the distribution as a capital repayment. It is not liable to income tax but must be deducted from the cost of the shares for capital gains tax purposes.
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 13 INFORMATION FOR INVESTORS
Distribution Distributions of the revenue of the Company will be made to shareholders on or before 28 February each year and interim allocations of revenue on or before 31 August.
Taxation The company will pay no corporation tax on its profits for the period to 30 June 2020 and capital gains within the Company will not be taxed.
Individual shareholders HM Revenue and Customs changed the taxation of dividends on 6 April 2016. Dividend tax credits were abolished and replaced by a tax-free annual dividend allowance currently standing at £2,000. UK resident shareholders are now subject to new, higher rates of tax on dividend income in excess of the annual allowance. The actual rate depends on the individual's tax rate band.
Capital gains tax: Individual shareholders resident in the UK for tax purposes may be liable to capital gains tax on realisation of their shares as with other chargeable assets. However, presently each year there is a tax-free allowance for individuals. The first £12,300 (2020/21) are presently tax free for individuals. Gains in excess of that amount are charged at the rate of tax applicable to the individual tax payer.
Debts of the ICVC fund Unit holders of the ICVC are not liable for the debts of the ICVC.
Corporate shareholders Companies resident for tax purposes in the UK which hold shares should note that OEIC distributions are streamed into both franked and unfranked income. The unfranked income element will be treated as an annual payment which has been subject to income tax at a rate of 20% and will be liable to tax accordingly. On realisation of their shares, UK resident companies may be liable to pay corporation tax on any capital gains.
The above information on taxation is only a general summary, and shareholders should consult their own tax advisors in relation to their own circumstances. Shareholders should also note that the position as outlined may change to reflect future changes in tax legislation.
Issue and redemption of shares Valu-Trac Investment Management Limited is the ACD and Registrar. Valu-Trac Investment Management Limited will receive requests for the purchase or sale of shares at any time during normal business hours (8.30am to 5.30pm). Instructions may be given by email to ([email protected]) or by sending an application form to the Registrar. Application forms are available from the Registrar.
The price of shares will be determined by reference to a valuation of the Company's net assets at 4.30pm daily.
The ACD has the right to reject, on reasonable grounds relating to the circumstances of the applicant, any application for shares in whole or part, and in this event the ACD will return any money sent, or the balance of such monies, at the risk of the applicant. In addition the ACD may reject any application previously accepted in circumstances where the applicant has paid by cheque and that cheque subsequently fails to be cleared.
Any subscription monies remaining after a whole number of shares has been issued will not be returned to the applicant. Instead, smaller denomination shares will be issued in such circumstances.
A contract note giving details of the shares purchased and the price used will be issued by the Registrar by the end of the business day following the valuation point by reference to which the purchase price is determined. Settlement is due four business days after the date shown on the contract note and should be made to the ACD's dealing account.
Ownership of shares will be evidenced by an entry on the Company's Register of Shareholders. Certificates will not be issued. Statements in respect of periodic distributions of revenue will show the number of shares held by the recipient in respect of which the distribution is made. Individual statements of a shareholder's shares will also be issued at any time on request by the registered holder.
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 14 INFORMATION FOR INVESTORS (Continued)
Where shares are redeemed, payment will be made not later than the close of business on the fourth business day following the next valuation point after receipt by the ACD of a request for redemption. The minimum value of shares that a shareholder may hold is £1,000. The ACD may at its discretion accept subscriptions lower than the minimum amount.
The most recent issue and redemption prices are available from the ACD.
Alternative Investment Fund Managers Directive Under the EU's Alternative Investment Fund Managers Directve (AIFMD) 2013, the Company has been designated an Alternative Investment Fund. The ACD, Valu-Trac Investment Management Limited ("Valu-Trac") has been appointed as the Alternative Investment Fund Manager (AIFM). The AIFMD has had little impact on the operating costs or management of the VT Rossie House Portfolio Fund.
To comply with the AIFMD, information about the AIFM's remuneration policies and disclosures and conflict of interest policies are available from Valu-Trac Investment Management Limited on its website. The Company does not employ any staff directly from the AIFM, so there are no quantitative disclosures in this report.
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 15 CORPORATE DIRECTORY
Authorised Valu-Trac Investment Management Limited Corporate Mains of Orton Director, Fochabers Alternative Moray Investment Fund IV32 7QE Manager & Registrar Telephone: 01343 880344 Fax: 01343 880267 Email: [email protected]
Authorised and regulated by the Financial Conduct Authority Registered in England No 2428648
Director Valu-trac Investment Management Limited as ACD
Investment Rossie House Investment Management LLP Manager Level 13 Broadgate Tower 20 Primrose Street London EC2A 2EW
Authorised and regulated by the Financial Conduct Authority
Depositary NatWest Trustee and Depositary Services Limited Drummond House 2nd Floor, 1 Redheughs Avenue Edinburgh EH12 9RH
Authorised and regulated by the Financial Conduct Authority
Auditor Johnston Carmichael LLP Commerce House South Street Elgin IV30 1JE
VT ROSSIE HOUSE INVESTMENT MANAGEMENT FUNDS ICVC - VT ROSSIE HOUSE PORTFOLIO FUND Six months ended 30 June 2020 16