Quilter Investors Series I Annual Report and Financial Statements For the year ended 31 December 2018 Quilter Investors Series I

Contents Page

Company Information 3

Authorised Corporate Director’s report 6

Statement of the Authorised Corporate Director’s responsibilities 8

Remuneration Policy 9

Statement of the Depositary’s Responsibilities in Respect of the Scheme and Report of the Depositary to the Shareholders of Quilter Investors Series I 11

Independent Auditor's Report to the Shareholders of Quilter Investment Funds 12

Quilter Investors Global Best Ideas Fund 14

Investment Manager's review 14 Performance record 15 Portfolio statement 19 Statement of total return 22 Statement of change in net assets attributable to shareholders 22 Balance sheet 23 Notes to the financial statements 24 Distribution tables 34 Quilter Investors Global Dynamic Equity Fund 36

Investment Manager's review 36 Performance record 37 Portfolio statement 40 Statement of total return 58 Statement of change in net assets attributable to shareholders 58 Balance sheet 59 Notes to the financial statements 60 Distribution tables 70 Accounting Policies 71

Quilter Investors Series I

Quilter Investors Series I

Company Information

Authorised Corporate Director (“ACD”) Directors of the ACD

Quilter Investors Limited (formerly Old Mutual Investment Management Limited) M Dean Millennium Bridge House P Simpson 2 Lambeth Hill J Brescia (resigned 29 June 2018) London J Little (appointed 14 February 2018) – Non-Executive Director EC4V 4AJ C Turner (appointed 14 February 2018) – Non-Executive Director

Authorised and regulated by the Financial Conduct Authority.

Depositary Citibank Europe plc, UK Branch Citigroup Centre Canada Square, Canary Wharf London E14 5LB

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Legal Adviser Macfarlanes LLP 20 Cursitor Street London EC4A 1LT

Auditor KPMG LLP Saltire Court 20 Castle Terrace Edinburgh EH1 2EG

Administrator Citibank Europe plc 1, North Wall Quay Dublin 1 Ireland

Authorised by the Central Bank of Ireland (Central Bank) under the Investment Intermediaries Act 1995.

Registrar DST Financial Services International Ltd DST House Saint Nicholas Lane Basildon Essex SS15 5FS

(The register of shareholders can be inspected at the above address).

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Company Information (continued)

Investment Advisers

Quilter Investors Global Best Ideas Fund: First State Investment Management (UK) Limited 23 St Andrew Square Edinburgh EH2 1BB

Authorised and regulated by the Financial Conduct Authority.

Odey Asset Management LLP 12 Upper Grosvenor Street London W1K 2ND

Authorised and regulated by the Financial Conduct Authority.

Merian Global Investors (UK) Limited Millennium Bridge House 2 Lambeth Hill London EC4P 4WR

Authorised and regulated by the Financial Conduct Authority.

TimesSquare Capital Management, LLC 1177 Avenue of the Americas, 39th FL New York NY 10036-2714 USA

Regulated by the US Securities and Exchange Commission.

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Company Information (continued)

Investment Advisers (continued)

Quilter Investors Global Dynamic Equity Fund: Wells Capital Management Incorporated Brandywine Global Investment Management LLC 525 Market Street 2929 Arch Street San Francisco CA 94105 8th Floor Philadelphia, PA 19104 USA USA Regulated by the US Securities and Exchange Commission. Regulated by the US Securities and Exchange Commission.

DSM Capital Partners LLC 7111 Fairway Drive Suite 350 Palm Beach Gardens FL 33418 USA

Regulated by the US Securities and Exchange Commission.

From 19 December 2018 JPMorgan Asset Management (UK) Limited 25 Bank Street Canary Wharf London E14 5JP

Regulated by the US Securities and Exchange Commission.

Lapides Asset Management LLC 500 West Putnam Avenue 4th Floor Greenwich, CT 06830 USA

Regulated by the US Securities and Exchange Commission.

LSV Asset Management 155 North Wacker Drive Suite 4600 Chicago, IL 60606 USA

Regulated by the US Securities and Exchange Commission.

Merian Global Investors (UK) Limited Millennium Bridge House 2 Lambeth Hill London EC4P 4WR

Authorised and regulated by the Financial Conduct Authority.

Schroder Investment Management Limited 31 Gresham Street London EC2V 7QA

Authorised and regulated by the Financial Conduct Authority.

Wellington Management International Limited Cardinal Place 80 Victoria Street London SW1E 5JL

Authorised and regulated by the Financial Conduct Authority.

Quilter Investors Limited, a member of the Quilter plc Group of companies, is authorised and regulated by the Financial Conduct Authority. FCA Register number 208543. Registered Office: Millennium Bridge House, 2 Lambeth Hill, London, EC4V 4AJ, United Kingdom. Registered Number: 4227837 England. www.quilterinvestors.com

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Authorised Corporate Director’s Report

Directors’ report The Directors present the report and financial statements for the Quilter Investors Series I (“the Company”) for the year from 1 January 2018 to 31 December 2018.

Authorised status The Company is an Open–Ended Investment Company incorporated as an Investment Company with Variable Capital (“ICVC”) under Regulation 12 (authorisation) of the Open-Ended Investment Company (“OEIC”) Regulations. It is incorporated in England and Wales and authorised by the Financial Conduct Authority under the OEIC Regulations 2001 and the Collective Investment Schemes Sourcebook (“the Regulations”). It is a UCITS scheme for the purposes of that part of the Financial Conduct Authority’s Handbook of Rules and Guidance which deals with regulated collective investment schemes (the “Sourcebook”).

Liability

The Company is under a “Protected cell” regime. As such each sub-fund has a specific portfolio of securities to which that sub-fund’s assets and liabilities are attributable. So far as investors are concerned each sub-fund will be treated as a separate entity. The assets of a sub-fund shall not be used or made available to discharge (directly or indirectly) the liabilities of, or claims against, any other person or body, including the Company and any other sub-fund and shall not be available for any such purpose.

Investment Adviser changes

There were changes in the Investment Advisers of Quilter Investors Global Dynamic Equity Fund as noted below.

DSM Capital Partners LLC appointed 21 June 2018. Director changes Jonathan Little and Catherine Turner were appointed as Directors of the Company effective 14 February 2018.

Jessica Brescia resigned as a Director of the Company effective 29 June 2018. Old Mutual reorganisation On 19 December 2017, Quilter plc (previously Old Mutual Wealth Management Limited) announced it had agreed to sell its single strategy asset management business to the single strategy management team and funds managed by TA Associates, the global growth private equity firm. The transaction completed on 29 June 2018, and the business was formally renamed Merian Global Investors on 28 September 2018. On 25 April 2018, Old Mutual Investment Management Limited ceased to be part of the Old Mutual Global Investors Group and became a direct subsidiary of Quilter plc. On 27 April 2018, as part of its role as authorised fund manager, Old Mutual Investment Management Limited took over as investment manager of the Company. On 29 June 2018, Old Mutual Investment Management Limited changed its name to Quilter Investors Limited.

Additional information These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) for Authorised Funds issued by the Investment Management Association in May 2014. On 29 June 2018, the Company was renamed from Old Mutual Investments Funds to Quilter Investors Series I, and the sub-funds were renamed as below. The Company is an umbrella scheme which complies with the Financial Conduct Authority’s Collective Investment Schemes Sourcebook (COLL) and as at 31 December 2018 had two sub-funds (listed below). Additional sub-funds may be launched in the future.

New sub-fund name Old sub-fund name Launch date Quilter Investors Global Best Ideas Fund Old Mutual Global Best Ideas Fund 13 June 2006 Quilter Investors Global Dynamic Equity Fund Old Mutual Voyager Global Dynamic Equity Fund 27 March 2009

In accordance with the requirements of the Financial Services and Market Act 2000, we hereby certify these financial statements on behalf of the Authorised Corporate Director.

M Dean P Simpson For and on behalf of Quilter Investors Limited For and on behalf of Quilter Investors Limited Director Director

24 April 2019 24 April 2019

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Authorised Corporate Director’s Report (continued)

The purpose of this report is to provide details of the progress of the Company, and the sub-funds contained within. The report provides details of the performance and the portfolio of each of the sub-funds. Net asset value of sub-funds

31 December 2018 31 December 2017 Net asset Net asset value of Shares Net asset value of Shares Net asset

sub-fund by in value per sub-fund by in value per share class issue share share class issue share

Quilter Investors Global Best Ideas Fund – Accumulation ‘A’ £122,371,479 114,039,242 107.31p £148,944,779 129,407,062 115.10p – Accumulation ‘A’ EUR £3,138,602 2,885,471 108.77p £1,608,606 1,377,044 116.82p – Accumulation ‘A’ USD £898 1,000 89.76p £960 1,000 96.02p – Accumulation ‘R’ £19,057,530 17,013,111 112.02p £21,773,989 18,259,658 119.25p – Accumulation ‘U1’ £14,546,693 10,964,209 132.67p £18,088,215 12,816,512 141.13p – Accumulation ‘U2’ £90,195 67,296 134.03p £97,387 68,366 142.45p

Quilter Investors Global Dynamic Equity Fund – Accumulation ‘A’ £432,626,927 390,543,192 110.78p £556,454,126 456,907,632 121.79p – Accumulation ‘A’ EUR £906,439 795,064 114.01p £982,643 811,936 121.02p – Accumulation ‘A’ USD £2,346,340 2,121,853 110.58p £3,290,725 2,705,896 121.61p – Accumulation ‘R’ £8,230,027 7,006,184 117.47p £27,349,337 21,393,396 127.84p

Cross Holdings There were no cross holdings held by the sub-funds throughout the year to 31 December 2018.

Securities Financing Transactions Regulation Disclosure

None of the sub-funds in the Company currently undertake securities financing transactions (as defined in Article 3 of Regulation (EU) 2015/2365) or uses total return swaps.

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Statement of the Authorised Corporate Director’s responsibilities The Collective Investment Schemes sourcebook published by the FCA, (“the COLL Rules”) require the Authorised Corporate Director (“ACD”) to prepare financial statements for each annual and semi-annual accounting period which give a true and fair view of the financial position of the Company and of the net income and net gains or losses on the property of the Company for the year.

In preparing the financial statements the ACD is responsible for:

 selecting suitable accounting policies and then apply them consistently;

 making judgements and estimates that are reasonable and prudent;

 following UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland;

 complying with the disclosure requirements of the Statement of Recommended Practice for UK Authorised Funds issued by the Investment Management Association in May 2014;

 keeping proper accounting records which enable it to demonstrate that the financial statements as prepared comply with the above requirements;

 assessing the Company and its sub-funds’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern;

 using the going concern basis of accounting unless they either intend to liquidate the Company or its sub-funds or to cease operations, or have no realistic alternative but to do so;

 such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; and

 taking reasonable steps for the prevention and detection of fraud and irregularities.

The ACD is responsible for the management of the Company in accordance with its Instrument of Incorporation, the Prospectus and the COLL Rules.

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Remuneration Policy

Remuneration Disclosure Annual Report and Accounts Remuneration Policy Sub-funds under the Quilter Investors Series I umbrella are managed by Quilter Investors Limited (QIL), which is a wholly owned subsidiary of Quilter plc.

The board of QIL has established a Remuneration Policy encompassing the specific requirements of the UCITS Directive. This policy applies to QIL and the funds it manages.

Remuneration philosophy and alignment with risk management QIL’s remuneration philosophy is focused on pay for performance, where the performance is delivered within the risk appetite of the firm and the funds it manages. Remuneration is structured in a way to attract, motivate and retain the individuals needed to lead and develop the business. Remuneration structures are designed to support the delivery of QIL’s strategy and align the interests of executives, shareholders and customers.

Remuneration is comprised of fixed pay, variable pay (cash bonus with deferral and long-term incentive arrangements for eligible senior managers), non-contributory defined contribution pension and other market competitive benefits. A proportion of the annual bonus is deferred into approved funds or Quilter plc shares. QIL has taken a proportionality assessment which takes into account criteria including but not limited to: • the conservative and low volatility strategies of the funds it manages; • the low number of remuneration code staff and risk takers in QIL; and • the low number of investment strategies and styles and restricted portfolio of funds it manages.

The Remuneration Committee monitors the compensation process and ensures that proposals do not reward senior staff for excessive risk-taking.

The deferred element of the annual bonus vests in equal tranches on an annual basis over three years after award. During the deferral period the unvested bonus award remains at risk of forfeiture or reduction. This helps promote sound risk management and discourage risk taking that exceeds the firm’s level of tolerated risk or that of QIL’s client funds. Through the use of deferral into funds or shares the interests of staff are closely aligned to the long-term interests of investors and shareholders.

Long-term incentive arrangements are provided in the form of either a performance-based share award or an award Restricted Stock Units (RSUs), which are designed to align senior management reward to the success of the company in achieving its strategic priorities and growing the value of the business. Awards under the plan have a vesting period of three years and are subject to clawback for a further two years.

A copy of the Remuneration Policy is available upon request.

Financial and non-financial criteria Variable remuneration is based on a rounded assessment of firm and individual performance. The assessment of corporate performance covers both financial and non- financial performance including risk management.

Individual performance is assessed against the individual’s objectives and includes an employee’s compliance with controls and applicable company standards including the Quilter plc Code of Ethics.

Conflicts of interest The approach to and management of remuneration contain a number of measures to avoid conflicts of interest.  Guidance is provided to managers to assist them in determining appropriate remuneration recommendations for their staff. Remuneration proposals are subject to approval by department or functional heads. For senior employees these proposals are subject to moderation as part of a broader Quilter process. No employee may determine their own remuneration.  Employees engaged in control functions (e.g. Risk, Compliance and Internal Audit) have functional line management structures outside of the business units they oversee to ensure that remuneration decisions are not directly determined by the business units they oversee. Variable remuneration for control function employees is determined on the achievement of meeting their own functional objectives as set in their appraisal.  The Quilter Remuneration Committee signs off the remuneration of higher paid staff.  Personal hedging strategies which may undermine the risk alignment of variable remuneration are not permissible (e.g. entering into an arrangement with a third party under which payments will be linked to the person's remuneration or deferred consideration). Personal Account dealing policies are in place, which prohibit dealing on a personal basis or by any connected party, unless it is in compliance with the relevant policy(ies).

Employee remuneration disclosure The table below provides an overview of the following:

 Aggregate total remuneration of QIL entire staff; and  Aggregate total remuneration of QIL ‘Material Risk Takers (MRTs)’

The MRTs are those employees who are considered could have a material impact on the risk profile of QIL or the funds it manages. This broadly includes senior management, risk takers and control functions. For the purposes of this disclosure, ‘Identified Staff’ does not include employees of entities to which activities have been delegated.

Amounts shown reflect payments made during the financial reporting period of QIL.

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Remuneration Policy (continued)

Headcount Total Remuneration Proportion3

Quilter Investors Limited Staff1 82 13,148,921 272,255 of which Fixed remuneration 7,109,696 147,210 Variable remuneration 6,039,225 125,045 Carried interest Nil Nil

Quilter Investors Limited ‘Identified Staff’2 9 5,410,69 112,018

of which Senior Management 7 4,590,231 95,043 Other Identified Staff 2 819,838 16,975

1 Total remuneration costs represent the total headcount and costs associated for QIL as at the 31 December 2018. 2 The MRTs are those that have been either identified as a Qualitative Risk Taker or Quantitative Risk Taker for the QIL Business as approved by the Remuneration Committee (as at 31 December 2018). 3 This figure represents an apportioned amount of the total remuneration attributable to the sub-fund allocated on an AUM basis (as at 31 December 2018).

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Statement of the Depositary’s Responsibilities in Respect of the Scheme and Report of the Depositary to the Shareholders of Quilter Investors Series I for the year from 1 January 2018 to 31 December 2018 The Depositary is responsible for the safekeeping of all of the property of the Company (other than tangible moveable property) which is entrusted to it and for the collection of revenue that arises from that property. It is the duty of the Depositary to take reasonable care to ensure that the Company is managed by the Authorised Corporate Director in accordance with the Financial Conduct Authority’s Collective Investment Schemes Sourcebook (“the Sourcebook”), the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) (the OEIC Regulations), the Company’s Instrument of Incorporation and the Prospectus, as appropriate, concerning: the pricing of and dealing in shares in the Company; the application of income of the Company; and the investment and borrowing powers applicable to the Company.

Having carried out procedures and enquiries considered duly necessary to discharge our responsibilities as Depositary of the Company, based on information and explanations provided to us, we believe that, in all material respects, the Company, acting through the Authorised Corporate Director:

(i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Company’s shares and the application of the Company’s income in accordance with the Sourcebook, and, where applicable, the OEIC regulations, the Company’s Instrument of Incorporation and Prospectus;

(ii) has, observed the investment and borrowing powers and restrictions applicable to the Company; and

(iii) has, otherwise, ensured the proper operation of the Company.

Citibank Europe Plc, UK Branch Depositary 24 April 2019

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Independent Auditor’s Report to the Shareholders of the Quilter Investors Series I (“the Company”)

Opinion We have audited the financial statements of the Company for the year ended 31 December 2018 which comprise the Statements of Total Return, the Statements of Changes in Net Assets Attributable to Shareholders, the Balance Sheets, the Related Notes and Distribution Tables for each of the Company’s sub-funds listed on page 6 and the accounting policies set out on pages 71 to 72.

In our opinion the financial statements:

 give a true and fair view, in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, of the financial position of each of the sub-funds as at 31 December 2018 and of the net expense and the net capital losses on the property of each of the sub-funds for the year then ended; and

 have been properly prepared in accordance with the Instrument of Incorporation, the Statement of Recommended Practice relating to Authorised Funds, and the COLL Rules.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard.

We have received all the information and explanations which we consider necessary for the purposes of our audit and we believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

The impact of uncertainties due to the UK exiting the European Union on our audit

Uncertainties related to the effects of Brexit are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the Company’s future prospects and performance.

Brexit is one of the most significant economic events for the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the Company’s future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to Brexit.

Going concern The Authorised Corporate Director has prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or its sub-funds or to cease their operations, and as they have concluded that the Company and its sub-funds’ financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”). We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of at least a year from the date of approval of the financial statements. In our evaluation of the Authorised Corporate Director’s conclusions, we considered the inherent risks to the company’s and its sub-funds’ business model, including the impact of Brexit, and analysed how those risks might affect the company’s and its sub-funds’ financial resources or ability to continue operations over the going concern period. We have nothing to report in these respects. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the Company or its sub-funds will continue in operation. Other information The Authorised Corporate Director is responsible for the other information presented in the Annual Report together with the financial statements. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:  we have not identified material misstatements in the other information; and  in our opinion the information given in the Authorised Corporate Director’s Report is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where under the COLL Rules we are required to report to you if, in our opinion:  proper accounting records for the Company have not been kept; or  the financial statements are not in agreement with the accounting records. Authorised Corporate Director’s responsibilities As explained more fully in their statement set out on page 8 the Authorised Corporate Director is responsible for: the preparation of financial statements which give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Company and its sub-funds’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Company or its sub-funds or to cease operations, or have no realistic alternative but to do so.

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Independent Auditor’s Report to the Shareholders of the Quilter Investors Series I (“the Company”) (continued)

Auditor’s responsibilities Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities. The purpose of our audit work and to whom we owe our responsibilities This report is made solely to the Company’s shareholders, as a body, in accordance with Rule 4.5.12 of the Collective Investment Schemes sourcebook (‘the COLL Rules’) issued by the Financial Conduct Authority under the Open-Ended Investment Companies Regulations 2001. Our audit work has been undertaken so that we might state to the Company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders as a body, for our audit work, for this report, or for the opinions we have formed.

Grant Archer for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants Saltire Court 20 Castle Terrace Edinburgh EH1 2EG 24 April 2019

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Quilter Investors Global Best Ideas Fund

Quilter Investors Global Best Ideas Fund

Launch date 13 June 2006 Risk and Reward Profile IA Sector Global Investment Adviser First State Investment Management (UK) Limited Odey Asset Management LLP Merian Global Investors (UK) Limited TimesSquare Capital Management LLC

Net asset value £159,205,397

Objective The calculated risk and reward category, as shown above, uses a method of calculation derived from EU rules. It is based on the rate at which the returns of the The sub-fund aims to provide long term total return from capital growth and income sub-fund have moved up and down in the past (i.e. volatility) and is not a guide to through investment in global securities. the future risk and reward category of the sub-fund. The category shown is not a Policy target or guarantee and may shift over time. Even the lowest category 1 does not mean a risk-free investment. The seven-category scale is nonlinear, for example, 2 The sub-fund investment will be in a portfolio of global securities (including the UK), is not twice as risky as 1. either directly in transferable securities or through collective investment schemes. Investment will generally be directly into global equities, although the sub-fund may Sub-funds in category 5 have in the past shown moderately high volatility. With a invest up to 10% of its property in regulated collective investment schemes including sub-fund of category 5, you have a moderately high risk of losing money but your those that are managed or operated by the ACD or an associate of the ACD. chance for gains is also moderately high. The sub-fund may hold cash weightings. Investment risk - there is no guarantee that the sub-fund will achieve its objective. A capital loss of some or all of the amount invested may occur. For efficient portfolio management purposes only, investment may also be made into derivatives or forward transactions. The ACD considers that the use of derivatives Currency risk (EUR share class) - the sub-fund is denominated in British Pounds for this purpose is not likely to affect the volatility or risk profile of the sub-fund. but holds assets denominated in other currencies. This share class is denominated in Euro. The value of your shares may rise and fall as a result of exchange rate Investment Manager’s review movements between these currencies. After outperforming developed markets in the first quarter of the year, emerging Currency risk (GBP share class) - the sub-fund is denominated in British Pounds markets significantly underperformed them in the second with strong US and UK but holds assets denominated in other currencies. The value of your shares may rise equity market performance being especially notable. By the third quarter, the US and fall as a result of exchange rate movements between these currencies. equity market was pulling away from its peers – especially those in developing Currency risk (USD share class) - the sub-fund is denominated in British Pounds markets which by now had fallen into bear market territory. Meanwhile, European but holds assets denominated in other currencies. This share class is denominated markets were tossed to and fro by worries as to the mounting trade war, Brexit and in US Dollars. The value of your shares may rise and fall as a result of exchange the emergence of a new anti-European coalition after yet another divisive Italian rate movements between these currencies. election. Derivative risk - the sub-fund may use derivatives to reduce costs and/or the overall However, all it took was some ‘hawkish’ rhetoric from the US Federal Reserve in the risk of the sub-fund (i.e. Efficient Portfolio Management (EPM)). Derivatives involve a fourth quarter to trigger a major reversal in investor sentiment. A chain of violent level of risk, however, for EPM they should not increase the overall riskiness of the equity market sell-offs resulted culminating in the worst December for US equities sub-fund. Derivatives also involve counterparty risk where the institutions acting as since the Great Depression in 1931. All at once investors were contending with fears counterparty to derivatives may not meet their contractual obligations. of rising US interest rates, a sudden slowdown in eurozone business confidence, weaker Chinese growth and a host of geopolitical concerns from Brexit to political Capital erosion risk - the sub-fund takes its charges from the income of the sub- unrest in Italy and France and, of course, Mr Trump’s escalating trade conflict with fund in the first instance. The impact of sub-fund charges may be material on the China and his decision to partially close down the US government. value of any income you receive from your investment. There is potential for capital erosion if insufficient income is generated by the sub-fund to cover these charges. The portfolio suffered a difficult year delivering losses over the period even though it Capital erosion may have the effect of reducing the level of income generated. outperformed its benchmark by some margin. In relative terms, the portfolio’s UK For a more detailed explanation of risks, please refer to the "Risks" section of the and European allocations were among the biggest laggards from their benchmarks. prospectus.

After struggling with poor stock selection all year, the UK equity mandate managed by Dan Nickols at Merian Global Investors was the biggest detractor from performance in the last quarter as it incurred further losses in November due to poor stock selection.

Although the European mandate managed by ‘perma-bear’ Crispin Odey outperformed late in the period thanks to a merger in the gold market and exposure to Argentina’s private banking sector, relative gains in our European portfolio were mostly offset by the poor relative performance of the Quilter Investors European Best Ideas Fund over the year.

Meanwhile, the global equity mandate run by Crispin Odey was one of the strongest performers relative to its benchmark throughout the year thanks to strong stock selection, especially among energy and financial sector names. The relatively defensive US mandate, managed by Anthony Rosenthal at Times Square, was another consistent outperformer over the year with its underweight to the US tech heavyweights paying off in relative terms alongside strong individual stock selection in both the US and Canada.

The emerging market mandate run by First State also contributed to the fund’s relative outperformance thanks to the portfolio’s significant exposure to Indian equities.

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Performance Records

Comparative Tables

1 January 2018 to 1 January 2017 to 1 January 2016 to Accumulation 'A' 31 December 2018 31 December 2017 31 December 2016 p/share p/share p/share Change in net assets per share Opening net asset value per share 115.10 104.73 90.41 Return before operating charges* (5.20) 12.76 16.42 Operating charges** (2.59) (2.39) (2.10) Return after operating charges* (7.79) 10.37 14.32 Distributions - - - Retained distributions - - - Closing net asset value per share 107.31 115.10 104.73 * after direct transaction costs of*** 0.17 0.17 0.21 Performance Return after charges (6.77)% 9.90% 15.84% Other information Closing net asset value (£) 122,371,479 148,944,779 213,716,388 Closing number of shares 114,039,242 129,407,062 204,060,424 Operating charges**** 2.25% 2.18% 2.24% Direct transaction costs*** 0.15% 0.15% 0.22% Prices pence per share pence per share pence per share Highest share price 121.1 115.0 105.1 Lowest share price 106.1 104.5 78.96

1 January 2018 to 1 January 2017 to 1 January 2016 to Accumulation 'A' EUR 31 December 2018 31 December 2017 31 December 2016 p/share p/share p/share Change in net assets per share Opening net asset value per share 116.82 106.43 91.87 Return before operating charges* (5.43) 12.80 16.64 Operating charges** (2.62) (2.41) (2.08) Return after operating charges* (8.05) 10.39 14.56 Distributions - - - Retained distributions - - - Closing net asset value per share 108.77 116.82 106.43 * after direct transaction costs of*** 0.17 0.17 0.21 Performance Return after charges (6.89)% 9.76% 15.85% Other information Closing net asset value (£) 3,138,602 1,608,606 30,648,900 Closing number of shares 2,885,471 1,377,044 28,798,233 Operating charges**** 2.25% 2.18% 2.24% Direct transaction costs*** 0.15% 0.15% 0.22% Prices cents per share cents per share cents per share Highest share price 137.9 132.0 125.3 Lowest share price 119.4 119.9 102.7

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Comparative Tables (continued)

1 January 2018 to 1 January 2017 to 1 January 2016 to Accumulation 'A' USD† 31 December 2018 31 December 2017 31 December 2016 p/share p/share p/ share Change in net assets per share Opening net asset value per share 96.02 87.14 72.00 Return before operating charges* (4.10) 10.88 16.92 Operating charges** (2.16) (2.00) (1.78) Return after operating charges* (6.26) 8.88 15.14 Distributions - - (0.04) Retained distributions - - 0.04 Closing net asset value per share 89.76 96.02 87.14 * after direct transaction costs of*** 0.14 0.14 0.18 Performance Return after charges (6.52)% 10.19% 21.03% Other information Closing net asset value (£) 898 960 871 Closing number of shares 1,000 1,000 1,000 Operating charges**** 2.25% 2.18% 2.24% Direct transaction costs*** 0.15% 0.15% 0.22% Prices cents per share cents per share cents per share Highest share price 136.8 129.6 110.7 Lowest share price 112.3 106.8 99.77

1 January 2018 to 1 January 2017 to 1 January 2016 to Accumulation 'R' 31 December 2018 31 December 2017 31 December 2016 p/share p/share p/ share Change in net assets per share Opening net asset value per share 119.25 107.69 92.28 Return before operating charges* (5.44) 13.18 16.84 Operating charges** (1.79) (1.62) (1.43) Return after operating charges* (7.23) 11.56 15.41 Distributions (0.28) (0.09) (0.04) Retained distributions 0.28 0.09 0.04 Closing net asset value per share 112.02 119.25 107.69 * after direct transaction costs of*** 0.17 0.17 0.21 Performance Return after charges (6.06)% 10.73% 16.70% Other information Closing net asset value (£) 19,057,530 21,773,989 22,227,710 Closing number of shares 17,013,111 18,259,658 20,640,043 Operating charges**** 1.50% 1.43% 1.49% Direct transaction costs*** 0.15% 0.15% 0.22% Prices pence per share pence per share pence per share Highest share price 126.2 119.2 108.0 Lowest share price 110.8 107.4 80.66

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Comparative Tables (continued)

1 January 2018 to 1 January 2017 to 1 January 2016 to Accumulation 'U1' 31 December 2018 31 December 2017 31 December 2016 p/share p/share p/ share Change in net assets per share Opening net asset value per share 141.13 127.37 109.07 Return before operating charges* (6.44) 15.58 19.92 Operating charges** (2.02) (1.82) (1.62) Return after operating charges* (8.46) 13.76 18.30 Distributions (0.41) (0.21) (0.22) Retained distributions 0.41 0.21 0.22 Closing net asset value per share 132.67 141.13 127.37 * after direct transaction costs of*** 0.21 0.20 0.25 Performance Return after charges (5.99)% 10.80% 16.78% Other information Closing net asset value (£) 14,546,693 18,088,215 20,679,382 Closing number of shares 10,964,209 12,816,512 16,236,156 Operating charges**** 1.43% 1.36% 1.41% Direct transaction costs*** 0.15% 0.15% 0.22% Prices pence per share pence per share pence per share Highest share price 149.4 141.1 127.7 Lowest share price 131.2 127.0 95.35

1 January 2018 to 1 January 2017 to 1 January 2016 to Accumulation 'U2' 31 December 2018 31 December 2017 31 December 2016 p/share p/share p/share Change in net assets per share Opening net asset value per share 142.45 128.44 109.89 Return before operating charges* (6.49) 15.74 20.10 Operating charges** (1.93) (1.73) (1.55) Return after operating charges* (8.42) 14.01 18.55 Distributions (0.53) (0.29) (0.23) Retained distributions 0.53 0.29 0.23 Closing net asset value per shares 134.03 142.45 128.44 * after direct transaction costs of*** 0.21 0.21 0.26 Performance Return after charges (5.91)% 10.91% 16.88% Other information Closing net asset value (£) 90,195 97,387 109,820 Closing number of shares 67,296 68,366 85,500 Operating charges**** 1.35% 1.28% 1.34% Direct transaction costs*** 0.15% 0.15% 0.22% Prices pence per share pence per share pence per share Highest share price 150.9 142.4 128.8 Lowest share price 132.5 128.1 96.08

† Launched 1 March 2016. ** The operating charges include all costs borne by the sub-fund, except for direct transaction costs. Since the sub-fund invests less than 10% of net assets in underlying sub-funds there is no inclusion of a synthetic element for underlying sub-funds OCF. *** The direct transaction costs are made up of fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. They do not include any difference between the quoted bid and offer prices or internal administrative or holding costs. These costs arise as a result of transactions undertaken both for efficient portfolio management and the meeting of the sub-fund’s objectives. These costs exclude any effect of dilution adjustments used to offset the costs. **** The operating charges percentage is the ratio of the sub-fund's ongoing charges (excluding interest on borrowings) to the average net assets of the sub-fund. If the share class launched during the period the operating charges figures are annualised.

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Performance 6 months to 1 year to 3 years to 5 years to 31 December 2018 31 December 2018 31 December 2018 31 December 2018

Quilter Investors Global Best Ideas* (8.13)% (6.05)% 21.41% 30.63% GBI Custom (benchmark) (8.43)% (6.78)% 36.34% 45.53% IA Global (sector average) (8.17)% (5.72)% 33.06% 46.51% Quartile ranking 3 3 4 4 * Accumulation ‘R’ shares Data Source – Factset. Figures are calculated on a total return and single price basis, with net income reinvested into the sub-fund.

Percentage of Portfolio allocation Major holdings portfolio

North America Equities 32.47% Quilter Investors European Best Ideas Fund - U2 (GBP) United Kingdom Equities 18.87% Accumulation 8.29% Europe Equities 14.80% Global Payments 5.27% Asia Pacific (excluding Japan) Equities 7.81% Progressive 4.89% South America Equities 5.74% SLC Agricola 4.11% Japan Equities 4.42% Waste Connections (USA Listing) 3.36% Africa Equities 1.25% Gartner 3.31% Unilever 3.23% Net other assets 14.64% CBRE 3.23% Booz Allen Hamilton 2.97% Total 100.00% Randgold Resources 2.77%

Number of holdings 39 Asset allocation

Equities 85.36%

Net other assets 14.64%

Total 100.00%

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Portfolio statement as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £’000 %

United Kingdom 18.87% (31 December 2017 19.97%)

United Kingdom Equities 18.87% (31 December 2017 19.97%) 296,700 3i 2,301 1.44 638,637 Ascential 2,396 1.50 152,000 Ashtead 2,484 1.56 181,461 GVC Holdings 1,215 0.76 255,935 HomeServe 2,209 1.39 10,832,440 Pendragon 2,437 1.53 67,411 Randgold Resources 4,413 2.77 895,600 Rentokil Initial 2,988 1.88 353,939 SSP 2,296 1.44 231,700 St James's Place 2,176 1.37 124,668 Unilever 5,136 3.23 30,051 18.87

Overseas 66.49% (31 December 2017 69.00%)

Africa 1.25% (31 December 2017 1.12%)

South Africa Equities 1.25% (31 December 2017 1.12%) 133,406 Tiger Brands 1,987 1.25 1,987 1.25

Asia Pacific (Excluding Japan) 7.81% (31 December 2017 5.88%)

Hong Kong Equities 0.00% (31 December 2017 0.67%)

India Equities 5.40% (31 December 2017 2.94%) 113,977 Housing Development Finance 2,513 1.58 125,060 Tata Consultancy Services 2,655 1.67 2,395,922 Tata Power 2,060 1.29 3,254,774 Vodafone Idea 1,375 0.86 8,603 5.40

Singapore Equities 0.00% (31 December 2017 1.11%)

Taiwan Equities 2.41% (31 December 2017 1.16%) 2,157,000 Uni-President Enterprises 3,836 2.41 3,836 2.41

Japan 4.42% (31 December 2017 0.85%)

Japan Equities 4.42% (31 December 2017 0.85%) 781,600 Leopalace21 2,422 1.52 48,700 Shiseido 2,389 1.50 87,900 Unicharm 2,227 1.40 7,038 4.42

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Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £’000 %

Europe 14.80% (31 December 2017 18.93%)

Denmark Equities 0.00% (31 December 2017 0.90%)

France Equities 0.00% (31 December 2017 3.37%)

Germany Equities 1.74% (31 December 2017 1.34%) 36,198 Henkel 2,771 1.74 2,771 1.74

Ireland Equities 9.07% (31 December 2017 8.34%) 20,800 DCC 1,235 0.78 1,085,453 Quilter Investors European Best Ideas Fund - U2 (GBP) Accumulation 13,203 8.29 14,438 9.07

Italy Equities 0.00% (31 December 2017 1.76%)

Netherlands Equities 1.16% (31 December 2017 0.00%) 27,957 Heineken 1,840 1.16 1,840 1.16

Norway Equities 1.81% (31 December 2017 1.20%) 146,311 Aker 2,878 1.81 2,878 1.81

Spain Equities 0.00% (31 December 2017 1.39%)

Sweden Equities 1.02% (31 December 2017 0.00%) 240,087 Telefonaktiebolaget 1,632 1.02 1,632 1.02

Switzerland Equities 0.00% (31 December 2017 0.63%)

North America 32.47% (31 December 2017 38.99%)

Bermuda Equities 2.18% (31 December 2017 0.00%) 33,500 RenaissanceRe 3,465 2.18 3,465 2.18

Canada Equities 0.00% (31 December 2017 1.01%)

United States Equities 30.29% (31 December 2017 37.98%) 134,000 Booz Allen Hamilton 4,723 2.97 164,400 CBRE 5,135 3.23 34,000 Centene 3,002 1.89 10,400 FleetCor Technologies 1,494 0.94 53,600 Gartner 5,276 3.31 104,600 Global Payments 8,397 5.27 166,800 Progressive 7,791 4.89 32,200 SBA Communications Class A 4,097 2.57 67,500 TransUnion 2,953 1.86 92,700 Waste Connections (USA Listing) 5,354 3.36 48,222 30.29

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Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £’000 %

South America 5.74% (31 December 2017 3.23%)

Argentina Equities 1.63% (31 December 2017 0.00%) 77,778 Banco Macro 2,591 1.63 2,591 1.63

Brazil Equities 4.11% (31 December 2017 2.11%) 745,304 SLC Agricola 6,549 4.11 6,549 4.11

Chile Equities 0.00% (31 December 2017 1.12%)

Investment assets 135,901 85.36

Net other assets 23,304 14.64

Total net assets 159,205 100.00

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

All investments are in ordinary shares unless otherwise stated.

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Statement of total return for the year from 1 January 2018 to 31 December 2018 01.01.18 to 01.01.18 to 01.01.17 to 01.01.17 to 31.12.18 31.12.18 31.12.17 31.12.17 Note £'000 £'000 £'000 £'000

Income Net capital (losses)/gains 2 (10,486) 24,422 Revenue 3 3,316 3,656 Expenses 4 (3,725) (4,606) Interest payable and similar charges 5 (10) (18) Net expense before taxation (419) (968) Taxation 6 (199) (212) Net expense after taxation (618) (1,180) Total return before distributions (11,104) 23,242 Distributions 7 (105) (52) Change in net assets attributable to shareholders from investment activities (11,209) 23,190

Statement of change in net assets attributable to shareholders for the year from 1 January 2018 to 31 December 2018 01.01.18 to 01.01.18 to 01.01.17 to 01.01.17 to 31.12.18 31.12.18 31.12.17 31.12.17 £'000 £'000 £'000 £'000

Opening net assets attributable to shareholders 190,514 287,383

Amounts received on issue of shares 10,684 16,464 Amounts paid on cancellation of shares (30,911) (136,826) (20,227) (120,362) Dilution adjustment 29 259 Change in net assets attributable to shareholders from investment activities (11,209) 23,190 Retained distribution on accumulation shares 98 44

Closing net assets attributable to shareholders 159,205 190,514

The notes on pages 24 to 33 form an integral part of these financial statements.

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Balance sheet as at 31 December 2018 31.12.18 31.12.17 Note £'000 £'000 Assets Fixed assets Investments 135,901 169,493 Current assets Debtors 8 476 852 Cash and bank balances 9 23,249 20,688 Total assets 159,626 191,033

Liabilities Creditors Other creditors 10 (421) (519) Total liabilities (421) (519)

Net assets attributable to shareholders 159,205 190,514

The notes on pages 24 to 33 form an integral part of these financial statements.

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Notes to the financial statements for the year from 1 January 2018 to 31 December 2018

1 Accounting policies The applicable accounting policies adopted by the Quilter Investors Global Best Ideas Fund are included on pages 71 to 72.

2 Net capital (losses)/gains

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000 The net capital (losses)/gains on investments comprise: (Losses)/gains on non-derivative securities (11,486) 25,391 Gains on forward currency contracts 51 6 Gains/(losses) on currency contracts 1,013 (912) Handling charges (64) (63) Net capital gains on investments (losses)/gains (10,486) 24,422 3 Revenue

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

Authorised corporate director capitalised fee rebate 93 54 Bank interest 8 15 Non-taxable overseas dividends 2,316 2,703 UK dividends 899 884 Total revenue 3,316 3,656 4 Expenses

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director's periodic charge 2,426 3,121 Fixed expense* 210 283 2,636 3,404 Other expenses: Investment Adviser’s fees** 1,089 1,202 Total expenses 3,725 4,606

* These figures represent the fixed expense charge which covers all fees payable to the Depositary (including associates etc.), and other expenses. The Audit fee for the year, excluding VAT, was £6,500 (31 December 2017: £7,300).

** The Investment adviser’s fees are not included within the fixed expense charge. 5 Interest payable and similar charges

01.01.18 01.01.17 to 31.12.18 31.12.17 £'000 £'000

Bank overdraft interest 10 18 Total interest payable and similar charges 10 18

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

6 Taxation a) Analysis of tax charge in the year

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

Capital gains tax 51 - Overseas tax suffered 148 212 Total current tax charge for the year 199 212

Deferred tax charge for the year - - Total taxation for the year (see note 6(c)) 199 212 b) Factors affecting current tax charge for the year

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

The taxation assessed for the year is higher than the standard rate of corporation tax in the UK for an open ended investment company (20%). The differences are explained below:

Net expense before taxation (419) (968)

Corporation tax at 20% (31 December 2017: 20%) (84) (194)

Effects of: Capital gains tax 51 - Excess management expenses for which no relief taken 727 911 Revenue not subject to taxation – UK (180) (177) Non-taxable overseas dividends (463) (540) Overseas tax suffered 148 212 Total tax charge for the year (see note 6(a)) 199 212

OEICs are exempt from tax in capital gains, therefore, any capital return is not included in the above reconciliation. c) Movement in deferred tax liability

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000 Deferred tax liability at the start of the year - - Deferred tax charge for the year (see note 6(a)) - - Deferred tax liability at the end of the year - -

At 31 December 2018 the sub-fund had surplus management expenses of £74,729,157 (31 December 2017: £71,095,218), which can be utilised against profits chargeable to corporation tax in future periods. It is unlikely that the sub-fund will generate sufficient taxable profits in the future to utilise these expenses and, therefore, no deferred tax asset has been recognised.

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

7 Distributions The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: 01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

Interim – Accumulation shares (30 June) 94 1 Final – Accumulation shares (31 December) 4 43 98 44 Revenue deducted on cancellation of shares 10 8 Revenue received on issue of shares (3) - Distributions 105 52

Reconciliation of distributions: Net expense after taxation (618) (1,180) Capital gains tax 51 - Equalisation on conversions 1 1 Tax effect of fee rebates taken to capital 19 11 Authorised Corporate Director's capitalised fee rebates (93) (54) Revenue deficit reimbursed from capital 745 1,274 Distributions 105 52

Details of the interim and final distributions per share are set out in the tables on page 34. 8 Debtors

31.12.18 31.12.17 £'000 £'000

Accrued Authorised Corporate Director’s fee rebates 7 54 Accrued revenue 267 87 Amounts receivable for issue of shares 110 18 Overseas tax recoverable 92 88 Sales awaiting settlement - 605 Total debtors 476 852 9 Cash and bank balances

31.12.18 31.12.17 £'000 £'000

Cash and bank balances 23,249 20,688 Total cash and bank balances 23,249 20,688 10 Other creditors

31.12.18 31.12.17 £'000 £'000

Accrued Authorised Corporate Director's periodic charge 186 199 Accrued Investment Adviser's fees 90 152 Accrued expenses 21 22 Amounts payable for cancellation of shares 124 146 Total other creditors 421 519

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

11 Related party transactions Quilter Investors Limited, as ACD, is a related party, and acts as principal in respect of all transactions of shares in each sub-fund. The monies received on issue and paid on cancellation are disclosed in the Statement of change in net assets attributable to shareholders on page 22. Any amounts due to or from Quilter Investors Limited at the end of the accounting year in respect of transactions of shares in each sub-fund are disclosed in notes 8 and 10. Amounts paid to the ACD in respect of expenses are disclosed in note 4. The sub-fund held the following securities and received the noted income in related funds throughout the year to 31 December 2018:

Market Value Gross Income Earned Shares Security Name £’000 £’000

1,085,453 Quilter Investors European Best Ideas Fund - U2 (GBP) Accumulation 13,203 344

12 Derivatives and other financial instruments a) Financial instrument risk The sub-fund, in pursuing its objective, holds a number of financial instruments, which may comprise of the following: Equity shares and equity related shares. The sub-fund will also hold cash and other short term debtors and creditors that arise directly from its operations. In addition, the sub-fund may hold derivatives in the form of forward foreign exchange contracts and/or future contacts for the purpose of efficient portfolio management in accordance with the COLL Sourcebook. The financial instruments are held in line with the sub-fund's investment policy. Each Investment Adviser is responsible for monitoring the portfolio of his/her sub-fund in accordance with its investment objective and seeks to ensure that individual assets also meet a risk reward profile that is acceptable. The ACD has appointed specialist managers to manage the sub-fund, and continuously monitors this appointment. Adherence to the investment guidelines and the investment and borrowing powers as set out in the Scheme Particulars and in the rules of the Regulations also mitigates the risk of excessive exposure to any particular type of security or issuer. Further information on the investment portfolio is set out in the Investment Manager's review and the Portfolio statement of each sub-fund. The main risks arising from financial instruments are interest rate risk, foreign currency risk, credit risk, counterparty risk, liquidity risk and market risk which are summarised below.

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

12 Derivatives and other financial instruments (continued) b) Foreign currency risk A significant proportion of the sub-fund's financial assets and liabilities are invested overseas. As a result, movements in exchange rates may affect the market price of investments and, due to timing differences between the transaction dates of investment sales, purchases and income, and actual cash settlement, create currency exchange gains/losses. The Investment Manager does seek to reduce some of this risk by using forward currency contracts. The direct foreign currency exposure of the sub-fund as at 31 December 2018 (31 December 2017) was as follows:

Currency Net foreign currency assets/(liabilities) Net foreign currency assets/(liabilities) Monetary Non-monetary Monetary Non-monetary exposures* exposures Total exposures* exposures Total

31.12.18 31.12.18 31.12.18 31.12.17 31.12.17 31.12.17 £’000 £’000 £’000 £’000 £’000 £’000 Danish Krone 29 - 29 27 1,704 1,731 Euro 150 4,611 4,761 341 14,972 15,313 Hong Kong Dollar - - - 605 1,279 1,884 Indian Rupee - 8,603 8,603 - 5,606 5,606 Japanese Yen 63 7,038 7,101 4 1,616 1,620 Norwegian Krone - 2,878 2,878 - 2,287 2,287 Singapore Dollar - - - - 2,119 2,119 South African Rand - 1,987 1,987 - 2,134 2,134 Swedish Krona - 1,632 1,632 - - - Swiss Franc 12 - 12 7 1,197 1,204 Taiwan Dollar - 3,836 3,836 - 2,206 2,206 US Dollar 16,024 60,827 76,851 9,596 80,440 90,036 Total 16,278 91,412 107,690 10,580 115,560 126,140

* For the purpose of the above disclosure, monetary is taken to include only cash or near-cash items. Currency sensitivity A 5% increase in the value of the sub-fund’s foreign currency exposure would have the effect of increasing the return and net assets as at 31 December 2018 by £5,384,575 or 3.38% (31 December 2017: £6,307,042 or 3.31%). A 5% decrease would have an equal and opposite effect.

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

12 Derivatives and other financial instruments (continued) c) Interest rate risk Interest rate risk is the risk of movements in the value of financial instruments as a result of fluctuations in interest rates. The interest rate risk profile of the sub-fund’s financial assets and liabilities at 31 December 2018 (31 December 2017) was as follows:

Currency Variable rate Fixed rate Financial assets not financial assets financial asset carrying interest Total 31.12.18 £’000 £’000 £’000 £’000 Danish Krone - - 29 29 Euro 99 - 4,662 4,761 Hong Kong Dollar - - - - Indian Rupee - - 8,603 8,603 Japanese Yen - - 7,101 7,101 Norwegian Krone - - 2,878 2,878 Singapore Dollar - - - - South Africa Rand - - 1,987 1,987 Sterling 7,268 - 44,668 51,936 Swedish Krona - - 1,632 1,632 Swiss Franc - - 12 12 Taiwan Dollar - - 3,836 3,836 US Dollar 15,882 - 60,969 76,851 Total 23,249 - 136,377 159,626

Currency Variable rate Fixed rate Financial assets not financial assets financial asset carrying interest Total 31.12.17 £’000 £’000 £’000 £’000 Danish Krone - - 1,731 1,731 Euro 289 - 15,027 15,316 Hong Kong Dollar - - 1,884 1,884 Indian Rupee - - 5,606 5,606 Japanese Yen - - 1,620 1,620 Norwegian Krone - - 2,287 2,287 Singapore Dollar - - 2,119 2,119 South Africa Rand - - 2,134 2,134 Sterling 10,844 - 54,046 64,890 Swiss Franc 1 - 1,203 1,204 Taiwan Dollar - - 2,206 2,206 US Dollar 9,554 - 80,482 90,036 Total 20,688 - 170,345 191,033

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

12 Derivatives and other financial instruments (continued) c) Interest rate risk (continued)

Currency Variable rate Financial liabilities financial liabilities not carrying interest Total 31.12.18 £’000 £’000 £’000 Sterling - (421) (421) - (421) (421)

Currency Variable rate Financial liabilities financial liabilities not carrying interest Total 31.12.17 £’000 £’000 £’000 Euro - (3) (3) Sterling - (516) (516) - (519) (519)

Interest rate risk sensitivity In the event of changes in interest rates, there would be no material impact upon the assets of the sub-fund. d) Credit risk Credit risk is the risk of suffering loss due to another party not meeting its financial obligation. The risk is managed by the Investment Adviser who monitors the credit profile of financial instruments in accordance with the objective and policy of the sub-fund. Adherence to the investment guidelines and the investment and borrowing powers as set out in the Scheme Particulars and in the rules of the Regulations also mitigates the risk of excessive exposure to any particular type of security or issuer. Further information on the investment portfolio is set out in the Investment Manager’s review and the portfolio statement. e) Counterparty risk Certain transactions in financial instruments that a sub-fund enters into have the risk that the counterparty will not meet its financial obligations, i.e. the investment (purchase) or cash (sale) after the sub-fund has fulfilled its responsibilities. The sub-funds will only buy and sell investments through brokers which have been approved by the ACD and Investment Adviser as an acceptable counterparty. This is overseen by the Depositary to ensure that the exposure to any counterparty remains appropriate for investors. f) Liquidity risk Each sub-fund's assets comprise mainly of readily realisable securities which can be sold promptly to meet liquidity requirements. The main source of this risk comes from the obligation from shareholders to meet any cancellation of shares. Assets from a sub-fund may need to be sold to meet any redemption proceeds. As part of its operating duties the ACD regularly monitors the liquidity levels held on each sub-fund (cash and underlying securities) to ensure any redemptions can be readily met. Some investments may be less liquid than other securities and can be more sensitive to economic factors. The rules of the Regulations mitigate the risk of excessive exposure to assets which are not readily realisable. g) Market risk Market risk arises from uncertainty about future prices of financial instruments held. The main source of risk to the sub-fund is the potential movement in the value of financial instruments held as a result of price fluctuations. Stock market prices can move erratically and be unpredictably affected by diverse factors including political and economic events but also rumours and sentiment. The ACD adheres to the investment guidelines and borrowing powers set out within the Scheme Particulars and the COLL Sourcebook. In this way the ACD monitors and controls the exposure to risk from any type of security, sector or issuer. The sub-fund may also use derivative instruments to mitigate risk and reduce cost. Market price risk sensitivity A 5% market movement in the price of investments held by the sub-fund, with all other variables remaining constant, would result in an increase or decrease on net asset value of the sub-fund by approximately £6,795,034 or 4.27% (31 December 2017: £8,474,665 or 4.45%).

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

12 Derivatives and other financial instruments (continued) h) Fair value of financial assets and liabilities There is no material difference between the carrying value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair value.

Basis of valuation 31.12.18 31.12.17 Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000

Level 1: Quoted prices 122,698 - 153,605 - Level 2: Observable market data 13,203 - 15,888 - Level 3: Unobservable data - - - - Total 135,901 - 169,493 - i) Global exposure The Investment Adviser assesses the market risk of Quilter Investors Global Best Ideas Fund, including any derivative exposures, using a commitment approach. All exposure arising through the investment in financial derivative instruments will be covered by the underlying assets of the sub-fund. The sub-fund will use the commitment approach methodology to measure, monitor and manage the “leverage” effect produced by the use of financial derivative instruments and for the calculation of global exposure. In using the commitment approach for the calculation of global exposure, the sub-fund will convert each derivative position into the market value of an equivalent position in the underlying asset of that derivative. 13 Contingent liabilities The sub-fund had no contingent liabilities at the Balance sheet date (31 December 2017: £Nil).

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

14 Portfolio transaction costs

Analysis of total purchase costs Value Commissions Other costs 31.12.18 £'000 £'000 % £'000 %

Equities 118,100 58 0.05% 140 0.12% Collective Investment Schemes 15,248 - - - - Total 133,348 58 140 Total purchases including transaction costs 133,546

Value Commissions Other costs 31.12.17 £'000 £'000 % £'000 %

Equities 116,426 74 0.06% 128 0.11% Collective Investment Schemes 15,500 - - - - Corporate actions 600 - - - - Total 132,526 74 128 Total purchases including transaction costs 132,728

Analysis of total sale costs Value Commissions Other costs 31.12.18 £'000 £'000 % £'000 %

Equities 140,499 56 0.04% 8 0.01% Collective Investment Schemes 15,214 - - - - Total 155,713 56 8 Total sales including transaction costs 155,649

Value Commissions Other costs 31.12.17 £'000 £'000 % £'000 %

Equities 236,957 127 0.05% 21 0.01% Collective Investment Schemes 2,934 - - - - Total 239,891 127 21 Total sales including transaction costs 239,743

Transaction costs as a percentage of average Net Assets 31.12.18 31.12.17 Commissions: 0.07% 0.09% Taxes: 0.08% 0.06%

In the case of shares, transaction costs are paid by the sub-fund on each transaction, commissions relate to those paid to agents, advisers, brokers and dealers in the buying and selling of securities. Other costs include any additional fees that may be paid to agents, advisers, brokers and dealers as well as levies by regulatory agencies and security exchanges and any transfer taxes or duties. Unlike shares, other types of investments have no separately identifiable transaction costs, these costs form part of the dealing spread. Dealing spreads may vary considerably depending on the transaction value and market sentiment. At the balance sheet date the dealing spread was 0.06% (31 December 2017: 0.07%).

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

15 Shareholders’ funds The sub-fund currently has six share classes; Accumulation 'A', Accumulation 'A' EUR, Accumulation 'A' USD, Accumulation 'R', Accumulation 'U1' and Accumulation 'U2'. The net asset value of each share class, net asset value per share and the number of shares in issue are given in the information pages for each sub-fund. The share classes currently in issue and the Authorised Corporate Director's fee of each share class are shown below:

31.12.18 31.12.17 – Accumulation 'A' 1.50% 1.50% – Accumulation 'A' EUR 1.50% 1.50% – Accumulation 'A' USD 1.50% 1.50% – Accumulation 'R' 0.75% 0.75% – Accumulation 'U1' 0.675% 0.675% – Accumulation 'U2' 0.60% 0.60%

Share class movement reconciliation Opening Issued Redeemed Converted Closing

– Accumulation 'A' 129,407,062 4,157,738 (18,960,318) (565,240) 114,039,242 – Accumulation 'A' EUR 1,377,044 4,565,045 (3,056,618) - 2,885,471 – Accumulation 'A' USD 1,000 - - - 1,000 – Accumulation 'R' 18,259,658 308,302 (2,116,769) 561,920 17,013,111 – Accumulation 'U1' 12,816,512 177,181 (2,003,534) (25,950) 10,964,209 – Accumulation 'U2' 68,366 20,433 (31,828) 10,325 67,296

16 Post balance sheet date events There are no post Balance sheet events requiring disclosure.

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Distribution tables

Final distribution

Group 1: Shares purchased prior to 1 July 2018 Group 2 : Shares purchased from 1 July 2018 to 31 December 2018

Revenue Equalisation Distribution Distribution pence per share pence per share* paid 28.02.19 paid 28.02.18 pence per share pence per share Accumulation 'A' Shares Group 1 0.0000 - 0.0000 0.0000

Group 2 0.0000 0.0000 0.0000 0.0000

Accumulation 'A' EUR Shares Group 1 0.0000 - 0.0000 0.0000

Group 2 0.0000 0.0000 0.0000 0.0000

Accumulation 'A' USD Shares Group 1 0.0000 - 0.0000 0.0000

Group 2 0.0000 0.0000 0.0000 0.0000

Accumulation 'R' Shares Group 1 0.0000 - 0.0000 0.0945

Group 2 0.0000 0.0000 0.0000 0.0945

Accumulation 'U1' Shares Group 1 0.0281 - 0.0281 0.1965

Group 2 0.0000 0.0281 0.0281 0.1965

Accumulation 'U2' Shares Group 1 0.0889 - 0.0889 0.2542

Group 2 0.0000 0.0889 0.0889 0.2542

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Distribution tables (continued)

Interim distribution

Group 1: Shares purchased prior to 1 January 2018 Group 2 : Shares purchased from 1 January 2018 to 30 June 2018

Revenue Equalisation Distribution Distribution pence per share pence per share* paid 31.08.18 paid 31.08.17 pence per share pence per share Accumulation 'A' Shares Group 1 0.0000 - 0.0000 0.0000

Group 2 0.0000 0.0000 0.0000 0.0000

Accumulation 'A' EUR Shares Group 1 0.0000 - 0.0000 0.0000

Group 2 0.0000 0.0000 0.0000 0.0000

Accumulation 'A' USD Shares Group 1 0.0000 - 0.0000 0.0000

Group 2 0.0000 0.0000 0.0000 0.0000

Accumulation 'R' Shares Group 1 0.2783 - 0.2783 0.0000

Group 2 0.1789 0.0994 0.2783 0.0000

Accumulation 'U1' Shares Group 1 0.3819 - 0.3819 0.0087

Group 2 0.1846 0.1973 0.3819 0.0087

Accumulation 'U2' Shares Group 1 0.4361 - 0.4361 0.0381

Group 2 0.0297 0.4064 0.4361 0.0381

* Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

35 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Quilter Investors Global Dynamic Equity Fund

Launch date 27 March 2009 Towards the end of the period we introduced a new manager in the form of a JP Morgan US mid-cap mandate, which aims to diversify the high exposure that the IA Sector Global portfolio had to a mandate managed by Schroders. Investment Adviser Brandywine Global Investment Management LLC JPMorgan Asset Management (UK) Limited The UK exposure suffered throughout the year, partly from the ongoing Brexit DSM Capital Partners LLC uncertainty but also due to stock specifics, while the portfolio’s exposure to smaller Lapides Asset Management LLC companies was also a detractor particularly towards the end of the year as small and LSV Asset Management mid-caps underperformed both in the US and UK. Merian Global Investors (UK) Limited Schroder Investment Management Limited Risk and Reward Profile Wellington Management International Limited Wells Capital Management Incorporated

Net asset value £444,109,733

Objective The sub-fund aims to provide long term capital growth predominantly through investment in global equities. The calculated risk and reward category, as shown above, uses a method of Policy calculation derived from EU rules. It is based on the rate at which the returns of the sub-fund have moved up and down in the past (i.e. volatility) and is not a guide to The sub-fund will invest directly in securities or through collective investment the future risk and reward category of the sub-fund. The category shown is not a schemes in order to give exposure to a diversified portfolio predominantly investing target or guarantee and may shift over time. Even the lowest category 1 does not in global equities. The sub-fund may have exposure to cash, near cash, money mean a risk-free investment. The seven-category scale is nonlinear, for example, 2 market instruments, permitted deposits, and securities. is not twice as risky as 1. The sub-fund may invest up to 10% of its property in collective investment schemes Sub-funds in category 5 have in the past shown moderately high volatility. With a including those that are managed or operated by the ACD or an associate of the sub-fund of category 5, you have a moderately high risk of losing money but your ACD. chance for gains is also moderately high. The sub-fund may also invest directly in derivative instruments and forward Investment risk - there is no guarantee that the sub-fund will achieve its objective. transactions for the purposes of investment or efficient portfolio management. A capital loss of some or all of the amount invested may occur. Forward transactions may also be used with the aim of reducing currency risk for currency hedged share classes. The use of derivatives for this purpose may affect Currency risk (EUR share class) - the sub-fund is denominated in British Pounds the volatility or risk profile of the sub-fund although this is not the ACD’s intention. but holds assets denominated in other currencies. This share class is denominated in Euro. The value of your shares may rise and fall as a result of exchange rate Investment Manager’s review movements between these currencies. Market Review Currency risk (GBP share classes) - the sub-fund is denominated in British Pounds but holds assets denominated in other currencies. The value of your shares Uncertainty regarding both political and macroeconomic events has meant 2018 has may rise and fall as a result of exchange rate movements between these currencies. seen a marked increase in volatility, and as a result performance across asset Currency risk (USD share class) - the sub-fund is denominated in British Pounds classes has been somewhat unpredictable. This year has highlighted the but holds assets denominated in other currencies. This share class is denominated indiscriminate nature of the markets – research shows around 90% of asset classes in US Dollars. The value of your shares may rise and fall as a result of exchange have delivered negative returns, making 2018 one of the worst years since 1901. In rate movements between these currencies. addition, December has been cited as the worst month for US markets - which performed spectacularly well earlier in the year - since the Great Depression. Derivative risk - the sub-fund uses derivatives to generate returns and/or to reduce costs and the overall risk of the sub-fund. Using derivatives can involve a higher Equity markets suffered a torrid start to the year and ended the period in the same level of risk. A small movement in the price of an underlying investment may result in way. After UK and US stock markets both hit record highs in January, global equities a disproportionately large movement in the price of the derivative investment. suffered two major setbacks in the first three months of 2018. Thanks to a sudden Derivatives also involve counterparty risk where the institutions acting as hike in US inflation and fears of a more aggressive interest-rate posture in the US, counterparty to derivatives may not meet their contractual obligations. markets sold off sharply on concerns of the global economy overheating, while the second stumble occurred on the back of President Trump’s increased trade-war Capital erosion risk - the sub-fund takes its charges from the income of the sub- rhetoric and issues at Facebook that spread contagion fears across the technology fund in the first instance. The impact of sub-fund charges may be material on the sector. value of any income you receive from your investment. There is potential for capital erosion if insufficient income is generated by the sub-fund to cover these charges. In the second half of the period, markets recovered strongly, driven by the US as Capital erosion may have the effect of reducing the level of income generated. technology stocks recovered and overall strong corporate earnings helped push For a more detailed explanation of risks, please refer to the "Risks" section of the markets higher, with the S&P 500 index reaching a record bull run in August. prospectus. However, by October markets became choppy once again and the final months of the year, particularly December, saw most markets end the period on a downwards note, with only emerging markets managing to rally somewhat.

In our view, the market moves we’ve witnessed this year have been outsized relative to the fundamentals, and have been somewhat inconsistent in its reactions to things such as economic data points and central bank policy actions. While it has affected the portfolio, these market dislocations also provide us with new and interesting opportunities to strengthen our diversification.

Performance review

The first half of the year saw a positive performance as strong performance from US equities offset losses from emerging markets and Europe. US manager selection has been something of a challenge in the past, partly because we have not had much exposure to technology or growth names that have outperformed. We sought to address that with the addition of manager DSM, which we added to throughout the year.

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Performance Records

Comparative Tables 1 January 2018 to 1 January 2017 to 1 January 2016 to Accumulation 'A' 31 December 2018 31 December 2017 31 December 2016 p/share p/share p/share Change in net assets per share Opening net asset value per share 121.79 108.96 89.80 Return before operating charges* (8.59) 15.15 21.03 Operating charges** (2.42) (2.32) (1.87) Return after operating charges* (11.01) 12.83 19.16 Distributions (0.01) - (0.19) Retained distributions 0.01 - 0.19 Closing net asset value per share 110.78 121.79 108.96 * after direct transaction costs of*** 0.08 0.14 0.25 Performance Return after charges (9.04)% 11.77% 21.34% Other information Closing net asset value (£) 432,626,927 556,454,126 729,932,218 Closing number of shares 390,543,192 456,907,632 669,899,662 Operating charges**** 2.01% 2.00% 1.97% Direct transaction costs*** 0.07% 0.12% 0.27% Prices pence per share pence per share pence per share Highest share price 128.1 122.1 109.7 Lowest share price 109.2 108.8 78.12

1 January 2018 to 1 January 2017 to 1 January 2016 to Accumulation 'A' EUR 31 December 2018 31 December 2017 31 December 2016 p/share p/share p/share Change in net assets per share Opening net asset value per share 121.02 108.27 89.43 Return before operating charges* (4.58) 15.06 20.56 Operating charges** (2.43) (2.31) (1.72) Return after operating charges* (7.01) 12.75 18.84 Distributions (0.02) - (0.19) Retained distributions 0.02 - 0.19 Closing net asset value per share 114.01 121.02 108.27 * after direct transaction costs of*** 0.08 0.14 0.23 Performance Return after charges (5.79)% 11.78% 21.07% Other information Closing net asset value (£) 906,439 982,643 888,143 Closing number of shares 795,064 811,936 820,330 Operating charges**** 2.01% 2.00% 1.98% Direct transaction costs*** 0.07% 0.12% 0.27% Prices cents per share cents per share cents per share Highest share price 146.2 137.3 128.3 Lowest share price 124.8 125.0 100.3

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Comparative Tables (continued)

1 January 2018 to 1 January 2017 to 1 January 2016 to Accumulation 'A' USD 31 December 2018 31 December 2017 31 December 2016 p/share p/share p/share Change in net assets per share Opening net asset value per share 121.61 109.04 89.75 Return before operating charges* (8.66) 14.90 21.09 Operating charges** (2.37) (2.33) (1.80) Return after operating charges* (11.03) 12.57 19.29 Distributions (0.01) - (0.20) Retained distributions 0.01 - 0.20 Closing net asset value per share 110.58 121.61 109.04 * after direct transaction costs of*** 0.08 0.14 0.24 Performance Return after charges (9.07)% 11.53% 21.49% Other information Closing net asset value (£) 2,346,340 3,290,725 786,462 Closing number of shares 2,121,853 2,705,896 721,243 Operating charges**** 2.01% 2.00% 1.98% Direct transaction costs*** 0.07% 0.12% 0.27% Prices cents per share cents per share cents per share Highest share price 172.9 137.3 135.6 Lowest Share price 140.1 133.8 113.5

1 January 2018 to 1 January 2017 to 1 January 2016 to Accumulation 'R' 31 December 2018 31 December 2017 31 December 2016 p/share p/share p/share Change in net assets per share Opening net asset value per share 127.84 113.25 92.41 Return before operating charges* (9.09) 15.81 21.83 Operating charges** (1.28) (1.22) (0.99) Return after operating charges* (10.37) 14.59 20.84 Distributions (1.02) (0.85) (0.90) Retained distributions 1.02 0.85 0.90 Closing net asset value per shares 117.47 127.84 113.25 * after direct transaction costs of*** 0.08 0.15 0.27 Performance Return after charges (8.11)% 12.88% 22.55% Other information Closing net asset value (£) 8,230,027 27,349,337 21,396,253 Closing number of shares 7,006,184 21,393,396 18,893,549 Operating charges**** 1.01% 1.00% 0.97% Direct transaction costs*** 0.07% 0.12% 0.27% Prices pence per share pence per share pence per share Highest share price 135.4 128.1 114.0 Lowest share price 115.8 113.1 80.49

** The operating charges include all costs borne by the sub-fund, except for direct transaction costs. Since the sub-fund invests less than 10% of net assets in underlying sub-funds there is no inclusion of a synthetic element for underlying sub-funds OCF. *** The direct transaction costs are made up of fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. They do not include any difference between the quoted bid and offer prices or internal administrative or holding costs. These costs arise as a result of transactions undertaken both for efficient portfolio management and the meeting of the sub-fund’s objectives. These costs exclude any effect of dilution adjustments used to offset the costs. **** The operating charges percentage is the ratio of the sub-fund's ongoing charges (excluding interest on borrowings) to the average net assets of the sub-fund.

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Performance 6 months to 1 year to 3 years to 5 years to 31 December 2018 31 December 2018 31 December 2018 31 December 2018

Quilter Investors Global Dynamic Equity* (8.36)% (8.14)% 27.04% 25.95% GDE Custom (benchmark) (5.69)% (3.79)% 39.72% 49.14% IA Global (sector average) (8.17)% (5.72)% 33.06% 46.51% Quartile ranking 3 3 4 4 * Accumulation ‘R’ shares Data Source – Factset. Figures are calculated on a total return and single price basis, with net income reinvested into the sub-fund.

Percentage of Portfolio allocation Major holdings portfolio

North America 53.51% JPMorgan Fund ICVC - Europe Dynamic Ex-UK Fund 5.71% Asia Pacific (excluding Japan) 14.82% Alibaba ADR 1.00% United Kingdom 11.12% Facebook 0.92% Europe 9.90% Taiwan Semiconductor Manufacturing 0.90% Japan 7.46% Microsoft 0.82% South America 0.98% Samsung Electronics 0.78% Africa 0.39% Berkshire Hathaway 0.74%

AIA 0.71% Net other assets 1.82% Alphabet 'A' 0.71% American Tower 0.69% Total 100.00% Number of holdings 717

Asset allocation

Equities 98.18%

Net other assets 1.82%

Total 100.00%

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Portfolio statement as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

United Kingdom 11.12% (31 December 2017 11.18%)

United Kingdom Equities 11.12% (31 December 2017 11.18%)

Automobiles & Parts 0.02% (31 December 2017 0.00%) 8,067 Aston Martin Lagonda Global 99 0.02 99 0.02

Banks 0.52% (31 December 2017 0.61%) 327,488 Barclays 490 0.11 71,600 HSBC (HK Listing) 464 0.11 130,956 HSBC (UK Listing) 844 0.19 967,510 Lloyds Banking 499 0.11 2,297 0.52

Beverages 0.03% (31 December 2017 0.00%) 6,063 Fevertree Drinks 133 0.03 133 0.03

Chemicals 0.05% (31 December 2017 0.00%) 61,116 Synthomer 218 0.05 218 0.05

Collective Investment Schemes 5.71% (31 December 2017 5.48%) 28,687,146 JPMorgan Fund ICVC - Europe Dynamic Ex-UK Fund 25,377 5.71 25,377 5.71

Construction & Materials 0.05% (31 December 2017 0.10%) 141,689 Melrose Industries 230 0.05 230 0.05

Electricity 0.00% (31 December 2017 0.06%)

Financial Services 0.21% (31 December 2017 0.09%) 37,897 3i 294 0.07 3,348 London Stock Exchange 135 0.03 37,668 OneSavings Bank 131 0.03 332,757 Sherborne Investors 233 0.05 41,346 TP ICAP 124 0.03 917 0.21

Fixed Line Telecommunications 0.04% (31 December 2017 0.00%) 67,663 BT 161 0.04 161 0.04

Food & Drug Retailers 0.11% (31 December 2017 0.11%) 14,446 Ocado 114 0.02 206,165 Tesco 393 0.09 507 0.11

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Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

Food Producers 0.30% (31 December 2017 0.45%) 43,030 Cranswick 1,133 0.25 32,901 Tate & Lyle 218 0.05 1,351 0.30

Forestry & Paper 0.06% (31 December 2017 0.03%) 17,525 Mondi 287 0.06 287 0.06

Gas, Water & Multiutilities 0.04% (31 December 2017 0.00%) 9,536 Severn Trent 172 0.04 172 0.04

General Industrials 0.03% (31 December 2017 0.52%) 46,578 DS Smith 138 0.03 138 0.03

General Retailers 0.13% (31 December 2017 0.12%) 175,376 B&M European Value Retail 492 0.11 69,099 Pets at Home 81 0.02 573 0.13

Health Care Equipment & Services 0.46% (31 December 2017 0.42%) 29,486 Smith & Nephew 432 0.10 19,706 STERIS 1,623 0.36 2,055 0.46

Household Goods & Home Construction 0.04% (31 December 2017 0.00%) 127,111 Taylor Wimpey 174 0.04 174 0.04

Industrial Engineering 0.17% (31 December 2017 0.00%) 23,581 Bodycote 171 0.04 12,733 Pentair 372 0.09 14,885 Weir 193 0.04 736 0.17

Life Insurance 0.26% (31 December 2017 0.40%) 100,987 Aviva 379 0.09 38,581 Prudential 541 0.12 25,591 St James's Place 240 0.05 1,160 0.26

Media 0.10% (31 December 2017 0.00%) 27,952 RELX (UK Listing) 452 0.10 452 0.10

Mining 0.26% (31 December 2017 0.25%) 11,282 Anglo American 197 0.04 8,423 Rio Tinto (Australian Listing) 363 0.08 16,162 Rio Tinto (UK Listing) 608 0.14 1,168 0.26

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Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

Mobile Telecommunications 0.12% (31 December 2017 0.15%) 359,102 Vodafone 548 0.12 548 0.12

Nonlife Insurance 0.13% (31 December 2017 0.00%) 41,983 Direct Line Insurance 133 0.03 55,555 RSA Insurance 284 0.06 59,212 Sabre Insurance 162 0.04 579 0.13

Oil & Gas Producers 0.73% (31 December 2017 0.72%) 164,066 BP 817 0.18 81,787 BP ADR 2,442 0.55 3,259 0.73

Personal Goods 0.24% (31 December 2017 0.26%) 4,806 Unilever 198 0.04 20,868 Unilever (Dutch Listing) 884 0.20 1,082 0.24

Pharmaceuticals & Biotechnology 0.47% (31 December 2017 0.34%) 11,536 AstraZeneca (UK Listing) 673 0.15 50,770 GlaxoSmithKline 756 0.17 21,800 GlaxoSmithKline ADR 651 0.15 2,080 0.47

Software & Computer Services 0.16% (31 December 2017 0.25%) 6,852 AVEVA 166 0.04 18,362 Micro Focus International 253 0.06 46,473 Sage 278 0.06 697 0.16

Support Services 0.24% (31 December 2017 0.25%) 58,260 Biffa 115 0.03 18,173 Experian 345 0.08 30,738 HomeServe 265 0.06 97,942 Rentokil Initial 327 0.07 1,052 0.24

Tobacco 0.16% (31 December 2017 0.00%) 19,288 British American Tobacco 484 0.11 10,079 Imperial Brands 239 0.05 723 0.16

Travel & Leisure 0.28% (31 December 2017 0.57%) 51,993 GVC 348 0.08 445,705 GVC CVR - 0.00 29,208 International Consolidated Airlines (UK Listing) 180 0.04 56,092 Merlin Entertainments 179 0.04 36,748 SSP 238 0.05 6,583 Whitbread 302 0.07 1,247 0.28

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Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

Overseas 87.06% (31 December 2017 85.26%)

Africa 0.39% (31 December 2017 0.31%)

Africa Equities 0.39% (31 December 2017 0.31%)

South Africa Equities 0.39% (31 December 2017 0.31%) 46,772 Absa 412 0.10 28,720 Bidvest 323 0.07 276,637 Growthpoint Properties 351 0.08 122,643 Life Healthcare 176 0.04 14,314 Mr Price 189 0.04 63,097 Sanlam 273 0.06 1,724 0.39

Asia Pacific (Excluding Japan) 14.82% (31 December 2017 12.27%)

Asia Pacific (Excluding Japan) Equities 14.82% (31 December 2017 12.27%)

Australia Equities 1.03% (31 December 2017 1.09%) 14,084 ASX 461 0.11 43,978 Australia & New Zealand Banking 592 0.13 52,673 BHP Billiton (Australian Listing) 993 0.23 61,530 Brambles 341 0.08 7,966 CSL 815 0.18 115,075 Dulux 414 0.09 320,225 Incitec Pivot 581 0.13 26,791 Westpac Banking 371 0.08 4,568 1.03

Cambodia Equities 0.04% (31 December 2017 0.00%) 226,000 NAGACORP 190 0.04 190 0.04

China Equities 4.59% (31 December 2017 3.28%) 921,000 Agricultural Bank of China 'H' 316 0.07 40,958 Alibaba ADR 4,463 1.00 972,000 Bank of China 328 0.07 405,000 China Communications Construction 300 0.07 600,000 China Communications Services 389 0.09 1,134,000 China Construction Bank 731 0.16 86,000 China Life Insurance 'H' 143 0.03 276,600 China Pacific Insurance 700 0.16 1,024,000 China Petroleum & Chemical 571 0.13 270,120 China State Construction Engineering 176 0.04 770,000 China Telecom 307 0.07 65,400 China Vanke 178 0.04 792,000 CNOOC (HK Listing) 957 0.22 374,000 CRRC 285 0.06 229,000 Haitian International 345 0.08 516,000 Huaneng Power International 256 0.06 85,100 Huayu Automotive Systems 179 0.04 34,072 Huazhu 807 0.18 1,058,000 Industrial & Commercial Bank of China 591 0.13 62,200 Inner Mongolia Yili Industrial 162 0.04 288,000 Lenovo 152 0.03

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Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

China Equities (continued) 35,700 Midea 150 0.03 1,505 NetEase ADR 279 0.06 11,353 New Oriental Education & Technology ADR 487 0.11 514,000 PetroChina 250 0.06 487,000 PICC Property & Casualty 389 0.09 119,500 Ping An Insurance China 826 0.19 63,000 Shenzhou International 559 0.13 145,200 Sinopharm 475 0.11 68,200 Tencent 2,140 0.48 80,450 Tencent ADR 2,484 0.56 20,375 4.59

Hong Kong Equities 3.01% (31 December 2017 2.45%) 486,400 AIA 3,162 0.71 51,600 ASM Pacific Technology 388 0.09 434,000 Beijing Enterprises Water Group 172 0.04 168,500 BOC Hong Kong 490 0.11 268,000 China Everbright International 188 0.04 110,000 China Merchants Port 155 0.03 1,017,000 China Metal Recycling 0 0.00 150,000 China Mobile 1,128 0.25 18,500 China Mobile ADR 690 0.16 106,000 China Overseas Land & Investment 285 0.06 114,000 China Resources Land 343 0.08 430,000 China State Construction International 267 0.06 227,400 Chow Tai Fook Jewellery 148 0.03 979,755 Guangdong Investment 1,483 0.33 18,600 Jardine Matheson 985 0.22 181,250 Johnson Electric 289 0.07 736,000 Pacific Textiles 512 0.12 38,000 Sun Hung Kai Properties 424 0.10 356,000 Swire Properties 979 0.22 262,500 Techtronic Industries 1,092 0.25 196,000 Xinyi Glass 170 0.04 13,350 3.01

India Equities 1.66% (31 December 2017 1.59%) 43,484 Apollo Hospitals Enterprise 613 0.14 68,121 Bharat Petroleum 277 0.06 82,572 Bharti Infratel 239 0.05 87,974 GAIL India 354 0.08 45,756 Godrej Consumer Products 416 0.09 76,562 HDFC Bank 1,822 0.41 10,085 Hero MotoCorp 350 0.08 35,730 IndusInd Bank 641 0.14 138,424 Infosys 1,024 0.23 121,574 Marico 509 0.12 142,521 NTPC 237 0.05 30,235 Tech Mahindra 245 0.06 71,608 Vedanta 162 0.04 78,701 Zee Entertainment Enterprises 420 0.10 514,846 Zee Entertainment Enterprises 6% preference 05/03/2022 44 0.01 7,353 1.66

44 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

Indonesia Equities 0.24% (31 December 2017 0.13%) 412,900 Bank Mandiri 166 0.04 2,263,500 Bank Rakyat Indonesia 450 0.10 2,251,200 Telekomunikasi Indonesia 460 0.10 1,076 0.24

Macau Equities 0.17% (31 December 2017 0.08%) 220,400 Sands China 750 0.17 750 0.17

Malaysia Equities 0.23% (31 December 2017 0.12%) 128,700 Bursa Malaysia 167 0.04 229,200 CIMB 248 0.05 200,800 Genting Malaysia 115 0.03 51,200 Public Bank 240 0.05 569,000 Sime Darby 258 0.06 1,028 0.23

Philippines Equities 0.07% (31 December 2017 0.04%) 213,720 International Container Terminal Services 314 0.07 314 0.07

Singapore Equities 0.36% (31 December 2017 0.37%) 38,700 BOC Aviation 224 0.05 219,100 CapitaLand Retail China Trust 171 0.04 19,900 Jardine Cycle & Carriage 405 0.09 126,368 Oversea-Chinese Banking 817 0.18 1,617 0.36

South Korea Equities 1.46% (31 December 2017 1.18%) 4,451 Coway 231 0.05 5,440 Hana Financial 138 0.03 622 Hyundai Heavy Industries 151 0.03 4,718 Hyundai Motor 391 0.09 9,609 KB Financial 313 0.07 8,200 Korea Electric Power 191 0.04 789 Korea Zinc 239 0.05 26,512 Korean Reinsurance 161 0.04 18,209 NH Investment & Securities 166 0.04 942 POSCO 160 0.04 126,808 Samsung Electronics 3,440 0.78 1,056 Samsung Fire & Marine Insurance 199 0.05 3,230 SK Hynix 137 0.03 1,181 SK Innovation 148 0.03 1,464 SK Telecom 277 0.06 1,937 S-Oil 133 0.03 6,475 1.46

Taiwan Equities 1.64% (31 December 2017 1.58%) 59,000 Advantech 316 0.07 28,000 Asustek Computer 143 0.03 207,000 Cathay Financial 248 0.06 99,460 Chicony Electronics 158 0.04 430,000 CTBC Financial 221 0.05 60,000 Delta Electronics 197 0.04

45 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

Taiwan Equities (continued) 85,000 Formosa Plastics 218 0.05 71,000 Giant Manufacturing 261 0.06 302,636 Hon Hai Precision Industry 546 0.12 6,000 Largan Precision 490 0.11 44,000 MediaTek 254 0.06 699,000 Taiwan Semiconductor Manufacturing 4,007 0.90 113,000 Uni-President Enterprises 201 0.05 7,260 1.64

Thailand Equities 0.32% (31 December 2017 0.36%) 75,600 Bangkok Bank (Foreign Reg) 376 0.09 152,500 Kasikornbank (Foreign Reg) 675 0.15 676,400 Land & Houses 160 0.04 560,400 Thai Beverage 195 0.04 1,406 0.32

Japan 7.46% (31 December 2017 7.81%)

Japan Equities 7.46% (31 December 2017 7.81%) 10,800 77 Bank 147 0.03 8,800 Advan 57 0.01 18,300 AT 310 0.07 3,200 Bandai Namco 112 0.03 31,800 Bridgestone 959 0.22 12,500 Canon (US Listing) 268 0.06 3,200 Central Japan Railway 527 0.12 7,900 Chubu-Nippon Broadcasting 39 0.01 16,200 Daicel 130 0.03 9,000 Daiwa House Industry 224 0.05 4,300 Disco 393 0.09 5,800 Don Quijotegs 281 0.06 7,000 Dowa 164 0.04 11,900 East Japan Railway 823 0.19 6,400 Enplas 124 0.03 14,800 Fujifilm 450 0.10 8,100 Fujitsu 395 0.09 12,700 Fukuoka Financial 202 0.05 7,000 Glory 123 0.03 29,100 H2O Retailing 323 0.07 36,800 Haseko 302 0.07 28,600 HI-LEX 443 0.10 18,300 Hitachi 383 0.09 18,800 Hitachi Capital 309 0.07 16,800 Hitachi Metals 138 0.03 23,400 Hitachi Transport System 518 0.12 8,300 IHI 179 0.04 18,600 Inabata 185 0.04 44,300 Isuzu Motors 489 0.11 29,600 ITOCHU 393 0.09 7,600 Izumi 276 0.06 23,800 Japan Airlines 660 0.15 16,700 Japan Post 150 0.03 14,000 Japan Tobacco 261 0.06

46 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

Japan Equities (continued) 22,100 JGC 243 0.05 136,900 JXTG 562 0.13 45,400 KDDI 847 0.19 7,000 Kintetsu World Express 81 0.02 12,500 Koito Manufacturing 505 0.11 2,500 Kureha 108 0.02 22,700 Leopalace21 70 0.02 68,115 Marui 1,034 0.23 27,970 Matsumotokiyoshi 669 0.15 46,100 Mitsubishi Electric 399 0.09 131,500 Mitsubishi UFJ Financial 504 0.11 62,100 Mitsui 747 0.17 19,100 Mitsui Fudosan 333 0.06 2,500 Murata Manufacturing 266 0.06 9,700 Nabtesco 165 0.04 14,900 Nafco 160 0.04 4,900 NGK Spark Plug 76 0.02 7,200 Nichias 96 0.02 2,200 Nidec 195 0.04 400 Nintendo 83 0.02 7,300 Nippon Soda 140 0.03 47,315 Nippon Telegraph & Telephone 1,510 0.34 27,800 Nippon Telegraph & Telephone ADR 886 0.20 34,900 Nippon Thompson 122 0.03 100,900 Nomura 302 0.07 11,500 Nomura Real Estate 165 0.04 6,800 Otsuka 146 0.03 14,400 Otsuka Holdings 461 0.10 1,200 PALTAC 44 0.01 14,200 Recruit 269 0.06 20,200 Renesas Electronics 72 0.02 22,400 Sakata INX 194 0.04 13,800 Sanki Engineering 112 0.03 19,900 Sankyu 704 0.16 45,200 Santen Pharmaceutical 510 0.11 37,600 Sekisui Chemical 437 0.10 14,500 Seven & I 494 0.11 9,500 Shimadzu 147 0.03 4,000 Ship Healthcare 115 0.03 1,600 SK Kaken 569 0.13 2,300 SMC 544 0.12 7,900 Sompo 210 0.05 114,563 Sony Financial 1,676 0.38 3,100 SRA 58 0.01 28,100 Sumitomo Electric Industries 292 0.07 36,300 Sumitomo Mitsui Financial 943 0.21 51,800 T&D 472 0.11 11,000 T&K Toka 79 0.02 10,400 Takeda Pharmaceutical 274 0.06 10,900 TDK 597 0.13 8,500 Techno Associe 69 0.02 39,300 Tokai Tokyo Financial 131 0.03

47 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

Japan Equities (continued) 16,900 Tokio Marine 630 0.14 4,000 Toyota Industries 144 0.03 27,400 Toyota Motor 1,250 0.28 4,700 Tsubakimoto Chain 121 0.03 15,000 Unipres 199 0.04 10,100 Yamaha Motor 155 0.03 33,123 7.46 Europe 9.90% (31 December 2017 12.26%)

Europe Equities 9.90% (31 December 2017 12.26%)

Belgium Equities 0.33% (31 December 2017 0.37%) 4,568 Ackermans & van Haaren 541 0.12 14,237 UCB 909 0.21 1,450 0.33

Denmark Equities 0.19% (31 December 2017 0.21%) 16,235 DSV 833 0.19 833 0.19

Finland Equities 0.00% (31 December 2017 0.52%)

France Equities 2.23% (31 December 2017 2.14%) 39,100 BNP Paribas ADR 686 0.15 11,538 Capgemini 892 0.20 67,224 Elior 776 0.18 61,622 Elis 810 0.18 20,350 Legrand 902 0.20 4,876 L'Oreal 875 0.20 7,051 Pernod Ricard 902 0.20 43,629 Rubis 1,839 0.41 8,400 TOTAL ADR 345 0.08 29,072 Vinci 1,892 0.43 9,919 2.23

Germany Equities 1.58% (31 December 2017 1.17%) 11,497 Beiersdorf 942 0.21 58,487 Brenntag 1,977 0.45 22,434 Fuchs Petrolub 722 0.16 11,005 Knorr-Bremse 777 0.17 11,657 Merck 938 0.21 21,328 Siemens Healthineers 701 0.16 27,956 United Internet 959 0.22 7,016 1.58

Greece Equities 0.00% (31 December 2017 0.11%)

Ireland Equities 1.01% (31 December 2017 3.84%) 23,100 AerCap 714 0.16 5,151 Aptiv 248 0.06 17,978 CRH (UK Listing) 371 0.08 570,338 Irish Continental 2,202 0.49 78,370 James Hardie Industries 652 0.15 3,075 Jazz Pharmaceuticals 293 0.07 4,480 1.01

48 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

Italy Equities 0.24% (31 December 2017 0.45%) 168,687 Cerved Information Solutions 1,081 0.24 1,081 0.24

Luxembourg Equities 0.05% (31 December 2017 0.05%) 10,423 Ternium 221 0.05 221 0.05

Netherlands Equities 0.83% (31 December 2017 0.66%) 1,740 Core Laboratories 81 0.02 13,951 Heineken (Temporary Listing) 962 0.22 104,511 ING 881 0.20 25,500 QIAGEN 677 0.15 46,676 Royal Dutch Shell 'B' 1,089 0.24 3,690 0.83

Poland Equities 0.07% (31 December 2017 0.00%) 36,104 Powszechny Zaklad Ubezpieczen 323 0.07 323 0.07

Portugal Equities 0.17% (31 December 2017 0.00%) 83,240 Jeronimo Martins 772 0.17 772 0.17

Russia Equities 0.20% (31 December 2017 0.19%) 6,472 Lukoil ADR 360 0.08 24,846 Magnitogorsk Iron & Steel Works 156 0.03 24,373 Polymetal International 202 0.05 20,754 Sberbank of Russia ADR 177 0.04 895 0.20

Spain Equities 0.48% (31 December 2017 0.35%) 219,800 Banco Santander 763 0.17 21,084 Vidrala 1,375 0.31 2,138 0.48

Sweden Equities 0.94% (31 December 2017 0.80%) 41,181 Alfa Laval 683 0.15 65,792 Assa Abloy 907 0.20 42,544 Atlas Copco 781 0.18 118,632 Epiroc 864 0.20 2,098 Spotify Technology 184 0.04 62,345 Trelleborg 758 0.17 4,177 0.94

Switzerland Equities 1.53% (31 December 2017 1.34%) 14,604 Cie Financiere Richemont 732 0.16 7,900 Garmin 389 0.09 2,526 Geberit 769 0.17 190,138 Glencore 557 0.13 26,050 Julius Baer 726 0.16 6,509 Kuehne + Nagel International 654 0.15 30,475 Novartis 2,038 0.46 96,155 UBS 936 0.21 6,801 1.53

49 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

Turkey Equities 0.05% (31 December 2017 0.06%) 199,800 Haci Omer Sabanci 219 0.05 219 0.05 North America 53.51% (31 December 2017 51.93%)

North America Equities 53.51% (31 December 2017 51.93%)

Bermuda Equities 0.40% (31 December 2017 0.45%) 8,915 Enstar 1,163 0.26 3,000 Everest Re 508 0.12 1,036 RenaissanceRe 107 0.02 1,778 0.40

Canada Equities 3.74% (31 December 2017 3.44%) 5,600 Bank of Montreal 286 0.06 9,000 BCE 279 0.06 3,600 Canadian Imperial Bank of Commerce 210 0.05 29,349 Canadian National Railway 1,697 0.38 114,700 Canadian Natural Resources 2,157 0.49 9,350 Canadian Pacific Railway 1,295 0.29 5,600 Canadian Tire 457 0.10 4,085 Fairfax Financial 1,386 0.31 1,458 George Weston 75 0.02 9,400 Gildan Activewear 222 0.05 45,559 Intact Financial 2,571 0.58 10,800 Loblaw 376 0.08 3,236 Lululemon Athletica 308 0.07 38,600 Magna (CAD Listing) 1,376 0.31 1,116 Shopify 117 0.03 11,300 Toronto-Dominion (CAD Listing) 439 0.10 17,475 Toronto-Dominion (USD Listing) 678 0.15 46,587 Waste Connections (USA Listing) 2,691 0.61 16,620 3.74

Mexico Equities 0.12% (31 December 2017 0.08%) 37,444 Grupo Aeroportuario del Pacifico 243 0.06 140,600 Wal-Mart de Mexico 276 0.06 519 0.12

United States Equities 49.25% (31 December 2017 47.96%) 35,825 Abbott Laboratories 1,994 0.45 4,600 AbbVie 328 0.07 4,986 Acadia Healthcare 100 0.02 17,575 Adobe 3,070 0.69 114,520 ADT 547 0.12 4,375 Advance Auto Parts 533 0.12 10,967 Advanced Micro Devices 153 0.03 2,148 Affiliated Managers 162 0.04 15,000 Aflac 528 0.12 7,288 AGCO 312 0.07 2,685 Agios Pharmaceuticals 95 0.02 8,202 Alaska Air 387 0.09 3,121 Alexandria Real Estate Equities 278 0.06 9,900 Allegheny Technologies 170 0.04 6,800 Alliance Data Systems 797 0.18

50 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

United States Equities (continued) 12,931 Alliant Energy 426 0.10 18,521 Allison Transmission 631 0.14 15,400 Allstate 990 0.22 1,178 Alnylam Pharmaceuticals 65 0.01 3,820 Alphabet 'A' 3,132 0.71 10,100 Altria 387 0.09 945 Amazon.com 1,094 0.25 61,200 AMC Entertainment 595 0.13 18,900 Amdocs 858 0.19 9,600 Ameren 488 0.11 51,980 American Airlines 1,295 0.29 5,600 American Electric Power 328 0.07 2,900 American Financial 203 0.05 24,807 American Tower 3,084 0.69 1,570 Ameriprise Financial 127 0.03 2,192 AmerisourceBergen 127 0.03 22,856 Ametek 1,194 0.27 2,300 Amgen 344 0.08 5,646 Amphenol 356 0.08 97,600 Annaly Capital Management 754 0.17 10,400 Apple 1,272 0.29 27,710 Aramark 622 0.14 12,891 Ares Capital 157 0.04 1,568 Arista Networks 253 0.06 7,300 Arrow Electronics 390 0.09 9,283 Arthur J Gallagher 527 0.12 5,789 Ashland Global 319 0.07 106,300 AT&T 2,369 0.53 3,655 Autodesk 364 0.08 26,788 Automatic Data Processing 2,711 0.61 1,000 AutoZone 657 0.15 50,592 Avangrid 1,974 0.44 4,515 Avery Dennison 314 0.07 21,300 Axalta Coating Systems 381 0.09 83,780 Ball 2,940 0.66 64,400 Bank of America 1,230 0.28 8,250 Becton Dickinson 1,434 0.32 29,400 Belden 947 0.21 20,717 Berkshire Hathaway 3,278 0.74 2,102 BioMarin Pharmaceutical 138 0.03 6,844 Black Knight 240 0.05 63,700 Blackstone 1,501 0.34 1,225 Booking 1,646 0.37 7,183 Booz Allen Hamilton 253 0.06 8,369 BorgWarner 226 0.05 3,060 Bright Horizons Family Solutions 267 0.06 12,900 Bristol-Myers Squibb 515 0.12 28,412 Brixmor Property 329 0.07 15,112 Brown & Brown 322 0.07 12,313 Brunswick 445 0.10 7,500 Burlington Stores 929 0.21 37,091 BWX Technologies 1,073 0.24

51 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

United States Equities (continued) 9,069 Cadence Design Systems 308 0.07 1,917 Carnival 72 0.02 21,018 Catalent 506 0.11 8,038 CBRE 251 0.06 11,000 Celanese 771 0.17 10,300 Celgene 504 0.11 3,336 Centene 295 0.07 12,941 Centennial Resource Development 110 0.02 14,077 CenterState Bank 230 0.05 28,125 Charles Schwab 904 0.20 8,570 Chemical Financial 247 0.06 7,300 Chevron 621 0.14 16,084 Ciena 417 0.09 1,363 Cigna 203 0.05 63,100 Cisco Systems 2,114 0.48 61,700 Citigroup 2,504 0.56 34,902 Clean Harbors 1,318 0.30 8,272 Cognizant Technology Solutions 408 0.09 19,000 Comcast 511 0.11 9,319 Commerce Bancshares 406 0.09 40,800 CommScope 521 0.12 17,900 Compass Minerals International 577 0.13 3,304 Concho Resources 263 0.06 55,600 Conduent 461 0.10 16,800 ConocoPhillips 811 0.18 1,815 Cooper 355 0.08 7,837 Copart 292 0.07 9,773 CoreLogic 253 0.06 21,545 Corning 502 0.11 14,856 Crown 474 0.11 1,369 Curtiss-Wright 108 0.02 15,000 CVS Health 766 0.17 26,500 Delta Air Lines 1,041 0.23 43,330 Dentsply Sirona 1,259 0.28 51,500 Devon Energy 905 0.20 3,519 DexCom 326 0.07 4,400 Discover Financial Services 201 0.05 3,081 DocuSign 98 0.02 9,907 Dolby Laboratories 472 0.11 2,000 Dollar General 168 0.04 12,000 Douglas Emmett 318 0.07 18,400 DowDuPont 764 0.17 30,000 DR Horton 812 0.18 5,995 Dycom Industries 244 0.05 15,100 E*TRADE Financial 515 0.12 10,898 East West 367 0.08 18,570 Eastman Chemical 1,051 0.24 8,000 Eaton 427 0.10 25,000 eBay 553 0.12 31,718 Edison International 1,421 0.32 1,556 Edwards Lifesciences 183 0.04 3,249 Elanco Animal Health 80 0.02

52 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

United States Equities (continued) 2,092 Electronic Arts 130 0.03 12,200 Eli Lilly 1,091 0.25 11,874 Entegris 255 0.06 15,600 Entergy 1,045 0.24 5,311 Equity LifeStyle Properties 401 0.09 5,647 Evergy 250 0.06 4,479 Exact Sciences 215 0.05 14,012 Exelixis 213 0.05 32,500 Exelon 1,139 0.26 26,515 Extended Stay America 323 0.07 17,200 Exxon Mobil 918 0.21 2,300 F5 Networks 289 0.07 39,000 Facebook 4,068 0.92 1,277 Fair Isaac 184 0.04 17,922 Fidelity National Information Services 1,414 0.32 5,300 First American Financial 187 0.04 66,800 First Data 886 0.20 21,641 First Horizon National 221 0.05 5,425 First Republic Bank 374 0.08 21,700 FirstEnergy 633 0.14 6,492 Fiserv 371 0.08 17,300 FMC 992 0.22 4,346 Fortive 227 0.05 18,114 Fortune Brands Home & Security 533 0.12 61,400 Freeport-McMoRan 503 0.11 3,053 Gartner 301 0.07 80,800 General Motors 2,145 0.48 4,114 Genpact 86 0.02 18,200 Getty Realty 419 0.09 19,700 Gilead Sciences 955 0.21 5,819 Global Payments 467 0.11 7,251 GoDaddy 363 0.08 31,123 GrafTech International 274 0.06 412 Graham 208 0.05 30,915 Graphic Packaging 256 0.06 2,440 GrubHub 145 0.03 25,134 Gulfport Energy 134 0.03 65,389 Hain Celestial 796 0.18 24,200 Halliburton 502 0.11 60,200 Hanesbrands 575 0.13 8,700 HB Fuller 291 0.07 23,475 HCA 2,252 0.51 5,260 HEICO 255 0.06 13,100 Helmerich & Payne 488 0.11 1,039 Henry Schein 63 0.01 9,760 Hexcel 432 0.10 6,087 Hilton Worldwide 338 0.08 33,768 Hologic 1,070 0.24 133,100 Houghton Mifflin Harcourt 927 0.21 59,900 Huntsman 894 0.20 4,366 IDACORP 316 0.07 3,186 IDEX 310 0.07 858 Illumina 200 0.05

53 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

United States Equities (continued) 9,600 Ingredion 685 0.15 2,732 Insulet 166 0.04 9,865 Integrated Device Technology 373 0.08 42,600 Intel 1,560 0.35 1,352 Intercept Pharmaceuticals 100 0.02 11,800 International Business Machines 1,044 0.24 8,296 Intra-Cellular Therapies 73 0.02 13,198 Intuit 2,024 0.46 51,700 Invesco 670 0.15 7,400 IPG Photonics 667 0.15 8,000 JM Smucker 588 0.13 18,100 Johnson & Johnson 1,803 0.41 19,700 JPMorgan Chase 1,494 0.34 10,468 KAR Auction Services 382 0.09 5,500 Kellogg 247 0.06 2,201 Kirby 115 0.03 113,500 KKR 1,746 0.39 3,100 KLA-Tencor 215 0.05 48,900 Knowles 514 0.12 25,300 Kroger 546 0.12 2,558 Lam Research 271 0.06 7,608 Lamar Advertising 411 0.09 10,045 Leidos 412 0.09 3,132 Lennox International 534 0.12 22,452 LKQ 421 0.09 14,441 Marvell Technology 177 0.04 2,787 Masimo 230 0.05 9,899 MasTec 311 0.07 5,600 McKesson 482 0.11 11,300 Merck (US Listing) 667 0.15 7,982 Microchip Technology 448 0.10 59,400 Micron Technology 1,468 0.33 46,475 Microsoft 3,655 0.82 4,169 Mid-America Apartment Communities 310 0.07 10,667 Middleby 847 0.19 9,800 Minerals Technologies 389 0.09 5,319 Moderna 59 0.01 10,300 Mohawk Industries 945 0.21 24,200 Molson Coors Brewing 1,060 0.24 49,050 Monster Beverage 1,884 0.42 27,403 Motorola Solutions 2,408 0.54 17,450 MSCI 1,986 0.45 28,200 Mylan 602 0.14 4,359 Nasdaq 275 0.06 3,245 National Vision 74 0.02 38,800 NCR 689 0.16 14,400 Newell Brands 207 0.05 63,900 Nielsen 1,163 0.26 13,199 NiSource 263 0.06 4,909 Nordson 452 0.10 8,511 Nordstrom 307 0.07 76,300 Nuance Communications 781 0.18 2,482 Okta 120 0.03 2,180 Old Dominion Freight Line 209 0.05

54 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

United States Equities (continued) 13,000 Omega Healthcare Investors 358 0.08 24,617 ON Semiconductor 315 0.07 24,500 Oracle 860 0.19 2,352 O'Reilly Automotive 630 0.14 2,869 Oshkosh 135 0.03 6,096 Owens Corning 209 0.05 4,695 Pacira Pharmaceuticals 156 0.04 17,496 Packaging of America 1,128 0.25 2,562 Palo Alto Networks 369 0.08 1,942 Parker-Hannifin 225 0.05 23,635 Parsley Energy 290 0.07 18,300 Patterson 285 0.06 2,281 Paycom Software 217 0.05 28,825 PayPal 1,879 0.42 16,443 Performance Food 408 0.09 4,241 PerkinElmer 257 0.06 54,000 Pfizer 1,817 0.41 4,900 Phillips 66 326 0.07 25,900 Piedmont Office Realty Trust 344 0.08 148,500 Pitney Bowes 692 0.16 20,000 Plantronics 512 0.12 21,000 Prestige Consumer Healthcare 503 0.11 5,006 Progressive 234 0.05 2,905 Proofpoint 194 0.04 8,885 PTC 573 0.13 16,200 Public Service Enterprise 651 0.15 33,300 PulteGroup 679 0.15 4,438 Raymond James Financial 256 0.06 2,821 Red Hat 386 0.09 22,826 Red Rock Resorts 359 0.08 4,800 Regeneron Pharmaceuticals 1,363 0.31 4,786 Reinsurance Group of America 516 0.12 2,988 Reliance Steel & Aluminum 166 0.04 9,200 Republic Services 518 0.12 3,497 ResMed 307 0.07 72,426 ResMed CDI 635 0.14 46,000 Retail Properties of America 395 0.09 9,836 Ross Stores 628 0.14 13,200 Royal Caribbean Cruises 993 0.22 2,763 S&P Global 364 0.08 23,006 Sabre 387 0.09 1,357 Sage Therapeutics 95 0.02 63,589 Santander Consumer 873 0.20 2,237 SBA Communications Class A 285 0.06 55,300 Schlumberger 1,585 0.36 31,700 Senior Housing Properties Trust 291 0.07 4,772 Sensient Technologies 208 0.05 12,967 ServiceMaster Global 369 0.08 4,119 ServiceNow 582 0.13 10,000 Sonoco Products 412 0.09 2,248 Spark Therapeutics 68 0.02 5,618 Spirit Airlines 253 0.06 3,940 Splunk 317 0.07 51,500 Sprouts Farmers Market 935 0.21

55 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

United States Equities (continued) 4,086 Square 179 0.04 2,100 Stanley Black & Decker 195 0.04 29,800 Starwood Property Trust 466 0.10 5,804 Steel Dynamics 136 0.03 7,974 Stericycle 229 0.05 24,600 Stratasys 351 0.08 80,200 Summit Materials 773 0.17 6,332 Synopsys 415 0.09 3,117 Take-Two Interactive Software 255 0.06 20,500 Target 1,043 0.23 39,677 TD Ameritrade 1,512 0.34 60,812 TEGNA 512 0.12 4,775 Teladoc 181 0.04 40,554 Teradata 1,189 0.27 580 Tesla 152 0.03 6,100 Tetra Tech 245 0.06 8,725 Thermo Fisher Scientific 1,519 0.34 26,423 Torchmark 1,529 0.34 5,203 Tractor Supply 339 0.08 2,900 Travelers 269 0.06 37,700 Tronox 230 0.05 27,800 Tupperware Brands 679 0.15 1,369 Tyler Technologies 195 0.04 34,300 Tyson Foods 1,406 0.32 853 Ulta Beauty 160 0.04 9,311 UniFirst 1,030 0.23 13,511 United Community Banks 226 0.05 3,100 United Technologies 256 0.06 13,302 Universal Health Services 1,210 0.27 1,018 Vail Resorts 168 0.04 5,700 Valero Energy 328 0.07 3,292 Valmont Industries 280 0.06 40,686 Valvoline 609 0.14 4,124 Veeva Systems 283 0.06 31,300 Verint Systems 1,028 0.23 2,129 VeriSign 245 0.06 5,907 Verisk Analytics 500 0.11 34,600 Verizon Communications 1,497 0.34 1,124 Vertex Pharmaceuticals 142 0.03 21,250 Visa 2,179 0.49 4,378 Vulcan Materials 333 0.07 20,500 Walgreens Boots Alliance 1,093 0.25 18,100 Walmart 1,306 0.29 3,500 Walt Disney 294 0.07 7,200 Waste Management 496 0.11 2,008 Wayfair 143 0.03 7,041 Webster Financial 268 0.06 1,634 WellCare Health Plans 297 0.07 3,269 West Pharmaceutical Services 246 0.06 2,692 Westamerica Bancorporation 118 0.03 13,495 Western Alliance Bank 417 0.09 46,900 Western Union 626 0.14 19,100 WestRock 557 0.13

56 Quilter Investors Series I

Quilter Investors Global Dynamic Equity Fund

Portfolio statement (continued) as at 31 December 2018

Market Percentage of Value total net assets Holding Investment £'000 %

United States Equities (continued) 3,268 Worldpay (UK Listing) 198 0.04 2,875 Worldpay (USD Listing) 172 0.04 1,188 WW Grainger 262 0.06 4,803 Xilinx 317 0.07 3,039 Yelp 82 0.02 1,805 Zebra Technologies 220 0.05 9,918 Zions Banco 314 0.07 29,300 Zoetis 1,938 0.44 218,725 49.25

US Dollar Denominated Forward Exchange Contracts 0.00% (31 December 2017 0.00%) $58,117 US Dollar v Sterling Forward Exchange Contract - - - -

South America 0.98% (31 December 2017 0.68%)

South America Equities 0.98% (31 December 2017 0.68%)

Argentina Equities 0.00% (31 December 2017 0.05%)

Brazil Equities 0.76% (31 December 2017 0.57%) 85,000 B3 SA Brasil Bolsa Balcao 460 0.10 68,180 Banco Bradesco 532 0.12 19,000 Banco Santander Brasil 164 0.04 45,800 BB Seguridade Participacoes 255 0.06 25,900 Cia de Saneamento Basico do Estado de Sao Paulo 164 0.04 131,800 CIA Energetica de Minas Gerais Preference shares 368 0.08 192,144 Itausa - Investimentos Itau Preference Shares 469 0.11 49,900 Petrobras Distribuidora 259 0.06 34,470 Petroleo Brasileiro 312 0.07 36,156 Vale (BRL Listing) 372 0.08 3,355 0.76

Chile Equities 0.14% (31 December 2017 0.06%) 46,305 Enel Americas 321 0.07 9,426 Sociedad Quimica y Minera de Chile 290 0.07 611 0.14

Peru Equities 0.08% (31 December 2017 0.00%) 1,916 Credicorp 333 0.08 333 0.08

Investment assets 436,037 98.18

Net other assets 8,073 1.82

Total net assets 444,110 100.00

All investments are approved securities being either officially listed in a member state or traded on or under the rules of an eligible securities market, unless otherwise stated. All investments are in ordinary shares unless otherwise stated.

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Statement of total return for the year from 1 January 2018 to 31 December 2018 01.01.18 to 01.01.18 to 01.01.17 to 01.01.17to 31.12.18 31.12.18 31.12.17 31.12.17 Note £'000 £'000 £'000 £'000 Income Net capital (losses)/gains 2 (43,976) 76,745 Revenue 3 10,988 12,282 Expenses 4 (10,478) (12,443) Interest payable and similar charges 5 (13) (26) Net revenue/(expense) before taxation 497 (187) Taxation 6 (1,076) (1,090) Net expense after taxation (579) (1,277) Total return before distributions (44,555) 75,468 Distributions 7 (129) (192) Change in net assets attributable to shareholders from investment activities (44,684) 75,276

Statement of change in net assets attributable to shareholders for the year from 1 January 2018 to 31 December 2018 01.01.18 to 01.01.18 to 01.01.17 to 01.01.17 to 31.12.18 31.12.18 31.12.17 31.12.17 £'000 £'000 £'000 £'000

Opening net assets attributable to shareholders 588,077 753,003

Amounts received on issue of shares 38,092 38,490 Amounts paid on cancellation of shares (137,664) (279,302) (99,572) (240,812) Dilution adjustment 165 420 Change in net assets attributable to shareholders from investment activities (44,684) 75,276 Retained distribution on accumulation shares 124 190

Closing net assets attributable to shareholders 444,110 588,077

The notes on pages 60 to 69 form an integral part of these financial statements.

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Balance sheet as at 31 December 2018

31.12.18 31.12.17 Note £'000 £'000 Assets Fixed assets Investments 436,037 567,164 Current assets Debtors 8 5,455 2,364 Cash and bank balances 9 7,506 20,778 Total assets 448,998 590,306

Liabilities Creditors Bank overdrafts 10 (1) (260) Other creditors 11 (4,887) (1,969) Total liabilities (4,888) (2,229)

Net assets attributable to shareholders 444,110 588,077

The notes on pages 60 to 69 form an integral part of these statements.

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Notes to the financial statements for the year from 1 January 2018 to 31 December 2018

1 Accounting policies The applicable accounting policies adopted by the Quilter Investors Global Dynamic Equity Fund are included on pages 71 to 72.

2 Net capital gains (losses)/gains

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000 The net capital (losses)/gains on investments comprise: (Losses)/gains on non-derivative securities (44,194) 78,005 Gains on derivative contracts - 370 Gains/(losses) on forward currency contracts 24 (107) Gains/(losses) on currency contracts 463 (1,322) Handling charges (269) (201) Net capital gains (losses)/gains (43,976) 76,745

3 Revenue

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

Authorised Corporate Director's fee rebate - 1 Authorised corporate director capitalised fee rebate 49 199 Bank interest 7 5 Interest on debt securities (9) - Non-taxable overseas dividends 8,924 9,684 Non-taxable distributions on Offshore Funds 121 419 Overseas REIT dividends 642 724 Taxable overseas dividends 114 63 UK dividends 1,140 1,187 Total revenue 10,988 12,282

4 Expenses

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director's periodic charge 8,055 9,405 Fixed expenses* 248 346 8,303 9,751 Other expenses: Investment adviser’s fees** 2,175 2,692 Total expenses 10,478 12,443

* These figures represent the fixed expense charge which covers all fees payable to the Depositary (including associates etc.), and other expenses. The Audit fee for the year, excluding VAT, was £6,500 (31 December 2017: £9,300).

** The Investment adviser’s fees are not included within the fixed expense charge.

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

5 Interest payable and similar charges

01.01.18 to 01.01.17 to

31.12.18 31.12.17

£'000 £'000

Bank overdraft interest 13 26

Total interest payable and similar charges 13 26

6 Taxation a) Analysis of tax charge in the year

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

Overseas tax suffered 1,076 1,090 Total current tax charge for the year 1,076 1,090

Deferred tax charge for the year (see note 6(c)) - - Total taxation for the year (see note 6(b)) 1,076 1,090 b) Factors affecting current tax charge for the year

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

The taxation assessed for the year is higher than the standard rate of corporation tax in the UK for an open ended investment company (20%). The differences are explained below:

Net revenue/(expense) before taxation 497 (187)

Corporation tax at 20% (31 December 2017: 20%) 99 (37)

Effects of: Excess management expenses for which no relief taken 1,953 2,309 Revenue not subject to taxation – UK (228) (237) Non-taxable overseas dividends (1,808) (2,021) Overseas tax expensed (17) (14) Overseas tax suffered 1,076 1,090 Tax on offshore fund gains 1 - Total tax charge for the year (see note 6(a)) 1,076 1,090

OEICs are exempt from tax in capital gains, therefore, any capital return is not included in the above reconciliation. c) Movement in deferred tax liability

01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

Deferred tax liability at the start of the year - - Deferred tax charge for the year (see note 6(a)) - - Deferred tax liability at the end of the year - -

At 31 December 2018 the sub-fund had surplus management expenses of £158,070,067 (31 December 2017: £148,307,952), which can be utilised against profits chargeable to corporation tax in future periods. It is unlikely that the sub-fund will generate sufficient taxable profits in the future to utilise these expenses and, therefore, no deferred tax asset has been recognised.

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018 7 Distributions The distributions take account of revenue received on the issue of share and revenue deducted on the cancellation of shares, and comprise: 01.01.18 to 01.01.17 to 31.12.18 31.12.17 £'000 £'000

Interim – Accumulation shares (30 June) 92 130 Final – Accumulation shares (31 December) 32 60 124 190 Revenue deducted on cancellation of shares 9 18 Revenue received on issue of shares (4) (16) Distributions 129 192

Reconciliation of distributions: Net expense after taxation (579) (1,277) Authorised Corporate Director's capitalised fee rebates (49) (199) Revenue deficit reimbursed from capital 746 1,628 Tax effect of fee rebates taken to capital 11 40 Distributions 129 192

Details of the interim and final distributions per share are set out in the tables on page 70.

8 Debtors

31.12.18 31.12.17 £'000 £'000

Accrued Authorised Corporate Director's fee rebates - 20 Accrued revenue 548 547 Amounts receivable for issue of shares 22 1,107 Overseas tax recoverable 218 247 Sales awaiting settlement 4,667 443 Total debtors 5,455 2,364

9 Cash and bank balances

31.12.18 31.12.17 £'000 £'000

Cash and bank balances 7,506 20,778 Total cash and bank balances 7,506 20,778

10 Bank overdrafts

31.12.18 31.12.17 £'000 £'000

Cash and bank overdrafts 1 260 Total overdrafts 1 260

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018 11 Other creditors

31.12.18 31.12.17 £'000 £'000

Accrued Authorised Corporate Director's periodic charge 590 674 Accrued Investment Adviser's fees 162 386 Accrued expenses 79 39 Amounts payable for cancellation of shares 3,272 93 Purchases awaiting settlement 784 777 Total other creditors 4,887 1,969

12 Related party transactions Quilter Investors Limited, as ACD, is a related party, and acts as principal in respect of all transactions of shares in each sub-fund. The monies received on issue and paid on cancellation are disclosed in the Statement of change in net assets attributable to shareholders on page 58. Any amounts due to or from Quilter Investors Limited at the end of the accounting year in respect of transactions of shares in each sub-fund are disclosed in notes 8 and 11. Other amounts paid to the ACD are disclosed in note 4 and amounts due to it at the year end are disclosed in note 11.

13 Derivatives and other financial instruments a) Financial instrument risk The sub-fund, in pursuing its objective, holds a number of financial instruments, which may comprise of the following: Equity shares and equity related shares. The sub-fund will also hold cash and other short term debtors and creditors that arise directly from its operations. In addition, the sub-fund may hold derivatives in the form of forward foreign exchange contracts and/or futures contracts for the purpose of efficient portfolio management in accordance with the COLL Sourcebook. The financial instruments are held in line with the sub-fund's investment policy. Each Investment Adviser is responsible for monitoring the portfolio of his sub-fund in accordance with its investment objective and seeks to ensure that individual assets also meet a risk reward profile that is acceptable. The ACD has appointed specialist managers to manage the sub-fund, and continuously monitors this appointment. Adherence to the investment guidelines and the investment and borrowing powers as set out in the Scheme Particulars and in the rules of the Regulations also mitigates the risk of excessive exposure to any particular type of security or issuer. Further information on the investment portfolio is set out in the Investment Manager's review and the Portfolio statement of each sub-fund. The main risks arising from financial instruments are interest rate risk, foreign currency risk, credit risk, counterparty risk, liquidity risk and market risk which are summarised below.

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018 13 Derivatives and other financial instruments (continued) b) Foreign currency risk A significant proportion of the sub-fund's financial assets and liabilities are invested overseas. As a result, movements in exchange rates may affect the market price of investments and, due to timing differences between the transaction dates of investment sales, purchases and income, and actual cash settlement, create currency exchange gains/losses. The Investment Manager does seek to reduce some of this risk by using forward currency contracts. The direct foreign currency exposure of the sub-fund as at 31 December 2018 (31 December 2017) was as follows:

Currency Net foreign currency assets/(liabilities) Net foreign currency assets/(liabilities) Monetary Non-monetary Monetary Non-monetary exposures* exposures Total exposures* exposures Total

31.12.18 31.12.18 31.12.18 31.12.17 31.12.17 31.12.17 £’000 £’000 £’000 £’000 £’000 £’000 Australian Dollar 8 6,218 6,226 4 8,650 8,654 Brazilian Real 179 3,043 3,222 (238) 3,029 2,791 Canadian Dollar 154 7,776 7,930 1 11,041 11,042 Chilean Peso - 290 290 - - - China Renminbi - 845 845 - - - Danish Krone 64 833 897 63 1,258 1,321 Euro 769 26,188 26,957 364 35,204 35,568 Hong Kong Dollar 485 24,313 24,798 86 27,155 27,241 Indian Rupee 10 7,353 7,363 35 9,321 9,356 Indonesian Rupiah - 1,076 1,076 - 790 790 Japanese Yen 447 31,969 32,416 470 44,757 45,227 Malaysian Ringgit - 1,028 1,028 5 691 696 Mexican Peso (1) 519 518 - 487 487 Norwegian Krone 7 - 7 8 - 8 Philippine Peso - 314 314 - 261 261 Polish Zloty - 323 323 - - - Singapore Dollar - 1,588 1,588 9 2,241 2,250 South Africa Rand - 1,724 1,724 - 1,806 1,806 South Korean Won 99 6,475 6,574 38 6,944 6,982 Swedish Krona - 3,993 3,993 13 4,712 4,725 Swiss Franc 97 5,855 5,952 43 5,257 5,300 Taiwan Dollar 242 7,260 7,502 169 8,948 9,117 Thailand Baht - 1,211 1,211 - 1,861 1,861 Turkish Lira - 219 219 - 345 345 US Dollar 2,852 250,507 253,359 10,205 316,541 326,746 Total 5,412 390,920 396,332 11,275 491,299 502,574

* For the purpose of the above disclosure, monetary is taken to include only cash or near-cash items.

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018 13 Derivatives and other financial instruments (continued) c) Interest rate risk Interest rate risk is the risk of movements in the value of financial instruments as a result of fluctuations in interest rates. The interest rate risk profile of the sub-fund’s financial assets and liabilities at 31 December 2018 (31 December 2017) was as follows:

Currency Variable rate Fixed rate Financial assets not financial assets financial assets carrying interest Total 31.12.18 £’000 £’000 £’000 £’000 Australian Dollar 8 - 6,218 6,226 Brazilian Real - - 3,222 3,222 Canadian Dollar 69 - 7,861 7,930 Chilean Peso - - 290 290 China Renminbi - - 845 845 Danish Krone - - 897 897 Euro 403 - 26,560 26,963 Hong Kong Dollar 46 - 24,775 24,821 Indian Rupee 10 - 7,353 7,363 Indonesian Rupiah - - 1,076 1,076 Japanese Yen 453 - 32,029 32,482 Malaysian Ringgit - - 1,028 1,028 Mexican Peso - - 519 519 Norwegian Krone - - 7 7 Philippines Peso - - 314 314 Polish Zloty - - 323 323 Singapore Dollar - - 1,588 1,588 South Africa Rand - - 1,724 1,724 South Korean Won - - 6,574 6,574 Sterling 2,415 - 46,272 48,687 Swedish Krona - - 3,993 3,993 Swiss Franc 17 - 5,935 5,952 Taiwan Dollar 109 - 7,400 7,509 Thai Baht - - 1,211 1,211 Turkish Lira - - 219 219 US Dollar 3,975 - 253,305 257,280 Total 7,505 - 441,538 449,043

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

13 Derivatives and other financial instruments (continued) c) Interest rate risk (continued)

Currency Variable rate Fixed rate Financial assets not financial assets financial assets carrying interest Total 31.12.17 £’000 £’000 £’000 £’000 Australian Dollar - - 8,654 8,654 Brazilian Real - - 3,051 3,051 Canadian Dollar 27 - 11,059 11,086 Danish Krone - - 1,321 1,321 Euro 212 - 35,356 35,568 Hong Kong Dollar 4 - 27,237 27,241 Indian Rupee 35 - 9,321 9,356 Indonesian Rupiah - - 790 790 Japanese Yen 477 - 44,804 45,281 Malaysian Ringgit 7 - 691 698 Mexican Peso - - 487 487 Norwegian Krone - - 8 8 Philippine Peso - - 261 261 Singapore Dollar - - 2,250 2,250 South Africa Rand - - 1,806 1,806 South Korean Won - - 6,982 6,982 Sterling 9,640 - 77,055 86,695 Swedish Krona 13 - 4,712 4,725 Swiss Franc 12 - 5,288 5,300 Taiwan Dollar 161 - 8,956 9,117 Thailand Baht - - 1,861 1,861 Turkish Lira - - 345 345 US Dollar 10,190 - 317,233 327,423 Total 20,778 - 569,528 590,306

Currency Variable rate Financial liabilities financial liabilities not carrying interest Total 31.12.18 £’000 £’000 £’000 Euro - (6) (6) Hong Kong Dollar - (23) (23) Japanese Yen - (66) (66) Mexican Peso (1) - (1) Sterling - (909) (909) Taiwan Dollar - (7) (7) US Dollar - (3,921) (3,921) Total (1) (4,932) (4,933)

Currency Variable rate Financial liabilities financial liabilities not carrying interest Total 31.12.17 £’000 £’000 £’000 Brazilian Real (260) - (260) Canadian Dollar - (44) (44) Japanese Yen - (54) (54) Malaysian Ringgit - (2) (2) Sterling - (1,192) (1,192) US Dollar - (677) (677) Total (260) (1,969) (2,229)

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

13 Derivatives and other financial instruments (continued) d) Credit risk Credit risk is the risk of suffering loss due to another party not meeting its financial obligation. The risk is managed by the Investment Adviser who monitors the credit profile of financial instruments in accordance with the objective and policy of the sub-fund. Adherence to the investment guidelines and the investment and borrowing powers as set out in the Scheme Particulars and in the rules of the Regulations also mitigates the risk of excessive exposure to any particular type of security or issuer. Further information on the investment portfolio is set out in the Investment Manager’s review and the Portfolio statement. e) Counterparty risk Certain transactions in financial instruments that a sub-fund enters into have the risk that the counterparty will not meet its financial obligations, i.e. the investment (purchase) or cash (sale) after the sub-fund has fulfilled its responsibilities. The sub-funds will only buy and sell investments through brokers which have been approved by the ACD and Investment Adviser as an acceptable counterparty. This is overseen by the Trustee to ensure that the exposure to any counterparty remains appropriate for investors. f) Liquidity risk Each sub-fund's assets comprise mainly of readily realisable securities which can be sold promptly to meet liquidity requirements. The main source of this risk comes from the obligation from shareholders to meet any cancellation of shares. Assets from a sub-fund may need to be sold to meet any redemption proceeds. As part of its operating duties the ACD regularly monitors the liquidity levels held on each sub-fund (cash and underlying securities) to ensure any redemptions can be readily met. Some investments may be less liquid than other securities and can be more sensitive to economic factors. The rules of the Regulations mitigates the risk of excessive exposure to assets which are not readily realisable. g) Market risk Market risk arises from uncertainty about future prices of financial instruments held. The main source of risk to the sub-fund is the potential movement in the value of financial instruments held as a result of price fluctuations. Stock market prices can move erratically and be unpredictably affected by diverse factors including political and economic events but also rumours and sentiment. The ACD adheres to the investment guidelines and borrowing powers set out within the Scheme Particulars and the COLL Sourcebook. In this way the ACD monitors and controls the exposure to risk from any type of security, sector or issuer. The sub-fund may also use derivative instruments to mitigate risk and reduce cost. h) Fair value of financial assets and liabilities There is no material difference between the carrying value of the financial assets and liabilities, as shown in the Balance sheet, and their fair value.

Basis of valuation 31.12.18 31.12.17 Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000

Level 1: Quoted prices 410,616 - 519,802 - Level 2: Observable market data 25,421 - 47,362 - Level 3: Unobservable data - - - - Total 436,037 - 567,164 - i) Sensitivity analysis The Investment Manager assesses the market risk of the Quilter Investors Global Dynamic Equity Fund, including any derivative exposures, using an Absolute Value at Risk (‘VaR’) methodology. VaR is a process that provides the Investment Manager with an estimate of the maximum potential loss that could be expected to occur as a result of changes in market prices over a given period of time in all but a given percentage of circumstances. As the sub-fund adopts an absolute VaR Model to measure the global market risk, the daily VaR limit for the sub-fund cannot be greater than 20 per cent of the Net Asset Value of the sub-fund. The VaR is calculated using a one-tailed 99 per cent confidence level, a one day holding period and the historical period of one year (250 Business Days). Derivatives are used to efficiently manage the tactical asset allocation positioning of the sub-fund, Quilter Investors Global Dynamic Equity Fund. The sub-fund uses absolute methodology to measure Value at Risk (VaR). The VaR for the sub-fund at 31 December 2018 was 12.20% (31 December 2017: 7.60%). The minimum, average and maximum VaR of the sub-fund over the year was 8.70%, 10.00% and 12.20% (31 December 2017: 7.50%, 8.50% and 9.50%). The Gross sum of notionals (GSON) leverage figures are prepared with no hedging or netting of any asset class. Across the range of asset classes exposures are treated differently. For instance currency forwards are treated by valuing both legs of the underlying and expressing them as a percentage of the NAV. Physical assets are excluded to get the incremental exposure resulting from derivatives. Using the “gross sum of notionals” methodology, the sub-fund has no significant leverage at the end of the current and prior year.

14 Contingent liabilities The sub-fund had no contingent liabilities at the Balance sheet date (31 December 2017: £Nil).

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018

15 Portfolio transaction costs

Analysis of total purchase costs Value Commissions Other costs 31.12.18 £'000 £'000 % £'000 %

Equities 222,350 102 0.05% 72 0.03% Collective Investment Schemes 437 - 0.11% - - Corporate actions 297 - - - - Total 223,084 102 72 Total purchases including transaction costs 223,258

Value Commissions Other costs 31.12.17 £'000 £'000 % £'000 %

Equities 261,414 205 0.08% 104 0.04% Collective Investment Schemes 62,703 2 - - - Corporate actions 834 - - - - Total 324,951 207 104 Total purchases including transaction costs 325,262

Analysis of total sale costs Value Commissions Other costs 31.12.18 £'000 £'000 % £'000 %

Equities 289,142 127 0.04% 41 0.01% Collective Investment Schemes 20,147 4 0.02% - - Corporate actions 572 - - - - Total 309,861 131 41 Total sales including transaction costs 309,689

Value Commissions Other costs 31.12.17 £'000 £'000 % £'000 %

Equities 497,514 367 0.07% 93 0.02% Collective Investment Schemes 73,622 10 0.01% - - Corporate actions 3,392 - - - - Total 574,528 377 93 Total sales including transaction costs 574,058

Transaction costs as a percentage of average Net Assets 31.12.18 31.12.17 Commissions: 0.04% 0.09% Taxes: 0.02% 0.03% Commissions on derivative transactions of £Nil (31 December 2017: £6,566). There were no taxes on derivative transactions (31 December 2017: £Nil). In the case of shares, transaction costs are paid by the sub-fund on each transaction, commissions relate to those paid to agents, advisers, brokers and dealers in the buying and selling of securities. Other costs include any additional fees that may be paid to agents, advisers, brokers and dealers as well as levies by regulatory agencies and security exchanges and any transfer taxes or duties. Unlike shares, other types of investments have no separately identifiable transaction costs, these costs form part of the dealing spread. Dealing spreads may vary considerably depending on the transaction value and market sentiment. At the balance sheet date the dealing spread was 0.13% (31 December 2017: 0.10%).

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Notes to the financial statements (continued) for the year from 1 January 2018 to 31 December 2018 16 Shareholders’ funds The sub-fund currently has four share classes; Accumulation 'A', Accumulation 'R', Accumulation 'A' EUR and Accumulation 'A' USD. The net asset value of each share class, net asset value per share and the number of shares in issue are given in the information pages for each sub-fund. The share classes currently in issue and the Authorised Corporate Director's fee of each share class are shown below:

31.12.18 31.12.17 – Accumulation 'A' 1.50% 1.50% – Accumulation 'A' EUR 1.50% 1.50% – Accumulation 'A' USD 1.50% 1.50% – Accumulation 'R' 0.50% 0.50%

Share class movement reconciliation Opening Issued Redeemed Converted Closing

– Accumulation 'A' 456,907,632 13,295,914 (79,659,666) (688) 390,543,192 – Accumulation 'A' EUR 811,936 790,357 (807,229) - 795,064 – Accumulation 'A' USD 2,705,896 17,132,147 (17,716,190) - 2,121,853 – Accumulation 'R' 21,393,396 921,043 (15,308,910) 655 7,006,184

17 Post balance sheet date events There are no post balance sheet events requiring disclosure.

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Distribution tables

Final distribution

Group 1: Shares purchased prior to 1 July 2018 Group 2 : Shares purchased from 1 July 2018 to 31 December 2018

Revenue Equalisation Distribution Distribution pence per share pence per share* paid 28.02.19 paid 28.02.18 pence per share pence per share Accumulation 'A' Shares Group 1 0.0000 - 0.0000 0.0000

Group 2 0.0000 0.0000 0.0000 0.0000

Accumulation 'A' EUR Shares Group 1 0.0000 - 0.0000 0.0000

Group 2 0.0000 0.0000 0.0000 0.0000

Accumulation 'A' USD Shares Group 1 0.0000 - 0.0000 0.0000

Group 2 0.0000 0.0000 0.0000 0.0000

Accumulation 'R' Shares Group 1 0.4628 - 0.4628 0.2821

Group 2 0.1709 0.2919 0.4628 0.2821

Interim distribution

Group 1: Shares purchased prior to 1 January 2018 Group 2 : Shares purchased from 1 January 2018 to 30 June 2018

Distribution Distribution Revenue Equalisation paid 31.08.18 paid 31.08.17 pence per share pence per share* pence per share pence per share Accumulation 'A' Shares Group 1 0.0116 - 0.0116 0.0000

Group 2 0.0026 0.0090 0.0116 0.0000

Accumulation 'A' EUR Shares Group 1 0.0175 - 0.0175 0.0001

Group 2 0.0175 0.0000 0.0175 0.0001

Accumulation 'A' USD Shares Group 1 0.0151 - 0.0151 0.0000

Group 2 0.0151 0.0000 0.0151 0.0000

Accumulation 'R' Shares Group 1 0.5553 - 0.5553 0.5710 Group 2 0.5284 0.0269 0.5553 0.5710

* Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

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Accounting policies a) Basis of accounting The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments, in compliance with FRS 102 and in accordance with the Statement of Recommended Practice for Authorised Funds (SORP) issued by the Investment Management Association in May 2014. b) Recognition of revenue Dividends on quoted ordinary shares, preference shares and distributions on holdings in Collective Investment Schemes are recognised when the securities are quoted ex-dividend. Where such securities are not quoted, dividends are recognised when they are declared. Nominal interest on interest bearing securities and bank interest are recognised on an accruals basis. Accrued interest purchased and sold on interest bearing securities is excluded from the capital cost of these securities and dealt with as part of the revenue of the sub-fund. Revenue arising on debt securities that are purchased at a discount/premium to the maturity value is amortised or accumulated over the life of such securities and recognised at a consistent rate over the life of the instrument (effective yield basis). This basis uses the effective interest rate of the security to discount exactly the expected stream of future cash flows to the current net carrying value of the security. All distributions from accumulation holdings in Collective Investment Schemes are treated as revenue. The equalisation component of collective investment scheme distributions has been recognised as capital. c) Treatment of stock dividends Ordinary stock dividends are recognised wholly as revenue and are based on the market value of the shares on the dates they are quoted ex-dividend. Where an enhancement is offered, the amount by which the market value of the shares (on the date they are quoted ex-dividend) exceeds the cash dividend is taken to capital. The ordinary element of stock dividends is treated as revenue but does not form part of the distribution. d) Special dividends and share buy-backs The underlying circumstances behind both special dividends and share buy backs are reviewed on a case by case basis in determining whether the amount is revenue or capital in nature. Amounts recognised as revenue will form part of the distribution. Any tax treatment will follow the accounting treatment of the principal amount. e) Underwriting commission Underwriting commission is wholly recognised as revenue when the issue takes place, except where the sub-fund is required to take up some or all of the shares underwritten, in which case an appropriate proportion of the commission received is deducted from the cost of those shares. f) Treatment of expenses All expenses, except those relating to the purchase and sale of investments, are included in expenses, in the Statement of Total Return. Expenses are recognised on an accruals basis and include irrecoverable VAT where appropriate. g) Revenue allocation to share classes Revenue is allocated to the share classes of each sub-fund based on the proportion of assets held within each share class. h) Rebate of Authorised Corporate Director’s periodic charge from underlying instruments The sub-funds may be entitled to a rebate of Authorised Corporate Director’s charge, or is sometimes paid as renewal commission, when it holds underlying investments in Collective Investment Schemes. This is accrued daily and treated as revenue or capital depending on the treatment of the ACD charge in the underlying investment. i) Taxation and deferred taxation Provision is made for corporation tax at the current rate on the excess of taxable revenue over allowable expenses. Provision is made on all material timing differences arising from the different treatment of items for accounting and tax purposes. A deferred tax asset is recognised only to the extent that there will be taxable profits in the future against which the asset can be offset. j) Distribution policy All of the net revenue available for distribution at the end of both interim and final distribution periods will be distributed to shareholders. Any share class in deficit of revenue will be made-up from the capital attributable to that share class. Should taxation and expenses taken together exceed revenue, there will be no distribution and the shortfall will be met by capital. For all sub-funds, equalisation received on collective investment scheme distributions will be distributed.

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Quilter Investors Series I

Accounting policies (continued) k) Basis of valuation of investments The investments of the sub-fund are valued at noon bid prices on the last business day of the accounting year. Any unquoted or suspended investments are valued at the ACD’s valuation taking into account, where appropriate, latest dealing prices, valuations from reliable sources, financial performance and other relevant factors. The ACD may apply a fair value price determined in accordance with the COLL Sourcebook if it has reasonable grounds for believing that no reliable price exists for a security at a valuation point or the most recent price available does not reflect the ACD’s best estimate of the value at the valuation point. Where a sub-fund invests in securities markets that are closed for trading (including planned stock exchange closures) at the sub-fund's valuation point, there is a risk that the price calculated is not representative of the markets in which it invests due to developments since the market’s closure. Potentially this could lead to gains or losses on the sub-fund as it opens a window for investors or market timers to buy or sell at stale prices. An example would be when a sub-fund is priced using end of day prices from a market which closed for trading for a material period prior to the sub-fund's valuation point, for example, a UK Fund which is invested in US stocks, valuing at 12 noon UK time and using US asset prices from the previous day close of the US market within the sub-fund valuation. During this period it may be concluded that prices may change significantly when the market re-opens, based on a global event or on indications from the global futures markets. In this scenario, the ACD has the power to invoke a fair value price to give our best estimate of the value of the market or asset in question using a reliable source. A delegated committee is responsible for the monitoring and approval of any fair value pricing decisions. The fair value pricing policy for the Quilter Investors Series I differs depending on the type of instruments held within the Portfolio, their economic exposure and the materiality of any fair value adjustment. The fair value pricing policy is regularly reviewed by the Depositary of the sub-funds to ensure adherence to the COLL Sourcebook. Authorised unit trusts and collective investment schemes operated by Quilter Investors have been valued at cancellation price, for all other such funds they have been valued at bid price. Single priced authorised unit trusts and collective investment schemes have been valued at the dealing price and open-ended investment companies have been valued at the latest available bid price. l) Exchange rates Assets and liabilities in foreign currencies are translated into sterling at the exchange rates ruling at close of business on the last business day of the accounting year. Revenue items in foreign currencies are translated into sterling at the exchange rates ruling when the revenue is received. m) Financial instruments Where appropriate, certain permitted financial instruments such as derivatives or forward currency contracts are used for efficient portfolio management. Where such financial instruments are used to protect or enhance revenue, the revenue and expenses derived therefrom are included in “revenue” or “expenses” in the statement of total return. Where such financial instruments are used to protect or enhance capital, the gains and losses derived therefrom are included in “Net capital gains/(losses) in the statement of total return. Any positions on such financial instruments open at the year end are reflected in the balance sheet at their market value at the close of business on the last business day of the accounting year. Assets and liabilities in foreign currencies are translated into sterling at the exchange rates ruling at close of business on the last business day of the accounting year. n) Dilution policy The ACD has discretion to require a dilution adjustment to the price of a share on the purchase or redemption of shares in the sub-fund. The ACD's policy is to make a dilution adjustment when the ACD believes it is in the interest of the shareholders to do so.

72 Quilter Investors Series I