Kames Capital Investment Company (Ireland) Plc

(An open-ended umbrella investment company with variable capital and segregated liability between sub- funds)

(Registered Number 442106)

Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Table of Contents

Page

Directory 2-3

General Information 4-7

Directors’ Report 8-15

Investment Manager’s Report 16-43

Depository’s Report 44

Independent Auditor’s Report 45-49

Statement of Comprehensive Income 50-57

Statement of Financial Position 58-65

Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders 66-69

Notes to the Financial Statements 70-204

Portfolio of Investments 205-247

Portfolio Changes (Unaudited) 248-268

Global Derivative Exposure (Unaudited) 269

Total Expense Ratios (Unaudited) 270-273

Performance Figures (Unaudited) 274-289

Securities Financial Transactions Regulations (Unaudited) 290

Remuneration Policy (Unaudited) 291-292

Supplemetary Information (Unaudited) 293

1 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Directory

Board of Directors Mr. Mike Kirby* (Irish) Mr. Andrew Bell* (British) (resigned 13 December 2018) Ms.Bronwyn Wright** (Irish) Mr. Stuart Donald* (British) (appointed 9 April 2019) Investment Manager, Promoter Kames Capital Plc and Distributor Kames House 3 Lochside Crescent Edinburgh EH12 9SA United Kingdom

Aegon Investment Management BV*** AEGONplein 50 2591 TV The Hague Netherlands

Depositary Citi Depositary Services Ireland Designated Activity Company (DAC) 1 North Wall Quay Dublin 1 Ireland

Administrator Citibank Europe Plc 1 North Wall Quay Dublin 1 Ireland Independent Auditors PricewaterhouseCoopers 1 Spencer Dock North Wall Quay Dublin 1 Ireland

Irish Legal Advisers Matheson (From 1 March 2019) 70 Sir Johns Rogerson’s Quay Dublin 2 Ireland

A&L Goodbody Solicitors (Until 28 February 2019) International Financial Services Centre North Wall Quay Dublin 1 Ireland

Sponsoring Brokers Matheson (From 1 March 2019) 70 Sir Johns Rogerson’s Quay Dublin 2 Ireland

A&L Listing Limited (Until 28 February 2019) International Financial Services Centre North Wall Quay Dublin 1 Ireland

2 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Directory (continued)

Secretary Matheson (From 1 March 2019) 70 Sir Johns Rogerson’s Quay Dublin 2 Ireland

Goodbody Secretarial Limited (Until 28 February 2019) International Financial Services Centre North Wall Quay Dublin 1 Ireland

Registered Office Matheson 70 Sir Johns Rogerson’s Quay Dublin 2 Ireland

* Denotes Non-Executive Director. ** Denotes independent non-executive Director. *** Kames Global Diversified Income Fund and Kames Global Diversified Growth Fund have partially delegated investment management to Aegon Investment Management BV.

3 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

General Information

Structure

Kames Capital Investment Company (Ireland) Plc (the “Company”) is structured as an umbrella type open- ended investment company with variable capital consisting of a number of different sub-funds (“Funds”), incorporated on 25 June 2007 under the Companies Act 2014 (as amended) and is authorised in Ireland pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended) (“the UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019 (as amended) (the “Central Bank UCITS Regulations”) supplemented or consolidated from time to time. Accordingly, the Company is supervised by the Central Bank of Ireland (the “Central Bank”).

Shares representing interests in different Funds may be issued from time to time by the Directors. Shares of more than one class may be issued in relation to a Fund. All shares of each class will rank pari passu save as provided for in the relevant Supplement. A separate portfolio of assets will be maintained for each Fund (and accordingly not for each class of shares) and will be invested in accordance with the investment objective and policies applicable to such Fund.

The Company has segregated liability between its Funds and accordingly any liability incurred on behalf of or attributable to any Fund shall be discharged solely out of the assets of that Fund.

The Company lists the majority of its share classes on Euronext Dublin. All share classes that are listed on Euronext Dublin can be found on the Euronext Dublin website (https://www.euronext.com/en/markets/dublin).

As at 31 October 2019, the Company has ten active Funds in existence, all of which are open to new subscriptions:

Kames Strategic Global Bond Fund Kames Investment Grade Global Bond Fund Kames High Yield Global Bond Fund Kames Absolute Return Bond Fund Kames Global Equity Income Fund Kames Global Diversified Income Fund Kames Global Sustainable Equity Fund Kames Global Diversified Growth Fund Kames Global Equity Market Neutral Fund Kames Short Dated High Yield Global Bond Fund

Kames Equity Market Neutral Plus Fund, Kames Active Long Dated Bond Fund, Kames Equity Market Neutral Fund, Kames Emerging Market Bond Opportunities Fund, Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund are now closed to new subscriptions and are in the process of termination as at 31 October 2019.

4 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

General Information (continued)

Investment Objectives and Policies of the Funds Kames Strategic Global Bond Fund

The investment objective of the Kames Strategic Global Bond Fund is to maximise total return (income plus capital). The Fund will seek to achieve its investment objective by investing at least two thirds of its net assets in global debt instruments in any currency, ranging from AAA Government Bonds through to High Yield and Emerging Market Bonds. The Investment Grade and AAA Government Bond sector includes all fixed income securities available globally.

The Fund may invest in government and corporate bonds which may be at a fixed or floating rate, rated or unrated.

Kames Investment Grade Global Bond Fund

The investment objective of the Kames Investment Grade Global Bond Fund is to maximise total return (income plus capital).

The Fund will seek to achieve its investment objective by investing primarily in Investment Grade Government and Corporate bonds in any currency which may be at a fixed or floating rate, rated or unrated (deemed to have an equivalent rating by the Investment Manager). The Fund may also hold selected High Yield bonds and cash.

Kames High Yield Global Bond Fund

The investment objective of the Kames High Yield Global Bond Fund is to maximise total return (income plus capital).

The Fund will seek to achieve its investment objective by investing at least two thirds of its net assets in High Yield bonds (i.e. securities having a rating of Ba1 by Moody's or below or BB+ by Standard and Poor's or below, or other debt instruments deemed by the Investment Manager to be of similar credit quality) in any currency, which may be government or corporate, and which may be at a fixed or floating rate, rated or unrated. The Fund may also hold selected Investment Grade bonds and cash.

The Fund will invest primarily in High Yield bonds whose credit rating is rated below Investment Grade.

Kames Absolute Return Bond Fund

The investment objective of the Kames Absolute Return Bond Fund is to generate positive absolute returns for investors over a rolling 3 year period irrespective of market conditions.

The Fund will seek to achieve its investment objective by investing in global debt instruments in any currency, ranging from AAA Government Bonds through to High Yield and Emerging Market Bonds. The Fund may invest in all types of fixed and floating rate fixed income securities.

Kames Global Equity Income Fund

The investment objective of the Kames Global Equity Income Fund is to provide income and capital growth over the longer term by investing in the global equities market. The Fund will aim to deliver a yield higher than that generally available from investment in global equities.

In seeking to achieve its investment objective the Fund intends to invest primarily in a portfolio of global equity securities providing an above average yield (i.e. a higher yield than the yield of the overall global equity market). The Fund may also invest to a limited extent, in other securities and instruments.

5 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

General Information (continued)

Kames Active Long Dated Bond Fund(2)

The investment objective of the Kames Active Long Dated Bond Fund was to maximise total return (income plus capital) whilst aiming to better manage exposure to interest rate and inflation risk.

The Fund sought to achieve its investment objective by investing in a portfolio of government and corporate bonds, including index-linked bonds. The Financial Derivative Instrument (“FDI”) was utilised to tailor the Fund's interest rate, inflation and broad credit exposure to the Investment Manager's outlook for interest rates, inflation and broad credit risk.

The Fund invested in a variety of global debt instruments in any currency, ranging from AAA Government Bonds through to Sub-Investment Grade bonds which are also known as High Yield bonds.

Kames Equity Market Neutral Plus Fund(1)

The investment objective of the Kames Equity Market Neutral Plus Fund was to generate strong positive absolute returns for investors over a rolling 3 year period irrespective of market conditions.

The Fund sought to achieve its investment objective by investing in companies based in the UK, principally conducting business in the UK or listed in the UK stock market. The Fund could also invest up to 10% in companies which were not UK companies. The Fund invested in these companies or equity indices primarily using FDIs but could also invest directly in equities. The Fund could also invest to a limited extent in other securities and instruments.

Kames Equity Market Neutral Fund(3)

The investment objective of the Kames Equity Market Neutral Fund was to generate positive absolute returns for investors over a rolling 3 year period irrespective of market conditions.

Kames Absolute Return Bond Global Fund(5)

The investment objective of the Kames Absolute Return Bond Global Fund was to generate positive absolute returns for investors over a rolling 3 year period irrespective of market conditions with Sterling being the base currency of the Fund.

The Fund sought to achieve its investment objective by investing in global debt instruments in any currency, ranging from AAA Government Bonds through to High Yield and Emerging Market Bonds. The Fund could invest in all types of fixed and floating rate fixed income securities and also in FDIs.

Kames Absolute Return Bond Constrained Fund(5)

The investment objective of the Kames Absolute Return Bond Constrained Fund was to generate positive absolute returns for investors over a rolling 3 year period irrespective of market conditions with Euro being the base currency of the Fund.

It was expected that the Kames Absolute Return Bond Constrained Fund would have a slightly lower risk profile than the Kames Absolute Return Bond Global Fund.

6 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

General Information (continued)

Kames Emerging Market Bond Opportunities Fund(4)

The investment objective of the Kames Emerging Market Bond Opportunities Fund was to maximise total return (income plus capital).

The Fund sought to achieve its investment objective by investing in Global Bonds and/or derivatives where the underlying assets are bonds in various currencies, ranging from AAA Government Bonds through to High Yield and Emerging Market Bonds. The Fund invested at least 80% of its net assets in Emerging Market Bonds and separately, 100% in Investment Grade bonds. The Fund could invest in both sovereign and corporate Emerging Market Bonds.

Kames Global Diversified Income Fund

The investment objective of the Kames Global Diversified Income Fund is to provide income with the potential for capital growth over the medium term.

The Fund will seek to achieve its investment objective by investing predominantly in a diversified portfolio of equities and bonds denominated in any currency. The Fund's exposure to the equities and bonds may be obtained through direct investment or through the FDIs.

Kames Global Sustainable Equity Fund

The investment objective of the Kames Global Sustainable Equity Fund is to maximise total return (income plus capital).

The Fund will seek to achieve its investment objective by investing directly in a diversified portfolio of global equity securities which meet the Fund’s predefined sustainability criteria. The Fund is not constrained by any index weightings and will not concentrate on any particular sector. There are no currency or geographical limitations on the Fund’s investments.

Kames Global Diversified Growth Fund

The investment objective of the Kames Global Diversified Growth Fund is to maximise total return (income plus capital) over the medium term at a lower risk than global equity markets by investing in a diversified portfolio of global assets.

Kames Global Equity Market Neutral Fund

The investment objective of the Kames Global Equity Market Neutral Fund is to generate positive absolute returns over a rolling 3 year period irrespective of market conditions by investing in the global equities market.

The Fund will seek to achieve its investment objective by investing in companies listed or traded on a recognised market. The Fund will invest in these companies or equity indices primarily using FDIs such as swaps and contracts for difference but may also invest directly in equities.

Kames Short Dated High Yield Global Bond Fund

The investment objective of the Fund is to maximise total return (income plus capital). The Fund will seek to achieve its investment objective by investing at least two thirds of its net assets in High Yield bonds in any currency, which may be government or corporate, and which may be at a fixed or floating rate, rated or unrated. The Fund’s exposure to bonds may be obtained through direct investment or through the FDIs. The Fund may also hold selected Investment Grade bonds and cash.

(1) Kames Equity Market Neutral Plus Fund closed on 2 February 2018. (2) Kames Active Long Dated Bond Fund closed on 8 May 2018. (3) Kames Equity Market Neutral Fund closed on 2 July 2018. (4) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. (5) Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Contrained Fund closed on 30 October 2019. 7 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Directors’ Report

The Directors present their annual report and audited financial statements for the financial year ended 31 October 2019.

Statement of Directors’ Responsibilities in respect of the Financial Statements

The Directors are responsible for preparing the Annual Report and financial statements in accordance with applicable law and regulations. Under Irish company law the Directors have elected to prepare the financial statements in accordance with FRS 102 Financial Reporting Standard applicable in the UK and Republic of Ireland issued by the Financial Reporting Council (“FRC”) and European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended) (“the UCITS Regulations”).

Irish company law requires the Directors to prepare financial statements for each financial year, which give a true and fair view of the state of assets, liabilities and financial position of Kames Capital Investment Company (Ireland) Plc (the “Company”), as at the end of the financial year, and of the profit or loss of the Company for that financial year. In preparing those financial statements, the Directors are required to:

 select suitable accounting policies and then apply them consistently;  make judgements and estimates that are reasonable and prudent;  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and  state whether the financial statements have been prepared in accordance with applicable accounting standards and identify the standards in question, subject to any material departures from those standards being disclosed and explained in the notes to the financial statements.

The Directors confirm that they have complied with the above requirements in preparing the financial statements.

The Directors are responsible for keeping adequate accounting records which correctly explain and record the transactions of the Company, enable at any time the assets, liabilities, financial position and profit or loss of the Company to be determined with reasonable accuracy, enable them to ensure that the financial statements and Directors’ report comply with the Companies Act 2014 (as amended), the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) (“the UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019 (as amended) (“the Central Bank UCITS Regulations)” and enable the financial statements to be audited. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Under the UCITS Regulations, the Directors are required to entrust the assets of the Company to a Depositary for safekeeping. In carrying out this duty, the Directors have delegated custody of the Company’s assets to Citi Depositary Services Ireland DAC.

Statement on relevant audit information

The Directors confirm so far as they are aware that there is no relevant audit information of which the Company’s statutory auditors are unaware. The Directors have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the Company’s statutory auditors are aware of that information.

8 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Directors’ Report (continued)

Corporate Governance Code

General Principles

The European Communities (Directive 2006/46/EC) Regulation and Section 1373 of the Companies Act 2014 (the “Regulations”) require the inclusion of a corporate governance statement in the Directors’ Report.

The Company is subject to corporate governance practices imposed by:

(i) The Irish Companies Act 2014 which are available for inspection at the registered office of the Company; and may also be obtained at http://www.irishstatutebook.ie

(ii) The Articles of Association of the Company which are available for inspection at the registered office of the Company at 25/28 North Wall Quay, IFSC, Dublin 1 and at the Companies Registration Office in Ireland; and

(iii) The Central Bank of Ireland (“Central Bank”) in their Central Bank UCITS Regulations which can be obtained from the Central Bank’s website at: http://www.centralbank.ie/regulation/industry- sectors/funds/ucits/Pages/default.aspx and are available for inspection at the registered office of the Company; and

(iv) Euronext through the Euronext Code of Listing Requirements and Procedures which can be obtained from Euronext’s website at: https://www.euronext.com/sites/default/files/2019-06/Open-Ended-Fund-Rules.pdf

The Board of Directors is responsible for overseeing the operations of the Company. To assist the Board of Directors in the performance of its duties, the Company has appointed Clifton Fund Consulting Limited trading as KB Associates as a consultant. Mr. Saul Campbell and Mr. Aengus Galloway of KB Associates act as Designated Persons to the Company with responsibility for the management functions for the Company as set out in the Company’s Business Plan. Mr. Campbell and Mr. Galloway are located in Ireland.

The Board of Directors voluntarily complies with the Corporate Governance Code for Collective Investment Schemes and Management Companies as published by the Irish Funds Industry Association (the “IF Code”) in December 2011, as the Company’s corporate governance code and which can be obtained at http://www.irishfunds.ie/regulatory-technical/corporate-governance. The Board of Directors has assessed the measures included in the IF Code as being consistent with its corporate governance practices and procedures for the financial year.

Internal Control and Risk Management Systems in Relation to Financial Reporting

The Board of Directors is responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of error or fraud in achieving the Company’s financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The Board of Directors has procedures in place to ensure all relevant accounting records are properly maintained and are readily available, including production of annual and half-yearly financial statements. The annual and half-yearly financial statements of the Company are required to be approved by the Board of Directors of the Company, the annual and half-yearly financial statements of the Company are required to be filed with the Central Bank and the annual financial statements of the Company are required to be filed with Euronext. The annual statutory financial statements are required to be audited by independent auditors who report annually to the Board of Directors on their findings.

9 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Directors’ Report (continued)

Internal Control and Risk Management Systems in Relation to Financial Reporting (continued)

The Board of Directors evaluates and discusses significant accounting and reporting issues as the need arises. The Board of Directors has appointed Citibank Europe Plc as its Administrator. The Administrator maintains the books and records of the Company. The Administrator is authorised and regulated by the Central Bank and must comply with the rules imposed by the Central Bank. From time to time the Board of Directors also examines and evaluates the Administrator’s financial accounting and reporting routines and monitors and evaluates the external auditors’ performance, qualifications and independence. Dealings with Shareholders

The convening and conduct of shareholders’ meetings are governed by the Articles of Association of the Company and the Companies Acts. Although the Directors may convene an extraordinary general meeting of the Company at any time, the Directors are required to convene an annual general meeting of the Company within fifteen months of the date of the previous annual general meeting. Shareholders representing not less than one tenth of the paid up share capital of the Company may also request the Directors to convene a shareholders’ meeting. Not less than twenty one days’ notice of every annual general meeting and any extraordinary general meeting convened for the passing of a special resolution must be given to shareholders and fourteen days’ notice must be given in the case of any other extraordinary general meeting unless the auditors of the Company and all the shareholders of the Company entitled to attend and vote agree to shorter notice.

Two members present either in person or by proxy constitute a quorum at a general meeting provided that the quorum for a general meeting convened to consider any alteration to the class rights of shares is two shareholders holding or representing by proxy at least one third of the issued shares of the relevant Fund or class.

Every holder of participating shares present in person or by proxy who votes on a show of hands is entitled to one vote and the holder(s) of subscriber shares present in person or by proxy shall have one vote in respect of all the subscriber shares in issue. On a poll, every holder of participating shares present in person or by proxy is entitled to one vote in respect of each share held by him and every holder of a subscriber share present in person or by proxy is entitled to one vote in respect of his holding of subscriber shares.

Shareholders may resolve to sanction an ordinary resolution or special resolution at a shareholders’ meeting. An ordinary resolution of the Company or the shareholders of a particular Fund requires a simple majority of the votes cast by the shareholders voting in person or by proxy at the meeting at which the resolution is proposed. A special resolution of the Company requires a majority of not less than 75% of the shareholders present in person or by proxy and voting in general meeting in order to pass a special resolution including a resolution to amend the Articles of Association. Board composition and activities

Unless otherwise determined by an ordinary resolution of the Company in the general meeting, the number of Directors may not be less than three. Currently the Board of Directors of the Company is composed of three Directors, being those listed in the Directory in these financial statements.

The business of the Company is managed by the Directors, who exercise all such powers of the Company as are required by the Companies Acts or by the Articles of Association of the Company.

A Director may, and the company secretary of the Company on the requisition of a Director will, at any time summon a meeting of the Directors. Questions arising at any meeting of the Directors are determined by a majority of votes. In the case of an equality of votes, the chairman has a second or casting vote. The quorum necessary for the transaction of business at a meeting of the Directors is two.

There are no sub-committees of the Board of Directors.

10 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Directors’ Report (continued)

Directors’ Compliance Statement

It is the policy of the Company to comply with its relevant obligations (as defined in the Companies Act 2014). As required by Section 225(2) of the Companies Act 2014, the Directors acknowledge that they are responsible for securing the Company’s compliance with the relevant obligations. The Directors have drawn up a compliance policy statement as defined in Section 225(3)(a) of the Companies Act 2014 and a compliance policy which refers to the arrangements and structures that are in place and which are, in the Directors’ opinion, designed to secure material compliance with the Company’s relevant obligations. The Directors have performed a review, during the financial year, of the arrangements and structures in place to ensure material compliance with the Company’s relevant obligations.

Principal Activities

Please refer to General Information, for a summary of the Company’s principal activities.

Review of the Development of the Business and Future Developments

The Directors have entrusted the management of the Funds to the Investment Manager. The investment management activities, the details of the development of the Funds over the last financial year and the future plans for the Funds are reviewed in detail in the Investment Manager’s Report.

As the Investment Manager and Distributor of the Company’s Funds are UK based the Board are aware of and are monitoring on an ongoing basis developments in relation to Brexit with due consideration being given to impacts of Brexit on investors, on the day to day operations of the Company/its Funds, the impact of the Brexit on the investments of Company/its Funds and to the delivery of investment strategies.

Risk management objectives and policies

The Company has been approved by the Central Bank as an Undertakings for Collective Investments in Transferable Securities (“UCITS”) Fund. It is an umbrella Fund which at the date of this report consisted of ten active Funds. All Funds were operational during the financial year under review.

A detailed review of the principal risks and the management of those risks are included in Note 12 to the Financial Statements.

Results

The financial position and results for the financial year are set out in Statement of Financial Position and the Statement of Comprehensive Income.

Detailed distributions are disclosed in Note 9 of the notes to the financial statements.

The increase in net assets attributable to the shareholders of the Company for the financial year amounted to USD 145,398,047 (2018: decrease of USD 148,122,173).

11 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Directors’ Report (continued)

Events during the financial year On 13 December 2018, Andrew Bell resigned as a Director of the Company.

Kames Global Diversified Growth Fund re-launched Share Class B CHF (Accumulation) Hedged on 19 December 2018 which was fully redeemed on 1 December 2017.

The following share classes were launched on 19 December 2018:

Sub-Fund Share Class Global Diversified Income Fund Class A CHF (Income) Hedged Global Diversified Growth Fund Class A CHF (Accumulation) Hedged

The following share classes were closed on 21 December 2018:

Sub-Fund Share Class Absolute Return Bond Global Fund Class C EUR (Income) Hedged

Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019.

Matheson were appointed as the Company’s Irish Legal Advisers and Secretary on 1 March 2019.

The following share class was launched on 2 April 2019:

Sub-Fund Share Class Class A EUR (Accumulation) Unhedged and A EUR Global Sustainable Equity Fund (Income) Unhedged

Stuart Donald was appointed as a non-executive Director on 9 April 2019.

The following share classes were closed on 12 April 2019:

Sub-Fund Share Class Strategic Global Bond Fund Class B CHF (Accumulation) Hedged Investment Grade Global Bond Fund Class B SEK (Accumulation) Hedged High Yield Global Bond Fund Class B SEK (Accumulation) Hedged Absolute Return Bond Fund Class H US Dollar (Accumulation) Hedged Class C EUR (Accumulation) Unhedged and Class C SEK Global Equity Income Fund (Accumulation) Unhedged Absolute Return Bond Global Fund Class C SEK (Accumulation) Hedged Class C GBP (Accumulation) Hedged, Class C SEK (Accumulation) Hedged and Class C US Dollar Absolute Return Bond Constrained Fund (Accumulation) Hedged Class B SEK (Accumulation) Unhedged, Class C EUR (Income) Unhedged, and Class C US Dollar (Accumulation) Global Sustainable Equity Fund Unhedged Class B CHF (Accumulation) Hedged, Class C CHF (Accumulation) Hedged, Class B SEK (Accumulation) Hedged, Class P CHF (Accumulation) Hedged, Class P EUR (Accumulation) Hedged, Class P GBP (Accumulation) Global Equity Market Neutral Fund Unhedged and Class P US Dollar (Accumulation) Hedged Short Dated High Yield Global Bond Fund Class B EUR (Accumulation) Hedged

Kames Absolute Return Bond Fund re-launched Share Class H EUR (Accumulation) Hedged on 26 April 2019 which was closed on 15 March 2019.

12 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Directors’ Report (continued) Events during the financial year (continued) Kames Strategic Global Bond Fund closed Share Class S US Dollar (Income) Unhedged on 21 June 2019. The following share classes were closed on 25 July 2019:

Sub-Fund Share Class Strategic Global Bond Fund Class L EUR (Accumulation) Hedged Investment Grade Global Bond Fund Class L EUR (Accumulation) Hedged High Yield Global Bond Fund Class L EUR (Accumulation) Hedged The following share classes were closed on 30 September 2019:

Sub-Fund Share Class Class B SEK (Accumulation) Hedged and Class J US Dollar Strategic Global Bond Fund (Accumulation) Unhedged Class A US Dollar (Income) Unhedged and Class B CHF Investment Grade Global Bond Fund (Accumulation) Hedged Class A US Dollar (Accumulation) Unhedged, Class A EUR (Accumulation) Unhedged, Class B EUR (Accumulation) Global Equity Income Fund Unhedged and Class B US Dollar (Income) Unhedged Class B CHF (Accumulation) Unhedged and Class B EUR Global Sustainable Equity Fund (Income) Unhedged Global Diversified Income Fund Class B SEK (Income) Hedged Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

Please refer to Note 9 for details of dividends declared by the Directors for the Income Share Classes during the financial year. There have been no other significant events during the financial year.

Events after the Statement of Financial Position date

On 31 January 2020, the Directors declared the following dividends for the Income Share Classes on the following sub-funds: Kames Strategic Global Bond Fund USD 187,575 Kames Investment Grade Global Bond Fund USD 145,116 Kames High Yield Global Bond Fund USD 894,200 Kames Absolute Return Bond Fund GBP 820,925 Kames Global Equity Income Fund USD 347,341 Kames Global Sustainable Equity Fund EUR 48 Kames Global Diversified Growth Fund EUR 95 Kames Short Dated High Yield Global Bond Fund USD 407,776 The Directors declared the following dividends for the Income Share Classes on Kames Global Diversified Income Fund: 29 November 2019 - EUR 395,978, 31 December 2019 - EUR 437,595 and 31 January 2020 - EUR 455,333. The following share classes were launched on 10 January 2020: Sub-Fund Share Class Strategic Global Bond Fund Class C NOK (Accumulation) Hedged Investment Grade Global Bond Fund Class C NOK (Accumulation) Hedged

Kames Short Dated Investment Grade Fund launched on 30 January 2020.

Aegon Asset Management is undertaking a rebranding exercise to align all of its brands, including Kames Capital, and during 2020 a new governance structure will be put in place, together with a rebranding expected to take place sometime after mid-2020.

There have been no other significant events since the financial year end. 13 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Directors’ Report (continued)

Directors

The Directors of the Company during the financial year were: Mr. Mike Kirby Mr. Andrew Bell* Ms. Bronwyn Wright Mr. Stuart Donald** * Andrew Bell resigned as a Director on 13 December 2018. ** Stuart Donald was appointed as a Director on 9 April 2019.

Directors’ and Secretary’s Interests

Apart from those noted below, none of the Directors and Secretary held any interests in the Company as at 31 October 2019 or at any point during the financial year (2018: None).

Mike Kirby is a Director and majority shareholder of KB Associates, a firm which provides consultancy, VAT reporting and money laundering reporting officer services to the Company. Please refer to Note 14 for details of fees paid to KB Associates.

Andrew Bell was an employee and a Director of Kames Capital Plc, the Investment Manager of the Company until 13 December 2018.

Stuart Donald is an employee of Kames Capital Plc, the Investment Manager.

Please refer to the “Directors’ Fees” Note 11 for details of transactions to the Directors’ respective entities during the financial year.

Connected Persons

Regulation 43 of the Central Bank UCITS Regulations ‘Restrictions of transactions with connected persons” states that ‘A responsible person shall ensure that any transaction between a UCITS and a connected person is conducted a) at arm’s length; and b) in the best interest of the unit holders of the UCITS”.

As required under Central Bank UCITS Regulation 78.4, the Directors, as responsible persons are satisfied that there are in place arrangements, evidenced by written procedures, to ensure that the obligations that are prescribed by Regulation 43(1) are applied to all transactions with a connected person; and all transactions with connected parties that were entered into during the financial year to which the report relates complied with the obligations that are prescribed by Regulation 43(l). Diversity Policy Owing to the organisational structure and operating model of the Company, whereby most activities/operational tasks have been delegated by the Company to the various service providers to the Company, the only employees of the Company are the Directors.

The Board, acknowledges the importance of diversity to enhance its operation. During the selection process the Board is committed to selecting those with diversity of business skills, experience and gender and candidates for appointment are considered based on these attributes.

The Board’s principle is that each member of the Board must have the skills, experience, knowledge and overall suitability that will enable each director to contribute individually, and as part of the Board team, to the effectiveness of the Board.

Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report

Kames Strategic Global Bond Fund

Performance

The Fund returned 10.62% [B Inc USD] over the twelve month period, outperforming against a peer group median return of 8.25%. Market Backdrop The period began in the midst of a market sell-off. Starting in October, and driven by a number of economic headwinds – perhaps most notably the fear of the Federal Reserve over-tightening policy rates – credit spreads widened significantly, while government bond yields fell as money rushed into ‘safe havens’ and out of risk assets. This sell-off continued through the end of 2018, leaving most risk assets in the red for the year.

As quickly as the downturn began, it reversed course at the beginning of 2019. Credit yields fell steadily, with riskier high yield markets outperforming investment grade bonds, a sign of how sharply sentiment turned positive in the new year. Government bond yields also fell precipitously, many to record lows. By April, most assets had recovered their losses from the downturn in late 2018. The primary cause of the recovery was an about-face by the Federal Reserve. They – and most other central banks – had been signalling the end of rate hikes, and the market started to expect much more supportive monetary policy. As predicted, most central banks began to cut policy rates in response to gradually deteriorating macroeconomic data. The Fed cut 75bps from July to October; the ECB cut to -0.5% and restarted QE. This was not accompanied with a rally of the magnitude and uniformity seen in the opening months of 2019. Government bond yields continued to fall in the final months of the period, though not as precipitously and with greater volatility. Credit markets were also modestly positive, but were caught between supportive central banks and a worsening macro outlook. Greater dispersion between credit ratings and individual credits was evident as market sentiment became more cautious.

Fund Activity At the start of the period, the risk profile of the Fund was cautious, with only a modest long position in credit risk. Our allocation to government bonds was maintained at a healthy level. We favoured a more meaningful allocation, particularly relative to investment grade credit, given the challenging environment for credit risk. Within our investment grade allocation we had a preference for financial over non-financial credit; we continued to moderately de-risk within the allocation in the opening months.

We reduced our high yield exposure early in the market sell-off. After a period of strong performance, we felt it prudent to trim our risk in high yield – we did this by top slicing a number of names as this was more a view on overall credit risk or beta rather than name specific. This was timely and served the Fund well. Nevertheless, idiosyncratic stories hit us during the downturn, particularly the malaise of high yield retailer DIA and US industrial stalwart GE.

With regards to duration, we chose not to aggressively oppose the rally in government bond markets. We only modestly reduced the headline duration over the period, instead looking for more opportunities to generate alpha though relative value trades.

Within our government bond allocation we added a long position at the start of the period in 10-year Australian futures against a sale of both 10-year German and US futures. Growing weakness in the Australian housing market and a lack of new issuance supported Australian bonds allowing this position to add value to the Fund. Our short position in 10-year French OAT’s versus 10-year German bunds also added value. The performance of French government bonds was poor compared to German bunds and this benefitted the Fund.

16 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Strategic Global Bond Fund (continued)

Fund Activity (continued)

On the curve we had mixed results in the early months. On the negative side, our UK 10-year versus 40-year flattener moved against us as the protracted Brexit debate weighed on long dated gilts. Given the heightened volatility in the position, we opted to close it. On the positive side, we added value from US curve positioning. We retained our US 7-year versus 30-year steepening position – the re-rating of Fed expectations supported shorter dated bonds, forcing the curve steeper. We opted to take profit on this in late November. As we approached the December Fed meeting we viewed expectations as being too dovish and opened a US 5-year versus 30-year flattener. The hike and more positive tone from Chairman Powell hit 5-year assets hard and allowed us to take a quick profit.

In the new year, we felt there was a significant probability that the Fed’s January dovish pivot was a structural shift rather than a knee-jerk reaction to temporary market jitters. Hence, we used the full flexibility of our mandate and increased the headline interest risk in our portfolios to c. 6years, from c.3 years at the end of 2018. Furthermore, we found supportive central banks in combination with risk asset valuations quite compelling in the period. As a result, our HY allocation doubled in January to c. 30%.

There was too much negativity priced into European risk assets, in our view. This was particularly obvious in the euro HY market, where fears of Italian sovereign supply in January, Brexit negotiations collapsing, and US- China trade wars hurt economic activity. We felt this valuation was too stretched, and the Fund benefitted from a timely long in European HY versus a short in US HY.

We held our preference for financials over non-financials at the subordinated/capital layers. We were wary of supply in the senior financials space, driving our preference for non-financials over financials at the senior level. We used temporary strength in financials CDS, when the ECB first floated the idea of TLTRO extensions, to take a short risk position in senior financial (SNRFIN) CDS versus a long risk in iTraxx Main, which also added to performance.

In April, a tactical long risk iTraxx Main versus short risk iTraxx Xover position proved profitable as the investment grade index outperformed on a risk-adjusted basis. Further gains were seen within our high yield allocation, with positions in Pure Gym and MGM performing well.

As spreads moved tighter we bought additional credit protection via CDX HY to reduce the degree of credit risk in the Fund – the continued strength of risk appetite meant that this detracted from performance somewhat.

Our allocation to inflation linked bonds was modest in early 2019. We focused on US TIPS, held on an outright or real yield basis, not as part of a breakeven position versus bond futures. These bonds struggled to keep up with conventional bonds through the opening months of 2019 but the shift in tone and bias from the Fed and ECB helped offer support and better performance into the end of June. A tactical position in 5-year French inflation linked bonds saw clear support from Draghi’s Sintra speech with a hat-trick of key attributes supporting them: short dated, French, and inflation linked.

The overall asset allocation of the Fund continued to favour corporate over government bond risk during the first half of 2019. We steadily moderated our high yield allocation from highs of 30% in January to ~10% by the end of June, via protection in US CDX HY. The weighting in government bonds – conventional and linkers – held steady at approximately 25%.

Our preference for financials – banks and insurance companies – over non-financials is a key view in the Fund and this preference was profitable. Having tactically reduced the size of this bias during the period of market weakness in May, we were able to fully benefit from the supportive comments from Draghi and Powell with our allocation to European Banks and subordinated debt seeing the greatest benefit. Our holdings in legacy tier 1 assets delivered over the early months of 2019 as they became increasingly sought after as yields fell.

17 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Strategic Global Bond Fund (continued)

Fund Activity (continued) We added a long risk positon position in iTraxx Main versus short risk iTraxx Xover in April after the sharp compression of high yield spreads compared to those in the investment grade space – this added value to the Fund as spreads edged wider through the month. A subsequent dislocation between financial and non-financial in May risk left financials looking rich – we tactically reduced our exposure in late May via the 5-year iTraxx Senior Financial CDS index against a long risk position in 10-year iTraxx Main (a broad investment grade index). The wobble in risk sentiment that followed saw a relative underperformance of financials allowing this position to add alpha to the Fund before successfully closing it and reinstating our preference for financial risk within our corporate bond allocation.

Over the summer we benefitted from our overweight to investment grade bonds, and anticipated a strong degree of credit curve flattening, especially in Europe. As the run up to the ECB event in September proved to be very strong, we took profits on some of these positions and re-allocated the portfolio to be more exposed to the non- eligible parts of the CSPP programme (the resumed quantitative easing programme from the ECB) towards the end of the period.

In high yield, we favoured solid names with proven track records of positive cash flows. Our exposure was mostly confined to the BB and B sectors, as we never really believed in the narrative that it will all ‘trickle down’ to the CCC layers. We did make good use of the volatility, as we entered August with a modest net long HY position, which we quickly increased as the risk sell-off intensified. As markets rallied again, the HY market became increasingly expensive to own in our view. We finished September with virtually no net HY exposure (via indices), to reflect our ‘short growth’ view at current price levels.

In rates, we held the view that current environment is excellent for duration risk. Over the summer the Fund benefitted substantially from our strong conviction to be overweight UK and US. We anticipated that the BoE will be forced to amend its hiking bias much sooner than the market anticipated, and we didn’t fully buy into the insurance cut narrative from the Fed.

Alongside the active management of our headline duration we also looked to add further alpha through relative value opportunities. We added 30-year Spanish government bonds which had suffered after a period of heavy supply. We sold 10-year Italian futures against it that had started to look expensive. Renewed demand for long- dated Spanish bonds and the resumption of Italian political uncertainty supported the position, adding value. We also increased our exposure to short-dated UK gilts, which performed well as economic weakness and Brexit uncertainty saw rate expectations shift firmly towards easing.

After another period of falling inflation expectations we took the opportunity to add more US TIPS to the Fund on an outright basis rather than as a breakeven. These held up reasonably well through the summer, although they underperformed conventional Treasuries towards the end of the period.

November 2019

18 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Investment Grade Global Bond Fund

Fund Performance

The Investment Grade Global Bond Fund returned 13.54% [B Inc USD] over the twelve month period, against an index return of 13.08%.

Market Backdrop

As quickly as the downturn began, it reversed course at the beginning of 2019. Credit yields fell steadily, with riskier high yield markets outperforming investment grade bonds, a sign of how sharply sentiment turned positive in the new year. Government bond yields also fell precipitously, many to record lows. By April, most assets had recovered their losses from the downturn in late 2018. The primary cause of the recovery was an about-face by the Federal Reserve. They – and most other central banks – had been signalling the end of rate hikes, and the market started to expect much more supportive monetary policy. Consistent with the more supportive rhetoric at the start of the year, most central banks began to cut policy rates in response to gradually deteriorating macroeconomic data. The Fed cut 75bps from July to October; the ECB cut to -0.5% and restarted QE. This was not accompanied with a rally of the magnitude and uniformity seen in the opening months of 2019. Government bond yields continued to fall in the final months of the period, with volatility more prominent than had been the case earlier in the year. Credit markets were also modestly positive, but were caught between supportive central banks and a worsening macro outlook.

Fund Activity

Though we had been increasingly cautious through 2018, the portfolio had not been sufficiently de-risked at the start of the period to insulate it entirely from the extreme conditions seen in the fourth quarter. We continued to reduce the portfolio’s financial risk over the final months of 2018, and finished the calendar year with over 10% less exposure to financials than had been the case at the end of the first quarter.

The portfolio’s duration was run between 6 and 6.5 years during the opening months, a slight underweight which resulted in a small drag on relative performance given the path of government bond yields. This was mitigated to a degree by the portfolio’s overweight position in US duration, which markedly outperformed the bund market in December. Fund duration was generally within 0.5 years of neutral (relative to the benchmark) during the latter half of the period, reflective of a caution around taking meaningful positions given the inherent political uncertainty. Duration was increased in April which was supportive to performance, given the rally in yields witnessed in the second half of the month. Having reduced the UK duration contribution to the portfolio at the end of August, the Fund was well positioned to take advantage of the subsequent sell-off, which was precipitated by a belief at the time that there was tangible progress being made with Brexit negotiations. The addition of US interest rate risk in October largely caught the rally seen towards the end of the month.

Whilst central bank rhetoric had definitely become more accommodative at the beginning of 2019 (and was supportive to credit risk), we were sceptical that credit valuations were sufficiently attractive to warrant a material re-risking of the portfolio, and the Fund therefore retained a relatively defensive stance, with the cash balance typically remaining in excess of 10%.

While the overall asset allocation positioning was certainly defensive in early 2019, this did not preclude the portfolio’s selective involvement in attractive new issuance, with the Fund participating in new deals from ING, UBS, RBS and Nordea, all of which performed well. Other highlights in 2019 included the portfolio’s participation in new issuance from FIS and Fiserv (both payment services providers), which were both very well received by the market.

19 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Investment Grade Global Bond Fund (continued)

Fund Activity (continued)

We also sought to exploit relative value opportunities when they arose. Examples of those trades included rotating the Fund’s Becton Dickinson from euro to dollars, and switching the Fund’s exposure in GE from dollars to euros when the terms were judged to be sufficiently compelling. Similar cross-currency trades were identified and exploited for Ford (where we switched dollar paper into euro paper) and also for Goldman Sachs where we switched from euro into dollar-denominated paper.

Towards the end of the period under review, we made a small move towards risk reduction as we felt valuations had run a reasonably long way in a short period of time. We sold (among others) a subordinated issue from Credit Suisse which had seen excellent YTD performance, and an unrated issue from French media firm Lagardere.

November 2019

20 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames High Yield Global Bond Fund

The Kames High Yield Global Bond Fund returned 10.68% [B Inc USD] over the twelve month period, compared to a 7.48% for the peer group median.

Market Backdrop

The period began in the midst of a market sell-off. Starting in October, and driven by a number of economic headwinds – perhaps most notably the fear of the Federal Reserve over-tightening policy rates – credit spreads widened significantly, while government bond yields fell as money rushed into ‘safe havens’ and out of risk assets. This sell-off continued through the end of 2018, leaving most risk assets in the red for the year. As quickly as the downturn began, it reversed course at the beginning of 2019. Credit yields fell steadily, with riskier high yield markets outperforming investment grade bonds, a sign of how sharply sentiment turned positive in the new year. Government bond yields also fell precipitously, many to record lows. By April, most assets had recovered their losses from the downturn in late 2018. The primary cause of the recovery was an about-face by the Federal Reserve. They – and most other central banks – had been signalling the end of rate hikes, and the market started to expect much more supportive monetary policy. As predicted, most central banks began to cut policy rates in response to gradually deteriorating macroeconomic data. The Fed cut 75bps from July to October; the ECB cut to -0.5% and restarted QE. This was not accompanied with a rally of the magnitude and uniformity seen in the opening months of 2019. Government bond yields continued to fall in the final months of the period, though not as precipitously and with greater volatility. Credit markets were also modestly positive, but were caught between supportive central banks and a worsening macro outlook. Greater dispersion between credit ratings and individual credits was evident as market sentiment became more cautious.

Fund Activity

At the start of the period, we participated in a new issue from Intertrust Group, a high-quality provider of specialist legal services. This business holds leading positions in its markets, with approximately 90% of its revenues generated from recurring services that are nondiscretionary for its clients. In secondary markets, we opened a small position in James Hardie, a well-run business that occupies an attractive niche within the building materials industry.

In a challenging time for risky assets, our light exposure to emerging markets and CCC-rated bonds was beneficial to relative performance during the sell-off in late 2018, as these areas of the bond market bore the brunt of the pain.

Superior Industries is one of our few CCC-rated positions, and after suffering in late 2018 it lagged behind the rally in January and February 2019. The company suffers from being a new issuer to the market, and is a very small portion of the index and is therefore not well covered. Also, as an auto parts maker, it has struggled to get many market participants excited, given the sector’s difficulties. In the spring of 2019 the firm reported solid results and the bonds rose to levels more appropriate for its solid fundamentals. It then continued to perform well through to the end of the period. The business is one of the world’s largest makers of aluminium wheels, and we don’t see the need for car wheels to disappear anytime soon.

Our positions in DIA, the Spanish retailer, were costly during late 2018. We expected some volatility in the name, and they performed well in early 2019, as its majority shareholder announced that it would launch a takeover offer to support the business as it faced a number of headwinds. The bid won approval from the shareholders at the company’s AGM. The progressively better news flow delivered strong price appreciation and we took advantage of this to sell our position in the 2019 bonds which had been profitable. The 2023 bonds, however, were less successful and was the worst performing position in the Fund over the course of the year.

21 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames High Yield Global Bond Fund (continued)

Fund Activity (continued)

Our high quality names did well in the opening months of 2019. Equinix, the data centre company, was upgraded to investment grade by S&P. Its close peer InterXion, which we also hold, also rallied. A payments processor, Worldpay, was taken over by an investment grade company in the period, providing the portfolio with excellent returns. CBR Fashion, a long-held position in the Fund, also had excellent results in early 2019, pushing its price markedly higher. It continued to perform through the year and was the top contributor to performance over the period. Our second highest contributor was PureGym, a long-held position.

We took new positions in two high quality paper-packaging firms, Smurfit Kappa and Greif, which both performed well at the beginning of 2019. We also invested in Eircom in April. It is the leading telecom provider in Ireland, and the new bond offered reasonable value for the lack of cyclicality inherent in the business and its strong market position.

A new position we opened in April was CPI Property. We purchased the subordinated hybrid bonds of this investment grade issuer that are attractively priced for a business that has done a good job deleveraging. It has strong end markets and generates a healthy amount of free cash flow. Unfortunately, a lawsuit was filed against the owner of the company that caused the bonds to sell off briefly, but this was thrown out by the courts later in the year and the bonds recovered well.

A number of positions in the portfolio posted strong results in April. Notably, McLaren, which is one of the higher risk and higher weight positions in the Fund, posted strong numbers showing excellent execution on management’s strategy. We also said farewell to a long-held position in the Fund, DEA AG. This bond was called at the end of the month after delivering healthy returns thanks to its improving fundamental trajectory over our investment period.

In May we participated in a new issue from Berry Global, a highly cash generative packaging company to Fund their acquisition of RPC. While this is a leveraging event, this is a high-quality issuer that has a proven ability to integrate acquisitions. We also increased our position in Power Solutions, the recent spin-off from Johnson Controls. Iron Mountain is a seasoned high yield issuer, and we added a new position in their 2025 dated bonds that offer reasonable value for the risk that exposure to the company offers. We trimmed Odebrecht, an operator of drilling rigs for Petrobras. This is a higher-risk position in the Fund and we were able to achieve a very good price to reduce some of the risk the portfolio faces. We also trimmed some cyclical risk in the form of Algeco and Williams Scotsman; these bonds are trading with reasonably high valuations and were large position sizes.

In June we added a position in Dometic, a niche producer of components and accessories for recreational vehicles and other outdoor activities. The bonds rallied very quickly after we bought them, and given that the business is fairly geared to discretionary spending, and that the vast majority of our future returns were brought forward, we felt it was prudent to sell the position. Another new position in the Fund was Cogent Communications, a provider of telecom infrastructure with highly recurring revenues and low cyclicality. We also opened a new position in bonds from Cirsa, a leading gaming company that operates casinos, arcades and bingo halls in Spain.

A positive contributor in the later months was Tenneco, which is preparing to split its business. We have enjoyed stellar returns from this issuer over our holding period. These bonds were formerly of Federal-Mogul, which Tenneco bought and announced the separation plans in April – the bonds promptly leapt in price to trade to an early call. We trimmed to take some profits but left a small position on. Earlier this year, thanks to the softness in the auto market, the split was postponed and the bonds fell sharply as the market became overly worried about the prospects for the business. We topped our position up and now the portfolio is reaping the benefits of our active approach.

22 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames High Yield Global Bond Fund (continued)

Fund Activity (continued)

We invested in bonds from GEMS Education, which operates private schools in the Middle East. We like the predictable revenue stream and so does the market; the bonds were strong contributors to returns in the later months. Our investment in Ithaca Energy at new issue also provided the portfolio with solid returns, as did our investment in Trivium Packaging. Strong markets also helped some of our higher-beta positions like Nationwide, Volkswagen hybrids, Unicredit and Rabobank toward the end of the period. Nationwide was our third-highest contributor to returns over the year.

In October, our holding in Teva Pharmaceuticals added to performance. Teva is currently in the throes of litigation in the United States as part of the opioid crisis. Positive news over the month reduced the risk of draconian fines; we decided to trim the exposure in the 2022-dated bonds and extend to 2024-dated bonds for additional incremental expected returns.

November 2019

23 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Fund

The Kames Absolute Return Bond Fund returned 0.80% [B Acc GBP] over the twelve month period, against a benchmark return of 0.83% for 3m GBP LIBOR.

Market Backdrop

Fund Activity

Credit

November was challenging for the module, as volatility in asset prices, and a less consistent correlation between cash bonds and credit derivatives made navigating markets more difficult.

In December, we saw modest gains from our long risk Renault versus short risk Peugeot, and our long risk Iberdrola versus short risk Telefonica positons. We also saw a recovery late in the month of our long risk Anheuser Busch versus short risk Pernod, after a challenging period for Anheuser Busch. This continued and the position was closed profitably in May. We closed our Commerzbank subordinated versus senior position on a change in conviction around the outlook. Our basis trades had a better month with the positions on UBS subordinated debt and Louis Dreyfus both adding to moderately to performance.

The new year saw a diverse rally in credit markets, and as such we saw gains from a wide variety of names, rather than being driven by a handful of particular bonds. These included bonds issued by BBVA, Centre Parcs, América Móvil, KPN, Aviva, and Greene King.

In January we saw gains from long senior versus short subordinated debt positions in both Unicredit and Intesa. However, as the rally progressed into February, the positive tone to risk saw subordinated debt outperform its senior cousins, which cost performance. This dynamic played a part in a similar trade, long ING versus short Société Générale, where we saw a relative outperformance of the French bank through February and March, which cost the Fund.

Our long risk Tesco versus short risk Marks & Spencer had a strong run overall, but lagged in February as M&S announced a deal with Ocado for grocery delivery. This was positive for M&S and so cost performance, but we felt the market overreacted somewhat and the trade performed well during March. The good performance continued, and in August we were able to profitably close the position.

24 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Fund (continued)

Fund Activity (continued)

Credit (continued)

In April, we saw strong performance from a holding in the Yorkshire Building Society as the company announced it would be tendering for the bonds we hold – we opted to only partially tender as we still see further value in the position. Similarly, Segro announced it was tendering for some of their bonds that we hold – this again was supportive. Holdings in Centre Parcs and Partnership Assurance all performed well relative to the broader market. Our position in BBVA added value as sentiment around the Spanish economy continued to improve.

We saw gains through May and June in our long risk Centrica versus short risk Scottish and Southern Electricity. The re-emergence of talk within the Labour Party in UK on renationalising regulated utilities weighed on SSE, causing further underperformance versus Centrica. This was retained through the period and performed well in the latter months.

In June, new issuance brought up – either directly or indirectly – attractive opportunities. This allowed us to pick up bonds issued by Ford, Volkswagen and Total. In July we saw value added across a range of names and sectors including Volkswagen and Kelda on the non-financial side and Intesa and Barclays on the financial side. Other standout performers in this area through the summer months were BBVA and CNP in financials, and EDF and Total in non-financials.

In July we took the opportunity to close our long risk RBS versus short risk Barclays position. Our analysts have long favoured RBS from a credit perspective and, after making steady progress relative to its UK-based peer, we opted to book the recent profit on the position. Elsewhere within the financials space we also closed our long risk BBVA and short risk Santander trade via senior non-preferred contracts – the spread differential had corrected after a strong run from BBVA and had reached our spread target.

Also on the positive side we saw a recovery in our long risk Arcelor Mittal versus short risk Anglo American, and the long risk Iberdrola versus short risk Naturgy positions. In September, the Arcelor Mittal/Anglo American trade continued to add value and prompted a review of the position. We felt that the short position in Anglo American had further to go so we opted to rotate the long leg into Glencore.

In October, the differential between US and Euro high yield CDS indices was wide, with the CDX HY contract looking cheap as a result. We opened a long risk CDX HY versus short risk iTraxx Xover position and saw the differential narrow, generating alpha for the Fund. Within the single name positions, we added value via the long risk Rolls Royce versus short risk Leonardo position, driven by a sharp outperformance of the Rolls Royce CDS contract.

Rates In November, we added a long 10-year Australia versus short 10-year US and Germany position. The risk-off tone had supported bunds and US Treasuries, leaving Australian bonds cheap on a relative basis. This was closed profitably in January.

We were also long 10-year Australian rates versus short 10-year New Zealand rates in November. At the start of the month, unemployment in New Zealand surprised at 3.9% versus 4.4% expected. The central bank has been on hold while highlighting downside risks, but expectations were building that they may have to hike rates sooner than was priced.

Also in November, a UK inflation trade where we are long 30-year inflation versus 10-year inflation moved against us over the month. After continued underperformance we closed this position at a loss in December.

25 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Fund (continued)

Fund Activity (continued)

Rates (continued)

In December, we opened a US 5-year versus 30-year curve flattening position. The Federal Reserve meeting and press conference were in line with our expectations but appeared to surprise the market as 5-year bonds sharply underperformed longer dated assets, causing the curve to flatten profitably. The shift in tone from the Federal Reserve weighed on the position early in January, which then recovered in the second half of the month. Having reduced the size of the position, we retained it into February, where it performed well and was closed mid-month.

We added an Italian curve positon in December, long 30-year BTPs versus short 10-year BTP futures. Towards month-end, positive news emerged with regards to the Italian government’s budget proposal. This unfortunately sparked a bid for 10-year versus 30-years BTP’s, moving against our position. It was retained into 2019, but the shift in sentiment into the new year saw a renewed bid for Italian BTP’s, detracting from Fund performance. We held the position into February, but the trade continued to move against us. After reaching our review level, we opted to close it at a loss.

Our long 10-year Euro versus 10-year Swedish rates position had played out in our favour since inception, aided by the Riksbank’s rate hike in December. Since then, the likelihood of a further hike in the near term diminished, even with some tightening still priced in. Lower than expected unemployment and inflation numbers supported this view and we chose to close the position at a profit.

In March we added two new positions. The first was a long 5-year Germany versus short 10-year France position. We felt that 10-year bonds looked rich as a result compared to 5-years. The momentum behind the flattening of the yield continued initially, costing the Fund, but through April the ECB’s consideration of tiered rates offered support to the short end and saw the curve steepen, adding to performance.

The second positon was long 10-year US versus short 10-year Canada. We viewed the BoC as being less likely to cut than the Fed, leaving their bonds rich versus US Treasuries. The dovish Fed meeting and firmer Canadian data helped move this trade our way, adding alpha to the Fund. In April, the Bank of Canada removed their tightening bias at their rate setting meeting. This was accompanied by downward revisions to both GDP and inflation which supported Canadian bonds. This prompted a review of our position and favoured closing it – this position was closed flat relative to our original entry point.

In April, two trades that included short positions in 10-year Australian bond futures performed well. One was a 3-year versus 10-year curve steepening position, and the other a long in 30-year inflation linked bonds versus 10-year futures.

The strong rally in US Treasuries in May drove losses on our long 5-year Germany versus short 5-year US position. The ECB surprise at the Sintra event in June was supportive, but the ongoing bid for US assets meant that it detracted through June. In July the trade reversed course and added value, and we took the opportunity to close the position. Overall it detracted from performance, but July helped recoup a meaningful proportion of the losses.

We opened a long 10-year UK versus 10-year France position in May. As the month progressed, not only did the UK political story support the trade but the risk-off tone in Europe also weighed on OAT’s. This saw the trade move quickly in our favour and allowed us to close it at a profit.

26 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Fund (continued)

Fund Activity (continued)

Rates (continued)

In June, market pricing implied three Fed cuts by year end. We felt this was fully valued and opened a US 7- year versus 30-year flattening position. Unfortunately a dovish surprise by the ECB fuelled demand for shorter dated assets – we chose to close this position at a small loss before opening a steepening position in the same tenors after the FOMC meeting. In August, the demand for longer-dated bonds was materially stronger and saw a meaningful flattening of the curve. We opted to retain the trade but with revised targets in place. Subsequently, the curve re-steepened allowing some losses to be recovered. This steepening continued through October and we retained the position.

In July, we reshaped our long 10-year UK versus short 10-year France position, to instead be short 10-year Australian futures. The Reserve Bank of Australia had completed back-to-back rate cuts and with further easing looking to be fully priced, this offered a good opportunity to open a short position. In August we then rotated the position again. We were still happy to be short Australian risk but felt that it was better paired with Canada, a market that was under-pricing the risk of future rate cuts by the Bank of Canada. To capture these views we rotated the positions into long 10-year Canada versus short 10-year Australia. It underperformed during September and was closed at a loss in October.

Also in July, we opened a new European position, long 30-year Spain versus short 10-year Italy. It performed well through July and August, and was closed profitably. A German 5-year versus 10-year curve steepening position was also closed in August, through it detracted from performance overall. We later added a 5-year versus 30-year German steepener in September, which struggled intra-month but began to perform in October and was retained.

In October, we opened a new position involving Swedish rates. The Swedish economy has been facing headwinds as its export-driven economy has been impacted by the slowdown in global growth. The Riksbank has been retaining a tightening bias though, which we feel will be challenged. To exploit this we opened a long 10-year Swedish versus short 10-year Euro position via interest rate swaps. Although the position suffered after the Riksbank stated its intention to hike rates in December, it recovered somewhat as the macroeconomic challenges the economy faces remain in place and the easing bias by the ECB will pressure the Swedish Krona higher, supporting the position.

Carry

The Carry module had a good twelve months, positively contributing to Fund performance. This module primarily invests in sub-2-year investment grade bonds. Careful stock selection is key in this part of the Fund to help ensure that value is added through the assets we own – this was demonstrated again over the period, with additional value added from the opportunity to pick up bonds at attractive levels.

November 2019

27 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Global Equity Income Fund

The Kames Global Equity Income Fund returned 17.89% [C Inc USD] over the 12-month period. The Investment Association Global Equity Global Income median Fund return was 9.45%.

Income generation was resilient achieving a rolling annual distribution yield of 3.02% based on the C Income USD share class, compared to the MSCI AC World index yield of 2.48%.

Global equity markets were very volatile over the six month period. Initially, markets came under pressure as concerns grew about slowing economic activity most notably in China and Europe, and that this downturn could turn into a full-blown global recession. The US Federal Reserve also delivered its ninth interest rate increase this cycle since December 2015, stoking further fears that the current rate policy could cause an imminent recession.

Markets, however, recovered sharply in 2019, due to a complete reversal of US Federal Reserve monetary policy as it indicated that interest rates were at, or close to, their peak for this hiking cycle. Markets remained relatively volatile however, particularly over the mixed messaging on the US/China trade war. The Fed’s decision to cut interest rates again at its September meeting boosted markets. In Europe, the departing ECB supremo Mario Draghi also convinced his Governing Council to deliver another wide-ranging package of stimulus measures to try somehow to heed its increasingly distant inflation mandate. These moves helped to boost markets up to the period end.

The Fund performed well in the volatile environment and produced a strong relative performance over the period as a whole. Disciplined stock selection was the main driver of performance. During the market rally in the early months of 2019, the technology sector showed strong gains, while other winning sectors were primarily of a cyclical nature in industrials and consumer discretionary. In general, defensives were poor relative performers and financials were notably left behind given the clear shift downwards in general interest rate expectations. Overall these moves benefited the Fund although its exposure to financials came under pressure. Overweight in technology was beneficial, particularly the exposure to semiconductors, which performed well.

Active stock selection, however, was the main driver of performance. Asian semiconductor plays TSMC and Tokyo Electron were the best attributors as the market probed around for any glimpse of improvement in the semiconductor inventory supply chain. The former is also gaining strong traction at its latest 7nm-plus EUV driven node, which will pull it even further away from its competitors.

Networking chip manufacturer Broadcom outperformed – during the period it gave a reassuring trading update and issued strong guidance. Among the best performers, Air Products, Lockheed Martin, Cincinnati Financial and Microsoft all released good quarterly results.

Chinese sportswear manufacturer Anta Sports was another standout name, particularly in the second half of the period. Annual sales continued to grow above 20% and its Amer Sports acquisition was finally secured. Miner Rio Tinto added value as it enjoyed a strong run in the iron ore price, while DBS Group benefited from asset quality and solid capital ratios, with market movements providing an additional boost. Elsewhere, Microsoft’s results showed strength in high margin areas. Given its large portfolio of renewable power assets NextEra Energy again performed well as investor appetite towards sustainability plays remains a strong market theme.

Some giveback came from our positions in Hong Kong property and industrial conglomerate Swire Pacific, where earnings visibility is currently clouded by the difficult situation there. Also weak was US pharmaceutical giant Pfizer; its dilutive deal to combine its generics unit with beleaguered specialty drug maker Mylan in order to narrow its focus on innovative medicines was given the proverbial “thumbs down” by shareholders for the time being. Japan’s Takeda Pharmaceutical issued weak guidance for the coming fiscal year after it posted temporary losses, given substantial write-downs from recently acquired Shire Pharmaceuticals.

November 2019

28 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Global Fund

Please note: the Fund was closed 30 October 2019.

The Kames Absolute Return Bond Global Fund returned 0.17% [B Acc GBP] over the 12-month period, against a benchmark return of 0.83% for 3m GBP LIBOR.

The Fund was closed on 30 October 2019.

Market Backdrop

Fund Activity

Credit

The volatility in asset prices and a less consistent correlation between cash bonds and credit derivatives made navigating markets difficult in November. These losses were not due to any individual holdings, but rather a general widening in bond spreads. We added some duration exposure by closing our interest rate hedge, which was beneficial as government bond yields fell.

In December, the module regained its composure and had a positive month. We felt it was prudent to add some additional interest rate risk to the Fund. Alongside this, the degree of credit protection via 5-year iTraxx Main was retained. Over the month it helped cushion the Fund from some of the weakness in credit spreads.

In the new year, the module benefited from careful stock selection within the diversified collection of hedged bonds that it holds. We saw gains across a wide range of holdings as opposed to being driven by a handful of particular bonds; names as diverse as BBVA, Centre Parcs, Enterprise Inns, KPN, Enel, Aviva, and Greene King. In April we saw strong performance from a holding in the Yorkshire Building Society, as the company announced it would be tendering for the bonds we hold – we opted to only partially tender as we still saw further value in the position.

To manage the downside risk of these holdings, we bought protection in 5-year iTraxx Main, a CDS index of investment grade rated companies. Alongside this we were short UK gilt futures to reduce our exposure to interest rate changes.

29 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Global Fund (continued)

Fund Activity (continued)

Credit (continued)

In April we were active in index-level pair trades. We opened a long risk iTraxx Main versus short risk iTraxx Xover, looking to exploit the relative outperformance of the high yield CDS index – this trade was beta-adjusted to remove its directionality. The trade quickly moved in our favour with the relative outperformance of the iTraxx Main and we took the opportunity to lock in these gains. Following the closure we opened a new trade to be long risk 10-year iTraxx Main versus short risk 5-year iTraxx Senior Financials. This differential, on a risk adjusted basis, had widened out to the top end of its range, driven by the performance of financial sector debt. It performed well and was closed at a profit in May.

In June we benefitted from a range of positions including holdings in CNP and Aviva within the financial sector and Orange in non-financials. We also added new positions through the month as new issuance brought up – either directly or indirectly – attractive opportunities. This allowed us to pick up bonds issued by Ford and Total over the month.

In July we saw value added across a range of names and sectors including Volkswagen and Kelda on the non- financial side and Intesa and Barclays on the financial side. Other standout performers in this area through the latter months of the year were BBVA and CNP in financials, and EDF and Total in non-financials.

In July we took the opportunity to close our long risk RBS versus short risk Barclays position at a profit. We also closed our long risk BBVA and short risk Santander trade via senior non-preferred contracts – the spread differential had corrected after a strong run from BBVA and had reached our spread target.

In July we also opened a long risk CDX IG versus short risk iTraxx Main position. Having seen a strong performance of European-based assets in anticipation of a new QE program from the ECB, we had a preference for US bonds on a relative basis. Unfortunately the further escalation of trade tensions between the US and China weighed on US corporate bonds and reduced their attractiveness going forward. We retained the short risk 5-year iTraxx Main position but closed the long risk CDX IG in favour of iTraxx Xover. The differential between the high yield and investment grade CDS indices had moved to the top of its range (on a beta-adjusted basis) and, both being Euro denominated, it removed some of the risk around a surprise from the ECB. This was profitable through the rest of the period.

30 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Global Fund (continued)

Fund Activity (continued)

Rates (continued)

31 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Global Fund (continued)

Fund Activity (continued)

Rates (continued)

Carry The Carry module had a good twelve months, positively contributing to Fund performance. This module primarily invests in sub-2-year investment grade bonds. Careful stock selection is key in this part of the Fund to help ensure that value is added through the assets we own – this was demonstrated again over the period, with additional value added from the opportunity to pick up bonds at attractive levels.

November 2019

32 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Constrained Fund

Please note: the Fund was closed 30 October 2019.

The Kames Absolute Return Bond Constrained Fund returned -0.54% [C Acc EUR] over the twelve-month period, against the benchmark 1-month EURIBOR return of -0.39%.

The Fund was closed on 30 October 2019.

Market Backdrop

As quickly as the downturn began, it reversed course at the beginning of 2019. Credit yields fell steadily, with riskier high yield markets outperforming investment grade bonds, a sign of how sharply sentiment turned positive in the new year. Government bond yields also fell precipitously, many to record lows. By April, most assets had recovered their losses from the downturn in late 2018. The primary cause of the recovery was an about-face by the Federal Reserve. They – and most other central banks – have made it clear that there will be a long pause in interest rate changes, and that the Fed no longer has a bias towards further rate increases. This synchronised hold has convinced markets that this tightening cycle is over. Coupled with data releases being more positive than expected, sentiment rapidly recovered from the depths of late 2018. With investors increasingly convinced that central banks would be on hold for a protracted period, government bond yields rallied during the second half of the period under review.

Fund Activity

Rates

In November, we added a long 10-year Australia versus short 10-year US and Germany position. The risk-off tone had supported bunds and US Treasuries, leaving Australian bonds cheap on a relative basis. This was closed profitably in January.

33 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Constrained Fund (continued)

Fund Activity (continued)

Rates (continued)

34 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Absolute Return Bond Constrained Fund (continued)

Fund Activity (continued)

Rates (continued)

Credit

The majority of the holdings in this module continue to be investment grade assets with a maturity of around three years. The credit module suffered in late 2018 as the credit sell-off was broad and relatively indiscriminate, while Brexit developments further darkened sentiment around UK-centric names. When the risk rally began in 2019, the module added to Fund performance.

In May, a number of our positions in the credit module trended wider as the rates rally was not enough to offset spread widening. Given the short duration of most of the holdings there was not much damage down to the overall performance of the Fund in the month. In June we increased our holdings in individual credits that looked to have value, even after the rally in spreads and duration. We added Munich Re paper which is a callable in 2022, a BNP 2022 and a Medtronic 2023 which were all bought with positive yields.

We added EDF subordinated debt and FirstGroup 2022s into the module in July. Sterling corporate bonds were generally soft in August, on the back of a strong rates backdrop. There was only one small addition to the Fund in August, in a QBE callable bond which yields 2.5% in sterling. Euro credit holdings generally sold off over September but not to any great extent, reflective of the underlying rates movement and the fact that credit spreads stopped rallying post-ECB meeting.

Carry

The Carry module is a diversified range of investment-grade assets with less than two years to maturity, which we expect to hold to maturity. We usually held around 30 holdings in the Carry module; the majority were in the UK and European markets and had an average maturity of close to 12 months.

November 2019

35 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Emerging Market Bond Opportunities Fund

Please note: the Fund was closed 13 February 2019.

Over the period the managers progressively moved the Fund towards a defensive position. This positioning was adopted to combat the volatile conditions, particularly within risk assets, which gripped markets towards the end of 2018. We therefore sold our emerging market corporate debt initially and, latterly, reduced our emerging market sovereign bond weighting, allowing our cash holdings to increase, as we prepared the Fund for closure.

November 2019

36 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Global Diversified Income Fund

The Kames Global Diversified Income Fund returned 12.40% [B Inc, EUR] in the 12 months to the end of October 2019. Income generation has been resilient, and the historic yield, based on the 12 most recent monthly distributions for the B euro income share class, was 5.7%, exceeding the targeted yield of 5%.

Initially, the fund came under pressure as investors began to question the strength of the global economy, with markets selling-off significantly. Markets, however, recovered sharply in 2019, due to a complete reversal of US Federal Reserve monetary policy as it indicated that interest rates were at, or close to, their peak for this hiking cycle. Markets remained relatively volatile however, particularly over the mixed messaging on the US/China trade war. The Fed’s decision to cut interest rates again at its September meeting boosted markets. In Europe, the departing ECB supremo Mario Draghi also convinced his Governing Council to deliver another wide-ranging package of stimulus measures to try somehow to heed its increasingly distant inflation mandate. These moves helped to boost markets (both equities and bonds) up to the period end.

Exposure to equities, specifically global equity income, was a strong contributor to fund performance over the period. Infrastructure and real estate also added to the positive overall returns. Currency positions were relatively flat, largely as a result of hedging costs (we hedge most of the non-sterling exposure back to sterling). Within equity stock selection, some notable positive contributors were Phoenix Group, Broadcom, Anta Sports and Tokyo Electron.

Following the turbulent conditions towards the end of 2018, we took the opportunity to increase our allocation to specialist income and REITs. The market sell-off presented a good entry price to buy into attractive assets and businesses that generate income and have growth potential. This move proved to be beneficial given the subsequent rally in markets. Within the infrastructure sector the holdings in Ferrovial, Infratil, 3i Infrastructure, Vinci and Aena were among the standout names. In the real estate space, Ascendas was a strong positive contributor. In the renewable energy space, the exposure to Greencoat UK Wind also performed well.

Our weighting to fixed income assets also added value, with our exposure to bank credit, high yield and emerging market debt benefiting from the central-bank-induced rally that marked 2019. Our holdings in government bonds also contributed positively but to a lesser extent. These assets fared relatively well in the difficult conditions towards the end of 2018, given their defensive characteristics, and continued to add value in the remainder of the period as yields continued to fall, although the gains were less than that experienced by risk assets.

November 2019

37 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Global Sustainable Equity Fund

The Kames Global Sustainable Equity Fund returned 24.90% [B Acc GBP], outperforming the global peer group median return of 12%.

The end of 2018 was a volatile period for equities, but the markets bounced back in 2019, and equities rallied strongly. Weaker sentiment around the US-China trade tensions, and slowing global growth, drove investors towards defensive sectors at the end of 2018, but by 2019 the US posted its strongest opening quarter since 2009 demonstrating the speed at which optimism returned. This was boosted by the Federal Reserve turning more dovish on interest rates and similarly accommodative messaging from central banks worldwide. Corporate earnings also reassured and helped lend weight to the argument that global growth has not come to the crashing halt that market conditions at the end of last year appeared to be pricing in.

The Fund’s outperformance over the last year was the result of strong stock selection; we saw a return to form for most of the high-growth holdings that we held on to through the indiscriminate selloff in the final quarter of 2018.

In addition, market sentiment favoured innovative companies with strong sustainability credentials. Worldpay is a great example of a stock that fell sharply towards the end of 2018 but which ended the period as a top contributor to the Fund. Shares jumped after February’s announcement of accelerating revenue growth, and benefitted further from news of a merger with FIS.

Everbridge also performed well, seeing better-than-expected results, and US Government contracts off the back of its recent FedRAMP certification. Health and wellbeing supported performance again, with Anta Sports (one of China’s largest sportswear companies) providing the biggest contributor to performance. Another positive for performance was Insulet, which forged ahead on another excellent set of numbers and raised guidance. Very strong demand in its new “Dash” product, which enables the company’s unique Omnipod insulin delivery device to be controlled by an encrypted smartphone (rather than cumbersome PDA), was the main plus and bodes well for the strong pipeline of products in development.

Our recent purchase in SolarEdge Technologies jumped on record levels of revenue and earnings. A producer of inverters and power optimisers for solar panels, the company benefits from the long term structural demand growth for home solar power generation, which is increasingly undercutting the cost of traditional energy sources.

Green Dot was one stock that lost ground in absolute terms despite reporting good headline numbers. Another notable detractor was Albemarle, the world’s leading supplier of lithium. The stock came under pressure as the spot price of lithium fell and concerns surfaced that an increase of supply would flow in to the lithium market in the early 2020s, further depressing prices. We believe these concerns are unjustified though, as Albemarle’s customers are typically on long-term contracts with fixed prices, meaning they are less exposed to the spot market than peers. We are also firm in our view that growth expectations for the adoption of EVs have been underestimated. The final stock that significantly detracted from performance was Aumann, a company making production equipment for electric vehicles. After a tough Q4 for EV stocks, the company continued to struggle to deliver on growth expectations. As such, we exited the position in early March.

The Fund outperformed the peer group, reinforcing our decision to remain firm in our conviction for high-growth holdings. Going forward, we continue to focus on the sustainability challenges facing society and the innovative and disruptive companies that are providing solutions to these. As always, our focus remains on finding individual companies that we believe make positive sustainable impacts as well as being good investments.

November 2019

38 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Global Diversified Growth Fund

The Kames Global Diversified Growth Fund returned 4.30% [B Acc EUR] over the 12-month period.

The investment objective of the Fund is to maximise total return (income plus capital) over the medium term at a lower risk than global equity markets by investing in a diversified portfolio of global assets.

Most asset classes were volatile over the year with initial concerns over weak economic activity eventually giving way to a more positive outlook. The main catalyst for the solid performance of equity and bond markets during 2019 was, once again, accommodative policy comments and actions by central banks, which included a reduction in interest rates from the US Fed.

The Fund’s alternatives allocation was the largest positive contributor over the period although the weightings in equities and fixed income (both government bonds and credit) also added value. In fact most allocations performed well with the exposure to currency the only area of the portfolio that was relatively flat.

The strong contribution from alternatives was primarily due to infrastructure (in particular 3i Infrastructure and Macquarie Korea Infrastructure) and renewable energy investments. Both areas benefited from ongoing investor demand for assets with predictable cash flow characteristics in the current low interest rate environment.

Our largest equity allocation is to a bespoke global equity portfolio which has attractive growth and quality characteristics. Global equities had a difficult start to the period under review as markets sold-off of dramatically in the final few months of 2018. We believed this move was largely undeserved because the earnings development of value-oriented stocks was similar to that of the overall market. Our global equity value and the global equity growth allocations both subsequently recovered strongly as we moved into 2019. Equity markets in general remained volatile, however, and we managed to take advantage this turbulence. Following a sell-off in August, for example, we purchased some European equities in anticipation of supportive monetary policy announcements by the ECB. Given the subsequent stimulus measures announced by the bank, this allocation performed strongly during the remainder of the period.

The credit allocation, which consists of bank credit and emerging market debt, also came under pressure at the beginning of the period. Investors demanded a slightly higher yield on these bonds as risk appetite deteriorated. We had previously reduced the credit allocation earlier in 2018 and the allocation was therefore broadly unchanged as we approached the end of the year. We did, however, increase our exposure to 10-year US Treasuries as a defensive allocation. This proved to be beneficial as our government bond allocation performed well in the difficult conditions, and continued to add value up to the end of the period due mainly to dovish actions from both the US Federal Reserve and the ECB. We did reduce our exposure to US Treasuries over the summer of 2019 and added to the emerging market debt exposure, given our view that lower US interest rates would support sector. We also increased the exposure to specific investment grade, high yield and bank bonds. These all performed well up to the end of the period.

November 2019

39 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Global Equity Market Neutral Fund

The Kames Global Equity Market Neutral Fund returned 1.38% [B Acc GBP] over the 12-month period, compared to 0.73% for the LIBOR GBP 1 month return.

Global equity markets performed strongly over the period although they were volatile. Initially, markets came under pressure as concerns grew about slowing economic activity most notably in China and Europe, and that this downturn could turn into a full-blown global recession. The US Federal Reserve also delivered its ninth interest rate increase this cycle since December 2015, stoking further fears that the current rate policy could cause an imminent recession.

Within our investment process we look to identify (for the long book) companies that we classify as “disruptors” – companies that are bringing about change through innovation or are benefiting from it. We believe these are the companies of tomorrow and that they will outperform the “disrupted” – companies that are vulnerable to this change. This means that many of the stocks in the long book are growth stocks, which suffered in the seemingly indiscriminate market derating of growth in the final months of 2018 but then (in many cases) rallied strongly as market recovered in 2019.

Top contributor to overall performance was Anta Sports, where the latest results showed healthy growth in its key brands, as well as solid cash flow – something that had been an area of concern for the market. Management also released initial details of the focus for developing the key brands acquired as part of the Amer Sports deal, which added to the positive sentiment.

Other growth holdings that rebounded strongly included, Aveva Group (engineering software) and Exact Sciences (testing for colon cancer), all of which have innovative and disruptive businesses models, which are helping them to increase market share and carve out new opportunities in their respective markets. At the same time, performance during the first half of the period was aided by structurally challenged businesses in the short book, particularly our positions in a US telecoms operator and a Taiwanese computer manufacturer. Both businesses are ripe for disruption from more innovative and technologically advanced competitors and the share price movements reflected their deteriorating prospects.

As positive sentiment quickly returned to equity markets in 2019 our long positions in many growth stocks subsequently outperformed. The short book was more subdued; short mature, value type companies with challenged business models or that we think are ripe for disruption typically underperformed, although they staged a rally during September.

November 2019

40 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Short Dated High Yield Global Bond Fund

The Fund returned 6.47% [B USD Acc] over the twelve-month period.

Market Backdrop The period began in the midst of a market sell-off. Starting in October, and driven by a number of economic headwinds – perhaps most notably the fear of the Federal Reserve over-tightening policy rates – credit spreads widened significantly, while government bond yields fell as money rushed into ‘safe havens’ and out of risk assets. This sell-off continued through the end of 2018, leaving most risk assets in the red for the year.

Fund Activity During the downturn in the early months, our light exposure to emerging markets and zero exposure to CCC- rated bonds was beneficial to relative performance, as these areas of the bond market bore the brunt of the pain over the period. Strong stock selection was also a major contributor to returns; we avoided the major stock specific blow- and the positions we did own held in well amidst the volatility.

In late 2018, we opened a position in a new issue from Verisure, a high-quality company with strong cash flows and a proven capacity to delever. While management are not averse to increasing their debt, these bonds are secured notes in the capital structure and Verisure’s underlying operating profile is very strong.

In secondary markets, we bought an initial position in DIA, a Spanish grocery retailer, following a profit warning and the bonds falling significantly. We expected volatility in the name, but news flow and volatility was significant and costly, and as such we subsequently sold the position from this Fund in order to manage downside risk and to prevent the position dominating Fund returns. It was the worst performing position in the Fund through the period.

In 2019, after the end-of-year blowout, the market demonstrated a distinct ‘up-in-quality’ theme; the highest quality parts of the high yield market performed well and our positioning placed us very well to take advantage of this. In such a strong market you would expect CCC-rated bonds to significantly outperform BB-rated bonds, but in reality they only slightly outpaced them through the end of the period.

Our high-quality names did well. Equinix, the data centre company, was upgraded to investment grade by S&P. HCA, the US hospital operator, had its secured debt upgraded to investment grade, which only helped accelerate the rally in these high quality bonds. First Data, the payments processing company, was a strong contributor to performance as it was announced that the company would merge with an investment grade company that will refinance the debt. Wyndham Destinations, the time-share operator, posted strong results in the period and performed well. Other high-quality positions such as El Corte Ingles and SBA Communications rallied – SBA and Wyndham were some of the best performing positions over the year.

Miller Homes, the UK homebuilder, delivered very good results, sending the bonds higher. We added to our position after these results were released.

41 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Short Dated High Yield Global Bond Fund (continued)

Fund Activity (continued) Schenck Process also posted good results and the market rewarded the bonds appropriately. It performed well through spring and summer, but towards the end of the period it began to detract from performance. This business is highly geared to industrial production in Europe, though it is somewhat protected thanks to its strong aftermarket position. With soft economic data releases and the high degree of leverage this business runs, we expected the weakness, and we had trimmed this position in anticipation of it.

CBR Fashion, a long-held position in the Fund, also had excellent results in early 2019, and continued to perform well for the rest of the year. The market is finally catching up to this business’ turnaround – it was the best performing position in the Fund over the period.

In April and May, we added exposure to a number of issuers that fell into the Fund’s maturity limit which were held in the all-maturity Funds. These included Quebecor Media, the leading telecoms provider in Quebec, Canada; Guala Closures, a global manufacturer of bottle caps; and Nets, a Scandinavian payments processor. The benefit of managing an all-maturity portfolio alongside this Fund is the ability to feed the short-dated Fund with long-held positions in the all maturity funds. We also said farewell to a long-held position in the Fund, DEA AG. This bond was called at the end of April after delivering healthy returns thanks to its improving fundamental trajectory over our investment period.

CPI property rallied in early summer after an ongoing legal liability, small relative to their asset base, was thrown out by the courts. It continued to generate strong returns through the rest of the period. We trimmed the position in the latter months to lock in some profit.

Over the summer we saw good returns from Tenneco, which is preparing for a split of the business. These bonds were formerly of Federal-Mogul, which Tenneco bought and announced the separation plans – the bonds promptly leapt in price to trade to an early call. We trimmed to take some profits but left a small position on. In early 2019, thanks to the softness in the auto market, the split was postponed and the bonds fell as the market became overly worried about the prospects for the business. We retained our conviction in this position and held firm, and now the bonds are recovering well in price. They delivered excellent results in September but the bonds began to fall through October.

The general rally in markets over the summer helped a number of our positions, including MGM Growth Properties (a top performer over the year), Enterprise Inns, Restaurant Brands and Nets. The healthy rally in Enterprise Inns bonds were spurred by a takeover of the business by competitor Stonegate. We lend at the most subordinated part of the structure and this new equity owner has positive signalling for the business. We trimmed the position to take some profit. BBB-rated debt also contributed strongly to returns, with attractive returns from a number of bonds including Unicredit and Seagate, both in the top 10 positions for the Fund. These slightly higher-yielding investment grade bonds benefited from the dearth of yield in higher-rated credit – as such investment grade investors were happy to buy these credits to our benefit.

Less successful during the summer months was Teva Pharmaceuticals, the generic drug manufacturer. It continues to be embroiled in the opioid scandal in the United States, though less than the branded manufacturers. While this is concerning, we are invested in the front end of the capital structure (2022s) and we have carefully considered our position. We believe that Teva can comfortably handle its headwinds to refinance the 2022-dated bonds. Positive news about a settlement deal in October caused the bonds to appreciate. Other more cyclical credits also were weak in the period, including Algeco Scotsman and Antero Resources.

A notable sale during the latter months was Dometic. Dometic is a business that produces products for the Recreational Vehicle, Marine and Ground Transport industries. The bonds rallied very quickly after we bought them, and given that the business is fairly geared to discretionary spend and that the vast majority of our future returns were brought forward we felt it was prudent to sell the position and lock in an excellent result for the Fund.

42 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Investment Manager’s Report (continued)

Kames Short Dated High Yield Global Bond Fund (continued)

Fund Activity (continued) Avolon is a name we hold in some regard and affection. We have owned it for a while and the main entity is now investment-grade rated, reflecting its excellent fundamentals and strategic execution. Avolon came with a subordinated, high yield-rated PIK note in September and it provided good returns to the end of the period.

November 2019

Independent auditors' report to the members of Kames Capital Investment Company (Ireland) Plc

Report on the audit of the financial statements

Opinion In our opinion, Karnes Capital Investment Company (Ireland) Plc's financial statements:

• give a true and fair view of the Company's and Funds' assets, liabilities and financial position as at 31 October 2019 and of their results for the year then ended; • have been properly prepared in accordance with Generally Accepted Accounting Practice in Ireland (accounting standards issued by the Financial Reporting Council of the UK, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and Irish law); and

a have been properly prepared in accordance with the requirements of the Companies Act 2014 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended). We have audited the financial statements, included within the Annual Report and Audited Financial Statements, which comprise:

• the Statement of Financial Position as at 31 October 2019; • the Statement of Comprehensive Income for the year then ended; • the Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders for the year then ended;

• the Portfolio of Investments for each of the Funds as at 31 October 2019; and • the notes to the financial statements for the Company and for each of its Funds, which include a description of the significant accounting policies. Our opinion is consistent with our reporting to the Board of Directors.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (Ireland) ("ISAs (Ireland)") and applicable law. Our responsibilities under ISAs (Ireland) are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Ireland, which includes IAASA's Ethical Standard as applicable to listed public interest entities and we have fulfilled our other ethical responsibilities in accordance with these requirements. To the best of our knowledge and belief, we declare that non-audit services prohibited by IAASA's Ethical Standard were not provided to the Company.

We have provided no non-audit services to the Company in the period from 1 November 2018 to 31 October 2019.

Our audit approach

Overview Materiality

. Overall materiality: 50 basis points of Net Assets Value ("NAy") at 31 October 2019 for each of the Company's active Funds, 50 basis points of Average NAV for the Company's Funds that ceased trading in the current year and 50 basis points of Total Assets for the Iatoiity Company's Funds that ceased trading in the prior year. p Audit scope Audit • The Company is an open-ended investment Company with variable capital and is self- managed. The directors have delegated certain responsibilities to Kames Capital Plc (the "Investment Manager") and Citibank Europe Plc (the "Administrator") to manage certain duties and responsibilities with regards to the day-to-day management of the Key audit Company. We tailored the scope of our audit taking into account the types of matters investments within the Funds, the involvement of the third parties referred to overleaf, the accounting processes and controls, and the industry in which the Company operates. We look at each of the Funds at an individual level. Key audit matters • Existence of financial assets and financial liabilities at fair value through profit or loss. • Valuation of financial assets and financial liabilities at fair value through profit or loss. The scope of our audit As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we looked at where the directors made subjective judgements, for example the selection of pricing sources to value the investment portfolio. As in all of our audits, we also addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Key audit matters Key audit matters are those matters that, in the auditors' professional judgement, were of most significance in the audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. This is not a complete list of all risks identified by our audit.

Key audit matter How our audit addressed the key audit matter

Evistence ol financial assets ancltinancial liabilities atfui We obtained independent confirmation from the color thiuucjll pro/it or loss Depositary and counterparties for the investment portfolios Refer to the Portfolio of Investments for each of the Funds, held at 31 October 2019 and agreed the amounts held to the accounting policies set out in note i(d), Note 2 - 'Fair accounting records. Value Estimation' and Note 12 'Risks Associated with No material misstatements were identified as a result of the Financial Instruments'. procedures we performed. The financial assets and financial liabilities at fair value through profit or loss included in the Statement of Financial Position of each Fund are held in the Fund's name at 31 October 2019. This is considered a key audit matter as it represents the principal element of the financial statements. ljluation of financial assets and futancial liabilities at/u ii We tested the valuation of the transferable securities by color tl2rou(111 prq/it or loss independently agreeing the valuation of the transferable Refer to the Portfolio of Investments for each of the Funds, securities to third party vendor sources. accounting policies set out in note i(d), Note 2 - 'Fair We tested the valuation of futures, contracts for differences, Value Estimation' and Note 12 'Risks Associated with options and forward currency contracts by independently Financial Instruments'. agreeing the valuation to third party vendor sources. The financial assets and financial liabilities at fair value We tested the valuation of swaps by using our own in-house through profit or loss included in the Statement of valuation experts to revalue the swaps based on available Financial Position of each Fund at 31 October 2019 are market data and the terms of the underlying swap contracts. Key audit matter how our audit addressed the key audit matter valued at fair value in line with Generally Accepted No material misstatements were identified as a result of the Accounting Practice in Ireland. procedures we performed. This is considered a key audit matter as it represents the principal element of the financial statements.

How we tailored the audit scope We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking into account the structure of the Company, the accounting processes and controls, and the industry in which it operates. As at 31 October 2019 there are io active Funds, 3 Funds that ceased trading in the prior year and 3 Funds that ceased trading in the current year. The Company's Statement of Financial Position, Statement of Comprehensive Income, and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are an aggregation of the positions and results of the Funds. The directors control the affairs of the Company and are responsible for the overall investment policy which is determined by them. The directors have delegated certain duties and responsibilities to the Investment Manager with regards to the day to day management of the Company. The directors have delegated certain responsibilities to the Administrator. The financial statements, which remain the responsibility of the directors, are prepared on their behalf by the Administrator. The Company has appointed Citi Depositary Services Ireland Designated Activity Company (the "Depositary") to act as Depositary of the Company's assets. In establishing the overall approach to our audit we assessed the risk of material misstatement at a Fund level, taking into account the nature, likelihood and potential magnitude of any misstatement. As part of our risk assessment, we considered the Company's interaction with the Administrator, and we assessed the control environment in place at the Administrator. Materialitij The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole. Based on our professional judgement, we determined materiality for the financial statements of each of the Company's Funds as follows:

Overall materiality and how 50 basis points (2018: 50 basis points) of Net Assets Value ("NAV") at 31 October we determined it 2019 for each of the Company's Funds, 50 basis points of Average NAV for the Company's Funds that ceased trading in the current year and 50 basis points of Total Assets for the Company's Funds that ceased trading in the prior year. Rationale for benchmark We have applied this benchmark because the main objective of the Company is to applied provide investors with a total return at a fund level, taking account of the capital and income returns.

We agreed with the Board of Directors that we would report to them misstatements identified during our audit above 10% of overall materiality, for NAV per share impacting differences (2018: 10% of overall materiality, for NAV per share impacting differences) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which ISAs (Ireland) require us to report to you where: the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's and Funds' ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company's and Funds' ability to continue as going concerns.

Reporting on other information The other information comprises all of the information in the Annual Report and Audited Financial Statements other than the financial statements and our auditors' report thereon. The directors are responsible for the other information. Our

opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities. With respect to the Directors' Report, we also considered whether the disclosures required by the Companies Act 2014 have been included. Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (Ireland) and the Companies Act 2014 require us to also report certain opinions and matters as described below: Directors' Report In our opinion, based on the work undertaken in the course of the audit, the information given in the Directors' Report for the year ended 31 October 2019 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements. Based on our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Directors' Report. Corporate governance statement In our opinion, based on the work undertaken in the course of the audit of the financial statements, the description of the main features of the internal control and risk management systems in relation to the financial reporting process included in the Corporate Governance Statement, is consistent with the financial statements and has been prepared in accordance with section 1373(2)(c) of the Companies Act 2014. Based on our knowledge and understanding of the Company and its environment obtained in the course of the audit of the financial statements, we have not identified material misstatements in the description of the main features of the internal control and risk management systems in relation to the financial reporting process included in the Corporate Governance Statement. In our opinion, based on the work undertaken during the course of the audit of the financial statements, the information required by section 1373(2)(a),(b),(e) and (f) of the Companies Act 2014 is contained in the

Corporate Governance Statement. Responsibilities for the financial statements and the audit Responsibilities of the directors for the financial statements As explained more fully in the Statement of Directors' Responsibilities in respect of the Financial Statements set out on page 8, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for 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. In preparing the financial statements, the directors are responsible for assessing the Company's and Funds' ability to continue as going concerns, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditors' i'esponsihilities for the audit of the financial statements 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 an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the IAASA website at: https://wv.iaasa.ie/getmedia/b28go1-1cf6-458b-gb8f- a98202dc9c3a/Desci'iption of auditors responsibilities for auclit.pdf. This description forms part of our auditors' report. (T' of this report This report, including the opinions, has been prepared for and only for the Company's members as a body in accordance with section 391 of the Companies Act 2014 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2014 opinions on other matters • We have obtained all the information and explanations which we consider necessary for the purposes of our audit. • In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited. • The financial statements are in agreement with the accounting records.

Companies Act 2014 exception reporting Directors' remuneration and transactions Under the Companies Act 2014 we are required to report to you if, in our opinion, the disclosures of directors' remuneration and transactions specified by sections 305 to 312 of that Act have not been made. We have no exceptions to report arising from this responsibility.

Appointment

We were appointed by the Board of Directors on 22 August 2013 to audit the financial statements for the year ended 31 October 2013 and subsequent financial periods. The period of total uninterrupted engagement is 7 years, covering the years ended 31 October 2013 to 31 October 2019. a 1't- oiLJi Clodagh O'Reilly for and on behalf of PricewaterbouseCoopers Chartered Accountants and Statutory Audit Firm Dublin February 2020 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Comprehensive Income

For the financial year ended 31 October 2019 Strategic Investment High Yield Absolute Global Grade Global Global Return Bond Fund Bond Fund Bond Fund Bond Fund Notes USD USD USD GBP Income: Bond interest income 1g 12,771,733 6,130,133 7,380,734 22,369,683 Dividend income 1g - - - - Other income 1t 318,752 631,043 35,788 421,221 Net gain/(loss) on financial assets and liabilities at fair value through profit or loss 1d 12,418,257 13,045,538 3,918,550 (10,575,221)

Total income 25,508,742 19,806,714 11,335,072 12,215,683

Expenses: Operating expenses 1f, 1m, 11 (4,003,106) (1,369,529) (1,707,816) (6,551,080)

Total expenses (4,003,106) (1,369,529) (1,707,816) (6,551,080)

Operating profit for the financial year 21,505,636 18,437,185 9,627,256 5,664,603

Finance costs: Interest expense 1r (26,023) (15,187) (10,913) (2,726) Distribution to holders of Redeemable Participating Shares 1j, 9 (1,576,874) (1,388,083) (3,690,718) (3,268,720) Equalisation 1q (722,033) (605,018) (284,824) (4,445,620) Total finance costs (2,324,930) (2,008,288) (3,986,455) (7,717,066)

Profit/(loss) for the financial year before tax 19,180,706 16,428,897 5,640,801 (2,052,463)

Withholding tax 1g (96,573) (49,510) - (27,247)

Increase/(decrease) in net assets attributable to redeemable participating shareholders from operations 19,084,133 16,379,387 5,640,801 (2,079,710)

The accompanying notes form an integral part of these financial statements.

50 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Comprehensive Income (continued)

For the financial year ended 31 October 2019 Global Active Equity Equity Equity Long Market Market Income Dated Bond Neutral Plus Neutral Fund Fund(2) Fund(1) Fund(3) Notes USD GBP GBP GBP Income: Bond interest income 1g - - - - Dividend income 1g 15,346,939 - - - Other income 1t 276,120 - - - Net gain/(loss) on financial assets and liabilities at fair value through profit or loss 1d 59,039,100 - - - - Total income 74,662,159 - - -

Expenses: Operating expenses 1f, 1m, 11 (3,883,438) - - -

Total expenses (3,883,438) - - -

Operating profit for the financial year 70,778,721 - - -

Finance costs: Interest expense 1r (3,338) - - - Distribution to holders of Redeemable Participating Shares 1j, 9 (1,718,046) - - - Equalisation 1q 1,041,382 - - - Total finance costs (680,002) - - -

Profit for the financial year before tax 70,098,719 - - -

Withholding tax 1g (2,024,708) - - -

Increase in net assets attributable to redeemable participating shareholders from operations 68,074,011 - - -

(1) Kames Equity Market Neutral Plus Fund closed on 2 February 2018. (2) Kames Active Long Dated Bond Fund closed on 8 May 2018. (3) Kames Equity Market Neutral Fund closed on 2 July 2018.

The accompanying notes form an integral part of these financial statements.

51 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Comprehensive Income (continued)

For the financial year ended 31 October 2019 Absolute Absolute Emerging Global Return Bond Return Bond Market Bond Diversified Global Constrained Opportunities Income Fund(5) Fund(5) Fund(4) Fund Notes GBP EUR USD EUR Income: Bond interest income 1g 1,766,336 702,625 719,211 2,876,684 Dividend income 1g - - - 4,890,606 Other income 1t 37,721 3,301 83,091 662,945 Net gain/(loss) on financial assets and liabilities at fair value through profit or loss 1d (1,837,209) (820,432) 729,357 15,107,332

Total income (33,152) (114,506) 1,531,659 23,537,567

Expenses: 1f, 1m, Operating expenses 11 (407,961) (184,045) (72,952) (1,330,080)

Total expenses (407,961) (184,045) (72,952) (1,330,080)

Operating (loss)/profit for the financial year (441,113) (298,551) 1,458,707 22,207,487

Finance costs: Interest expense 1r - - - (1,259) Distribution to holders of Redeemable Participating Shares 1j, 9 (14,252) - - (5,157,463) Equalisation 1q (1,209,972) (453,956) (780,051) (559,210) Total finance costs (1,224,224) (453,956) (780,051) (5,717,932)

(Loss)/profit for the financial year before tax (1,665,337) (752,507) 678,656 16,489,555

Withholding tax 1g (18,423) - - (558,967)

(Decrease)/Increase in net assets attributable to redeemable participating shareholders from operations (1,683,760) (752,507) 678,656 15,930,588

(4) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. (5) Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

The accompanying notes form an integral part of these financial statements.

52 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Comprehensive Income (continued)

For the financial year ended 31 October 2019 Global Global Global Short Dated Sustainable Diversified Equity High Yield Total Equity Growth Market Global 31 October Fund Fund Neutral Fund Bond Fund 2019 Notes EUR EUR GBP USD USD Income: Bond interest income 1g - 633,445 - 5,412,312 67,887,552 Dividend income 1g 570,399 1,684,574 - - 23,381,382 Other income 1t 13 2,305 343,501 60,490 3,178,905 Net gain/(loss) on financial assets and liabilities at fair value through profit or loss 1d 19,258,997 545,330 (631,817) 1,191,308 112,062,535

Total income 19,829,409 2,865,654 (288,316) 6,664,110 206,510,374

Expenses: Operating expenses 1f, 1m, 11 (749,659) (527,818) (849,265) (482,204) (24,601,593)

Total expenses (749,659) (527,818) (849,265) (482,204) (24,601,593)

Operating profit/(loss) for the financial year 19,079,750 2,337,836 (1,137,581) 6,181,906 181,908,781

Finance costs: Interest expense 1r - (231) (2,919) (15,481) (79,806) Distribution to holders of Redeemable Participating Shares 1j, 9 (37) (3,591) - (3,102,755) (21,460,359) Equalisation 1q 1,085 (100,339) 180 (1,949,088) (11,752,460) Total finance costs 1,048 (104,161) (2,739) (5,067,324) (33,292,625)

Profit/(loss) for the financial year before tax 19,080,798 2,233,675 (1,140,320) 1,114,582 148,616,156

Withholding tax 1g (89,850) (176,443) (48,090) - (3,218,109)

Increase/(decrease) in net assets attributable to redeemable participating shareholders from operations 18,990,948 2,057,232 (1,188,410) 1,114,582 145,398,047

There were no gains/losses other than those dealt with in the Statement of Comprehensive Income. Gains and losses arose solely from continuing investment activities with the exception of Active Long Dated Bond Fund, Equity Market Neutral Plus Fund, Equity Market Neutral Fund, Emerging Market Bond Opportunities Fund, Absolute Return Bond Global Fund and Absolute Return Bond Constrained Fund which have been prepared on a non going concern basis.

The GBP and EUR sub-funds were translated into USD at an average rate of 1.27348 and 1.12439 respectively.

The accompanying notes form an integral part of these financial statements.

53 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Comprehensive Income (continued)

For the financial year ended 31 October 2018 Strategic Investment High Yield Absolute Global Grade Global Global Return Bond Fund Bond Fund Bond Fund Bond Fund Notes USD USD USD GBP Income: Bond interest income 1g 19,306,415 8,348,042 13,216,254 39,456,214 Dividend income 1g - - - - Other income 1t 371,748 351,171 61,560 352,560 Net gain/(loss) on financial assets and liabilities at fair value through profit or loss 1d (38,195,696) (22,451,168) (10,360,322) (22,524,141)

Total income (18,517,533) (13,751,955) 2,917,492 17,284,633

Expenses: Operating expenses 1f, 1m, 11 (7,548,271) (1,987,408) (2,913,124) (12,125,896)

Total expenses (7,548,271) (1,987,408) (2,913,124) (12,125,896)

Operating (loss)/profit for the financial year (26,065,804) (15,739,363) 4,368 5,158,737

Finance costs: Interest expense 1r (44,296) (15,807) (51,532) (3,265) Distribution to holders of Redeemable Participating Shares 1j, 9 (3,858,962) (3,111,201) (8,711,131) (9,411,209) Equalisation 1q (690,762) (309,527) (1,232,967) (1,339,969) Total finance costs (4,594,020) (3,436,535) (9,995,630) (10,754,443)

Loss for the financial year before tax (30,659,824) (19,175,898) (9,991,262) (5,595,706)

Withholding tax 1g (104,129) (48,810) (76,054) -

Decrease in net assets attributable to redeemable participating shareholders from operations (30,763,953) (19,224,708) (10,067,316) (5,595,706)

The accompanying notes form an integral part of these financial statements.

54 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Comprehensive Income (continued)

For the financial year ended 31 October 2018 Global Active Equity Equity Equity Long Market Market Income Dated Neutral Plus Neutral Fund Bond Fund(2) Fund(1) Fund(3) Notes USD GBP GBP GBP Income: Bond interest income 1g - 1,642,871 415 39,305 Dividend income 1g 22,417,755 - 5,935 89,786 Other income 1t 25,062 23,755 5,498 164,879 Net gain/(loss) on financial assets and liabilities at fair value through profit or loss 1d (36,792,039) (1,840,683) (651,059) (4,518,724)

Total income (14,349,222) (174,057) (639,211) (4,224,754)

Expenses: Operating expenses 1f, 1m, 11 (5,106,138) (424,255) (14,367) (660,166)

Total expenses (5,106,138) (424,255) (14,367) (660,166)

Operating loss for the financial year (19,455,360) (598,312) (653,578) (4,884,920)

Finance costs: Interest expense 1r (3,329) - - (424) Distribution to holders of Redeemable Participating Shares 1j, 9 (1,843,422) - - - Equalisation 1q (2,411,938) (1,243,330) (2,097) 2 Total finance costs (4,258,689) (1,243,330) (2,097) (422)

Loss for the financial year before tax (23,714,049) (1,841,642) (655,675) (4,885,342)

Withholding tax 1g (2,832,084) (4,668) - (2,112)

Decrease in net assets attributable to redeemable participating shareholders from operations (26,546,133) (1,846,310) (655,675) (4,887,454)

(1) Kames Equity Market Neutral Plus Fund closed on 2 February 2018. (2) Kames Active Long Dated Bond Fund closed on 8 May 2018. (3) Kames Equity Market Neutral Fund closed on 2 July 2018.

The accompanying notes form an integral part of these financial statements.

55 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Comprehensive Income (continued)

For the financial year ended 31 October 2018 Absolute Absolute Emerging Global Return Return Bond Market Bond Diversified Bond Constrained Opportunities Income Global Fund Fund Fund Fund Notes GBP EUR USD EUR Income: Bond interest income 1g 3,044,841 1,010,698 5,601,947 2,744,545 Dividend income 1g - - - 5,535,027 Other income 1t 28,420 - 118,794 504,193 Net gain/(loss) on financial assets and liabilities at fair value through profit or loss 1d (2,396,114) (1,154,604) (9,027,081) (11,077,715)

Total income 677,147 (143,906) (3,306,340) (2,293,950)

Expenses: Operating expenses 1f, 1m, 11 (644,631) (256,337) (533,374) (1,356,231)

Total expenses (644,631) (256,337) (533,374) (1,356,231)

Operating profit/(loss) for the financial year 32,516 (400,243) (3,839,714) (3,650,181)

Finance costs: Interest expense 1r (86) (12) - (714) Distribution to holders of Redeemable Participating Shares 1j, 9 (52,737) - - (4,465,344) Equalisation 1q 67,551 (93,358) (2,784,339) (126,541) Total finance costs 14,728 (93,370) (2,784,339) (4,592,599)

Profit/(loss) for the financial year before tax 47,244 (493,613) (6,624,053) (8,242,780)

Withholding tax 1g (20,490) - - (597,941)

Increase/(decrease) in net assets attributable to redeemable participating shareholders from operations 26,754 (493,613) (6,624,053) (8,840,721)

The accompanying notes form an integral part of these financial statements.

56 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Comprehensive Income (continued)

For the financial year ended 31 October 2018 Global Global Global Short Dated Sustainable Diversified Equity High Yield Total Equity Growth Market Global 31 October Fund Fund Neutral Fund Bond Fund 2018 Notes EUR EUR GBP USD USD Income: Bond interest income 1g - 621,097 - 5,706,501 116,716,512 Dividend income 1g 611,564 1,768,080 492,288 - 32,608,733 Other income 1t - 51,286 509,477 104,493 3,149,254 Net gain/(loss) on financial assets and liabilities at fair value through profit or loss 1d (3,603,173) (4,522,555) (4,192,277) (12,954,816) (202,476,495)

Total income (2,991,609) (2,082,092) (3,190,512) (7,143,822) (50,001,996)

Expenses: Operating expenses 1f, 1m, 11 (691,463) (586,033) (2,511,487) (596,538) (44,117,310)

Total expenses (691,463) (586,033) (2,511,487) (596,538) (44,117,310)

Operating loss for the financial year (3,683,072) (2,668,125) (5,701,999) (7,740,360) (94,119,306)

Finance costs: Interest expense 1r - (315) (271) (8,738) (130,372) Distribution to holders of Redeemable Participating Shares 1j, 9 (25) (5,839) - (4,307,431) (39,853,337) Equalisation 1q 7,832 311,210 223 912,918 (9,780,035) Total finance costs 7,807 305,056 (48) (3,403,251) (49,763,744)

Loss for the financial year before tax (3,675,265) (2,363,069) (5,702,047) (11,143,611) (143,883,050)

Withholding tax 1g (90,419) (194,256) (69,266) - (4,239,123)

Decrease in net assets attributable to redeemable participating shareholders from operations (3,765,684) (2,557,325) (5,771,313) (11,143,611) (148,122,173)

There were no gains/losses other than those dealt with in the Statement of Comprehensive Income. Gains and losses arose solely from continuing investment activities with the exception of Active Long Dated Bond Fund, Equity Market Neutral Plus Fund and Equity Market Neutral Fund which have been prepared on a non going concern basis.

The GBP and EUR sub-funds were translated into USD at an average rate of 1.34301 and 1.18783 respectively.

The accompanying notes form an integral part of these financial statements.

57 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Financial Position

As at 31 October 2019 Strategic Investment High Yield Absolute Global Grade Global Global Return Bond Fund Bond Fund Bond Fund Bond Fund Notes USD USD USD GBP Current assets Financial assets at fair value through profit or loss 1d 319,583,607 134,725,260 136,017,720 532,806,034 Accrued interest receivable 1g 3,180,114 1,557,223 1,763,547 10,572,223 Receivable from sale of securities 1o 401,670 201,408 1,019,876 148,347 Due from shareholders 1n 40,988 5,190 572,980 19,690 Other assets 1s 63,146 60 64,919 23,441 Fund assets cash balances 1p - 68 25,353 5,930 Fund assets receivables 1p - - - - Cash and cash equivalents 1e, 10 6,318,518 10,882,132 2,819,793 33,502,732 Collateral cash 1e, 10 5,450,000 4,340,000 2,200,000 3,250,000 Collateral cash receivable 1e, 10 11,650,000 1,060,000 1,070,000 4,400,000 Margin owed from broker 1e, 10 1,427,499 1,103,494 - 2,980,846 348,115,542 153,874,835 145,554,188 587,709,243 Current liabilities Financial liabilities at fair value through profit or loss 1d 15,928,988 2,009,824 1,354,724 15,708,717 Interest payable 1g - 3,067 33,075 - Investment management fee payable 11 542,720 234,726 264,430 458,189 Trustee fee payable 11 11,291 10,872 11,248 37,898 Depositary fee payable 11 36,518 7,920 19,061 62,378 Audit fee payable 11 24,166 5,835 24,166 17,751 Payable for purchase of securities 1o 400,246 1,802,839 1,195,977 8,638,332 Due to shareholders 1n 53,333 321,364 44,899 3,254,874 Distributions payable 9 194,331 152,182 867,517 759,430 Other liabilities 113,947 18,167 64,592 42,104 Distributor fee payable 11 43,326 18,336 63,991 16 Outstanding fund assets cash balances 1p - - - - Fund assets payable 1p - 68 25,353 5,930 Overdrawn cash and cash equivalents 1e, 10 183 - 928 16 Collateral cash payable 1e, 10 5,450,000 4,340,000 2,200,000 3,250,000 Margin due to broker 1e, 10 1,937 - - 267,547 22,800,986 8,925,200 6,169,961 32,503,182

Net assets attributable to redeemable participating shareholders 4 325,314,556 144,949,635 139,384,227 555,206,061

The accompanying notes form an integral part of these financial statements.

58 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Financial Position (continued)

As at 31 October 2019 Global Active Long Equity Market Equity Market Equity Income Dated Bond Neutral Plus Neutral Fund Fund(2) Fund(1) Fund(3) Notes USD GBP GBP GBP Current assets Financial assets at fair value through profit or loss 1d 481,459,756 - - - Accrued interest receivable 1g - - - - Receivable from sale of securities 1o 1 - - - Due from shareholders 1n 56,175 - - - Other assets 1s 1,178,156 - - - Fund assets cash balances 1p 112,231 - - - Fund assets receivables 1p - - - - Cash and cash equivalents 1e, 10 13,101,868 21,072 2,363 - Collateral cash 1e, 10 420,000 - - - Collateral cash receivable 1e, 10 - - - - Margin owed from broker 1e, 10 - - - - 496,328,187 21,072 2,363 - Current liabilities Financial liabilities at fair value through profit or loss 1d 53,552 - - - Interest payable 1g 531 - - - Investment management fee payable 11 917,112 - - - Trustee fee payable 11 - - - - Depositary fee payable 11 28,814 - - - Audit fee payable 11 34,360 - - - Payable for purchase of securities 1o - - - - Due to shareholders 1n 509,982 21,072 2,363 - Distributions payable 9 408,983 - - - Other liabilities 6,000 - - - Distributor fee payable 11 6,764 - - - Outstanding fund assets cash balances 1p - - - - Fund assets payable 1p 112,231 - - - Overdrawn cash and cash equivalents 1e, 10 - - - - Collateral cash payable 1e, 10 420,000 - - - Margin due to broker 1e, 10 - - - - 2,498,329 21,072 2,363 -

Net assets attributable to redeemable participating shareholders 4 493,829,858 - - -

(1) Kames Equity Market Neutral Plus Fund closed on 2 February 2018. (2) Kames Active Long Dated Bond Fund closed on 8 May 2018. (3) Kames Equity Market Neutral Fund closed on 2 July 2018.

The accompanying notes form an integral part of these financial statements.

59 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Financial Position (continued)

As at 31 October 2019 Absolute Absolute Emerging Return Bond Return Bond Market Bond Global Global Constrained Opportunities Diversified Fund(5) Fund(5) Fund(4) Income Fund Notes GBP EUR USD EUR Current assets Financial assets at fair value through profit or loss 1d 789 991 - 168,349,446 Accrued interest receivable 1g 62 1 - 949,737 Receivable from sale of securities 1o 3,984,782 - - 2,984 Due from shareholders 1n - - - 932,576 Other assets 1s 548 384 - 444,223 Fund assets cash balances 1p 210 - - 30,443 Fund assets receivables 1p - - - 11,283 Cash and cash equivalents 1e, 10 72,102 31,960,468 55,652 3,133,293 Collateral cash 1e, 10 - - - 1,630,000 Collateral cash receivable 1e, 10 270,000 - - 350,000 Margin owed from broker 1e, 10 27 - - 27,540 4,328,520 31,961,844 55,652 175,861,525 Current liabilities Financial liabilities at fair value through profit or loss 1d 2,999 537 - 454,620 Interest payable 1g - 12 - 59 Investment management fee payable 11 31,058 22,260 - 194,375 Trustee fee payable 11 - - - 14,781 Depositary fee payable 11 2,217 - - 3,090 Audit fee payable 11 - - 10,228 7,914 Payable for purchase of securities 1o - 53,682 - 866,025 Due to shareholders 1n 3,685,163 31,885,263 37,710 2,037 Distributions payable 9 - - - 686,822 Other liabilities 56,133 90 6,518 96,960 Distributor fee payable 11 - - - 49,805 Outstanding fund assets cash balances 1p - - - 11,283 Fund assets payable 1p 210 - - 30,443 Overdrawn cash and cash equivalents 1e, 10 550,740 - 1,196 180,883 Collateral cash payable 1e, 10 - - - 1,630,000 Margin due to broker 1e, 10 - - - - 4,328,520 31,961,844 55,652 4,229,097

Net assets attributable to redeemable participating shareholders 4 - - - 171,632,428

(4) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. (5) Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

The accompanying notes form an integral part of these financial statements.

Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Financial Position (continued)

As at 31 October 2018 Strategic Investment High Yield Absolute Global Grade Global Global Return Bond Fund Bond Fund Bond Fund Bond Fund Notes USD USD USD GBP Current assets Financial assets at fair value through profit or loss 1d 534,537,467 212,182,796 179,927,480 1,615,061,194 Accrued interest receivable 1g 3,945,584 2,333,462 2,339,726 36,127,280 Receivable from sale of securities 1o 11,367,044 7,122,504 169,365 2,142 Due from shareholders 1n 512,852 1,815,817 75,627 905,136 Other assets 1s 3,186 50,235 - 2,665 Fund assets cash balances 1p 120 559 1,244 79,883 Fund assets receivables 1p - - 206 - Cash and cash equivalents 1e, 10 9,992,453 20,078,813 2,097,147 128,647,814 Collateral cash 1e, 10 4,950,000 1,640,000 - 3,410,000 Collateral cash receivable 1e, 10 5,190,000 - - - Collateral receivable from broker 1e, 10, 16 17,630,000 7,490,000 5,980,000 14,470,000 Margin receivable from broker 1e, 10 - - - - Margin owed from broker 1e, 10 5,673,755 1,139,584 - 30,638,563 593,802,461 253,853,770 190,590,795 1,829,344,677 Current liabilities Financial liabilities at fair value through profit or loss 1d 5,257,811 873,649 366,930 32,559,652 Interest payable 1g - - 31,137 - Investment management fee payable 11 1,043,045 360,617 384,849 2,612,689 Trustee fee payable 11 22,752 - 10,899 60,415 Depositary fee payable 11 18,585 3,700 10,701 38,501 Audit fee payable 11 17,925 5,835 17,925 13,709 Payable for purchase of securities 1o 12,484,381 4,303,503 290,540 2,164 Due to shareholders 1n 723,290 2,521,923 840,330 869,652 Distributions payable 9 1,045,752 933,867 1,450,177 2,228,676 Other liabilities 281,834 125,231 96,481 72,800 Distributor fees payable 11 114,713 11,738 75,334 - Outstanding fund assets cash balances 1p - - 206 - Fund assets payable 1p 120 559 1,244 79,883 Overdrawn cash and cash equivalents 1e, 10 14,924,988 4,200,971 3,043,873 902,894 Collateral cash payable 1e, 10 2,483,485 - - - Collateral payable to broker 1e, 10, 16 4,950,000 1,640,000 2,100,000 3,410,000 Margin due to broker 1e, 10 248 194 - 4,717,839 43,368,929 14,981,787 8,720,626 47,568,874

Net assets attributable to redeemable participating shareholders 4 550,433,532 238,871,983 181,870,169 1,781,775,803

The accompanying notes form an integral part of these financial statements.

62 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Financial Position (continued)

As at 31 October 2018 Equity Global Active Long Equity Market Market Equity Dated Bond Neutral Plus Neutral Income Fund Fund(2) Fund(1) Fund(3) Notes USD GBP GBP GBP Current assets Financial assets at fair value through profit or loss 1d 447,238,912 - - - Accrued interest receivable 1g 2,544 - - - Receivable from sale of securities 1o - - - - Due from shareholders 1n 6,135 - - - Other assets 1s 1,371,353 134 - 19,186 Fund assets cash balances 1p 1,552 - - 1 Fund assets receivables 1p 44 - - - Cash and cash equivalents 1e, 10 7,217,084 35,918 10,837 9,959 Collateral cash 1e, 10 - - - - Collateral cash receivable 1e, 10 - - - - Collateral receivable from broker 1e, 10, 16 1,970,000 - - - Margin receivable from broker 1e, 10 - - - - Margin owed from broker 1e, 10 - - - 4 457,807,624 36,052 10,837 29,150 Current liabilities Financial liabilities at fair value through profit or loss 1d 222,655 - - - Interest payable 1g - - - - Investment management fee payable 11 1,027,063 14,618 - - Trustee fee payable 11 17,524 1,016 - 4,609 Depositary fee payable 11 12,337 - - 2,557 Audit fee payable 11 16,791 7,554 - 7,103 Payable for purchase of securities 1o - - - - Due to shareholders 1n 61,109 - 9,096 - Distributions payable 9 355,019 - - - Other liabilities 13,300 12,864 1,741 14,880 Distributor fees payable 11 4,867 - - - Outstanding fund assets cash balances 1p 44 - - - Fund assets payable 1p 1,552 - - 1 Overdrawn cash and cash equivalents 1e, 10 1,861,158 - - - Collateral cash payable 1e, 10 - - - - Collateral payable to broker 1e, 10, 16 - - - - Margin due to broker 1e, 10 - - - - 3,593,419 36,052 10,837 29,150

Net assets attributable to redeemable participating shareholders 4 454,214,205 - - -

(1) Kames Equity Market Neutral Plus Fund closed on 2 February 2018. (2) Kames Active Long Dated Bond Fund closed on 8 May 2018. (3) Kames Equity Market Neutral Fund closed on 2 July 2018.

The accompanying notes form an integral part of these financial statements.

63 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Financial Position (continued)

As at 31 October 2018 Absolute Absolute Emerging Global Return Bond Return Bond Market Bond Diversified Global Constrained Opportunities Income Fund Fund Fund Fund Notes GBP EUR USD EUR Current assets Financial assets at fair value through profit or loss 1d 112,652,873 65,443,660 40,644,199 153,332,078 Accrued interest receivable 1g 2,541,096 986,193 668,345 697,189 Receivable from sale of securities 1o 122 - - 3,265 Due from shareholders 1n 48,088 - - 851,402 Other assets 1s 1,842 - - 349,606 Fund assets cash balances 1p 4,205 - - 25,775 Fund assets receivables 1p - - - 33,910 Cash and cash equivalents 1e, 10 8,965,359 1,894,848 5,177,605 4,155,756 Collateral cash 1e, 10 - - - 360,000 Collateral cash receivable 1e, 10 - - - - Collateral receivable from broker 1e, 10, 16 710,000 410,000 - 980,000 Margin receivable from broker 1e, 10 - - - - Margin owed from broker 1e, 10 1,967,132 1,032,441 - 378,242 126,890,717 69,767,142 46,490,149 161,167,223 Current liabilities Financial liabilities at fair value through profit or loss 1d 1,553,375 841,724 189 2,077,698 Interest payable 1g 1 12 - - Investment management fee payable 11 107,843 37,749 61,781 201,699 Trustee fee payable 11 - - 5,551 13,185 Depositary fee payable 11 2,600 - 2,644 3,205 Audit fee payable 11 - - 12,666 11,525 Payable for purchase of securities 1o 1 - - 2,534 Due to shareholders 1n 306 - - 644,284 Distributions payable 9 7,801 - - 1,113,186 Other liabilities 51,841 319 17,323 57,510 Distributor fees payable 11 - - - 19,581 Outstanding fund assets cash balances 1p - - - 33,910 Fund assets payable 1p 4,205 - - 25,775 Overdrawn cash and cash equivalents 1e, 10 7,393 - - 746,149 Collateral cash payable 1e, 10 - - - - Collateral payable to broker 1e, 10, 16 - - - 360,000 Margin due to broker 1e, 10 415,100 200,754 - 1 2,150,466 1,080,558 100,154 5,310,242

Net assets attributable to redeemable participating shareholders 4 124,740,251 68,686,584 46,389,995 155,856,981

The accompanying notes form an integral part of these financial statements.

64 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Financial Position (continued)

As at 31 October 2018 Global Global Global Short Dated Sustainable Diversified Equity High Yield Total Equity Growth Market Global 31 October Fund Fund Neutral Fund Bond Fund 2018 Notes EUR EUR GBP USD USD Current assets Financial assets at fair value through profit or loss 1d 73,671,697 66,488,404 54,463,890 217,205,646 4,315,519,843 Accrued interest receivable 1g - 136,965 238 2,961,205 63,711,421 Receivable from sale of securities 1o 1,866,204 276,640 221,754 2,249 21,382,182 Due from shareholders 1n 107,907 9,073,627 86,853 797,295 15,919,148 Other assets 1s 34,612 95,341 17,227 1,025 2,022,323 Fund assets cash balances 1p 966 9,016,705 939 48,587 10,420,882 Fund assets receivables 1p - - - - 38,722 Cash and cash equivalents 1e, 10 2,057,903 4,563,677 63,706,866 1,464,421 317,643,363 Collateral cash 1e, 10 - 250,000 - 1,600,000 13,238,007 Collateral cash receivable 1e, 10 - - - - 5,190,000 Collateral receivable from broker 1e, 10, 16 - - 1,470,000 6,110,000 62,025,729 Margin receivable from broker 1e, 10 - - 430,000 - 549,282 Margin owed from broker 1e, 10 - 531,002 427,841 - 51,213,314 77,739,289 90,432,361 120,825,608 230,190,428 4,878,874,216 Current liabilities Financial liabilities at fair value through profit or loss 1d - 859,501 2,038,391 398,657 57,587,074 Interest payable 1g - 9 - - 31,162 Investment management fee payable 11 115,828 74,549 204,363 144,618 7,264,563 Trustee fee payable 11 7,730 8,627 7,868 - 184,653 Depositary fee payable 11 828 1,280 2,786 - 113,322 Audit fee payable 11 10,983 11,015 10,382 - 158,672 Payable for purchase of securities 1o 162,222 6,790,876 1,860,679 164 27,349,669 Due to shareholders 1n 169,378 23,779 1,800,680 59,043 8,578,903 Distributions payable 9 2 1,273 - 1,577,154 9,483,252 Other liabilities 14,269 31,077 120,475 79,564 1,081,565 Distributor fees payable 11 - - - 175 229,043 Outstanding fund assets cash balances 1p - - - - 38,722 Fund assets payable 1p 966 9,016,705 939 48,587 10,420,882 Overdrawn cash and cash equivalents 1e, 10 - 487,260 68,818 792,842 27,473,900 Collateral cash payable 1e, 10 - - - - 2,483,485 Collateral payable to broker 1e, 10, 16 - 250,000 - 1,600,000 15,338,007 Margin due to broker 1e, 10 - - 825,663 - 7,839,726 482,206 17,555,951 6,941,044 4,700,804 175,656,600

Net assets attributable to redeemable participating shareholders 4 77,257,083 72,876,410 113,884,564 225,489,624 4,703,217,616

The GBP and EUR sub-funds were translated into USD at a rate of 1.27740 and 1.13455 respectively.

The accompanying notes form an integral part of these financial statements.

65 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders

For the financial year ended 31 October 2019 Strategic Investment High Yield Absolute Global Grade Global Global Return Bond Bond Fund Bond Fund Bond Fund Fund Notes USD USD USD GBP Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2018 550,433,532 238,871,983 181,870,169 1,781,775,803

Issuance of Shares 4 18,921,322 20,874,401 13,672,378 198,060,644

Redemption of Shares 4 (263,753,807) (131,359,078) (61,968,862) (1,425,871,542)

Dilution adjustments 1l 629,376 182,942 169,741 3,320,866

Foreign exchange consolidation adjustments 1c - - - -

Increase/(decrease) in Net Assets Attributable to Redeemable Participating Shareholders from operations 19,084,133 16,379,387 5,640,801 (2,079,710)

Net assets attributable to redeemable participating shareholders as at 31 October 2019 4 325,314,556 144,949,635 139,384,227 555,206,061

Global Equity Active Long Equity Market Equity Market Income Dated Bond Neutral Plus Neutral Fund Fund(2) Fund(1) Fund(3) Notes USD GBP GBP GBP Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2018 454,214,205 - - -

Issuance of Shares 4 82,441,120 - - -

Redemption of Shares 4 (111,349,516) - - -

Dilution adjustments 1l 450,038 - - -

Foreign exchange consolidation adjustments 1c - - - -

Increase in Net Assets Attributable to Redeemable Participating Shareholders from operations 68,074,011 - - -

Net assets attributable to redeemable participating shareholders as at 31 October 2019 4 493,829,858 - - -

(1) Kames Equity Market Neutral Plus Fund closed on 2 February 2018. (2) Kames Active Long Dated Bond Fund closed on 8 May 2018. (3) Kames Equity Market Neutral Fund closed on 2 July 2018.

The accompanying notes form an integral part of these financial statements. . 66 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders (continued)

For the financial year ended 31 October 2019 Absolute Absolute Emerging Global Return Bond Bond Market Bond Diversified Global Constrained Opportunities Income Fund(5) Fund(5) Fund(4) Fund Notes GBP EUR USD EUR Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2018 124,740,251 68,686,584 46,389,995 155,856,981

Issuance of Shares 4 7,259,955 450 25 62,782,911

Redemption of Shares 4 (130,517,622)* (67,909,777) (47,068,676) (62,991,376)**

Dilution adjustments 1l 201,176 (24,750) - 53,324

Foreign exchange consolidation adjustments 1c - - - -

(Decrease)/increase in Net Assets Attributable to Redeemable Participating Shareholders from operations (1,683,760) (752,507) 678,656 15,930,588

Net assets attributable to redeemable participating shareholders as at 31 October 2019 4 - - - 171,632,428

Global Global Global Short Dated Sustainable Diversified Equity High Yield Total Equity Growth Market Global Bond 31 October Fund Fund Neutral Fund Fund 2019 Notes EUR EUR GBP USD USD Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2018 77,257,083 72,876,410 113,884,564 225,489,624 4,703,217,616

Issuance of Shares 4 28,181,881 4,618,370 18,772,329 15,934,436 544,694,198

Redemption of Shares 4 (10,639,684) (22,354,071) (38,185,374) (193,553,363) (3,023,987,723)

Dilution adjustments 1l 42,607 43,960 17,378 450,717 6,519,643

Foreign exchange consolidation adjustments 1c - - - - (405,358)

Increase/(decrease) in Net Assets Attributable to Redeemable Participating Shareholders from operations 18,990,948 2,057,232 (1,188,410) 1,114,582 145,398,047

Net assets attributable to redeemable participating shareholders as at 31 October 2019 4 113,832,835 57,241,901 93,300,487 49,435,996 2,375,436,423

* The Redemption of Shares includes in-specie transactions to the value of GBP 50,802,019. ** The Redemption of Shares includes in-specie transactions to the value of EUR 36,948,651. (4) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. (5) Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019. The GBP and EUR sub-funds were translated into USD at a rate of 1.27348 and 1.12439 respectively. The accompanying notes form an integral part of these financial statements.

67 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders (continued)

For the financial year ended 31 October 2018 Strategic Investment High Yield Absolute Global Grade Global Global Return Bond Bond Fund Bond Fund Bond Fund Fund Notes USD USD USD GBP Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2017 640,593,691 221,311,328 390,484,016 1,889,812,666

Issuance of Shares 4 159,797,403 123,921,773 40,131,894 397,338,876

Redemption of Shares 4 (219,367,688) (87,308,005) (239,311,596) (500,598,668)

Dilution adjustments 1l 174,079 171,595 633,171 818,635

Foreign exchange consolidation adjustments 1c - - - -

Decrease in Net Assets Attributable to Redeemable Participating Shareholders from operations (30,763,953) (19,224,708) (10,067,316) (5,595,706)

Net assets attributable to redeemable participating shareholders as at 31 October 2018 4 550,433,532 238,871,983 181,870,169 1,781,775,803

Issuance of Shares 4 8,976,015 235,011 4,717 5,806,212

Redemption of Shares 4 (91,636,260) (98,816,059)* (26,624,613) (125,430,007)

Dilution adjustments 1l 178,805 33,250 166,113 210,972

Foreign exchange consolidation adjustments 1c - - - -

Decrease in Net Assets Attributable to Redeemable Participating Shareholders from operations (26,546,133) (1,846,310) (655,675) (4,887,454)

Net assets attributable to redeemable participating shareholders as at 31 October 2018 4 454,214,205 - - -

*The Redemption of Shares includes in-specie transactions to the value of GBP 92,825,598.

(1) Kames Equity Market Neutral Plus Fund closed on 2 February 2018. (2) Kames Active Long Dated Bond Fund closed on 8 May 2018. (3) Kames Equity Market Neutral Fund closed on 2 July 2018.

The accompanying notes form an integral part of these financial statements. 68 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders (continued)

For the financial year ended 31 October 2018

Absolute Absolute Emerging Global Return Bond Market Bond Diversified Bond Global Constrained Opportunities Income Fund Fund Fund Fund Notes GBP EUR USD EUR Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2017 128,999,485 83,169,590 102,374,869 149,706,012

Issuance of Shares 4 39,935,381 19,891,343 50,907,126 50,012,020

Redemption of Shares 4 (44,220,428) (33,889,485) (100,422,960) (35,082,355)*

Dilution adjustments 1l (941) 8,749 155,013 62,025

Foreign exchange consolidation adjustments 1c - - - -

Increase/(decrease) in Net Assets Attributable to Redeemable Participating Shareholders from operations 26,754 (493,613) (6,624,053) (8,840,721)

Net assets attributable to redeemable participating shareholders as at 31 October 2018 4 124,740,251 68,686,584 46,389,995 155,856,981

Global Global Short Dated Sustainable Diversified Global Equity High Yield Total Equity Growth Market Global 31 October Fund Fund Neutral Fund Bond Fund 2018 Notes EUR EUR GBP USD USD Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2017 64,115,339 64,135,697 86,760,158 91,963,780 5,546,518,347

Issuance of Shares 4 28,022,533 38,147,842 55,498,406 162,196,499 1,377,480,647

Redemption of Shares 4 (11,167,329) (26,918,628) (22,661,751) (17,894,000) (1,982,159,870)

Dilution adjustments 1l 52,224 68,824 59,064 366,956 3,636,047

Foreign exchange consolidation adjustments 1c - - - - (94,135,382)

Decrease in Net Assets Attributable to Redeemable Participating Shareholders from operations (3,765,684) (2,557,325) (5,771,313) (11,143,611) (148,122,173)

Net assets attributable to redeemable participating shareholders as at 31 October 2018 4 77,257,083 72,876,410 113,884,564 225,489,624 4,703,217,616

* The Redemption of Shares includes in-specie transactions to the value of EUR 18,244,212. The GBP and EUR sub-funds were translated into USD at a rate of 1.34301 and 1.18783 respectively. The accompanying notes form an integral part of these financial statements.

69 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements

1. Significant Accounting Policies a) Statement of Compliance The financial statements are prepared in accordance with FRS 102 Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) issued by the Financial Reporting Council (“FRC”) and in accordance with Irish statute comprising the Companies Act 2014, the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended (“the UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019, as amended (the “Central Bank UCITS Regulations”). The financial statements have been prepared on a historical cost basis, except for financial instruments classified at fair value through profit or loss that have been measured at fair value.

The Company has applied the same accounting policies and methods of computation in this annual report and financial statements as in its annual financial statements for the year ended 31 October 2018, except for the adoption of any new accounting standards. The format and certain wordings of the financial statements have been adapted from those contained in the FRS 102 and the Companies Act 2014 so that, in the opinion of the Directors, they more appropriately reflect the nature of the Company’s business as an investment fund. The Company has availed of the exemption available to open-ended investment Funds under FRS 102 (Section 7.1A(c)) not to present a cash flow statement. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. b) Basis of Accounting and Presentation of Financial Statements The financial statements are measured and presented in the currency of the primary economic environment in which each Fund operates. These are the United States Dollar (“USD”), Euro (“EUR”) and Pound Sterling (“GBP”) reflecting the fact that the Funds’ operations are conducted in USD, EUR and GBP. The financial statements are prepared on a fair value basis for the financial assets and financial liabilities through profit or loss. The financial statements have been prepared on the going concern basis for all Funds with the exception of Kames Active Long Dated Bond Fund, Kames Equity Market Neutral Plus Fund, Kames Equity Market Neutral Fund, Kames Emerging Market Bond Opportunities Fund, Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund which are presented on a non going concern basis. Kames Equity Market Neutral Plus Fund closed on 2 February 2018, Kames Active Long Dated Bond Fund closed on 8 May 2018, Kames Equity Market Neutral Fund closed on 2 July 2018, Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019 and Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported accounting policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the periods of revision and future periods if the revision affects both current and future periods. Actual results could differ from estimates.

70 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

1. Significant Accounting Policies (continued) c) Foreign Currency Translation While the Funds’ operations are conducted in USD, EUR and GBP, the functional currency of the Company is USD, (as the Directors have determined that this reflects the Company’s primary economic currency). The presentation currency of the Company is also USD. Transactions in foreign currencies are translated at the foreign currency exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated to USD at the foreign currency exchange rate ruling at the Statement of Financial Position date. Foreign currency exchange differences arising on translation and realised gains and losses on disposals or settlements of monetary assets and liabilities are recognised in the Statement of Comprehensive Income. Foreign exchange gains/losses relating to investments at fair value through profit or loss are included in gains and losses on investments in the Statement of Comprehensive Income.

The Statement of Financial Position is translated using exchange rates at the financial year end and the Statement of Comprehensive Income is translated at an average rate over the financial year. The Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders is translated at an average rate over the financial year for inclusion in the combined financial statements of the Company. The resulting notional currency gain/(loss) and the notional currency gain/(loss) on retranslation of opening net assets is included in the Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders. The method of translation has no effect on the value of net assets allocated to the individual Funds. d) Financial Instruments

(i) Classification In accordance with FRS 102, the Company has elected to adopt IAS 39 Financial Instruments: Recognition and Measurement. The Company designates all its investments into financial assets and liabilities at fair value through profit or loss in accordance with FRS 102 and IAS 39. The category of financial assets and liabilities at fair value through profit or loss comprises:

Financial instruments held for trading: These include all financial instruments, (as the Company does not designate any derivatives as financial hedges) including futures, options, swaps, forward contracts, bonds, CFD’s and equities.

Financial instruments designated at fair value through profit or loss upon initial recognition: These include financial assets that are not held for trading purposes and which may be sold.

These financial instruments are designated on the basis that their fair value can be reliably measured and their performance has been evaluated on a fair value basis in accordance with the risk management and/or investment strategy as set out in the Company’s Prospectus.

Gains and losses arising from changes in the fair value of the financial assets and liabilities at fair value through profit or loss category are included in the Statement of Comprehensive Income in the financial year in which they arise.

(ii) Recognition and Derecognition All regular way purchases and sales of financial instruments are recognised on the trade date, which is the date that the Company commits to purchase or sell an asset. Regular way purchases or sales are purchases or sales of financial instruments that require delivery of assets within the period generally established by regulation or convention in the market place. Realised gains and losses on disposals of financial instruments, with the exception of futures and options, are calculated using the average cost method. Realised gains and losses on disposals of futures and options are calculated using the First In First Out (FIFO) method.

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or a financial asset is transferred and the transfer qualifies for derecognition in accordance with FRS 102.

The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expires. 71 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

1. Significant Accounting Policies (continued) d) Financial Instruments (continued)

(iii) Measurement Financial instruments are measured initially at fair value (transaction price). Transaction costs on financial assets and financial liabilities at fair value through profit or loss are expensed immediately.

Subsequent to initial recognition, all instruments classified at fair value through profit or loss are measured at fair value with changes in fair value recognised in the Statement of Comprehensive Income.

Financial liabilities arising from redeemable shares issued by the Company are carried at redemption amount representing the investors’ right to a residual interest in the Company’s assets.

(iv) Fair value measurement principles Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

The fair value of financial instruments is based on their quoted market prices on a recognised exchange or sourced from reputable brokers/counterparties or independent market data providers, in the case of non- exchange traded instruments, at the Statement of Financial Position date without any deduction for estimated future selling costs. Financial assets and liabilities are priced at their current mid prices.

For all other financial instruments not traded in an active market or where no broker/counterparty quotes can be obtained, the fair value is determined by using appropriate valuation techniques, which include using arm’s length transactions; reference to the current market value of another instrument that is substantially the same; discounted cash flow analysis and option pricing models making as much use of available and supportable market data as possible.

Subsequent changes in the fair value of financial assets and liabilities at fair value through profit or loss are recognised in the Statement of Comprehensive Income. e) Cash and Cash Equivalents, Overdrawn Cash and Cash Equivalents, Collateral Cash Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term investments in an active market with original maturities of three months or less.

Overdrawn cash and cash equivalents are shown in Current Liabilities in the Statement of Financial Position.

Broker cash received as collateral is recorded as an asset on the Statement of Financial Position as ‘Collateral cash’ and a related liability to repay the collateral is disclosed within Current Liabilities as 'Collateral cash payable’. This cash received from brokers as collateral is not ringfenced or segregated from other cash and cash equivalents, and can be invested and used in daily operations.

Cash collateral provided by the Funds to a counterparty in relation to Futures and CFDs contracts are identified in the Statement of Financial Position as ‘Margin owed from broker’. Cash collateral which is due by the Funds to a counterparty in relation to Futures and CFDs contracts are identified in the Statement of Financial Position as ‘Margin due to broker’. Collateral cash receivable from broker is cash pledged as collateral for financial derivative instrument transactions. It is not included as a component of cash and cash equivalents in the Statement of Financial Position and is not available to the Funds on demand. Margin owed from broker/Collateral cash is valued at amortised cost plus accrued interest which approximates fair value. Further details of collateral cash received or pledged on derivative instruments are disclosed in Note 16.

Collateral pledged to counterparties other than cash is disclosed in the Statement of Financial Position as financial assets at fair value through profit or loss pledged as collateral. As at 31 October 2019, the Company held no stock collateral (31 October 2018: Nil).

Term Deposits are disclosed within Cash and Cash Equivalents and Collateral Cash in the Statement of Financial Position.

72 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

1. Significant Accounting Policies (continued) f) Operating Expenses Operating expenses of the Company are accounted for on an accruals basis and expensed in the period to which they relate. g) Interest and Dividend Income Bond interest income is recognised in the Statement of Comprehensive Income. Bond interest is recognised as income on an effective yield basis using the original effective interest rate of the instrument calculated at the acquisition or origination date. Bond interest income includes amortisation of any discount or premium, transaction costs or other differences between the initial carrying amount of an interest-bearing instrument and its amount at maturity calculated on an effective interest rate basis. Accrued interest payable or receivable is shown in the Statement of Financial Position and represent interest payable or receivable that has been accrued for but not yet paid or received on the Statement of Financial Position date. Dividends are recognised in the Statement of Comprehensive Income on the dates on which the relevant securities are listed as “ex-dividend”. Withholding tax is presented gross in the Statement of Comprehensive Income. h) Swap Income and Expense Swap income and expense are included in Net gain/(loss) on financial assets and liabilities at fair value through profit or loss in the Statement of Comprehensive Income. i) Net Asset Value Per Share The Net Asset Value per share for each share class within each Fund is calculated by dividing the total Net Asset Value of each share class within each Fund by the total number of shares outstanding for that particular share class within each Fund. j) Distributions Distributions to holders of Redeemable Participating Shares are recorded in the Statement of Comprehensive Income as Finance Costs. k) Redeemable Participating Shares All Redeemable Participating Shares issued by the Funds provide the investors with the right to require redemption for cash at the value proportionate to the investor’s share in the Funds’ net assets at the redemption date. In accordance with FRS 102 such instruments give rise to a financial liability for the present value of the redemption amount. The redemption price for each redeemable share is equal to the Net Asset Value per redeemable shares on the dealing day. l) Dilution Adjustment A Fund may suffer dilution which is a reduction in the value of the assets as a result of the costs incurred in dealing in its underlying investments and of any spread between the buying and the selling prices of such investments which is not reflected in the issue or redemption price paid by or to shareholders. With a view to countering this (which, if it is significant, disadvantages existing or continuing shareholders), the Directors may make an adjustment to the share price on a daily or quarterly basis at the discretion of the Directors and in accordance with the Prospectus.

The dilution adjustment may apply to redemptions or to subscriptions and if charged, the value of the dilution adjustment will be paid into the Fund and will become part of the property attributed to the relevant Fund. Dilution adjustments are disclosed in Statement of Changes in the Net Assets Attributable to Redeemable Participating Shareholders.

73 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

1. Significant Accounting Policies (continued) m) Transaction Costs Transaction costs are defined as the incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial instrument. When a financial asset or financial liability is recognised initially, an entity shall measure it at its fair value through profit or loss.

Transaction costs on the purchase and sale of bonds, forwards, CFDs and swaps are included in the purchase and sale price of the investment. During this financial year, they cannot be practically or reliably gathered as they are embedded in the cost of the investment and cannot be separately verified or disclosed. Transaction costs on purchases and sales of equities, futures and options are disclosed in Note 11. n) Due to/from Redeemable Participating Shareholders Amounts due to or from Redeemable Participating Shareholders represent redemptions or subscriptions where the shares have been redeemed or subscribed by the Redeemable Participating Shareholder, but as at Statement of Financial Position date the cash has not been paid. o) Receivable/Payable for Sale/Purchase of Securities Amounts Receivable or Payable for securities represent sales or purchases where the proceeds or payments have not been received or paid as at Statement of Financial Position date. Non base currency transactions are converted at the prevailing rate on a daily basis until settlement. p) Fund Assets Cash Balances, Outstanding Fund Assets Cash Balances, Fund Assets Receivables, Fund Assets Payable Fund asset cash and receivable balances, including an appropriate equal and opposing liability, are reflected at a Fund level on the Statement of Financial Position. They represent umbrella cash collection account balances attributable to the individual Funds of the Company. These amounts relate to subscription and redemption monies, including dividend money, that are due to an individual Fund, as Fund assets, and which are held in an umbrella cash collection account in the name of the Company. q) Equalisation All Funds operating an income or distributing share class intend to operate income equalisation. Income equalisation prevents the dilution of current shareholders’ earnings by applying a portion of the proceeds from Redeemable Participating Shares issued or redeemed to undistributed income. When Redeemable Participating Shares are purchased or redeemed the price may include an element of income. Equalisation is this element of income paid out to shareholders who have purchased or redeemed during this financial year and it is disclosed in the Statement of Comprehensive Income. r) Interest Expense The Funds may incur interest expense and earn dividend income on long CFD positions. CFD Interest is calculated daily based on the value of the open positions. Such CFD interest expense is included in Net gain/(loss) on financial assets and liabilities at fair value through profit or loss in the Statement of Comprehensive Income. Interest Expense in the Statement of Comprehensive Income includes shareclass hedging interest. s) Other assets Other assets on the Statement of Financial Position include dividend receivable, tax reclaimable dividends and preliminary expenses where applicable. t) Other income Other income on the Statement of Comprehensive Income include interest income on deposits, interest income on cash accounts, interest income on collateral and interest income on derivative instruments i.e. futures, etc. where applicable.

74 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation

The Company under FRS 102 is required to classify fair value measurements for Funds using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

FRS 102 requires the Funds to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

 Level 1 - The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.  Level 2 - Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.  Level 3 - Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability. The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement and consideration of factors specific to the asset or liability.

The following tables present the fair value hierarchy of each Fund’s financial assets and liabilities measured at 31 October 2019 and 31 October 2018:

Strategic Global Bond Fund Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through USD USD USD Profit or Loss Held for Trading Asset Backed Securities - 14,839,168 - Corporate Bonds - 203,486,859 - Floating Rate Notes - 16,867,984 - Government Bonds 77,827,739 - - Bond Futures 395,143 - - Credit Default Swaps* - 3,624,521 - Forwards - 2,542,193 - Total Assets 78,222,882 241,360,725 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Bond Futures (453,276) - - Credit Default Swaps* - (10,585,621) - Forwards - (4,890,091) - Total Liabilities (453,276) (15,475,712) -

* Swaps were valued using market observable interest rates, observable underlying instruments/indices, and credit spreads from the market.

75 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation (continued)

Strategic Global Bond Fund (continued) Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through USD USD USD Profit or Loss Held for Trading Asset Backed Securities - 24,201,269 - Corporate Bonds - 244,008,403 - Floating Rate Notes - 10,815,802 - Government Bonds 245,426,511 - - Bond Futures 749,410 - - Credit Default Swaps* - 798,493 - Forwards - 8,537,579 - Total Assets 246,175,921 288,361,546 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Bond Futures (1,545,221) - - Credit Default Swaps* - (2,382,657) - Forwards - (1,329,933) - Total Liabilities (1,545,221) (3,712,590) -

Investment Grade Global Bond Fund Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through USD USD USD Profit or Loss Held for Trading Asset Backed Securities - 3,188,297 - Corporate Bonds - 124,621,410 - Floating Rate Notes - 4,296,543 - Government Bonds 1,257,734 - - Bond Futures 280,112 - - Forwards - 1,081,164 - Total Assets 1,537,846 133,187,414 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Bond Futures (563,029) - - Forwards - (1,446,795) - Total Liabilities (563,029) (1,446,795) -

* Swaps were valued using market observable interest rates, observable underlying instruments/indices, and credit spreads from the market.

76 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation (continued)

Investment Grade Global Bond Fund (continued) Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through USD USD USD Profit or Loss Held for Trading Asset Backed Securities - 3,128,027 - Corporate Bonds - 197,405,215 - Floating Rate Notes - 7,665,290 - Government Bonds 1,956,875 - - Bond Futures 1,276 - - Forwards - 2,026,113 - Total Assets 1,958,151 210,224,645 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Bond Futures (474,504) - - Forwards - (399,145) - Total Liabilities (474,504) (399,145) -

High Yield Global Bond Fund Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through USD USD USD Profit or Loss Held for Trading Asset Backed Securities - 1,824,566 - Corporate Bonds - 130,659,498 - Floating Rate Notes - 2,748,123 - Forwards - 785,533 - Total Assets - 136,017,720 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (1,354,724) - Total Liabilities - (1,354,724) -

Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through USD USD USD Profit or Loss Held for Trading Asset Backed Securities - 3,114,500 - Corporate Bonds - 173,181,801 - Floating Rate Notes - 1,032,889 - Forwards - 2,598,290 - Total Assets - 179,927,480 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (366,930) - Total Liabilities - (366,930) -

77 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation (continued)

Absolute Return Bond Fund Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through GBP GBP GBP Profit or Loss Held for Trading Asset Backed Securities - 30,761,910 - Corporate Bonds - 477,542,666 - Floating Rate Notes - 9,470,724 - Bond Futures 765,203 - - Credit Default Swaps* - 7,374,475 - Interest Rate Swaps* - 480,114 - Forwards - 6,410,942 - Total Assets 765,203 532,040,831 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Bond Futures (897,374) - - Credit Default Swaps* - (12,868,633) - Interest Rate Swaps* - (730,936) - Forwards - (1,211,774) - Total Liabilities (897,374) (14,811,343) -

Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through GBP GBP GBP Profit or Loss Held for Trading Asset Backed Securities - 67,882,428 - Corporate Bonds - 1,391,252,167 - Floating Rate Notes - 36,505,855 - Government Bonds 103,171,556 - - Bond Futures 2,427,027 - - Credit Default Swaps* - 10,788,451 - Inflation Rate Swaps* - 1,872,408 - Interest Rate Swaps* - 695,745 - Forwards - 465,557 - Total Assets 105,598,583 1,509,462,611 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Bond Futures (6,400,958) - - Credit Default Swaps* - (19,678,609) - Inflation Rate Swaps* - (1,626,766) - Interest Rate Swaps* - (2,820,624) - Forwards - (2,032,695) - Total Liabilities (6,400,958) (26,158,694) - * Swaps were valued using market observable interest rates, observable underlying instruments/indices, and credit spreads from the market.

78 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation (continued)

Global Equity Income Fund Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through USD USD USD Profit or Loss Held for Trading Equities 434,228,350 - - Equities - UK Large Cap 38,193,452 - - REIT* - UK Small Cap 8,885,868 - - Forwards - 152,086 - Total Assets 481,307,670 152,086 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (53,552) - Total Liabilities - (53,552) -

Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through USD USD USD Profit or Loss Held for Trading Equities 400,268,602 - - Equities - UK Large Cap 39,336,893 - - REIT* - UK Small Cap 7,627,124 - - Forwards - 6,293 - Total Assets 447,232,619 6,293 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (222,655) - Total Liabilities - (222,655) - * Real Estate Investment Trust (“REIT”)

Absolute Return Bond Global Fund(2) Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through GBP GBP GBP Profit or Loss Held for Trading Forwards - 789 - Total Assets - 789 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (2,999) - Total Liabilities - (2,999) -

79 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation (continued)

Absolute Return Bond Global Fund(2) Level 1 Level 2 Level 3 (continued) 31 October 2018 Financial Assets at Fair Value Through GBP GBP GBP Profit or Loss Held for Trading Asset Backed Securities - 4,765,679 - Corporate Bonds - 98,361,124 - Floating Rate Notes - 5,630,107 - Government Bonds 3,445,745 - - Bond Futures 168,579 - - Inflation Rate Swaps* - 101,651 - Interest Rate Swaps* - 124,021 - Forwards - 55,967 - Total Assets 3,614,324 109,038,549 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Bond Futures (438,723) - - Credit Default Swaps* - (585,347) - Inflation Rate Swaps* - (93,461) - Interest Rate Swaps* - (190,958) - Forwards - (244,886) - Total Liabilities (438,723) (1,114,652) -

Absolute Return Bond Constrained Fund(2) Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through GBP GBP GBP Profit or Loss Held for Trading Forwards - 991 - Total Assets - 991 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (537) - Total Liabilities - (537) -

Level 1 Level 2 Level 3 Absolute Return Bond Constrained Fund(2) 31 October 2018 Financial Assets at Fair Value Through EUR EUR EUR Profit or Loss Held for Trading Asset Backed Securities - 1,338,644 - Corporate Bonds - 61,886,859 - Floating Rate Notes - 539,431 - Government Bonds 1,508,337 - - Bond Futures 96,986 - - Inflation Rate Swaps* - 45,404 - Interest Rate Swaps* - 25,515 - Forwards - 2,484 - Total Assets 1,605,323 63,838,337 -

80 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation (continued)

Absolute Return Bond Constrained Fund(2) Level 1 Level 2 Level 3 (continued) 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Bond Futures (218,777) - - Credit Default Swaps* - (98,532) - Inflation Rate Swaps* - (27,972) - Interest Rate Swaps* - (107,020) - Forwards - (389,423) - Total Liabilities (218,777) (622,947) -

Emerging Market Bond Opportunities Fund(1) Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through USD USD USD Profit or Loss Held for Trading Asset Backed Securities - 1,985,850 - Corporate Bonds - 12,202,925 - Government Bonds 26,455,424 - - Total Assets 26,455,424 14,188,775 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (189) - Total Liabilities - (189) -

Global Diversified Income Fund Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through EUR EUR EUR Profit or Loss Held for Trading Corporate Bonds - 47,123,995 - Equities 59,816,518 - - Equities - UK Large Cap 11,476,804 - - Equities - UK Small Cap 12,120,307 - - Government Bonds 14,316,917 7,766,897 - Investment Funds - Non Bond - 886,046 - Overseas REIT 11,264,884 - - REIT* - UK Large Cap 1,547,923 - - REIT* - UK Small Cap 1,310,356 - - Bond Futures 4,301 - - Forwards - 714,498 - Total Assets 111,858,010 56,491,436 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (454,620) - Total Liabilities - (454,620) - (1) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. (2) Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019. * Swaps were valued using market observable interest rates, observable underlying instruments/indices, and credit spreads from the market. * Real Estate Investment Trust (“REIT”). 81 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation (continued)

Global Diversified Income Fund (continued) Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through EUR EUR EUR Profit or Loss Held for Trading Corporate Bonds - 35,557,984 - Equities 52,488,456 - - Equities - UK Large Cap 15,506,439 - - Equities - UK Small Cap 12,134,564 - - Government Bonds 14,530,010 - - Investment Funds - Non Bond - 951,371 - Overseas REIT* 17,324,183 - - REIT* - UK Large Cap 2,186,487 - - REIT* - UK Small Cap 1,809,998 - - Forwards - 842,586 - Total Assets 115,980,137 37,351,941 -

* Real Estate Investment Trust (“REIT”).

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Bond Futures (128,172) - - Forwards - (1,949,526) - Total Liabilities (128,172) (1,949,526) -

Global Sustainable Equity Fund Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through EUR EUR EUR Profit or Loss Held for Trading Equities 105,210,824 - - Equities - UK Large Cap 2,616,637 - - Equities - UK Small Cap 1,716,494 - - Total Assets 109,543,955 - -

Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through EUR EUR EUR Profit or Loss Held for Trading Equities 70,164,684 - - Equities - UK Large Cap 2,144,087 - - Equities - UK Small Cap 1,362,926 - - Total Assets 73,671,697 - -

82 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation (continued)

Global Diversified Growth Fund Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through EUR EUR EUR Profit or Loss Held for Trading Corporate Bonds - 7,770,812 - Equities 19,389,345 - - Equities - UK Large Cap 3,883,112 - - Equities - UK Small Cap 6,692,328 - - Government Bonds 2,166,996 3,853,547 - Investment Funds - Bond - 3,507,477 - Investment Funds - Non Bond - 572,352 - Overseas REIT* 3,259,811 - - REIT* - UK Large Cap 792,403 - - Futures 88,972 - - Options - 11,464 - Forwards - 649,885 - Total Assets 36,272,967 16,365,537 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (868,308) - Total Liabilities - (868,308) -

Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through EUR EUR EUR Profit or Loss Held for Trading Corporate Bonds - 3,693,021 - Equities 26,292,231 - - Equities - UK Large Cap 6,161,771 - - Equities - UK Small Cap 11,697,405 - - Government Bonds 9,280,449 - - Investment Funds - Non Bond - 513,259 - Overseas REIT* 6,430,018 - - REIT* - UK Large Cap 1,234,380 - - REIT* - UK Small Cap 784,727 - - Options - 33,796 - Forwards - 367,347 - Total Assets 61,880,981 4,607,423 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Bond Futures (173,529) - - Forwards - (685,972) - Total Liabilities (173,529) (685,972) -

* Real Estate Investment Trust (“REIT”).

83 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation (continued)

Global Equity Market Neutral Fund Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through GBP GBP GBP Profit or Loss Held for Trading Equities 35,357,065 - - Equity - UK Small Cap 1,548,590 - - Contracts for Difference - 528,812 - Forwards - 135,848 - Total Assets 36,905,655 664,660 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Contracts For Difference - (711,715) - Futures (127,146) - - Forwards - (103,720) - Total Liabilities (127,146) (815,435) -

Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through GBP GBP GBP Profit or Loss Held for Trading Equities 52,970,532 - - Contracts for Difference - 1,454,303 - Forwards - 39,055 - Total Assets 52,970,532 1,493,358 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Contracts for Difference - (1,837,004) - Forwards - (201,387) - Total Liabilities - (2,038,391) -

Short Dated High Yield Global Bond Fund Level 1 Level 2 Level 3 31 October 2019 Financial Assets at Fair Value Through GBP GBP GBP Profit or Loss Held for Trading Asset Backed Securities - 982,002 - Corporate bonds - 44,524,933 - Floating Rate Notes - 1,107,184 - Forwards - 402,375 - Total Assets - 47,016,494 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (650,863) - Total Liabilities - (650,863) -

84 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

2. Fair Value Estimation (continued)

Short Dated High Yield Global Bond Fund (continued) Level 1 Level 2 Level 3 31 October 2018 Financial Assets at Fair Value Through GBP GBP GBP Profit or Loss Held for Trading Asset Backed Securities - 3,645,879 - Corporate bonds - 208,912,185 - Floating Rate Notes - 2,831,006 - Forwards - 1,816,576 - Total Assets - 217,205,646 -

Financial Liabilities at Fair Value Through Profit or Loss Held for Trading Forwards - (398,657) - Total Liabilities - (398,657) -

3. Derivative Contracts and Efficient Portfolio Management

Typically, derivative contracts serve as components of the Company’s investment strategy and are utilised primarily to structure and economically hedge investments to enhance performance and reduce risk to the Company (the Company does not designate any derivatives as hedges for hedge accounting purposes as described under IAS 39).

The Company may also enter into derivative contracts for the purposes of efficient portfolio management. Efficient portfolio management means investment decisions involving transactions that are entered into for one or more of the following specific aims: the reduction of risk; the reduction of cost; or the generation of additional capital or income for the Funds with an appropriate level of risk, taking into account the risk profile of the Funds. Permitted efficient portfolio management transactions are transactions in derivative contracts dealt in or traded on regulated markets operating regularly or over-the-counter arrangements with highly rated financial institutions specializing in this type of transactions.

During the financial year contracts for difference (“CFD”), forward currency contracts, futures, options and swap contracts were entered into for the purpose of efficient portfolio management in order to hedge currency and market exposure and/or for investment purposes. Details of all open transactions and counterparties to these derivative positions at the financial year end are disclosed in the Portfolio of Investments. Please refer to Note 13 for details of exposure obtained through efficient portfolio management techniques and derivative positions and to Note 16 for details of collateral received by the Company to reduce the counterparty exposure. Any gains or losses arising from efficient portfolio management techniques and investments are recognised in the Statement of Comprehensive Income. Please refer to Global Derivative Exposure in Note 13 for details of global exposure related to efficient portfolio management techniques.

The Company did not engage in any efficient portfolio management techniques of repurchase, reverse repurchase and stock lending arrangements.

Contracts for difference (“CFD”) CFD involve a contract between two counterparties (“buyer” and “seller”) which requires that the seller will pay to the buyer the difference between the current value of an asset and its value at a particular contract time. (If the difference is negative, then the buyer pays instead to the seller.) CFD allow traders to take advantage of prices moving up or prices moving down on underlying financial instruments and are often used to speculate on markets. CFD are typically traded "over-the-counter", which means that they are traded “off-exchange”. CFD are traded on margin, and the leveraging effect of this increases the risk significantly. The Company will invest in CFD to gain exposure to equity investments and equity market. The difference between the initial recognition amount and the market value of the open contract is recorded as unrealised gains or losses in the Statement of Financial Position. Realised gains or losses are recognised on the closing or trade date of the contract and are recorded as net gain/(loss) on financial assets and liabilities on financial assets and liabilities at fair value through profit or loss in the Statement of Comprehensive Income.

85 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

3. Derivative Contracts and Efficient Portfolio Management (continued)

Forward Currency Contracts A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, at a price set at the time the contract is made. Forward currency contracts are valued by reference to a forward price at which a new forward contract of the same size and maturity could be undertaken at the valuation date. The unrealised gain or loss on open forward contracts is calculated as the difference between the contract rate and this forward price and is taken to the Statement of Comprehensive Income.

Futures Contracts A futures contract is an agreement between two parties to buy and sell a security, index or currency at a specific price or rate at a future date. Upon entering into a futures contract, the Company is required to deposit with a broker an amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is known as ‘initial cash margin’. Subsequent payments (‘variation margin’) are made or received by the Funds each day, depending upon the daily fluctuation in the value of the contract. The daily changes in contract value are recorded as unrealised gains or losses and the Funds recognise a realised gain or loss when the contract is closed. Unrealised and realised gains and losses on futures contracts are recognised in the Statement of Comprehensive Income.

Options There are two forms of options, put and call options. Put options are contracts sold for a premium that gives one party (the buyer) the right, but not the obligation, to sell to the other party (the seller) of the contract, a specific quantity of a particular product or financial instrument at a specified price. Call options are similar contracts sold for a premium that gives the buyer the right, but not the obligation, to buy from the seller of the option. Options may also be cash settled. The daily changes in contract value are recorded as unrealised gains or losses and the Funds recognise a realised gain or loss when the contract is closed. Unrealised and realised gains and losses on option contracts are recognised in the Statement of Comprehensive Income.

Swaps A standard swap is an agreement between two counterparties in which the cash flows from two assets are exchanged as they are received for a fixed time period, with the terms initially set so that the present value of the swap is zero. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to make or receive interest payments (e.g. an exchange of fixed rate payments for floating rate payments). On each payment date under an interest rate swap, the net payments owed by each party, and only the net amount, is paid by one party to the other. Currency swaps are agreements between two parties to exchange future payments in one currency for payments in another currency. These agreements are used to transform the currency denomination of assets and liabilities.

Credit default swaps are transactions under which the parties’ obligations depend on whether a credit event has occurred in relation to the reference asset. The credit events are specified in the contract and are intended to identify the occurrence of a significant deterioration in the creditworthiness of the reference asset. On settlement, credit default products may be cash settled or involve the physical delivery of an obligation of the reference entity following a default. The buyer in a credit default swap contract is obligated to pay the seller a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference asset has occurred. If a credit event occurs, the seller must pay the buyer the full notional value of the reference asset that may have little or no value.

Inflation-linked swaps are agreements between two parties whereby one party pays a fixed rate on a notional principal amount, while the other party pays a floating rate linked to prevailing inflation measurement indices such as Retail Price Index (RPI).

Unrealised and realised gains and losses on swap contracts are recognised in the Statement of Comprehensive Income. Any swap related income/expenses are recognised in net gain/(loss) on financial assets and liabilities at fair value through profit or loss in the Statement of Comprehensive Income.

86 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

4. Share Capital

The authorised share capital of the Company is 1,000,000,000,000 shares of no par value initially designated as unclassified shares; the issued share capital of the Company is €2 represented by 2 shares (the ‘subscriber shares’) issued for the purposes of the incorporation of the Company at an issue price of €1 per share which are fully paid up and which are held by Kames Capital Plc and Kames Capital Management Limited. The unclassified shares are available for issue as Redeemable Participating Shares.

Voting Rights Subject to any rights or restrictions for the time being attached to any class or classes of Redeemable Participating Shares, on a show of hands every holder who is present in person or by proxy shall have one vote and the holder(s) of subscriber shares present in person or by proxy shall have one vote in respect of all the subscriber shares in issue and on a poll, every holder present in person or by proxy shall have one vote for every Redeemable Participating Share of which he is the holder and every holder of a subscriber share present in person or by proxy shall have one vote in respect of his holding of subscriber shares. Holders who hold a fraction of a Redeemable Participating Share may not exercise any voting rights, whether on a show of hands or on a poll, in respect of such fraction of a Redeemable Participating Share.

Redeemable Participating Shares The net assets attributable to holders of Redeemable Participating Shares are at all times equal to the Net Asset Value of the Company. The participating shares which comprise the equity capital of the Company are in substance a liability of the Company to shareholders under the terms of FRS 102 as they can be redeemed at the option of the shareholder.

87 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

Participating shares may be redeemed on each dealing date or such other date or dates as the Board of Directors shall from time to time determine (Valuation Day) at the Net Asset Value per share. Equalisation The Company will operate grouping for equalisation with respect to Income shares (shares which are entitled to a portion of the Funds ordinary income). Each income class of each Fund will operate its own equalisation account. Shares purchased during a distribution period are called Group 2 Shares. Shares purchased during any previous distribution period are called Group 1 Shares. Group 2 Shares contain in their purchase price an amount called equalisation which represents a proportion of the net income of the Fund that has accrued up to the date of purchase. The amount of equalisation is averaged across all the Shareholders of Group 2 Shares and is refunded to them as part of their first distribution.

The movement in the number of participating shares per share class during the financial year ended 31 October 2019 is as follows:

Strategic Global Bond Fund At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2019 Class A EUR (Income) Hedged 295,574.44 1,275.39 (101,476.54) 195,373.29 EUR 8.7963 EUR 1,718,561 Class A GBP (Income) Hedged 142,955.30 43.01 (11,849.06) 131,149.25 GBP 11.6119 GBP 1,522,889 Class B EUR (Income) Hedged 1,348,370.01 120,338.31 (687,478.72) 781,229.60 EUR 8.7695 EUR 6,850,973 Class B GBP (Income) Hedged 986,103.13 84,349.75 (352,877.87) 717,575.01 GBP 6.5869 GBP 4,726,614 Class B US Dollar (Income) Unhedged 1,201,294.83 64,041.32 (753,096.30) 512,239.85 USD 14.1979 USD 7,272,709 Class S EUR (Income) Hedged 2,183,453.04 368,833.06 (1,291,136.05) 1,261,150.05 EUR 10.1668 EUR 12,821,837 Class S GBP (Income) Hedged 6,138,583.81 28,411.10 (5,816,093.84) 350,901.07 GBP 10.4675 GBP 3,673,047 Class S US Dollar (Income) Unhedged(s) 3,008,087.77 4,328.00 (3,012,415.77) - USD - USD - Class A CHF (Accumulation) Hedged 137,033.74 - (45,651.29) 91,382.45 CHF 11.5930 CHF 1,059,400 Class A EUR (Accumulation) Hedged 3,728,668.75 120,881.63 (3,146,237.89) 703,312.49 EUR 12.2455 EUR 8,612,379 Class A GBP (Accumulation) Hedged 274,779.74 14,467.83 (95,995.86) 193,251.71 GBP 12.9848 GBP 2,509,344 Class A US Dollar (Accumulation) Unhedged 1,565,620.95 97,117.76 (438,454.02) 1,224,284.69 USD 13.6797 USD 16,747,850 Class B CHF (Accumulation) Hedged(q) 1,900.00 - (1,900.00) - CHF - CHF - Class B EUR (Accumulation) Hedged 2,735,924.83 96,591.08 (2,053,193.31) 779,322.60 EUR 11.2831 EUR 8,793,186 Class B GBP (Accumulation) Hedged 117,313.26 75,323.77 (120,935.98) 71,701.05 GBP 13.0383 GBP 934,861 Class B SEK (Accumulation) Hedged(u) 38,380.00 51,971.00 (90,351.00) - SEK - SEK - Class B US Dollar (Accumulation) Unhedged 262,151.90 22,723.59 (51,318.80) 233,556.69 USD 11.0371 USD 2,577,798 Class I EUR (Accumulation) Hedged 18,990.00 488.22 (186.00) 19,292.22 EUR 10651.8388 EUR 205,497,618 Class J JPY (Accumulation) Hedged 812,737.49 - (2,235.44) 810,502.05 JPY 1061.9134 JPY 860,683,011 Class J US Dollar (Accumulation) Unhedged(u) 4,534,968.83 - (4,534,968.83) - USD - USD - Class L EUR (Accumulation) Hedged(t) 1.00 - (1.00) - EUR - EUR -

88 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) Strategic Global Bond Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2018 Class A EUR (Income) Hedged 401,495.74 22,049.37 (127,970.67) 295,574.44 EUR 8.3735 EUR 2,475,004 Class A GBP (Income) Hedged 172,547.39 70.61 (29,662.70) 142,955.30 GBP 10.9145 GBP 1,560,288 Class B EUR (Income) Hedged 2,086,075.67 202,121.38 (939,827.04) 1,348,370.01 EUR 8.3478 EUR 11,256,046 Class B GBP (Income) Hedged 1,723,774.14 93,896.19 (831,567.20) 986,103.13 GBP 6.1887 GBP 6,102,739 Class B US Dollar (Income) Unhedged 2,391,968.55 198,360.32 (1,389,034.04) 1,201,294.83 USD 13.0904 USD 15,725,517 Class S EUR (Income) Hedged 94,879.51 2,392,265.78 (303,692.25) 2,183,453.04 EUR 9.6810 EUR 21,138,050 Class S GBP (Income) Hedged 6,219,398.29 819,552.16 (900,366.64) 6,138,583.81 GBP 9.8452 GBP 60,435,785 Class S US Dollar (Income) Unhedged 7,086,802.29 24,543.95 (4,103,258.47) 3,008,087.77 USD 10.0906 USD 30,353,604 Class A CHF (Accumulation) Hedged 510,372.10 - (373,338.36) 137,033.74 CHF 10.9276 CHF 1,497,463 Class A EUR (Accumulation) Hedged 6,246,238.88 643,111.83 (3,160,681.96) 3,728,668.75 EUR 11.5070 EUR 42,905,900 Class A GBP (Accumulation) Hedged 320,196.75 26,846.51 (72,263.52) 274,779.74 GBP 12.0322 GBP 3,306,219 Class A US Dollar (Accumulation) Unhedged 1,958,163.11 190,419.06 (582,961.22) 1,565,620.95 USD 12.4310 USD 19,462,260 Class B CHF (Accumulation) Hedged 1,900.00 - - 1,900.00 CHF 9.7155 CHF 18,460 Class B EUR (Accumulation) Hedged 3,459,538.64 2,180,045.11 (2,903,658.92) 2,735,924.83 EUR 10.5240 EUR 28,793,104 Class B GBP (Accumulation) Hedged 367,283.98 48,510.31 (298,481.03) 117,313.26 GBP 12.0007 GBP 1,407,851 Class B SEK (Accumulation) Hedged 36,079.00 23,800.00 (21,499.00) 38,380.00 SEK 103.2355 SEK 3,962,180 Class B SGD (Accumulation) Hedged(d) 1,000.00 - (1,000.00) - SGD - SGD - Class B US Dollar (Accumulation) Unhedged(e) - 262,151.90 - 262,151.90 USD 9.9647 USD 2,612,279 Class I EUR (Accumulation) Hedged 19,792.00 1,465.00 (2,267.00) 18,990.00 EUR 9,936.2673 EUR 188,689,717 Class J JPY (Accumulation) Hedged(g) - 813,540.14 (802.65) 812,737.49 JPY 985.9025 JPY 801,279,996 Class J US Dollar (Accumulation) Unhedged(e) - 4,538,398.97 (3,430.14) 4,534,968.83 USD 9.9773 USD 45,246,929 Class L EUR (Accumulation) Hedged 1.00 - - 1.00 EUR 9,766.9384 EUR 9,767

As at 31 October 2017 Class A EUR (Income) Hedged 4,147,845.43 672,257.37 (4,418,607.06) 401,495.74 EUR 8.7797 EUR 3,525,012 Class A GBP (Income) Hedged 226,655.05 766.18 (54,873.84) 172,547.39 GBP 11.3182 GBP 1,952,926 Class B EUR (Income) Hedged 9,032,616.87 1,054,753.72 (8,001,294.92) 2,086,075.67 EUR 8.7540 EUR 18,261,506 Class B GBP (Income) Hedged 23,980,611.35 2,650,346.40 (24,907,183.61) 1,723,774.14 GBP 6.4180 GBP 11,063,182 Class B US Dollar (Income) Unhedged 12,227,332.89 967,002.66 (10,802,367.00) 2,391,968.55 USD 13.3370 USD 31,901,685 Class S EUR (Income) Hedged(a) - 3,211,183.93 (3,116,304.42) 94,879.51 EUR 10.1386 EUR 961,945 Class S GBP (Income) Hedged(a) - 10,110,714.82 (3,891,316.53) 6,219,398.29 GBP 10.2061 GBP 63,475,801 Class S US Dollar (Income) Unhedged(a) - 9,569,631.44 (2,482,829.15) 7,086,802.29 USD 10.2806 USD 72,856,580 Class A CHF (Accumulation) Hedged 2,139,907.75 410,395.58 (2,039,931.23) 510,372.10 CHF 11.3788 CHF 5,807,422 Class A EUR (Accumulation) Hedged 5,775,090.96 1,813,024.13 (1,341,876.21) 6,246,238.88 EUR 11.9225 EUR 74,470,783 Class A GBP (Accumulation) Hedged 345,374.50 34,128.14 (59,305.89) 320,196.75 GBP 12.3396 GBP 3,951,100 Class A US Dollar (Accumulation) Unhedged 1,957,396.30 396,121.81 (395,355.00) 1,958,163.11 USD 12.5204 USD 24,516,985 Class B CHF (Accumulation) Hedged 1,900.00 - - 1,900.00 CHF 10.0495 CHF 19,094

89 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) Strategic Global Bond Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2017 (continued) Class B EUR (Accumulation) Hedged 3,832,821.77 2,450,184.66 (2,823,467.79) 3,459,538.64 EUR 10.8352 EUR 37,484,793 Class B GBP (Accumulation) Hedged 2,644,604.84 153,987.78 (2,431,308.64) 367,283.98 GBP 12.2306 GBP 4,492,103 Class B SEK (Accumulation) Hedged 1,480.00 36,099.00 (1,500.00) 36,079.00 SEK 106.4270 SEK 3,839,780 Class B SGD (Accumulation) Hedged 1,000.00 - - 1,000.00 SGD 11.5435 SGD 11,544 Class I EUR (Accumulation) Hedged 9,907.00 10,646.00 (761.00) 19,792.00 EUR 10,241.6990 EUR 202,703,707 Class L EUR (Accumulation) Hedged 1.00 - - 1.00 EUR 10,122 EUR 10,122

Investment Grade Global Bond Fund

As at 31 October 2019 Class A EUR (Income) Hedged 321,864.84 140,595.93 (117,037.52) 345,423.25 EUR 7.9258 EUR 2,737,746 Class A GBP (Income) Hedged 1,009,591.38 51,186.00 (134,502.31) 926,275.07 GBP 5.9187 GBP 5,482,354 Class A US Dollar (Income) Unhedged(u) 67,083.70 6,023.60 (73,107.30) - USD - USD - Class B EUR (Income) Hedged 445,550.93 6,933.52 (192,428.89) 260,055.56 EUR 9.9899 EUR 2,597,942 Class B US Dollar (Income) Unhedged 1,707,664.66 129,287.67 (1,191,431.69) 645,520.64 USD 12.8396 USD 8,288,227 Class S EUR (Income) Hedged 782,650.67 359,307.74 (1,136,830.33) 5,128.08 EUR 9.8968 EUR 50,752 Class S GBP (Income) Hedged 5,095,002.11 369,009.02 (5,357,036.86) 106,974.27 GBP 10.1802 GBP 1,089,021 Class S US Dollar (Income) Unhedged 1,593,984.77 811,818.17 (2,397,770.94) 8,032.00 USD 10.5692 USD 84,892 Class A EUR (Accumulation) Hedged 227,019.81 24,507.68 (37,739.86) 213,787.63 EUR 12.1416 EUR 2,595,719 Class A US Dollar (Accumulation) Unhedged 256,342.37 22,618.51 (191,605.46) 87,355.42 USD 13.4609 USD 1,175,881 Class B CHF (Accumulation) Hedged(u) 1,200.00 - (1,200.00) - CHF - CHF - Class B EUR (Accumulation) Hedged 3,350,542.43 11,503.82 (286,262.35) 3,075,783.90 EUR 12.5985 EUR 38,750,217 Class B GBP (Accumulation) Hedged 8,296,049.55 75,253.73 (578,895.80) 7,792,407.48 GBP 7.4051 GBP 57,703,690 Class B SEK (Accumulation) Hedged(q) 1,480 - (1,480.00) - SEK - SEK - Class L EUR (Accumulation) Hedged(t) 1.00 - (1.00) - EUR - EUR -

As at 31 October 2018 Class A EUR (Income) Hedged 325,441.65 70,166.90 (73,743.71) 321,864.84 EUR 7.3856 EUR 2,377,184 Class A GBP (Income) Hedged 984,757.51 124,872.95 (100,039.08) 1,009,591.38 GBP 5.4474 GBP 5,499,720 Class A US Dollar (Income) Unhedged 132,954.56 - (65,870.86) 67,083.70 USD 11.5502 USD 774,836 Class B EUR (Income) Hedged 1,197,972.27 1,045,260.78 (1,797,682.12) 445,550.93 EUR 9.3114 EUR 4,148,723 Class B US Dollar (Income) Unhedged 1,544,827.79 1,098,528.87 (935,692.00) 1,707,664.66 USD 11.5919 USD 19,795,183 Class S EUR (Income) Hedged 72,301.89 768,719.61 (58,370.83) 782,650.67 EUR 9.2777 EUR 7,261,257 Class S GBP (Income) Hedged 1,678,617.08 4,354,814.14 (938,429.11) 5,095,002.11 GBP 9.3781 GBP 47,781,499 Class S US Dollar (Income) Unhedged 184,770.00 1,589,466.94 (180,252.17) 1,593,984.77 USD 9.5410 USD 15,208,305 Class A EUR (Accumulation) Hedged 392,513.17 94,722.71 (260,216.07) 227,019.81 EUR 11.0408 EUR 2,506,492 Class A US Dollar (Accumulation) Unhedged 149,100.22 157,856.62 (50,614.47) 256,342.37 USD 11.8622 USD 3,040,800 Class B CHF (Accumulation) Hedged 1,200.00 - - 1,200.00 CHF 9.5358 CHF 11,443 90 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) Investment Grade Global Bond Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2018 (continued) Class B EUR (Accumulation) Hedged 3,394,639.34 356,447.99 (400,544.90) 3,350,542.43 EUR 11.4009 EUR 38,199,225 Class B GBP (Accumulation) Hedged 9,438,638.29 823,275.05 (1,965,863.79) 8,296,049.55 GBP 6.6172 GBP 54,897,195 Class B SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 104.3843 SEK 154,489 Class I EUR (Accumulation) Hedged(f) 851.00 - (851.00) - EUR - EUR - Class L EUR (Accumulation) Hedged 1.00 - - 1.00 EUR 10,126.6757 EUR 10,127

As at 31 October 2017 Class A EUR (Income) Hedged 318,130.09 217,198.28 (209,886.72) 325,441.65 EUR 7.9874 EUR 2,599,433 Class A GBP (Income) Hedged 1,078,838.43 100,241.65 (194,322.57) 984,757.51 GBP 5.8259 GBP 5,737,099 Class A US Dollar (Income) Unhedged 130,542.69 15,289.33 (12,877.46) 132,954.56 USD 12.1451 USD 1,614,746 Class B EUR (Income) Hedged 13,794.69 1,290,475.27 (106,297.69) 1,197,972.27 EUR 10.1051 EUR 12,105,630 Class B US Dollar (Income) Unhedged 1,629,411.87 854,166.77 (938,750.85) 1,544,827.79 USD 12.1892 USD 18,830,215 Class S EUR (Income) Hedged(b) - 72,301.89 - 72,301.89 EUR 10.0274 EUR 725,000 Class S GBP (Income) Hedged(b) - 1,678,617.08 - 1,678,617.08 GBP 10.0285 GBP 16,834,011 Class S US Dollar (Income) Unhedged(b) - 184,770.00 - 184,770.00 USD 10.0327 USD 1,853,742 Class A EUR (Accumulation) Hedged 118,929.44 301,383.56 (27,799.83) 392,513.17 EUR 11.6721 EUR 4,581,453 Class A US Dollar (Accumulation) Unhedged 35,876.26 125,240.05 (12,016.09) 149,100.22 USD 12.1947 USD 1,818,232 Class B CHF (Accumulation) Hedged 1,200.00 - - 1,200.00 CHF 10.0723 CHF 12,087 Class B EUR (Accumulation) Hedged 5,027,258.64 380,022.84 (2,012,642.14) 3,394,639.34 EUR 11.9918 EUR 40,707,836 Class B GBP (Accumulation) Hedged 8,644,302.37 3,747,298.26 (2,952,962.34) 9,438,638.29 GBP 6.8841 GBP 64,976,530 Class B SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 109.8784 SEK 162,620 Class I EUR (Accumulation) Hedged 1.00 850.00 - 851.00 EUR 10,849.4939 EUR 9,232,919 Class L EUR (Accumulation) Hedged 1.00 - - 1.00 EUR 10,703.6896 EUR 10,704

High Yield Global Bond Fund

As at 31 October 2019 Class A EUR (Income) Hedged 4,051,028.29 347,395.14 (1,538,373.44) 2,860,049.99 EUR 6.8992 EUR 19,732,178 Class A GBP (Income) Hedged 1,779,916.20 335,951.38 (272,455.76) 1,843,411.82 GBP 5.1462 GBP 9,486,636 Class A US Dollar (Income) Unhedged 928,326.18 53,900.87 (144,509.95) 837,717.10 USD 11.2122 USD 9,392,625 Class B EUR (Income) Hedged 1,659,106.92 42,215.29 (1,588,903.09) 112,419.12 EUR 10.6329 EUR 1,195,340 Class B GBP (Income) Hedged 1,626,392.12 39,866.55 (983,802.68) 682,455.99 GBP 10.9280 GBP 7,457,902 Class B US Dollar (Income) Unhedged 1,709,703.53 175,313.69 (666,235.21) 1,218,782.01 USD 11.5080 USD 14,025,746 Class S EUR (Income) Hedged 1,300.00 49.05 - 1,349.05 EUR 10.1744 EUR 13,726 Class A CHF (Accumulation) Hedged 274,783.22 38,478.10 (35,357.00) 277,904.32 CHF 13.4585 CHF 3,740,164 Class A EUR (Accumulation) Hedged 259,516.91 31,992.67 (82,657.80) 208,851.78 EUR 14.0013 EUR 2,924,204 Class A US Dollar (Accumulation) Unhedged 98,179.42 21,301.11 (19,719.76) 99,760.77 USD 14.4196 USD 1,438,505

91 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) High Yield Global Bond Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2019 (continued) Class B CHF (Accumulation) Hedged 675,853.00 - (44,040.00) 631,813.00 CHF 12.1959 CHF 7,705,557 Class B EUR (Accumulation) Hedged 2,709,317.02 236,803.63 (157,094.64) 2,789,026.01 EUR 14.4890 EUR 40,410,278 Class B GBP (Accumulation) Hedged 539,141.77 18,864.04 (137,502.92) 420,502.89 GBP 17.0914 GBP 7,187,001 Class B SEK (Accumulation) Hedged(q) 1,480.00 - (1,480.00) - SEK - SEK - Class L EUR (Accumulation) Hedged(t) 1.00 - (1.00) - EUR - EUR -

As at 31 October 2018 Class A EUR (Income) Hedged 6,063,327.42 588,298.53 (2,600,597.66) 4,051,028.29 EUR 6.8150 EUR 27,607,907 Class A GBP (Income) Hedged 1,302,918.54 617,997.21 (140,999.55) 1,779,916.20 GBP 5.0183 GBP 8,932,326 Class A US Dollar (Income) Unhedged 1,465,668.08 53,801.76 (591,143.66) 928,326.18 USD 10.7268 USD 9,957,991 Class B EUR (Income) Hedged 2,573,651.23 440,219.98 (1,354,764.29) 1,659,106.92 EUR 10.4701 EUR 17,371,086 Class B GBP (Income) Hedged 8,199,411.46 479,281.91 (7,052,301.25) 1,626,392.12 GBP 10.5880 GBP 17,220,353 Class B US Dollar (Income) Unhedged 5,968,365.07 487,397.00 (4,746,058.54) 1,709,703.53 USD 10.9380 USD 18,700,812 Class S EUR (Income) Hedged(i) - 1,300.00 - 1,300.00 EUR 9.9666 EUR 12,957 Class A CHF (Accumulation) Hedged 343,330.22 17,790.00 (86,337.00) 274,783.22 CHF 12.6930 CHF 3,487,834 Class A EUR (Accumulation) Hedged 245,894.60 102,750.13 (89,127.82) 259,516.91 EUR 13.1502 EUR 3,412,709 Class A US Dollar (Accumulation) Unhedged 129,193.75 1,730.86 (32,745.19) 98,179.42 USD 13.1235 USD 1,288,465 Class B CHF (Accumulation) Hedged 305,433.00 527,920.00 (157,500.00) 675,853.00 CHF 11.4288 CHF 7,724,230 Class B EUR (Accumulation) Hedged 3,513,719.64 180,004.37 (984,406.99) 2,709,317.02 EUR 13.5213 EUR 36,633,749 Class B GBP (Accumulation) Hedged 681,001.89 56,530.39 (198,390.51) 539,141.77 GBP 15.7539 GBP 8,493,614 Class B SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 114.0331 SEK 168,769 Class I EUR (Accumulation) Hedged(j) 660.22 7.55 (667.77) - EUR - EUR - Class L EUR (Accumulation) Hedged 1.00 - - 1.00 EUR 10,513.0404 EUR 10,513

As at 31 October 2017 Class A EUR (Income) Hedged 5,086,299.27 1,440,741.67 (463,713.52) 6,063,327.42 EUR 7.2879 EUR 44,188,924 Class A GBP (Income) Hedged 1,769,312.44 400,431.28 (866,825.18) 1,302,918.54 GBP 5.3095 GBP 6,917,846 Class A US Dollar (Income) Unhedged 1,096,006.81 495,692.04 (126,030.77) 1,465,668.08 USD 11.1490 USD 16,340,733 Class B EUR (Income) Hedged 3,501,583.04 349,474.37 (1,277,406.18) 2,573,651.23 EUR 11.1290 EUR 28,642,165 Class B GBP (Income) Hedged 12,823,471.78 1,543,257.90 (6,167,318.22) 8,199,411.46 GBP 11.1323 GBP 91,278,308 Class B US Dollar (Income) Unhedged 8,509,330.33 1,255,088.90 (3,796,054.16) 5,968,365.07 USD 11.2973 USD 67,426,411 Class A CHF (Accumulation) Hedged 761,298.22 207,127.00 (625,095.00) 343,330.22 CHF 12.9934 CHF 4,461,027 Class A EUR (Accumulation) Hedged 226,293.26 111,672.26 (92,070.92) 245,894.60 EUR 13.4028 EUR 3,295,676 Class A US Dollar (Accumulation) Unhedged 233,094.38 32,267.13 (136,167.76) 129,193.75 USD 13.0068 USD 1,680,397 Class B CHF (Accumulation) Hedged 295,711.00 85,545.00 (75,823.00) 305,433.00 CHF 11.6189 CHF 3,548,795 Class B EUR (Accumulation) Hedged 2,343,497.46 1,307,603.63 (137,381.45) 3,513,719.64 EUR 13.6970 EUR 48,127,418

92 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) High Yield Global Bond Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2017 (continued) Class B GBP (Accumulation) Hedged 522,408.94 324,015.59 (165,422.64) 681,001.89 GBP 15.7865 GBP 10,750,636 Class B SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 115.6220 SEK 171,121 Class I EUR (Accumulation) Hedged 571.00 121.34 (32.12) 660.22 EUR 10,848.5928 EUR 7,162,458 Class L EUR (Accumulation) Hedged 1.00 - - 1.00 EUR 10,710.3999 EUR 10,710

Absolute Return Bond Fund

As at 31 October 2019 Class B GBP (Income) Unhedged 71,232,857.30 4,102,109.85 (58,133,683.34) 17,201,283.81 GBP 9.8389 GBP 169,241,211 Class B GBP (Accumulation) Unhedged 1,170,539.07 2,334,555.85 (868,025.35) 2,637,069.57 GBP 11.2228 GBP 29,595,254 Class C CHF (Accumulation) Hedged 41,588.02 - - 41,588.02 CHF 9.8331 CHF 408,938 Class C EUR (Accumulation) Hedged 10,873,976.15 2,760,158.79 (12,843,635.94) 790,499.00 EUR 10.1900 EUR 8,055,164 Class C GBP (Accumulation) Unhedged 87,176,054.56 9,021,386.82 (65,606,578.59) 30,590,862.79 GBP 11.1662 GBP 341,583,095 Class C US Dollar (Accumulation) Hedged 938,248.10 910,261.32 (973,119.67) 875,389.75 USD 11.1332 USD 9,745,872 Class H EUR (Accumulation) Hedged(r) 170.94 1,707.05 (170.94) 1,707.05 EUR 10.0157 EUR 17,097 Class H US Dollar (Accumulation) Hedged(q) 1,860.00 - (1,860.00) - USD - USD -

As at 31 October 2018 Class B GBP (Income) Unhedged 68,775,392.52 11,902,464.90 (9,445,000.12) 71,232,857.30 GBP 9.8521 GBP 701,797,182 Class H EUR (Income) Hedged(d) 3,520.00 - (3,520.00) - EUR - EUR - Class A EUR (Accumulation) Hedged(d) 489.98 - (489.98) - EUR - EUR - Class B EUR (Accumulation) Hedged(d) 2,194.00 - (2,194.00) - EUR - EUR - Class B GBP (Accumulation) Unhedged 2,754,073.29 607,219.86 (2,190,754.08) 1,170,539.07 GBP 11.0768 GBP 12,965,905 Class B US Dollar (Accumulation) Hedged(d) 291.36 - (291.36) - USD - USD - Class C CHF (Accumulation) Hedged 63,483.02 17,455.00 (39,350.00) 41,588.02 CHF 9.8845 CHF 411,080 Class C EUR (Accumulation) Hedged 19,027,492.20 6,247,267.38 (14,400,783.43) 10,873,976.15 EUR 10.2062 EUR 110,982,546 Class C GBP (Accumulation) Unhedged 90,085,837.72 19,243,555.14 (22,153,338.30) 87,176,054.56 GBP 11.0141 GBP 960,169,576 Class C SEK (Accumulation) Hedged(l) 1,024,185.00 - (1,024,185.00) - SEK - SEK - Class C US Dollar (Accumulation) Hedged 379,539.09 662,667.05 (103,958.04) 938,248.10 USD 10.8030 USD 10,135,988 Class H CHF (Accumulation) Hedged(d) 1,830.00 - (1,830.00) - CHF - CHF - Class H EUR (Accumulation) Hedged 51,546.72 26,330.62 (77,706.40) 170.94 EUR 9.8719 EUR 1,688 Class H US Dollar (Accumulation) Hedged 10,560.00 - (8,700.00) 1,860.00 USD 10.3567 USD 19,264

93 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) Absolute Return Bond Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2017 Class B GBP (Income) Unhedged 64,524,315.65 5,318,866.31 (1,067,789.44) 68,775,392.52 GBP 9.9581 GBP 684,872,236 Class H EUR (Income) Hedged 3,520.00 - - 3,520.00 EUR 9.6674 EUR 34,029 Class A EUR (Accumulation) Hedged 489.98 - - 489.98 EUR 10.0101 EUR 4,905 Class B EUR (Accumulation) Hedged 3,246.75 - (1,052.75) 2,194.00 EUR 10.5095 EUR 23,058 Class B GBP (Accumulation) Unhedged 11,665,535.79 2,519,576.01 (11,431,038.51) 2,754,073.29 GBP 11.0522 GBP 30,438,569 Class B US Dollar (Accumulation) Hedged 410.71 - (119.35) 291.36 USD 10.4028 USD 3,031 Class C CHF (Accumulation) Hedged 534,121.02 45,257.00 (515,895.00) 63,483.02 CHF 10.0117 CHF 635,573 Class C EUR (Accumulation) Hedged 37,297,213.43 13,931,221.89 (32,200,943.12) 19,027,492.20 EUR 10.2975 EUR 195,935,601 Class C GBP (Accumulation) Unhedged 73,892,444.86 35,550,895.25 (19,357,502.39) 90,085,837.72 GBP 10.9731 GBP 988,520,906 Class C SEK (Accumulation) Hedged 12,035,886.91 332,082.97 (11,343,784.88) 1,024,185.00 SEK 100.6225 SEK 103,056,055 Class C US Dollar (Accumulation) Hedged 553,328.44 209,803.47 (383,592.82) 379,539.09 USD 10.6179 USD 4,029,908 Class H CHF (Accumulation) Hedged 1,830.00 - - 1,830.00 CHF 9.7383 CHF 17,821 Class H EUR (Accumulation) Hedged 38,255.74 50,514.00 (37,223.02) 51,546.72 EUR 10.0729 EUR 519,225 Class H US Dollar (Accumulation) Hedged 242,010.00 - (231,450.00) 10,560.00 USD 10.2227 USD 107,952

Global Equity Income Fund

As at 31 October 2019 Class A EUR (Income) Unhedged 192,126.93 132,577.00 (46,108.08) 278,595.85 EUR 15.0413 EUR 4,190,444 Class B EUR (Income) Unhedged 60,936.46 26,351.01 (6,149.82) 81,137.65 EUR 15.3500 EUR 1,245,467 Class B US Dollar (Income) Unhedged(u) 2,361.99 220.23 (2,582.22) - USD - USD - Class C GBP (Income) Unhedged 2,431,097.65 372,391.74 (147,821.67) 2,655,667.72 GBP 15.7760 GBP 41,895,829 Class C US Dollar (Income) Unhedged 1,767.73 - - 1,767.73 USD 14.4454 USD 25,536 Class S EUR (Income) Unhedged 1,300.00 31.69 - 1,331.69 EUR 11.3357 EUR 15,096 Class A EUR (Accumulation) Unhedged(u) 68,532.66 22,776.75 (91,309.41) - EUR - EUR - Class A US Dollar (Accumulation) Unhedged(u) 227,240.90 784.15 (228,025.05) - USD - USD - Class B EUR (Accumulation) Unhedged(u) 3,250.48 - (3,250.48) - EUR - EUR - Class B EUR (Accumulation) Hedged 4,361,041.84 - (9,615.78) 4,351,426.06 EUR 18.2785 EUR 79,537,609 Class B GBP (Accumulation) Unhedged 4,029,821.26 3,288,864.14 (26,430.57) 7,292,254.83 GBP 18.7381 GBP 136,643,192 Class B US Dollar (Accumulation) Unhedged 15,969,703.89 2,678.68 (6,484,347.03) 9,488,035.54 USD 17.6718 USD 167,670,722 Class C EUR (Accumulation) Unhedged(q) 1,700.00 - (1,700.00) - EUR - EUR - Class C SEK (Accumulation) Unhedged(q) 1,480.00 - (1,480.00) - SEK - SEK -

94 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) Global Equity Income Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2018 Class A EUR (Income) Unhedged 113,736.47 106,180.90 (27,790.44) 192,126.93 EUR 13.0523 EUR 2,507,701 Class B EUR (Income) Unhedged 42,853.53 19,082.93 (1,000.00) 60,936.46 EUR 13.2532 EUR 807,607 Class B GBP (Income) Unhedged(d) 42,580.61 - (42,580.61) - GBP - GBP - Class B US Dollar (Income) Unhedged 3,061.46 50,575.13 (51,274.60) 2,361.99 USD 12.6046 USD 29,772 Class C GBP (Income) Unhedged 2,879,482.50 24,914.37 (473,299.22) 2,431,097.65 GBP 14.0342 GBP 34,118,535 Class C US Dollar (Income) Unhedged 1,310.66 463.32 (6.25) 1,767.73 USD 12.6880 USD 22,429 Class S EUR (Income) Unhedged(i) - 1,300.00 - 1,300.00 EUR 9.7373 EUR 12,659 Class A EUR (Accumulation) Unhedged 67,147.82 15,249.37 (13,864.53) 68,532.66 EUR 15.0140 EUR 1,028,953 Class A US Dollar (Accumulation) Unhedged 11,619.20 217,342.44 (1,720.74) 227,240.90 USD 13.5892 USD 3,088,044 Class B EUR (Accumulation) Unhedged 3,250.48 - - 3,250.48 EUR 15.4019 EUR 50,064 Class B EUR (Accumulation) Hedged 4,362,321.86 - (1,280.02) 4,361,041.84 EUR 15.9149 EUR 69,405,738 Class B GBP (Accumulation) Unhedged 3,986,470.09 110,715.72 (67,364.55) 4,029,821.26 GBP 16.1907 GBP 65,245,942 Class B US Dollar (Accumulation) Unhedged 20,975,071.52 1,643.64 (5,007,011.27) 15,969,703.89 USD 15.0508 USD 240,357,972 Class C EUR (Accumulation) Unhedged 1,700.00 - - 1,700.00 EUR 11.1143 EUR 18,894 Class C GBP (Accumulation) Unhedged(q) 1,200.00 - (1,200.00) - GBP - GBP - Class C SEK (Accumulation) Unhedged 1,480.00 - - 1,480.00 SEK 134.1267 SEK 198,508

As at 31 October 2017 Class A EUR (Income) Unhedged 94,569.31 29,779.48 (10,612.32) 113,736.47 EUR 13.8688 EUR 1,577,388 Class B EUR (Income) Unhedged 27,246.92 15,606.61 - 42,853.53 EUR 14.0132 EUR 600,515 Class B GBP (Income) Unhedged 3,913.26 38,667.35 - 42,580.61 GBP 14.6057 GBP 621,920 Class B US Dollar (Income) Unhedged 31,007.48 327.26 (28,273.28) 3,061.46 USD 13.6724 USD 41,858 Class C GBP (Income) Unhedged 3,555,816.23 - (676,333.73) 2,879,482.50 GBP 14.6750 GBP 42,256,406 Class C US Dollar (Income) Unhedged 98,215.67 2,620.62 (99,525.63) 1,310.66 USD 13.7343 USD 18,001 Class A EUR (Accumulation) Unhedged 52,004.47 15,840.20 (696.85) 67,147.82 EUR 15.4086 EUR 1,034,654 Class A US Dollar (Accumulation) Unhedged 13,333.72 226,538.85 (228,253.37) 11,619.20 USD 14.3075 USD 166,242 Class B EUR (Accumulation) Unhedged 3,250.48 - - 3,250.48 EUR 15.7307 EUR 51,132 Class B EUR (Accumulation) Hedged 4,362,321.86 - - 4,362,321.86 EUR 16.8212 EUR 73,379,488 Class B GBP (Accumulation) Unhedged 5,798,812.89 141,757.90 (1,954,100.70) 3,986,470.09 GBP 16.3882 GBP 65,331,069 Class B US Dollar (Accumulation) Unhedged 23,415,048.49 - (2,439,976.97) 20,975,071.52 USD 15.7662 USD 330,697,173 Class C EUR (Accumulation) Unhedged 1,700.00 - - 1,700.00 EUR 11.3255 EUR 19,253 Class C GBP (Accumulation) Unhedged 1,200.00 - - 1,200.00 GBP 13.9725 GBP 16,767 Class C SEK (Accumulation) Unhedged 1,480.00 - - 1,480.00 SEK 127.9811 SEK 189,412 Class C US Dollar (Accumulation) Unhedged 88,105.00 - (88,105.00) - USD - USD -

95 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) Active Long Dated Bond Fund(3) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2018 Class B GBP (Accumulation) Unhedged 7,571,367.68 17,861.00 (7,589,228.68) - GBP - GBP -

As at 31 October 2017 Class B GBP (Accumulation) Unhedged 11,971,607.13 41,262.08 (4,441,501.53) 7,571,367.68 GBP 13.2597 GBP 100,394,108

Equity Market Neutral Plus Fund(2)

As at 31 October 2018 Class B CHF (Accumulation) Hedged(d) 1,820.00 - (1,820.00) - CHF - CHF - Class B EUR (Accumulation) Hedged 31,505.74 - (31,505.74) - EUR - EUR - Class B GBP (Accumulation) Unhedged 452,029.89 519.47 (452,549.36) - GBP - GBP - Class B SEK (Accumulation) Hedged(d) 1,480.00 - (1,480.00) - SEK - SEK - Class B US Dollar (Accumulation) Hedged(d) 89,649.24 - (89,649.24) - USD - USD - Class C CHF (Accumulation) Hedged 1,820.00 - (1,820.00) - CHF - CHF - Class C EUR (Accumulation) Hedged 1,189,904.40 - (1,189,904.40) - EUR - EUR - Class C GBP (Accumulation) Unhedged 1,351,659.16 - (1,351,659.16) - GBP - GBP - Class C SEK (Accumulation) Hedged 1,480.00 - (1,480.00) - SEK - SEK -

As at 31 October 2017 Class B CHF (Accumulation) Hedged 23,749.69 8,355.02 (30,284.71) 1,820.00 CHF 8.8774 CHF 16,157 Class B EUR (Accumulation) Hedged 989,748.81 27,791.00 (986,034.07) 31,505.74 EUR 8.9132 EUR 280,817 Class B GBP (Accumulation) Unhedged 3,175,768.45 484,814.58 (3,208,553.14) 452,029.89 GBP 9.1439 GBP 4,133,316 Class B SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 87.6854 SEK 129,774 Class B US Dollar (Accumulation) Hedged 84,128.55 34,556.50 (29,035.81) 89,649.24 USD 9.3037 USD 834,070 Class C CHF (Accumulation) Hedged 32,100.00 - (30,280.00) 1,820.00 CHF 8.9091 CHF 16,215 Class C EUR (Accumulation) Hedged 3,856,476.27 21,332.11 (2,687,903.98) 1,189,904.40 EUR 9.0346 EUR 10,750,310 Class C GBP (Accumulation) Unhedged 2,402,727.48 116,874.00 (1,167,942.32) 1,351,659.16 GBP 9.3101 GBP 12,584,082 Class C SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 88.0583 SEK 130,326 Class C US Dollar (Accumulation) Hedged 1,067,100.96 3,171,498.92 (4,238,599.88) - USD - USD -

96 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) Equity Market Neutral Fund(4) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2018 Class A EUR (Accumulation) Hedged 2,374,249.58 29,505.31 (2,403,754.89) - EUR - EUR - Class B CHF (Accumulation) Hedged 3,035.00 - (3,035.00) - CHF - CHF - Class B EUR (Accumulation) Hedged 8,154,305.54 682,931.74 (8,837,237.28) - EUR - EUR - Class B GBP (Accumulation) Unhedged 3,848,422.40 16.07 (3,848,438.47) - GBP - GBP - Class B SEK (Accumulation) Hedged 1,480.00 - (1,480.00) - SEK - SEK - Class B US Dollar (Accumulation) Hedged 4,630.49 - (4,630.49) - USD - USD -

As at 31 October 2017 Class A EUR (Accumulation) Hedged 3,940,160.60 1,371,433.21 (2,937,344.23) 2,374,249.58 EUR 9.2666 EUR 22,001,221 Class B CHF (Accumulation) Hedged 13,035.00 - (10,000.00) 3,035.00 CHF 9.2479 CHF 28,067 Class B EUR (Accumulation) Hedged 17,524,077.62 3,117,802.71 (12,487,574.79) 8,154,305.54 EUR 9.4207 EUR 76,819,266 Class B GBP (Accumulation) Unhedged 4,191,734.19 83,167.55 (426,479.34) 3,848,422.40 GBP 9.6715 GBP 37,220,017 Class B SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 93.2654 SEK 138,033 Class B US Dollar (Accumulation) Hedged 408,642.64 - (404,012.15) 4,630.49 USD 9.7398 USD 45,100

Absolute Return Bond Global Fund(6)

As at 31 October 2019 Class B GBP (Income) Unhedged 56,880.06 11,230.30 (68,110.36) - GBP - GBP - Class C EUR (Income) Hedged(o) 10,739.79 - (10,739.79) - EUR - EUR - Class C GBP (Income) Unhedged 133,891.82 - (133,891.82) - GBP - GBP - Class B GBP (Accumulation) Unhedged 1,272,607.59 84,657.74 (1,357,265.33) - GBP - GBP - Class B SEK (Accumulation) Hedged 276,822.33 - (276,822.33) - SEK - SEK - Class C CHF (Accumulation) Hedged 1,730.00 - (1,730.00) - CHF - CHF - Class C EUR (Accumulation) Hedged 720,230.52 4,816.09 (725,046.61) - EUR - EUR - Class C GBP (Accumulation) Unhedged 9,732,509.55 589,274.88 (10,321,784.43) - GBP - GBP - Class C SEK (Accumulation) Hedged(q) 1,480.00 - (1,480.00) - SEK - SEK - Class C US Dollar (Accumulation) Hedged 21,230.44 20,558.98 (41,789.42) - USD - USD -

As at 31 October 2018 Class B EUR (Income) Hedged(d) 93,227.52 151.58 (93,379.10) - EUR - EUR - Class B GBP (Income) Unhedged 1,436,900.82 56,759.53 (1,436,780.29) 56,880.06 GBP 9.8064 GBP 557,790 Class C EUR (Income) Hedged 2,682.00 80,677.21 (72,619.42) 10,739.79 EUR 9.4521 EUR 101,514 Class C GBP (Income) Unhedged 209,711.87 - (75,820.05) 133,891.82 GBP 9.8059 GBP 1,312,943 Class B CHF (Accumulation) Hedged(d) 9,743.10 - (9,743.10) - CHF - CHF - Class B EUR (Accumulation) Hedged(d) 1,670.00 - (1,670.00) - EUR - EUR -

97 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

Absolute Return Bond Global Fund(6) (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2018 Class B GBP (Accumulation) Unhedged 1,493,461.16 136,268.93 (357,122.50) 1,272,607.59 GBP 10.2602 GBP 13,057,279 Class B SEK (Accumulation) Hedged 489,476.69 - (212,654.36) 276,822.33 SEK 100.0838 SEK 27,705,455 Class B US Dollar (Accumulation) Hedged(d) 104,513.80 - (104,513.80) - USD - USD - Class C CHF (Accumulation) Hedged 14,330.00 3,183.03 (15,783.03) 1,730.00 CHF 9.7971 CHF 16,949 Class C EUR (Accumulation) Hedged 2,027,983.31 145,480.00 (1,453,232.79) 720,230.52 EUR 9.9841 EUR 7,190,861 Class C GBP (Accumulation) Unhedged 7,056,796.06 3,472,998.96 (797,285.47) 9,732,509.55 GBP 10.3537 GBP 100,767,863 Class C SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 100.9177 SEK 149,358 Class C US Dollar (Accumulation) Hedged 17,912.52 48,571.94 (45,254.02) 21,230.44 USD 10.5795 USD 224,609 Class Z GBP (Accumulation) Unhedged(d) 1,200.00 - (1,200.00) - GBP - GBP -

As at 31 October 2017 Class B EUR (Income) Hedged 60,709.34 35,562.87 (3,044.69) 93,227.52 EUR 9.7314 EUR 907,234 Class B GBP (Income) Unhedged 1,303,814.55 1,690,882.14 (1,557,795.87) 1,436,900.82 GBP 9.9597 GBP 14,311,101 Class C EUR (Income) Hedged 2,682.00 - - 2,682.00 EUR 9.7209 EUR 26,071 Class C GBP (Income) Unhedged 331,106.95 1,760.00 (123,155.08) 209,711.87 GBP 9.9593 GBP 2,088,583 Class B CHF (Accumulation) Hedged 30,619.36 10,998.19 (31,874.45) 9,743.10 CHF 9.8562 CHF 96,030 Class B EUR (Accumulation) Hedged 1,670.00 - - 1,670.00 EUR 10.0153 EUR 16,726 Class B GBP (Accumulation) Unhedged 1,784,193.19 223,483.77 (514,215.80) 1,493,461.16 GBP 10.2505 GBP 15,308,724 Class B SEK (Accumulation) Hedged 562,930.00 13,610.33 (87,063.64) 489,476.69 SEK 101.3181 SEK 49,592,848 Class B US Dollar (Accumulation) Hedged 100,357.32 35,628.00 (31,471.52) 104,513.80 USD 10.3220 USD 1,078,791 Class C CHF (Accumulation) Hedged 33,230.00 - (18,900.00) 14,330.00 CHF 9.9260 CHF 142,240 Class C EUR (Accumulation) Hedged 6,900.00 2,039,517.14 (18,433.83) 2,027,983.31 EUR 10.0768 EUR 20,435,582 Class C GBP (Accumulation) Unhedged 1,485,129.45 5,802,787.46 (231,120.85) 7,056,796.06 GBP 10.3181 GBP 72,812,727 Class C SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 101.7904 SEK 150,650 Class C US Dollar (Accumulation) Hedged 1,810.00 21,196.11 (5,093.59) 17,912.52 USD 10.3961 USD 186,220 Class Z GBP (Accumulation) Unhedged 1,200.00 - - 1,200.00 GBP 10.3872 GBP 12,465

98 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) Absolute Return Bond Constrained Fund(6) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2019 Class C CHF (Accumulation) Hedged 60,844.00 - (60,844.00) - CHF - CHF - Class C EUR (Accumulation) Unhedged 6,816,315.21 - (6,816,315.21) - EUR - EUR - Class C GBP (Accumulation) Hedged(q) 1,200.00 - (1,200.00) - GBP - GBP - Class C SEK (Accumulation) Hedged(q) 1,480.00 - (1,480.00) - SEK - SEK - Class C US Dollar (Accumulation) Hedged(q) 1,810.00 - (1,810.00) - USD - USD -

As at 31 October 2018 Class B CHF (Accumulation) Hedged(d) 1,730.00 - (1,730.00) - CHF - CHF - Class B EUR (Accumulation) Unhedged(d) 2,105,866.38 - (2,105,866.38) - EUR - EUR - Class B GBP (Accumulation) Hedged(d) 1,200.00 - (1,200.00) - GBP - GBP - Class B SEK (Accumulation) Hedged(d) 1,480.00 - (1,480.00) - SEK - SEK - Class B US Dollar (Accumulation) Hedged(d) 1,810.00 - (1,810.00) - USD - USD - Class C CHF (Accumulation) Hedged 46,315.00 22,000.00 (7,471.00) 60,844.00 CHF 9.7472 CHF 593,064 Class C EUR (Accumulation) Unhedged 6,130,258.51 1,964,278.45 (1,278,221.75) 6,816,315.21 EUR 9.9939 EUR 68,121,705 Class C GBP (Accumulation) Hedged 1,200.00 - - 1,200.00 GBP 10.2622 GBP 12,315 Class C SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 99.3914 SEK 147,099 Class C US Dollar (Accumulation) Hedged 1,810.00 - - 1,810.00 USD 10.5433 USD 19,084

As at 31 October 2017 Class B CHF (Accumulation) Hedged 1,730.00 - - 1,730.00 CHF 9.8303 CHF 17,006 Class B EUR (Accumulation) Unhedged 2,358,325.63 37,400.86 (289,860.11) 2,105,866.38 EUR 10.0193 EUR 21,099,307 Class B GBP (Accumulation) Hedged 1,200.00 - - 1,200.00 GBP 10.1977 GBP 12,237 Class B SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 99.9595 SEK 147,940 Class B US Dollar (Accumulation) Hedged 1,810.00 - - 1,810.00 USD 10.3082 USD 18,658 Class C CHF (Accumulation) Hedged 60,662.00 - (14,347.00) 46,315.00 CHF 9.8531 CHF 456,346 Class C EUR (Accumulation) Unhedged 4,037,500.00 2,809,484.51 (716,726.00) 6,130,258.51 EUR 10.0440 EUR 61,572,316 Class C GBP (Accumulation) Hedged 1,200.00 - - 1,200.00 GBP 10.2207 GBP 12,265 Class C SEK (Accumulation) Hedged 1,480.00 - - 1,480.00 SEK 100.1344 SEK 148,199 Class C US Dollar (Accumulation) Hedged 1,810.00 - - 1,810.00 USD 10.3374 USD 18,711

99 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued) Emerging Market Bond Opportunities Fund(5) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2019 Class C EUR (Accumulation) Hedged 1,650.00 - (1,650.00) - EUR - EUR - Class C GBP (Accumulation) Hedged 5,433.61 - (5,433.61) - GBP - GBP - Class C US Dollar (Accumulation) Unhedged 4,224,020.49 - (4,224,020.49) - USD - USD -

As at 31 October 2018 Class C EUR (Income) Hedged(d) 1,650.00 - (1,650.00) - EUR - EUR - Class C GBP (Income) Hedged(d) 1,200.00 - (1,200.00) - GBP - GBP - Class C US Dollar (Income) Unhedged(d) 1,860.00 - (1,860.00) - USD - USD - Class B EUR (Accumulation) Hedged(d) 1,650.00 - (1,650.00) - EUR - EUR - Class B US Dollar (Accumulation) Unhedged(d) 4,532,483.29 - (4,532,483.29) - USD - USD - Class C EUR (Accumulation) Hedged 1,650.00 - - 1,650.00 EUR 10.3026 EUR 16,999 Class C GBP (Accumulation) Hedged 1,200.00 4,233.61 - 5,433.61 GBP 10.6072 GBP 57,636 Class C US Dollar (Accumulation) Unhedged 4,532,483.29 4,518,715.41 (4,827,178.21) 4,224,020.49 USD 10.9604 USD 46,297,085

As at 31 October 2017 Class C EUR (Income) Hedged 1,650.00 - - 1,650.00 EUR 10.1164 EUR 16,692 Class C GBP (Income) Hedged(d) 1,200.00 - - 1,200.00 GBP 10.2883 GBP 12,346 Class C US Dollar (Income) Unhedged 1,860.00 - - 1,860.00 USD 10.4430 USD 19,424 Class B EUR (Accumulation) Hedged 1,650.00 - - 1,650.00 EUR 10.8938 EUR 17,975 Class B US Dollar (Accumulation) Unhedged 4,532,483.29 - - 4,532,483.29 USD 11.2638 USD 51,052,985 Class C EUR (Accumulation) Hedged 1,650.00 - - 1,650.00 EUR 10.9266 EUR 18,029 Class C GBP (Accumulation) Hedged 1,227.08 - (27.08) 1,200.00 GBP 11.1237 GBP 13,348 Class C US Dollar (Accumulation) Unhedged 4,532,483.29 - - 4,532,483.29 USD 11.2978 USD 51,207,090

100 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

Global Diversified Income Fund At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2019 Class A CHF (Income) Hedged(m) - 1,557.38 - 1,557.38 CHF 10.8036 CHF 16,825 Class A EUR (Income) Unhedged 1,520,247.66 1,528,530.67 (400,107.56) 2,648,670.77 EUR 10.1053 EUR 26,765,623 Class A GBP (Income) Hedged 217,504.34 145,490.15 (30,405.20) 332,589.29 GBP 9.9046 GBP 3,294,174 Class A US Dollar (Income) Hedged 87,418.00 53,039.87 (21,558.91) 118,898.96 USD 10.2623 USD 1,220,174 Class B CHF (Income) Hedged 19,142.45 14,905.08 (3,294.15) 30,753.38 CHF 10.2906 CHF 316,470 Class B EUR (Income) Unhedged 1,466,665.02 1,940,950.69 (185,515.91) 3,222,099.80 EUR 10.5088 EUR 33,860,247 Class B GBP (Income) Hedged 4,345,312.22 148,583.05 (21,020.26) 4,472,875.01 GBP 10.7942 GBP 48,281,175 Class B SEK (Income) Hedged(u) 1,400.00 2,047.94 (3,447.94) - SEK - SEK - Class B US Dollar (Income) Hedged 42,207.07 64,082.21 (28,478.15) 77,811.13 USD 11.3498 USD 883,145 Class C EUR (Income) Unhedged 169,194.16 99,801.44 (51,850.00) 217,145.60 EUR 10.6051 EUR 2,302,860 Class C GBP (Income) Hedged 279,835.80 5,302.90 (116,697.99) 168,440.71 GBP 10.8832 GBP 1,833,175 Class C US Dollar (Income) Hedged 35,063.95 64.97 (7,662.84) 27,466.08 USD 11.4220 USD 313,717 Class A EUR (Accumulation) Unhedged 494,795.43 802,108.72 (160,251.80) 1,136,652.35 EUR 11.9776 EUR 13,614,326 Class A US Dollar (Accumulation) Hedged 21,968.99 36,890.65 - 58,859.64 USD 11.4320 USD 672,886 Class B EUR (Accumulation) Unhedged 3,592,879.85 278,508.40 (3,287,356.37) 584,031.88 EUR 12.6232 EUR 7,372,339 Class C EUR (Accumulation) Unhedged 1,697,495.14 702,666.01 (972,129.70) 1,428,031.45 EUR 12.7365 EUR 18,188,073 Class C US Dollar (Accumulation) Hedged 513,678.00 109,370.00 (195,963.00) 427,085.00 USD 11.4128 USD 4,874,250

As at 31 October 2018 Class A EUR (Income) Unhedged 699,304.52 900,119.94 (79,176.80) 1,520,247.66 EUR 9.4927 EUR 14,431,350 Class A GBP (Income) Hedged 21,079.91 208,862.54 (12,438.11) 217,504.34 GBP 9.2164 GBP 2,004,621 Class A US Dollar (Income) Hedged 12,077.04 80,266.50 (4,925.54) 87,418.00 USD 9.3704 USD 819,148 Class B CHF (Income) Hedged 8,945.00 10,197.45 - 19,142.45 CHF 9.6737 CHF 185,179 Class B EUR (Income) Unhedged 715,406.83 1,254,672.84 (503,414.65) 1,466,665.02 EUR 9.8223 EUR 14,406,068 Class B GBP (Income) Hedged 4,303,087.40 44,030.21 (1,805.39) 4,345,312.22 GBP 9.9907 GBP 43,413,025 Class B SEK (Income) Hedged 1,400.00 - - 1,400.00 SEK 97.3744 SEK 136,324 Class B US Dollar (Income) Hedged 14,541.29 40,930.07 (13,264.29) 42,207.07 USD 10.3084 USD 435,088 Class C CHF (Income) Hedged(d) 1,650.00 - (1,650.00) - CHF - CHF - Class C EUR (Income) Unhedged 116,749.49 68,054.67 (15,610.00) 169,194.16 EUR 9.8875 EUR 1,672,918 Class C GBP (Income) Hedged 216,006.48 96,872.49 (33,043.17) 279,835.80 GBP 10.0522 GBP 2,812,975 Class C US Dollar (Income) Hedged 14,182.88 20,881.07 - 35,063.95 USD 10.3485 USD 362,862 Class A EUR (Accumulation) Unhedged 547,966.27 194,091.61 (247,262.45) 494,795.43 EUR 10.7028 EUR 5,295,721 Class A US Dollar (Accumulation) Hedged 13,000.00 24,692.57 (15,723.58) 21,968.99 USD 9.9351 USD 218,265 Class B EUR (Accumulation) Unhedged 3,035,948.38 984,957.24 (428,025.77) 3,592,879.85 EUR 11.2233 EUR 40,324,230 Class C EUR (Accumulation) Unhedged 3,164,611.84 363,081.80 (1,830,198.50) 1,697,495.14 EUR 11.2959 EUR 19,174,834 Class C US Dollar (Accumulation) Hedged(h) - 530,343.00 (16,665.00) 513,678.00 USD 9.8398 USD 5,054,509

101 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

Global Diversified Income Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2017 Class A EUR (Income) Unhedged 2,871.34 709,205.91 (12,772.73) 699,304.52 EUR 10.3354 EUR 7,227,592 Class A GBP (Income) Hedged(c) - 21,079.91 - 21,079.91 GBP 9.9490 GBP 209,724 Class A US Dollar (Income) Hedged(c) - 12,077.04 - 12,077.04 USD 9.9624 USD 120,316 Class B CHF (Income) Hedged 1,650.00 7,295.00 - 8,945.00 CHF 10.5411 CHF 94,290 Class B EUR (Income) Unhedged 7,020.66 711,736.17 (3,350.00) 715,406.83 EUR 10.6402 EUR 7,612,072 Class B GBP (Income) Hedged 4,271,797.39 42,203.54 (10,913.53) 4,303,087.40 GBP 10.7254 GBP 46,152,334 Class B SEK (Income) Hedged 1,400.00 - - 1,400.00 SEK 105.7904 SEK 148,107 Class B US Dollar (Income) Hedged 1,700.00 12,841.29 - 14,541.29 USD 10.8876 USD 158,320 Class C CHF (Income) Hedged 1,650.00 - - 1,650.00 CHF 10.5758 CHF 17,450 Class C EUR (Income) Unhedged 1,500.00 115,249.49 - 116,749.49 EUR 10.6843 EUR 1,247,387 Class C GBP (Income) Hedged 274,526.77 61,227.40 (119,747.69) 216,006.48 GBP 10.7666 GBP 2,325,655 Class C US Dollar (Income) Hedged 22,371.60 - (8,188.72) 14,182.88 USD 10.9198 USD 154,874 Class A EUR (Accumulation) Unhedged 6,261.26 597,806.70 (56,101.69) 547,966.27 EUR 11.0555 EUR 6,058,041 Class A US Dollar (Accumulation) Hedged(c) - 13,000.00 - 13,000.00 USD 10.0175 USD 130,228 Class B EUR (Accumulation) Unhedged 3,000,000.00 882,749.90 (846,801.52) 3,035,948.38 EUR 11.5354 EUR 35,020,879 Class C EUR (Accumulation) Unhedged 3,000,000.00 1,121,173.58 (956,561.74) 3,164,611.84 EUR 11.5810 EUR 36,649,370

Global Sustainable Equity Fund

As at 31 October 2019 Class A EUR (Income) Unhedged(p) - 1,402.02 - 1,402.02 EUR 10.7211 EUR 15,031 Class B EUR (Income) Unhedged(u) 39,942.58 12,454.57 (52,397.15) - EUR - EUR - Class C EUR (Income) Unhedged(q) 1,500.00 - (1,500.00) - EUR - EUR - Class A EUR (Accumulation) Unhedged(p) - 13,381.91 - 13,381.91 EUR 10.7470 EUR 143,816 Class B CHF (Accumulation) Unhedged(u) 1,650.00 5,120.00 (6,770.00) - CHF - CHF - Class B EUR (Accumulation) Unhedged 2,236,330.13 37,578.09 (8,250.00) 2,265,658.22 EUR 15.0169 EUR 34,023,217 Class B GBP (Accumulation) Unhedged 325,901.74 547,320.55 (284,505.61) 588,716.68 GBP 16.4145 GBP 9,663,468 Class B SEK (Accumulation) Unhedged(q) 1,400.00 - (1,400.00) - SEK - SEK - Class B US Dollar (Accumulation) Unhedged 1,700.00 803.52 - 2,503.52 USD 14.8103 USD 37,078 Class C CHF (Accumulation) Unhedged 1,650.00 - - 1,650.00 CHF 15.1926 CHF 25,068 Class C EUR (Accumulation) Unhedged 2,406,882.36 358,900.00 (48,208.00) 2,717,574.36 EUR 15.1635 EUR 41,207,941 Class C GBP (Accumulation) Unhedged 959,995.39 666,051.77 (217,334.31) 1,408,712.85 GBP 16.5825 GBP 23,360,049 Class C US Dollar (Accumulation) Unhedged(q) 1,700.00 - (1,700.00) - USD - USD -

102 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

Global Sustainable Equity Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2018 (continued) Class B EUR (Income) Unhedged 1,500.00 72,573.79 (34,131.21) 39,942.58 EUR 12.2235 EUR 488,240 Class C EUR (Income) Unhedged 1,500.00 - - 1,500.00 EUR 12.0163 EUR 18,024 Class B CHF (Accumulation) Unhedged 1,650.00 - - 1,650.00 CHF 12.4656 CHF 20,568 Class B EUR (Accumulation) Unhedged 2,324,307.28 14,986.16 (102,963.31) 2,236,330.13 EUR 12.1671 EUR 27,209,688 Class B GBP (Accumulation) Unhedged 114,376.37 627,050.92 (415,525.55) 325,901.74 GBP 13.7451 GBP 4,479,550 Class B SEK (Accumulation) Unhedged 1,400.00 - - 1,400.00 SEK 136.2895 SEK 190,805 Class B US Dollar (Accumulation) Unhedged 1,700.00 - - 1,700.00 USD 12.0519 USD 20,488 Class C CHF (Accumulation) Unhedged 1,650.00 - - 1,650.00 CHF 12.5419 CHF 20,694 Class C EUR (Accumulation) Unhedged 2,508,800.00 9,575.00 (111,492.64) 2,406,882.36 EUR 12.2434 EUR 29,468,413 Class C GBP (Accumulation) Unhedged 11,998.50 1,021,024.16 (73,027.27) 959,995.39 GBP 13.8208 GBP 13,267,856 Class C US Dollar (Accumulation) Unhedged 1,700.00 - - 1,700.00 USD 12.1257 USD 20,614

As at 31 October 2017 Class B EUR (Income) Unhedged 1,500.00 - - 1,500.00 EUR 12.7558 EUR 19,134 Class C EUR (Income) Unhedged 1,500.00 - - 1,500.00 EUR 12.7702 EUR 19,155 Class B CHF (Accumulation) Unhedged 1,650.00 - - 1,650.00 CHF 13.5260 CHF 22,318 Class B EUR (Accumulation) Unhedged 2,500,000.00 15,900.00 (191,592.72) 2,324,307.28 EUR 12.7949 EUR 29,739,279 Class B GBP (Accumulation) Unhedged 13,799.97 113,338.06 (12,761.66) 114,376.37 GBP 14.3232 GBP 1,638,236 Class B SEK (Accumulation) Unhedged 1,400.00 - - 1,400.00 SEK 135.9044 SEK 190,266 Class B US Dollar (Accumulation) Unhedged 1,700.00 - - 1,700.00 USD 13.1698 USD 22,389 Class C CHF (Accumulation) Unhedged 1,650.00 - - 1,650.00 CHF 13.5615 CHF 22,376 Class C EUR (Accumulation) Unhedged 2,500,000.00 8,800.00 - 2,508,800.00 EUR 12.8288 EUR 32,184,893 Class C GBP (Accumulation) Unhedged 5,175.00 6,823.50 - 11,998.50 GBP 14.3586 GBP 172,282 Class C US Dollar (Accumulation) Unhedged 1,700.00 - - 1,700.00 USD 13.2041 USD 22,447

Global Diversified Growth Fund

As at 31 October 2019 Class B EUR (Income) Unhedged 19,998.34 35.76 (18,428.34) 1,605.76 EUR 10.2950 EUR 16,531 Class A CHF (Accumulation) Hedged(m) - 14,803.30 - 14,803.30 CHF 10.7154 CHF 158,623 Class A EUR (Accumulation) Unhedged 4,107.44 2,115.06 (763.00) 5,459.50 EUR 9.9583 EUR 54,367 Class B CHF (Accumulation) Hedged(n) - 4,676.76 - 4,676.76 CHF 10.7600 CHF 50,322 Class B EUR (Accumulation) Unhedged 3,958,616.40 2,068.44 (17,665.95) 3,943,018.89 EUR 11.2858 EUR 44,500,145 Class B GBP (Accumulation) Hedged 687,516.02 61,571.35 (580,987.15) 168,100.22 GBP 11.6094 GBP 1,951,537 Class B US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 12.1846 USD 21,323 Class C GBP (Accumulation) Hedged 1,725,375.63 288,343.08 (1,265,924.31) 747,794.40 GBP 11.7267 GBP 8,769,168 103 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

Global Diversified Growth Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2018 Class B EUR (Income) Unhedged 19,998.34 - - 19,998.34 EUR 10.1145 EUR 202,273 Class C EUR (Income) Unhedged(d) 1,570.00 - (1,570.00) - EUR - EUR - Class A EUR (Accumulation) Unhedged 1,400.00 2,717.44 (10.00) 4,107.44 EUR 9.5564 EUR 39,253 Class B CHF (Accumulation) Hedged(d) 1,740.00 - (1,740.00) - CHF - CHF - Class B EUR (Accumulation) Unhedged 1,640,271.08 2,469,071.72 (150,726.40) 3,958,616.40 EUR 10.7763 EUR 42,659,569 Class B GBP (Accumulation) Hedged 679,605.33 183,863.65 (175,952.96) 687,516.02 GBP 10.9752 GBP 7,545,641 Class B SEK (Accumulation) Hedged(d) 1,460.00 - (1,460.00) - SEK - SEK - Class B US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 11.3038 USD 19,782 Class C CHF (Accumulation) Hedged(d) 1,740.00 - (1,740.00) - CHF - CHF - Class C EUR (Accumulation) Unhedged(d) 1,610,000.00 - (1,610,000.00) - EUR - EUR - Class C GBP (Accumulation) Hedged 1,408,789.01 679,023.89 (362,437.27) 1,725,375.63 GBP 11.0480 GBP 19,062,039 Class C US Dollar (Accumulation) Hedged(d) 1,750.00 - (1,750.00) - USD - USD -

As at 31 October 2017 Class B EUR (Income) Unhedged 1,570.00 18,428.34 - 19,998.34 EUR 10.8799 EUR 217,580 Class C EUR (Income) Unhedged 1,570.00 - - 1,570.00 EUR 10.8805 EUR 17,082 Class A EUR (Accumulation) Unhedged(c) - 1,400.00 - 1,400.00 EUR 10.0533 EUR 14,075 Class B CHF (Accumulation) Hedged 1,740.00 - - 1,740.00 CHF 11.1877 CHF 19,467 Class B EUR (Accumulation) Unhedged 1,610,000.00 30,271.08 - 1,640,271.08 EUR 11.2804 EUR 18,502,914 Class B GBP (Accumulation) Hedged 498,014.15 332,575.09 (150,983.91) 679,605.33 GBP 11.3881 GBP 7,739,413 Class B SEK (Accumulation) Hedged 1,460.00 - - 1,460.00 SEK 112.2091 SEK 163,825 Class B US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 11.5353 USD 20,187 Class C CHF (Accumulation) Hedged 1,740.00 - - 1,740.00 CHF 11.2266 CHF 19,534 Class C EUR (Accumulation) Unhedged 1,610,000.00 - - 1,610,000.00 EUR 11.3198 EUR 18,224,878 Class C GBP (Accumulation) Hedged 1,027,598.23 554,595.70 (173,404.92) 1,408,789.01 GBP 11.4279 GBP 16,099,500 Class C US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 11.5743 USD 20,255

104 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

Global Equity Market Neutral Fund At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2019 Class B CHF (Accumulation) Hedged(q) 1,740.00 - (1,740.00) - CHF - CHF - Class B EUR (Accumulation) Hedged 813,439.00 - (53,932.00) 759,507.00 EUR 9.5255 EUR 7,234,690 Class B GBP (Accumulation) Unhedged 2,331,619.98 16,935.98 (48,025.72) 2,300,530.24 GBP 9.9114 GBP 22,801,443 Class B SEK (Accumulation) Hedged(q) 1,460.00 - (1,460.00) - SEK - SEK - Class B US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 10.3274 USD 18,073 Class C CHF (Accumulation) Hedged(q) 1,740.00 - (1,740.00) - CHF - CHF - Class C EUR (Accumulation) Hedged 2,419,942.00 932,193.00 (329,569.00) 3,022,566.00 EUR 9.6674 EUR 29,220,252 Class C GBP (Accumulation) Unhedged 6,425,855.84 725,715.12 (3,536,230.47) 3,615,340.49 GBP 10.0195 GBP 36,223,760 Class C US Dollar (Accumulation) Hedged 1,750.00 433,720.14 (76,793.28) 358,676.86 USD 10.4725 USD 3,756,253 Class P CHF (Accumulation) Hedged(q) 1,740.00 - (1,740.00) - CHF - CHF - Class P EUR (Accumulation) Hedged(q) 1,570.00 - (1,570.00) - EUR - EUR - Class P GBP (Accumulation) Unhedged(q) 1,200.00 - (1,200.00) - GBP - GBP - Class P US Dollar (Accumulation) Hedged(q) 1,750.00 - (1,750.00) - USD - USD -

As at 31 October 2018 Class B CHF (Accumulation) Hedged 1,740.00 - - 1,740.00 CHF 9.4222 CHF 16,395 Class B EUR (Accumulation) Hedged 803,394.00 10,045.00 - 813,439.00 EUR 9.5475 EUR 7,766,287 Class B GBP (Accumulation) Unhedged 2,364,595.42 110,590.59 (143,566.03) 2,331,619.98 GBP 9.7887 GBP 22,823,539 Class B SEK (Accumulation) Hedged 1,460.00 - - 1,460.00 SEK 94.9154 SEK 138,577 Class B US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 10.0049 USD 17,509 Class C CHF (Accumulation) Hedged 1,740.00 - - 1,740.00 CHF 9.5010 CHF 16,532 Class C EUR (Accumulation) Hedged 1,570.00 2,561,876.00 (143,504.00) 2,419,942.00 EUR 9.6292 EUR 23,302,041 Class C GBP (Accumulation) Unhedged 5,319,031.19 3,071,311.14 (1,964,486.49) 6,425,855.84 GBP 9.8587 GBP 63,350,474 Class C US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 10.0867 USD 17,652 Class P CHF (Accumulation) Hedged 1,740.00 - - 1,740.00 CHF 9.4535 CHF 16,449 Class P EUR (Accumulation) Hedged 1,570.00 - - 1,570.00 EUR 9.5424 EUR 14,982 Class P GBP (Accumulation) Unhedged 1,200.00 - - 1,200.00 GBP 9.7709 GBP 11,725 Class P US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 10.0091 USD 17,516

105 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

Global Equity Market Neutral Fund (continued) At beginning of At end of Net Asset Value financial year Issued Redeemed financial year per share Net Asset Value As at 31 October 2017 Class B CHF (Accumulation) Hedged 1,740.00 - - 1,740.00 CHF 10.1276 CHF 17,622 Class B EUR (Accumulation) Hedged 1,570.00 932,734.00 (130,910.00) 803,394.00 EUR 10.1897 EUR 8,186,344 Class B GBP (Accumulation) Unhedged 2,500,000.00 58,285.21 (193,689.79) 2,364,595.42 GBP 10.3176 GBP 24,396,950 Class B SEK (Accumulation) Hedged 1,460.00 - - 1,460.00 SEK 101.6747 SEK 148,445 Class B US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 10.4323 USD 18,257 Class C CHF (Accumulation) Hedged 1,740.00 - - 1,740.00 CHF 10.1553 CHF 17,670 Class C EUR (Accumulation) Hedged 1,570.00 200,000.00 (200,000.00) 1,570.00 EUR 10.2138 EUR 16,036 Class C GBP (Accumulation) Unhedged 3,816,322.34 1,664,757.73 (162,048.88) 5,319,031.19 GBP 10.3439 GBP 55,019,527 Class C US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 10.4568 USD 18,299 Class P CHF (Accumulation) Hedged 1,740.00 - - 1,740.00 CHF 10.1350 CHF 17,635 Class P EUR (Accumulation) Hedged 1,570.00 - - 1,570.00 EUR 10.1921 EUR 16,002 Class P GBP (Accumulation) Unhedged 1,200.00 - - 1,200.00 GBP 10.3079 GBP 12,369 Class P US Dollar (Accumulation) Hedged 1,750.00 - - 1,750.00 USD 10.4104 USD 18,218

Short Dated High Yield Global Bond Fund(1)

As at 31 October 2019 Class A EUR (Income) Hedged 18,282.60 18,440.49 (27,571.60) 9,151.49 EUR 9.7068 EUR 88,832 Class B EUR (Income) Hedged 73,068.52 7,400.44 (65,762.38) 14,706.58 EUR 9.3944 EUR 138,160 Class B GBP (Income) Hedged 562,213.44 54,236.17 (584,550.62) 31,898.99 GBP 9.6449 GBP 307,664 Class B US Dollar (Income) Unhedged 1,000.00 5,094.47 (5,061.98) 1,032.49 USD 10.0542 USD 10,381 Class C EUR (Income) Hedged 65,517.07 1,062.00 (30,563.27) 36,015.80 EUR 9.4870 EUR 341,683 Class C GBP (Income) Hedged 10,091,570.03 606,615.76 (7,677,933.76) 3,020,252.03 GBP 9.7391 GBP 29,414,648 Class C US Dollar (Income) Unhedged 2,550,413.37 81,112.53 (2,532,900.83) 98,625.07 USD 10.1166 USD 997,747 Class A EUR (Accumulation) Hedged 1,350.00 - - 1,350.00 EUR 10.2575 EUR 13,848 Class B EUR (Accumulation) Hedged(q) 1,000.00 - (1,000.00) - EUR - EUR - Class B GBP (Accumulation) Hedged 119,143.44 142,241.91 (70,861.89) 190,523.46 GBP 10.5618 GBP 2,012,271 Class B US Dollar (Accumulation) Unhedged 24,344.80 - (4,836.04) 19,508.76 USD 10.9923 USD 214,447 Class C EUR (Accumulation) Hedged 67,643.80 - (38,500.76) 29,143.04 EUR 10.3744 EUR 302,341 Class C GBP (Accumulation) Hedged 2,845,363.71 224,450.45 (2,789,589.15) 280,225.01 GBP 10.6367 GBP 2,980,671 Class C US Dollar (Accumulation) Unhedged 2,716,614.44 182,122.06 (2,696,447.80) 202,288.70 USD 11.0589 USD 2,237,098

106 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

Short Dated High Yield Global Bond Fund(1) At beginning of At end of Net Asset Value (continued) financial year Issued Redeemed financial year per share Net Asset Value

As at 31 October 2018 Class A EUR (Income) Hedged(k) - 18,282.60 - 18,282.60 EUR 9.8345 EUR 179,801 Class B EUR (Income) Hedged 1,000.00 72,068.52 - 73,068.52 EUR 9.4756 EUR 692,372 Class B GBP (Income) Hedged 1,000.00 590,391.55 (29,178.11) 562,213.44 GBP 9.6095 GBP 5,402,645 Class B US Dollar (Income) Unhedged 1,000.00 - - 1,000.00 USD 9.8126 USD 9,813 Class C EUR (Income) Hedged 32,090.00 37,522.07 (4,095.00) 65,517.07 EUR 9.5255 EUR 624,085 Class C GBP (Income) Hedged 3,130,821.03 7,596,981.85 (636,232.85) 10,091,570.03 GBP 9.6553 GBP 97,438,082 Class C US Dollar (Income) Unhedged 390,929.15 2,247,844.72 (88,360.50) 2,550,413.37 USD 9.8482 USD 25,117,020 Class A EUR (Accumulation) Hedged(k) - 1,350.00 - 1,350.00 EUR 9.9383 EUR 13,417 Class B EUR (Accumulation) Hedged 1,000.00 - - 1,000.00 EUR 9.9120 EUR 9,912 Class B GBP (Accumulation) Hedged 41,585.48 197,780.91 (120,222.95) 119,143.44 GBP 10.0600 GBP 1,198,588 Class B US Dollar (Accumulation) Unhedged 1,000.00 23,344.80 - 24,344.80 USD 10.2709 USD 250,043 Class C EUR (Accumulation) Hedged 31,541.28 37,102.52 (1,000.00) 67,643.80 EUR 9.9719 EUR 674,542 Class C GBP (Accumulation) Hedged 1,911,232.39 1,228,075.46 (293,944.14) 2,845,363.71 GBP 10.1033 GBP 28,747,662 Class C US Dollar (Accumulation) Unhedged 1,943,126.81 1,033,648.00 (260,160.37) 2,716,614.44 USD 10.3072 USD 28,000,798

As at 31 October 2017 Class B EUR (Income) Hedged - 1,000.00 - 1,000.00 EUR 9.9620 EUR 9,962 Class B GBP (Income) Hedged - 1,000.00 - 1,000.00 GBP 9.9870 GBP 9,987 Class B US Dollar (Income) Unhedged - 1,000.00 - 1,000.00 USD 10.0360 USD 10,036 Class C EUR (Income) Hedged - 32,090.00 - 32,090.00 EUR 9.9781 EUR 320,197 Class C GBP (Income) Hedged - 3,144,796.94 (13,975.91) 3,130,821.03 GBP 10.0048 GBP 31,323,238 Class C US Dollar (Income) Unhedged - 391,452.18 (523.03) 390,929.15 USD 10.0460 USD 3,927,274 Class B EUR (Accumulation) Hedged - 1,000.00 - 1,000.00 EUR 10.0700 EUR 10,070 Class B GBP (Accumulation) Hedged - 44,507.87 (2,922.39) 41,585.48 GBP 10.0966 GBP 419,872 Class B US Dollar (Accumulation) Unhedged - 1,000.00 - 1,000.00 USD 10.1440 USD 10,144 Class C EUR (Accumulation) Hedged - 31,541.28 - 31,541.28 EUR 10.0900 EUR 318,252 Class C GBP (Accumulation) Hedged - 1,951,218.81 (39,986.42) 1,911,232.39 GBP 10.1107 GBP 19,323,897 Class C US Dollar (Accumulation) Unhedged - 2,004,384.43 (61,257.62) 1,943,126.81 USD 10.1542 USD 19,730,898

107 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

(1) Fund launched on 14 June 2017. (2) Fund closed on 2 February 2018. (3) Fund closed on 8 May 2018. (4) Fund closed on 2 July 2018. (5) Fund closed on 13 February 2019. (6) Fund closed on 30 October 2019. (a) Share Class launched on 24 March 2017. (b) Share Class launched on 12 October 2017. (c) Share Class launched on 22 September 2017. (d) Share Class closed on 1 December 2017. (e) Share Class launched on 16 March 2018. (f) Share Class launched on 12 April 2018. (g) Share Class launched on 27 April 2018. (h) Share Class launched on 2 May 2018. (i) Share Class launched on 3 July 2018. (j) Share Class closed on 5 July 2018. (k) Share Class launched on 20 July 2018. (l) Share Class closed on 25 October 2018. (m) Share Class launched on 19 December 2018. (n) Share Class fully redeemed on 1 December 2017 and re-launched on 19 December 2018. (o) Share Class closed on 21 December 2018. (p) Share Class launched on 2 April 2019. (q) Share Class closed on 12 April 2019. (r) Share Class closed on 15 March 2019 and re-launched on 26 April 2019. (s) Share Class closed on 21 June 2019. (t) Share Class closed on 25 July 2019. (u) Share Class closed on 30 September 2019.

108 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019 Notes to the Financial Statements (continued) 4. Share Capital (continued)

Reconciliation of Net assets attributable to redeemable participating shareholders to Dealing NAV

The official NAV valuation ("Dealing NAV") is at 12pm GMT on 31 October 2019, in accordance with the Prospectus. The investments in the financial statements are adjusted to reflect the valuation as at close of business 31 October 2019. In the prior year 31 October 2018, the investments in the financial statements were adjusted on Kames Global Sustainable Equity Fund and Kames Global Equity Market Neutral Fund only.

31 October 2019 Strategic Investment High Yield Absolute Global Bond Grade Global Global Bond Return Bond Fund Bond Fund Fund Fund USD USD USD GBP Net assets attributable to redeemable participating shareholders as at 31 October 2019 325,314,556 144,949,635 139,384,227 555,206,061

Valuation Adjustment to dealing NAV (214,011) (68,848) 31,474 (4,002)

Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2019 325,100,545 144,880,787 139,415,701 555,202,059

Global Global Global Global Equity Diversified Diversified Sustainable Income Fund Income Fund Growth Fund Equity Fund USD EUR EUR EUR Net assets attributable to redeemable participating shareholders as at 31 October 2019 493,829,858 171,632,428 57,241,901 113,832,835

Valuation Adjustment to dealing NAV 961,220 22,019 25,331 (60,062)

Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2019 494,791,078 171,654,447 57,267,232 113,772,773

Short Dated Global Equity High Yield Market Neutral Global Bond Fund Fund GBP USD Net assets attributable to redeemable participating shareholders as at 31 October 2019 93,300,487 49,435,996

Valuation Adjustment to dealing NAV (235,191) (3,740)

Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2019 93,065,296 49,432,256

31 October 2018 Global Global Equity Sustainable Market Neutral Equity Fund Fund EUR GBP Net assets attributable to redeemable participating shareholders as at 31 October 2018 77,257,083 113,884,564

Valuation Adjustment to dealing NAV (1,003,895) (425,573)

Net assets attributable to redeemable participating shareholders at dealing NAV as at 31 October 2018 76,253,188 113,458,991

109 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

5. Taxation

Under current Irish law and practice, the Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended (the “TCA”). On that basis, it is not chargeable to Irish tax on its income or gains.

However, Irish tax can arise on the happening of a “chargeable event” in the Company. A chargeable event includes any distribution payments to Shareholders or any encashment, redemption, cancellation, transfer or deemed disposal of Shares for Irish tax purposes, arising as a result of holding shares in the Company for a period of eight years or more, or the appropriation or cancellation of Shares of a Shareholder by the Company for the purposes of meeting the amount of tax payable on a gain arising on a transfer.

No Irish tax will arise in respect of chargeable events in respect of a Shareholder who is an Exempt Irish Investor (as defined in Section 739D TCA) or in respect of a Shareholder who is neither Irish resident nor ordinarily resident in Ireland at the time of the chargeable event provided that a relevant declaration is in place (in accordance with Schedule 2B of the TCA) and the Company is not in possession of any information which would reasonably suggest that the information contained therein is no longer materially correct.

Dividends, interest and capital gains (if any) received on investments made by the Company may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Company or its Shareholders. 6. Commitments and Contingent Liabilities There are no commitments or contingent liabilities as at 31 October 2019 (31 October 2018: None).

7. Soft Commission Arrangements

There were no soft commission arrangements in place during the financial year (31 October 2018: Nil).

8. Exchange Rates

The financial statements are prepared in USD, EUR and GBP. Exchange rates used to translate assets and liabilities in other currencies to USD, EUR or GBP at 31 October 2019 were as follows:

AUD/USD 1:1.45064 IDR/EUR 1:15,649.81578 CAD/USD 1:1.31705 INR/EUR 1:79.07653 CHF/USD 1:0.98735 JPY/EUR 1:120.60992 EUR/USD 1:0.89694 KRW/EUR 1:1,297.13441 GBP/USD 1:0.77163 MXN/EUR 1:21.34434 HKD/USD 1:7.83589 NOK/EUR 1:10.27927 JPY/USD 1:108.18003 NZD/EUR 1:1.73877 NZD/USD 1:1.55958 PHP/EUR 1:56.57668 SEK/USD 1:9.66277 PLN/EUR 1:4.26087 SGD/USD 1:1.36115 SEK/EUR 1:10.77302 THB/USD 1:30.19506 SGD/EUR 1:1.51755 TWD/USD 1:30.44047 THB/EUR 1:33.66447 AUD/EUR 1:1.61732 TRY/EUR 1:6.38198 BRL/EUR 1:4.42893 TWD/EUR 1:33.93308 CAD/EUR 1:1.46838 USD/EUR 1:1.11490 CHF/EUR 1:1.10080 ZAR/EUR 1:16.90908 DKK/EUR 1:7.47047 AUD/GBP 1:1.87996 GBP/EUR 1:0.86030 BRL/GBP 1:5.14815 HKD/EUR 1:8.73623 CAD/GBP 1:1.70683

110 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

8. Exchange Rates (continued)

The financial statements are prepared in USD, EUR and GBP. Exchange rates used to translate assets and liabilities in other currencies to USD, EUR or GBP at 31 October 2019 were as follows (continued):

CHF/GBP 1:1.27956 NZD/GBP 1:2.02113 DKK/GBP 1:8.68361 PLN/GBP 1:4.95280 EUR/GBP 1:1.16239 SEK/GBP 1:12.52247 HKD/GBP 1:10.15492 SGD/GBP 1:1.76398 JPY/GBP 1:140.19591 TWD/GBP 1:39.44933 KRW/GBP 1:1,507.77769 USD/GBP 1:1.29595

Exchange rates used to translate assets and liabilities in other currencies to USD, GBP or EUR at 31 October 2018 were as follows:

AUD/USD 1:1.40736 THB/USD 1:33.14990 CAD/USD 1:1.31320 TRY/USD 1:5.60330 CHF/USD 1:1.00515 TWD/USD 1:30.94347 EUR/USD 1:0.88141 ZAR/USD 1:14.73253 GBP/USD 1:0.78284 AUD/EUR 1:1.59672 HKD/USD 1:7.84486 BRL/EUR 1:4.18740 JPY/USD 1:113.10503 CAD/EUR 1:1.48989 MXN/USD 1:20.25100 CHF/EUR 1:1.14039 NZD/USD 1:1.52718 DKK/EUR 1:7.46135 SEK/USD 1:9.16842 GBP/EUR 1:0.88817 SGD/USD 1:1.38485 HKD/EUR 1:8.90039 HUF/EUR 1:324.70543 ZAR/EUR 1:16.71479 IDR/EUR 1:17,247.64366 AUD/GBP 1:1.79776 INR/EUR 1:83.89160 CAD/GBP 1:1.67748 JPY/EUR 1:128.32331 CHF/GBP 1:1.28398 KRW/EUR 1:1,292.87554 EUR/GBP 1:1.12591 MXN/EUR 1:22.81144 HKD/GBP 1:10.02102 NOK/EUR 1:9.55604 JPY/GBP 1:144.48036 NZD/EUR 1:1.73267 KRW/GBP 1:1,455.66014 PHP/EUR 1:60.70358 NOK/GBP 1:10.75923 PLN/EUR 1:4.33244 NZD/GBP 1:1.95082 SEK/EUR 1:10.40204 SEK/GBP 1:11.71174 SGD/EUR 1:1.57118 SGD/GBP 1:1.76901 THB/EUR 1:37.61022 THB/GBP 1:42.34569 TRY/EUR 1:6.34880 TWD/GBP 1:39.52718 TWD/EUR 1:35.10691 USD/GBP 1:1.27740 USD/EUR 1:1.13455

111 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued) 9. Distribution Policy It is the current intention of the Directors to declare dividends for the Income Share Classes on the Strategic Global Bond Fund, the Investment Grade Global Bond Fund, the High Yield Global Bond Fund, the Absolute Return Bond Fund, the Global Equity Income Fund, the Absolute Return Bond Global Fund, the Global Sustainable Equity Fund, the Global Diversified Growth Fund and Short Dated High Yield Global Bond Fund on a quarterly basis on the last Business Days of July, October, January and April.

It is the current intention of the Directors to declare dividends for the Income Share Classes on the Global Diversified Income Fund on a monthly basis on the last Business Day of each month. Dividends will be declared out of the accumulated revenue (consisting of all revenue accrued including interest and dividends) less any applicable expenses. This Fund will operate a dividend calculation policy known as “smoothing” whereby income earned in an interim accounting period need not be distributed immediately and may instead be retained. Any residual income will be distributed at the Fund’s annual income allocation date, 31 October of each year. During the financial year to 31 October 2019 dividends declared were as follows:

Strategic Investment High Yield Absolute Global Global Bond Grade Global Global Bond Return Equity Fund* Bond Fund Fund Bond Fund Income Fund USD USD USD GBP USD Distribution 31 January 2019 828,574 561,927 1,046,203 1,255,057 256,365 30 April 2019 344,888 467,724 904,960 671,432 553,011 31 July 2019 209,077 206,250 872,038 582,811 499,687 31 October 2019 194,335 152,182 867,517 759,420 408,983 1,576,874 1,388,083 3,690,718 3,268,720 1,718,046

Absolute Global Global Short Dated Return Bond Sustainable Diversified High Yield Global Equity Growth Global Bond Fund(1) Fund* Fund** Fund GBP EUR EUR USD Distribution 31 January 2019 6,670 - 1,421 1,124,597 30 April 2019 4,575 2 1,205 980,497 31 July 2019 3,007 26 867 564,854 31 October 2019 - 9 98 432,807 14,252 37 3,591 3,102,755 (1) Kames Absolute Return Bond Global Fund closed on 30 October 2019. Global Diversified Income Fund*** EUR Monthly Distribution 30 November 2018 273,255 31 December 2018 273,627 31 January 2019 310,608 28 February 2019 404,491 29 March 2019 405,299 30 April 2019 410,180 31 May 2019 454,745 28 June 2019 471,011 31 July 2019 467,312 30 August 2019 492,749 30 September 2019 507,364 31 October 2019 686,822 5,157,463

112 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

9. Distribution Policy (continued)

As the Absolute Return Bond Constrained Fund and the Global Equity Market Neutral Fund hold only Accumulation Share Classes; no dividends were declared for these Funds.

* The Global Sustainable Equity Fund launched Share Class A EUR (Accumulation) and Class A EUR (Income) on 2 April 2019.

** The Global Diversified Growth Fund launched Share Class A CHF (Accumulation) Hedged and Class B CHF (Accumulation) Hedged on 19 December 2018.

*** The Global Diversified Income Fund launched Share Class A CHF (Income) Hedged on 19 December 2018.

During the financial year to 31 October 2018 dividends declared were as follows:

Strategic Investment High Yield Absolute Global Global Bond Grade Global Global Bond Return Equity Fund* Bond Fund Fund*** Bond Fund Income Fund USD USD USD GBP USD Distribution 31 January 2018 931,372 753,620 3,344,556 2,346,220 276,745 30 April 2018 955,884 651,615 2,283,919 2,412,912 629,509 31 July 2018 925,949 772,099 1,632,479 2,423,401 582,149 31 October 2018 1,045,757 933,867 1,450,177 2,228,676 355,019 3,858,962 3,111,201 8,711,131 9,411,209 1,843,422

Absolute Global Global Short Dated Return Bond Sustainable Diversified High Yield Global Equity Growth Global Fund Fund Fund Bond Fund GBP EUR EUR USD Distribution 31 January 2018 20,254 - 1,233 536,940 30 April 2018 13,435 - 1,482 902,417 31 July 2018 11,247 23 1,851 1,290,920 31 October 2018 7,801 2 1,273 1,577,154 52,737 25 5,839 4,307,431

Global Diversified Income Fund** EUR Monthly Distribution 30 November 2017 216,272 29 December 2017 231,083 31 January 2018 244,868 28 February 2018 288,466 29 March 2018 365,153 30 April 2018 379,589 31 May 2018 393,390 29 June 2018 405,326 31 July 2018 406,426 31 August 2018 421,584 28 September 2018 445,706 31 October 2018 667,481 4,465,344

113 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

9. Distribution Policy (continued)

As the Absolute Return Bond Constrained Fund, the Emerging Market Bond Opportunities Fund and the Global Equity Market Neutral Fund hold only Accumulation Share Classes; no dividends were declared for these Funds.

* The Strategic Global Bond Fund launched Share Class J US Dollar (Accumulation) on 16 March 2018 and Share Class J JPY (Accumulation) Hedged on 27 April 2018.

** The Global Diversified Income Fund launched Share Class C US Dollar (Accumulation) Hedged on 2 May 2018.

*** The High Yield Global Bond Fund launched Share Class S EUR (Income) Hedged and Kames Global Equity Income Fund launched Share Class S EUR (Income) on 3 July 2018.

**** The Short Dated High Yield Global Bond Fund launched Share Class A EUR (Income) Hedged and Share Class A EUR (Accumulation) Hedged on 20 July 2018.

10. Cash and Cash Equivalents and Margin Cash/Bank Overdrafts All monies were held with Citibank, N.A. London in the name of Citibank International Plc (Ireland Branch) (31 October 2018: Citibank, N.A. London) as Depositary with the exception of margin cash which is held with Deutsche Bank AG, Goldman Sachs, Merrill Lynch and UBS Limited (31 October 2018: UBS Limited, Deutsche Bank AG, Merrill Lynch and Goldman Sachs) and collateral cash which is held with Barclays Bank Plc, BNP Paribas (London Branch), Citigroup Global Markets Limited, Deutsche Bank AG, Goldman Sachs International, J.P. Morgan Securities Plc and Morgan Stanley (31 October 2018: Barclays Bank Plc, Deutsche Bank AG, BNP Paribas (London Branch), J.P. Morgan Securities Plc, Merrill Lynch, Goldman Sachs and Citigroup Global Markets Limited). Please refer to Note 16 for collateral held at each counterparty. Please refer to Note 1(e) for more information on bank overdrafts.

The net margin cash exposure per counterparty for the relevant Funds as at 31 October 2019 is shown in the tables below:

Strategic Investment Absolute Global Bond Grade Global Return Bond Fund Bond Fund Fund Counterparty USD USD USD Merrill Lynch International Bank Limited - - 1,254,391 UBS Limited 1,425,562 1,103,494 1,458,908 Total 1,425,562 1,103,494 2,713,299

Absolute Global Global Return Bond Diversified Diversified Global Fund(1) Income Fund Growth Fund Counterparty EUR EUR EUR UBS Limited 27 27,540 141,445 Total 27 27,540 141,445

Global Equity Market Neutral Fund Counterparty GBP Goldman Sachs International 329,727 Merrill Lynch International Bank Limited 365,573 UBS Limited 381,879 Total 1,077,179

(1) Kames Absolute Return Bond Global Fund closed on 30 October 2019.

114 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

10. Cash and Cash Equivalents and Margin Cash/Bank Overdrafts (continued)

The margin cash exposure per counterparty for the relevant Funds as at 31 October 2018 is shown in the tables below:

Strategic Investment Absolute Global Bond Grade Global Return Bond Fund Bond Fund Fund Counterparty USD USD USD Merrill Lynch International Bank Limited - - 10,534,965 UBS Limited 5,673,507 1,139,390 15,385,759 Total 5,673,507 1,139,390 25,920,724

Equity Absolute Absolute Market Neutral Return Bond Return Bond Fund Global Fund Constrained Fund Counterparty GBP GBP EUR Merrill Lynch International Bank Limited - 463,322 313,143 UBS Limited 4 1,088,710 518,544 Total 4 1,552,032 831,687

Global Global Global Equity Diversified Diversified Market Neutral Income Fund Growth Fund Fund Counterparty EUR EUR GBP Deutsche Bank AG - - 679,128 Goldman Sachs International - - (676,949) Merrill Lynch International Bank Limited - - (400,001) UBS Limited 378,241 531,002 - Total 378,241 531,002 (397,822)

Term Deposits are disclosed within Cash and Cash Equivalents and Collateral Cash in the Statement of Financial Position. Term Deposits were held with following counterparties at 31 October 2019:

Strategic Investment Absolute Global Bond Grade Global Return Bond Fund Bond Fund Fund Counterparty USD USD GBP BNP Paribas - 7,036,642 - Credit Agricole - - 7,230,989 Lloyds Bank Plc 6,400,545 3,327,729 - National Bank of Abu Dhabi - - 19,513,031 Standard Chartered 3,094,775 - - Total 9,495,320 10,364,371 26,744,020

Global Global Diversified Equity Global Equity Growth Market Neutral Income Fund Fund Fund Counterparty USD EUR GBP Credit Agricole - 1,713,611 1,525,880 Lloyds Bank Plc 11,161,797 1,420,031 - Mizuho Bank - - 17,555,055 Sumitomo Mitsui Banking Corp - - 18,509,720 Sumitomo Mitsui Trust Bank Limited - - 18,213,882 Total 11,161,797 3,133,642 55,804,537

115 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

10. Cash and Cash Equivalents and Margin Cash/Bank Overdrafts (continued)

Term Deposits were held with following counterparties at 31 October 2019 (continued):

Short Dated High Yield Global Bond Fund Counterparty USD Standard Chartered 3,062,000 Total 3,062,000 Term Deposits were held with following counterparties at 31 October 2018: Investment Absolute Grade Global Return Bond Global Equity Bond Fund Fund Income Fund Counterparty USD GBP USD BNP Paribas 9,552,881 47,797,931 - Credit Agricole - 62,069,137 - Lloyds Bank Plc - - 5,888,851 Total 9,552,881 109,867,068 5,888,851

Emerging Global Absolute Market Bond Diversified Return Bond Opportunities Growth Global Fund Fund Fund Counterparty GBP USD EUR Credit Agricole 4,520,372 1,964,395 1,799,700 Lloyds Bank Plc - 3,130,665 - Standard Chartered 1,895,427 - - Total 6,415,799 5,095,060 1,799,700

Short Dated Global Equity High Yield Market Global Bond Neutral Fund Fund Counterparty GBP USD BNP Paribas 17,557,037 - Standard Chartered - 1,977,786 Sumitomo Mitsui Banking Corp 21,722,620 - Sumitomo Mitsui Trust Bank Limited 21,991,741 - Total 61,271,398 1,977,786

116 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued) 11. Fees

The Company may pay out of the assets of each Fund the fees and expenses payable to the Investment Manager, the Depositary, the Administrator and the Distributor, the fees and expenses of sub-depositaries which will be at normal commercial rates, the fees and expenses of the Directors, any other miscellaneous fees such as, all taxes, company secretarial fees, any costs incurred in respect of meetings of Shareholders and marketing and distribution costs. Such fees, duties and charges will be charged to each Fund in respect of which they were incurred or, where an expense is not considered by the Directors to be attributable to any one Fund, the expense will be allocated by the Directors with the approval of the Depositary, in such manner and on such basis as the Directors in their discretion deem fair and equitable.

In the case of any fees or expenses of a regular or recurring nature, such as audit fees, the Directors may calculate such fees and expenses on an estimated figure for yearly or other periods in advance and accrue the same in equal proportions over any period.

Administration Fee The Investment Manager pays Administration fees on behalf of the Funds. These fees are paid directly by the Investment Manager to the Administrator, Citibank Europe Plc. The Investment Manager is invoiced directly and pays these fees out of the Investment Management fee. The fee payable to the Administrator for the services provided shall not exceed 1% per annum (plus VAT, if any) of the net asset value of the Fund. During the financial year ended 31 October 2019 the fees incurred amounted to USD 1,728,688 (31 October 2018: USD 2,369,769), this amount is included in the Operating Expenses figure in the Statement of Comprehensive Income. At the financial year end USD 128,513 was payable (31 October 2018: USD 188,296), this amount is included in the Investment Management fee payable figure on the Statement of Financial Position. Transfer Agency Fee The Investment Manager pays Transfer Agency fees on behalf of the Absolute Return Bond Constrained Fund and the Short Dated High Yield Global Bond Fund as these Funds operate a different charging structure. The Transfer Agency fee is 0.90bps of the Net Asset Value for the Global Equity Market Neutral Fund. The Transfer Agency fee is 0.95bps of the Net Asset Value of the Strategic Global Bond Fund, the Investment Grade Global Bond Fund, the High Yield Global Bond Fund, the Global Equity Income Fund, the Global Diversified Income Fund, the Global Sustainable Equity Fund and the Global Diversified Growth Fund. The Transfer Agency fee is 1bps of the Net Asset Value of the Emerging Market Bond Opportunities Fund and 1.14bps of the Net Asset Value of the Absolute Return Bond Fund and the Absolute Return Bond Global Fund. Investment Manager Fee The fee payable to the Investment Manager (excluding the Performance Fee) will be no more than 1% per annum of the Net Asset Value of the Strategic Global Bond Fund, the Investment Grade Global Bond Fund, the High Yield Global Bond Fund, the Absolute Return Bond Fund, the Global Equity Income Fund, the Absolute Return Bond Global Fund, the Absolute Return Bond Constrained Fund, the Emerging Market Bond Opportunities Fund and the Short Dated High Yield Global Bond Fund including both Income shares and Accumulation shares. The fee payable to the Investment Manager (excluding the Performance Fee) will be no more than 1.5% per annum of the Net Asset Value of the Equity Market Neutral Plus Fund, the Global Sustainable Equity Fund and the Global Equity Market Neutral Fund including both Income shares and Accumulation shares. The fee payable to the Investment Manager (excluding the Performance Fee) will be no more than 2% per annum of the Net Asset Value of the Global Diversified Income Fund and the Global Diversified Growth Fund including both Income shares and Accumulation shares. Such fees shall be calculated daily and payable monthly in arrears. The Investment Manager shall also be entitled to be reimbursed out of the assets of each Fund for reasonable out-of pocket expenses incurred by the Investment Manager in the performance of its duties. The Investment Manager Fee payable are presented in the Statement of Financial Position. The fees incurred are included in the Operating Expenses figure in the Statement of Comprehensive Income.

117 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued) 11. Fees (continued)

Investment Manager Fee (continued) The following are the Investment Management Fees for the financial years ended 31 October 2019 and 31 October 2018: 31 October 2019 31 October 2018 CCY Strategic Global Bond Fund USD 2,598,422 4,448,561 Investment Grade Global Bond Fund USD 1,037,272 1,478,473 High Yield Global Bond Fund USD 1,077,383 2,075,364 Absolute Return Bond Fund GBP 4,616,871 10,611,844 Global Equity Income Fund USD 3,309,874 4,245,396 Active Long Dated Bond Fund(2) GBP - 397,031 Equity Market Neutral Plus Fund(1) GBP - 8,248 Equity Market Neutral Fund(3) GBP 472,681 472,681 Absolute Return Bond Global Fund(5) GBP 226,917 421,037 Absolute Return Bond Constrained Fund(5) EUR 104,904 160,197 Emerging Market Bond Opportunities Fund(4) USD 47,460 428,774 Global Diversified Income Fund EUR 793,573 781,547 Global Sustainable Equity Fund EUR 510,820 426,084 Global Diversified Growth Fund EUR 284,092 302,433 Global Equity Market Neutral Fund GBP 626,085 717,749 Short Dated High Yield Bond Fund USD 327,925 425,382 Depositary and Trustee Fees The fee payable to the Depositary, for custodial services provided to the Company, will not exceed 0.5% per annum of the Net Asset Value of each Fund. The Depositary will also be entitled to receive any out-of-pocket expenses incurred (including any transaction charges or sub-Depositary fees at normal commercial rates).

The Trustee Fees include safekeeping fees which are transaction based and are payable to the Depositary. For all Funds the Depositary will be entitled to a minimum fee of £3,000 per annum.

The Depositary and Trustee Fees payable are presented in the Statement of Financial Position. The fees incurred are included in the Operating Expenses figure in the Statement of Comprehensive Income.

The following are the Depositary and Trustee Fees for the financial years ended 31 October 2019 and 31 October 2018: Depositary Fee Trustee Fee 31 October 31 October 31 October 31 October 2019 2018 2019 2018 CCY Strategic Global Bond Fund USD 38,255 36,289 63,030 99,497 Investment Grade Global Bond Fund USD - 10,128 46,852 - High Yield Global Bond Fund USD 17,928 16,405 34,833 57,936 Absolute Return Bond Fund GBP 91,655 97,680 136,583 240,053 Global Equity Income Fund USD 52,910 55,303 68,932 88,582 Active Long Dated Bond Fund(2) GBP - 2,821 - 10,258 Equity Market Neutral Fund(3) GBP 474 474 11,787 11,787 Absolute Return Bond Global Fund(5) GBP 2,105 6,007 - - Emerging Market Bond Opportunities Fund(4) USD - 4,636 - 22,745 Global Diversified Income Fund EUR 14,287 14,021 36,166 36,898 Global Sustainable Equity Fund EUR 6,263 6,570 24,149 17,146 Global Diversified Growth Fund EUR 6,201 6,006 15,607 17,928 Global Equity Market Neutral Fund GBP 4,332 5,971 23,587 27,944

118 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

11. Fees (continued)

Performance Fee In addition to the Investment Manager Fees, a Performance Fee is payable to the Investment Manager of the Global Equity Market Neutral Fund in certain circumstances, as set out below. The Investment Manager may agree at its discretion to waive the Performance Fee or a portion of the Performance Fee with respect to certain Shareholders' investment in the Fund. Any such waiver or reduction will not entitle other Shareholders to a similar waiver. The Performance fee shall be payable annually in arrears.

High Water Mark is a measure used to ensure that a Performance Fee is only charged when there has been an increase in value over the Performance Period. For the Fund, the High Water Mark is the Net Asset Value per Share when a Performance Fee last crystallised or, if higher, the Initial Issue Price.

Hurdle Price is one of the prices which has to be exceeded (the other being the High Water Mark) before a Performance Fee will accrue. For the Fund, the Hurdle Price at the start of a Performance Period is equal to the High Water Mark. The Hurdle Price on each subsequent day of that Performance Period is calculated on a cumulative basis by multiplying the previous day’s Hurdle Price by one plus the relevant Hurdle Rate.

Hurdle Rate is the relevant cash rate of return applicable in respect of the relevant share class (as set out in the following table) on each day during the Performance Period, divided by 365 (or 366 in a leap year). The Investment Manager may amend the relevant cash rate of return upon 60 business days’ written notice to Shareholders. For the purpose of the Hurdle Rate EURIBOR is the Euro Interbank Offered Rate, LIBOR is the London Interbank Offered Rate, STIBOR is the Stockholm Interbank Offered Rate, CHF LIBOR is the Swiss Franc Interbank Offer Rate, NIBOR is the Norwegian Interbank Offered Rate, CIBOR is the Copenhagen Interbank Offered Rate, REIBOR is the Reykjavik Interbank Offered Rate and TIBOR is the Tokyo Interbank Offered.

Global Equity Market Neutral Fund

Share Class Relevant cash rate of return Class P Euro (Income) Hedged* 1 month EURIBOR Class P Euro (Accumulation) Hedged* Class P GBP (Income)* 1 month GBP LIBOR Class P GBP (Accumulation)* Class P USD (Income) Hedged* 1 month USD LIBOR Class P USD (Accumulation) Hedged* Class P CHF (Income) Hedged* 1 month CHF LIBOR Class P CHF (Accumulation) Hedged* Class P SEK (Income) Hedged* 1 month STIBOR Class P SEK (Accumulation) Hedged* Class P NOK (Income) Hedged* 1 month NIBOR Class P NOK (Accumulation) Hedged* Class P DKK (Income) Hedged* 1 month CIBOR Class P DKK (Accumulation) Hedged* Class P ISK (Income) Hedged* 1 month REIBOR Class P ISK (Accumulation) Hedged* Class P JPY (Income) Hedged* 1 month TIBOR Class P JPY (Accumulation) Hedged*

Outperformance is the amount by which the Net Asset Value per Share exceeds the higher of the High Water Mark and the Hurdle Price.

*Share class is closed.

119 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

11. Fees (continued)

Performance Fee (continued) Performance Period is the period over which the Performance Fee is calculated and is the period ending at the valuation point on 31st October of each financial year. The first Performance Period for each Share Class will start on the launch date of that Share Class. The Performance Period shall be deemed to end on the date on which any Shares are redeemed.

The Performance Fee is calculated as 15% of the Outperformance. It is calculated and accrued daily by the Administrator, subject to verification by the Depositary. It is calculated at Share Class level (rather than, for example, at Fund level or individual Shareholder level).

Using a High Water Mark in the calculation of Outperformance ensures that Shareholders are only charged a Performance Fee once on any performance generated by the Fund. This means that Shares purchased when the Net Asset Value per Share is less than the High Water Mark will not be subject to any Performance Fee until the date on which the Net Asset Value per Share exceeds the High Water Mark (or, if higher, the Hurdle Price). Where the Net Asset Value per Share is below the High Water Mark at the end of a Performance Period, the High Water Mark will remain unchanged and will not be re-set downwards.

The Net Asset Value per Share and the Hurdle Rate may differ in different Share Classes. This means that the amount of Performance Fee payable in respect of a Performance Period may differ between Share Classes. The Hurdle Rate will vary from day to day over the Performance Period as the relevant cash rate of return (specified in the table above) changes.

The Performance Fee shall not fall below zero. There is no limit on the amount of the Performance Fee which may be payable in a Performance Period. Once a Performance Fee has been paid, it will not be repaid by the Investment Manager regardless of the future performance of the Fund.

The Performance Fee is based on net realised and net unrealised gains and losses at the end of each Performance Period. As a result, a Performance Fee may be charged on gains which are not subsequently realised. Once a Performance Fee has been paid, no refund will be made.

Where a Performance Fee is payable to the Investment Manager, it will already be reflected in the Net Asset Value per Share. This means that payment of the Performance Fee to the Investment Manager will not result in a sudden drop in the Net Asset Value per Share. The Performance Fee will be calculated as part of the Net Asset Value per Share, after any fees and expenses have been deducted but before any Dilution Adjustment has been made.

Where an investor holds Shares for part of a Performance Period, a Performance Fee will be payable by the relevant Share Class if there is Outperformance over the Performance Period even if, during the part of the Performance Period in which the investor owns Shares, there is no Outperformance. However, any Performance Fee payable will only accrue on those days on which there is Outperformance. Where Shares are cancelled during a Performance Period and, at the relevant valuation point, the Net Asset Value per Share is above the High Water Mark and the Hurdle Price, any Performance Fee accrued and reflected in the price of those Shares will become payable to the Investment Manager. Any such Performance Fee paid to the Investment Manager will not be repaid even if, at the end of the relevant Performance Period, a Performance Fee would not have been payable in respect of such Shares if they had continued to be held to the end of such Performance Period.

Kames Equity Market Neutral Plus Fund closed on 2 February 2018, Kames Active Long Dated Bond Fund closed on 8 May 2018, Kames Equity Market Neutral Fund closed on 2 July 2018, Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019 and Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

There was no Performance Fee for the financial year ended 31 October 2019 (31 October 2018: Nil).

120 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

11. Fees (continued) Distributor Fee In addition to the preliminary charge that may be paid to the Distributor, the fee payable to the Distributor for its services in the distribution of shares of the Fund shall not exceed 1% per annum of the Net Asset Value attributable to the Class A Shares. The Distributor may, at its sole discretion and in accordance with applicable laws and regulations, (i) pay commission to financial intermediaries including but not limited to sub-distributors, intermediaries and advisers who refer and/or advise prospective investors out of the Distributor’s fee as set out above and/or (ii) waive the Distributor Fee for certain prospective investors based on factors deemed appropriate by the Distributor. The Distributor Fee payable are present in the Statement of Financial Position. The fees incurred are included in the Operating Expenses figure in the Statement of Comprehensive Income. The following are the Distributor Fees for the financial years ended 31 October 2019 and 31 October 2018: 31 October 2019 31 October 2018 CCY Strategic Global Bond Fund USD 198,006 544,736 Investment Grade Global Bond Fund USD 76,352 87,724 High Yield Global Bond Fund USD 265,169 374,038 Absolute Return Bond Fund GBP - 1,468 Global Equity Income Fund USD 25,097 20,088 Equity Market Neutral Fund(3) GBP 37,381 37,381 Absolute Return Bond Global Fund(5) GBP - 92,806 Emerging Market Bond Opportunities Fund(4) USD - 92,806 Global Diversified Income Fund EUR 148,271 92,806 Global Sustainable Equity Fund EUR 205 - Global Diversified Growth Fund EUR 725 120 Global Equity Market Neutral Fund GBP - - Short Dated High Yield Bond Fund USD 1,091 180 Directors’ Fees Only Directors who are not employees of the Aegon group of companies and Kames group of companies will be entitled to remuneration for their services as Director. The fees payable to any one Director shall not exceed EUR 20,000 per annum or such other amount as may be approved by a resolution of the Directors or the Shareholders in the general meeting. All Directors will be entitled to be reimbursed out of the assets of the Funds for out of pocket expenses incurred in discharging their duties as Directors. The Directors’ Fee payable are presented in the Statement of Financial Position. The fees incurred are included in the Operating Expenses figure in the Statement of Comprehensive Income. The following are the Directors’ Fees for the financial years ended 31 October 2019 and 31 October 2018: 31 October 2019 31 October 2018 CCY Strategic Global Bond Fund USD 7,804 6,621 Investment Grade Global Bond Fund USD 7,804 5,826 High Yield Global Bond Fund USD 7,804 6,621 Absolute Return Bond Fund GBP 6,022 4,887 Global Equity Income Fund USD 7,794 6,633 Active Long Dated Bond Fund(2) GBP - 1,172 Equity Market Neutral Fund(3) GBP - 1,593 Absolute Return Bond Global Fund(5) GBP 6,022 4,921 Absolute Return Bond Constrained Fund EUR 7,000 - Emerging Market Bond Opportunities Fund(4) USD 1,951 6,697 Global Diversified Income Fund EUR 7,000 6,189 Global Sustainable Equity Fund EUR 7,000 5,555 Global Diversified Growth Fund EUR 7,000 5,555 Global Equity Market Neutral Fund GBP 6,022 5,493 Short Dated High Yield Global Bond Fund USD 7,804 -

121 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued) 11. Fees (continued) Audit Fee The Audit Fee payable are presented in the Statement of Financial Position. The fees incurred are included in the Operating Expenses figure in the Statement of Comprehensive Income.

The audit fees of the Investment Grade Global Bond Fund, Absolute Return Bond Constrained Fund, the Absolute Return Bond Global Fund and Short Dated High Yield Global Bond Fund are paid by the Investment Manager until further notice. The USD equivalent of the remuneration for all work carried out by the statutory audit firm for the Company for the financial years ended 31 October 2019 and 31 October 2018 was as follows: As at 31 October As at 31 October 2019 2018 USD USD Statutory Audit 165,302 196,333 Other Assurance services - - Tax Advisory services - - Other Non-Audit services - -

The following are the Audit Fees for the financial years ended 31 October 2019 and 31 October 2018: 31 October 2019 31 October 2018 CCY Strategic Global Bond Fund USD 25,867 23,933 Investment Grade Global Bond Fund USD - 16,549 High Yield Global Bond Fund USD 25,867 23,933 Absolute Return Bond Fund GBP 18,927 17,026 Global Equity Income Fund USD 37,195 27,529 Active Long Dated Bond Fund(2) GBP - 10,035 Equity Market Neutral Fund(3) GBP 10,428 10,428 Emerging Market Bond Opportunities Fund(4) USD 11,487 17,137 Global Diversified Income Fund EUR 12,027 14,029 Global Sustainable Equity Fund EUR 15,122 13,486 Global Diversified Growth Fund EUR 14,732 13,252 Global Equity Market Neutral Fund GBP 10,348 9,232 Legal Expense The Legal Expenses are included in the Operating Expenses figure in the Statement of Comprehensive Income. The following are the Legal Expenses for the financial years ended 31 October 2019 and 31 October 2018: 31 October 2019 31 October 2018 CCY Strategic Global Bond Fund USD 4,916 6,765 Investment Grade Global Bond Fund USD - 5,531 High Yield Global Bond Fund USD 4,916 6,765 Absolute Return Bond Fund GBP 3,862 4,735 Global Equity Income Fund USD 4,917 6,773 Active Long Dated Bond Fund(2) GBP - 1,996 Equity Market Neutral Fund(3) GBP 4,178 4,178 Absolute Return Bond Global Fund(5) GBP 1,452 4,747 Emerging Market Bond Opportunities Fund(4) USD 1,827 6,475 Global Diversified Income Fund EUR 4,374 6,348 Global Sustainable Equity Fund EUR 4,374 6,653 Global Diversified Growth Fund EUR 4,374 6,379 Global Equity Market Neutral Fund GBP 3,864 5,268

122 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

11. Fees (continued)

Transaction Cost The Transactions Costs are included in the Operating Expenses figure in the Statement of Comprehensive Income. The following are the Transaction Costs for the financial years ended 31 October 2019 and 31 October 2018:

31 October 2019 31 October 2018 CCY Strategic Glob-al Bond Fund USD 73,546 177,187 Investment Grade Global Bond Fund USD 9,586 9,937 High Yield Global Bond Fund USD 2,635 3,238 Absolute Return Bond Fund GBP 155,273 382,135 Global Equity Income Fund USD 278,419 535,217 Equity Market Neutral Plus Fund(1)** GBP - 1,985 Equity Market Neutral Fund(3) GBP - 8,328 Absolute Return Bond Global Fund(5) GBP 10,802 25,528 Absolute Return Bond Constrained Fund(5) EUR 7,274 15,497 Emerging Market Bond Opportunities Fund(4) USD 3,062 637 Global Diversified Income Fund EUR 130,950 201,587 Global Sustainable Equity Fund EUR 93,191 139,509 Global Diversified Growth Fund EUR 106,178 123,971 Global Equity Market Neutral Fund GBP 62,404 157,057

Shareclass Hedging Fee The Shareclass Hedging Fees are included in the Operating Expenses figure in the Statement of Comprehensive Income. The following are the Shareclass Hedging Fees for the financial years ended 31 October 2019 and 31 October 2018:

31 October 2019 31 October 2018 CCY Strategic Global Bond Fund USD 394,121 613,787 Investment Grade Global Bond Fund USD 191,663 257,041 High Yield Global Bond Fund USD 144,202 267,440 Absolute Return Bond Fund GBP 70,023 200,218 Equity Market Neutral Plus Fund(1) GBP - 372 Equity Market Neutral Fund(3) GBP 39,849 39,849 Absolute Return Bond Global Fund(4) GBP 10,137 20,386 Absolute Return Bond Constrained Fund(5) EUR 482 619 Emerging Market Bond Opportunities Fund(5) USD 33 110 Global Diversified Income Fund EUR 76,319 70,084 Global Diversified Growth Fund EUR 18,487 34,419 Global Equity Market Neutral Fund GBP 7,888 8,754 Short Dated High Yield Bond Fund USD 7,108 8,231

123 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

11. Fees (continued)

Miscellaneous Expenses Miscellaneous expenses on the Statement of Comprehensive Income include various fees and expenses such as listing, advisory, tax services, regulatory, company secretarial, translation service, report production fees, overdraft interest, consent fees and preliminary expenses where applicable. Miscellaneous expenses are included in the Operating Expenses figure in the Statement of Comprehensive Income.

The following are the Miscellaneous expenses for the financial years ended 31 October 2019 and 31 October 2018:

31 October 2019 31 October 2018 CCY Strategic Global Bond Fund USD 599,199 1,590,895 Investment Grade Global Bond Fund USD - 116,199 High Yield Global Bond Fund USD 127,079 81,384 Absolute Return Bond Fund GBP 1,451,864 565,850 Global Equity Income Fund USD 98,300 120,617 Active Long Dated Bond Fund(2) GBP - 942 Equity Market Neutral Plus Fund(1) GBP - 3,762 Equity Market Neutral Fund(3) GBP - 73,467 Absolute Return Bond Global Fund(5) GBP 150,526 162,005 Absolute Return Bond Constrained Fund(5) EUR 64,385 80,024 Emerging Market Bond Opportunities Fund(4) USD 7,132 46,163 Global Diversified Income Fund EUR 107,113 132,722 Global Sustainable Equity Fund EUR 88,535 75,970 Global Diversified Growth Fund EUR 70,421 76,460 Global Equity Market Neutral Fund GBP 104,735 1,574,019 Short Dated High Yield Bond Fund USD 138,276 162,745

(1) Kames Equity Market Neutral Plus Fund closed on 2 February 2018. (2) Kames Active Long Dated Bond Fund closed on 8 May 2018. (3) Kames Equity Market Neutral Fund closed on 2 July 2018. (4) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. (5) Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019. ** The Investment Manager pays fees on behalf of Kames Equity Market Neutral Plus Fund and the Fund then pays a fee to the Investment Manager.

12. Risks Associated with Financial Instruments

Risk is inherent in the activities of each Fund but it is managed through a process of ongoing identification, measurement and monitoring, subject to risks limits and other controls. The Funds are exposed to market risk (which includes currency risk, interest rate risk and market price risk), credit risk and liquidity risk arising from the financial instruments it holds.

The main risks arising from financial instruments and the policies for managing these risks are stated below. These policies have been applied throughout the period under review.

Market Price The main risk arising from each Fund’s financial instruments is market price. Market price risk is the risk that the value of the Funds’ investments will fluctuate as a result of changes in market price caused by factors other than interest rate or foreign currency movements. Market price risk arises mainly from uncertainty about future prices of financial instruments that the Fund might hold. It represents the potential loss the Funds might suffer through holding market positions in the face of price movements. The Funds’ investment portfolios are exposed to market price fluctuations, which are monitored by the Investment Manager in pursuance of the stated investment objectives, and policies as set out in the Prospectus. In addition, the Funds are also exposed to unfavourable market prices changes of the underlying financial instruments in case of contracts for difference. The Funds may incur a significant loss if the value of the underlying instruments falls below the value of a particular contract.

124 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Adherence to the investment guidelines and to investment and borrowing powers set out in the instrument of incorporation, the Prospectus and UCITS regulations issued by the Central Bank mitigates the risk of excessive exposure per industry to any particular type of security or issuer.

The following tables show the market price exposure per industry for the relevant Funds:

Strategic Global Bond Fund Asset Backed Corporate Government Floating Rate As at 31 October 2019 Securities Bonds Bonds Notes USD USD USD USD

Banks - 66,291,527 - 9,437,009 Consumer 4,649,807 24,021,157 - 1,275,275 Diversified - 2,473,570 - - Diversified Financial Services - 4,443,771 - - Energy - 10,388,468 - - Entertainment - 1,326,729 - - Financial 5,642,523 16,129,890 - 1,730,167 Healthcare - 8,678,557 - - Industrial 2,067,030 10,999,747 - 2,186,799 Insurance - 20,993,043 - - Mining - 1,448,125 - - Pharmaceuticals - 6,044,978 - - Retail 2,479,808 7,759,430 - - Sovereign - - 77,827,739 - Technology - 7,320,146 - - Telecommunications - 9,873,330 - 2,238,734 Utilities - 5,294,391 - - 14,839,168 203,486,859 77,827,739 16,867,984

125 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Strategic Global Bond Fund (continued)

Asset Backed Corporate Government Floating Rate As at 31 October 2018 Securities Bonds Bonds Notes USD USD USD USD

Banks - 76,633,213 - 4,587,000 Chemicals - 2,584,866 - - Communications - 8,938,189 - - Consumer 5,632,295 22,444,180 - - Diversified Financial Services - 4,268,188 - - Energy 2,402,663 8,809,905 - - Entertainment - 3,474,201 - - Financial 10,720,862 14,848,997 - - Healthcare - 4,382,973 - - Industrial 2,711,220 15,123,490 - - Insurance - 23,610,655 - 3,164,596 Mining - 9,018,581 - - Pharmaceuticals - 9,593,793 - - Retail 2,734,229 5,259,334 - - Sovereign - - 245,426,511 - Technology - 15,943,564 - - Telecommunications - 9,576,105 - - Utilities - 9,498,169 - 3,064,206 24,201,269 244,008,403 245,426,511 10,815,802

Investment Grade Global Bond Fund

Asset Backed Corporate Government Floating Rate As at 31 October 2019 Securities Bonds Bonds Notes USD USD USD USD

Banks - 29,092,677 - 771,491 Chemicals - 4,620,566 - - Communications - 1,130,616 - - Consumer 1,985,661 11,586,442 - - Diversified Financial Services - 4,068,168 - - Energy - 10,772,204 - - Financial - 3,780,373 - - Healthcare - 5,086,958 - - Industrial 1,202,636 9,039,076 - 1,998,642 Insurance - 13,572,743 - - Pharmaceuticals - 8,233,938 - - Retail - 6,296,369 - - Sovereign - - 1,257,734 - Technology - 7,357,912 - - Telecommunications - 4,438,263 - 1,526,410 Utilities - 5,545,105 - - 3,188,297 124,621,410 1,257,734 4,296,543

126 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Investment Grade Global Bond Fund (continued)

Asset Backed Corporate Government Floating As at 31 October 2018 Securities Bonds Bonds Rate Notes USD USD USD USD

Banks - 44,700,956 - 2,150,000 Chemicals - 6,981,682 - - Communications - 5,078,426 - - Consumer 1,971,240 26,520,215 - - Diversified Financial Services - 5,942,816 - - Energy - 14,386,414 - - Financial - 6,507,790 - - Healthcare - 12,375,668 - - Industrial 1,156,787 19,961,754 - 2,001,759 Insurance - 19,096,129 - - Pharmaceuticals - 8,542,716 - - Retail - 6,148,116 - - Sovereign - - 1,956,875 - Technology - 2,487,141 - - Telecommunications - 7,445,596 - 3,513,531 Utilities - 11,229,796 - - 3,128,027 197,405,215 1,956,875 7,665,290

High Yield Global Bond Fund

Asset Backed Corporate Floating Rate As at 31 October 2019 Securities Bonds Notes USD USD USD

Banks - 16,542,148 - Communications - 5,782,499 - Consumer - 29,325,582 - Diversified Financial Services 621,930 5,460,533 - Energy - 12,636,074 - Entertainment - 5,338,893 - Financial - 8,997,085 1,730,167 Forest Products & Paper - 731,874 - Healthcare - 3,170,633 - Industrial 1,202,636 14,911,494 1,017,956 Mining - 1,241,250 - Pharmaceuticals - 3,871,557 - Retail - 5,658,063 - Technology - 6,125,600 - Telecommunications - 10,121,588 - Utilities - 744,625 - 1,824,566 130,659,498 2,748,123

127 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

High Yield Global Bond Fund (continued)

Asset Backed Corporate Floating Rate As at 31 October 2018 Securities Bonds Notes USD USD USD

Banks - 10,150,616 - Communications - 7,625,225 - Consumer - 44,613,250 - Diversified Financial Services - 9,083,264 - Energy 1,668,516 19,444,459 - Entertainment - 7,326,923 - Financial - 17,207,817 - Healthcare - 6,481,469 - Industrial 1,445,984 18,064,261 1,032,889 Insurance - 1,300,035 - Mining - 1,163,603 - Pharmaceuticals - 5,568,265 - Retail - 8,516,620 - Technology - 7,495,826 - Telecommunications - 5,383,806 - Utilities - 3,756,362 - 3,114,500 173,181,801 1,032,889

Absolute Return Bond Fund

Asset Backed Corporate Floating Rate As at 31 October 2019 Securities Bonds Notes GBP GBP GBP

Banks - 158,773,200 9,218,424 Consumer 13,599,095 50,159,608 - Diversified - 2,540,369 - Diversified Financial Services - 25,238,394 - Energy - 2,881,656 - Entertainment - 4,446,146 - Financial 5,837,553 963,756 - Healthcare - 103,903 - Industrial 1,473,935 42,234,423 - Insurance - 67,037,019 252,300 Mining - 2,751,746 - Pharmaceuticals - 3,579,876 - Retail 2,578,099 13,102,399 - Technology - 6,477,006 - Telecommunications - 44,133,499 - Utilities - 53,119,666 - Other ABS 7,273,228 - - 30,761,910 477,542,666 9,470,724

128 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Absolute Return Bond Fund (continued)

Asset Backed Corporate Floating Rate Government As at 31 October 2018 Securities Bonds Notes Bonds GBP GBP GBP GBP

Banks - 310,425,441 - - Communications - 19,850,197 - - Consumer 22,060,948 213,529,233 - - Diversified - 1,199,850 - - Diversified Financial Services - 52,847,701 - - Energy - 27,857,252 - - Entertainment - 28,231,246 - - Financial 21,924,682 61,794,117 - - Industrial 1,541,151 112,180,692 - - Insurance - 162,247,679 36,505,855 Mining - 17,779,515 - - Retail 2,525,764 67,241,417 - - Sovereign - - - 103,171,556 Technology - 7,832,267 - - Telecommunications - 132,147,201 - - Utilities - 176,088,359 - - Other ABS 19,829,883 - - - 67,882,428 1,391,252,167 36,505,855 103,171,556

Global Equity Income Fund

Equity - UK REIT - UK As at 31 October 2019 Equity Large Cap Small Cap USD USD USD

Banks 52,210,269 - - Chemicals 20,138,796 - - Consumer 58,092,489 6,601,314 - Diversified 6,135,184 - - Diversified Financial Services 13,825,913 - - Energy 30,845,749 - - Financial - - 8,885,868 Industrial 51,731,720 - - Insurance 46,857,168 - - Iron/Steel 5,462,252 - - Mining - 8,039,822 - Pharmaceuticals 25,568,873 23,552,316 - Retail 17,536,148 - - Technology 78,646,170 - - Telecommunications 11,345,928 - - Utilities 15,831,691 - - 434,228,350 38,193,452 8,885,868

129 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Global Equity Income Fund (continued)

Equity - UK Equity - UK REIT - UK As at 31 October 2018 Equity Large Cap Small Cap Small Cap USD USD USD USD

Banks 72,521,260 - - - Chemicals 14,939,354 - - - Consumer 49,557,651 6,779,915 - - Diversified 8,158,562 - - - Diversified Financial Services 28,841,350 - - - Energy 33,723,214 - - - Financial - - - 7,627,124 Industrial 51,453,834 - - - Insurance 8,502,165 - - - Iron/Steel 6,337,818 - - - Mining - 7,273,753 - - Pharmaceuticals 21,947,468 25,283,225 - - Retail 8,827,576 - - - Technology 71,535,719 - - - Telecommunications 11,484,650 - - - Utilities 12,437,981 - - - 400,268,602 39,336,893 - 7,627,124

Absolute Return Bond Global Fund(2)

Asset Backed Corporate Government Floating Rate As at 31 October 2018 Securities Bonds Bonds Notes GBP GBP GBP GBP

Banks - 25,552,811 - 2,177,692 Chemicals - 541,259 - - Communications - 2,107,141 - - Consumer 1,837,574 14,319,920 - - Diversified Financial Services - 4,137,708 - - Entertainment - 1,966,494 - - Financial 1,082,990 2,348,021 - - Healthcare - 315,725 - - Industrial - 7,383,307 - - Insurance - 8,697,650 - 3,452,415 Mining - 507,986 - - Retail 915,589 3,003,117 - - Sovereign - - 3,445,745 - Telecommunications - 8,873,019 - - Utilities - 18,606,966 - - Other ABS 929,526 - - - 4,765,679 98,361,124 3,445,745 5,630,107

(2) Kames Absolute Return Bond Global Fund closed on 30 October 2019.

130 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Absolute Return Bond Constrained Fund(2)

Asset Backed Corporate Government Floating Rate As at 31 October 2018 Securities Bonds Bonds Notes EUR EUR EUR EUR

Banks - 15,202,739 - - Chemicals - 175,696 - - Communications - 1,846,310 - - Consumer 1,282,741 16,552,593 - - Diversified - 900,147 - - Diversified Financial Services - 3,701,864 - - Energy - 396,361 - - Entertainment - 226,828 - - Financial - 1,258,171 - - Healthcare - 1,576,428 - - Industrial - 6,613,031 - - Insurance - 3,232,557 - 539,431 Retail 55,903 1,415,609 - Sovereign - - 1,508,337 - Technology - 881,842 - - Telecommunications - 2,455,700 - - Utilities - 5,450,983 - - 1,338,644 61,886,859 1,508,337 539,431

Emerging Market Bond Opportunities Fund(1)

Asset Backed Corporate Government As at 31 October 2018 Securities Bonds Bonds USD USD USD

Banks 918,000 - - Chemicals - 920,924 - Consumer - 2,475,094 - Energy 1,067,850 3,026,178 - Financial - 1,790,053 - Industrial - 1,989,286 - Pharmaceuticals - 985,000 - Sovereign - - 26,455,424 Telecommunications - 1,016,390 - 1,985,850 12,202,925 26,455,424

(1) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. (2) Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

131 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Global Diversified Income Fund

Corporate Equity - UK Equity - UK Government As at 31 October 2019 Bonds Equity Large Cap Small Cap Bonds EUR EUR EUR EUR EUR

Banks 13,753,583 5,332,576 - - - Chemicals 1,040,429 1,996,677 - - - Communications 1,063,940 - - - - Consumer 7,875,086 7,338,565 966,391 - - Diversified - 1,036,085 - - - Diversified Financial Services 656,897 3,092,750 - - - Energy 1,839,190 1,207,251 1,135,212 - - Entertainment 517,425 - - - - Financial 2,183,753 5,465,049 2,102,893 9,705,188 - Forest Products & Paper - - 1,293,270 - - Healthcare 2,240,713 - - - - Industrial 4,185,026 8,393,528 - 510,979 - Insurance 5,739,813 4,063,386 1,781,730 1,904,140 - Mining - - 1,012,776 - - Pharmaceuticals 1,506,236 3,977,849 2,310,284 - - Retail 435,144 1,724,294 - - - Sovereign - - - - 22,083,814 Technology 506,545 6,786,361 - - - Telecommunications 3,103,154 5,262,782 - - - Utilities 477,061 4,139,365 874,248 - - 47,123,995 59,816,518 11,476,804 12,120,307 22,083,814

132 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Global Diversified Income Fund (continued)

Investment Funds - Non REIT - UK REIT - UK Overseas As at 31 October 2019 Bond Large Cap Small Cap REIT EUR EUR EUR EUR

Banks - - - - Chemicals - - - - Communications - - - - Consumer - - - 401,935 Diversified - - - - Diversified Financial Services - - - - Energy - - - - Entertainment - - - - Financial 886,046 1,547,923 1,310,356 10,266,912 Forest Products & Paper - - - - Healthcare - - - - Industrial - - - 596,037 Insurance - - - - Mining - - - - Pharmaceuticals - - - - Retail - - - - Sovereign - - - - Technology - - - - Telecommunications - - - - Utilities - - - - 886,046 1,547,923 1,310,356 11,264,884

133 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Global Diversified Income Fund (continued)

Corporate Equity - UK Equity - UK Government As at 31 October 2018 Bonds Equity Large Cap Small Cap Bonds EUR EUR EUR EUR EUR

Banks 13,340,740 6,597,502 - - - Chemicals 941,928 1,852,869 - - - Communications 1,066,942 - - - - Consumer 6,395,211 8,828,742 1,049,922 1,169,148 - Diversified - 1,412,521 - - - Diversified Financial Services 236,066 2,406,184 - - - Energy 2,642,929 2,101,971 2,146,597 1,513,104 - Entertainment 429,557 - - - - Financial 2,437,655 1,016,725 3,426,825 6,847,559 - Forest Products & Paper - - 1,207,920 - - Healthcare 1,766,528 - - - - Industrial 2,264,251 6,667,107 - 1,220,923 - Insurance 2,045,105 4,363,038 3,087,414 1,383,830 - Mining - - 927,868 - - Pharmaceuticals - 3,689,385 1,269,391 - - Retail - 773,604 - - - Sovereign - - - - 14,530,010 Technology - 6,831,909 - - - Telecommunications 1,550,920 2,156,798 - - - Utilities 440,152 3,790,101 2,390,502 - - 35,557,984 52,488,456 15,506,439 12,134,564 14,530,010

134 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Global Diversified Income Fund (continued)

Investment Funds - Non REIT - UK REIT - UK Overseas As at 31 October 2018 Bond Large Cap Small Cap REIT EUR EUR EUR EUR

Banks - - - - Chemicals - - - - Communications - - - - Consumer - - - 1,306,270 Diversified - - - - Diversified Financial Services - - - 2,024,463 Energy - - - - Entertainment - - - - Financial 951,371 2,186,487 1,809,998 13,993,450 Forest Products & Paper - - - - Healthcare - - - - Industrial - - - - Insurance - - - - Mining - - - - Pharmaceuticals - - - - Retail - - - - Sovereign - - - - Technology - - - - Telecommunications - - - - Utilities - - - - 951,371 2,186,487 1,809,998 17,324,183

135 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Global Sustainable Equity Fund Equity - UK Equity - UK As at 31 October 2019 Equities Large Cap Small Cap EUR EUR EUR

Banks 3,681,156 - - Chemicals 2,844,973 - - Consumer 31,667,524 2,616,637 1,716,494 Energy 4,060,290 - - Healthcare 18,784,381 - - Industrial 19,285,030 - - Pharmaceuticals 4,974,843 - - Retail 2,506,245 - - Technology 17,406,382 - - 105,210,824 2,616,637 1,716,494

Equity - UK Equity - UK As at 31 October 2018 Equities Large Cap Small Cap EUR EUR EUR

Banks 2,091,276 - - Chemicals 3,478,885 - - Communications 2,027,690 - - Consumer 23,731,952 - 1,362,926 Diversified Financial Services - 2,144,087 - Healthcare 9,199,166 - - Industrial 14,502,844 - - Pharmaceuticals 2,598,270 - - Retail 1,766,367 - - Technology 10,768,234 - - 70,164,684 2,144,087 1,362,926

136 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Global Diversified Growth Fund

Corporate Equity - UK Equity - UK Government As at 31 October 2019 Bonds Equity Large Cap Small Cap Bonds EUR EUR EUR EUR EUR Banks 4,541,483 670,485 - - - Chemicals - 282,415 - - - Communications 200,762 379,492 317,465 - - Consumer 833,270 3,185,657 283,405 - - Diversified Financial Services - - - 251,357 - Energy 262,510 526,230 1,145,227 - - Financial - 3,157,546 1,785,906 6,319,307 - Healthcare 291,729 441,649 - - - Industrial 380,148 3,509,987 - 121,664 - Insurance 800,870 537,090 - - - Pharmaceuticals 210,064 371,178 351,109 - - Retail 249,976 1,116,519 - - - Sovereign - - - - 6,020,543 Technology - 3,029,398 - - - Telecommunications - 1,039,118 - - - Utilities - 1,142,581 - - - 7,770,812 19,389,345 3,883,112 6,692,328 6,020,543

Investment Investment Funds - Non REIT - UK Overseas As at 31 October 2019 Funds - Bond Bond Large Cap REIT EUR EUR EUR EUR Banks - - - - Chemicals - - - - Communications - - - - Consumer - - - - Diversified Financial Services - - - - Energy - - - - Financial 3,507,477 572,352 792,403 2,792,658 Healthcare - - - - Industrial - - - 467,153 Insurance - - - - Pharmaceuticals - - - - Retail - - - - Sovereign - - - - Technology - - - - Telecommunications - - - - Utilities - - - - 3,507,477 572,352 792,403 3,259,811

137 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Global Diversified Growth Fund (continued)

Corporate Equity - UK Equity - UK Government As at 31 October 2018 Bonds Equity Large Cap Small Cap Bonds EUR EUR EUR EUR EUR Banks 3,376,070 305,881 - - - Chemicals - 493,719 172,516 - - Communications - 576,629 - - - Consumer - 6,237,253 167,669 664,588 - Diversified - 562,515 - - - Diversified Financial Services - 2,427,720 195,457 737,806 - Energy 316,951 1,064,719 369,355 1,203,527 - Financial - 3,628,650 5,046,719 8,688,574 - Forest Products & Paper - 119,925 - - - Industrial - 4,877,896 210,055 296,727 - Insurance - 781,280 - 106,183 - Iron/Steel - 254,117 - - - Mining - 310,806 - - - Pharmaceuticals - 845,550 - - - Retail - 1,105,038 - - - Sovereign - - - - 9,280,449 Technology - 1,705,712 - - - Telecommunications - 257,129 - - - Utilities - 737,692 - - - 3,693,021 26,292,231 6,161,771 11,697,405 9,280,449

Investment Investment Funds - Non REIT - UK REIT - UK Overseas As at 31 October 2018 Funds - Bond Bond Large Cap Small Cap REIT EUR EUR EUR EUR EUR Banks - - - - - Chemicals - - - - - Communications - - - - - Consumer - - - - - Diversified - - - - - Diversified Financial Services - - - - 1,879,327 Energy - - - - - Financial - 513,259 1,234,380 784,727 4,550,691 Forest Products & Paper - - - - - Industrial - - - - - Insurance - - - - - Iron/Steel - - - - - Mining - - - - - Pharmaceuticals - - - - - Retail - - - - - Sovereign - - - - - Technology - - - - - Telecommunications - - - - - Utilities ------513,259 1,234,380 784,727 6,430,018 138 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Global Equity Market Neutral Fund Equity - UK Contracts for As at 31 October 2019 Equities Small Cap Difference GBP GBP GBP

Banks - - (110,178) Chemicals - - (62,969) Communications 1,794,580 1,548,590 246,966 Consumer 6,572,085 - (70,093) Diversified Financial Services 762,300 - - Energy 2,670,213 - - Forest Products & Paper - - 3,893 Healthcare 3,953,915 - - Industrial 6,339,945 - (237,229) Pharmaceuticals 1,469,501 - - Retail 4,503,915 - 80,783 Technology 7,290,611 - 2,368 Telecommunications - - (24,731) Utilities - - (11,713) 35,357,065 1,548,590 (182,903)

Contracts for As at 31 October 2018 Equities Difference GBP GBP

Banks - (24,730) Chemicals - 265,741 Communications 3,159,768 (3,899) Consumer 21,308,497 (215,254) Diversified Financial Services 1,064,122 - Energy 2,500,657 44,673 Financial - 84,498 Healthcare - (182,700) Industrial 9,492,086 (75,653) Mining 1,595,530 455,178 Pharmaceuticals 1,659,258 (834) Retail 4,060,108 (56,990) Technology 8,130,506 (577,926) Telecommunications - (94,805) 52,970,532 (382,701)

139 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Market Price (continued)

Short Dated High Yield Global Bond Fund

Asset Backed Corporate Floating As at 31 October 2019 Securities Bonds Rate Notes USD USD USD

Banks - 2,637,987 - Communications - 3,826,715 - Consumer 86,172 11,150,016 654,759 Diversified Financial Services 282,695 2,320,196 - Energy - 1,330,112 - Entertainment - 2,640,823 - Financial - 4,140,552 - Healthcare - 1,526,814 - Industrial 613,135 6,831,522 452,425 Insurance - 876,776 - Mining - 1,031,384 - Pharmaceuticals - 550,214 - Retail - 2,812,750 - Technology - 108,783 - Telecommunications - 2,212,325 - Utilities - 527,964 - 982,002 44,524,933 1,107,184

Asset Backed Corporate Floating As at 31 October 2018 Securities Bonds Rate Notes USD USD USD

Banks - 8,626,258 - Chemicals - 3,873,861 - Communications - 11,879,560 - Consumer - 60,112,154 2,831,006 Diversified Financial Services - 13,271,181 - Energy 2,261,476 15,548,289 - Entertainment - 5,900,767 - Financial 415,901 12,505,113 - Forest Products & Paper - 808,435 - Healthcare - 7,112,106 - Industrial 968,502 19,044,945 - Insurance - 968,758 - Iron/Steel - 3,087,002 - Mining - 4,984,363 - Pharmaceuticals - 5,324,886 - Retail - 12,716,907 - Technology - 8,242,408 - Telecommunications - 11,258,101 - Utilities - 3,647,091 - 3,645,879 208,912,185 2,831,006

140 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk

Foreign currency risk is the risk that the value of the Funds’ investments will fluctuate as a result of changes in foreign currency exchange rates. For the Funds where an element of the investment portfolio is is denominated in currencies other than the base currency of the Fund, the Statement of Financial Position can be affected by movements in exchange rates. The Investment Manager may seek to manage exposure to currency movements by using forward foreign currency contracts or by hedging the Fund currency value of investments that are priced in other currencies. Income received in other currencies is converted to Fund currency on or near the date of receipt. The gross foreign currency exposure for the relevant Funds is shown in the following tables:

Strategic Global Bond Fund As at 31 October 2019 Monetary Non-monetary exposures exposures Total USD USD USD Assets Australian Dollar 528,497 - 528,497 Canadian Dollar 14,878,317 - 14,878,317 Euro 277,217,335 - 277,217,335 Japanese Yen 7,970,540 - 7,970,540 Sterling 79,954,136 - 79,954,136 Swiss Franc 1,075,843 - 1,075,843 US Dollar 168,397,464 - 168,397,464 550,022,132 - 550,022,132

Liabilities Australian Dollar (14,201,622) - (14,201,622) Euro (354,363) - (354,363) Sterling (62,311,813) - (62,311,813) US Dollar (147,839,778) - (147,839,778) (224,707,576) - (224,707,576)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total USD USD USD Assets Australian Dollar 8,118,424 - 8,118,424 Canadian Dollar 681,627 - 681,627 Euro 350,194,466 - 350,194,466 Japanese Yen 44,226,089 - 44,226,089 Sterling 157,893,327 - 157,893,327 Swedish Krona 436,187 - 436,187 Swiss Franc 1,517,160 - 1,517,160 US Dollar 244,493,247 - 244,493,247 807,560,527 - 807,560,527 Liabilities Australian Dollar (7,125,949) - (7,125,949) Euro (13,268,968) - (13,268,968) Japanese Yen (33,022,534) - (33,022,534) Sterling (64,554,119) - (64,554,119) US Dollar (139,155,425) - (139,155,425) (257,126,995) - (257,126,995) 141 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Investment Grade Global Bond Fund

As at 31 October 2019 Monetary Non-monetary exposures exposures Total USD USD USD Assets Euro 55,676,070 - 55,676,070 Sterling 83,836,871 - 83,836,871 US Dollar 93,666,082 - 93,666,082 233,179,023 - 233,179,023

Liabilities Euro (3,002,894) - (3,002,894) Sterling (83,829) - (83,829) US Dollar (85,142,665) - (85,142,665) (88,229,388) - (88,229,388)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total USD USD USD Assets Euro 69,605,050 - 69,605,050 Sterling 140,490,939 - 140,490,939 Swedish Krona 16,934 - 16,934 Swiss Franc 11,416 - 11,416 US Dollar 163,234,778 - 163,234,778 373,359,117 - 373,359,117

Liabilities Euro (7,530,257) - (7,530,257) Sterling (1,555,692) - (1,555,692) US Dollar (125,401,185) - (125,401,185) (134,487,134) - (134,487,134)

142 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

High Yield Global Bond Fund

As at 31 October 2019 Monetary Non-monetary exposures exposures Total USD USD USD Assets Australian Dollar 24 - 24 Canadian Dollar 1,748,692 - 1,748,692 Euro 72,843,277 - 72,843,277 Sterling 31,959,987 - 31,959,987 Swiss Franc 11,625,034 - 11,625,034 US Dollar 59,649,818 - 59,649,818 177,826,832 - 177,826,832

Liabilities Canadian Dollar (1,518,890) - (1,518,890) Euro (1,494,862) - (1,494,862) Sterling (81,559) - (81,559) Swiss Franc (19,394) - (19,394) US Dollar (35,327,900) - (35,327,900) (38,442,605) - (38,442,605)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total USD USD USD Assets Australian Dollar 25 - 25 Canadian Dollar 1,668,434 - 1,668,434 Euro 97,082,410 - 97,082,410 Sterling 45,117,630 - 45,117,630 Swedish Krona 18,546 - 18,546 Swiss Franc 11,478,683 - 11,478,683 US Dollar 90,187,722 - 90,187,722 245,553,450 - 245,553,450

Liabilities Canadian Dollar (1,524,406) - (1,524,406) Euro (48,799) - (48,799) Sterling (489,585) - (489,585) Swiss Franc (278,047) - (278,047) US Dollar (61,342,444) - (61,342,444) (63,683,281) - (63,683,281)

143 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Absolute Return Bond Fund

As at 31 October 2019 Monetary Non-monetary exposures exposures Total GBP GBP GBP Assets Australian Dollar 1,018,433 - 1,018,433 Canadian Dollar 605,893 - 605,893 Euro 80,626,851 - 80,626,851 Japanese Yen 713,288 - 713,288 New Zealand Dollar 450,307 - 450,307 Sterling 545,011,360 - 545,011,360 Swedish Krona 797,510 - 797,510 Swiss Franc 546,653 - 546,653 US Dollar 57,189,246 - 57,189,246 686,959,541 - 686,959,541

Liabilities Euro (67,674,749) - (67,674,749) Sterling (13,208,953) - (13,208,953) US Dollar (50,869,778) - (50,869,778) (131,753,480) - (131,753,480)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total GBP GBP GBP Assets Australian Dollar 16,625,891 - 16,625,891 Canadian Dollar 3,266,867 - 3,266,867 Euro 115,741,608 - 115,741,608 Japanese Yen 692,136 - 692,136 New Zealand Dollar 2,503,644 - 2,503,644 Sterling 1,670,083,834 - 1,670,083,834 Swedish Krona 3,464,913 - 3,464,913 Swiss Franc 550,476 - 550,476 US Dollar 90,775,107 - 90,775,107 1,903,704,476 - 1,903,704,476

Liabilities Australian Dollar (14,436,801) - (14,436,801) Euro (9,038,953) - (9,038,953) Sterling (18,224,517) - (18,224,517) US Dollar (80,228,402) - (80,228,402) (121,928,673) - (121,928,673)

144 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Global Equity Income Fund

As at 31 October 2019 Monetary Non-monetary exposures exposures Total USD USD USD Assets Australian Dollar 98,612 23,942,295 24,040,907 Canadian Dollar 81 - 81 Euro 77,495,981 49,935,065 127,431,046 Hong Kong Dollar 80,620 31,377,106 31,457,726 Japanese Yen 233,946 25,599,512 25,833,458 Singapore Dollar 138,023 14,201,142 14,339,165 Sterling 9,458,198 38,193,452 47,651,650 Swedish Krona 10 - 10 Swiss Franc 101 32,328,999 32,329,100 Taiwan Dollar 1,068,453 - 1,068,453 Thailand Baht 152,404 8,537,456 8,689,860 US Dollar 10,945,377 249,267,995 260,213,372 99,671,806 473,383,022 573,054,828

Liabilities Australian Dollar (4,296,795) - (4,296,795) Euro (502,626) - (502,626) Hong Kong Dollar (3,408,408) - (3,408,408) Japanese Yen (4,556,532) - (4,556,532) Singapore Dollar (7,454,976) - (7,454,976) Sterling (8,425,708) - (8,425,708) Swiss Franc (5,687,185) - (5,687,185) US Dollar (44,892,740) - (44,892,740) (79,224,970) - (79,224,970)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total USD USD USD Assets Australian Dollar 71 18,754,184 18,754,255 Canadian Dollar 80 - 80 Euro 68,502,736 60,065,444 128,568,180 Hong Kong Dollar 195,426 38,803,497 38,998,923 Japanese Yen 275,321 26,596,892 26,872,213 Singapore Dollar 72 9,132,857 9,132,929 Sterling 7,748,039 39,336,893 47,084,932 Swedish Krona 11 9,142,899 9,142,910 Swiss Franc 108 - 108 Taiwan Dollar 1,051,085 - 1,051,085 Thailand Baht 141,467 9,454,220 9,595,687 US Dollar 7,961,152 228,318,609 236,279,761 85,875,568 439,605,495 525,481,063

145 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Global Equity Income Fund (continued)

As at 31 October 2018 (continued) Monetary Non-monetary exposures exposures Total USD USD USD Liabilities Australian Dollar (3,154,273) - (3,154,273) Euro (1,766,395) - (1,766,395) Hong Kong Dollar (6,822,178) - (6,822,178) Japanese Yen (4,560,772) - (4,560,772) Singapore Dollar (6,286,908) - (6,286,908) Sterling (8,009,722) - (8,009,722) Swedish Krona (1,564,304) - (1,564,304) US Dollar (39,102,306) - (39,102,306) (71,266,858) - (71,266,858)

Active Long Dated Bond Fund(2)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total GBP GBP GBP Assets Sterling 36,429 - 36,429 US Dollar 123 - 123 36,552 - 36,552

Liabilities Sterling (36,552) - (36,552) (36,552) - (36,552)

Equity Market Neutral Plus Fund(1)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total GBP GBP GBP Assets Sterling 10,837 - 10,837 10,837 - 10,837

Liabilities Euro (1) - (1) Sterling (10,836) - (10,836) (10,837) - (10,837)

(1) Kames Equity Market Neutral Plus Fund closed on 2 February 2018. (2) Kames Active Long Dated Bond Fund closed on 8 May 2018.

146 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Equity Market Neutral Fund(3)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total GBP GBP GBP Assets Euro 89 - 89 Sterling 30,693 - 30,693 30,782 - 30,782

Liabilities Sterling (30,782) - (30,782) (30,782) - (30,782)

Absolute Return Bond Global Fund(5)

As at 31 October 2019 Monetary Non-monetary exposures exposures Total GBP GBP GBP Assets Australian Dollar 27,047 - 27,047 Canadian Dollar 16,278 - 16,278 Euro 40,774 - 40,774 New Zealand Dollar 17,927 - 17,927 Sterling 3,751,422 - 3,751,422 Swedish Krona 1,999,500 - 1,999,500 Swiss Franc 13,138 - 13,138 US Dollar 146,520 - 146,520 6,012,606 - 6,012,606

Liabilities Australian Dollar (27,047) - (27,047) Euro (36,762) - (36,762) New Zealand Dollar (17,927) - (17,927) Sterling (3,778,571) - (3,778,571) Swedish Krona (1,999,500) - (1,999,500) Swiss Franc (13,138) - (13,138) US Dollar (139,661) - (139,661) (6,012,606) - (6,012,606)

(3) Kames Equity Market Neutral Fund closed on 2 July 2018. (5) Kames Absolute Return Bond Global Fund closed on 30 October 2019.

147 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Absolute Return Bond Global Fund (continued)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total GBP GBP GBP Assets Australian Dollar 1,297,821 - 1,297,821 Canadian Dollar 155,432 - 155,432 Euro 15,323,335 - 15,323,335 New Zealand Dollar 193,728 - 193,728 Sterling 115,702,353 - 115,702,353 Swedish Krona 2,566,706 - 2,566,706 Swiss Franc 23,032 - 23,032 US Dollar 10,951,583 - 10,951,583 146,213,990 - 146,213,990

Liabilities Australian Dollar (1,221,575) - (1,221,575) Euro (8,671,919) - (8,671,919) Sterling (939,976) - (939,976) US Dollar (10,640,269) - (10,640,269) (21,473,739) - (21,473,739)

Absolute Return Bond Constrained Fund(5)

As at 31 October 2019 Monetary Non-monetary exposures exposures Total EUR EUR EUR Assets Australian Dollar 101,288 - 101,288 Euro 31,829,778 - 31,829,778 New Zealand Dollar 865 - 865 Sterling 59,510 - 59,510 Swiss Franc 302,898 - 302,898 US Dollar 71,723 - 71,723 32,366,062 - 32,366,062

Liabilities Australian Dollar (101,288) - (101,288) Euro (31,961,011) - (31,961,011) New Zealand Dollar (865) - (865) Swiss Franc (302,898) - (302,898) (32,366,062) - (32,366,062)

(5) Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

148 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Absolute Return Bond Constrained Fund (continued)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total EUR EUR EUR Assets Australian Dollar 644,886 - 644,886 Canadian Dollar 67,670 - 67,670 Euro 68,160,072 - 68,160,072 New Zealand Dollar 126,882 - 126,882 Sterling 29,112,798 - 29,112,798 Swedish Krona 44,019 - 44,019 Swiss Franc 524,898 - 524,898 US Dollar 10,880,498 - 10,880,498 109,561,723 - 109,561,723

Liabilities Australian Dollar (561,679) - (561,679) Euro (261,716) - (261,716) Sterling (29,369,719) - (29,369,719) Swiss Franc (1) - (1) US Dollar (10,682,024) - (10,682,024) (40,875,139) - (40,875,139)

Emerging Market Bond Opportunities Fund(4) As at 31 October 2019 Monetary Non-monetary exposures exposures Total USD USD USD Assets Euro 55,652 - 55,652 55,652 - 55,652

Liabilities US Dollar (55,652) - (55,652) (55,652) - (55,652) As at 31 October 2018 Monetary Non-monetary exposures exposures Total USD USD USD Assets Euro 24,500 - 24,500 Mexican Peso 1,076 - 1,076 New Turkish Lira 395 - 395 Sterling 75,975 - 75,975 US Dollar 46,508,510 - 46,508,510 46,610,456 - 46,610,456

Liabilities US Dollar (220,461) - (220,461) (220,461) - (220,461)

(4) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. 149 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Global Diversified Income Fund

As at 31 October 2019 Monetary Non-monetary exposures exposures Total EUR EUR EUR Assets Australian Dollar 998,034 3,199,452 4,197,486 Brazilian Real 2,532,463 - 2,532,463 Canadian Dollar 148,738 - 148,738 Danish Krone 5,242 - 5,242 Euro 85,292,038 13,779,498 99,071,536 Hong Kong Dollar 31,546 5,038,448 5,069,994 Indian Rupee 1,670,640 - 1,670,640 Indonesian Rupiah 2,203,099 - 2,203,099 Japanese Yen 2,348,537 8,827,348 11,175,885 Mexican Peso 3,649,838 - 3,649,838 New Zealand Dollar 58 2,088,943 2,089,001 Singapore Dollar 2,621,664 5,016,833 7,638,497 South African Rand 861,278 - 861,278 Sterling 38,148,270 23,086,132 61,234,402 Swedish Krona 9 - 9 Swiss Franc 91 2,098,414 2,098,505 Taiwan Dollar 3 - 3 Thailand Baht 9,827 1,301,669 1,311,496 Turkish Lira 181 - 181 US Dollar 51,379,142 19,029,648 70,408,790 191,900,698 83,466,385 275,367,083

Liabilities Australian Dollar (4,090,144) - (4,090,144) Euro (1,524,098) - (1,524,098) Hong Kong Dollar (3,515,294) - (3,515,294) Japanese Yen (5,098,116) - (5,098,116) New Zealand Dollar (2,100,769) - (2,100,769) Singapore Dollar (11,774,018) - (11,774,018) South African Rand (904,600) - (904,600) South Korean Won (3,433,375) - (3,433,375) Sterling (271,333) - (271,333) Swiss Franc (1,837,325) - (1,837,325) Taiwan Dollar (6,313,952) - (6,313,952) Thailand Baht (1,378,061) - (1,378,061) US Dollar (61,493,570) - (61,493,570) (103,734,655) - (103,734,655)

150 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Global Diversified Income Fund (continued)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total EUR EUR EUR Assets Australian Dollar 2,095,583 1,513,374 3,608,957 Canadian Dollar 916 - 916 Danish Krone 5,248 - 5,248 Euro 79,198,150 13,640,524 92,838,674 Hong Kong Dollar 11 5,570,776 5,570,787 Indonesian Rupiah 1,148,557 - 1,148,557 Japanese Yen 3,641,389 6,381,461 10,022,850 Mexican Peso 1,982,991 - 1,982,991 New Turkish Lira 181 - 181 New Zealand Dollar 65 1,977,426 1,977,491 Singapore Dollar 3,410,881 1,095,962 4,506,843 South African Rand 1,715,817 - 1,715,817 South Korean Won - 481,264 481,264 Sterling 25,243,841 29,079,757 54,323,598 Swedish Krona 184 1,325,054 1,325,238 Swiss Franc 406 - 406 Taiwan Dollar 1,198,993 - 1,198,993 Thailand Baht 8,308 1,274,460 1,282,768 US Dollar 35,982,092 17,789,401 53,771,493 155,633,613 80,129,459 235,763,072

Liabilities Australian Dollar (3,608,499) - (3,608,499) Euro (2,067,649) - (2,067,649) Hong Kong Dollar (5,866,668) - (5,866,668) Mexican Peso (2,015,988) - (2,015,988) New Zealand Dollar (1,959,478) - (1,959,478) Singapore Dollar (4,545,206) - (4,545,206) South African Rand (1,721,592) - (1,721,592) South Korean Won (314,334) - (314,334) Sterling (34,095) - (34,095) Swedish Krona (1,294,384) - (1,294,384) Swiss franc (6,029,493) - (6,029,493) Taiwan Dollar (3,238,059) - (3,238,059) Thailand Baht (1,407,510) - (1,407,510) US Dollar (45,803,136) - (45,803,136) (79,906,091) - (79,906,091)

151 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Global Sustainable Equity Fund

As at 31 October 2019 Monetary Non-monetary exposures exposures Total EUR EUR EUR Assets Australian Dollar 13,866 3,648,513 3,662,379 Canadian Dollar 6,959 2,418,564 2,425,523 Danish Krone 13 - 13 Euro 3,164,347 19,967,930 23,132,277 Hong Kong Dollar 216,107 2,506,245 2,722,352 Japanese Yen 5,498 10,553,460 10,558,958 Norwegian Krone 6,696 2,520,063 2,526,759 Sterling 2,477,637 4,333,131 6,810,768 Swedish Krona 81 - 81 Swiss Franc 91 - 91 Taiwan Dollar 292,990 3,485,118 3,778,108 US Dollar 217,870 60,050,869 60,268,739 6,402,155 109,483,893 115,886,048

Liabilities Euro (1,142,258) - (1,142,258) Norwegian Krone (355,768) - (355,768) US Dollar (555,187) - (555,187) (2,053,213) - (2,053,213)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total EUR EUR EUR Assets Australian Dollar 19,652 2,167,049 2,186,701 Canadian Dollar 2,493 1,909,074 1,911,567 Danish Krone 13 - 13 Euro 933,965 11,667,383 12,601,348 Hong Kong Dollar 11 1,766,367 1,766,378 Japanese Yen 164,074 7,096,755 7,260,829 Norwegian Krone 7,140 - 7,140 Sterling 153,770 3,507,013 3,660,783 Swedish Krona 89 - 89 Swiss Franc 189 - 189 Taiwan Dollar 657,109 2,007,521 2,664,630 US Dollar 2,163,910 43,550,535 45,714,445 4,102,415 73,671,697 77,774,112

Liabilities Euro (185,429) - (185,429) Japanese Yen (161,655) - (161,655) Sterling (169,945) - (169,945) (517,029) - (517,029)

152 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Global Diversified Growth Fund

As at 31 October 2019 Monetary Non-monetary exposures exposures Total EUR EUR EUR Assets Australian Dollar 501,163 446,363 947,526 Brazilian Real 126 - 126 Canadian Dollar 47,703 195,594 243,297 Danish Krone 2,054 - 2,054 Euro 38,359,201 5,574,226 43,933,427 Hong Kong Dollar 54,520 1,680,583 1,735,103 Indian Rupee 1,691,423 - 1,691,423 Indonesian Rupiah 1,684,046 - 1,684,046 Japanese Yen 310,255 1,676,960 1,987,215 Mexican Peso 1,142,766 - 1,142,766 New Zealand Dollar 153 - 153 Norwegian Krone 7,214 175,062 182,276 Philippines Peso - 274,747 274,747 Polish Zloty 26 - 26 Singapore Dollar 42,094 977,458 1,019,552 South African Rand 291 - 291 South Korean Won - 389,136 389,136 Sterling 5,043,154 10,453,776 15,496,930 Swedish Krona 3 - 3 Swiss Franc 8,886 252,542 261,428 Taiwan Dollar 566,191 437,602 1,003,793 Thailand Baht - 395,538 395,538 Turkish Lira 15 - 15 US Dollar 15,539,436 7,079,560 22,618,996 65,000,720 30,009,147 95,009,867

Liabilities Australian Dollar (926,392) - (926,392) Canadian Dollar (330,840) - (330,840) Euro (309,438) - (309,438) Hong Kong Dollar (1,776,923) - (1,776,923) Japanese Yen (1,919,945) - (1,919,945) Norwegian Krone (111,835) - (111,835) Philippines Peso (30,832) - (30,832) Singapore Dollar (3,164,311) - (3,164,311) South Korean Won (389,751) - (389,751) Sterling (3,083,025) - (3,083,025) Swiss Franc (77,154) - (77,154) Taiwan Dollar (2,088,910) - (2,088,910) Thailand Baht (446,302) - (446,302) US Dollar (23,112,308) - (23,112,308) (37,767,966) - (37,767,966)

153 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued) Foreign Currency Risk (continued) Global Diversified Growth Fund (continued)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total EUR EUR EUR Assets Australian Dollar 25,443 181,369 206,812 Brazilian Real 133 - 133 Canadian Dollar 151,420 1,223,771 1,375,191 Danish Krone 83,551 294,039 377,590 Euro 39,290,640 4,032,488 43,323,128 Hong Kong Dollar 11 3,359,331 3,359,342 Japanese Yen 837,307 3,583,902 4,421,209 Mexican Peso 714,073 473,471 1,187,544 New Turkish Lira 15 - 15 New Zealand Dollar 152 - 152 Norwegian Krone 49,116 383,806 432,922 Polish Zloty 26 - 26 Singapore Dollar 3,997 - 3,997 South African Rand 165 - 165 South Korean Won - 1,541,869 1,541,869 Sterling 15,501,677 16,957,922 32,459,599 Swedish Krona 10 - 10 Swiss Franc 88 - 88 Taiwan Dollar 424,417 707,174 1,131,591 Thailand Baht 6,165 913,453 919,618 US Dollar 17,925,653 10,498,812 28,424,465 75,014,059 44,151,407 119,165,466

Liabilities Australian Dollar (48,374) - (48,374) Canadian Dollar (1,288,100) - (1,288,100) Danish Krone (81,962) - (81,962) Euro (1,165,741) - (1,165,741) Hong Kong Dollar (3,367,805) - (3,367,805) Japanese Yen (646,360) - (646,360) Mexican Peso (1,267,598) - (1,267,598) Norwegian Krone (369,788) - (369,788) South Korean Won (1,561,323) - (1,561,323) Sterling (2,531,338) - (2,531,338) Swedish Krone (154,780) - (154,780) Swiss Franc (3,841,138) - (3,841,138) Taiwan Dollar (1,126,213) - (1,126,213) Thailand Baht (938,290) - (938,290) US Dollar (27,900,246) - (27,900,246) (46,289,056) - (46,289,056)

154 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Global Equity Market Neutral Fund

As at 31 October 2019 Monetary Non-monetary exposures exposures Total GBP GBP GBP Assets Australian Dollar 457 762,300 762,757 Brazilian Real 3,893 - 3,893 Canadian Dollar - 1,582,103 1,582,103 Danish Krone 4,209 974,667 978,876 Euro 26,113,187 5,353,089 31,466,276 Hong Kong Dollar - 3,456,900 3,456,900 Japanese Yen 689,865 7,906,360 8,596,225 Polish Zloty 10 - 10 Sterling 58,144,742 1,548,590 59,693,332 Swedish Krona 61 - 61 Swiss Franc 4,904 - 4,904 Taiwan Dollar - 1,193,565 1,193,565 US Dollar 959,474 14,128,081 15,011,218 85,920,802 36,905,655 122,826,457

Liabilities Australian Dollar (752,804) - (752,804) Canadian Dollar (1,572,079) - (1,572,079) Danish Krone (1,042,019) - (1,042,019) Euro (185,002) - (185,002) Hong Kong Dollar (3,256,049) - (3,256,049) Japanese Yen (8,696,037) - (8,696,037) Sterling (218,487) - (218,487) Swiss Franc (363) - (363) Taiwan Dollar (2,165,270) - (2,165,270) US Dollar (11,637,860) - (11,637,860) (29,525,970) - (29,525,970)

155 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Global Equity Market Neutral Fund (continued)

As at 31 October 2018 Monetary Non-monetary exposures exposures Total GBP GBP GBP Assets Australian Dollar 5,798 2,659,652 2,665,450 Canadian Dollar 2,467 1,941,665 1,944,132 Danish Krone - 2,177,622 2,177,622 Euro 18,453,319 9,564,183 28,017,502 Hong Kong Dollar 70,109 3,034,202 3,104,311 Japanese Yen 367,732 3,811,538 4,179,270 Sterling 86,681,881 - 86,681,881 Swedish Krona 11,885 - 11,885 Swiss Franc 175,089 - 175,089 Taiwan Dollar 57,002 - 57,002 US Dollar 3,998,941 29,781,670 33,780,611 109,824,223 52,970,532 162,794,755

Liabilities Australian Dollar (2,500,672) - (2,500,672) Canadian Dollar (2,003,117) - (2,003,117) Danish Krone (2,181,103) - (2,181,103) Euro (65,471) - (65,471) Hong Kong Dollar (3,003,199) - (3,003,199) Japanese Yen (3,738,370) - (3,738,370) Sterling (2,233,282) - (2,233,282) Swedish Krona (280,736) - (280,736) Swiss Franc (295,023) - (295,023) Taiwan Dollar (3,297,469) - (3,297,469) Thailand Baht (4,878) - (4,878) US Dollar (29,306,871) - (29,306,871) (48,910,191) - (48,910,191)

156 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Foreign Currency Risk (continued)

Short Dated High Yield Global Bond Fund

As at 31 October 2019 Monetary Non-monetary exposures exposures Total USD USD USD Assets Canadian Dollar 663,104 - 663,104 Euro 11,326,857 - 11,326,857 Sterling 45,499,888 - 45,499,888 US Dollar 27,068,804 - 27,068,804 84,558,653 - 84,558,653

Liabilities Canadian Dollar (660,717) - (660,717) Euro (10,369,192) - (10,369,192) Sterling (123,413) - (123,413) US Dollar (23,969,335) - (23,969,335) (35,122,657) - (35,122,657)

31 October 2018 Monetary Non-monetary exposures exposures Total USD USD USD Assets Euro 51,263,299 - 51,263,299 Sterling 171,825,736 - 171,825,736 US Dollar 148,923,269 - 148,923,269 372,012,304 - 372,012,304

Liabilities Euro (48,854,997) - (48,854,997) Sterling (792,645) - (792,645) US Dollar (96,875,038) - (96,875,038) (146,522,680) - (146,522,680)

157 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk Interest rate risk is the risk that the value of the Funds’ investments will fluctuate as a result of changes in interest rates.

All of the Funds, except the Global Sustainable Equity Fund, the Global Equity Income Fund, the Equity Market Neutral Plus Fund and the Global Equity Market Neutral Fund invest in fixed interest securities. The income from these Funds may be affected by changes to interest rates relevant to particular securities or as a result of the Directors being unable to secure similar returns on the expiry of contracts or sale of securities. The value of fixed interest securities may be affected by such movements in the future. Interest receivable on bank deposits and payable on bank overdrafts will be affected by fluctuations in interest rates, as will Floating Rate Bonds. All other assets and liabilities of the Funds are non-interest bearing.

The Funds will adjust their exposure to interest rate risk according to their views on how rates will move in the future. This may mean that at times the Funds may take on more of less risk depending on the view of the Investment Manager.

The interest rate profile for the relevant Funds is as follows:

Strategic Global Bond Fund

As at 31 October 2019 Floating Rate Fixed Rate Derivatives Financial Financial exposed to Assets Assets Interest rate risk Derivatives Total USD USD USD USD USD Currency Australian Dollar - - 49,055 - 49,055 Canadian Dollar - 14,472,351 - - 14,472,351 Euro 41,916,208 30,250,911 - - 72,167,119 Japanese Yen - - - 2,542,193 2,542,193 Sterling 25,709,473 51,116,972 30,267 - 76,856,712 US Dollar 30,421,048 119,134,787 315,821 3,624,521 153,496,177 Total Assets 98,046,729 214,975,021 395,143 6,166,714 319,583,607

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Liabilities Liabilities Interest rate risk Derivatives Total USD USD USD USD USD Currency Euro - - (282,768) (4,203,311) (4,486,079) Japanese Yen - - - (4,890,091) (4,890,091) US Dollar - - (170,508) (6,382,310) (6,552,818) - - (453,276) (15,475,712) (15,928,988)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Canadian Dollar 1.50 4.84 Euro 3.87 5.30 Sterling 4.24 10.12 US Dollar 3.39 12.15

158 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Strategic Global Bond Fund (continued)

As at 31 October 2018 Floating Rate Fixed Rate Derivatives Financial Financial exposed to Derivative Assets Assets Interest rate risk s Total USD USD USD USD USD Currency Australian Dollar - 7,737,821 - 99,230 7,837,051 Euro 49,376,820 43,389,955 - 4,190,757 96,957,532 Japanese Yen - 39,816,864 - 1,564,555 41,381,419 Sterling 34,862,064 116,088,228 - 3,481,530 154,431,822 US Dollar 16,267,224 216,913,009 749,410 - 233,929,643 100,506,108 423,945,877 749,410 9,336,072 534,537,467

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Derivative Liabilities Liabilities Interest rate risk s Total USD USD USD USD USD Currency Australian Dollar - - (16,979) - (16,979) Euro - - (381,136) (2,322,040) (2,703,176) Japanese Yen - - - (130,322) (130,322) Sterling - - (389,879) (264,353) (654,232) Swedish Krona - - - (752) (752) Swiss Franc - - - (6,725) (6,725) US Dollar - - (757,227) (988,398) (1,745,625) - - (1,545,221) (3,712,590) (5,257,811)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Australian Dollar 1.00 31.33 Euro 2.91 8.28 Japanese Yen 0.10 0.29 Sterling 4.03 12.71 US Dollar 2.32 8.21

159 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Investment Grade Global Bond Fund

As at 31 October 2019 Floating Rate Fixed Rate Derivatives Financial Financial exposed to Assets Assets Interest rate risk Derivatives Total USD USD USD USD USD Currency Euro 11,751,490 17,949,696 262,495 - 29,963,681 Japanese Yen - - - 1,081,164 1,081,164 Sterling 4,976,262 17,461,010 - - 22,437,272 US Dollar 14,425,463 66,800,063 17,617 - 81,243,143 Total Assets 31,153,215 102,210,769 280,112 1,081,164 134,725,260

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Liabilities Liabilities Interest rate risk Derivatives Total USD USD USD USD USD Currency Japanese Yen - - - (1,446,795) (1,446,795) Sterling - - (10,044) - (10,044) US Dollar - - (552,985) - (552,985) Total Liabilities - - (563,029) (1,446,795) (2,009,824)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Euro 2.09 10.06 Sterling 5.04 6.44 US Dollar 4.06 8.84

160 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Investment Grade Global Bond Fund (continued)

As at 31 October 2018 Floating Rate Fixed Rate Derivatives Financial Financial exposed to Assets Assets Interest rate risk Derivatives Total USD USD USD USD USD Currency Euro 24,129,982 32,401,719 1,276 1,664,630 58,197,607 Sterling 4,663,114 7,306,678 - 361,483 12,331,275 US Dollar 31,069,960 110,583,954 - - 141,653,914 59,863,056 150,292,351 1,276 2,026,113 212,182,796

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Liabilities Liabilities Interest rate risk Derivatives Total USD USD USD USD USD Currency Euro - - (98,989) (64,769) (163,758) Sterling - - (124,227) (334,296) (458,523) Swedish Krona - - - (29) (29) Swiss Franc - - - (51) (51) US Dollar - - (251,288) - (251,288) - - (474,504) (399,145) (873,649)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Euro 1.93 8.46 Sterling 6.28 9.77 US Dollar 3.84 8.23

161 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

High Yield Global Bond Fund

As at 31 October 2019 Floating Rate Fixed Rate Derivatives Financial Financial exposed to Assets Assets Interest rate risk Derivatives Total USD USD USD USD USD Currency Canadian Dollar - 1,740,368 - - 1,740,368 Euro 15,600,737 43,814,659 - - 59,415,396 Japanese Yen - - - 785,533 785,533 Sterling 4,046,445 13,608,842 - - 17,655,287 US Dollar 9,521,201 46,899,935 - - 56,421,136 Total Assets 29,168,383 106,063,804 - 785,533 136,017,720

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Liabilities Liabilities Interest rate risk Derivatives Total USD USD USD USD USD Currency Japanese Yen - - - (1,354,724) (1,354,724) Total Liabilities - - - (1,354,724) (1,354,724)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Canadian Dollar 6.63 3.21 Euro 4.59 1.30 Sterling 6.14 4.38 US Dollar 6.16 5.22

162 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

High Yield Global Bond Fund (continued)

As at 31 October 2018 Floating Rate Fixed Rate Derivatives Financial Financial exposed to Assets Assets Interest rate risk Derivatives Total USD USD USD USD USD Currency Canadian Dollar - 1,614,854 - 10,837 1,625,691 Euro 11,946,155 51,630,689 - 1,891,195 65,468,039 Sterling 3,743,892 22,438,493 - 695,611 26,877,996 Swiss Franc - - - 647 647 US Dollar - 85,955,107 - - 85,955,107 15,690,047 161,639,143 - 2,598,290 179,927,480

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Liabilities Liabilities Interest rate risk Derivatives Total USD USD USD USD USD Currency Euro - - - (190,859) (190,859) Sterling - - - (124,831) (124,831) Swedish Krona - - - (32) (32) Swiss Franc - - - (51,208) (51,208) - - - (366,930) (366,930)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Canadian Dollar 6.63 4.21 Euro 4.31 - Sterling 5.54 5.47 US Dollar 6.02 5.58

163 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Absolute Return Bond Fund

As at 31 October 2019

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Assets Assets Interest rate risk Derivatives Total GBP GBP GBP GBP GBP Currency Australian Dollar - - 90,991 - 90,991 Euro 65,536,796 10,607,134 - 4,202,071 80,346,001 Japanese Yen - - - 6,410,942 6,410,942 Sterling 147,408,250 246,140,298 - 126,109 393,674,657 US Dollar 21,082,257 27,000,565 674,212 3,526,409 52,283,443 Total Assets 234,027,303 283,747,997 765,203 14,265,531 532,806,034

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Liabilities Liabilities Interest rate risk Derivatives Total GBP GBP GBP GBP GBP Currency Euro - - (308,038) (12,134,545) (12,442,583) Japanese Yen - - - (1,211,774) (1,211,774) Sterling - - (121,080) (202,350) (323,430) Swedish Krona - - - (528,586) (528,586) US Dollar - - (468,256) (734,088) (1,202,344) Total Liabilities - - (897,374) (14,811,343) (15,708,717)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Euro 1.00 2.23 Sterling 5.89 1.72 US Dollar 4.76 2.19

164 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Absolute Return Bond Fund (continued)

As at 31 October 2018

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Assets Assets Interest rate risk Derivatives Total GBP GBP GBP GBP GBP Currency Australian Dollar - 16,024,779 80,353 345,042 16,450,174 Euro 95,680,461 14,436,302 - 11,432,868 121,549,631 Sterling 384,325,627 1,022,425,247 - 1,695,781 1,408,446,655 Swedish Krona - - - 331,540 331,540 US Dollar 48,390,034 17,529,556 2,346,674 16,930 68,283,194 528,396,122 1,070,415,884 2,427,027 13,822,161 1,615,061,194

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Liabilities Liabilities Interest rate risk Derivatives Total GBP GBP GBP GBP GBP Currency Australian Dollar - - - (229,244) (229,244) Euro - - (691,469) (19,413,240) (20,104,709) New Zealand Dollar - - - (1,557,037) (1,557,037) Sterling - - (1,558,601) (2,378,684) (3,937,285) Swiss Franc - - - (690) (690) US Dollar - - (4,150,888) (2,579,799) (6,730,687) - - (6,400,958) (26,158,694) (32,559,652)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Australian Dollar 1.00 31.33 Euro 3.00 4.18 Sterling 5.35 2.29 US Dollar 3.13 0.76

165 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Global Equity Income Fund*

As at 31 October 2019

Equities Derivatives Total USD USD USD Currency Australian Dollar 23,942,295 - 23,942,295 Euro 49,935,065 - 49,935,065 Hong Kong Dollar 31,377,106 - 31,377,106 Japanese Yen 25,599,512 152,086 25,751,598 Singapore Dollar 14,201,142 - 14,201,142 Sterling 47,079,320 - 47,079,320 Swiss Franc 32,328,999 - 32,328,999 Thailand Baht 8,537,456 - 8,537,456 US Dollar 248,306,775 - 248,306,775 481,307,670 152,086 481,459,756

Equities Derivatives Total USD USD USD Currency Japanese Yen - (53,552) (53,552) - (53,552) (53,552)

*The Global Equity Income Fund held no Fixed Rate Assets or Liabilities at 31 October 2019; therefore, there is no weighted average interest rate or average years to maturity information available for the Fund.

As at 31 October 2018

Equities Derivatives Total USD USD USD Currency Australian Dollar 18,754,184 - 18,754,184 Euro 60,065,444 6,293 60,071,737 Hong Kong Dollar 38,803,497 - 38,803,497 Japanese Yen 26,596,892 - 26,596,892 Singapore Dollar 9,132,857 - 9,132,857 Sterling 46,964,017 - 46,964,017 Swedish Krona 9,142,899 - 9,142,899 Thailand Baht 9,454,220 - 9,454,220 US Dollar 228,318,609 - 228,318,609 447,232,619 6,293 447,238,912

Equities Derivatives Total USD USD USD Currency Euro - (222,655) (222,655) - (222,655) (222,655)

* The Global Equity Income Fund held no Fixed Rate Assets or Liabilities at 31 October 2018; therefore, there is no weighted average interest rate or average years to maturity information available for the Fund.

166 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Absolute Return Bond Global Fund(2)

As at 31 October 2018

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Assets Assets Interest rate risk Derivatives Total GBP GBP GBP GBP GBP Currency Australian Dollar - 1,211,495 4,312 24,378 1,240,185 Euro 11,124,131 3,123,975 - 145,507 14,393,613 Sterling 28,412,018 59,730,829 - 89,876 88,232,723 Swedish Krona - - - 21,486 21,486 US Dollar 8,287,191 313,016 164,267 392 8,764,866 47,823,340 64,379,315 168,579 281,639 112,652,873

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Liabilities Liabilities Interest rate risk Derivatives Total GBP GBP GBP GBP GBP Currency Australian Dollar - - - (19,398) (19,398) Euro - - (47,284) (620,317) (667,601) New Zealand Dollar - - - (108,993) (108,993) Sterling - - (112,460) (140,456) (252,916) Swiss Franc - - - (28) (28) US Dollar - - (278,979) (225,460) (504,439) - - (438,723) (1,114,652) (1,553,375)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Australian Dollar 1.00 31.33 Euro 4.04 1.04 Sterling 5.17 2.65 US Dollar 2.25 0.05

(2) Kames Absolute Return Bond Global Fund closed on 30 October 2019.

167 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Absolute Return Bond Constrained Fund(2)

As at 31 October 2018

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Assets Assets Interest rate risk Derivatives Total EUR EUR EUR EUR EUR Currency Australian Dollar - 558,014 107 15,624 573,745 Euro 1,444,999 24,893,282 - 7,777 26,346,058 Sterling 4,929,400 23,245,370 - 38,186 28,212,956 Swedish Krona - - - 9,332 9,332 US Dollar 539,431 9,662,775 96,879 2,484 10,301,569 6,913,830 58,359,441 96,986 73,403 65,443,660

Floating Rate Fixed Rate Derivatives Financial Financial exposed to Liabilities Liabilities Interest rate risk Derivatives Total EUR EUR EUR EUR EUR Currency Australian Dollar - - - (10,698) (10,698) Euro - - (61,031) (120,614) (181,645) New Zealand Dollar - - - (70,123) (70,123) Sterling - - (50,380) (157,912) (208,292) Swedish Krona - - - (10) (10) Swiss Franc - - - (1,782) (1,782) US Dollar - - (107,366) (261,808) (369,174) - - (218,777) (622,947) (841,724)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Australian Dollar 1.00 31.33 Euro 2.98 1.71 Sterling 5.11 2.67 US Dollar 3.32 1.10

(2) Kames Absolute Return Bond Global Fund closed on 30 October 2019.

168 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Emerging Market Bond Opportunities Fund(1)

As at 31 October 2018

Floating Rate Fixed Rate Financial Financial Assets Assets Derivatives Total USD USD USD USD Currency US Dollar 971,392 39,672,807 - 40,644,199 971,392 39,672,807 - 40,644,199

Floating Rate Fixed Rate Financial Financial Assets Assets Derivatives Total USD USD USD USD Currency Euro - - (20) (20) Sterling - - (169) (169) - - (189) (189)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency US Dollar 6.87 7.55

(1) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019.

169 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Global Diversified Income Fund

As at 31 October 2019 Floating Derivatives Rate Fixed Rate exposed Financial Financial to Interest Assets Assets rate risk Equities Derivatives Total EUR EUR EUR EUR EUR EUR Currency Australian Dollar - - - 4,197,424 - 4,197,424 Canadian Dollar - 148,667 - - - 148,667 Euro 4,922,102 5,854,429 - 14,465,864 - 25,242,395 Hong Kong Dollar - - - 5,038,448 - 5,038,448 Indonesian Rupiah - 1,366,615 - - - 1,366,615 Japanese Yen - - - 11,056,713 714,498 11,771,211 Mexican Peso - 2,345,334 - - - 2,345,334 New Zealand Dollar - - - 2,088,943 - 2,088,943 Singapore Dollar - - - 7,638,443 - 7,638,443 South African Rand - 861,272 - - - 861,272 Sterling 6,110,894 4,142,827 4,301 26,830,457 - 37,088,479 Swiss Franc - - - 2,098,414 - 2,098,414 Thailand Baht - - - 1,301,669 - 1,301,669 US Dollar 9,314,116 34,141,553 - 23,706,463 - 67,162,132 Total Assets 20,347,112 48,860,697 4,301 98,422,838 714,498 168,349,446

As at 31 October 2019 Floating Derivatives Rate Fixed Rate exposed Financial Financial to Interest Liabilities Liabilities rate risk Equities Derivatives Total EUR EUR EUR EUR EUR EUR Currency Japanese Yen - - - - (454,620) (454,620) - - - - (454,620) (454,620)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Canadian Dollar 6.63 3.21 Euro 5.01 (9.09) Indonesian Rupiah 8.38 4.38 Mexican Peso 6.50 1.13 South African Rand 10.50 7.15 Sterling 5.64 7.29 US Dollar 3.97 4.78

170 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Global Diversified Income Fund (continued)

As at 31 October 2018 Floating Derivatives Rate Fixed Rate exposed Financial Financial to Interest Assets Assets rate risk Equities Derivatives Total EUR EUR EUR EUR EUR EUR Currency Australian Dollar - - - 3,608,894 - 3,608,894 Canadian Dollar - - - - 5 5 Euro 6,228,288 3,342,915 - 15,664,583 - 25,235,786 Hong Kong Dollar - - - 5,570,776 - 5,570,776 Indonesian Rupiah - 1,148,557 - - - 1,148,557 Japanese Yen - - - 8,206,503 70,963 8,277,466 Mexican Peso - 1,982,987 - - 91,560 2,074,547 New Zealand Dollar - - - 1,977,426 - 1,977,426 Singapore Dollar - - - 4,472,751 - 4,472,751 South African Rand - 1,072,207 - 643,604 18,816 1,734,627 South Korean Won - - - 481,264 - 481,264 Sterling 4,825,844 3,712,529 - 34,027,613 568,984 43,134,970 Swedish Krona - - - 1,325,054 11,562 1,336,616 Swiss Franc - - - - 3 3 Taiwan Dollar - - - - 6,286 6,286 Thailand Baht - - - 1,274,460 - 1,274,460 US Dollar 4,585,539 23,189,128 - 25,148,570 74,407 52,997,644 15,639,671 34,448,323 - 102,401,498 842,586 153,332,078

171 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Global Diversified Income Fund (continued)

As at 31 October 2018 Floating Derivatives Rate Fixed Rate exposed Financial Financial to Interest Liabilities Liabilities rate risk Equities Derivatives Total EUR EUR EUR EUR EUR EUR Currency Australian Dollar - - - - (56,054) (56,054) Hong Kong Dollar - - - - (117,536) (117,536) New Zealand Dollar - - - - (31,745) (31,745) Singapore Dollar - - - - (62,723) (62,723) South Korean Won - - - - (45,284) (45,284) Sterling - - (19,844) - (86,346) (106,190) Swedish Krona - - - - (10) (10) Swiss Franc - - - - (40,159) (40,159) Taiwan Dollar - - - - (122,362) (122,362) Thailand Baht - - - - (4,990) (4,990) US Dollar - - (108,328) - (1,382,317) (1,490,645) - - (128,172) - (1,949,526) (2,077,698)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Euro 6.19 - Indonesian Rupiah 8.38 5.38 Mexican Peso 6.90 0.57 South African Rand 10.50 8.15 Sterling 5.46 8.54 US Dollar 4.40 5.04

172 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Global Sustainable Equity Fund*

As at 31 October 2019 Equities Total EUR EUR Currency Australian Dollar 3,648,513 3,648,513 Canadian Dollar 2,418,564 2,418,564 Euro 19,967,930 19,967,930 Hong Kong Dollar 2,506,245 2,506,245 Japanese Yen 10,553,460 10,553,460 Norwegian Krone 2,520,063 2,520,063 Sterling 4,333,131 4,333,131 Taiwan Dollar 3,485,118 3,485,118 US Dollar 60,110,931 60,110,931 109,543,955 109,543,955

* Global Sustainable Equity Fund held no Fixed Rate Assets or Liabilities at 31 October 2019; therefore, there is no weighted average interest rate or average years to maturity information available for the Fund.

As at 31 October 2018 Equities Total EUR EUR Currency Australian Dollar 2,167,049 2,167,049 Canadian Dollar 1,909,074 1,909,074 Euro 11,667,383 11,667,383 Hong Kong Dollar 1,766,367 1,766,367 Japanese Yen 7,096,755 7,096,755 Sterling 3,507,013 3,507,013 Taiwan Dollar 2,007,521 2,007,521 US Dollar 43,550,535 43,550,535 73,671,697 73,671,697

* Global Sustainable Equity Fund held no Fixed Rate Assets or Liabilities at 31 October 2018; therefore, there is no weighted average interest rate or average years to maturity information available for the Fund.

173 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Global Diversified Growth Fund

As at 31 October 2019 Floating Rate Fixed Rate Financial Financial Investment Assets Assets Equities Derivatives Funds Total EUR EUR EUR EUR EUR EUR Currency Australian Dollar - - 913,516 - - 913,516 Canadian Dollar - - 195,594 - - 195,594 Euro 2,644,994 390,273 5,574,226 59,030 - 8,668,523 Hong Kong Dollar - - 1,680,583 - - 1,680,583 Japanese Yen - - 1,819,090 649,885 - 2,468,975 Mexican Peso - 873,767 - - - 873,767 Norwegian Krone - - 175,062 - - 175,062 Philippines Peso - - 274,747 - - 274,747 Singapore Dollar - - 977,458 - - 977,458 South Korean Won - - 389,136 - - 389,136 Sterling 766,576 1,161,738 11,818,531 - - 13,746,845 Swiss Franc - - 252,542 - - 252,542 Taiwan Dollar - - 437,602 - - 437,602 Thailand Baht - - 395,538 - - 395,538 US Dollar 2,264,854 5,689,153 9,685,726 41,406 3,507,477 21,188,616 Total Assets 5,676,424 8,114,931 34,589,351 750,321 3,507,477 52,638,504

Floating Rate Fixed Rate Financial Financial Liabilities Liabilities Equities Derivatives Total EUR EUR EUR EUR EUR Currency Japanese Yen - - - (868,308) (868,308) - - - (868,308) (868,308)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Euro 5.56 5.32 Mexican Peso 7.75 23.05 Sterling 6.36 5.15 US Dollar 4.49 17.35

174 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Global Diversified Growth Fund (continued)

As at 31 October 2018 Floating Rate Fixed Rate Financial Financial Assets Assets Equities Derivatives Total EUR EUR EUR EUR EUR Currency Australian Dollar - - 181,369 - 181,369 Canadian Dollar - - 1,223,771 2,361 1,226,132 Danish Krone - - 294,039 - 294,039 Euro 1,562,806 - 4,721,606 - 6,284,412 Hong Kong Dollar - - 3,359,331 1,344 3,360,675 Japanese Yen - - 3,583,902 26,963 3,610,865 Mexican Peso - 682,597 473,471 49,199 1,205,267 Norwegian Krone - - 383,806 8,311 392,117 South Korean Won - - 1,541,869 11,894 1,553,763 Sterling 779,212 - 19,490,288 231,641 20,501,141 Swedish Krona - - - 542 542 Swiss Franc - - - 490 490 Taiwan Dollar - - 707,174 9,876 717,050 Thailand Baht - - 913,453 - 913,453 US Dollar 1,434,622 8,914,803 15,839,142 58,522 26,247,089 3,776,640 9,597,400 52,713,221 401,143 66,488,404

Floating Rate Fixed Rate Financial Financial Liabilities Liabilities Equities Derivatives Total EUR EUR EUR EUR EUR Currency Canadian Dollar - - - (15,727) (15,727) Euro - - - (79,335) (79,335) Hong Kong Dollar - - - (58,190) (58,190) Japanese Yen - - - (61) (61) Norwegian Krone - - - (9,493) (9,493) Sterling - - - (39,054) (39,054) Swiss Franc - - - (17,871) (17,871) Taiwan Dollar - - - (26,065) (26,065) Thailand Baht - - - (7,624) (7,624) US Dollar - - - (606,081) (606,081) - - - (859,501) (859,501)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Mexican Peso 7.75 24.05 US Dollar 2.75 1.77 175 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Global Equity Market Neutral Fund*

As at 31 October 2019

Equities Derivatives Total GBP GBP GBP Currency Australian Dollar 762,300 - 762,300 Brazilian Real - 3,893 3,893 Canadian Dollar 1,582,103 7,492 1,589,595 Danish Krone 974,667 - 974,667 Euro 5,353,089 26,196 5,379,285 Hong Kong Dollar 3,456,900 - 3,456,900 Japanese Yen 7,906,360 231,453 8,137,813 Sterling 1,548,590 195,587 1,744,177 Swiss Franc - 4,904 4,904 Taiwan Dollar 1,193,565 - 1,193,565 US Dollar 14,128,081 195,135 14,323,216 36,905,655 664,660 37,570,315

Equities Derivatives Total GBP GBP GBP Currency Australian Dollar - (8,173) (8,173) Canadian Dollar - (34,450) (34,450) Danish Krone - (61,564) (61,564) Euro - (165,024) (165,024) Japanese Yen - (284,836) (284,836) Sterling - (127,006) (127,006) Taiwan Dollar - (23,828) (23,828) US Dollar - (237,700) (237,700) - (942,581) (942,581)

* Global Equity Market Neutral Fund held no Fixed Rate Assets or Liabilities at 31 October 2019; therefore, there is no weighted average interest rate or average years to maturity information available for the Fund.

176 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Global Equity Market Neutral Fund* (continued)

As at 31 October 2018

Equities Derivatives Total GBP GBP GBP Currency Australian Dollar 2,659,652 4,405 2,664,057 Canadian Dollar 1,941,665 - 1,941,665 Danish Krone 2,177,622 90 2,177,712 Euro 9,564,183 163,193 9,727,376 Hong Kong Dollar 3,034,202 - 3,034,202 Japanese Yen 3,811,538 232,992 4,044,530 Sterling - 81,844 81,844 Swedish Krona - 6 6 Taiwan Dollar - 64,639 64,639 US Dollar 29,781,670 946,189 30,727,859 52,970,532 1,493,358 54,463,890

Equities Derivatives Total GBP GBP GBP Currency Australian Dollar - (18,024) (18,024) Canadian Dollar - (21,210) (21,210) Euro - (346) (346) Hong Kong Dollar - (14,992) (14,992) Japanese Yen - (127,210) (127,210) Sterling - (284,941) (284,941) Swedish Krona - (280,178) (280,178) Swiss Franc - (293,977) (293,977) Taiwan Dollar - (24,377) (24,377) US Dollar - (973,136) (973,136) - (2,038,391) (2,038,391)

* Global Equity Market Neutral Fund held no Fixed Rate Assets or Liabilities at 31 October 2018; therefore, there is no weighted average interest rate or average years to maturity information available for the Fund.

177 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Short Dated High Yield Global Bond Fund

As at 31 October 2019 Floating Rate Fixed Rate Financial Financial Assets Assets Derivatives Total USD USD USD USD Currency Canadian Dollar - 662,997 - 662,997 Euro 1,029,573 10,220,452 - 11,250,025 Japanese Yen - - 402,375 402,375 Sterling 1,316,233 8,952,123 - 10,268,356 US Dollar 613,974 23,818,767 - 24,432,741 2,959,780 43,654,339 402,375 47,016,494

Floating Rate Fixed Rate Financial Financial Liabilities Assets Derivatives Total USD USD USD USD Currency Japanese Yen - - (650,863) (650,863) - - (650,863) (650,863)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Canadian Dollar 6.63 3.21 Euro 4.35 3.30 Sterling 5.89 2.32 US Dollar 5.48 2.60

178 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Interest Rate Risk (continued)

Short Dated High Yield Global Bond Fund (continued)

As at 31 October 2018 Floating Rate Fixed Rate Financial Financial Assets Assets Derivatives Total USD USD USD USD Currency Euro - 51,076,455 1,241,602 52,318,057 Sterling 3,902,319 21,739,855 574,974 26,217,148 US Dollar 2,193,320 136,477,121 - 138,670,441 6,095,639 209,293,431 1,816,576 217,205,646

Floating Rate Fixed Rate Financial Financial Liabilities Assets Derivatives Total USD USD USD USD Currency Euro - - (4,227) (4,227) Sterling - - (394,430) (394,430) - - (398,657) (398,657)

Weighted Average Average Years to Interest Rate Maturity % No. of Years Currency Euro 4.37 3.53 Sterling 5.82 3.29 US Dollar 5.45 2.94

Liquidity Risk Liquidity risk is defined as the risk that the Company may not be able to settle or meet its obligations on time or at a reasonable price. The Company is exposed to daily cash redemptions of Redeemable Participating Shares. Redeemable Participating Shares are redeemed on demand at the holder’s option based on the Company’s net assets value per share at the time of redemption. The Redeemable Participating Shares are carried at the redemption amount that is payable at the reporting date if the holder exercises the right to put the share back to the Company. The assets of the Company are considered to be readily realisable. Assets from a Fund may need to be sold if insufficient cash is available to finance redemptions.

The Company manages its liquidity risk by investing primarily in marketable securities.

The Company may repurchase some proportion or all shares held by an investor at the Repurchase Price on the relevant Dealing Day, subject to the following exceptions:

(a) Where the total of repurchase requests on any Dealing Day exceeds 10% of the Net Asset Value of shares of any Fund in issue at the Valuation Point, the Company may scale down pro rata the number of shares to be repurchased in response to each request to ensure that the 10% limit is not exceeded. Any unfulfilled balance of repurchase requests will be carried forward to the next Dealing Day and so on thereafter until each request has been dealt with in full. Requests for repurchase that have been carried forward from an earlier Dealing Day will be dealt with in priority to later requests.

179 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Liquidity Risk (continued)

(b) If in respect of any single repurchase, monies amount to more than 5% of the Net Asset Value of the Fund at the Valuation Point for the Dealing Day, the Company has the power to divide in specie all or any part of the Assets of the relevant Fund, and has the right to elect by notice in writing to the investor to appropriate and transfer Assets to him in full or part satisfaction of the Repurchase Price.

The table below analyses each of the Fund’s financial liabilities into relevant maturity groupings based on the remaining period at the Statement of Financial Position date to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant. Strategic Global Bond Fund Less than One to Greater than One Month Three Months Three Months USD USD USD As at 31 October 2019 Financial Liabilities at Fair Value Through Profit or Loss - 15,928,988 - Overdrawn cash and cash equivalents 183 - - Other Payables 6,704,535 - - Due to Shareholders 53,333 - - Other Liabilities 113,947 - - Redeemable Participating Shares 325,314,556 - - Total financial liabilities 332,186,554 15,928,988 -

As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 5,257,811 - Overdrawn cash and cash equivalents 14,924,988 - - Other Payables 22,181,006 - - Due to Shareholders 723,290 - - Other Liabilities 281,834 - - Redeemable Participating Shares 550,433,532 - - Total financial liabilities 588,544,650 5,257,811 -

Investment Grade Global Bond Fund Less than One to Greater than One Month Three Months Three Months USD USD USD As at 31 October 2019 Financial Liabilities at Fair Value Through Profit or Loss - 2,009,824 - Overdrawn cash and cash equivalents - - - Other Payables 6,575,845 - - Due to Shareholders 321,364 - - Other Liabilities 18,167 - - Redeemable Participating Shares 144,949,635 - - Total financial liabilities 151,865,011 2,009,824 -

180 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Liquidity Risk (continued)

Investment Grade Global Bond Fund Less than One to Greater than (continued) One Month Three Months Three Months USD USD USD As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 873,649 - Overdrawn cash and cash equivalents 4,200,971 - - Other Payables 7,260,013 - - Due to Shareholders 2,521,923 - - Other Liabilities 125,231 - - Redeemable Participating Shares 238,871,983 - - Total financial liabilities 252,980,121 873,649 -

High Yield Global Bond Fund Less than One to Greater than One Month Three Months Three Months USD USD USD As at 31 October 2019 Financial Liabilities at Fair Value Through Profit or Loss - 1,354,724 - Overdrawn cash and cash equivalents 928 - - Other Payables 4,704,818 - - Due to Shareholders 44,899 - - Other Liabilities 64,592 - - Redeemable Participating Shares 139,384,227 - - Total financial liabilities 144,199,464 1,354,724 -

As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 366,930 - Overdrawn cash and cash equivalents 3,043,873 - - Other Payables 4,373,012 - - Due to Shareholders 840,330 - - Other Liabilities 96,481 - - Redeemable Participating Shares 181,870,169 - - Total financial liabilities 190,223,865 366,930 -

Absolute Return Bond Fund Less than One to Greater than One Month Three Months Three Months GBP GBP GBP As at 31 October 2019 Financial Liabilities at Fair Value Through Profit or Loss - 15,708,717 - Overdrawn cash and cash equivalents 16 - - Other Payables 13,497,471 - - Due to Shareholders 3,254,874 - - Other Liabilities 42,104 - - Redeemable Participating Shares 555,206,061 - - Total financial liabilities 572,000,526 15,708,717 -

181 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Liquidity Risk (continued)

Absolute Return Bond Fund Less than One to Greater than (continued) One Month Three Months Three Months GBP GBP GBP As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 32,559,652 - Overdrawn cash and cash equivalents 902,894 - - Other Payables 13,163,876 - - Due to Shareholders 869,652 - - Other Liabilities 72,800 - - Redeemable Participating Shares 1,781,775,803 - - Total financial liabilities 1,796,785,025 32,559,652 -

Global Equity Income Fund Less than One to Greater than One Month Three Months Three Months USD USD USD As at 31 October 2019 Financial Liabilities at Fair Value Through Profit or Loss - 53,552 - Other Payables 1,928,795 - - Due to Shareholders 509,982 - - Other Liabilities 6,000 - - Redeemable Participating Shares 493,829,858 - - Total financial liabilities 496,274,635 53,552 -

As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 222,655 - Overdrawn cash and cash equivalents 1,861,158 - - Other Payables 1,435,197 - - Due to Shareholders 61,109 - - Other Liabilities 13,300 - - Redeemable Participating Shares 454,214,205 - - Total financial liabilities 457,584,969 222,655 -

182 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Liquidity Risk (continued)

Absolute Return Bond Global Fund(2) Less than One to Greater than One Month Three Months Three Months GBP GBP GBP As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 1,553,375 - Overdrawn cash and cash equivalents 7,393 - - Other Payables 537,551 - - Due to Shareholders 306 - - Other Liabilities 51,841 - - Redeemable Participating Shares 124,740,251 - - Total financial liabilities 125,337,342 1,553,375 -

Absolute Return Bond Constrained Fund(2) Less than One to Greater than One Month Three Months Three Months EUR EUR EUR As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 841,724 - Other Payables 238,515 - - Other Liabilities 319 - - Redeemable Participating Shares 68,686,584 - - Total financial liabilities 68,925,418 841,724 -

Emerging Market Bond Opportunities Fund(1) Less than One to Greater than One Month Three Months Three Months USD USD USD

As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 189 - Other Payables 82,642 - - Other Liabilities 17,323 - - Redeemable Participating Shares 46,389,995 - - Total financial liabilities 46,489,960 189 -

(1) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. (2) Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

183 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Liquidity Risk (continued)

Global Diversified Income Fund Less than One to Greater than One Month Three Months Three Months EUR EUR EUR

As at 31 October 2019 Financial Liabilities at Fair Value Through Profit or Loss - 454,620 - Overdrawn cash and cash equivalents 180,883 - - Other Payables 3,494,597 - - Due to Shareholders 2,037 - - Other Liabilities 96,960 - - Redeemable Participating Shares 171,632,428 - - Total financial liabilities 175,406,905 454,620 -

As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 2,077,698 - Overdrawn cash and cash equivalents 746,149 - - Other Payables 1,784,601 - - Due to Shareholders 644,284 - - Other Liabilities 57,510 - - Redeemable Participating Shares 155,856,981 - - Total financial liabilities 159,089,525 2,077,698 -

Global Sustainable Equity Fund Less than One to Greater than One Month Three Months Three Months EUR EUR EUR As at 31 October 2019 Financial Liabilities at Fair Value Through Profit or Loss - - - Other Payables 2,015,298 - - Due to Shareholders 30,311 - - Other Liabilities 37,493 - - Redeemable Participating Shares 113,832,835 - - Total financial liabilities 115,915,937 - -

As at 31 October 2018 Financial Liabilities at Fair Value Through - - - OtherProfit Payables or Loss 298,559 - - Due to Shareholder 169,378 - - Other Liabilities 14,269 - - Redeemable Participating Shares 77,257,083 - - Total financial liabilities 77,739,289 - -

184 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Liquidity Risk (continued)

Global Diversified Growth Fund Less than One to Greater than One Month Three Months Three Months EUR EUR EUR As at 31 October 2019 Financial Liabilities at Fair Value Through Profit or Loss - 868,308 - Overdrawn cash and cash equivalents - - - Other Payables 936,144 - - Due to Shareholders 73,130 - - Other Liabilities 37,547 - - Redeemable Participating Shares 57,241,901 - - Total financial liabilities 58,288,722 868,308 -

As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 859,501 - Overdrawn cash and cash equivalents 487,260 - - Other Payables 16,154,334 - - Due to Shareholders 23,779 - - Other Liabilities 31,077 - - Redeemable Participating Shares 72,876,410 - - Total financial liabilities 89,572,860 859,501 -

Global Equity Market Neutral Fund Less than One to Greater than One Month Three Months Three Months GBP GBP GBP

As at 31 October 2019 Financial Liabilities at Fair Value Through Profit or Loss - 942,581 - Overdrawn cash and cash equivalents 2 - - Other Payables 3,702,998 - - Due to Shareholders 42,347 - - Other Liabilities 103,671 - - Redeemable Participating Shares 93,300,487 - - Total financial liabilities 97,149,505 942,581 -

As at 31 October 2018 Financial Liabilities at Fair Value Through - 2,038,391 - OverdrawnProfit or Loss cash and cash equivalents 68,818 - - Other Payables 2,912,680 - - Due to Shareholders 1,800,680 - - Other Liabilities 120,475 - - Redeemable Participating Shares 113,884,564 - - Total financial liabilities 118,787,217 2,038,391 -

185 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued) Liquidity Risk (continued)

Short Dated High Yield Global Bond Fund Less than One to Greater than One Month Three Months Three Months As at 31 October 2019 USD USD USD Financial Liabilities at Fair Value Through Profit or Loss - 650,863 - Overdrawn cash and cash equivalents - - - Other Payables 2,580,301 - - Due to Shareholders 153,851 - - Other Liabilities 187,007 - - Redeemable Participating Shares 49,435,996 - - Total financial liabilities 52,357,155 650,863 -

As at 31 October 2018 Financial Liabilities at Fair Value Through Profit or Loss - 398,657 - Overdrawn cash and cash equivalents 792,842 - - Other Payables 3,370,698 - - Due to Shareholders 59,043 - - Other Liabilities 79,564 - - Redeemable Participating Shares 225,489,624 - - Total financial liabilities 229,791,771 398,657 -

Credit Risk Certain transactions in securities that the Funds enter into expose them to the risk that the counterparty will not deliver the investment for a purchase, or cash for a sale after the Funds have fulfilled their responsibility. The Funds only buy and sell investments through brokers, which have been approved by the Directors as an acceptable counterparty. In addition, limits are set to the exposure to any individual broker that may exist at any time and changes to brokers’ financial ratings are reviewed.

The table below shows the credit ratings of the portfolios (bonds and cash and cash equivalents) held by the Funds using Kames composite rating. The NR positions include equities and non rated bonds.

Strategic Global Bond Fund 31 October 2019 31 October 2018 Ratings % Portfolio Ratings % Portfolio AAA 22.20 AAA 29.80 AA 3.80 AA 8.87 A 12.50 A 14.92 BBB 26.30 BBB 20.52 BB 14.40 BB 13.73 B 14.60 B 5.80 N/R High Yield 1.80 N/R High Yield 1.76 Cash 4.40 Cash 4.59

186 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued) Credit Risk (continued)

Investment Grade Global Bond Fund 31 October 2019 31 October 2018 Ratings % Portfolio Ratings % Portfolio AAA 0.90 AAA 0.83 AA 3.90 AA 1.46 A 25.60 A 22.08 BBB 55.40 BBB 53.05 BB 5.30 BB 7.58 B 0.80 B 0.48 N/R High Yield 1.60 N/R High Yield 11.45 Cash 6.50 Cash -

High Yield Global Bond Fund 31 October 2019 31 October 2018 Ratings % Portfolio Ratings % Portfolio BBB 2.80 BBB 4.79 BB 41.20 BB 42.25 B 44.40 B 46.38 CCC 6.10 CCC 3.27 N/R High Yield 3.90 N/R High Yield 1.91 Cash 1.60 Cash 1.40

Absolute Return Bond Fund 31 October 2019 31 October 2018 Ratings % Portfolio Ratings % Portfolio AAA - AAA 0.89 AA - AA 5.40 A 7.30 A 11.52 BBB 70.60 BBB 54.23 BB 11.00 BB 14.39 B 1.20 B 0.73 N/R High Yield 4.00 N/R High Yield 3.83 Cash 5.80 Cash 9.01

Absolute Return Bond Constrained Absolute Return Bond Global Fund(2) Fund(2) 31 October 2018 31 October 2018 Ratings % Portfolio Ratings % Portfolio AAA 0.96 AAA 0.81 AA 1.91 AA 2.70 A 13.93 A 24.52 BBB 58.07 BBB 60.31 BB 14.23 BB 6.50 B 2.19 B 1.34 Cash 8.71 Cash 3.83

(2) Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

187 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Credit Risk (continued)

Emerging Market Bond Opportunities Fund (1) 31 October 2018 Ratings % Portfolio AAA 0.96 AA 1.91 A 13.93 BBB 58.07 BB 14.23 B 2.19 Cash 8.71

Global Diversified Income Fund 31 October 2019 31 October 2018 Ratings % Portfolio Ratings % Portfolio AAA 8.31 AAA 5.70 AA 0.80 AA - A 0.51 A 1.30 BBB 14.28 BBB 9.20 BB 7.68 BB 8.10 B 8.43 B 6.20 N/R Equities & Bonds 57.12 N/R 2.00 Cash 2.87 Cash 67.50

Global Diversified Growth Fund 31 October 2019 31 October 2018 Ratings % Portfolio Ratings % Portfolio AAA 3.80 AAA 10.90 AA 0.68 AA - A - A 1.00 BBB 7.86 BBB 1.50 BB 6.73 BB 3.30 B 5.27 B 1.30 N/R Equities & Bonds 74.92 N/R - Cash 0.74 Cash 82.00

Global Equity Market Neutral Fund 31 October 2019 31 October 2018 Ratings % Portfolio Ratings % Portfolio N/R Equities 39.40 N/R High Yield - Cash 60.60 Cash 100.00

Short Dated High Yield Global Bond Fund 31 October 2019 31 October 2018 Ratings % Portfolio Ratings % Portfolio BBB 16.10 BBB 11.74 BB 50.20 BB 53.83 B 29.00 B 31.03 CCC - CCC 3.39 N/R High Yield 0.80 N/R High Yield - Cash 3.80 Cash - (1) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019

188 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

12. Risks Associated with Financial Instruments (continued)

Credit Risk (continued)

The Company has granted the Depositary a specific lien, and the right to grant such lien, to Citibank N.A., London Branch on particular securities, which, in accordance with the Company’s specific instructions, have been purchased or sold for the account of the Company. The Depositary or Citibank N.A., London Branch has, in its absolute discretion, extended or granted financial accommodation, or otherwise advanced moneys to the Company for the purposes of such purchase or sale, until satisfaction or discharge of all liabilities of the Company to the Depositary, including any fees, expenses or credit exposures incurred in connection with the such purchase or sale.

Substantially all of the assets of the Funds are held by the Depositary in segregated accounts in each Fund’s name. Bankruptcy or insolvency of the Depositary may cause a Fund’s rights with respect to securities held by the Depositary to be delayed. The Investment Managers monitor this risk by monitoring the credit quality and financial positions of the Depositary that the Fund/Company uses.

Cash is held with Citibank, N.A. London as Depositary with the exception of margin cash which is held with Deutsche Bank AG, Goldman Sachs, Merrill Lynch and UBS Limited.

The Funds also hold pledged and received collateral. Details of Counterparties to these derivative positions are disclosed in the Portfolio of Investments for the Funds, respectively.

The Strategic Global Bond Fund and Absolute Return Bond Fund hold Credit Default Swaps. The Company’s maximum gross exposure to credit risk is approximately the carrying value of the financial assets plus nominal value of the credit default swaps (protection sold) in the Statement of Financial Position. For Credit Default Swaps in which the Company is selling protection the total credit exposure of Credit Default Swaps (protection sold) is EUR 121,000,000 (31 October 2018: EUR 507,000,000) and USD 104,000,000 (31 October 2018: USD 14,000,000) as at 31 October 2019. The percentage of these securities’ market values over the net asset of each relevant Fund is disclosed in the Portfolio of Investments.

The Kames Composite Rating uses ratings from Moody’s and Fitch. If there is no rating from any of the agencies, the IBOXX rating is used as the Kames Composite rating. A score is assigned to each rating based on an IBOXX static table and the average score is calculated and translated to a rating based on the same IBOXX static table.

The IBOXX rating was not used as at 31 October 2019 and 31 October 2018.

189 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

13. Global Derivative Exposure The Investment Manager has assessed the risk profiles of the Funds on the basis of the Investment policy, strategy and the use of Financial Derivative Instruments. Based on the risk profile, the Investment Manager has determined that the method for the calculation of the global exposure to financial derivative instruments for all Funds will be the Value-at-Risk (“VaR”) approach. Value at Risk (VaR), as a figure, is the maximum loss not exceeded with a given probability defined as the confidence level, over a given period of time. VaR is widely applied in finance for quantitative risk management for many types of risk. As the VaR analysis is presented in the 2019 financial statements along with the 2018 comparatives, sensitivity analysis on interest rate risk, market price risk and currency risk is not required. The Investment Manager reviews the levels of investment risk on a no less than monthly basis, with particular emphasis on VaR and leverage, where the latter exists. The Strategic Global Bond Fund, the Investment Grade Global Bond Fund, the High Yield Global Bond Fund, the Absolute Return Bond Fund, the Active Long Dated Bond Fund, the Equity Market Neutral Plus Fund, the Equity Market Neutral Fund, the Absolute Return Bond Global Fund, the Absolute Return Bond Constrained Fund, the Emerging Market Bond Opportunities Fund, the Global Diversified Income Fund, the Global Diversified Growth Fund, the Global Equity Market Neutral Fund and the Short Dated High Yield Global Bond Fund use the absolute VaR approach. The Global Equity Income Fund and the Global Sustainable Equity Fund uses the relative VaR approach. VaR has three parameters:  The time horizon (period) of the VaR. The maximum loss is considered over this period. Typical periods using VaR are 1 day, 10 days, or 1 month.

 The confidence level is the interval estimate in which the VaR would not be expected to exceed the maximum loss. Commonly used confidence levels are 99% and 95%. (Confidence levels are not indications of probabilities.) Here a 95% confidence interval is used (31 October 2018: 95%).

 Calculation methods used are parametrical (variance-covariance approach), historical or Monte Carlo. In this case the investment manager has utilised the historical approach. Limitations Whilst VaR is a good general risk measure it is acknowledged it does have certain limitations, including:  The measure is a point-in-time calculation, reflecting positions as recorded at that date, which do not necessarily reflect the risk positions held at any other time.

 VaR is a statistical estimation and therefore it is possible that there could be, in any period, a greater number of days in which losses could exceed the calculated VaR than implied by the confidence level.

 Although losses are not expected to exceed the calculated VaR on 95% of occasions, on the other 5% of occasions losses will be greater and might be substantially greater than the calculated VaR.

 The period over which positions are expected to be held may differ and so will the modelled losses incurred.

 A look back period of 5 financial year means that any return that has not been evidenced in this time period will not be present in the distribution.

190 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

13. Global Derivative Exposure (continued)

31 October 2019 VaR Confidence Holding VaR Level Interval (%) Period VaR (%) Amount

Strategic Global Bond Fund 14.10% 95% 1 Month 1.48% 4,769,541 Investment Grade Global Bond Fund 14.10% 95% 1 Month 1.93% 2,765,243 High Yield Global Bond Fund 14.10% 95% 1 Month 0.99% 1,372,268 Absolute Return Bond Fund 7.10% 95% 1 Month 0.42% 2,336,973 Global Diversified Income Fund 14.10% 95% 1 Month 2.50% 4,268,900 Global Diversified Growth Fund 14.10% 95% 1 Month 2.61% 1,489,640 Global Equity Market Neutral Fund 3.50% 95% 1 Month 1.50% 1,394,091 Short Dated High Yield Global Bond Fund 14.10% 95% 1 Month 0.53% 266,372

31 October 2018 VaR Confidence Holding VaR Level Interval (%) Period VaR (%) Amount

Strategic Global Bond Fund 14.10% 95% 1 Month 0.82% 4,481,003 Investment Grade Global Bond Fund 14.10% 95% 1 Month 1.48% 3,541,099 High Yield Global Bond Fund 14.10% 95% 1 Month 1.23% 2,226,254 Absolute Return Bond Fund 7.10% 95% 1 Month 0.34% 6,079,119 Absolute Return Bond Global Fund 7.10% 95% 1 Month 0.29% 359,720 Absolute Return Bond Constrained Fund 7.10% 95% 1 Month 0.25% 171,640 Emerging Market Bond Opportunities Fund 14.10% 95% 1 Month 2.40% 1,124,298 Global Diversified Income Fund 14.10% 95% 1 Month 2.56% 3,956,578 Global Diversified Growth Fund 14.10% 95% 1 Month 2.74% 2,002,371 Global Equity Market Neutral Fund 3.50% 95% 1 Month 1.51% 1,720,924 Short Dated High Yield Global Bond Fund 14.10% 95% 1 Month 0.73% 1,665,814

Relative VaR (VaR of the Fund divided by the VaR of the Benchmark*) is as follows:

31 October 2019 Confidence Holding VaR VaR Level Interval (%) Period VaR (%) Amount Global Equity Income Fund 2 * Bmrk VAR 95% 1 Month 0.85 22,503,119 Global Sustainable Equity Fund 2 * Bmrk VAR 95% 1 Month 1.14 7,296,299

Confidence Holding VaR VaR Level VaR (%) 31 October 2018 Interval (%) Period Amount Global Equity Income Fund 2 * Bmrk VAR 95% 1 Month 0.88 19,482,255 Global Sustainable Equity Fund 2 * Bmrk VAR 95% 1 Month 1.25 5,043,978

* The benchmark for the Global Equity Income Fund and the Global Sustainable Equity Fund is the MSCI World AC Index.

Derivatives Some of the Funds may also enter into derivative transactions in the form of contracts for difference, forward foreign currency contracts, swaps, futures. Forward foreign currency contracts are used to manage currency risk arising from holdings of overseas securities, contracts for difference, swaps (including Credit Default Swaps), options and future contracts are used to manage market risks arising from the Funds investment activities. The Absolute Return Bond Fund and the Global Equity Market Neutral Fund enter into financial derivative instruments (including forward foreign currency contracts, futures, and swaps) for investment purposes.

191 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

14. Related Parties Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions or if one party is a member of the key management personnel of the other party.

The following are related parties under FRS102: * Directors of the Company as listed in the Directory. * The Investment Manager, Distributor & Promoter, Kames Capital Plc. * Partially delegated Investment Manager, Aegon Investment Management BV. * Stuart Donald, a senior employee of the Investment Manager. * Mike Kirby, a Director and majority shareholder of KB Associates, a firm which provides consultancy, VAT reporting and money laundering reporting officer services to the Company. * Scottish Equitable and Kames Capital Plc. Both entities have the same ultimate parent in the Aegon group. The Investment Manager is under common control with both entities, and both have invested in one or more of the Funds. Investment Manager Fees, Performance Fee, Directors’ Fees and Depositary Fees are disclosed in Note 11.

The fees paid by the Company for the financial year ended 31 October 2019 to KB Associates for consultancy, VAT reporting and money laundering reporting officer services amounted to USD 125,190 (31 October 2018: USD 85,458). Fees Payable as at 31 October 2019 are 19,684 (31 October 2018: Nil).

During the financial year Scottish Equitable had subscriptions of USD 108,019,435 (31 October 2018: USD 1,606,294) and redemptions of USD 258,766,724 (31 October 2018: USD 150,152,923) and Kames Capital Plc had subscriptions of USD 97,923 (31 October 2018: USD 200,185) and redemptions of USD 656,667 (31 October 2018: USD 727,343).

As at 31 October 2019 Scottish Equitable held total shares of 40,556,351 (31 October 2018: 49,488,758) with a value of USD 644,299,033 (31 October 2018: USD 622,159,121) and Kames Capital Plc held total shares of 49,827 (31 October 2018: 92,040) with a value of USD 560,867 (31 October 2018: USD 1,044,550).

Total redemption of Absolute Return Bond Global Fund for the amount of GBP 130,517,622 during the financial year ended 31 October 2019 includes in-specie transactions to the value of GBP 50,802,019.

Total redemption of Global Diversified Income Fund for the amount of EUR 62,991,376 during the financial year ended 31 October 2019 includes in-specie transactions to the value of EUR 36,948,651 (31 October 2018: Total issuance of Global Diversified Income Fund for the amount of EUR 35,082,355 during the financial year ended 31 October 2018 includes in-specie transactions to the value of EUR 18,244,212). The following lists the number of shareholders that as at 31 October 2019 and 31 October 2018 hold more than 20% of shares in each Fund based on the relevant Fund’s share value compared to the total Net Asset Value of each Fund:

Number of shareholders 31 October 2019 31 October 2018 Strategic Global Bond Fund 1 1 Investment Grade Global Bond Fund 2 2 High Yield Global Bond Fund 1 - Absolute Return Bond Fund - 1 Global Equity Income Fund 1 1 Absolute Return Bond Global Fund(2) - 1 Absolute Return Bond Constrained Fund(2) - 3 Emerging Market Bond Opportunities Fund(1) - 1 Global Diversified Income Fund 1 2 Global Sustainable Equity Fund 1 2 Global Diversified Growth Fund 1 1 Global Equity Market Neutral Fund 1 1 Short Dated High Yield Global Bond Fund 1 1

(1) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. (2) Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

192 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued) 14. Related Parties (continued) Directors’ Fees The Directors fees incurred by the Company for the financial year ended 31 October 2019 amounted to USD 78,043 (31 October 2018: USD 77,209).

15. Events after the Statement of Financial Position date

On 31 January 2020, the Directors declared the following dividends for the Income Share Classes on the following sub-funds:

Kames Strategic Global Bond Fund USD 187,575 Kames Investment Grade Global Bond Fund USD 145,116 Kames High Yield Global Bond Fund USD 894,200 Kames Absolute Return Bond Fund GBP 820,925 Kames Global Equity Income Fund USD 347,341 Kames Global Sustainable Equity Fund EUR 48 Kames Global Diversified Growth Fund EUR 95 Kames Short Dated High Yield Global Bond Fund USD 407,776

The Directors declared the following dividends for the Income Share Classes on Kames Global Diversified Income Fund: 29 November 2019 - EUR 395,978, 31 December 2019 - EUR 437,595 and 31 January 2020 - EUR 455,333.

The following share classes were launched on 10 January 2020:

Sub-Fund Share Class Strategic Global Bond Fund Class C NOK (Accumulation) Hedged Investment Grade Global Bond Fund Class C NOK (Accumulation) Hedged

Kames Short Dated Investment Grade Fund launched on 30 January 2020.

There have been no other significant events since the financial year end.

193 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure

The table below analyses the Company’s derivative exposure by type of derivatives and counterparty:

Strategic Global Bond Fund 31 October 2019 Net Derivative Exposure Margin Cash and Non Cash Net Exposure Cash Collateral Collateral Financial Liabilities USD USD USD Forward contracts (2,347,898) 205,000 - Futures (58,133) (1,425,562) - Swaps (6,961,100) (6,405,000) - Total (9,367,131) (7,625,562) -

Collateral Margin Cash and Cash Collateral Non Cash Net Exposure Credit Rating Received/(Pledged) Collateral Barclays Bank (700,994) A (810,000) - BNP Paribas (5,279,195) A (5,280,000) - Citi London 1,655,225 A+ 4,340,000 - Deutsche Bank (4,405,244) A- (3,730,000) - Goldman Sachs International 1,103,115 A+ 1,110,000 - JPMorgan Securities (1,681,905) A+ (1,830,000) - UBS Limited (58,133) A+ (1,425,562) - (9,367,131) (7,625,562) -

Investment Grade Global Bond Fund 31 October 2019 Net Derivative Exposure Margin Cash and Non Cash Net Exposure Cash Collateral Collateral Financial Liabilities USD USD USD Forward contracts (365,631) 3,280,000 - Futures (282,917) (1,103,494) - Total (648,548) 2,176,506 -

Collateral Margin Cash and Cash Collateral Non Cash Net Exposure Credit Rating Received/(Pledged) Collateral Citi London 912,036 A+ 4,340,000 Deutsche Bank (1,277,667) A- (1,060,000) UBS Limited (282,917) A+ (1,103,494) (648,548) 2,176,506 -

194 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure (continued)

High Yield Global Bond Fund 31 October 2019

Net Derivative Exposure Net Margin Cash and Non Cash Exposure Cash Collateral Collateral Financial Liabilities USD USD USD Forward Contracts (569,191) 1,130,000 - Total (569,191) 1,130,000 -

Collateral Margin Cash and Net Credit Cash Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank 26,080 A - - Citi London 725,445 A+ 2,200,000 - Deutsche Bank (1,320,716) A- (1,070,000) - (569,191) 1,130,000 -

Absolute Return Bond Fund 31 October 2019

Net Derivative Exposure Net Margin Cash and Non Cash Exposure Cash Collateral Collateral Financial Assets GBP GBP GBP Forward Contracts 5,199,168 580,000 - Total 5,199,168 580,000 -

Financial Liabilities GBP GBP GBP Futures (132,171) (2,713,299) - Swaps (5,744,980) (1,730,000) - Total (5,877,151) (4,443,299) -

Collateral Margin Cash and Net Credit Cash Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank 811,868 A 1,010,000 - BNP Paribas (1,833,935) A (1,770,000) - Citi (72,061) A+ (540,000) - Credit Suisse International (35,782) BBB+ - - Goldman Sachs International (1,051,750) A+ (1,040,000) - HSBC Bank (67,184) A+ - - JPMorgan Securities 2,743,294 A+ 2,240,000 - Merrill Lynch 83,311 A+ (1,254,391) - Morgan Stanley & Co International Plc (1,123,573) A1 (1,050,000) - UBS Limited (132,171) A+ (1,458,908) - (677,983) (3,863,299) -

195 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure (continued)

Global Equity Income Fund 31 October 2019

Net Derivative Exposure Net Margin Cash and Non Cash Exposure Cash Collateral Collateral USD USD USD Financial Assets Forward Contracts 98,534 420,000 - Total 98,534 420,000 -

Collateral Margin Cash and Net Credit Cash Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Citi London 98,534 A+ 420,000 - 98,534 420,000 -

Absolute Return Bond Global Fund 31 October 2019

Net Derivative Exposure Margin Cash and Non Cash Net Exposure Cash Collateral Collateral Financial Liabilities GBP GBP GBP Forward contracts (2,210) (270,000) - Futures - - - Swaps - - - Total (2,210) (270,000) -

Collateral Margin Cash and Cash Collateral Non Cash Net Exposure Credit Rating Received/(Pledged) Collateral Citi London (2,210) A+ (270,000) (2,210) (270,000) -

196 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure (continued)

Global Diversified Income Fund 31 October 2019

Net Derivative Exposure Net Margin Cash and Non Cash Exposure Cash Collateral Collateral Financial Assets EUR EUR EUR Forward Contracts 259,878 1,280,000 - Futures 4,301 (27,540) - Total 264,179 1,252,460 -

Collateral Margin Cash and Net Credit Cash Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank 48,154 A - - BNP Paribas 111,462 A (350,000) - Citi London 100,262 A+ 1,630,000 - UBS Limited 4,301 A+ (27,540) - 264,179 1,252,460 -

Global Diversified Growth Fund 31 October 2019

Net Derivative Exposure Margin Cash and Non Cash Net Exposure Cash Collateral Collateral Financial Assets EUR EUR EUR Futures 88,972 (141,445) - Total 88,972 (141,445) -

Financial Liabilities Forward contracts (218,423) (20,000) - Total (218,423) (20,000) -

Collateral Margin Cash and Cash Collateral Non Cash Net Exposure Credit Rating Received/(Pledged) Collateral BNP Paribas (251,940) A (360,000) Citi London 28,018 A+ 340,000 JPMorgan Securities 5,499 A+ - UBS Limited 88,972 A+ (141,445) (129,451) (161,445) -

197 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure (continued)

Global Equity Market Neutral Fund 31 October 2019

Net Derivative Exposure Margin Cash and Non Cash Net Exposure Cash Collateral Collateral Financial Assets GBP GBP GBP Forward contracts 32,128 520,000 - Total 32,128 520,000 -

Financial Liabilities Contracts for Difference (182,903) (695,300) - Futures (127,146) (381,879) - Total (310,049) (1,077,179) -

Collateral Margin Cash and Cash Collateral Non Cash Net Exposure Credit Rating Received/(Pledged) Collateral BNP Paribas 126,593 A 1,510,000 - Citi 515 A+ - - Citi London (94,980) A+ (990,000) - Goldman Sachs International (53,656) A+ (329,727) - Merrill Lynch International Bank Limited (129,247) A+ (365,573) - UBS Limited (127,146) A+ (381,879) - (277,921) (557,179) -

Short Dated High Yield Global Bond Fund 31 October 2019

Net Derivative Exposure Net Margin Cash and Non Cash Exposure Cash Collateral Collateral Financial Liabilities USD USD USD Forward Contracts (248,488) 1,530,000 - Total (248,488) 1,530,000 -

Collateral Margin Cash and Net Credit Cash Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank 47,358 A - - Citi London 351,252 A+ 2,110,000 - Deutsche Bank (647,098) A- (580,000) - (248,488) 1,530,000 -

198 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure (continued)

Strategic Global Bond Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Assets USD USD USD Forward Contracts 7,207,646 (12,995,000) - Total 7,207,646 (12,995,000) -

Financial Liabilities Swaps (1,584,164) 315,000 - Total (1,584,164) 315,000 -

Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank 4,312,046 A 2,450,000 - Citi London (640,491) A+ (16,720,000) - Deutsche Bank 2,862,209 A- 2,500,000 - Goldman Sachs International (910,282) A+ (910,000) - 5,623,482 (12,680,000) -

199 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure (continued)

Investment Grade Global Bond Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Assets USD USD USD Forward Contracts 1,626,968 (5,850,000) - Total 1,626,968 (5,850,000) - Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank 352,422 A 300,000 - Citi London (383,852) A+ (7,490,000) - Deutsche Bank 1,634,945 A- 1,340,000 - JPMorgan Securities 23,453 A+ - - 1,626,968 (5,850,000) -

High Yield Global Bond Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Assets USD USD USD Forward Contracts 2,231,360 (3,880,000) - Total 2,231,360 (3,880,000) -

Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank 674,001 A 610,000 - Citi London (252,489) A+ (5,980,000) - Deutsche Bank 1,809,848 A- 1,490,000 - 2,231,360 (3,880,000) -

200 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure (continued)

Absolute Return Bond Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Liabilities GBP GBP GBP Forward Contracts (1,567,138) (50,000) - Swaps (10,769,395) (11,010,000) - Total (12,336,533) (11,060,000) -

Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank (6,463,087) A (7,110,000) - BNP Paribas 833,216 A 850,000 - Citi 699,136 A+ 790,000 - Citi London 136,324 A+ (50,000) - Goldman Sachs - International (7,864,484) A+ (6,630,000) JPMorgan Securities 190,248 A+ (680,000) - Merrill Lynch 1,609,935 A+ 1,770,000 - Societe Generale SA 23,994 A - - Royal Bank of Scotland (1,501,815) BBB- - - (12,336,533) (11,060,000) -

Global Equity Income Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral USD USD USD Financial Liabilities Forward Contracts (216,362) (1,970,000) - Total (216,362) (1,970,000) -

Collateral Net Credit Cash Non Cash Exposure Rating Received/(Pledged) Collateral Citi London (216,362) A+ (1,970,000) - (216,362) (1,970,000) -

201 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure (continued)

Absolute Return Bond Global Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Liabilities GBP GBP GBP Forward Contracts (188,919) (160,000) - Swaps (644,094) (550,000) - Total (833,013) (710,000) -

Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank (180,145) A (260,000) - Citi London 9,575 A+ - - Goldman Sachs - International (369,918) A+ (290,000) JPMorgan Securities (198,494) A+ (160,000) - Royal Bank of Scotland (94,031) BBB- - - (833,013) (710,000) -

Absolute Return Bond Constrained Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Liabilities EUR EUR EUR Forward Contracts (386,939) (205,000) - Swaps (162,605) (205,000) - Total (549,544) (410,000) -

Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank 39,648 A - - Citi London (1,793) A+ - - Goldman Sachs - International (54,499) A+ - JPMorgan Securities (483,678) A+ (410,000) - Royal Bank of Scotland (49,222) BBB- - - (549,544) (410,000) -

202 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure (continued)

Emerging Market Bond Opportunities Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Liabilities USD USD USD Forward Contracts (189) - - Total (189) - -

Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Citi London (189) A+ - - (189) - -

Global Diversified Income Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Liabilities EUR EUR EUR Forward Contracts (1,106,940) (620,000) - Total (1,106,940) (620,000) -

Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Barclays Bank 90,192 A - - Citi London (65,369) A+ 360,000 - Deutsche Bank (1,131,763) A- (980,000) - (1,106,940) (620,000) -

Global Diversified Growth Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Liabilities EUR EUR EUR Forward Contracts (318,625) 250,000 - Total (318,625) 250,000 -

Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Citi London (38,385) A+ 250,000 - Deutsche Bank (280,240) A- - - (318,625) 250,000 -

203 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Notes to the Financial Statements (continued)

16. Derivative Exposure (continued)

Global Equity Market Neutral Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Liabilities GBP GBP GBP Forward Contracts (162,332) (1,470,000) - Total (162,332) (1,470,000) -

Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Citi (195,692) A+ (1,250,000) - Citi London 33,360 A+ (220,000) - (162,332) (1,470,000) -

Short Dated High Yield Global Bond Fund 31 October 2018

Net Derivative Exposure Net Cash Non Cash Exposure Collateral Collateral Financial Liabilities USD USD USD Forward Contracts 1,417,919 (4,510,000) - Total 1,417,919 (4,510,000) -

Collateral Cash Net Credit Collateral Non Cash Exposure Rating Received/(Pledged) Collateral Citi London (391,621) A+ (6,110,000) - Deutsche Bank 1,809,540 A- 1,600,000 - 1,417,919 (4,510,000) -

17. Financial Statements

The Board of Directors approved the financial statements on 10 February 2020.

204 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – STRATEGIC GLOBAL BOND FUND

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Asset Backed Securities - 4.56% (2018: 4.40% - USD 24,201,269) 2,600,000 Channel Link Enterprises Finance 2.706 30/06/2050 3,036,894 0.93 1,500,000 Dignity Finance 4.696 31/12/2049 1,612,913 0.50 4,400,000 Mitchells & Butlers Finance 2.569 15/12/2030 2,479,808 0.76 2,900,000 Telereal Secured Finance 4.010 10/12/2031 3,072,510 0.94 1,800,000 Tesco Property Finance 6.052 13/10/2039 2,570,013 0.79 1,375,000 THPA Finance 8.241 15/03/2028 2,067,030 0.64 14,839,168 4.56 Corporate Bonds - 62.55% (2018: 44.33% - USD 244,008,403) 1,900,000 Abertis Infraestructuras 1.625 15/07/2029 2,132,650 0.66 1,900,000 AerCap 5.875 10/10/2079 1,987,875 0.61 1,000,000 Algeco Global Finance 6.500 15/02/2023 1,115,272 0.34 2,100,000 Allergan Funding 4.550 15/03/2035 2,246,381 0.69 2,000,000 Apple 2.200 11/09/2029 1,975,901 0.61 1,600,000 Aroundtown 3.625 10/04/2031 2,139,344 0.66 1,700,000 Aroundtown 4.750 25/06/2168 2,275,959 0.70 2,050,000 Arqiva Broadcast Finance 6.750 30/09/2023 2,856,182 0.88 1,600,000 Assicurazioni Generali 4.596 30/11/2049 1,976,724 0.61 1,100,000 AT&T 4.375 14/09/2029 1,683,304 0.52 2,500,000 Autodesk 4.375 15/06/2025 2,726,685 0.84 1,200,000 Aviva 6.875 20/05/2058 2,213,878 0.68 1,620,000 AXA 5.453 29/11/2049 2,367,905 0.73 2,300,000 Banca Monte dei Paschi di Siena 0.875 08/10/2026 2,578,240 0.79 1,800,000 Banco Bilbao Vizcaya Argentaria 5.875 24/12/2166 2,140,815 0.66 1,600,000 Banco Santander 6.250 11/12/2166 1,896,891 0.58 1,800,000 Banco Santander 5.250 29/12/2166 2,103,733 0.65 2,000,000 Bank of America 6.110 29/01/2037 2,641,330 0.81 2,200,000 Bankia 6.000 18/10/2165 2,539,394 0.78 1,200,000 Barclays 6.375 15/03/2168 1,625,781 0.50 1,900,000 Bayer US Finance II 4.250 15/12/2025 2,042,098 0.63 1,900,000 Becton Dickinson 4.685 15/06/2044 2,251,598 0.69 1,500,000 Berry Global 5.625 15/07/2027 1,594,062 0.49 2,100,000 BP Capital Markets America 4.234 06/11/2028 2,380,067 0.73 1,300,000 Caixa Geral de Depositos 5.750 28/06/2028 1,640,545 0.50 1,600,000 CaixaBank 5.250 23/06/2166 1,768,963 0.54 2,110,000 Catalent Pharma Solutions 4.750 15/12/2024 2,426,510 0.75 2,200,000 CBR Fashion Finance 5.125 01/10/2022 2,463,149 0.76 2,100,000 Citigroup 1.750 23/10/2026 2,730,218 0.84 2,500,000 CK Hutchison International 19 II 2.750 06/09/2029 2,473,570 0.76 2,400,000 Connect Finco 6.750 01/10/2026 2,496,000 0.77 1,800,000 Cooperatieve Rabobank 4.625 23/05/2029 2,786,800 0.86 1,455,000 Cooperatieve Rabobank 6.910 29/06/2049 2,855,516 0.88 1,000,000 CPUK Finance 4.250 28/08/2022 1,326,729 0.41 2,150,000 Danske Bank 5.375 12/01/2024 2,370,623 0.73 2,200,000 Danske Bank 2.500 21/06/2029 2,586,758 0.80 2,300,000 Danske Bank 7.000 26/12/2167 2,453,280 0.75 1,700,000 DEMIRE Deutsche Mittelstand Real Estate 1.875 15/10/2024 1,899,114 0.58 2,400,000 DKT Finance 7.000 17/06/2023 2,837,844 0.87 1,400,000 Drax Finco 6.625 01/11/2025 1,489,250 0.46 1,600,000 Dresdner Funding Trust I 8.151 30/06/2031 2,138,853 0.66 1,400,000 EDF 6.000 29/12/2049 1,980,931 0.61

205 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – STRATEGIC GLOBAL BOND FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Corporate Bonds (continued) 1,500,000 EDF 6.000 22/01/2114 1,824,210 0.56 2,000,000 El 7.500 15/03/2024 2,786,984 0.86 1,900,000 Equinix 5.375 15/05/2027 2,067,751 0.64 1,600,000 Eurofins Scientific 2.875 09/11/2168 1,753,391 0.54 1,400,000 FMG Resources August 2006 4.750 15/05/2022 1,448,125 0.45 2,200,000 Fresenius Medical Care US Finance Ill 3.750 15/06/2029 2,247,058 0.69 1,800,000 GEMS MENASA Cayman 7.125 31/07/2026 1,877,868 0.58 2,400,000 Global Aircraft Leasing 6.500 15/09/2024 2,455,896 0.75 900,000 Grainger 3.375 24/04/2028 1,230,717 0.38 3,400,000 Hannover Rueck 1.125 09/10/2039 3,736,934 1.15 2,021,000 HBOS Sterling Finance Jersey 7.881 12/09/2167 4,059,239 1.25 1,600,000 HSBC Bank 5.375 22/08/2033 2,723,154 0.84 1,000,000 HSBC Bank 6.250 30/01/2041 1,956,445 0.60 1,000,000 HSBC Bank Capital Funding Sterling 1 5.844 29/11/2049 1,743,053 0.54 1,800,000 InterContinental Hotels 2.125 24/08/2026 2,356,712 0.72 2,150,000 InterXion 4.750 15/06/2025 2,617,560 0.80 1,600,000 Legal & General 5.125 14/11/2048 2,334,288 0.72 2,300,000 Lloyds Banking 5.300 01/12/2045 2,776,181 0.85 2,400,000 Logicor 2019-1 UK 1.875 17/11/2026 3,122,873 0.96 1,500,000 Logicor Financing 1.625 15/07/2027 1,707,786 0.52 1,400,000 M&G 5.560 20/07/2055 2,033,701 0.63 1,400,000 McDonald's 2.950 15/03/2034 2,004,939 0.62 2,500,000 McDonald's 3.625 01/09/2049 2,546,882 0.78 1,100,000 Nexi 1.750 31/10/2024 1,247,263 0.38 1,800,000 NN 4.500 15/07/2049 2,252,655 0.69 1,400,000 Owens-Brockway Glass Container 5.875 15/08/2023 1,480,500 0.46 1,400,000 Panther BF Aggregator 2 4.375 15/05/2026 1,580,370 0.49 1,600,000 Panther BF Aggregator 2 8.500 15/05/2027 1,622,000 0.50 2,150,000 Pinnacle Bidco 6.375 15/02/2025 2,976,542 0.91 1,800,000 Platin 1426 5.375 15/06/2023 1,901,574 0.58 2,400,000 Royal Bank of Scotland 7.648 29/08/2049 3,397,660 1.04 1,600,000 Santander UK 6.750 29/12/2049 2,219,222 0.68 2,700,000 Shell International Finance 2.375 21/08/2022 2,736,321 0.84 1,000,000 Smurfit Kappa Treasury 1.500 15/09/2027 1,114,973 0.34 2,200,000 Swiss Re Finance Luxembourg 5.000 02/04/2049 2,436,954 0.75 1,600,000 Swiss Re Finance Luxembourg 4.250 09/04/2168 1,640,004 0.50 1,500,000 Takeda Pharmaceutical 5.000 26/11/2028 1,756,499 0.54 2,600,000 Tenneco 4.875 15/04/2022 2,889,514 0.89 2,000,000 Total 2.708 05/05/2167 2,386,700 0.73 1,500,000 Trivium Packaging Finance 3.750 15/08/2026 1,739,092 0.53 2,800,000 Tullow Oil 7.000 01/03/2025 2,885,380 0.89 2,400,000 UniCredit 7.830 04/12/2023 2,810,271 0.86 2,200,000 UniCredit 6.625 03/12/2166 2,613,440 0.80 1,900,000 UniCredit 7.500 03/06/2167 2,424,141 0.75 1,200,000 UNITE 3.500 15/10/2028 1,686,346 0.52 1,400,000 Vinci 3.750 10/04/2029 1,542,046 0.47 1,400,000 Volkswagen International Finance 3.875 14/06/2166 1,664,642 0.51 1,700,000 Volkswagen International Finance 4.625 27/06/2167 2,095,175 0.64 1,600,000 Wells Fargo 4.875 29/11/2035 2,710,981 0.83 1,500,000 XPO Logistics 6.750 15/08/2024 1,627,500 0.50 400,000 Yum! Brands 4.750 15/01/2030 420,625 0.13 203,486,859 62.55

206 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – STRATEGIC GLOBAL BOND FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Floating Rate Notes - 5.19% (2018: 1.96% - USD 10,815,802) 2,200,000 AT&T 3.312 12/06/2024 2,238,734 0.69 1,200,000 Caixa Geral de Depositos 10.750 30/06/2168 1,568,246 0.48 2,000,000 Citigroup 3.224 17/05/2024 2,028,546 0.63 1,500,000 CPI Property 4.375 09/05/2166 1,730,167 0.53 1,300,000 Ford Motor Credit 2.982 03/08/2022 1,275,275 0.39 2,200,000 General Electric 3.119 15/03/2023 2,186,799 0.67 2,215,000 JPMorgan Chase 5.406 30/10/2166 2,233,794 0.69 3,700,000 Royal Bank of Scotland 4.424 29/03/2049 3,606,423 1.11 16,867,984 5.19 Government Bonds - 23.92% (2018: 44.59% - USD 245,426,511) 19,000,000 Canada (Government of) 1.500 01/09/2024 14,472,351 4.45 15,700,000 U.S. Treasury Inflation Indexed Bonds 0.500 15/01/2028 16,744,186 5.15 8,000,000 U.S. Treasury Inflation Indexed Bonds 0.250 15/07/2029 8,106,664 2.49 7,050,000 U.S. Treasury Inflation Indexed Bonds 1.000 15/02/2048 8,169,726 2.51 1,900,000 U.S. Treasury Note 2.875 31/10/2023 1,998,859 0.61 18,750,000 U.S. Treasury Note 2.750 15/02/2028 20,349,608 6.26 2,600,000 U.S. Treasury Note 3.375 15/11/2048 3,270,109 1.00 3,550,000 United Kingdom Gilt 1.000 22/04/2024 4,716,236 1.45 77,827,739 23.92 Bond Futures^ - 0.12% (2018: 0.14% - USD 749,410) 135 Australia 10 Year Bond Future 16/12/2019 33,917 0.01 (480) Australia 3 Year Bond Future 16/12/2019 15,138 0.01 (230) Long Gilt Future 27/12/2019 30,267 0.01 170 U.S. 10 Year Note Future 19/12/2019 99,453 0.03 155 U.S. 10 Year Ultra Bond Future 19/12/2019 13,555 - (20) U.S. Ultra Bond Future 19/12/2019 202,813 0.06 395,143 0.12 Swaps^^ - 1.12% (2018: 0.15% - USD 798,493) 14,000,000 CDS Sell Protection Markit CDX HY 5 Year 20/12/2024 1,103,115 0.34 32,000,000 CDS Sell Protection Markit CDX HY 5 Year 20/12/2024 2,521,406 0.78 3,624,521 1.12 Forward Contracts* - 0.78% (2018: 1.55% - USD 8,537,579) Unrealised Description Gain Buy CAD 800,000, Sell USD 607,262 13/12/2019 294 - Buy CHF 1,059,926, Sell USD 1,066,426 29/11/2019 9,347 - Buy EUR 12,893,981, Sell USD 14,325,265 29/11/2019 77,196 0.02 Buy EUR 156,771, Sell USD 174,243 29/11/2019 869 - Buy EUR 1,721,908, Sell USD 1,913,047 29/11/2019 10,309 - Buy EUR 20,019, Sell USD 22,227 29/11/2019 134 - Buy EUR 205,030,925, Sell USD 227,790,178 29/11/2019 1,227,520 0.38 Buy EUR 3,100,000, Sell USD 3,437,602 13/12/2019 29,234 0.01 Buy EUR 3,800,000, Sell USD 4,230,147 13/12/2019 19,523 0.01 Buy EUR 4,500, Sell USD 5,009 29/11/2019 17 - Buy EUR 4,500,000, Sell USD 4,991,499 13/12/2019 41,004 0.01 Buy EUR 5,000,000, Sell USD 5,476,820 13/12/2019 114,850 0.04 Buy EUR 6,875,339, Sell USD 7,638,529 29/11/2019 41,163 0.01 Buy EUR 8,603,392, Sell USD 9,558,403 29/11/2019 51,509 0.02 Buy EUR 8,696, Sell USD 9,655 29/11/2019 58 - Buy EUR 8,747,833, Sell USD 9,718,877 29/11/2019 52,373 0.02 Buy GBP 10,922, Sell USD 14,030 29/11/2019 138 - Buy GBP 1,522,930, Sell USD 1,960,371 29/11/2019 15,024 0.01

207 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – STRATEGIC GLOBAL BOND FUND (continued)

Forward Contracts* (continued) Maturity Unrealised % of Net Description Date Gain Assets Buy GBP 2,000,000, Sell USD 2,467,211 13/12/2019 128,543 0.04 Buy GBP 2,500,219, Sell USD 3,218,375 29/11/2019 24,665 0.01 Buy GBP 3,000, Sell USD 3,891 29/11/2019 1 - Buy GBP 3,669,652, Sell USD 4,723,712 29/11/2019 36,201 0.01 Buy GBP 4,100,000, Sell USD 5,176,418 13/12/2019 144,878 0.04 Buy GBP 4,713,514, Sell USD 6,067,410 29/11/2019 46,499 0.01 Buy GBP 5,600,000, Sell USD 6,906,045 13/12/2019 362,066 0.11 Buy GBP 930,194, Sell USD 1,197,380 29/11/2019 9,176 - Buy JPY 860,807,339, Sell USD 7,915,099 29/11/2019 55,349 0.02 Buy USD 14,853,431, Sell CAD 19,500,000 13/12/2019 44,253 0.01 2,542,193 0.78 Fair Value USD Financial Assets At Fair Value Through Profit or Loss 319,583,607 98.24

Bond Futures^ - (0.14%) (2018: (0.28%) - USD (1,545,221)) Nominal Security Description 35 Euro Bond Future 06/12/2019 (107,894) (0.04) 220 Euro-Bobl Future 06/12/2019 (135,615) (0.04) (34) Euro-Buxl 30 Year Bond Future 06/12/2019 (39,259) (0.01) 150 U.S. 5 Year Note Future 31/12/2019 (170,508) (0.05) (453,276) (0.14) Swaps^^ - (3.26%) (2018: (0.44%) - USD (2,382,657)) 29,000,000 CDS Buy Protection Itraxx EUR 5 Year 20/12/2024 (4,203,311) (1.29) 14,000,000 CDS Buy Protection Markit CDX HY 5 Year 20/12/2024 (1,103,115) (0.34) 67,000,000 CDS Buy Protection Markit CDX HY 5 Year 20/12/2024 (5,279,195) (1.63) (10,585,621) (3.26) Forward Contracts* - (1.50%) (2018: (0.24%) - USD (1,329,933)) Unrealised Description Loss Buy EUR 686,337, Sell USD 766,956 29/11/2019 (325) - Buy GBP 11, Sell USD 15 29/11/2019 - - Buy GBP 30, Sell USD 39 29/11/2019 - - Buy USD 1,322,593, Sell EUR 1,200,000 13/12/2019 (19,408) (0.01) Buy USD 1,607,738, Sell GBP 1,300,000 13/12/2019 (79,502) (0.02) Buy USD 1,659,022, Sell EUR 1,500,000 13/12/2019 (18,479) (0.01) Buy USD 2,465,245, Sell EUR 2,250,000 13/12/2019 (51,006) (0.01) Buy USD 26,721, Sell EUR 23,931 29/11/2019 (9) - Buy USD 2,987,788, Sell EUR 2,700,000 13/12/2019 (31,714) (0.01) Buy USD 31, Sell GBP 24 29/11/2019 - - Buy USD 33,434, Sell EUR 30,025 29/11/2019 (104) - Buy USD 3,567,034, Sell GBP 2,750,000 13/12/2019 (2,128) - Buy USD 4, Sell GBP 3 29/11/2019 - - Buy USD 476,035, Sell EUR 427,637 29/11/2019 (1,632) - Buy USD 502,324, Sell EUR 450,000 13/12/2019 (927) - Buy USD 67,533,106, Sell EUR 60,900,000 13/12/2019 (573,434) (0.18) Buy USD 7,568, Sell EUR 6,798 29/11/2019 (26) - Buy USD 8,151,238, Sell EUR 7,400,000 13/12/2019 (124,433) (0.04) Buy USD 85,577,940, Sell GBP 69,000,000 13/12/2019 (3,975,573) (1.22) Buy USD 93,434, Sell EUR 83,851 29/11/2019 (227) - Buy USD 995,337, Sell EUR 900,000 13/12/2019 (11,164) - (4,890,091) (1.50) 208 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – STRATEGIC GLOBAL BOND FUND (continued)

Fair Value % of Net USD Assets Financial Liabilities At Fair Value Through Profit or Loss (15,928,988) (4.90)

Cash and Cash Equivalents 6,318,335 1.94 Other Net Assets 15,341,602 4.72

Net Asset Value as at 31 October 2019 325,314,556 100.00

^ The counterparty to the bond futures is UBS (A+) (2018: (A+)). ^^ The counterparties to the swaps are Barclays Bank (BBB) (2018: (BBB)), BNP Paribas (A+) (2018: (A)), Goldman Sachs International (A+) (2018: (A+)) and J.P. Morgan Securities (A+) (2018: (A-)). * The counterparties to the forwards are Barclays Bank (BBB) (2018: (BBB)), Citibank (A+) (2018: (A+)) and Deutsche Bank (BBB+) (2018: (BBB+)).

Investments except for derivatives are transferable securities admitted to an official stock exchange or traded on a regulated market.

Portfolio Analysis (unaudited) % of Total Assets Transferable securities admitted to official stock exchanges or traded on a regulated market (2018: 89.48%) 89.92 Financial derivative instruments dealt in on a regulated market (2018: 0.13%) 1.15 OTC financial derivative instruments (2018: 1.59%) 0.73 Other current assets (2018: 8.80%) 8.20 100.00

209 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – INVESTMENT GRADE GLOBAL BOND FUND

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Asset Backed Securities - 2.20% (2018: 1.31% - USD 3,128,027) 1,700,000 Channel Link Enterprises Finance 2.706 30/06/2050 1,985,661 1.37 800,000 THPA Finance 8.241 15/03/2028 1,202,636 0.83 3,188,297 2.20 Corporate Bonds - 85.98% (2018: 82.64% - USD 197,405,215) 2,000,000 Airbus 3.150 10/04/2027 2,101,619 1.45 1,200,000 Anheuser-Busch 5.450 23/01/2039 1,516,965 1.05 1,000,000 Anthem 5.100 15/01/2044 1,165,407 0.80 2,000,000 APT Pipelines 4.250 15/07/2027 2,143,308 1.48 1,000,000 Argentum Netherlands 5.625 15/08/2052 1,110,354 0.77 600,000 Aroundtown 3.250 18/07/2027 803,046 0.55 1,000,000 AstraZeneca 3.375 16/11/2025 1,056,882 0.73 1,500,000 Autodesk 4.375 15/06/2025 1,636,011 1.13 1,100,000 Aviva 6.875 20/05/2058 2,029,388 1.40 500,000 AXA 5.453 29/11/2049 730,835 0.50 1,000,000 Banco Bilbao Vizcaya Argentaria 5.875 24/12/2166 1,189,342 0.82 700,000 Banco Santander 5.481 12/03/2049 784,262 0.54 1,000,000 Bank of America 3.093 01/10/2025 1,033,961 0.71 600,000 Bank of America 8.125 02/06/2028 1,122,991 0.77 500,000 Barclays 7.875 29/12/2049 700,439 0.48 300,000 Barclays 7.125 15/09/2167 426,443 0.29 1,000,000 Bayer US Finance II 3.500 25/06/2021 1,019,930 0.70 1,300,000 Bayer US Finance II 4.250 15/12/2025 1,397,225 0.96 1,000,000 Becton Dickinson 3.734 15/12/2024 1,069,571 0.74 1,000,000 Berkshire Hathaway Energy 3.800 15/07/2048 1,088,386 0.75 2,000,000 BG Energy Capital 4.000 15/10/2021 2,071,900 1.43 1,300,000 BNP Paribas 3.375 23/01/2026 1,831,703 1.26 1,800,000 BP Capital Markets America 4.234 06/11/2028 2,040,058 1.41 1,000,000 Caterpillar Financial Services 3.150 07/09/2021 1,023,543 0.71 900,000 Chubb INA 0.875 15/06/2027 1,036,599 0.71 1,300,000 Citigroup 4.125 25/07/2028 1,408,713 0.97 1,300,000 Coca-Cola European Partners 1.500 08/11/2027 1,574,353 1.09 1,000,000 Comcast 4.150 15/10/2028 1,130,616 0.78 1,400,000 Compass Group Finance Netherlands 1.500 05/09/2028 1,712,599 1.18 2,000,000 Cooperatieve Rabobank 4.000 10/04/2029 2,082,688 1.44 1,600,000 CRH America Finance 3.400 09/05/2027 1,656,898 1.14 600,000 Danske Bank 5.375 12/01/2024 661,569 0.46 650,000 Danske Bank 5.750 31/10/2049 735,646 0.51 2,000,000 Deutsche Bank 4.250 04/02/2021 2,031,179 1.40 600,000 DH Europe Finance II 2.600 15/11/2029 604,922 0.42 1,800,000 Digital Realty Trust 3.700 15/08/2027 1,899,958 1.31 1,300,000 Electricite de France 4.500 21/09/2028 1,464,443 1.01 300,000 Elia System Operator 1.500 05/09/2028 364,597 0.25 1,500,000 Ethias 5.000 14/01/2026 1,980,182 1.37 700,000 Euronext 1.125 12/06/2029 815,341 0.56 600,000 FCA Bank 1.625 29/09/2021 777,424 0.54 1,500,000 Fidelity International 2.500 04/11/2026 1,818,108 1.25 900,000 Fidelity National Information Services 1.500 21/05/2027 1,066,795 0.74 1,400,000 Fidelity National Information Services 3.360 21/05/2031 2,013,551 1.39 600,000 Fiserv 3.000 01/07/2031 834,363 0.58

210 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – INVESTMENT GRADE GLOBAL BOND FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Corporate Bonds (continued) 1,000,000 Fluor 4.250 15/09/2028 991,816 0.68 1,200,000 Ford Motor Credit 4.535 06/03/2025 1,640,641 1.13 2,200,000 Fresenius Medical Care US Finance Ill 3.750 15/06/2029 2,247,058 1.55 1,500,000 General Motors Financial 4.200 01/03/2021 1,532,539 1.06 1,200,000 Global Switch 2.250 31/05/2027 1,444,442 1.00 1,200,000 Goldman Sachs 4.250 29/01/2026 1,766,279 1.22 2,000,000 HBOS 4.500 18/03/2030 2,609,536 1.80 1,000,000 Heineken 2.750 01/04/2023 1,016,563 0.70 1,000,000 HSBC 7.625 17/05/2032 1,399,480 0.97 500,000 HSBC Capital Funding Dollar 1 10.176 31/12/2165 822,975 0.57 1,500,000 Iberdrola International 6.750 15/07/2036 2,082,739 1.44 400,000 Imperial Brands Finance 3.500 26/07/2026 397,788 0.27 800,000 ING Groep 6.750 16/04/2167 850,902 0.59 1,600,000 International Business Machines 4.150 15/05/2039 1,807,192 1.25 900,000 JPMorgan Chase 1.047 04/11/2032 1,018,667 0.70 1,000,000 Juneau Investments 5.900 22/02/2021 1,338,165 0.92 700,000 M&G 6.250 20/10/2068 1,089,157 0.75 2,000,000 McDonald's 3.250 10/06/2024 2,104,645 1.45 1,750,000 Mead Johnson Nutrition 5.900 01/11/2039 2,380,732 1.64 1,200,000 NordeaBank ABP 6.625 26/09/2167 1,312,058 0.91 800,000 PayPal 2.850 01/10/2029 805,245 0.56 500,000 Peel South East 10.000 30/04/2026 904,897 0.62 500,000 Pension Insurance 8.000 23/11/2026 806,325 0.56 500,000 Provident Financial 7.000 04/06/2023 657,295 0.45 1,000,000 Prudential Financial 5.375 15/05/2045 1,090,289 0.75 1,000,000 Royal Bank of Scotland 7.648 29/08/2049 1,415,692 0.98 500,000 RTE Reseau de Transport d'Electricite 1.125 09/09/2049 544,940 0.38 65,000 Schlumberger 4.000 21/12/2025 69,491 0.05 976,000 Schlumberger 3.900 17/05/2028 1,029,701 0.71 1,500,000 Shell International Finance 3.250 11/05/2025 1,587,137 1.09 1,500,000 Sherwin-Williams 3.125 01/06/2024 1,558,916 1.08 1,000,000 Siemens Financieringsmaatschappij 6.125 17/08/2026 1,225,491 0.85 1,200,000 Solvay 4.250 04/03/2167 1,476,928 1.02 400,000 Swiss Re Finance Luxembourg 4.250 09/04/2168 410,001 0.28 1,500,000 Syngenta Finance 5.182 24/04/2028 1,584,722 1.09 1,000,000 Takeda Pharmaceutical 5.000 26/11/2028 1,170,999 0.81 900,000 Takeda Pharmaceutical 3.000 21/11/2030 1,208,170 0.83 1,100,000 Telefonica 1.957 01/07/2039 1,312,869 0.91 1,800,000 Total Capital International 2.434 10/01/2025 1,830,609 1.26 2,000,000 UniCredit 4.625 12/04/2027 2,126,458 1.47 1,400,000 UNIQA Insurance 6.000 27/07/2046 1,951,448 1.35 1,000,000 United Technologies 4.125 16/11/2028 1,134,812 0.78 1,500,000 Verizon Communications 0.875 19/03/2032 1,680,952 1.16 1,100,000 Volkswagen International Finance 2.625 16/11/2027 1,389,749 0.96 2,000,000 Walgreens Boots Alliance 3.450 01/06/2026 2,070,402 1.43 2,100,000 Walmart 2.375 24/09/2029 2,121,322 1.46 1,200,000 Wells Fargo Bank 5.250 01/08/2023 1,761,694 1.22 500,000 Welltower 3.750 15/03/2023 524,606 0.36 500,000 Welltower 4.250 15/04/2028 552,763 0.38 124,621,410 85.98

211 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – INVESTMENT GRADE GLOBAL BOND FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Floating Rate Notes - 2.96% (2018: 3.21% - USD 7,665,290) 1,500,000 AT&T 3.312 12/06/2024 1,526,410 1.05 2,000,000 John Deere Capital 2.394 10/09/2021 1,998,642 1.38 765,000 JPMorgan Chase 5.406 30/10/2166 771,491 0.53 4,296,543 2.96 Government Bonds - 0.87% (2018: 0.82% - USD 1,956,875) 1,000,000 U.S. Treasury Note 3.375 15/11/2048 1,257,734 0.87

Bond Futures^ - 0.19% (2018: 0.00% - USD 1,276) (48) Euro Bond Future 06/12/2019 223,961 0.15 (3) Euro-Buxl 30 Year Bond Future 06/12/2019 38,534 0.03 55 U.S. 10 Year Ultra Bond Future 19/12/2019 17,617 0.01 280,112 0.19 Forward Contracts* - 0.75% (2018: 0.85% - USD 2,026,113) Unrealised Description Gain Buy EUR 1,100,000, Sell USD 1,217,481 13/12/2019 12,686 0.01 Buy EUR 1,500,000, Sell USD 1,644,995 13/12/2019 32,507 0.02 Buy EUR 245,127, Sell USD 272,337 29/11/2019 1,468 - Buy EUR 2,599,054, Sell USD 2,887,560 29/11/2019 15,561 0.01 Buy EUR 2,618,664, Sell USD 2,909,346 29/11/2019 15,678 0.01 Buy EUR 2,757,881, Sell USD 3,064,017 29/11/2019 16,511 0.01 Buy EUR 38,675,874, Sell USD 42,969,051 29/11/2019 231,552 0.16 Buy GBP 100,000, Sell USD 125,184 13/12/2019 4,604 0.01 Buy GBP 1,095,037, Sell USD 1,409,572 29/11/2019 10,803 0.01 Buy GBP 1,100,000, Sell USD 1,351,951 13/12/2019 75,714 0.05 Buy GBP 230,864, Sell USD 298,969 29/11/2019 485 - Buy GBP 5,506,820, Sell USD 7,088,582 29/11/2019 54,325 0.04 Buy GBP 57,686,920, Sell USD 74,256,737 29/11/2019 569,081 0.39 Buy GBP 650,000, Sell USD 803,431 13/12/2019 40,189 0.03 1,081,164 0.75

Fair Value USD Financial Assets At Fair Value Through Profit or Loss 134,725,260 92.95

Bond Futures^ - (0.39%) (2018: (0.20%) - USD (474,504)) (50) Long Gilt Future 27/12/2019 (10,044) (0.01) 282 U.S. 10 Year Note Future 19/12/2019 (552,985) (0.38) (563,029) (0.39) Forward Contracts* - (1.00%) (2018: (0.17%) - USD (399,145)) Unrealised Description Loss Buy EUR 154,475, Sell USD 172,621 29/11/2019 (73) - Buy EUR 1,600,000, Sell USD 1,791,680 13/12/2019 (2,346) - Buy USD 109,389, Sell EUR 98,267 29/11/2019 (375) - Buy USD 115, Sell GBP 89 29/11/2019 - - Buy USD 1,652,244, Sell EUR 1,500,000 13/12/2019 (25,257) (0.02) Buy USD 172,359, Sell GBP 133,907 29/11/2019 (1,332) - Buy USD 178,420, Sell EUR 160,280 29/11/2019 (611) - Buy USD 1,956, Sell EUR 1,755 29/11/2019 (5) -

212 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – INVESTMENT GRADE GLOBAL BOND FUND (continued)

Forward Contracts* (continued) Maturity Unrealised % of Net Description Date Loss Assets Buy USD 237, Sell EUR 213 29/11/2019 (1) - Buy USD 24,557,148, Sell GBP 19,800,000 13/12/2019 (1,140,817) (0.79) Buy USD 32,380,406, Sell EUR 29,200,000 13/12/2019 (274,947) (0.19) Buy USD 35,620, Sell EUR 31,900 29/11/2019 (12) - Buy USD 589, Sell EUR 531 29/11/2019 (4) - Buy USD 65,246, Sell GBP 50,794 29/11/2019 (640) - Buy USD 73,211, Sell GBP 56,731 29/11/2019 (375) - (1,446,795) (1.00)

Fair Value USD Financial Liabilities At Fair Value Through Profit or Loss (2,009,824) (1.39)

Cash and Cash Equivalents 10,882,132 7.51 Other Net Assets 1,352,067 0.93

Net Asset Value as at 31 October 2019 144,949,635 100.00

^ The counterparty to the bond futures is UBS (A+) (2018: (A+)). * The counterparties to the forwards are Citibank (A+) (2018: (A+)) and Deutsche Bank (BBB+) (2018:(BBB+)).

Investments except for derivatives are transferable securities admitted to an official stock exchange or traded on a regulated market.

Portfolio Analysis (unaudited) % of Total Assets Transferable securities admitted to official stock exchanges or traded on a regulated market (2018: 82.79%) 86.67 Financial derivative instruments dealt in on a regulated market (2018: 0.00%) 0.18 OTC financial derivative instruments (2018: 0.80%) 0.71 Other current assets (2018: 16.41%) 12.44 100.00

213 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – HIGH YIELD GLOBAL BOND FUND

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Asset Backed Securities - 1.31% (2018: 1.71% - USD 3,114,500) 1,100,000 Intrum 2.750 15/07/2022 621,930 0.45 800,000 THPA Finance 8.241 15/03/2028 1,202,636 0.86 1,824,566 1.31 Corporate Bonds - 93.74% (2018: 95.22% - USD 173,181,801) 1,800,000 1011778 BC 4.250 15/05/2024 1,850,119 1.33 1,400,000 AerCap 5.875 10/10/2079 1,464,750 1.05 1,500,000 Aker BP 5.875 31/03/2025 1,584,963 1.14 600,000 Algeco Global Finance 6.500 15/02/2023 669,163 0.48 700,000 Algeco Global Finance 2 10.000 15/08/2023 693,884 0.50 1,043,750 ARD Securities Finance 8.750 31/01/2023 1,085,337 0.78 1,900,000 Arqiva Broadcast Finance 6.750 30/09/2023 2,647,193 1.90 1,600,000 Banco Bilbao Vizcaya Argentaria 5.875 24/08/2166 1,881,416 1.35 1,000,000 Banff Merger 8.375 01/09/2026 1,053,511 0.76 300,000 Banff Merger 9.750 01/09/2026 281,062 0.20 1,000,000 Bankia 6.375 19/12/2166 1,185,661 0.85 1,100,000 Barclays 7.125 15/09/2167 1,563,625 1.12 1,100,000 Berry Global 5.625 15/07/2027 1,168,979 0.84 1,000,000 BNP Paribas 6.125 17/12/2166 1,243,515 0.89 1,800,000 Catalent Pharma Solutions 4.750 15/12/2024 2,070,008 1.48 2,000,000 CBR Fashion Finance 5.125 01/10/2022 2,239,227 1.61 1,500,000 Cheniere Energy Partners 5.250 01/10/2025 1,558,238 1.12 700,000 Cogent Communications 4.375 30/06/2024 799,629 0.57 600,000 Commerzbank 7.000 09/04/2168 621,531 0.45 2,100,000 Connect Finco 6.750 01/10/2026 2,184,000 1.57 600,000 CPUK Finance 4.250 28/08/2022 796,037 0.57 1,100,000 Credit Suisse 7.500 17/01/2167 1,188,090 0.85 1,400,000 Danske Bank 6.125 28/03/2024 1,434,364 1.03 1,100,000 DEMIRE Deutsche Mittelstand Real Estate 1.875 15/10/2024 1,228,839 0.88 1,850,000 DKT Finance 7.000 17/06/2023 2,187,504 1.57 700,000 Drax Finco 6.625 01/11/2025 744,625 0.53 1,000,000 Eircom Finance 3.500 15/05/2026 1,171,240 0.84 1,000,000 El 7.500 15/03/2024 1,393,492 1.00 1,000,000 El Corte Ingles 3.000 15/03/2024 1,162,327 0.83 2,100,000 Energizer Gamma Acquisition 4.625 15/07/2026 2,474,493 1.77 1,200,000 EnQuest 7.000 15/04/2022 965,228 0.69 1,400,000 Erste Group Bank 6.500 15/10/2166 1,799,660 1.29 1,200,000 FMG Resources August 2006 4.750 15/05/2022 1,241,250 0.89 1,000,000 Frontier Communications 8.500 01/04/2026 1,004,375 0.72 1,700,000 GEMS MENASA Cayman 7.125 31/07/2026 1,773,542 1.27 1,200,000 Genesis Energy 5.625 15/06/2024 1,126,800 0.81 2,100,000 Global Aircraft Leasing 6.500 15/09/2024 2,148,909 1.54 300,000 GLP Capital 5.375 01/11/2023 328,711 0.24 600,000 GLP Capital 5.375 15/04/2026 662,417 0.47 700,000 Goodyear Tire & Rubber 5.125 15/11/2023 710,409 0.51 800,000 Greif 6.500 01/03/2027 861,000 0.62 900,000 Greystar Real Estate Partners 5.750 01/12/2025 939,375 0.67 1,000,000 Grifols 3.200 01/05/2025 1,141,148 0.82 1,000,000 HCA 5.375 01/02/2025 1,100,625 0.79 1,000,000 Hilcorp Energy I 6.250 01/11/2028 880,000 0.63 1,300,000 IHS Netherlands Holdco 8.000 18/09/2027 1,355,835 0.97 700,000 Infineon Technologies 2.875 01/04/2168 785,215 0.56

214 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – HIGH YIELD GLOBAL BOND FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Corporate Bonds (continued) 950,000 International Game Technology 6.250 15/02/2022 1,005,813 0.72 1,800,000 Intertrust 3.375 15/11/2025 2,108,457 1.51 1,600,000 InterXion 4.750 15/06/2025 1,947,951 1.40 800,000 Intesa Sanpaolo 5.017 26/06/2024 832,988 0.60 1,800,000 IQVIA 3.250 15/03/2025 2,057,861 1.48 500,000 Iron Mountain 3.000 15/01/2025 571,019 0.41 1,100,000 Ithaca Energy North Sea 9.375 15/07/2024 1,123,903 0.81 800,000 KFC/Pizza Hut/Taco Bell of America 5.000 01/06/2024 831,500 0.60 1,600,000 LHC3 4.125 15/08/2024 1,846,874 1.33 1,300,000 LHMC Finco 2 7.250 02/10/2025 1,461,210 1.05 1,900,000 Live Nation Entertainment 4.875 01/11/2024 1,971,341 1.41 100,000 Live Nation Entertainment 4.750 15/10/2027 104,492 0.07 1,200,000 LKQ European 3.625 01/04/2026 1,396,734 1.00 1,500,000 McLaren Finance 5.000 01/08/2022 1,866,508 1.34 600,000 Metro Bank 9.500 08/10/2025 805,446 0.58 1,900,000 Miller Homes 5.500 15/10/2024 2,560,599 1.84 1,000,000 MPT Operating Partnership 5.250 01/08/2026 1,053,926 0.76 1,200,000 Nassa Topco 2.875 06/04/2024 1,389,382 1.00 8,000 Nationwide Building Society 10.250 29/06/2049 1,677,374 1.20 500,000 Nexi 1.750 31/10/2024 566,938 0.41 1,800,000 Owens-Brockway Glass Container 5.875 15/08/2023 1,903,500 1.36 900,000 Panther BF Aggregator 2 4.375 15/05/2026 1,015,952 0.73 700,000 Panther BF Aggregator 2 8.500 15/05/2027 709,625 0.51 1,500,000 Paprec 4.000 31/03/2025 1,514,671 1.09 1,600,000 Par Petroleum 7.750 15/12/2025 1,597,000 1.15 600,000 Pilgrim's Pride 5.750 15/03/2025 622,875 0.45 1,600,000 Pinnacle Bidco 6.375 15/02/2025 2,215,101 1.59 1,200,000 Platin 1426 5.375 15/06/2023 1,267,716 0.91 1,058,000 Prime Security Services Borrower 9.250 15/05/2023 1,112,223 0.80 2,100,000 Quebecor Media 6.625 15/01/2023 1,740,368 1.25 700,000 Residomo 3.375 15/10/2024 811,922 0.58 1,700,000 SBA Communications 4.875 15/07/2022 1,723,502 1.24 1,200,000 Sirius XM Radio 5.375 15/04/2025 1,249,700 0.90 600,000 Smurfit Kappa Acquisitions 2.875 15/01/2026 731,874 0.52 1,200,000 Stichting AK Rabobank Certificaten 6.500 29/12/2049 1,709,762 1.23 1,800,000 Summer BC Holdco A 9.250 31/10/2027 1,992,802 1.43 1,250,000 Superior Industries International 6.000 15/06/2025 1,237,539 0.89 600,000 Swedbank 5.625 17/03/2168 612,992 0.44 700,000 TalkTalk Telecom 5.375 15/01/2022 927,276 0.66 1,500,000 Tenneco 4.875 15/04/2022 1,667,027 1.20 1,800,000 Teva Pharmaceutical Finance 2.950 18/12/2022 1,650,641 1.18 1,200,000 Teva Pharmaceutical Finance Netherlands II 1.125 15/10/2024 1,079,768 0.77 1,300,000 Trivium Packaging Finance 3.750 15/08/2026 1,507,213 1.08 500,000 Tullow Oil 6.250 15/04/2022 505,600 0.36 1,900,000 Tullow Oil 7.000 01/03/2025 1,957,937 1.40 1,400,000 UniCredit 6.625 03/12/2166 1,663,098 1.19 2,100,000 Verisure Midholding 5.750 01/12/2023 2,421,052 1.74 1,400,000 Vermilion Energy 5.625 15/03/2025 1,336,405 0.96 800,000 Volkswagen International Finance 4.625 27/06/2167 985,965 0.71 1,300,000 Williams Scotsman International 7.875 15/12/2022 1,363,380 0.98 1,400,000 XPO Logistics 6.125 01/09/2023 1,447,250 1.04 300,000 XPO Logistics 6.750 15/08/2024 325,500 0.23 215 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – HIGH YIELD GLOBAL BOND FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date GBP Assets

Corporate Bonds (continued) 400,000 Yum! Brands 4.750 15/01/2030 420,625 0.30 130,659,498 93.74 Floating Rate Notes - 1.97% (2018: 0.57% - USD 1,032,889) 1,500,000 CPI Property 4.375 09/05/2166 1,730,167 1.24 900,000 Guala Closures 3.500 15/04/2024 1,017,956 0.73 2,748,123 1.97 Forward Contracts* - 0.56% (2018: 1.43% - USD 2,598,290) Unrealised Description Gain Buy CHF 3,745,234, Sell USD 3,768,201 29/11/2019 33,028 0.02 Buy CHF 7,708,534, Sell USD 7,755,806 29/11/2019 67,979 0.05 Buy EUR 100,000, Sell USD 110,142 13/12/2019 1,691 - Buy EUR 1,199,831, Sell USD 1,333,017 29/11/2019 7,183 0.01 Buy EUR 13,858, Sell USD 15,397 29/11/2019 83 - Buy EUR 144,511, Sell USD 161,361 29/11/2019 57 - Buy EUR 15,532, Sell USD 17,290 29/11/2019 59 - Buy EUR 1,607, Sell USD 1,789 29/11/2019 6 - Buy EUR 19,857,442, Sell USD 22,061,698 29/11/2019 118,887 0.09 Buy EUR 26,980, Sell USD 29,956 29/11/2019 181 - Buy EUR 2,898,616, Sell USD 3,220,374 29/11/2019 17,354 0.01 Buy EUR 350,000, Sell USD 386,338 13/12/2019 5,079 - Buy EUR 40,248,483, Sell USD 44,716,226 29/11/2019 240,968 0.17 Buy EUR 72,550, Sell USD 80,552 29/11/2019 486 - Buy GBP 10,000, Sell USD 12,845 29/11/2019 126 - Buy GBP 29,237, Sell USD 37,606 29/11/2019 318 - Buy GBP 300,000, Sell USD 368,362 13/12/2019 21,001 0.02 Buy GBP 33,486, Sell USD 43,427 29/11/2019 8 - Buy GBP 350,000, Sell USD 431,704 13/12/2019 22,553 0.02 Buy GBP 7,168,264, Sell USD 9,227,254 29/11/2019 70,715 0.05 Buy GBP 7,529,598, Sell USD 9,692,377 29/11/2019 74,279 0.05 Buy GBP 9,544,998, Sell USD 12,286,674 29/11/2019 94,161 0.07 Buy USD 1,523,605, Sell CAD 2,000,000 13/12/2019 4,715 - Buy USD 4,477,952, Sell EUR 4,000,000 13/12/2019 4,616 - 785,533 0.56

Fair Value USD Financial Assets At Fair Value Through Profit or Loss 136,017,720 97.58

Forward Contracts* - (0.97%) (2018: (0.20%) - USD (366,930)) Unrealised Description Loss Buy EUR 29, Sell USD 32 29/11/2019 - - Buy USD 10,170, Sell EUR 9,108 29/11/2019 (4) - Buy USD 12,044, Sell GBP 9,377 29/11/2019 (118) - Buy USD 13,845, Sell CHF 13,713 29/11/2019 (73) - Buy USD 147, Sell EUR 132 29/11/2019 (1) - Buy USD 18,603,900, Sell GBP 15,000,000 13/12/2019 (864,255) (0.62) Buy USD 19,808, Sell GBP 15,421 29/11/2019 (194) - Buy USD 5,408, Sell CHF 5,371 29/11/2019 (43) -

216 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – HIGH YIELD GLOBAL BOND FUND (continued)

Forward Contracts* (continued) Maturity Unrealised % of Net Description Date Loss Assets

Buy USD 555,468, Sell EUR 500,000 13/12/2019 (3,700) - Buy USD 57,275,615, Sell EUR 51,650,000 13/12/2019 (486,336) (0.35) (1,354,724) (0.97)

Fair Value USD Financial Liabilities At Fair Value Through Profit or Loss (1,354,724) (0.97)

Cash and Cash Equivalents 2,818,866 2.02 Other Net Assets 1,902,365 1.37

Net Asset Value as at 31 October 2019 139,384,227 100.00

* The counterparties to the forwards are Barclays Bank (BBB) (2018: (BBB)), Citibank (A+) (2018: (A+)) and Deutsche Bank (BBB+) (2018:(BBB+)).

Investments except for derivatives are transferable securities admitted to an official stock exchange or traded on a regulated market.

Portfolio Analysis (unaudited) % of Total Assets Transferable securities admitted to official stock exchanges or traded on a regulated market (2018: 92.03%) 92.91 OTC financial derivative instruments (2018: 1.35%) 0.54 Other current assets (2018: 6.62%) 6.55 100.00

217 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – ABSOLUTE RETURN BOND FUND

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date GBP Assets

Asset Backed Securities - 5.54% (2018: 3.81% - GBP 67,882,428) 1,180,000 City Greenwich Lewisham Rail Link 9.375 11/10/2020 81,942 0.01 51,437,000 Greene King Finance 2.031 15/09/2021 8,550,492 1.54 2,000,000 Greene King Finance 1.731 15/06/2031 1,039,450 0.19 12,661,000 Income Contingent Student Loans 1 2002-2006 1.858 24/07/2056 7,273,228 1.31 59,930,000 Marston's Issuer 2.160 15/07/2020 3,366,028 0.61 700,000 Marston's Issuer 2.105 15/10/2027 643,125 0.12 10,100,000 Mitchells & Butlers Finance 5.965 15/12/2023 2,578,099 0.46 1,200,000 THPA Finance 8.241 15/03/2028 1,391,993 0.25 7,980,000 Trafford Centre Finance 8.280 28/10/2022 5,837,553 1.05 30,761,910 5.54 Corporate Bonds - 86.01% (2018: 78.08% - GBP 1,391,252,167) 7,643,000 America Movil 6.375 06/09/2073 7,944,709 1.43 5,898,000 Arqiva Financing 4.040 30/06/2020 5,993,709 1.08 597,000 Aviva 6.875 21/11/2019 599,678 0.11 2,758,000 Aviva 6.625 03/06/2041 2,968,436 0.53 5,000,000 Aviva 3.875 03/07/2044 4,746,482 0.85 6,000,000 Aviva 5.902 29/11/2049 6,164,110 1.11 2,246,000 AXA 7.125 15/12/2020 2,388,141 0.43 6,000,000 Banco Bilbao Vizcaya Argentaria 6.750 29/12/2049 5,237,987 0.94 6,000,000 Bank of Scotland 9.375 15/05/2021 6,692,953 1.21 5,113,000 Bank of Scotland Capital Funding 7.754 29/03/2049 5,596,649 1.01 200,000 Bankia 9.000 16/11/2026 201,406 0.04 3,000,000 Bankinter 8.625 10/05/2021 2,873,011 0.52 3,000,000 Barclays 7.875 29/12/2049 3,242,897 0.58 5,000,000 Barclays 6.375 15/03/2168 5,227,122 0.94 1,000,000 Barclays Bank 10.000 21/05/2021 1,124,652 0.20 3,000,000 Barclays Bank 9.500 07/08/2021 3,401,210 0.61 8,105,000 Barclays Bank 7.125 29/10/2049 8,521,496 1.53 3,000,000 BHP Billiton Finance 4.750 22/04/2076 2,751,746 0.50 6,058,000 BNP Paribas 5.750 24/01/2022 6,618,206 1.19 4,500,000 BNP Paribas 7.625 29/12/2049 3,653,152 0.66 100,000 BUPA Finance 6.125 29/12/2049 103,903 0.02 9,000,000 Chorus 6.750 06/04/2020 9,196,936 1.66 2,510,000 Clerical Medical Finance 7.375 05/11/2019 2,540,369 0.46 3,600,000 Clydesdale Bank 2.250 21/04/2020 3,614,771 0.65 8,000,000 CNP Assurances 7.375 30/09/2041 8,871,196 1.60 4,343,000 CPUK Finance 4.250 28/08/2022 4,446,146 0.80 2,000,000 Credit Agricole 7.589 29/01/2049 2,026,741 0.37 11,000,000 Credit Suisse 5.750 18/09/2025 9,912,806 1.79 3,500,000 Daimler Finance North America 3.750 05/11/2021 2,786,143 0.50 5,000,000 Danske Bank 5.000 12/01/2022 4,062,009 0.73 8,000,000 Danske Bank 3.244 20/12/2025 6,247,813 1.13 5,000,000 Dell International 5.450 15/06/2023 4,190,899 0.75 5,700,000 Deutsche Bank 1.875 28/02/2020 5,699,403 1.03 5,000,000 Deutsche Bank 1.750 16/12/2021 4,956,658 0.89 600,000 Direct Line Insurance 9.250 27/04/2042 708,074 0.13 2,900,000 EDF 4.125 29/01/2049 2,663,248 0.48 5,450,000 EI 6.375 15/02/2022 5,552,226 1.00 613,000 EI 6.375 26/09/2031 629,369 0.11 5,000,000 EnBW Energie Baden-Wuerttemberg 3.625 02/04/2076 4,494,639 0.81 7,000,000 Enel 7.750 10/09/2075 7,382,589 1.33 218 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – ABSOLUTE RETURN BOND FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date GBP Assets

Corporate Bonds (continued) 400,000 Erste Group Bank 5.500 26/05/2025 315,218 0.06 5,400,000 Erste Group Bank 8.875 29/12/2049 5,301,054 0.96 3,200,000 ESB Finance 6.500 05/03/2020 3,254,818 0.59 9,181,000 FCA Bank 1.625 29/09/2021 9,179,276 1.65 700,000 FCE Bank 3.250 19/11/2020 709,691 0.13 8,213,000 Fidelity International 6.750 19/10/2020 8,603,178 1.55 2,650,000 Fidelity National Information Services 0.125 21/05/2021 2,286,107 0.41 5,480,000 Firstgroup 8.750 08/04/2021 5,993,449 1.08 3,900,000 Firstgroup 5.250 29/11/2022 4,253,358 0.77 5,000,000 Ford Motor Credit 5.875 02/08/2021 4,046,932 0.73 3,600,000 Ford Motor Credit 1.514 17/02/2023 3,094,301 0.56 5,000,000 Ford Motor Credit 4.535 06/03/2025 5,274,897 0.95 6,650,000 GE Capital UK Funding Unlimited 5.875 04/11/2020 6,938,778 1.25 7,825,000 General Electric 6.250 29/09/2020 8,142,402 1.47 5,000,000 General Motors Financial 3.200 06/07/2021 3,904,709 0.70 2,500,000 GKN 5.375 19/09/2022 2,702,652 0.49 1,300,000 Global Switch 4.375 13/12/2022 1,412,803 0.25 2,650,000 Goldman Sachs 5.500 12/10/2021 2,862,141 0.52 2,725,000 Great Rolling Stock 6.250 27/07/2020 2,816,757 0.51 1,950,000 HBOS Sterling Finance Jersey 7.881 29/12/2049 3,022,210 0.54 6,243,000 Heathrow Funding 6.000 20/03/2020 6,351,095 1.14 9,200,000 Innogy Finance 6.500 20/04/2021 9,887,047 1.78 10,650,000 Intesa Sanpaolo 5.250 28/01/2022 11,446,726 2.06 750,000 Investec Bank 9.625 17/02/2022 869,432 0.16 300,000 Iron Mountain 4.375 01/06/2021 234,187 0.04 7,647,000 J Sainsbury 6.500 29/12/2049 7,921,116 1.43 6,250,000 Juneau Investments 5.900 22/02/2021 6,453,589 1.16 8,500,000 Kelda Finance No 3 5.750 17/02/2020 8,573,814 1.54 6,795,000 Koninklijke KPN 6.875 14/03/2073 6,928,361 1.25 6,250,000 Legal & General 10.000 23/07/2041 7,131,179 1.28 100,000 Legal & General 5.125 14/11/2048 112,576 0.02 300,000 Lloyds Bank 5.750 09/07/2025 308,163 0.06 5,884,000 Marks & Spencer 6.125 02/12/2019 5,905,451 1.06 3,200,000 Muenchener Rueckversicherungs-Gesellschaft 6.625 26/05/2042 3,609,057 0.65 5,415,000 National Express 6.625 17/06/2020 5,585,235 1.01 10,140,000 National Westminster Bank 6.500 07/09/2021 11,061,090 1.99 230,000 Natwest Markets 6.200 29/03/2049 235,750 0.04 9,830,000 Northern Powergrid Yorkshire 9.250 17/01/2020 9,983,540 1.80 5,200,000 Orange 5.875 28/02/2049 5,649,920 1.02 600,000 Origin Energy Finance 2.500 23/10/2020 529,332 0.10 6,900,000 Partnership Assurance 9.500 24/03/2025 7,113,038 1.28 4,800,000 Phoenix 4.125 20/07/2022 5,013,713 0.90 495,000 Porterbrook Rail Finance 6.500 20/10/2020 518,313 0.09 6,095,000 QBE Insurance 6.115 24/05/2042 6,656,683 1.20 6,914,000 Rabobank Capital Funding Trust IV 5.556 29/10/2049 6,955,767 1.25 7,500,000 Royal Bank of Scotland 3.754 01/11/2029 5,830,429 1.05 366,000 Royal Bank of Scotland 7.648 29/08/2049 399,817 0.07 5,100,000 Scania 1.875 28/06/2022 5,119,168 0.92 660,000 Segro 6.750 23/11/2021 729,569 0.13 5,000,000 SSE 3.875 29/12/2049 5,040,653 0.91

219 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – ABSOLUTE RETURN BOND FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date GBP Assets

Corporate Bonds (continued) 3,072,000 Standard Chartered Bank 5.375 29/06/2049 3,132,672 0.56 908,000 Takeda Pharmaceutical 0.375 21/11/2020 785,583 0.14 6,900,000 Telefonica 5.597 12/03/2020 7,007,061 1.26 500,000 Telereal Securitisation 4.090 10/12/2033 517,162 0.09 480,000 Tesco Personal Finance 5.000 21/11/2020 496,620 0.09 3,800,000 Teva Pharmaceutical Finance Netherlands III 2.200 21/07/2021 2,794,293 0.50 9,250,000 Thames Water Utilities Finance 5.050 30/06/2020 9,453,855 1.70 192,000 Total 2.250 29/12/2049 169,553 0.03 2,900,000 Total 3.875 29/12/2049 2,712,103 0.49 142,000 UBS 6.375 19/11/2019 142,404 0.03 11,000,000 UBS 4.750 12/02/2026 9,980,454 1.80 6,000,000 UniCredit 6.572 14/01/2022 4,981,393 0.90 495,000 United Utilities Water 4.250 24/01/2020 429,945 0.08 2,500,000 Virgin Money 5.000 09/02/2026 2,520,918 0.45 1,200,000 Volkswagen Financial Services 1.875 07/09/2021 1,208,422 0.22 4,000,000 Volkswagen Financial Services 0.625 01/04/2022 3,481,866 0.63 9,578,000 Volkswagen International Finance 3.750 29/03/2049 8,576,696 1.54 1,500,000 Volkswagen International Finance 2.700 14/12/2165 1,333,015 0.24 1,000,000 Walgreens Boots Alliance 2.875 20/11/2020 1,015,353 0.18 4,000,000 Zurich Finance UK 6.625 29/10/2049 4,501,067 0.81 477,542,666 86.01 Floating Rate Notes - 1.71% (2018: 2.04% - GBP 36,505,855) 300,000 American International 2.490 15/03/2067 252,300 0.05 200,000 de Volksbank 3.750 05/11/2025 178,199 0.03 5,474,000 JPMorgan Chase 5.406 30/10/2166 4,259,768 0.77 500,000 Royal Bank of Scotland 4.424 29/03/2049 376,060 0.07 5,080,000 UniCredit 2.356 03/05/2025 4,404,397 0.79 9,470,724 1.71

Government Bonds – 0.00% (2018: 5.79% - GBP 103,171,556)

Bond Futures^ - 0.14% (2018: 0.14% - GBP 2,427,027) 325 Australia 10 Year Bond Future 16/12/2019 63,005 0.01 (1,150) Australia 3 Year Bond Future 16/12/2019 27,986 0.01 175 U.S. 10 Year Ultra Bond Future 19/12/2019 9,097 - (85) U.S. Ultra Bond Future 19/12/2019 665,115 0.12 765,203 0.14 Swaps^^ - 1.42% (2018: 0.75% - GBP 13,356,604) 5,000,000 CDS Buy Protection Aviva 20/12/2024 11,682 - 14,000,000 CDS Buy Protection Barclays 20/12/2024 196,998 0.04 10,000,000 CDS Buy Protection Intesa Sanpaolo 20/12/2024 431,704 0.08 6,500,000 CDS Buy Protection Royal Bank of Scotland 20/12/2024 94,434 0.02 12,000,000 CDS Buy Protection Societe Generale 20/12/2024 7,840 - 10,000,000 CDS Buy Protection Unicredit 20/12/2024 427,062 0.08 CDS Sell Protection Bayerische Motoren Werke 10,000,000 Aktiengesellschaft 20/12/2024 192,830 0.03 10,000,000 CDS Sell Protection Glencore Finance Europe 20/12/2024 1,532,718 0.28 15,000,000 CDS Sell Protection HSBC 20/12/2024 339,031 0.06 12,000,000 CDS Sell Protection Iberdrola International 20/12/2024 360,642 0.06 20,000,000 CDS Sell Protection Intesa Sanpaolo 20/12/2024 89,189 0.02

220 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – ABSOLUTE RETURN BOND FUND (continued)

Maturity Fair Value % of Net Nominal Security Description Date GBP Assets

Swaps^^ (continued) 58,000,000 CDS Sell Protection Markit CDX HY 5 Year 20/12/2024 3,526,409 0.64 10,000,000 CDS Sell Protection Rolls-Royce 20/12/2024 44,569 0.01 20,000,000 CDS Sell Protection Unicredit 20/12/2024 119,367 0.02 35,000,000 IRS Rec Euribor 0.098% EUR 6 Month 14/10/2029 354,005 0.06 56,000,000 IRS Rec Ice Libor 0.811% GBP 6 Month 30/10/2024 126,109 0.02 7,854,589 1.42 Forward Contracts* - 1.15% (2018: 0.03% - GBP 465,557) Unrealised Description Gain Buy CHF 408,255, Sell GBP 319,109 29/11/2019 341 - Buy GBP 11,132,125, Sell EUR 12,500,000 13/12/2019 361,323 0.07 Buy GBP 11,238,960, Sell USD 14,500,000 13/12/2019 66,869 0.01 Buy GBP 1,985,887, Sell USD 2,500,000 13/12/2019 59,665 0.01 Buy GBP 257,143, Sell USD 330,303 29/11/2019 2,496 - Buy GBP 39,376,457, Sell USD 48,850,000 13/12/2019 1,738,068 0.31 Buy GBP 4,865,158, Sell USD 6,000,000 13/12/2019 242,224 0.04 Buy GBP 6,574, Sell EUR 7,616 29/11/2019 16 - Buy GBP 8,799,064, Sell USD 11,000,000 13/12/2019 323,684 0.06 Buy GBP 90,286, Sell EUR 104,150 29/11/2019 597 - Buy GBP 99,820,459, Sell EUR 111,650,000 13/12/2019 3,615,659 0.65 6,410,942 1.15

Fair Value Financial Assets At Fair Value Through Profit or Loss GBP 532,806,034 95.97

Bond Futures^ - (0.16%) (2018: (0.36%) - GBP (6,400,958)) (125) Euro Bond Future 06/12/2019 (39,784) (0.01) 390 Euro-Bobl Future 06/12/2019 (263,325) (0.05) (58) Euro-Buxl 30 Year Bond Future 06/12/2019 (4,929) - (170) Long Gilt Future 27/12/2019 (121,080) (0.02) 325 U.S. 10 Year Note Future 19/12/2019 (468,256) (0.08) (897,374) (0.16) Swaps^^ - (2.45%) (2018: (1.35%) - GBP (24,125,999)) 10,000,000 CDS Buy Protection Anglo American Capital 20/12/2024 (1,711,992) (0.31) 10,000,000 CDS Buy Protection Daimler 20/12/2024 (178,636) (0.03) 7,000,000 CDS Buy Protection Danske Bank 20/12/2024 (67,184) (0.01) 6,500,000 CDS Buy Protection Ford Motor Credit 20/12/2024 (734,088) (0.13) 50,000,000 CDS Buy Protection Itraxx EUR Main 5 Year 20/12/2024 (1,123,573) (0.20) 30,000,000 CDS Buy Protection Itraxx EUR Main 5 Year 20/12/2024 (674,144) (0.12) 52,000,000 CDS Buy Protection Itraxx EUR 5 Year 20/12/2024 (5,815,788) (1.05) 10,000,000 CDS Buy Protection Leonardo 20/12/2024 (1,795,995) (0.32) 10,000,000 CDS Buy Protection Naturgy Energy 20/12/2024 (255,720) (0.05) 12,000,000 CDS Buy Protection SSE 20/12/2024 (208,140) (0.04) 12,000,000 CDS Buy Protection Standard Chartered 20/12/2024 (234,938) (0.04) 12,000,000 CDS Sell Protection Centrica 20/12/2024 (32,653) (0.01) 12,000,000 CDS Sell Protection ING Groep 20/12/2024 (35,782) (0.01) 10,000,000 IRS Rec Ice Libor 1.010% GBP 6 Month 30/10/2049 (202,350) (0.04) 350,000,000 IRS Rec Stibor 0.246% SEK 14/10/2029 (528,586) (0.09) (13,599,569) (2.45)

221 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – ABSOLUTE RETURN BOND FUND (continued)

Maturity Fair Value % of Net Description Date GBP Assets

Forward Contracts* - (0.22%) (2018: (0.11%) - GBP (2,032,695)) Unrealised Description Loss Buy EUR 14,000, Sell GBP 12,084 29/11/2019 (28) - Buy EUR 19,000,000, Sell GBP 16,914,085 13/12/2019 (542,466) (0.10) Buy EUR 19,000,000, Sell GBP 16,386,930 13/12/2019 (15,311) - Buy EUR 3,069, Sell GBP 2,660 29/11/2019 (17) - Buy EUR 8,187,668, Sell GBP 7,066,989 29/11/2019 (16,234) - Buy USD 14,700,000, Sell GBP 11,904,675 13/12/2019 (578,486) (0.11) Buy USD 9,990,555, Sell GBP 7,761,445 29/11/2019 (59,232) (0.01) (1,211,774) (0.22)

Fair Value GBP Financial Liabilities At Fair Value Through Profit or Loss (15,708,717) (2.83)

Cash and Cash Equivalents 33,502,716 6.03 Other Net Assets 4,606,028 0.83

Net Asset Value as at 31 October 2019 555,206,061 100.00

^ The counterparty to the bond futures is UBS (A+) (2018: (A+)). ^^ The counterparties to the swaps are Barclays Bank (BBB) (2018: (BBB)), BNP Paribas (A+) (2018: (A)), Credit Suisse (A+), Goldman Sachs International (A+) (2018: (A+)), HSBC Bank (AA-), J.P. Morgan Sceurities (A+) (2018: (A-)), Merrill Lynch International (A+) (2018:(A+)) and Morgan Stanley & Co International (BBB+).. * The counterparties to the forwards are Citibank (A+) (2018: (A+)) and J.P. Morgan Securities (A+).

Investments except for derivatives are transferable securities admitted to an official stock exchange or traded on a regulated market.

Portfolio Analysis (unaudited) % of Total Assets Transferable securities admitted to official stock exchanges or traded on a regulated market (2018: 87.40%) 88.10 Financial derivative instruments dealt in on a regulated market (2018: 0.13%) 1.47 OTC financial derivative instruments (2018: 0.76%) 1.09 Other current assets (2018: 11.71%) 9.34 100.00

222 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL EQUITY INCOME FUND

Fair Value % of Net Nominal Security Description USD Assets

Equities - 87.93% (2018: 88.12% - USD 400,268,602) 94,422 Air Products & Chemicals 20,138,796 4.08 43,666 Allianz 10,665,277 2.16 891,000 ANTA Sports Products 8,735,589 1.77 207,600 Bridgestone 8,675,904 1.76 51,767 BROADCOM 15,160,742 3.07 112,928 Chevron 13,116,023 2.65 206,334 Cia de Distribucion Integral Logista 4,339,738 0.88 90,255 Cinnati Financial 10,220,025 2.07 238,736 Cisco Systems 11,345,928 2.30 44,579 Clorox 6,585,210 1.33 67,196 CME 13,825,913 2.80 78,370 Darden Restaurants 8,800,559 1.78 743,600 DBS 14,201,142 2.87 155,804 Eaton 13,575,203 2.75 703,422 ING 7,955,383 1.61 57,307 Johnson & Johnson 7,569,395 1.53 118,194 JPMorgan Chase 14,765,976 2.99 42,562 Lockheed Martin 16,034,382 3.25 165,408 Macquarie 15,287,768 3.10 204,402 Maxim Integrated Products 11,992,265 2.43 173,298 Microsoft 24,848,334 5.03 167,339 Nestle 18,027,901 3.65 66,429 NextEra Energy 15,831,691 3.21 101,444 Nucor 5,462,252 1.11 235,271 Pfizer 9,033,230 1.83 1,008,000 Ping An Insurance Group Co of China 11,670,768 2.36 5,681,300 PTT 8,537,456 1.73 977,200 Sands China 4,835,565 0.98 644,000 Swire Pacific 6,135,184 1.24 362,055 Taiwan Semiconductor Manufacturing 18,687,469 3.78 247,000 Takeda Pharmaceutical 8,966,248 1.82 39,000 Tokyo Electron 7,957,360 1.61 174,422 Total 9,192,270 1.86 714,752 Treasury Wine Estates 8,654,527 1.75 158,981 Vinci 17,782,397 3.60 64,153 Watsco 11,313,382 2.29 36,633 Zurich Insurance 14,301,098 2.90 434,228,350 87.93 Equity - UK Large Cap - 7.74% (2018: 8.66% - USD 39,336,893) 130,664 AstraZeneca 12,606,917 2.55 475,394 GlaxoSmithKline 10,945,399 2.22 155,037 Rio Tinto 8,039,822 1.63 3,069,943 Taylor Wimpey 6,601,314 1.34 38,193,452 7.74 REIT - UK Small Cap - 1.80% (2018: 1.68% - USD 7,627,124) 1,579,872 Secure Income REIT 8,885,868 1.80

223 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL EQUITY INCOME FUND (continued)

Forward Contracts* - 0.03% (2018: 0.00% - USD 6,293) Maturity Unrealised % of Net Description Date Gain Assets Buy EUR 3,084,000, Sell HKD 26,923,783 29/11/2019 9,435 - Buy EUR 38,227,000, Sell USD 42,573,410 29/11/2019 125,805 0.03 Buy EUR 6,742,000, Sell SGD 10,224,580 29/11/2019 16,846 - 152,086 0.03

Fair Value USD Financial Assets At Fair Value Through Profit or Loss 481,459,756 97.50

Forward Contracts* - (0.01%) (2018: (0.05%) - USD (222,655)) Unrealised Description Loss Buy EUR 3,871,000, Sell AUD 6,277,175 29/11/2019 (6,759) - Buy EUR 4,099,000, Sell JPY 495,976,951 29/11/2019 (13,815) (0.01) Buy EUR 5,114,000, Sell CHF 5,647,492 29/11/2019 (19,594) - Buy EUR 7,584,000, Sell GBP 6,541,238 29/11/2019 (13,384) - (53,552) (0.01)

Fair Value USD Financial Liabilities At Fair Value Through Profit or Loss (53,552) (0.01)

Cash and Cash Equivalents 13,101,868 2.65 Other Net Liabilities (678,214) (0.14)

Net Asset Value as at 31 October 2019 493,829,858 100.00

* The counterparty to the forwards is Citibank (A+) (2018: (A+)).

Investments except for derivatives are transferable securities admitted to an official stock exchange or traded on a regulated market.

Portfolio Analysis (unaudited) % of Total Assets Transferable securities admitted to official stock exchanges or traded on a regulated market (2018: 97.69%) 96.97 OTC financial derivative instruments (2018: 0.00%) 0.03 Other current assets (2018: 2.31%) 3.00 100.00

224 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – ABSOLUTE RETURN BOND GLOBAL FUND

Asset Backed Securities – 0.00% (2018: 3.82% - GBP 4,765,679)

Corporate Bonds - 0.00% (2018: 78.85% - GBP 98,361,124)

Floating Rate Notes - 0.00% (2018: 4.51% - GBP 5,630,107)

Government Bonds – 0.00% (2018: 2.76% - GBP 3,445,745)

Bond Futures - 0.00% (2018: 0.14% - GBP 168,579)

Swaps - 0.00% (2018: 0.18% - GBP 225,672)

Forward Contracts* - 0.00% (2018: 0.05% - GBP 55,967) Maturity Unrealised % of Net Description Date Gain Assets Buy CHF 16,810, Sell GBP 13,139 29/11/2019 14 - Buy GBP 139,727, Sell USD 180,316 29/11/2019 712 - Buy GBP 36,837, Sell EUR 42,704 29/11/2019 63 - 789 -

Fair Value GBP Financial Assets At Fair Value Through Profit or Loss 789 -

Bond Futures - (0.00%) (2018: (0.34%) - GBP (438,723))

Swaps - (0.00%) (2018: (0.70%) - GBP (869,766))

Forward Contracts* - 0.00% (2018: (0.20%) - GBP (244,886)) Unrealised Description Loss Buy EUR 42,704, Sell GBP 36,859 29/11/2019 (85) - Buy GBP 13,152, Sell CHF 16,810 29/11/2019 (1) - Buy GBP 2,000,150, Sell SEK 25,037,182 29/11/2019 (582) - Buy SEK 25,037,182, Sell GBP 2,001,995 29/11/2019 (1,262) - Buy USD 180,316, Sell GBP 140,084 29/11/2019 (1,069) - (2,999) -

Fair Value GBP Financial Liabilities At Fair Value Through Profit or Loss (2,999) -

Overdrawn Cash and Cash Equivalents (478,638) - Other Net Assets 480,848 -

Net Asset Value as at 31 October 2019 - -

* The counterparty to the forwards is Citibank (A+) (2018: (A+)).

Portfolio Analysis (unaudited) % of Total Assets OTC financial derivative instruments (2018: 0.23%) 0.01 Other current assets (2018: 11.22%) 99.99 100.00

225 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – ABSOLUTE RETURN BOND CONSTRAINED FUND

Asset Backed Securities – 0.00% (2018: 1.95% - EUR 1,338,644)

Corporate Bonds - 0.00% (2018: 90.10% - EUR 61,886,859)

Floating Rate Notes - 0.00% (2018: 0.79% - EUR 539,431)

Government Bonds – 0.00% (2018: 2.20% - EUR 1,508,337)

Bond Futures - 0.00% (2018: 0.14% - EUR 96,986)

Swaps - 0.00% (2018: 0.10% - EUR 70,919)

Forward Contracts* - 0.00% (2018: 0.00% - EUR 2,484) Maturity Unrealised % of Net Description Date Gain Assets Buy CHF 333,429, Sell EUR 301,978 29/11/2019 991 -

Fair Value EUR Financial Assets At Fair Value Through Profit or Loss 991 -

Bond Futures - (0.00%) (2018: (0.32%) - EUR (218,777))

Swaps - (0.00%) (2018: (0.34%) - EUR (233,524))

Forward Contracts* - 0.00% (2018: (0.57%) - EUR (389,423)) Unrealised Description Loss Buy EUR 302,432, Sell CHF 333,429 29/11/2019 (537) -

Fair Value EUR Financial Liabilities At Fair Value Through Profit or Loss (537) -

Cash and Cash Equivalents 31,960,468 - Other Net Liabilities (31,960,922) -

Net Asset Value as at 31 October 2019 - -

* The counterparty to the forwards is Citibank (A+) (2018: (A+)).

Portfolio Analysis (unaudited) % of Total Assets OTC financial derivative instruments (2018: 0.11%) - Other current assets (2018: 6.20%) 100.00 100.00

226 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED INCOME FUND

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date EUR Assets

Corporate Bonds - 27.46% (2018: 22.81% - EUR 35,557,984) 472,000 1011778 BC 4.250 15/05/2024 435,144 0.25 700,000 AerCap 5.875 10/10/2079 656,897 0.38 400,000 Algeco Global Finance 6.500 15/02/2023 400,133 0.23 500,000 Anheuser-Busch 5.450 23/01/2039 566,928 0.33 300,000 Annington Funding 3.935 12/07/2047 402,682 0.23 786,000 APT Pipelines 4.250 15/07/2027 755,512 0.44 700,000 Ardagh Packaging Finance 5.250 15/08/2027 641,986 0.37 400,000 Argentum Netherlands 5.625 15/08/2052 398,369 0.23 572,000 Arqiva Broadcast Finance 6.750 30/09/2023 714,812 0.42 700,000 Ashtead Capital 4.125 15/08/2025 643,257 0.38 566,000 AT&T 5.150 15/03/2042 587,537 0.34 400,000 Aviva 6.875 20/05/2058 661,906 0.39 500,000 AXA 5.453 29/11/2049 655,516 0.38 472,000 Ball 4.375 15/12/2020 432,617 0.25 400,000 Banco Bilbao Vizcaya Argentaria 5.875 24/08/2166 421,880 0.25 600,000 Banco Bilbao Vizcaya Argentaria 6.500 12/05/2167 554,868 0.32 600,000 Banco Santander 5.481 12/03/2049 602,946 0.35 892,000 Bank of America 5.875 15/09/2166 880,579 0.51 800,000 Bankia 6.375 19/12/2166 850,774 0.50 800,000 Barclays 7.875 29/12/2049 767,151 0.45 600,000 Barclays 7.125 15/09/2167 764,989 0.45 393,000 Becton Dickinson 3.020 24/05/2025 485,138 0.28 500,000 Berry Global 5.625 15/07/2027 476,594 0.28 786,000 BNP Paribas 6.750 14/03/2167 743,758 0.43 472,000 BUPA Finance 5.000 08/12/2026 624,264 0.36 600,000 CaixaBank 6.750 13/09/2165 663,575 0.39 600,000 CNAC HK Finbridge 4.625 14/03/2023 566,628 0.33 400,000 Commerzbank 7.000 09/04/2168 371,651 0.22 800,000 Connect Finco 6.750 01/10/2026 746,255 0.43 800,000 Credit Agricole 8.125 23/03/2165 860,660 0.50 900,000 Credit Suisse 7.500 29/12/2049 897,139 0.52 200,000 DH Europe Finance II 2.600 15/11/2029 180,860 0.11 297,000 Digital Realty Trust 3.700 15/08/2027 281,185 0.16 400,000 DKT Finance 7.000 17/06/2023 424,230 0.25 630,000 DP World 6.850 02/07/2037 743,810 0.43 500,000 Drax Finco 6.625 01/11/2025 477,061 0.28 600,000 Eircom Finance 3.500 15/05/2026 630,320 0.37 472,000 Energizer Gamma Acquisition 4.625 15/07/2026 498,853 0.29 300,000 Ethias 5.000 14/01/2026 355,222 0.21 472,000 Eurofins Scientific 3.250 13/11/2166 458,986 0.27 500,000 Eurofins Scientific 2.875 09/11/2168 491,465 0.29 650,000 Ford Motor Credit 4.389 08/01/2026 582,371 0.34 500,000 GEMS MENASA Cayman 7.125 31/07/2026 467,872 0.27 520,000 HSBC Bank Capital Funding Sterling 1 5.844 29/11/2049 812,976 0.47 200,000 Imperial Brands Finance 3.500 26/07/2026 178,396 0.10 786,000 ING Groep 6.750 16/04/2167 749,853 0.44 500,000 International Business Machines 4.150 15/05/2039 506,545 0.30 400,000 James Hardie International Finance 4.750 15/01/2025 373,480 0.22 800,000 La Mondiale 4.800 18/01/2048 715,073 0.42 393,000 Legal & General 5.500 27/06/2064 542,994 0.32 556,000 Live Nation Entertainment 4.875 01/11/2024 517,425 0.30 227 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED INCOME FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date EUR Assets Corporate Bonds (continued) 393,000 M&G 5.625 20/10/2051 520,974 0.30 400,000 M&G 5.560 20/07/2055 521,174 0.30 550,000 MARB BondCo 6.875 19/01/2025 516,992 0.30 493,000 McLaren Finance 5.000 01/08/2022 550,237 0.32 393,000 MPT Operating Partnership 5.250 01/08/2026 371,507 0.22 6,000 Nationwide Building Society 10.250 29/06/2049 1,128,379 0.66 472,000 Panther BF Aggregator 2 4.375 15/05/2026 477,900 0.28 350,000 Par Petroleum 7.750 15/12/2025 313,341 0.18 472,000 Pension Insurance 8.000 23/11/2026 682,726 0.40 400,000 Pension Insurance 7.375 25/01/2168 501,986 0.29 550,000 Pinnacle Bidco 6.375 15/02/2025 682,968 0.40 493,000 Platin 1426 5.375 15/06/2023 467,145 0.27 200,000 Quebecor Media 6.625 15/01/2023 148,667 0.09 301,000 Reynolds American 5.700 15/08/2035 303,491 0.18 472,000 Sealed Air 6.500 01/12/2020 437,997 0.26 550,000 Sirius XM Radio 5.375 15/04/2025 513,749 0.30 660,475 Stichting AK Rabobank Certificaten 6.500 29/12/2049 844,063 0.49 400,000 Summer BC Holdco B 5.750 31/10/2026 401,524 0.23 800,000 Swedbank 6.000 29/12/2049 746,026 0.43 200,000 Swiss Re Finance Luxembourg 4.250 09/04/2168 183,873 0.11 500,000 Syngenta Finance 5.182 24/04/2028 473,801 0.28 500,000 Takeda Pharmaceutical 5.000 26/11/2028 525,159 0.31 200,000 Takeda Pharmaceutical 3.000 21/11/2030 240,813 0.14 400,000 Tenneco 5.000 15/07/2024 397,859 0.23 900,000 Teva Pharmaceutical Finance 2.950 18/12/2022 740,264 0.43 600,000 Trivium Packaging Finance 5.500 15/08/2026 564,400 0.33 600,000 Tullow Oil 7.000 01/03/2025 554,575 0.32 786,000 UBS 7.000 29/12/2049 788,219 0.46 700,000 UniCredit 6.625 03/12/2166 745,851 0.43 600,000 UniCredit 7.500 03/06/2167 686,625 0.40 252,000 Vermilion Energy 5.625 15/03/2025 215,762 0.13 600,000 Volkswagen International Finance 3.250 18/11/2030 716,367 0.42 372,000 Williams Scotsman International 7.875 15/12/2022 349,930 0.20 314,000 Williams Scotsman International 6.875 15/08/2023 296,575 0.17 300,000 XPO Logistics 6.750 15/08/2024 291,954 0.17 47,123,995 27.46 Equities - 34.85% (2018: 33.68% - EUR 52,488,456) 3,214 Aena SME 525,650 0.31 2,971 Air Products & Chemicals 568,365 0.33 7,998 Allianz 1,752,162 1.02 41,890 ANTA Sports Products 368,374 0.21 8,836 ASAHI 397,770 0.23 61,223 Atlantia 1,349,355 0.79 22,087 Bridgestone 827,920 0.48 7,073 BROADCOM 1,857,955 1.08 352,900 CapitaLand 836,005 0.49 3,054 Chevron 318,151 0.19 63,177 Cia de Distribucion Integral Logista 1,191,834 0.69 48,269 Cisco Systems 2,057,569 1.20 73,528 CK Asset 460,169 0.27 84,000 CK Infrastructure 543,255 0.32 5,542 CME 1,022,777 0.60

228 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED INCOME FUND (continued)

Fair Value % of Net Nominal Security Description EUR Assets Equities (continued) 13,462 Darden Restaurants 1,355,920 0.79 79,977 DBS 1,369,976 0.80 42,099 Deutsche Wohnen 1,425,683 0.83 21,510 Eaton 1,681,017 0.98 9,735 Eiffage 934,268 0.54 21,427 Enagas 480,286 0.28 39,394 Endesa 959,835 0.56 28,770 Ferrovial 759,672 0.44 802,442 Greencoat Renewables 972,961 0.57 621,113 Infratil 1,750,348 1.02 126,548 ING 1,283,703 0.75 54,341 Inmobiliaria Colonial Socimi 630,084 0.37 7,023 Johnson & Johnson 832,032 0.49 9,585 JPMorgan Chase 1,074,046 0.63 61,682 KDDI 1,534,508 0.89 2,613,700 Land & Houses 751,164 0.44 3,681 Lockheed Martin 1,243,827 0.72 19,359 Macquarie 1,604,851 0.94 22,272 Maxim Integrated Products 1,172,032 0.68 3,621 Microsoft 465,689 0.27 11,740 Nestle 1,134,436 0.66 4,439 NextEra Energy 948,896 0.55 146,299 ORIX 2,069,973 1.21 46,406 Pfizer 1,598,133 0.93 129,731 Ping An Insurance Group Co of China 1,347,246 0.78 408,429 PTT 550,505 0.32 289,139 Sands China 1,283,319 0.75 14,161 Shin-Etsu Chemical 1,428,312 0.83 767,132 Singapore Telecommunications 1,670,705 0.97 61,794 Swire Pacific 528,022 0.31 383,958 Swire Pacific 508,063 0.30 49,022 Taiwan Semiconductor Manufacturing 2,269,504 1.32 47,534 Takeda Pharmaceutical 1,547,684 0.90 203,364 Tilt Renewables 338,595 0.20 5,580 Tokyo Electron 1,021,181 0.59 146,825 Treasury Wine Estates 1,594,601 0.93 221,398 UOL 1,140,147 0.66 15,091 Vinci 1,514,005 0.88 2,753 Zurich Insurance 963,978 0.56 59,816,518 34.85 Equity - UK Large Cap - 6.69% (2018: 9.95% - EUR 15,506,439) 11,016 AstraZeneca 953,325 0.56 65,709 GlaxoSmithKline 1,356,959 0.79 308,878 Grainger 933,137 0.55 634,512 International Public Partnerships 1,169,756 0.68 583,596 Legal & General 1,781,730 1.04 69,646 Mondi 1,293,270 0.75 83,295 National Grid 874,248 0.51 21,774 Rio Tinto 1,012,776 0.59 43,565 Royal Dutch Shell 1,135,212 0.66 501,059 Taylor Wimpey 966,391 0.56 11,476,804 6.69

229 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED INCOME FUND (continued)

Fair Value % of Net Nominal Security Description EUR Assets

Equity - UK Small Cap - 7.06% (2018: 7.78% - EUR 12,134,564) 202,733 3i Infrastructure 675,741 0.39 613,976 BBGI SICAV 1,156,162 0.67 744,693 DP Aircraft I 510,979 0.30 1,695,717 Greencoat UK Wind 2,893,555 1.69 685,412 HICL Infrastructure 1,371,946 0.80 763,789 NextEnergy Solar 1,067,605 0.62 235,295 Phoenix 1,904,140 1.11 1,661,829 Renewables Infrastructure 2,540,179 1.48 12,120,307 7.06 Coupon Maturity Rate% Date Government Bonds - 12.87% (2018: 9.33% - EUR 14,530,010) 19,937,000,000 Indonesia (Government of) 8.375 15/03/2024 1,366,615 0.80 16,507,400 Mexican Bonos 5.000 11/12/2019 771,075 0.45 16,507,400 Mexican Bonos 8.000 11/06/2020 779,277 0.45 16,991,000 Mexican Bonos 6.500 09/06/2022 794,982 0.47 1,372,000 Mexico (Government of) 4.150 28/03/2027 1,315,264 0.77 13,213,344 South Africa (Government of) 10.500 21/12/2026 861,272 0.50 700,000 Turkey (Government of) 7.250 23/12/2023 670,287 0.39 1,254,000 Turkey (Government of) 7.375 05/02/2025 1,208,125 0.70 4,672,600 U.S. Treasury Note 2.625 15/08/2020 4,224,118 2.46 1,500,000 U.S. Treasury Note 1.375 31/08/2020 1,342,889 0.78 3,485,400 U.S. Treasury Note 2.625 15/11/2020 3,158,927 1.84 4,829,800 U.S. Treasury Note 1.125 31/08/2021 4,298,204 2.51 1,414,900 U.S. Treasury Note 2.125 31/12/2022 1,292,779 0.75 22,083,814 12.87 Investment Funds - Non Bond - 0.52% (2018: 0.61% - EUR 951,371) 632,582 JLEN Environmental Assets 886,046 0.52

Overseas REIT - 6.56% (2018: 11.12% - EUR 17,324,183) 3,470 Altarea 686,366 0.40 768,411 Ascendas REIT 1,602,601 0.93 814,405 Ascott Residence Trust 737,906 0.43 208,600 CapitaLand Commercial Trust 281,103 0.16 66,334 Granite Point Mortgage Trust 1,106,360 0.64 51,308 Host Hotels & Resorts 766,468 0.45 2,139 Japan Hotel REIT Investment 1,591,704 0.93 742 Japan Rental Housing Investments 637,661 0.37 67,160 New Residential Investment 953,878 0.56 20,200 Starwood Property Trust 445,618 0.26 109,793 Sydney Airport 596,037 0.35 35,632 TPG RE Finance Trust 646,227 0.38 43,908 Transurban 401,935 0.23 65,215 Two Harbors Investment 811,020 0.47 11,264,884 6.56 REIT - UK Large Cap - 0.90% (2018: 1.40% - EUR 2,186,487) 878,991 Tritax Big Box REIT 1,547,923 0.90

REIT - UK Small Cap - 0.76% (2018: 1.16% - EUR 1,809,998) 259,745 Secure Income REIT 1,310,356 0.76

230 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED INCOME FUND (continued)

Maturity Fair Value % of Net Nominal Security Description Date EUR Assets

Bond Futures^ - 0.00% (2018: 0.00% - EUR Nil) (20) Long Gilt Future 27/12/2019 4,301 -

Forward Contracts* - 0.42% (2018: 0.54% - EUR 842,586) Unrealised Description Gain Buy BRL 3,700,000, Sell EUR 801,246 01/11/2019 34,170 0.02 Buy BRL 3,750,000, Sell EUR 834,871 06/12/2019 7,993 - Buy BRL 7,500,000, Sell EUR 1,656,961 18/11/2019 32,637 0.02 Buy CHF 16,713, Sell EUR 15,136 29/11/2019 50 - Buy CHF 315,434, Sell EUR 285,681 29/11/2019 937 - Buy EUR 11,810,131, Sell SGD 17,909,000 09/12/2019 36,112 0.02 Buy EUR 1,383,826, Sell THB 46,500,000 09/12/2019 5,765 0.01 Buy EUR 1,687,389, Sell INR 133,000,000 01/11/2019 5,474 - Buy EUR 345,044, Sell MXN 7,380,000 09/12/2019 2,344 - Buy EUR 3,531,235, Sell HKD 30,800,000 09/12/2019 15,941 0.01 Buy EUR 5,102,760, Sell JPY 615,000,000 09/12/2019 4,644 - Buy EUR 6,335,966, Sell TWD 214,200,000 18/11/2019 22,014 0.01 Buy EUR 71,432,422, Sell USD 79,500,000 09/12/2019 319,610 0.20 Buy EUR 801,745, Sell IDR 12,500,000,000 01/11/2019 2,995 - Buy EUR 943,050, Sell ZAR 15,420,000 09/12/2019 38,450 0.02 Buy GBP 11,087, Sell EUR 12,790 29/11/2019 85 - Buy GBP 116,007, Sell EUR 134,447 29/11/2019 266 - Buy GBP 118,054, Sell EUR 136,513 29/11/2019 577 - Buy GBP 1,834,115, Sell EUR 2,125,158 29/11/2019 4,703 - Buy GBP 210,000, Sell EUR 243,453 29/11/2019 409 - Buy GBP 3,230,080, Sell EUR 3,742,638 29/11/2019 8,283 0.01 Buy GBP 39,677, Sell EUR 45,881 29/11/2019 194 - Buy GBP 48,100,312, Sell EUR 55,733,002 29/11/2019 123,341 0.07 Buy KRW 4,212,394,500, Sell USD 3,585,718 01/11/2019 31,282 0.02 Buy MXN 35,200,000, Sell EUR 1,630,977 05/11/2019 16,222 0.01 714,498 0.42

Fair Value EUR Financial Assets At Fair Value Through Profit or Loss 168,349,446 98.09

Bond Futures - (0.00%) (2018: (0.08%) - EUR (128,172))

Forward Contracts* - (0.26%) (2018: (1.24%) - EUR (1,949,526)) Unrealised Description Loss Buy CHF 69, Sell EUR 62 29/11/2019 - - Buy CHF 72, Sell EUR 65 29/11/2019 - - Buy EUR 2,094,336, Sell NZD 3,660,000 09/12/2019 (6,433) - Buy EUR 2,137,144, Sell CHF 2,354,000 09/12/2019 (2,113) - Buy EUR 38,354,526, Sell GBP 33,277,000 09/12/2019 (271,719) (0.16) Buy EUR 4,066,690, Sell AUD 6,626,000 09/12/2019 (23,454) (0.01)

231 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED INCOME FUND (continued)

Forward Contracts* (continued) Maturity Unrealised % of Net Description Date Loss Assets Buy EUR 826,518, Sell BRL 3,700,000 01/11/2019 (8,897) (0.01) Buy EUR 898, Sell USD 1,003 29/11/2019 - - Buy GBP 23,427, Sell EUR 27,209 29/11/2019 (5) - Buy GBP 56, Sell EUR 65 29/11/2019 - - Buy IDR 12,500,000,000, Sell EUR 800,871 01/11/2019 (2,121) - Buy IDR 13,200,000,000, Sell EUR 842,966 06/12/2019 (6,482) (0.01) Buy INR 133,000,000, Sell EUR 1,686,683 01/11/2019 (4,767) - Buy INR 133,000,000, Sell EUR 1,678,657 06/12/2019 (8,017) (0.01) Buy USD 1,003, Sell EUR 901 29/11/2019 (3) - Buy USD 1,220,776, Sell EUR 1,098,852 29/11/2019 (5,937) - Buy USD 312,628, Sell EUR 281,404 29/11/2019 (1,520) - Buy USD 3,550,000, Sell KRW 4,212,394,500 01/11/2019 (63,320) (0.04) Buy USD 3,747,328, Sell KRW 4,400,000,000 06/12/2019 (18,714) (0.01) Buy USD 4,849,393, Sell EUR 4,365,063 29/11/2019 (23,584) (0.01) Buy USD 663,957, Sell EUR 597,645 29/11/2019 (3,229) - Buy USD 7,330, Sell EUR 6,585 29/11/2019 (23) - Buy USD 81, Sell EUR 73 29/11/2019 - - Buy USD 880,421, Sell EUR 792,489 29/11/2019 (4,282) - (454,620) (0.26)

Fair Value EUR Financial Liabilities At Fair Value Through Profit or Loss (454,620) (0.26)

Cash and Cash Equivalents 2,952,410 1.71 Other Net Assets 785,192 0.46

Net Asset Value as at 31 October 2019 171,632,428 100.00

^ The counterparty to the bond futures is UBS (A+) (2018: (A+)). * The counterparties to the forwards are Barclays Bank (BBB) (2018: (BBB)), BNP Paribas (A+) (2018: (A)) and Citibank (A+) (2018: (A+)).

Investments except for derivatives are transferable securities admitted to an official stock exchange or traded on a regulated market.

Portfolio Analysis (unaudited) % of Total Assets Transferable securities admitted to official stock exchanges or traded on a regulated market (2018: 94.62%) 95.32 Financial derivatives instruments dealt in on a regulated market (2018: 0.00%) - OTC financial derivative instruments (2018: 0.52%) 0.41 Other current assets (2018: 4.86%) 4.27 100.00

232 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL SUSTAINABLE EQUITY FUND

Fair Value % of Net Nominal Security Description EUR Assets

Equities - 92.42% (2018: 90.82% - EUR 70,164,684) 52,216 Albemarle 2,844,973 2.50 79,672 Alfen Beheer 1,160,821 1.02 48,383 Amadeus IT 3,198,600 2.81 219,834 Amplifon 4,974,843 4.37 285,000 ANTA Sports Products 2,506,245 2.20 20,917 Avery Dennison 2,398,635 2.11 93,877 Badger Daylighting 2,418,564 2.13 36,715 Bandwidth 1,850,240 1.63 95,402 BASIC-FIT 2,635,480 2.32 63,305 Bottomline Technologies 2,326,029 2.04 381,000 Chroma ATE 1,714,821 1.51 12,758 Cochlear 1,662,668 1.46 25,803 DiaSorin 2,581,590 2.27 66,203 Everbridge 4,130,488 3.63 24,391 Fidelity National Information Services 2,882,115 2.53 38,578 First Republic Bank 3,681,156 3.23 17,327 Gartner 2,394,682 2.10 26,178 ICON 3,448,057 3.03 181,506 IDP Education 1,985,845 1.74 9,493 Illumina 2,516,680 2.21 28,409 Insulet 3,703,439 3.25 8,300 Keyence 4,733,570 4.16 36,739 Kingspan 1,723,426 1.51 108,801 Kornit Digital 3,315,069 2.91 3,477 MarketAxess 1,149,025 1.01 19,548 Penumbra 2,734,335 2.40 57,300 PeptiDream 2,591,590 2.28 43,241 Planet Fitness 2,469,418 2.17 774,773 Plug Power 1,838,079 1.61 21,500 Shimano 3,228,300 2.84 214,000 Simplo Technology 1,770,297 1.56 66,839 Slack Technologies 1,318,615 1.16 29,163 SolarEdge Technologies 2,222,211 1.95 70,113 STAAR Surgical 2,062,702 1.81 382,118 Technogym 3,693,170 3.24 28,846 Teradyne 1,583,826 1.39 15,143 Tesla 4,278,587 3.76 23,456 Tetra Tech 1,840,883 1.62 105,474 Tomra Systems 2,520,063 2.21 7,807 Universal Display 1,402,585 1.23 83,586 Veracyte 1,719,102 1.51 105,210,824 92.42 Equity - UK Large Cap - 2.30% (2018: 2.78% - EUR 2,144,087) 120,556 RELX 2,616,637 2.30

Equity - UK Small Cap - 1.51% (2018: 1.76% - EUR 1,362,926) 331,097 Hotel Chocolat 1,716,494 1.51

233 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL SUSTAINABLE EQUITY FUND (continued)

Fair Value % of Net GBP Assets Financial Assets At Fair Value Through Profit or Loss 109,543,955 96.23

Cash and Cash Equivalents 5,562,941 4.89 Other Net Liabilities (1,274,061) (1.12)

Net Asset Value as at 31 October 2019 113,832,835 100.00

Investments except for derivatives are transferable securities admitted to an official stock exchange or traded on a regulated market.

Portfolio Analysis (unaudited) % of Total Assets Transferable securities admitted to official stock exchanges or traded on a regulated market (2018: 94.77%) 94.50 Other current assets (2018: 5.23%) 5.50 100.00

234 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED GROWTH FUND

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date EUR Assets

Corporate Bonds - 13.58% (2018: 5.07% - EUR 3,693,021) 200,000 APT Pipelines 4.250 26/11/2024 262,510 0.46 400,000 Banco Bilbao Vizcaya Argentaria 5.875 24/08/2166 421,880 0.74 300,000 Banco Santander 5.481 12/03/2049 301,473 0.53 400,000 Bankia 6.000 18/10/2165 414,125 0.72 200,000 Barclays 7.125 15/09/2167 254,996 0.45 200,000 Berry Global 5.625 15/07/2027 190,637 0.33 200,000 CaixaBank 6.750 13/09/2165 221,192 0.39 200,000 Commerzbank 7.000 09/04/2168 185,826 0.32 200,000 Credit Agricole 8.125 23/03/2165 215,165 0.38 400,000 Credit Suisse 7.500 29/12/2049 398,729 0.70 300,000 Danske Bank 6.125 28/03/2024 275,687 0.48 200,000 El 7.500 15/03/2024 249,976 0.44 300,000 Eurofins Scientific 3.250 13/11/2166 291,729 0.51 200,000 HSBC 6.875 29/12/2049 187,585 0.33 400,000 ING Groep 6.750 16/04/2167 381,605 0.67 200,000 M&G 5.560 20/07/2055 260,587 0.45 100,000 McLaren Finance 5.000 01/08/2022 111,610 0.19 200,000 Pension Insurance 8.000 23/11/2026 289,290 0.50 200,000 Pension Insurance 7.375 25/01/2168 250,993 0.44 200,000 Pinnacle Bidco 6.375 15/02/2025 248,352 0.43 200,000 Platin 1426 5.375 15/06/2023 189,511 0.33 200,000 RBS Capital Trust II 6.425 29/12/2049 247,244 0.43 200,000 Summer BC Holdco B 5.750 31/10/2026 200,762 0.35 400,000 Swedbank 6.000 29/12/2049 373,013 0.65 200,000 Takeda Pharmaceutical 5.000 26/11/2028 210,064 0.37 300,000 UniCredit 6.625 03/12/2166 319,650 0.56 300,000 UniCredit 7.500 03/06/2167 343,313 0.60 300,000 Volkswagen International Finance 4.625 27/06/2167 331,632 0.58 150,000 Williams Scotsman International 6.875 15/08/2023 141,676 0.25 7,770,812 13.58 Equities - 33.87% (2018: 36.08% - EUR 26,292,231) 6,217 Activision Blizzard 312,579 0.55 1,857 Allianz 406,822 0.71 4,579 Amdocs 267,762 0.47 2,008 Ansys 396,503 0.69 38,000 ANTA Sports Products 334,166 0.58 9,826 AT&T 339,182 0.59 23,848 Atlantia 525,610 0.92 18,080 Ayala 274,747 0.48 7,592 Badger Daylighting 195,594 0.34 3,600 BrainPad 171,180 0.30 977 BROADCOM 256,641 0.45 1,547 Burlington Stores 266,656 0.47 58,400 CapitaLand 138,347 0.24 3,410 Chevron 355,238 0.62 84,000 China Overseas Land & Investment 237,975 0.42 4,503 Church & Dwight 282,503 0.49 6,991 Cisco Systems 298,006 0.52 21,500 CK Asset 134,556 0.24 48,500 CLP 452,177 0.79 2,083 Cochlear 271,464 0.47

235 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED GROWTH FUND (continued)

Fair Value % of Net Nominal Security Description EUR Assets

Equities (continued) 3,833 CTS Eventim 206,695 0.36 22,500 DBS 385,417 0.67 25,466 Deutsche Telekom 401,930 0.70 13,654 Deutsche Wohnen 462,393 0.81 1,701 DiaSorin 170,185 0.30 5,571 Domino's Pizza Enterprises 174,899 0.31 2,979 Eiffage 285,895 0.50 30,801 Enagas 690,404 1.21 2,326 ESCO Technologies 176,197 0.31 13,553 Ferrovial 357,867 0.63 554 Geberit 252,542 0.44 481,148 Greencoat Renewables 583,392 1.02 3,700 Hoya 294,641 0.51 7,366 Intel 373,585 0.65 4,058 James River 130,268 0.23 2,100 JINS 117,876 0.21 6,482 Johnson Controls International 251,949 0.44 2,544 JPMorgan Chase 285,068 0.50 5,185 Kingspan 243,228 0.42 656,300 Land & Houses 188,617 0.33 6,449 Las Vegas Sands 357,793 0.62 1,108 Lockheed Martin 374,398 0.65 42,686 Macquarie Korea Infrastructure Fund 389,136 0.68 1,270 MarketAxess 419,690 0.73 11,978 Mitsui Fudosan 276,385 0.48 3,757 Nemetschek 180,223 0.31 13,934 Nomad Foods 243,898 0.43 5,507 Perficient 193,528 0.34 24,135 Photronics 255,767 0.45 2,800 Shin-Etsu Chemical 282,415 0.49 2,244 SolarEdge Technologies 170,992 0.30 431,325 Supalai 206,921 0.36 12,600 Systena 163,285 0.29 49,795 Taiwan Semiconductor Manufacturing 437,602 0.76 11,400 Takeda Pharmaceutical 371,178 0.65 21,339 Technogym 206,241 0.36 1,055 Teleperformance 214,271 0.37 3,358 Tetra Tech 263,544 0.46 7,327 Tomra Systems 175,062 0.31 245,000 Uni-President China 227,017 0.40 88,100 UOL 453,694 0.79 4,255 Viad 232,901 0.41 6,370 Vinci 639,070 1.12 400,077 Zhejiang Expressway 294,692 0.51 31,390 Zix 185,964 0.32 7,785 Zumiez 222,922 0.39 19,389,345 33.87 Equity - UK Large Cap - 6.78% (2018: 8.47% - EUR 6,161,771) 48,614 Auto Trader 317,465 0.55 10,426 Coca-Cola 283,405 0.50 17,002 GlaxoSmithKline 351,109 0.61 599,042 International Public Partnerships 1,104,365 1.93 236 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED GROWTH FUND (continued)

Fair Value % of Net Nominal Security Description EUR Assets

Equity - UK Large Cap (continued) 268,969 John Laing 1,145,227 2.00 257,161 Syncona 681,541 1.19 3,883,112 6.78 Equity - UK Small Cap - 11.69% (2018: 16.05% - EUR 11,697,405) 238,875 3i Infrastructure 796,208 1.39 307,118 BBGI SICAV 578,326 1.01 236,466 Bluefield Solar Income Fund 371,756 0.65 24,671 Burford Capital 251,357 0.44 177,311 DP Aircraft I 121,664 0.21 247,981 Foresight Solar Fund 339,415 0.59 353,805 GCP Infrastructure Investments 532,170 0.93 853,931 Greencoat UK Wind 1,457,139 2.55 228,533 HICL Infrastructure 457,440 0.80 436,163 NextEnergy Solar 609,658 1.06 770,141 Renewables Infrastructure 1,177,195 2.06 6,692,328 11.69 Coupon Maturity Rate % Date Government Bonds - 10.52% (2018: 12.74% - EUR 9,280,449) 900,000 Brazilian (Government of) 4.625 13/01/2028 861,128 1.50 300,000 Indonesia (Government of) 5.350 11/02/2049 343,026 0.60 17,500,000 Mexican Bonos 7.750 13/11/2042 873,767 1.53 900,000 Mexico (Government of) 4.500 22/04/2029 885,500 1.55 Republic of South Africa Government 300,000 International Bond 5.875 22/06/2030 287,509 0.50 325,000 Turkey (Government of) 7.375 05/02/2025 313,110 0.55 300,000 Turkey (Government of) 7.625 26/04/2029 289,507 0.51 2,100,000 U.S. Treasury Note 2.875 15/05/2049 2,166,996 3.78 6,020,543 10.52 Investment Funds - Bond - 6.13% (2018: 0.00% - EUR Nil) 23,611 iShares Emerging Markets Bond UCITS ETF 2,379,313 4.16 20,606 iShares Emerging Markets Local Government Bond UCITS ETF 1,128,164 1.97 3,507,477 6.13 Investment Funds - Non Bond - 1.00% (2018: 0.70% - EUR 513,259) 408,624 JLEN Environmental Assets 572,352 1.00

Overseas REIT - 5.69% (2018: 8.82% - EUR 6,430,018) 32,165 Granite Point Mortgage Trust 536,468 0.94 16,036 Host Hotels & Resorts 235,671 0.41 191 Japan Hotel REIT Investment 142,130 0.25 29,950 New Residential Investment 425,382 0.74 24,698 Starwood Property Trust 544,845 0.95 86,052 Sydney Airport 467,153 0.82 19,320 TPG RE Finance Trust 350,391 0.61 44,851 Two Harbors Investment 557,771 0.97 3,259,811 5.69 REIT - UK Large Cap - 1.38% (2018: 1.70% - EUR 1,234,380) 15,208 Segro 149,906 0.26 364,843 Tritax Big Box REIT 642,497 1.12 792,403 1.38 REIT - UK Small Cap – 0.00% (2018: 1.08% - EUR 784,727)

237 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED GROWTH FUND (continued)

Maturity Fair Value % of Net Nominal Security Description Date EUR Assets

Futures^ - 0.16% (2018: 0.00% - EUR Nil) 8 CAC 40 Index Future 15/11/2019 4,580 0.01 4 DAX Index Future 20/12/2019 54,450 0.10 30 MSCI Emerging Markets Index 20/12/2019 7,137 0.01 12 S&P 500 Index Future 20/12/2019 22,805 0.04 88,972 0.16 Strike Price Options^^ - 0.02% (2018: 0.05% - EUR 33,796) 2,045 CALL Euro Fx Future 99 16/12/2019 11,464 0.02

Forward Contracts* - 1.14% (2018: 0.50% - EUR 367,347) Unrealised Description Gain Buy BRL 3,720,000, Sell EUR 821,137 04/11/2019 18,406 0.03 Buy CHF 156,923, Sell EUR 142,122 29/11/2019 466 - Buy CHF 49,772, Sell EUR 45,077 29/11/2019 148 - Buy EUR 114,860, Sell NOK 1,150,000 06/11/2019 3,025 0.01 Buy EUR 1,448,393, Sell HKD 12,440,000 06/11/2019 25,111 0.04 Buy EUR 1,709,621, Sell IDR 26,600,000,000 04/11/2019 13,073 0.02 Buy EUR 1,715,231, Sell INR 134,800,000 04/11/2019 11,835 0.02 Buy EUR 1,813,045, Sell USD 2,020,000 06/11/2019 1,994 - Buy EUR 2,042,083, Sell TWD 69,100,000 11/12/2019 1,969 - Buy EUR 22,540,113, Sell USD 24,675,000 06/11/2019 417,509 0.73 Buy EUR 2,565,256, Sell SGD 3,890,000 06/11/2019 2,873 0.01 Buy EUR 2,767,293, Sell JPY 330,000,000 06/11/2019 31,432 0.06 Buy EUR 276,951, Sell THB 9,300,000 06/11/2019 796 - Buy EUR 3,347, Sell GBP 2,881 29/11/2019 1 - Buy EUR 335,046, Sell CAD 486,000 06/11/2019 4,205 0.01 Buy EUR 390,976, Sell KRW 508,800,000 11/12/2019 1,225 - Buy EUR 562,530, Sell SGD 850,000 06/11/2019 2,626 0.01 Buy EUR 638,809, Sell JPY 75,100,000 06/11/2019 16,193 0.03 Buy EUR 843,882, Sell IDR 13,200,000,000 04/11/2019 1,986 - Buy GBP 1,532, Sell EUR 1,776 29/11/2019 3 - Buy GBP 1,930,568, Sell EUR 2,236,915 29/11/2019 4,950 0.01 Buy GBP 2,318, Sell EUR 2,674 29/11/2019 18 - Buy GBP 23,327, Sell EUR 27,035 29/11/2019 54 - Buy GBP 4,350,000, Sell EUR 4,993,680 06/11/2019 61,611 0.11 Buy GBP 60,788, Sell EUR 70,450 29/11/2019 140 - Buy GBP 8,766,141, Sell EUR 10,157,176 29/11/2019 22,478 0.04 Buy MXN 5,750,000, Sell EUR 263,236 06/11/2019 5,758 0.01 649,885 1.14

Financial Assets At Fair Value Through Profit or Loss 52,638,504 91.96

238 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED GROWTH FUND (continued)

Forward Contracts* - (1.52%) (2018: (0.94%) - EUR (685,972)) Maturity Unrealised % of Net Description Date Loss Assets Buy CHF 1,768, Sell EUR 1,607 29/11/2019 - - Buy CHF 572, Sell EUR 520 29/11/2019 - - Buy CHF 956,000, Sell EUR 875,690 06/11/2019 (7,180) (0.01) Buy EUR 1,134,937, Sell CHF 1,250,000 06/11/2019 (668) - Buy EUR 117,674, Sell AUD 192,000 06/11/2019 (1,013) - Buy EUR 130,794, Sell AUD 213,000 06/11/2019 (874) - Buy EUR 169,236, Sell HKD 1,480,000 06/11/2019 (94) - Buy EUR 169,557, Sell THB 5,730,000 06/11/2019 (590) - Buy EUR 169,865, Sell GBP 147,000 06/11/2019 (969) - Buy EUR 1,765, Sell GBP 1,524 29/11/2019 (4) - Buy EUR 17,832,492, Sell GBP 15,902,000 06/11/2019 (647,795) (1.13) Buy EUR 1,792,967, Sell GBP 1,610,000 06/11/2019 (78,072) (0.14) Buy EUR 18,526, Sell GBP 15,980 29/11/2019 (31) - Buy EUR 1,866, Sell GBP 1,606 29/11/2019 - - Buy EUR 2,035,022, Sell TWD 69,100,000 04/11/2019 (580) - Buy EUR 2,252, Sell BRL 10,000 04/11/2019 (5) - Buy EUR 43,284, Sell GBP 37,362 29/11/2019 (102) - Buy EUR 469,080, Sell KRW 618,000,000 04/11/2019 (6,458) (0.01) Buy EUR 665,634, Sell AUD 1,090,000 06/11/2019 (8,163) (0.01) Buy EUR 813,473, Sell BRL 3,710,000 04/11/2019 (23,813) (0.04) Buy GBP 61, Sell EUR 70 29/11/2019 - - Buy IDR 13,100,000,000, Sell EUR 839,044 04/11/2019 (3,526) (0.01) Buy IDR 26,600,000,000, Sell EUR 1,698,704 11/12/2019 (14,658) (0.03) Buy IDR 26,700,000,000, Sell EUR 1,711,478 04/11/2019 (8,552) (0.02) Buy INR 134,800,000, Sell EUR 1,707,670 04/11/2019 (4,274) (0.01) Buy INR 134,800,000, Sell EUR 1,705,897 11/12/2019 (14,474) (0.03) Buy JPY 182,400,000, Sell EUR 1,555,417 06/11/2019 (43,231) (0.08) Buy KRW 618,000,000, Sell EUR 475,875 04/11/2019 (336) - Buy TWD 69,100,000, Sell EUR 2,037,447 04/11/2019 (1,844) - Buy USD 21,140, Sell EUR 19,029 29/11/2019 (103) - Buy USD 895,000, Sell EUR 803,320 06/11/2019 (899) - (868,308) (1.52)

Fair Value USD Financial Liabilities At Fair Value Through Profit or Loss (868,308) (1.52)

Cash and Cash Equivalents 5,327,979 9.315 Other Net Assets 143,726 0.25

Net Asset Value as at 31 October 2019 57,241,901 100.00

^ The counterparty to the futures is UBS (A+) (2018:(A+)). ^^ The counterparty to the options is UBS (A+) (2018:(A+)). * The counterparties to the forwards are BNP Paribas (A+) (2018: (A)), Citibank (A+) (2018: (A+)) and J.P Morgan Securities (A+) (2018: (A-)).

Investments except for derivatives are transferable securities admitted to an official stock exchange or traded on a regulated market.

239 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL DIVERSIFIED GROWTH FUND (continued)

Portfolio Analysis (unaudited) % of Total Assets Transferable securities admitted to official stock exchanges or traded on a regulated market (2018: 73.08%) 87.71 Financial derivative instruments dealt in on a regulated market (2018: 0.00%) 0.17 OTC financial derivative instruments (2018: 0.44%) 1.10 Other current assets (2018: 26.48%) 11.02 100.00

240 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL EQUITY MARKET NEUTRAL FUND

Fair Value % of Net Nominal Security Description GBP Assets

Equities - 37.90% (2018: 46.51% - GBP 52,970,532) 49,717 Afterpay Touch 762,300 0.82 75,481 Amplifon 1,469,501 1.58 261,000 ANTA Sports Products 1,974,544 2.12 53,700 ASAHI 2,079,691 2.23 71,382 Badger Daylighting 1,582,103 1.70 23,220 Bottomline Technologies 733,985 0.79 9,209 Burlington Stores 1,365,592 1.46 16,991 DiaSorin 1,462,459 1.57 13,462 Exact Sciences 904,617 0.97 208,573 Giant Manufacturing 1,193,565 1.28 27,000 Hoya 1,849,708 1.98 24,100 JINS 1,163,779 1.25 61,321 Kornit Digital 1,607,372 1.72 24,270 Nemetschek 1,001,584 1.07 37,000 PeptiDream 1,439,664 1.54 59,359 Perficient 1,794,580 1.92 173,863 Photronics 1,585,085 1.70 496,975 Plug Power 1,014,313 1.09 15,394 Royal Unibrew 974,667 1.04 25,260 SolarEdge Technologies 1,655,900 1.77 41,557 STAAR Surgical 1,051,792 1.13 123,200 Systena 1,373,518 1.47 170,726 Technogym 1,419,545 1.52 244,867 Techtronic Industries 1,482,356 1.59 20,939 Teradyne 989,067 1.06 21,117 Tetra Tech 1,425,778 1.53 35,357,065 37.90 Equity - UK Small Cap - 1.66% (2018: 0.00% - GBP Nil) 935,704 S4 Capital 1,548,590 1.66

Maturity Date Contracts for Difference^^ - 0.57% (2018: 1.28% - GBP 1,454,303) 322,494 Auto Trader 10/12/2050 39,902 0.04 (15,500) Canadian Tire 16/12/2052 7,492 0.01 (17,928) DKSH 16/12/2052 4,904 - (58,010) Fevertree Drinks 13/12/2050 138,104 0.15 (161,188) Rolls-Royce 29/02/2052 17,581 0.02 (116,000) Solutions 30 11/11/2056 26,196 0.03 (53,800) South Jersey Industries 31/12/2052 7,265 0.01 (109,000) Suzano 11/11/2056 3,893 - (95,400) Tokyo Broadcasting System 16/12/2052 14,290 0.02 (9,100) Wayfair 31/12/2100 187,870 0.20 (75,000) Yoshinoya 16/12/2052 81,315 0.09 528,812 0.57 Forward Contracts* - 0.14% (2018: 0.03% - GBP 39,055) Unrealised Description Gain Buy GBP 1,387,676, Sell TWD 54,600,000 29/11/2019 515 - Buy GBP 14,575,689, Sell USD 18,800,000 29/11/2019 81,840 0.09 Buy GBP 1,543,705, Sell CAD 2,600,000 29/11/2019 21,656 0.02

241 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL EQUITY MARKET NEUTRAL FUND (continued)

Forward Contracts* (continued) Maturity Unrealised % of Net Description Date Gain Assets Buy GBP 3,196, Sell EUR 3,687 29/11/2019 21 - Buy GBP 3,273,044, Sell HKD 33,100,000 29/11/2019 16,995 0.02 Buy GBP 4,152, Sell EUR 4,813 29/11/2019 7 - Buy GBP 5,265,014, Sell EUR 6,100,000 29/11/2019 12,040 0.01 Buy GBP 745,483, Sell AUD 1,400,000 29/11/2019 852 - Buy GBP 981,973, Sell DKK 8,500,000 29/11/2019 1,922 - 135,848 0.14

Fair Value GBP Financial Assets At Fair Value Through Profit or Loss 37,570,315 40.27

Contracts for Difference^^ - (0.76%) (2018: (1.63%) - GBP (1,837,004)) Nominal Security Description (188,000) Asustek Computer 22/01/2050 (23,828) (0.03) (19,569) Bayerische Motoren Werke 16/12/2052 (86,701) (0.08) (571,813) BT 27/12/2050 (24,731) (0.03) (33,000) Cal-Maine Foods 31/12/2100 (20,626) (0.02) (20,000) Canadian Imperial Bank of Commerce 31/12/2052 (34,450) (0.04) (31,357) Commonwealth Bank Of Australia 31/12/2050 (8,173) (0.01) (89,332) Dignity 16/12/2051 (39,306) (0.04) (10,600) Hirose Electric 16/12/2052 (15,500) (0.02) (43,200) ISS 16/12/2052 (61,564) (0.07) (25,000) Lawson 16/12/2052 (8,024) (0.01) (18,100) Lindsay 11/11/2056 (70,950) (0.08) (94,200) Nippon Yusen 16/12/2052 (90,037) (0.10) (26,247) Portland General Electric 16/12/2052 (18,978) (0.02) (462,000) Seven Bank 16/12/2052 (67,555) (0.07) (12,204) Siemens 16/12/2052 (78,323) (0.07) 292,878 Synthomer 28/12/2050 (62,969) (0.07) (711,715) (0.76) Futures^ - (0.14%) (2018: (0.00%) - GBP Nil) (19) NASDAQ 100 Future 20/12/2019 (77,736) (0.08) (26) S&P 500 Index Future 20/12/2019 (49,410) (0.06) (127,146) (0.14) Forward Contracts* - (0.11%) (2018: (0.18%) - GBP (201,387)) Unrealised Description Loss Buy EUR 114,906, Sell GBP 99,396 29/11/2019 (445) - Buy EUR 2,697, Sell GBP 2,328 29/11/2019 (5) - Buy EUR 28,945,908, Sell GBP 24,983,965 29/11/2019 (57,393) (0.06) Buy EUR 7,173,175, Sell GBP 6,191,354 29/11/2019 (14,223) (0.02) Buy EUR 84,697, Sell GBP 73,267 29/11/2019 (331) - Buy EUR 85,888, Sell GBP 74,275 29/11/2019 (313) - Buy GBP 38,270, Sell EUR 44,449 29/11/2019 (7) - Buy GBP 7,889,961, Sell JPY 1,106,500,000 29/11/2019 (8,712) (0.01) Buy USD 18,031, Sell GBP 14,008 29/11/2019 (107) - Buy USD 3,741,689, Sell GBP 2,906,837 29/11/2019 (22,184) (0.02) (103,720) (0.11)

242 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – GLOBAL EQUITY MARKET NEUTRAL FUND (continued)

Fair Value % of Net GBP Assets Financial Liabilities At Fair Value Through Profit or Loss (942,581) (1.01)

Cash and Cash Equivalents 55,306,141 59.28 Other Net Assets 1,366,612 1.45

Net Asset Value as at 31 October 2019 93,300,487 100.00

^^ The counterparties to the Contracts for Difference are Goldman Sachs International (A+) (2018: (A+)) and Merrill Lynch International (A+) (2018: (A+)). The counterparty to the futures is UBS (A+) (2018:(A+)). * The counterparties to the forwards are BNP Paribas (A+) (2018: (A)), Citibank (A+) (2018: (A+)) and Citigroup Global Markets (BBB+) (2018: (A+)).

Investments except for derivatives are transferable securities admitted to an official stock exchange or traded on a regulated market.

Portfolio Analysis (unaudited) % of Total Assets Transferable securities admitted to official stock exchanges or traded on a regulated market (2018: 43.84%) 37.62 OTC financial derivative instruments (2018: 1.24%) 0.68 Other current assets (2018: 54.92%) 61.69 100.00

243 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – SHORT DATED HIGH YIELD GLOBAL BOND FUND Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Asset Backed Securities - 1.99% (2018: 1.61% - USD 3,645,879) 400,000 Greene King Finance 2.031 15/09/2021 86,172 0.18 500,000 Intrum 2.750 15/07/2022 282,695 0.57 700,000 OI European 6.750 15/09/2020 412,320 0.83 200,000 Reynolds Group Issuer 5.750 15/10/2020 200,815 0.41 982,002 1.99 Corporate Bonds - 90.07% (2018: 92.65% - USD 208,912,185) 300,000 1011778 BC 4.250 15/05/2024 308,353 0.62 300,000 Aker BP 6.000 01/07/2022 309,560 0.63 300,000 Algeco Global Finance 6.500 15/02/2023 334,581 0.68 600,000 Ally Financial 3.750 18/11/2019 600,553 1.21 700,000 American Airlines 4.625 01/03/2020 703,937 1.42 300,000 Arconic 5.400 15/04/2021 309,357 0.63 600,000 Ardagh Packaging Finance 4.250 15/09/2022 609,750 1.23 500,000 Arqiva Broadcast Finance 6.750 30/09/2023 696,630 1.41 600,000 B&M European Value Retail 4.125 01/02/2022 791,706 1.60 600,000 Banijay 4.000 01/07/2022 685,326 1.39 500,000 Barclays Bank 7.625 21/11/2022 558,898 1.13 300,000 Berry Global 5.125 15/07/2023 307,875 0.62 400,000 Catalent Pharma Solutions 4.750 15/12/2024 460,002 0.93 300,000 CBR Fashion Finance 5.125 01/10/2022 335,884 0.68 700,000 CCO 5.250 30/09/2022 710,500 1.44 200,000 Cirsa Finance International 7.875 20/12/2023 212,124 0.43 200,000 Cogent Communications 4.375 30/06/2024 228,465 0.46 400,000 CPI Property 4.750 08/03/2023 422,046 0.85 600,000 CPUK Finance 4.250 28/08/2022 796,037 1.61 300,000 Crown European 2.250 01/02/2023 350,407 0.71 500,000 DaVita 5.125 15/07/2024 512,069 1.04 300,000 DEMIRE Deutsche Mittelstand Real Estate 1.875 15/10/2024 335,138 0.68 600,000 DKT Finance 7.000 17/06/2023 709,461 1.44 400,000 Drax Finco 4.250 01/05/2022 527,964 1.07 200,000 DS Smith 2.250 16/09/2022 234,974 0.48 400,000 Dufry Finance 4.500 01/08/2023 457,898 0.93 500,000 EC Finance 2.375 15/11/2022 554,028 1.12 400,000 El 7.500 15/03/2024 557,397 1.13 600,000 El Corte Ingles 3.000 15/03/2024 697,396 1.41 500,000 Equinix 5.375 01/01/2022 510,367 1.03 400,000 Erste Group Bank 7.125 10/10/2022 535,482 1.08 300,000 Fiat Chrysler Automobiles 5.250 15/04/2023 320,950 0.65 300,000 Firstgroup 8.750 08/04/2021 425,212 0.86 700,000 Fly Leasing 6.375 15/10/2021 712,688 1.44 300,000 FMG Resources August 2006 4.750 15/05/2022 310,313 0.63 300,000 FMG Resources August 2006 5.125 15/03/2023 313,815 0.64 600,000 Ford Motor Credit 5.596 07/01/2022 632,710 1.28 400,000 Freeport-McMoRan 3.875 15/03/2023 407,256 0.82 300,000 Genesis Energy 6.750 01/08/2022 303,583 0.61 600,000 Global Aircraft Leasing 6.500 15/09/2024 613,974 1.24 300,000 GLP Capital 4.375 15/04/2021 307,936 0.62 200,000 GLP Capital 5.375 01/11/2023 219,141 0.44 300,000 Griffon 5.250 01/03/2022 302,593 0.61 500,000 HCA 7.500 15/02/2022 554,743 1.12 400,000 International Game Technology 6.250 15/02/2022 423,500 0.86

244 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – SHORT DATED HIGH YIELD GLOBAL BOND FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Corporate Bonds (continued) 300,000 Investec Bank 9.625 17/02/2022 450,696 0.91 800,000 Iron Mountain 4.375 01/06/2021 809,320 1.64 300,000 ITV 2.125 21/09/2022 351,000 0.71 200,000 Juneau Investments 5.900 22/02/2021 267,633 0.54 700,000 KB Home 8.000 15/03/2020 715,675 1.45 300,000 Kelda Finance No 3 5.750 17/02/2020 392,161 0.79 800,000 Lennar 4.500 15/11/2019 799,980 1.62 600,000 Leonardo 8.000 16/12/2019 782,766 1.58 500,000 LHC3 4.125 15/08/2024 577,148 1.17 800,000 Live Nation Entertainment 5.375 15/06/2022 811,735 1.64 400,000 LKQ 4.750 15/05/2023 408,230 0.83 100,000 Loxam 3.500 15/04/2022 112,619 0.23 300,000 MARB BondCo 7.000 15/03/2024 313,688 0.63 600,000 McLaren Finance 5.000 01/08/2022 746,603 1.51 200,000 MGM Growth Properties Operating Partnership 5.625 01/05/2024 221,171 0.45 200,000 MGM Resorts International 6.625 15/12/2021 217,125 0.44 200,000 MGM Resorts International 7.750 15/03/2022 224,375 0.45 300,000 MPT Partners 4.000 19/08/2022 365,768 0.74 500,000 Nassa Topco 2.875 06/04/2024 578,909 1.17 400,000 National Westminster Bank 6.500 07/09/2021 565,468 1.14 200,000 Nexi 1.750 31/10/2024 226,775 0.46 300,000 NGPL PipeCo 4.375 15/08/2022 312,489 0.63 700,000 Owens-Brockway Glass Container 5.875 15/08/2023 740,250 1.50 200,000 Park Aerospace 5.250 15/08/2022 212,954 0.43 300,000 Pershing Square 5.500 15/07/2022 315,567 0.64 450,000 Phoenix 4.125 20/07/2022 609,143 1.23 300,000 Pinnacle Bidco 6.375 15/02/2025 415,331 0.84 400,000 Platin 1426 5.375 15/06/2023 422,572 0.86 700,000 Prime Security Services Borrower 9.250 15/05/2023 735,875 1.49 800,000 Quebecor Media 6.625 15/01/2023 662,997 1.34 800,000 SBA Communications 4.000 01/10/2022 817,120 1.65 105,000 Seagate HDD Cayman 4.250 01/03/2022 108,783 0.22 500,000 Sealed Air 6.500 01/12/2020 517,292 1.05 700,000 Service International 5.375 15/05/2024 722,456 1.46 600,000 Sirius XM Radio 3.875 01/08/2022 613,125 1.24 300,000 TalkTalk Telecom 5.375 15/01/2022 397,404 0.80 400,000 Tenneco 4.875 15/04/2022 444,541 0.90 600,000 Teva Pharmaceutical Finance 2.950 18/12/2022 550,214 1.11 400,000 T-Mobile USA 6.000 01/03/2023 408,830 0.83 400,000 Tullow Oil 6.250 15/04/2022 404,480 0.82 400,000 UniCredit 6.950 31/10/2022 527,443 1.07 100,000 UNITE 6.125 12/06/2020 132,545 0.27 500,000 Verisure 3.500 15/05/2023 576,768 1.17 400,000 Virgin Media Secured Finance 6.000 15/01/2025 575,302 1.16 300,000 William Hill 4.250 05/06/2020 397,427 0.80 300,000 Williams Scotsman International 7.875 15/12/2022 314,626 0.64 300,000 Wyndham Destinations 3.900 01/03/2023 303,918 0.62 700,000 XPO Logistics 6.125 01/09/2023 723,625 1.46 400,000 ZF North America Capital 4.500 29/04/2022 410,432 0.83 44,524,933 90.07

245 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – SHORT DATED HIGH YIELD GLOBAL BOND FUND (continued)

Coupon Maturity Fair Value % of Net Nominal Security Description Rate % Date USD Assets

Floating Rate Notes - 2.24% (2018: 1.26% - USD 2,831,006) 400,000 Guala Closures 3.500 15/04/2024 452,425 0.92 500,000 Miller Homes 6.035 15/10/2023 654,759 1.32 1,107,184 2.24 Forward Contracts* - 0.81% (2018: 0.81% - USD 1,816,576) Unrealised Description Gain Buy EUR 1,350,000, Sell USD 1,493,894 13/12/2019 15,857 0.03 Buy EUR 13,742, Sell USD 15,267 29/11/2019 82 - Buy EUR 139,748, Sell USD 155,261 29/11/2019 837 - Buy EUR 300,574, Sell USD 333,939 29/11/2019 1,800 - Buy EUR 345,239, Sell USD 383,562 29/11/2019 2,067 0.01 Buy EUR 50,000, Sell USD 55,485 13/12/2019 432 - Buy EUR 50,000, Sell USD 54,946 13/12/2019 971 - Buy EUR 99,066, Sell USD 110,063 29/11/2019 593 - Buy GBP 10,111, Sell USD 12,987 29/11/2019 127 - Buy GBP 1,969, Sell USD 2,541 29/11/2019 13 - Buy GBP 1,995,205, Sell USD 2,568,302 29/11/2019 19,683 0.04 Buy GBP 2,965,358, Sell USD 3,817,118 29/11/2019 29,253 0.06 Buy GBP 29,747,433, Sell USD 38,291,997 29/11/2019 293,458 0.59 Buy GBP 308,327, Sell USD 396,891 29/11/2019 3,042 0.01 Buy GBP 387, Sell USD 498 29/11/2019 4 - Buy GBP 450,000, Sell USD 552,543 13/12/2019 31,501 0.06 Buy GBP 62,512, Sell USD 80,528 29/11/2019 555 - Buy USD 662,817, Sell CAD 870,000 13/12/2019 2,100 0.01 402,375 0.81

Fair Value USD Financial Assets At Fair Value Through Profit or Loss 47,016,494 95.11

Forward Contracts* - (1.32%) (2018: (0.18%) - USD 398,657) Unrealised Description Loss Buy GBP 1,777, Sell USD 2,305 29/11/2019 - - Buy GBP 309, Sell USD 401 29/11/2019 - - Buy USD 10,170,132, Sell GBP 8,200,000 13/12/2019 (472,459) (0.96) Buy USD 10,744, Sell EUR 9,652 29/11/2019 (37) - Buy USD 12,530,773, Sell EUR 11,300,000 13/12/2019 (106,401) (0.22) Buy USD 24,192, Sell GBP 18,808 29/11/2019 (204) - Buy USD 333,499, Sell EUR 300,000 13/12/2019 (2,001) - Buy USD 43, Sell GBP 34 29/11/2019 - - Buy USD 48, Sell GBP 37 29/11/2019 - - Buy USD 617,768, Sell GBP 500,000 13/12/2019 (31,171) (0.06) Buy USD 740,158, Sell GBP 600,000 13/12/2019 (38,569) (0.08) Buy USD 904, Sell GBP 700 29/11/2019 (5) - Buy USD 92,091, Sell GBP 71,010 29/11/2019 (16) - (650,863) (1.32)

246 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO OF INVESTMENTS – SHORT DATED HIGH YIELD GLOBAL BOND FUND (continued)

Fair Value USD Financial Liabilities At Fair Value Through Profit or Loss (650,863) (1.32)

Cash and Cash Equivalents 2,215,609 4.48 Other Net Assets 854,756 1.73

Net Asset Value as at 31 October 2019 49,435,996 100.00

* The counterparties to the forwards are Barclays Bank (BBB) (2018: (BBB)), Citibank (A+) (2018: (A+)) and Deutsche Bank (BBB+) (2018: (BBB+)).

Investments except for derivatives are transferable securities admitted to an official stock exchange or traded on a regulated market.

Portfolio Analysis (unaudited) % of Total Assets Transferable securities admitted to official stock exchanges or traded on a regulated market (2018: 93.57%) 87,931 OTC financial derivative instruments (2018: 0.79%) 0.76 Other current assets (2018: 5.64%) 11.30 100.00

247 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) The tables below show a breakdown of material purchases and sales of the Portfolios in accordance with Central Bank UCITS Regulations 79(2) requirements. All purchases and sales of investments exceeding 1% of the total value of each purchases and sales respectively, a minimum of 20 of each such purchases and sales, are disclosed. A full analysis of the movement on the Portfolio is available upon request. STRATEGIC GLOBAL BOND FUND

Largest Purchases Maturity Date Quantity Value USD U.S. Treasury Note 2.875% 31/10/2023 37,000,000 37,227,506 United Kingdom Gilt 1.000% 22/04/2024 13,500,000 17,272,169 Australia (Government of) 5.750% 15/07/2022 21,000,000 17,026,992 Italy Buoni Poliennali Del Tesoro 2.700% 01/03/2047 16,500,000 16,410,961 French Republic Government Bond OAT 0.250% 25/07/2024 12,750,000 16,242,948 Canada (Government of) 1.500% 01/09/2024 19,000,000 14,473,667 French Republic Government Bond OAT 1.850% 25/07/2027 8,000,000 12,307,580 Banco Bilbao Vizcaya Argentaria 8.875% 29/12/2049 8,200,000 10,200,127 GE Capital UK Funding Unlimited 5.875% 18/01/2033 6,100,000 9,467,274 Erste Group Bank 6.500% 15/10/2166 7,600,000 9,308,234 UniCredit 6.625% 03/12/2166 8,200,000 9,208,862 United Kingdom Gilt 1.500% 22/07/2047 7,350,000 9,013,839 AerCap 0.678% 21/11/2022 7,900,000 8,942,010 UniCredit 4.875% 20/02/2029 7,500,000 8,924,917 U.S. Treasury Inflation Indexed Bonds 0.250% 15/07/2029 8,000,000 8,189,301 BNP Paribas 3.375% 23/01/2026 6,000,000 7,836,564 UniCredit 6.750% 29/09/2049 6,400,000 7,047,928 Takeda Pharmaceutical 3.000% 21/11/2030 6,100,000 6,867,581 U.S. Treasury Note 2.750% 15/02/2028 6,500,000 6,618,991 Volkswagen International Finance 4.625% 27/06/2167 5,300,000 6,020,755

Largest Sales Maturity Date Quantity Value USD U.S. Treasury Note 2.750% 15/02/2028 62,750,000 65,219,073 U.S. Treasury Inflation Indexed Bonds 0.125% 15/04/2019 42,000,000 44,702,073 Japan Government Two Year Bond 0.100% 15/02/2019 4,500,000,000 40,547,952 U.S. Treasury Note 2.875% 31/10/2023 35,100,000 35,805,938 United Kingdom Gilt 1.500% 22/07/2047 19,900,000 23,366,944 United Kingdom Gilt Inflation Linked 2.500% 16/04/2020 5,000,000 23,360,958 Australia (Government of) 5.750% 15/07/2022 21,000,000 17,194,361 Banco Bilbao Vizcaya Argentaria 8.875% 29/12/2049 13,200,000 16,764,020 French Republic Government Bond OAT 0.250% 25/07/2024 12,750,000 16,543,866 Italy Buoni Poliennali Del Tesoro 2.700% 01/03/2047 16,500,000 16,247,224 U.S. Treasury Inflation Indexed Bonds 0.500% 15/01/2028 16,300,000 16,114,478 United Kingdom Gilt 1.000% 22/04/2024 9,950,000 12,494,595 French Republic Government Bond OAT 1.850% 25/07/2027 8,000,000 12,454,119 GE Capital UK Funding Unlimited 5.875% 18/01/2033 7,000,000 10,826,641 Erste Group Bank 6.500% 15/10/2166 7,600,000 9,612,247 AerCap 0.678% 21/11/2022 7,900,000 9,032,221 UniCredit 4.875% 20/02/2029 7,500,000 8,919,558 Australia (Government of) 1.000% 21/02/2050 11,000,000 8,263,550 BNP Paribas 3.375% 23/01/2026 6,000,000 7,953,910 Banco Santander 6.250% 11/12/2166 6,700,000 7,745,113

248 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

INVESTMENT GRADE GLOBAL BOND FUND

Largest Purchases Maturity Date Quantity Value USD Shell International Finance 3.250% 11/05/2025 4,500,000 4,444,955 Takeda Pharmaceutical 3.000% 21/11/2030 3,400,000 3,827,832 Banco Santander 5.481% 12/03/2049 2,800,000 3,074,049 Royal Bank of Scotland 4.269% 22/03/2025 3,000,000 3,000,000 Coca-Cola European Partners 1.500% 08/11/2027 2,300,000 2,599,314 Banco Bilbao Vizcaya Argentaria 6.750% 29/12/2049 2,000,000 2,370,454 ABN AMRO Bank 5.750% 29/12/2049 2,000,000 2,342,105 Volkswagen International Finance 2.625% 16/11/2027 2,000,000 2,242,038 Banco Bilbao Vizcaya Argentaria 8.875% 29/12/2049 1,800,000 2,236,883 Fresenius Medical Care US Finance Ill 3.750% 15/06/2029 2,200,000 2,166,142 Walmart 2.375% 24/09/2029 2,100,000 2,097,774 Aroundtown 3.250% 18/07/2027 1,600,000 2,083,332 Prologis International Funding II 0.875% 09/07/2029 1,800,000 2,037,561 U.S. Treasury Note 3.375% 15/11/2048 2,000,000 2,009,539 Becton Dickinson 3.734% 15/12/2024 2,000,000 1,947,900 AstraZeneca 3.375% 16/11/2025 2,000,000 1,947,760 InterContinental Hotels 2.125% 15/05/2027 1,700,000 1,933,375 General Electric 0.875% 17/05/2025 1,700,000 1,860,791 Aviva 6.875% 20/05/2058 1,100,000 1,858,990 General Electric 3.375% 11/03/2024 2,000,000 1,849,060 Fidelity National Information Services 3.360% 21/05/2031 1,400,000 1,846,088 ING Groep 2.500% 15/11/2030 1,600,000 1,824,343 BP Capital Markets America 4.234% 06/11/2028 1,800,000 1,800,000 Total Capital International 2.434% 10/01/2025 1,800,000 1,800,000 Fiserv 3.200% 01/07/2026 1,800,000 1,799,874 International Business Machines 4.150% 15/05/2039 1,600,000 1,793,232 Goldman Sachs 1.250% 01/05/2025 1,600,000 1,784,977 ABN AMRO Bank 4.400% 27/03/2028 1,800,000 1,784,556 General Electric 1.250% 26/05/2023 1,600,000 1,778,769 Goldman Sachs 4.250% 29/01/2026 1,200,000 1,737,439 RTE Reseau de Transport d'Electricite 1.125% 09/09/2049 1,600,000 1,734,760 Wells Fargo Bank 5.250% 01/08/2023 1,200,000 1,728,556 Medtronic Global Holdings SCA 1.500% 02/07/2039 1,500,000 1,692,504 BNP Paribas 3.375% 23/01/2026 1,300,000 1,669,775 Verizon Communications 0.875% 19/03/2032 1,500,000 1,656,809 Thermo Fisher Scientific 1.500% 01/10/2039 1,500,000 1,645,311 Bankinter 0.875% 08/07/2026 1,400,000 1,589,760 Ford Motor Credit 4.535% 06/03/2025 1,200,000 1,588,421 Anheuser-Busch 5.450% 23/01/2039 1,200,000 1,516,716 Solvay 4.250% 04/03/2167 1,200,000 1,358,460 Citigroup 4.125% 25/07/2028 1,300,000 1,322,685 CPI Property 2.625% 15/11/2028 1,100,000 1,254,954 Telefonica 1.957% 01/07/2039 1,100,000 1,252,845 Standard Chartered 0.900% 02/07/2027 1,100,000 1,248,782 Westfield Stratford City Finance NO 2 1.642% 04/08/2026 1,000,000 1,241,800 UniCredit 1.250% 25/06/2025 1,100,000 1,226,259

249 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

INVESTMENT GRADE GLOBAL BOND FUND (continued)

Largest Sales Maturity Date Quantity Value USD Banco Bilbao Vizcaya Argentaria 8.875% 29/12/2049 3,600,000 4,608,119 ABN AMRO Bank 4.400% 27/03/2028 4,400,000 4,370,920 Shell International Finance 3.250% 11/05/2025 4,000,000 3,979,316 Hubbell 3.500% 15/02/2028 4,000,000 3,962,629 Becton Dickinson 1.401% 24/05/2023 3,000,000 3,466,461 Abbott Ireland Financing 1.500% 27/09/2026 3,000,000 3,388,988 Royal Bank of Scotland 4.269% 22/03/2025 3,000,000 3,063,131 Royal Bank of Scotland 7.648% 29/08/2049 2,500,000 3,043,212 UBS 5.125% 15/05/2024 3,000,000 3,033,344 PACCAR Financial 2.800% 01/03/2021 3,000,000 2,987,627 Takeda Pharmaceutical 3.000% 21/11/2030 2,500,000 2,942,090 Baker Hughes 3.337% 15/12/2027 3,000,000 2,760,034 Duke Energy 2.650% 01/09/2026 3,000,000 2,733,761 Royal Bank of Scotland 1.750% 02/03/2026 2,400,000 2,601,811 Shire Acquisitions Investments Ireland 3.200% 23/09/2026 2,500,000 2,557,636 Goldman Sachs 3.750% 25/02/2026 2,500,000 2,475,719 Orange 5.000% 29/10/2049 2,000,000 2,473,468 HSBC Capital Funding Dollar 1 10.176% 31/12/2165 1,500,000 2,412,100 Syngenta Finance 5.182% 24/04/2028 2,500,000 2,407,806 JPMorgan Chase 5.406% 30/10/2166 2,385,000 2,396,100 Aroundtown 1.625% 31/01/2028 2,200,000 2,395,577 ABN AMRO Bank 5.750% 29/12/2049 2,000,000 2,392,331 XLIT 3.250% 29/06/2047 2,000,000 2,377,392 EnBW International Finance 1.875% 31/10/2033 2,000,000 2,352,605 Banco Santander 5.481% 12/03/2049 2,100,000 2,352,286 Banco Bilbao Vizcaya Argentaria 6.750% 29/12/2049 2,000,000 2,276,745 Banco Santander 6.250% 11/12/2166 2,000,000 2,265,082 NIKE 2.375% 01/11/2026 2,500,000 2,253,958 Koninklijke Philips 1.375% 02/05/2028 2,000,000 2,240,964 Credit Suisse 7.500% 29/12/2049 2,000,000 2,214,909 Volkswagen International Finance 4.625% 27/06/2167 2,000,000 2,210,294 Cie Generale des Etablissements Michelin 0.875% 03/09/2025 1,900,000 2,149,627

250 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

HIGH YIELD GLOBAL BOND FUND

Largest Purchases Maturity Date Quantity Value USD Connect Finco 6.750% 01/10/2026 2,100,000 2,137,250 Global Aircraft Leasing 6.500% 15/09/2024 2,100,000 2,100,000 Intertrust 3.375% 15/11/2025 1,800,000 2,065,827 Summer BC Holdco A 9.250% 31/10/2027 1,800,000 1,973,108 Banco Bilbao Vizcaya Argentaria 5.875% 24/08/2166 1,600,000 1,852,811 Erste Group Bank 6.500% 15/10/2166 1,400,000 1,825,323 GEMS MENASA Cayman 7.125% 31/07/2026 1,700,000 1,727,297 CPI Property 4.375% 09/05/2166 1,500,000 1,691,125 UniCredit 6.625% 03/12/2166 1,400,000 1,593,576 Trivium Packaging Finance 3.750% 15/08/2026 1,300,000 1,500,584 LHMC Finco 2 7.250% 02/10/2025 1,300,000 1,424,540 AerCap 5.875% 10/10/2079 1,400,000 1,412,500 Barclays 7.125% 15/09/2167 1,100,000 1,410,126 Danske Bank 6.125% 28/03/2024 1,400,000 1,349,250 IHS Netherlands Holdco 8.000% 18/09/2027 1,300,000 1,334,375 Intrum 2.750% 15/07/2022 1,100,000 1,250,302 Commerzbank 7.000% 09/04/2168 1,200,000 1,218,640 DEMIRE Deutsche Mittelstand Real Estate 1.875% 15/10/2024 1,100,000 1,192,109 Bankia 6.375% 19/12/2166 1,000,000 1,184,075 Credit Suisse 7.500% 17/01/2167 1,100,000 1,174,030 Smurfit Kappa Acquisitions ULC 2.875% 15/01/2026 1,000,000 1,158,295 Smurfit Kappa Acquisitions 2.875% 15/01/2026 1,000,000 1,158,294 Eircom Finance 3.500% 15/05/2026 1,000,000 1,122,970 Ithaca Energy North Sea 9.375% 15/07/2024 1,100,000 1,105,000 Berry Global 5.625% 15/07/2027 1,100,000 1,103,500 Teva Pharmaceutical Finance Netherlands II 1.125% 15/10/2024 1,200,000 1,078,600 ARD Securities Finance 8.750% 31/01/2023 1,043,750 1,063,900 EnQuest 7.000% 15/04/2022 1,200,000 1,054,000 Panther BF Aggregator 2 4.375% 15/05/2026 900,000 1,032,299 Dometic Group 3.000% 08/05/2026 900,000 1,015,143 Tenneco 4.875% 15/04/2022 900,000 1,008,181 Verisure Midholding 5.750% 01/12/2023 800,000 942,234 TalkTalk Telecom 5.375% 15/01/2022 700,000 917,917 Greif 6.500% 01/03/2027 800,000 803,750 UBS Group 7.000% 31/07/2167 800,000 800,000 Southern Water Greensands Financing 8.500% 15/04/2019 600,000 792,519 Cogent Communications 4.375% 30/06/2024 700,000 792,184 Infineon Technologies 2.875% 01/04/2168 700,000 762,343 Metro Bank 9.500% 08/10/2025 600,000 741,624 Miller Homes 5.500% 15/10/2024 600,000 741,447 Service International 5.375% 15/05/2024 700,000 717,325 Panther BF Aggregator 2 8.500% 15/05/2027 700,000 715,250 James Hardie International Finance 3.625% 01/10/2026 600,000 679,172 Smurfit Kappa Treasury 1.500% 15/09/2027 600,000 658,050

251 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

HIGH YIELD GLOBAL BOND FUND (continued)

Largest Sales Maturity Date Quantity Value USD Equinix 2.875% 01/10/2025 3,500,000 3,981,812 BlueLine Rental Finance 9.250% 15/03/2024 3,400,000 3,551,693 Park Aerospace 5.250% 15/08/2022 3,200,000 3,398,321 Ashtead Capital 4.125% 15/08/2025 3,300,000 3,306,629 Unitymedia 6.125% 15/01/2025 3,100,000 3,234,862 Drax Finco 4.250% 01/05/2022 2,450,000 3,125,255 Vantiv 3.875% 15/11/2025 2,400,000 3,037,374 International Game Technology 6.250% 15/02/2022 2,800,000 2,908,246 Intrum 2.75% 15/07/2022 2,600,000 2,892,938 MPT Partners 4.000% 19/08/2022 2,300,000 2,862,974 Banco Bilbao Vizcaya Argentaria 8.875% 29/12/2049 2,200,000 2,779,965 Teva Pharmaceutical Finance 2.950% 18/12/2022 3,000,000 2,762,785 Neptune Energy Bondco 6.625% 15/05/2025 2,600,000 2,650,264 UniCredit 9.250% 29/12/2049 1,900,000 2,429,604 El Corte Ingles 3.000% 15/03/2024 1,800,000 2,116,185 Cheniere Energy Partners 5.250% 01/10/2025 2,100,000 2,066,553 Coty 6.500% 15/04/2026 2,200,000 1,982,898 GLP Capital 5.375% 15/04/2026 1,800,000 1,933,017 HCA 7.500% 15/02/2022 1,700,000 1,863,625 First Data 7.000% 01/12/2023 1,700,000 1,759,500 Platin 1426 5.375% 15/06/2023 1,600,000 1,755,855 Algeco Global Finance 6.500% 15/02/2023 1,500,000 1,749,278 Odebrecht Drilling Norbe 6.350% 01/12/2021 2,500,000 1,669,906 CSC 10.125% 15/01/2023 1,500,000 1,618,255 Erste Group Bank 8.875% 29/12/2049 1,200,000 1,580,312 Nassa Topco 2.875% 06/04/2024 1,300,000 1,534,730 Pilgrim's Pride 5.750% 15/03/2025 1,500,000 1,528,309 Wyndham Destinations 3.900% 01/03/2023 1,500,000 1,520,793 MGM Resorts International 6.000% 15/03/2023 1,300,000 1,430,867 Vermilion Energy 5.625% 15/03/2025 1,400,000 1,376,594 McLaren Finance 5.000% 01/08/2022 1,100,000 1,341,452 M&G 5.625% 20/10/2051 1,000,000 1,282,582 Aker BP 5.875% 31/03/2025 1,200,000 1,215,807 Catalent Pharma Solutions 4.750% 15/12/2024 1,000,000 1,194,183 El 7.500% 15/03/2024 900,000 1,181,530 Smurfit Kappa Acquisitions ULC 2.875% 15/01/2026 1,000,000 1,158,294 CBR Fashion Finance 5.125% 01/10/2022 1,200,000 1,141,158 Residomo 3.375% 15/10/2024 1,000,000 1,138,037

252 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

ABSOLUTE RETURN BOND FUND

Largest Purchases Maturity Date Quantity Value GBP Italy Buoni Poliennali Del Tesoro 2.700% 01/03/2047 79,500,000 62,166,768 United States Treasury Inflation Indexed Bonds 0.750% 15/07/2028 72,000,000 53,147,157 United Kingdom Gilt 4.750% 07/03/2020 52,000,000 52,789,880 United Kingdom Gilt 4.500% 07/03/2019 52,000,000 52,543,920 Intesa Sanpaolo 5.250% 28/01/2022 10,650,000 11,486,250 CNP Assurances 7.375% 30/09/2041 10,300,000 11,472,197 HSBC Bank Capital Funding Sterling 2 5.862% 29/04/2049 11,073,000 11,435,310 BNP Paribas 5.750% 24/01/2022 10,258,000 11,313,118 Innogy Finance 6.500% 20/04/2021 10,200,000 11,149,542 National Westminster Bank 6.500% 07/09/2021 10,140,000 11,135,128 SSE 3.875% 29/12/2049 10,000,000 10,025,000 Bank of Scotland 9.375% 15/05/2021 8,410,000 9,656,919 Legal & General 10.000% 23/07/2041 8,200,000 9,454,404 FCA Bank 1.625% 29/09/2021 9,181,000 9,175,838 NGG Finance 4.250% 18/06/2076 10,000,000 9,167,774 Volkswagen International Finance 3.750% 29/03/2049 9,578,000 8,574,288 United Kingdom Gilt 1.500% 22/07/2047 8,100,000 8,254,062 Credit Agricole 8.125% 26/10/2019 7,750,000 8,045,627 Fidelity International 6.750% 19/10/2020 7,248,000 7,780,684 Bank of Scotland Capital Funding 7.754% 29/03/2049 6,913,000 7,584,909 General Electric 1.500% 17/05/2029 8,000,000 7,192,816 GE Capital UK Funding Unlimited 5.875% 04/11/2020 6,650,000 7,086,185 Deutsche Bank 3.875% 12/02/2024 7,000,000 7,057,470

Largest Sales Maturity Date Quantity Value GBP Italy Buoni Poliennali Del Tesoro 2.700% 01/03/2047 79,500,000 59,463,701 United States Treasury Inflation Indexed Bonds 0.750% 15/07/2028 72,000,000 55,949,580 United Kingdom Gilt 1.750% 22/07/2019 53,000,000 53,275,518 United Kingdom Gilt 4.500% 07/03/2019 52,000,000 53,136,013 United Kingdom Gilt 4.750% 07/03/2020 52,000,000 53,088,529 G4S 7.750% 13/05/2019 33,148,000 35,566,123 John Lewis 8.375% 08/04/2019 32,040,000 34,562,918 E.ON International Finance 6.000% 30/10/2019 32,000,000 33,698,024 Firstgroup 6.125% 18/01/2019 33,592,000 33,592,000 Citigroup 5.125% 12/12/2018 33,512,000 33,512,000 United Kingdom Gilt 1.750% 22/07/2057 34,000,000 32,657,826 Prudential 11.375% 29/05/2039 28,692,000 30,233,410 EE Finance 4.375% 28/03/2019 28,943,000 30,162,101 Porterbrook Rail Finance 5.500% 20/04/2019 28,942,000 29,660,343 Coventry Building Society 6.000% 16/10/2019 27,883,000 29,294,832 London Stock Exchange 9.125% 18/10/2019 26,454,000 27,947,188 AerCap 6.461% 29/11/2049 25,850,000 25,850,000 CPUK Finance 2.666% 28/02/2020 24,406,000 24,832,129 FCE Bank 2.759% 13/11/2019 23,334,000 23,863,869 Volkswagen Financial Services 2.625% 22/07/2019 23,122,000 23,283,725 RCI Banque 3.000% 09/05/2019 22,238,000 22,807,679 Yorkshire Building Society 4.125% 20/11/2024 21,856,000 22,517,721 AXA 7.125% 15/12/2020 18,983,000 21,194,727 Enel 6.250% 20/06/2019 18,994,000 20,104,160 GKN 6.750% 28/10/2019 18,553,000 19,582,061 Engie 4.625% 10/01/2049 19,000,000 19,000,000 National Capital Trust I 5.620% 29/09/2049 18,925,000 18,925,000 Koninklijke KPN 6.000% 29/05/2019 17,900,000 18,911,769 Cooperatieve Centrale-Raiffeisen-Boerenleenbank 11.000% 29/12/2049 22,600,000 18,146,042 Tate & Lyle International Finance 6.750% 25/11/2019 16,490,000 17,508,543 Glencore Finance Europe 6.500% 27/02/2019 17,500,000 17,500,000

253 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

GLOBAL EQUITY INCOME FUND

Largest Purchases Quantity Value USD Nestle 174,839 16,916,268 Zurich Insurance 36,633 13,055,580 Ping An Insurance Group Co of China 1,045,500 12,299,247 Takeda Pharmaceutical 270,900 10,460,451 TOTAL 174,422 9,187,514 Darden Restaurants 85,961 9,185,569 Treasury Wine Estates 714,752 7,919,353 Cinnati Financial 90,255 7,303,123 DBS 353,200 6,461,682 Carnival 106,349 6,045,179 Vinci 39,022 3,963,059 Microsoft 27,431 3,626,834 Air Products & Chemicals 14,946 3,289,181 Macquarie 37,582 3,083,181 Allianz 12,018 2,766,679 Lockheed Martin 6,737 2,414,864 Taiwan Semiconductor Manufacturing 57,309 2,285,024 Broadcom 8,194 2,193,316 NextEra Energy 10,515 2,187,755 CME 10,636 2,147,303 Chevron 17,875 2,122,584 Rio Tinto 38,141 2,112,708 JPMorgan Chase 18,709 2,050,048 Cisco Systems 37,789 1,941,318 Eaton 24,662 1,894,876 Secure Income REIT 357,363 1,871,104 AstraZeneca 20,792 1,813,524 Maxim Integrated Products 32,354 1,734,261

254 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued) GLOBAL EQUITY INCOME FUND (continued) Largest Sales Quantity Value USD Unilever 277,379 15,770,095 Hang Seng Bank 368,300 9,035,287 ANTA Sports Products 1,426,000 8,970,700 China Petroleum & Chemical 11,172,000 7,592,691 Swedbank 406,232 7,466,470 ORIX 431,000 6,280,788 Natixis 1,350,711 6,232,946 Global Switch 66,375 6,170,126 Taiwan Semiconductor Manufacturing 157,041 5,942,676 CME 28,057 5,161,412 Chevron 42,232 4,964,349 Carnival 106,349 4,938,800 Boral 1,283,945 4,766,092 Broadcom 18,419 4,738,014 Microsoft 41,115 4,721,648 GlaxoSmithKline 233,937 4,664,534 Lockheed Martin 15,075 4,631,317 JPMorgan Chase 42,480 4,553,476 Bridgestone 115,600 4,416,328 Maxim Integrated Products 80,912 4,358,370 AstraZeneca 55,082 4,166,521 Watsco 25,907 3,876,497 Tokyo Electron 27,700 3,720,471 Pfizer 84,624 3,609,310 Vinci 35,648 3,329,953 Air Products & Chemicals 17,640 3,000,156 Macquarie 36,029 2,987,524 Johnson & Johnson 21,557 2,970,883 NextEra Energy 15,754 2,912,496 Swire Pacific 245,000 2,856,663 Eaton 36,971 2,848,807 Cisco Systems 56,643 2,758,329 DBS 148,600 2,708,259 Clorox 14,093 2,229,495 Rio Tinto 32,951 2,002,559 PTT 1,348,200 2,002,131 ING 166,911 1,997,689 Allianz 8,912 1,956,496

255 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

ABSOLUTE RETURN BOND GLOBAL FUND(2)

Largest Purchases Maturity Date Quantity Value GBP United States Treasury Inflation Indexed Bonds 0.750% 15/07/2028 6,000,000 4,428,930 Italy Buoni Poliennali Del Tesoro 2.700% 01/03/2047 5,000,000 3,933,540 United Kingdom Gilt 4.500% 07/03/2019 3,700,000 3,732,116 United Kingdom Gilt 1.750% 22/07/2019 3,700,000 3,722,533 French Republic Government Bond OAT 0.250% 25/07/2024 3,250,000 3,268,490 U.S. Treasury Inflation Indexed Bonds 0.250% 15/07/2029 2,250,000 1,848,759 Takeda Pharmaceutical 0.375% 21/11/2020 1,700,000 1,503,551 UBS 4.750% 12/02/2026 1,350,000 1,264,745 Tate & Lyle International Finance 6.750% 25/11/2019 1,200,000 1,231,152 BNP Paribas 5.750% 24/01/2022 1,100,000 1,212,862 General Electric 1.500% 17/05/2029 1,500,000 1,170,249 CNP Assurances 7.375% 30/09/2041 1,000,000 1,112,500 General Electric 6.250% 29/09/2020 1,000,000 1,064,970 Deutsche Bank 1.875% 28/02/2020 1,000,000 995,584 Intesa Sanpaolo 5.250% 28/01/2022 900,000 970,971 United Kingdom Gilt 1.500% 22/07/2047 800,000 815,216 Muenchener Rueckversicherungs-Gesellschaft 6.625% 26/05/2042 600,000 683,364 Credit Suisse 5.750% 18/09/2025 700,000 640,887 AXA 7.125% 15/12/2020 583,000 636,222 UniCredit 2.356% 03/05/2025 700,000 633,167 Volkswagen International Finance 3.750% 29/03/2049 700,000 626,208 QBE Insurance 6.115% 24/05/2042 572,000 622,911 Volkswagen International Finance 4.125% 17/11/2031 600,000 596,814 Investec Bank 9.625% 17/02/2022 500,000 589,785 Telefonica 5.597% 12/03/2020 500,000 516,945 Scania 1.875% 28/06/2022 500,000 497,069 Spain Government Bond 2.700% 31/10/2048 400,000 454,583 Firstgroup 8.750% 08/04/2021 400,000 449,275 Phoenix 4.125% 20/07/2022 424,000 442,632

(2) Kames Absolute Return Bond Global Fund closed on 30 October 2019.

256 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

ABSOLUTE RETURN BOND GLOBAL FUND(2) (continued)

Largest Sales Maturity Date Quantity Value GBP United States Treasury Inflation Indexed Bonds 0.750% 15/07/2028 6,000,000 4,662,465 Italy Buoni Poliennali Del Tesoro 2.700% 01/03/2047 5,000,000 3,788,198 United Kingdom Gilt 4.500% 07/03/2019 3,700,000 3,779,488 United Kingdom Gilt 1.750% 22/07/2019 3,700,000 3,717,833 French Republic Government Bond OAT 0.250% 25/07/2024 3,250,000 3,302,053 G4S 7.750% 13/05/2019 2,300,000 2,363,210 Yorkshire Building Society 4.125% 20/11/2024 2,300,000 2,359,763 Engie 4.625% 10/01/2049 2,300,000 2,300,000 HSBC Bank Capital Funding Sterling 2 5.862% 29/04/2049 2,100,000 2,214,095 Firstgroup 6.125% 18/01/2019 2,200,000 2,200,000 United Kingdom Gilt 1.750% 22/07/2057 2,250,000 2,161,179 AXA 7.125% 15/12/2020 1,888,000 2,110,787 EE Finance 4.375% 28/03/2019 2,000,000 2,032,400 Volkswagen Financial Services 2.625% 22/07/2019 2,000,000 2,020,611 Deutsche Bank 1.875% 28/02/2020 2,000,000 2,018,124 U.S. Treasury Inflation Indexed Bonds 0.250% 15/07/2029 2,250,000 1,836,475 Connect Finco 7.875% 08/05/2067 2,400,000 1,827,110 Wales & West Utilities Finance 0.000 17/12/2036 1,773,000 1,773,000 Telefonica 5.597% 12/03/2020 1,600,000 1,696,254 Credit Suisse 5.750% 18/09/2025 1,800,000 1,695,174 Arqiva Financing 4.040% 30/06/2020 1,564,000 1,608,721 Heathrow Funding 6.000% 20/03/2020 1,500,000 1,605,823

(2) Kames Absolute Return Bond Global Fund closed on 30 October 2019.

257 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

ABSOLUTE RETURN BOND CONSTRAINED FUND(3)

Largest Purchases Maturity Date Quantity Value EUR French Republic Government Bond OAT 1.850% 25/07/2027 2,000,000 2,719,547 French Republic Government Bond OAT 0.250% 25/07/2024 2,300,000 2,623,305 United States Treasury Inflation Indexed Bonds 0.750% 15/07/2028 2,600,000 2,198,051 United Kingdom Gilt 1.625% 22/10/2028 1,600,000 1,901,979 GE Capital UK Funding Unlimited 5.875% 04/11/2020 1,100,000 1,356,811 U.S. Treasury Inflation Indexed Bonds 0.250% 15/07/2029 1,400,000 1,291,346 National Westminster Bank 6.500% 07/09/2021 1,000,000 1,278,311 AXA 7.125% 15/12/2020 1,000,000 1,259,896 Italy Buoni Poliennali Del Tesoro 2.700% 01/03/2047 1,200,000 1,044,528 Takeda Pharmaceutical 0.375% 21/11/2020 800,000 799,256 Volkswagen Financial Services 0.750% 14/10/2021 800,000 798,800 BNP Paribas 5.750% 24/01/2022 600,000 757,846 National Express 6.625% 17/06/2020 600,000 723,565 RCI Banque 1.375% 17/11/2020 700,000 714,000 Daimler International Finance 0.250% 09/08/2021 700,000 699,300 United Kingdom Gilt 1.500% 22/07/2047 600,000 686,888 Muenchener Rueckversicherungs-Gesellschaft 6.625% 26/05/2042 500,000 636,851 Medtronic Global Holdings SCA 0.375% 07/03/2023 600,000 605,514 SSE 3.875% 29/12/2049 500,000 569,140 Credit Agricole 7.589% 29/01/2049 450,000 541,467 UBS 4.750% 12/02/2026 500,000 533,585 Morgan Stanley 2.375% 31/03/2021 500,000 522,260 HSBC 1.500% 15/03/2022 500,000 508,205 Santander UK 0.875% 25/11/2020 500,000 504,345 Firstgroup 5.250% 29/11/2022 400,000 485,102 Volkswagen International Finance 3.750% 29/03/2049 400,000 416,000 Phoenix 4.125% 20/07/2022 350,000 409,808 Aviva 6.625% 03/06/2041 338,000 408,278 Spain Government Bond 2.700% 31/10/2048 300,000 379,485 Scania 1.875% 28/06/2022 300,000 341,025

(3) Kames Absolute Return Bond Contrained Fund closed on 30 October 2019.

258 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

ABSOLUTE RETURN BOND CONSTRAINED FUND(3) (continued)

Largest Sales Maturity Date Quantity Value EUR French Republic Government Bond OAT 1.850% 25/07/2027 2,000,000 2,747,192 French Republic Government Bond OAT 0.250% 25/07/2024 2,300,000 2,642,662 United States Treasury Inflation Indexed Bonds 0.750% 15/07/2028 2,600,000 2,263,842 United Kingdom Gilt 1.625% 22/10/2028 1,600,000 1,937,647 BAT International Finance 4.000% 07/07/2020 1,750,000 1,880,463 Carnival 1.125% 06/11/2019 1,830,000 1,849,231 Becton Dickinson 2.133% 06/06/2019 1,800,000 1,594,296 GE Capital UK Funding Unlimited 4.375% 31/07/2019 1,300,000 1,570,259 Rentokil Initial 3.375% 24/09/2019 1,500,000 1,550,719 Philip Morris International 2.125% 30/05/2019 1,500,000 1,532,346 FCA Bank 1.250% 23/09/2020 1,500,000 1,519,463 Wells Fargo 2.125% 22/04/2019 1,700,000 1,475,893 AT&T 5.200% 15/03/2020 1,600,000 1,455,845 Barclays Bank 6.000% 14/01/2021 1,300,000 1,449,661 Marks & Spencer 6.125% 02/12/2019 1,200,000 1,438,748 E.ON International Finance 6.000% 30/10/2019 1,200,000 1,409,222 Bank of Scotland 6.375% 16/08/2019 1,250,000 1,385,069 GE Capital UK Funding Unlimited 5.875% 04/11/2020 1,100,000 1,384,932 FCE Bank 3.250% 19/11/2020 1,100,000 1,315,655 U.S. Treasury Inflation Indexed Bonds 0.250% 15/07/2029 1,400,000 1,300,058 AXA 7.125% 15/12/2020 1,000,000 1,289,024 National Westminster Bank 6.500% 07/09/2021 1,000,000 1,260,141 General Motors Financial 3.700% 24/11/2020 1,300,000 1,206,425 GKN 6.750% 28/10/2019 1,000,000 1,177,760 Kelda Finance No 3 5.750% 17/02/2020 1,000,000 1,164,132 G4S 7.750% 13/05/2019 1,000,000 1,159,107 Porterbrook Rail Finance 5.500% 20/04/2019 1,000,000 1,157,069 Volkswagen Financial Services 2.375% 13/11/2018 1,000,000 1,143,543 Prudential 11.375% 29/05/2039 1,000,000 1,134,285 Imperial Brands Finance 7.750% 24/06/2019 1,000,000 1,121,461 RTE Reseau de Transport d'Electricite 1.500% 27/09/2030 1,000,000 1,116,477 Commerzbank 6.625% 30/08/2019 1,000,000 1,102,788 HeidelbergCement Finance Luxembourg 8.500% 31/10/2019 1,000,000 1,042,584 Italy Buoni Poliennali Del Tesoro 2.700% 01/03/2047 1,200,000 1,036,144 Sky 1.500% 15/09/2021 1,000,000 1,031,450 Holcim US Finance Sarl & Cie 2.625% 07/09/2020 1,000,000 1,028,314 Channel Link Enterprises Finance 1.761% 30/06/2050 1,000,000 1,011,299 Diageo Finance 0.250% 22/10/2021 1,000,000 1,008,173 Australia & New Zealand Banking 5.125% 10/09/2019 1,000,000 1,000,000 Wales & West Utilities Finance 0.000 17/12/2036 878,000 976,078

(3) Kames Absolute Return Bond Contrained Fund closed on 30 October 2019.

259 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

EMERGING MARKET BOND OPPORTUNITIES FUND(1)

Largest Purchases Maturity Date Quantity Value USD Odebrecht Drilling Norbe 7.350% 01/12/2026 435 435

Largest Sales Maturity Date Quantity Value USD Lebanon (Government of) 8.250% 12/04/2021 3,000,000 2,803,643 Brazilian (Government of) 4.625% 13/01/2028 2,200,000 2,175,388 Ukraine (Government of) 7.750% 01/09/2023 2,000,000 1,968,975 Dominican Republic International 6.600% 28/01/2024 1,800,000 1,912,716 Argentine (Government of) 4.625% 11/01/2023 2,100,000 1,783,781 Angolan (Government of) 8.250% 09/05/2028 1,500,000 1,563,419 Brazilian (Government of) 5.000% 27/01/2045 1,700,000 1,541,853 Argentine (Government of) 6.875% 26/01/2027 1,850,000 1,527,091 South Africa (Government of) 4.300% 12/10/2028 1,600,000 1,487,071 Egypt (Government of) 5.577% 21/02/2023 1,400,000 1,388,872 Ecuador (Government of) 7.950% 20/06/2024 1,400,000 1,321,676 Ecuador (Government of) 10.500% 24/03/2020 1,100,000 1,181,996 Odebrecht Drilling Norbe 6.350% 01/12/2021 1,600,000 1,066,691 IHS Netherlands Holdco 9.500% 27/10/2021 1,000,000 1,057,806 Bahrain (Government of) 7.000% 12/10/2028 1,000,000 1,045,694 Sri Lanka (Government of) 5.750% 18/04/2023 1,050,000 1,036,287 DNO 8.750% 18/06/2020 1,000,000 1,033,788 Bahamas (Government of) 6.000% 21/11/2028 1,000,000 1,033,567 Teva Pharmaceutical Finance Netherlands III 6.000% 15/04/2024 1,000,000 1,033,367 MARB BondCo 7.000% 15/03/2024 1,000,000 998,154 Tullow Oil 7.000% 01/03/2025 1,000,000 996,667 Topaz Marine 9.125% 26/07/2022 1,000,000 996,428 Geopark 6.500% 21/09/2024 1,000,000 993,564 MAF Global Securities 5.500% 07/09/2049 1,000,000 983,000 Indo Energy Finance II 6.375% 24/01/2023 1,000,000 981,871 Petkim Petrokimya 5.875% 26/01/2023 1,000,000 944,306 Senegal (Government of) 6.250% 23/05/2033 1,000,000 937,226 South Africa (Government of) 5.375% 24/07/2044 1,000,000 932,492 Kaisa 7.250% 30/06/2020 994,000 928,941 DP World 6.850% 02/07/2037 780,000 921,405 Ardshinbank 12.000% 29/07/2020 900,000 909,563 Sri Lanka (Government of) 6.200% 11/05/2027 950,000 898,267 Costa Rica (Government of) 7.000% 04/04/2044 1,000,000 893,550 Yasar 8.875% 06/05/2020 1,000,000 646,811

(1) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019.

260 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

GLOBAL DIVERSIFIED INCOME FUND

Largest Purchases Maturity Date Quantity Value EUR U.S. Treasury Note 1.125% 31/08/2021 5,600,000 4,850,975 U.S. Treasury Note 2.625% 15/08/2020 5,400,000 4,833,015 Phoenix 593,153 4,488,012 U.S. Treasury Note 1.375% 31/08/2020 4,000,000 3,618,471 Takeda Pharm 55,300 1,891,938 U.S. Treasury Note 2.625% 15/11/2020 2,000,000 1,832,760 Deutsc 48,419 1,830,891 Singapore Telecommu 851,700 1,739,638 Endesa 71,703 1,597,294 Japan Hotel REIT Investment 2,389 1,585,192 Mexican Bonos 8.000% 11/06/2020 35,000,000 1,574,313 HICL Infra 871,951 1,568,067 Darden Re 14,705 1,562,785 U.S. Treasury Note 2.125% 31/12/2022 1,800,000 1,548,139 U.S. Treasury Note 1.125% 28/02/2021 1,800,000 1,527,387 Eiffage 19,500 1,522,706 Mexico (Government of) 4.150% 28/03/2027 1,650,000 1,470,749 Cisc 33,559 1,464,463 Mexican Bonos 6.500% 09/06/2022 30,991,000 1,438,089 Treasury Win 146,825 1,426,157 Ping An Insurance Group Co 140,000 1,421,009 Turkey (Government of) 7.375% 05/02/2025 1,511,000 1,402,786 Nestle 15,905 1,389,870 UOL 259,200 1,294,800 ORIX 96,900 1,285,857

Largest Sales Maturity Date Quantity Value EUR Phoenix 749,445 5,740,450 HICL Infra 1,449,172 2,595,199 U.S. Treasury Note 1.000% 15/10/2019 2,738,100 2,397,507 U.S. Treasury Note 1.625% 31/08/2019 2,706,300 2,376,165 U.S. Treasury Note 1.375% 31/08/2020 2,500,000 2,248,377 Broadcom 8,412 2,131,661 U.S. Treasury Note 2.625% 15/11/2020 2,204,200 1,945,031 HSBC 5.875% 28/03/2167 1,400,000 1,634,475 U.S. Treasury Note 1.125% 28/02/2021 1,800,000 1,589,372 KBC 4.250% 24/10/2166 1,600,000 1,514,868 Aviva 312,017 1,509,537 Taiwan Semiconductor Manufacturing 39,209 1,450,493 Direct Line Insurance 375,062 1,416,369 Greencoat UK Wind 894,643 1,371,760 Transurban 140,264 1,267,494 Japan Hotel REIT Investment 1,821 1,238,534 AbbVie 17,234 1,238,097 Unilever 24,428 1,229,246 Merlin Properties Socimi 104,591 1,211,468 Erste Group Bank 6.500% 15/10/2166 1,000,000 1,169,099

261 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

GLOBAL SUSTAINABLE EQUITY FUND

Largest Purchases Quantity Value EUR Tesla 15,143 3,353,896 Tomra Systems 105,474 2,817,139 DiaSorin 25,803 2,714,612 PeptiDream 57,300 2,628,116 Bottomline Technologies 63,305 2,560,442 Gartner 18,585 2,530,576 RELX 133,520 2,448,128 Green Dot 43,341 2,232,958 Kornit Digital 108,801 2,151,901 STAAR Surgical 83,098 2,086,160 Veracyte 83,586 1,880,715 SolarEdge Technologies 35,332 1,736,715 Simplo Technology 214,000 1,685,715 Albemarle 24,057 1,602,133 Plug Power 774,773 1,478,415 Slack Technologies 66,839 1,459,060 Fidelity National Information Services 26,661 1,456,478 IDP Education 205,106 1,412,897 First Republic Bank 16,238 1,389,586 Amadeus IT 19,884 1,380,120 Illumina 4,701 1,375,804 Wirecard 9,056 1,269,761 Penumbra 9,748 1,258,655 Technogym 124,547 1,241,057 Amplifon 67,565 1,194,316 Alfen Beheer 79,672 1,005,124 Keyence 1,800 958,555 Avery Dennison 9,557 914,815 Shimano 7,100 898,121 BASIC-FIT 30,025 837,913 Kingspan 16,067 727,099 Chroma ATE 151,000 621,356

262 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

GLOBAL SUSTAINABLE EQUITY FUND (continued)

Largest Sales Quantity Value EUR Worldpay 52,470 4,076,745 Medidata Solutions 39,805 3,116,452 Hargreaves Lansdown 111,645 2,449,660 Avery Dennison 25,146 2,390,307 TechnoPro 50,400 2,058,046 Coherent 17,094 1,801,690 ANTA Sports Products 291,000 1,754,527 Green Dot 74,595 1,697,409 MarketAxess 5,364 1,528,306 Wirecard 9,056 1,343,459 MINDBODY 55,317 1,271,773 Bandwidth 18,941 1,220,169 KMC Kuei Meng International 405,800 1,134,423 Aumann 37,046 1,082,750 Teradyne 28,369 1,034,387 Tetra Tech 17,884 948,960 Cochlear 8,222 844,163 Hotel Chocolat 153,654 795,890 Albemarle 11,631 790,852 Everbridge 8,520 720,568 Insulet 6,043 676,361 Universal Display 6,671 676,140 Beyond Meat 5,000 655,529 Badger Daylighting 20,482 642,983 Keyence 1,200 619,913 Illumina 2,184 560,987 Planet Fitness 10,583 548,825 ICON 4,676 533,235 SolarEdge Technologies 6,169 475,266

263 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

GLOBAL DIVERSIFIED GROWTH FUND

Largest Purchases Maturity Date Quantity Value EUR U.S. Treasury Note 2.875% 15/05/2028 3,997,400 3,514,903 U.S. Treasury Note 6.250% 15/05/2030 3,000,000 3,495,247 U.S. Treasury Note 1.875% 31/12/2019 3,200,000 2,834,855 U.S. Treasury Note 1.125% 28/02/2021 3,250,000 2,829,280 U.S. Treasury Note 1.125% 31/08/2021 3,250,000 2,811,066 U.S. Treasury Note 2.625% 15/11/2020 3,100,000 2,771,379 U.S. Treasury Note 2.750% 15/02/2028 3,100,000 2,724,076 U.S. Treasury Note 5.250% 15/02/2029 2,500,000 2,670,201 iShares Emerging Markets Local Government Bond 48,335 2,537,001 iShares Emerging Markets Bond 25,481 2,494,393 U.S. Treasury Note 2.875% 15/05/2049 2,100,000 2,260,065 U.S. Treasury Note 2.250% 15/08/2046 2,600,000 2,025,956 HICL Infrastructure 628,620 1,142,921 Mexico (Government of) 4.500% 22/04/2029 900,000 859,203 Brazilian (Government of) 4.625% 13/01/2028 900,000 850,179 Civitas Socia 641,439 806,672 Banco Bilbao Vizcaya Argentaria 6.750% 29/12/2049 600,000 613,440 Bankia 6.375% 19/12/2166 600,000 600,700 Deutsche Telekom 40,659 599,163 Arbor Realty Trust 55,382 594,179

Largest Sales Maturity Date Quantity Value EUR U.S. Treasury Note 2.625% 15/11/2020 5,500,000 4,947,553 U.S. Treasury Note 2.875% 15/05/2028 3,997,400 3,680,216 U.S. Treasury Note 6.250% 15/05/2030 3,000,000 3,661,700 U.S. Treasury Note 1.125% 31/08/2021 3,250,000 2,928,280 U.S. Treasury Note 1.125% 28/02/2021 3,250,000 2,907,390 U.S. Treasury Note 2.750% 15/02/2019 3,300,000 2,902,690 U.S. Treasury Note 1.250% 30/04/2019 3,300,000 2,868,226 U.S. Treasury Note 1.875% 31/12/2019 3,200,000 2,859,945 U.S. Treasury Note 2.750% 15/02/2028 3,100,000 2,825,009 U.S. Treasury Note 5.250% 15/02/2029 2,500,000 2,766,936 U.S. Treasury Note 2.250% 15/08/2046 2,600,000 2,030,280 HICL Infrastructure 901,103 1,639,665 iShares Emerging Markets Local Government Bond UCITS ETF 27,729 1,526,181 Civitas Social Housing 1,323,408 1,432,630 BOC Aviation 167,700 1,176,849 3i Infrastructure 380,413 1,154,490 Swire Pacific 273,555 1,097,421 BBGI SICAV 601,334 1,074,058 New Residential Investment 60,897 840,240 Insperity 9,109 824,232

264 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued) GLOBAL EQUITY MARKET NEUTRAL FUND Largest Purchases Quantity Value GBP ASAHI 53,700 1,929,281 Shimano 15,400 1,766,452 DiaSorin 16,991 1,565,461 Hoya 33,200 1,565,428 PeptiDream 37,000 1,496,130 Techtronic Industries 244,867 1,451,569 Photronics 173,863 1,371,457 Kornit Digital 61,321 1,317,591 Systena 156,300 1,259,434 S4 Capital 1,007,703 1,245,521 Amplifon 81,109 1,188,137 Giant Manufacturing 208,573 1,179,072 JINS 24,100 1,176,143 SolarEdge Technologies 25,260 1,132,829 STAAR Surgical 48,824 1,022,845 Nemetschek 24,270 1,006,535 Plug Power 496,975 975,032 Insperity 10,100 836,604 Bottomline Technologies 23,220 822,307 Green Dot 13,286 657,791 Perficient 22,129 427,768 ANTA Sports Products 105,000 375,957 Nomad Foods 23,666 359,611 Royal Unibrew 6,058 354,696 CIE Automotive 14,691 288,013

265 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

GLOBAL EQUITY MARKET NEUTRAL FUND (continued)

Largest Sales Quantity Value GBP Insperity 39,281 3,203,844 Nomad Foods 187,541 2,882,306 OMV 64,364 2,632,172 Lamb Weston 44,310 2,471,776 TechnoPro 57,400 2,129,244 ANTA Sports Products 425,000 2,129,178 CIE Automotive 99,419 2,031,757 Everbridge 38,622 1,941,545 Raven Industries 64,584 1,913,843 Teradyne 57,425 1,840,863 Amplifon 125,752 1,810,997 Shimano 15,400 1,757,668 TIS 49,100 1,744,746 Royal Unibrew 29,921 1,728,018 OZ Minerals 319,597 1,648,417 Exact Sciences 23,067 1,607,246 Green Dot 50,723 1,600,516 Ubisoft Entertainment 23,746 1,530,041 Lonking 6,644,000 1,515,529 Bandwidth 45,264 1,510,567 Tetra Tech 26,753 1,427,066 Universal Display 19,325 1,360,669 MINDBODY 61,442 1,280,781 Afterpay Touch 103,510 1,273,469 Badger Daylighting 51,250 1,192,801 BRP 50,000 1,165,065 Burlington Stores 6,788 902,210 Technogym 95,795 843,798 Perficient 28,264 629,622

266 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2018

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

SHORT DATED HIGH YIELD GLOBAL BOND FUND

Largest Purchases Maturity Date Quantity Value USD BAT Capital 2.297% 14/08/2020 2,000,000 1,982,730 Guala Closures 3.500% 15/04/2024 1,700,000 1,936,280 Quebecor Media 6.625% 15/01/2023 2,000,000 1,612,632 Ford Motor Credit 5.596% 07/01/2022 1,600,000 1,606,240 1011778 BC 4.250% 15/05/2024 1,600,000 1,590,480 Southern Water Greensands Financing 8.500% 15/04/2019 1,000,000 1,312,833 Berry Global 5.125% 15/07/2023 1,200,000 1,200,360 Dufry Finance 4.500% 01/08/2023 1,000,000 1,182,391 Nassa Topco 2.875% 06/04/2024 1,000,000 1,165,736 Verisure 3.500% 15/05/2023 1,000,000 1,135,760 Energy Transfer Operating 7.500% 15/10/2020 1,000,000 1,107,021 XPO Logistics 6.125% 01/09/2023 1,100,000 1,105,742 Leonardo 8.000% 16/12/2019 800,000 1,090,582 MGM Growth Properties Operating Partnership 5.625% 01/05/2024 1,000,000 1,035,000 CPI Property 4.750% 08/03/2023 1,000,000 995,510 OI European 6.750% 15/09/2020 700,000 953,309 Freeport-McMoRan 3.875% 15/03/2023 900,000 864,000 Juneau Investments 5.900% 22/02/2021 600,000 818,185 Dometic Group 3.000% 13/09/2023 700,000 810,007 Kelda Finance No 3 5.750% 17/02/2020 600,000 789,723 CPUK Finance 4.250% 28/08/2022 600,000 763,578 Owens-Brockway Glass Container 5.875% 15/08/2023 700,000 736,078 Unitymedia 6.125% 15/01/2025 700,000 731,262 Service International 5.375% 15/05/2024 700,000 721,070 Crown European 2.250% 01/02/2023 600,000 694,002 Thames Water Kemble Finance 7.750% 01/04/2019 500,000 642,824 Ardagh Packaging Finance 7.250% 15/05/2024 600,000 629,424 Global Aircraft Leasing 6.500% 15/09/2024 600,000 602,500 LHC3 4.125% 15/08/2024 500,000 581,162 Intrum 2.750% 15/07/2022 500,000 576,269 Virgin Media Secured Finance 6.000% 15/01/2025 15/01/2025 400,000 541,578 DaVita 5.125% 15/07/2024 15/07/2024 500,000 509,375 Catalent Pharma Solutions 4.750% 15/12/2024 15/12/2024 400,000 468,679 Investec Bank 9.625% 17/02/2022 17/02/2022 300,000 432,074 Firstgroup 8.750% 08/04/2021 08/04/2021 300,000 410,502 Pinnacle Bidco 6.375% 15/02/2025 15/02/2025 300,000 396,235

267 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

PORTFOLIO CHANGES FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2019 (Unaudited) (continued)

SHORT DATED HIGH YIELD GLOBAL BOND FUND (continued)

Largest Sales Maturity Date Quantity Value USD BAT Capital 2.297% 14/08/2020 4,000,000 3,979,719 First Data 5.375% 15/08/2023 2,700,000 2,779,317 First Quality Finance 4.625% 15/05/2021 2,800,000 2,765,554 Taylor Morrison Communities 6.625% 15/05/2022 2,600,000 2,691,837 Park Aerospace 5.250% 15/08/2022 2,500,000 2,608,074 MGM Resorts International 7.750% 15/03/2022 2,300,000 2,583,639 Intrum 2.75% 15/07/2022 2,300,000 2,583,522 New Red Finance 4.625% 15/01/2022 2,500,000 2,539,237 CSC 10.125% 15/01/2023 2,300,000 2,511,288 DEMIRE Deutsche Mittelstand Real Estate 2.875% 15/07/2022 2,200,000 2,499,746 FMG Resources August 2006 4.750% 15/05/2022 2,400,000 2,423,106 Freeport-McMoRan 3.100% 15/03/2020 2,400,000 2,403,625 HCA 7.500% 15/02/2022 2,100,000 2,331,326 Group 1 Automotive 5.000% 01/06/2022 2,400,000 2,319,000 Jaguar Land Rover Automotive 4.125% 15/12/2018 2,300,000 2,300,000 Coty 4.000% 15/04/2023 2,200,000 2,293,714 Prime Security Services Borrower 9.250% 15/05/2023 2,100,000 2,236,900 Miller Homes 6.035% 15/10/2023 1,800,000 2,233,475 International Game Technology 6.250% 15/02/2022 2,088,000 2,212,594 Netflix 5.375% 01/02/2021 2,100,000 2,200,470 Arqiva Broadcast Finance 6.750% 30/09/2023 1,600,000 2,136,833 El 7.500% 15/03/2024 1,600,000 2,135,334 Sable International Finance 6.875% 01/08/2022 2,000,000 2,116,913 Tullow Oil 6.250% 15/04/2022 2,100,000 2,116,880

268 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Global Derivative Exposure (Unaudited)

The following table details the lowest, highest and average utilisation of the VaR limit:

Lowest Highest Average Utilisation (%) Utilisation (%) Utilisation (%)

Strategic Global Bond Fund 0.77% 1.53% 1.23% Investment Grade Global Bond Fund 1.27% 1.98% 1.64% High Yield Global Bond Fund 0.92% 1.52% 1.13% Absolute Return Bond Fund 0.25% 0.42% 0.32% Global Equity Income Fund 4.09% 4.97% 4.57% Absolute Return Bond Global Fund(2) 0.24% 0.43% 0.30% Absolute Return Bond Constrained Fund(2) 0.19% 0.36% 0.26% Emerging Market Bond Opportunities Fund(1) 2.29% 2.40% 2.36% Global Diversified Income Fund 2.34% 2.95% 2.55% Global Sustainable Equity Fund 6.07% 7.54% 6.70% Global Diversified Growth Fund 1.14% 3.37% 2.04% Global Equity Market Neutral Fund 0.95% 2.17% 1.36% Short Dated High Yield Global Bond Fund 0.49% 0.84% 0.66%

Leverage is calculated as the sum of the notionals of the derivatives used. The median level of leverage employed during the financial year was as follows:

Median Level of Leverage Strategic Global Bond Fund 148.08% Investment Grade Global Bond Fund 69.95% High Yield Global Bond Fund 60.65% Absolute Return Bond Fund 122.84% Global Equity Income Fund 0.00% Absolute Return Global Bond Fund(2) 91.04% Absolute Return Constrained Bond Fund(2) 107.70% Emerging Market Bond Opportunities Fund(1) 0.00% Global Diversified Income Fund 106.96% Global Sustainable Equity Fund 0.00% Global Diversified Growth Fund 127.62% Global Equity Market Neutral Fund 87.37% Short Dated High Yield Global Bond Fund 44.93%

(1) Kames Emerging Market Bond Opportunities Fund closed on 13 February 2019. (2) Kames Absolute Return Bond Global Fund and Kames Absolute Return Bond Constrained Fund closed on 30 October 2019.

269 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Total Expense Ratios (Unaudited)

Outlined below are the total expense ratios (TER) for the financial year ended 31 October 2019 on a Fund by Fund basis:

Global Equity Market Neutral Fund may pay to the Investment Manager a performance fee equal to 0.03% of the average net assets of the Fund. None of the other Funds or share classes charge a performance fee.

TER % TER % (before (after performance fee) performance fee) Strategic Global Bond Fund Class A EUR (Income) Hedged 1.50 1.50 Class A GBP (Income) Hedged 1.50 1.50 Class B EUR (Income) Hedged 0.85 0.85 Class B GBP (Income) Hedged 0.85 0.85 Class B US Dollar (Income) Unhedged 0.73 0.73 Class S EUR (Income) Hedged 0.70 0.70 Class S GBP (Income) Hedged 0.70 0.70 Class A CHF (Accumulation) Hedged 1.50 1.50 Class A EUR (Accumulation) Hedged 1.50 1.50 Class A GBP (Accumulation) Hedged 1.50 1.50 Class A US Dollar (Accumulation) 1.38 1.38 Class B EUR (Accumulation) Hedged 0.85 0.85 Class B GBP (Accumulation) Hedged 0.85 0.85 Class B US Dollar (Accumulation) 0.73 0.73 Class I EUR (Accumulation) Hedged 0.95 0.95 Class J JPY (Accumulation) Hedged 0.65 0.65

Investment Grade Global Bond Fund Class A EUR (Income) Hedged 1.35 1.35 Class A GBP (Income) Hedged 1.35 1.35 Class B EUR (Income) Hedged 0.85 0.85 Class B US Dollar (Income) Unhedged 0.73 0.73 Class S EUR (Income) Hedged 0.53 0.53 Class S GBP (Income) Hedged 0.53 0.53 Class S US Dollar (Income) Unhedged 0.42 0.42 Class A EUR (Accumulation) Hedged 1.35 1.35 Class A US Dollar (Accumulation) Unhedged 1.23 1.23 Class B EUR (Accumulation) Hedged 0.84 0.84 Class B GBP (Accumulation) Hedged 0.85 0.85

270 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Total Expense Ratios (Unaudited) (continued)

TER % TER % (before (after performance fee) performance fee) High Yield Global Bond Fund Class A EUR (Income) Hedged 1.59 1.59 Class A GBP (Income) Hedged 1.59 1.59 Class A US Dollar (Income) Unhedged 1.47 1.47 Class B EUR (Income) Hedged 0.93 0.93 Class B GBP (Income) Hedged 0.94 0.94 Class B US Dollar (Income) Unhedged 0.82 0.82 Class S EUR (Income) Hedged 0.79 0.79 Class A CHF (Accumulation) Hedged 1.59 1.59 Class A EUR (Accumulation) Hedged 1.59 1.59 Class A US Dollar (Accumulation) Unhedged 1.47 1.47 Class B CHF (Accumulation) Hedged 0.94 0.94 Class B EUR (Accumulation) Hedged 0.94 0.94 Class B GBP (Accumulation) Hedged 0.94 0.94

Absolute Return Bond Fund Class B GBP (Income) Unhedged 0.57 0.57 Class B GBP (Accumulation) Unhedged 0.48 0.48 Class C CHF (Accumulation) Hedged 0.54 0.54 Class C EUR (Accumulation) Hedged 0.58 0.58 Class C GBP (Accumulation) Unhedged 0.44 0.44 Class C US Dollar (Accumulation) Hedged 0.52 0.52 Class H EUR (Accumulation) Hedged(4) 0.94 0.94

Global Equity Income Fund Class A EUR (Income) Unhedged 1.36 1.36 Class B EUR (Income) Unhedged 0.86 0.86 Class C GBP (Income) Unhedged 0.66 0.66 Class C US Dollar (Income) Unhedged 0.65 0.65 Class S EUR (Income) Unhedged 0.55 0.55 Class B EUR (Accumulation) Hedged 0.86 0.86 Class B GBP (Accumulation) Unhedged 0.86 0.86 Class B US Dollar (Accumulation) Unhedged 0.86 0.86

271 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Total Expense Ratios (Unaudited) (continued)

TER % TER % (before (after performance fee) performance fee)

Global Diversified Income Fund Class A CHF (Income) Hedged(1) 1.28 1.28 Class A EUR (Income) Unhedged 1.19 1.19 Class A GBP (Income) Hedged 1.31 1.31 Class A US Dollar (Income) Hedged 1.31 1.31 Class B CHF (Income) Hedged 0.81 0.81 Class B EUR (Income) Unhedged 0.69 0.69 Class B GBP (Income) Hedged 0.81 0.81 Class B US Dollar (Income) Hedged 0.81 0.81 Class C EUR (Income) Unhedged 0.44 0.44 Class C GBP (Income) Hedged 0.56 0.56 Class C US Dollar (Income) Hedged 0.56 0.56 Class A EUR (Accumulation) Unhedged 1.19 1.19 Class A US Dollar (Accumulation) Unhedged 1.31 1.31 Class B EUR (Accumulation) Unhedged 0.69 0.69 Class C EUR (Accumulation) Unhedged 0.44 0.44 Class C US Dollar (Accumulation) Hedged 0.56 0.56

Global Sustainable Equity Fund Class A EUR (Income) Unhedged(3) 1.38 1.38 Class A EUR (Accumulation) Unhedged(3) 1.38 1.38 Class B EUR (Accumulation) Unhedged 0.91 0.91 Class B GBP (Accumulation) Unhedged 0.90 0.90 Class B US Dollar (Accumulation) Unhedged 0.89 0.89 Class C CHF (Accumulation) Unhedged 0.54 0.54 Class C EUR (Accumulation) Unhedged 0.56 0.56 Class C GBP (Accumulation) Unhedged 0.55 0.55

Global Diversified Growth Fund Class B EUR (Income) Unhedged 0.81 0.81 Class A CHF (Accumulation) Hedged(1) 1.43 1.43 Class A EUR (Accumulation) Unhedged 1.31 1.31 Class B CHF (Accumulation) Hedged(2) 0.92 0.92 Class B EUR (Accumulation) Unhedged 0.81 0.81 Class B GBP (Accumulation) Hedged 0.92 0.92 Class B US Dollar (Accumulation) Hedged 0.92 0.92 Class C GBP (Accumulation) Hedged 0.57 0.57

272 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Total Expense Ratios (Unaudited) (continued) TER % TER % (before (after performance fee) performance fee)

Global Equity Market Neutral Fund Class B EUR (Accumulation) Hedged 1.26 1.26 Class B GBP (Accumulation) Unhedged 1.13 1.13 Class B US Dollar (Accumulation) Hedged 1.23 1.23 Class C EUR (Accumulation) Hedged 0.68 0.68 Class C GBP (Accumulation) Unhedged 0.68 0.68 Class C US Dollar (Accumulation) Hedged 0.68 0.68

Short Dated High Yield Global Bond Fund Class A EUR (Accumulation) Hedged 1.22 1.22 Class A EUR (Income) Hedged 1.22 1.22 Class B EUR (Income) Hedged 0.72 0.72 Class B GBP (Accumulation) Hedged 0.72 0.72 Class B GBP (Income) Hedged 0.72 0.72 Class B US Dollar (Accumulation) Unhedged 0.60 0.60 Class B US Dollar (Income) Unhedged 0.60 0.60 Class C EUR (Accumulation) Hedged 0.35 0.35 Class C EUR (Income) Hedged 0.35 0.35 Class C GBP (Accumulation) Hedged 0.35 0.35 Class C GBP (Income) Hedged 0.35 0.35 Class C US Dollar (Accumulation) Unhedged 0.35 0.35 Class C US Dollar (Income) Unhedged 0.35 0.35

(1) Share Class launched on 19 December 2018. (2) Share Class fully redeemed on 1 December 2017 and re-launched on 19 December 2018. (3) Share Class launched on 2 April 2019. (4) Share Class closed on 15 March 2019 and re-launched on 26 April 2019.

273 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited)

Outlined below are performance figures for the financial year ended 31 October 2019 including benchmark comparatives:

31/10/2018 08/11/2007 15/12/2010 27/04/2011 05/09/2011 12/04/2012 30/12/2013 30/01/2015 To To To To To To To To 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Return Return Return Return Return Kames Strategic Global Bond A Acc CHF Hedged 27/04/2011 5.95 - - 1.71 - - - - Bloomberg Barclays Global Aggregate TR CHF Hedged 6.82 2.96 2.60 2.58 2.21 2.12 2.19 0.84 Kames Strategic Global Bond A Acc EUR Hedged 05/09/2011 6.27 - - - 2.47 - - - Kames Strategic Global Bond A Inc EUR Hedged 08/11/2007 6.46 4.54 ------Kames Strategic Global Bond B Acc EUR Hedged 30/12/2013 7.07 - - - - - 2.03 - Kames Strategic Global Bond B Inc EUR Hedged 08/11/2007 7.15 5.05 ------Kames Strategic Global Bond I Acc EUR Hedged 02/06/2015 7.06 ------Bloomberg Barclays Global Aggregate TR EUR Hedged 7.36 3.68 3.20 3.17 2.75 2.65 2.80 1.46 Kames Strategic Global Bond A Acc GBP Hedged 05/09/2011 7.77 - - - 3.21 - - - Kames Strategic Global Bond A Inc GBP Hedged 15/12/2010 7.80 - 3.27 - - - - - Kames Strategic Global Bond B Acc GBP Hedged 12/04/2012 8.50 - - - - 3.52 - - Kames Strategic Global Bond B Inc GBP Hedged 08/11/2007 8.55 5.60 ------Bloomberg Barclays Global Aggregate TR GBP Hedged 8.77 4.35 3.88 3.88 3.51 3.46 3.73 2.53 Kames Strategic Global Bond J JPY Acc 27/04/2018 7.56 ------Bloomberg Barclays Global Aggregate TR JPY Hedged 7.32 3.14 2.85 3.07 2.64 2.59 2.76 1.51 Kames Strategic Global Bond A Acc USD 05/09/2011 9.90 - - - 3.87 - - - Kames Strategic Global Bond B Inc USD 08/11/2007 10.62 5.91 ------Kames Strategic Global Bond B Acc USD 16/03/2018 10.61 ------Bloomberg Barclays Global Aggregate USD Hedged TR 10.67 4.40 4.23 4.26 3.92 3.93 4.40 3.42

274 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

02/06/2015 19/02/2016 27/04/2018 16/03/2018 To To To To 31/10/2019 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Return Kames Strategic Global Bond A Acc CHF Hedged 27/04/2011 - - - - Bloomberg Barclays Global Aggregate TR CHF Hedged 1.41 1.20 5.48 5.16 Kames Strategic Global Bond A Acc EUR Hedged 05/09/2011 - - - - Kames Strategic Global Bond A Inc EUR Hedged 08/11/2007 - - - - Kames Strategic Global Bond B Acc EUR Hedged 30/12/2013 - - - - Kames Strategic Global Bond B Inc EUR Hedged 08/11/2007 - - - - Kames Strategic Global Bond I Acc EUR Hedged 02/06/2015 1.36 - - - Bloomberg Barclays Global Aggregate TR EUR Hedged 1.99 1.73 6.24 5.97 Kames Strategic Global Bond A Acc GBP Hedged 05/09/2011 - - - - Kames Strategic Global Bond A Inc GBP Hedged 15/12/2010 - - - - Kames Strategic Global Bond B Acc GBP Hedged 12/04/2012 - - - - Kames Strategic Global Bond B Inc GBP Hedged 08/11/2007 - - - - Bloomberg Barclays Global Aggregate TR GBP Hedged 3.08 2.86 8.26 8.11 Kames Strategic Global Bond J JPY Acc 27/04/2018 - - 3.80 - Bloomberg Barclays Global Aggregate TR JPY Hedged 2.05 1.80 6.33 6.08 Kames Strategic Global Bond A Acc USD 05/09/2011 - - - - Kames Strategic Global Bond B Inc USD 08/11/2007 - - - - Kames Strategic Global Bond B Acc USD 16/03/2018 - - - 9.97 Bloomberg Barclays Global Aggregate USD Hedged TR 4.09 4.10 11.10 11.17

275 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 08/11/2007 21/04/2010 17/06/2011 05/12/2012 19/02/2013 22/05/2015 To To To To To To To 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Return Return Return Return Bloomberg Barclays Global Aggregate Corporate TR 11.78 4.04 4.14 3.52 2.87 3.10 4.07 Kames Investment Grade Global Bond A Acc EUR Hedged 19/02/2013 9.46 - - - - 2.90 - Kames Investment Grade Global Bond A Inc EUR Hedged 08/11/2007 9.47 4.42 - - - - - Kames Investment Grade Global Bond B Acc EUR Hedged 05/12/2012 9.99 - - - 3.36 - - Kames Investment Grade Global Bond B Inc EUR Hedged 22/05/2015 9.99 - - - - - 2.81 Bloomberg Barclays Global Aggr Corporate TR EURH 9.67 4.40 4.08 3.88 2.90 3.09 2.77 Kames Investment Grade Global Bond B Acc GBP Hedged 17/06/2011 11.39 - - 4.78 - - - Kames Investment Grade Global Bond A Inc GBP Hedged 08/11/2007 10.82 4.93 - - - - - Bloomberg Barclays Global Aggr Corporate TR GBPH 11.06 5.06 4.72 4.61 3.75 3.95 3.84 Kames Investment Grade Global Bond A Acc USD 19/02/2013 12.97 - - - - 4.50 - Kames Investment Grade Global Bond B Inc USD 21/04/2010 13.54 - 5.28 - - - - Bloomberg Barclays Global Aggr Corporates TR USDH 13.08 5.25 5.11 5.06 4.32 4.55 4.90

276 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

02/06/2015 19/02/2016 24/08/2016 To To To 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Bloomberg Barclays Global Aggregate Corporate TR 24/08/2016 4.18 5.18 3.40 Kames Investment Grade Global Bond A Acc EUR Hedged - - - Kames Investment Grade Global Bond A Inc EUR Hedged 19/02/2013 - - - Kames Investment Grade Global Bond B Acc EUR Hedged 08/11/2007 - - - Kames Investment Grade Global Bond B Inc EUR Hedged 05/12/2012 - - - Bloomberg Barclays Global Aggr Corporate TR EURH 22/05/2015 2.87 3.50 1.77 Kames Investment Grade Global Bond B Acc GBP Hedged 02/06/2015 - - - Kames Investment Grade Global Bond A Inc GBP Hedged - - - Bloomberg Barclays Global Aggr Corporate TR GBPH 17/06/2011 3.95 4.66 2.86 Kames Investment Grade Global Bond A Acc USD 08/11/2007 - - - Kames Investment Grade Global Bond B Inc USD 19/02/2016 - - - Bloomberg Barclays Global Aggr Corporates TR USDH 5.02 5.98 4.36

277 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 08/11/2007 21/04/2010 20/12/2010 28/11/2011 12/12/2011 15/05/2012 To To To To To To To 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Return Return Return Return Kames High Yield Global Bond A Acc CHF Hedged 22/06/2012 6.10 ------Kames High Yield Global Bond B Acc CHF Hedged 07/11/2013 6.78 ------ICE BofAML Global HY Constrained CHF Hedged 5.82 Kames High Yield Global Bond A Acc EUR Hedged 16/05/2012 6.54 ------Kames High Yield Global Bond A Inc EUR Hedged 08/11/2007 6.53 5.74 - - - - - Kames High Yield Global Bond B Acc EUR Hedged 15/05/2012 7.22 - - - - - 5.05 Kames High Yield Global Bond B Inc EUR Hedged 12/12/2011 6.86 - - - - 5.88 - Kames High Yield Global Bond S Inc EUR Hedged 03/07/2018 7.41 ------ICE BofAML Global HY Constrained EUR Hedged 6.19 6.56 6.17 5.36 Kames High Yield Global Bond A Inc GBP Hedged 08/11/2007 7.87 6.34 - - - - - Kames High Yield Global Bond B Acc GBP Hedged 28/11/2011 8.56 - - - 6.95 - - Kames High Yield Global Bond B Inc GBP Hedged 20/12/2010 8.56 - - 6.24 - - - ICE BofAML Global HY Constrained GBP Hedged 7.34 7.17 6.44 7.14 Kames High Yield Global Bond A Acc USD 14/11/2012 9.95 ------Kames High Yield Global Bond A Inc USD 08/11/2007 9.96 6.62 - - - - - Kames High Yield Global Bond B Inc USD 21/04/2010 10.68 - 6.92 - - - - ICE BofAML Global HY Constrained USD Hedged 9.52 7.77 7.24

278 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

16/05/2012 22/06/2012 14/11/2012 07/11/2013 02/06/2015 19/02/2016 03/07/2018 To To To To To To To 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Return Return Return Return Kames High Yield Global Bond A Acc CHF Hedged 22/06/2012 - 4.08 - - - - - Kames High Yield Global Bond B Acc CHF Hedged 07/11/2013 - - - 3.32 - - - ICE BofAML Global HY Constrained CHF Hedged 4.99 3.53 Kames High Yield Global Bond A Acc EUR Hedged 16/05/2012 4.51 ------Kames High Yield Global Bond A Inc EUR Hedged 08/11/2007 ------Kames High Yield Global Bond B Acc EUR Hedged 15/05/2012 ------Kames High Yield Global Bond B Inc EUR Hedged 12/12/2011 ------Kames High Yield Global Bond S Inc EUR Hedged 02/06/2015 ------6.30 ICE BofAML Global HY Constrained EUR Hedged 03/07/2018 5.41 4.71 Kames High Yield Global Bond A Inc GBP Hedged ------Kames High Yield Global Bond B Acc GBP Hedged 08/11/2007 ------Kames High Yield Global Bond B Inc GBP Hedged 28/11/2011 ------ICE BofAML Global HY Constrained GBP Hedged 20/12/2010 Kames High Yield Global Bond A Acc USD - - 5.35 - - - - Kames High Yield Global Bond A Inc USD 19/02/2016 ------Kames High Yield Global Bond B Inc USD ------ICE BofAML Global HY Constrained USD Hedged 14/11/2012 6.26

279 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 30/09/2011 07/02/2012 25/06/2013 29/10/2013 18/11/2013 02/01/2014 30/01/2015 To To To To To To To To 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Return Return Return Return Return Kames Absolute Return Bond C CHF Acc Hedged 02/01/2014 -1.03 ------0.34 - LIBOR CHF 3 Month -0.74 -0.44 -0.46 -0.57 -0.60 -0.61 -0.62 -0.76 Kames Absolute Return Bond C EUR Acc Hedged 25/06/2013 -0.67 - - 0.25 - - - - EURIBOR 3 Month -0.34 0.03 -0.04 -0.14 -0.16 -0.16 -0.17 -0.26 Kames Absolute Return Bond B GBP Acc 30/09/2011 0.80 1.40 ------Kames Absolute Return Bond B GBP Inc 30/01/2015 0.80 ------0.85 Kames Absolute Return Bond C GBP Acc 07/02/2012 0.86 - 1.40 - - - - - LIBOR GBP 3 Month 0.83 0.62 0.60 0.57 0.58 0.58 0.58 0.59 Kames Absolute Return Bond C USD Acc Hedged 29/10/2013 2.53 - - - 1.75 - - - LIBOR USD 3 Month 2.48 0.95 0.97 1.11 1.16 1.16 1.18 1.40

280 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 28/09/2012 19/02/2013 30/09/2013 07/10/2013 09/11/2015 19/02/2016 03/07/2018 To To To To To To To To 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Return Return Return Return Return Kames Global Equity Income A Inc EUR 07/10/2013 19.11 - - - 10.05 - - - Kames Global Equity Income B Acc EUR Hedged 28/09/2012 15.08 8.91 ------Kames Global Equity Income B Inc EUR 07/10/2013 19.70 - - - 10.60 - - - Kames Global Equity Income S Inc EUR 03/07/2018 20.08 ------17.90 MSCI AC World TR EUR 14.99 11.94 11.90 11.86 11.98 8.76 13.23 14.70 Kames Global Equity Income B Acc GBP 07/10/2013 15.96 - - - 10.94 - - - Kames Global Equity Income C Inc GBP 30/09/2013 16.19 - - 11.14 - - - - MSCI AC World TR GBP 11.80 13.19 11.84 12.43 12.38 14.15 16.40 11.84 Kames Global Equity Income B Acc USD 28/09/2012 17.64 8.39 ------Kames Global Equity Income C Inc USD 28/09/2012 17.89 8.60 ------MSCI AC World TR USD 13.22 9.71 8.93 8.36 8.42 9.79 13.37 9.84

281 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 29/04/2015 19/02/2016 To To To 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Kames Absolute Return Bond Global C Acc CHF (Hgd) 29/04/2015 -1.59 -0.76 -0.42 LIBOR CHF 3 Month -0.74 -0.75 -0.75 Kames Absolute Return Bond Global C Acc EUR (Hgd) 29/04/2015 -4.18 -0.93 0.79 EURIBOR 3 Month -0.34 -0.28 -0.32 Kames Absolute Return Bond Global B Acc GBP 29/04/2015 0.17 0.66 1.03 Kames Absolute Return Bond Global B Inc GBP 29/04/2015 0.16 0.67 1.03 Kames Absolute Return Bond Global C Acc GBP 29/04/2015 0.33 0.90 1.26 Kames Absolute Return Bond Global C Inc GBP 29/04/2015 0.26 0.88 1.24 LIBOR GBP 3 Month 0.83 0.59 0.59 Kames Absolute Return Bond Global B Acc SEK (Hgd) 19/02/2016 -1.07 n/a -0.21 LIBOR USD 3 Month 2.48 1.46 1.70 Kames Absolute Return Bond Global C Acc USD (Hgd) 29/04/2015 2.02 1.76 2.37 LIBOR USD 3 Month 2.48 1.46 1.70

282 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 29/04/2015 To To 31/10/2019 31/10/2019 Launch Name Date Return Return Kames Absolute Return Bond Cons C Acc CHF (Hgd) 29/04/2015 -1.16 -0.82 LIBOR CHF 1 Month -0.80 -0.81 Kames Absolute Return Bond Cons C Acc EUR 29/04/2015 -0.54 -0.13 EURIBOR 1 Month -0.39 -0.33 LIBOR GBP 1 Month 0.72 0.50 LIBOR USD 1 Month 2.35 1.27 LIBOR USD 1 Month 2.35 1.27

283 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 29/10/2015 To To 31/10/2019 31/10/2019 Launch Name Date Return Return Kames Emerging Market Bond Opportunities USD C Acc 29/10/2015 3.06 3.77 BMK_Kames Emerging Market Bond USD C Acc* 5.28 4.57 Kames Emerging Market Bond Opportunities EUR C Acc Hedged 29/10/2015 2.06 1.54 Kames Emerging Market Bond Opportunities GBP C Acc Hedged 29/10/2015 2.43 2.55

* JPMorgan EMBI Global Diversified - INVESTMENT GRADE Total Return until 30 Nov 2017, JPMorgan 50% EMBI Global Diversified High Yield / 50% CEMBI Broad Diversified High Yield Total Return thereafter.

284 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 21/04/2016 29/07/2016 02/05/2018 To To To To 31/10/2019 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Return Kames Global Diversified Income B Inc CHF hdg 21/04/2016 11.77 6.28 - -

Kames Global Diversified Income B Acc EUR 21/04/2016 12.40 6.93 - - Kames Global Diversified Income B Inc EUR 21/04/2016 12.40 6.92 - - Kames Global Diversified Income C Acc EUR 21/04/2016 12.68 7.20 - - Kames Global Diversified Income C Inc EUR 21/04/2016 12.67 7.11 - - Kames Global Diversified Income A Acc EUR 29/07/2016 11.84 - 5.81 - Kames Global Diversified Income A Inc EUR 29/07/2016 11.83 - 5.80 -

Kames Global Diversified Income B Inc GBP hdg 21/04/2016 13.49 7.75 - - Kames Global Diversified Income C Inc GBP hdg 21/04/2016 13.73 7.99 - -

Kames Global Diversified Income B Inc USD hdg 21/04/2016 15.62 9.25 - - Kames Global Diversified Income C Inc USD hdg 21/04/2016 15.92 9.45 - - Kames Global Diversified Income C Acc USD Hdg 02/05/2018 15.91 - - 14.52

285 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 21/04/2016 To To 31/10/2019 31/10/2019 Launch Name Date Return Return Kames Global Sustainable Equity C Acc CHF 21/04/2016 21.00 12.66 MSCI AC World TR CHF 11.07 11.18 Kames Global Sustainable Equity B Acc EUR 21/04/2016 24.90 12.29 Kames Global Sustainable Equity C Acc EUR 21/04/2016 25.34 12.60 MSCI AC World TR EUR 14.99 11.10 Kames Global Sustainable Equity B Acc GBP 21/04/2016 20.98 15.16 Kames Global Sustainable Equity C Acc GBP 21/04/2016 21.41 15.49 MSCI AC World TR GBP 11.80 13.99 Kames Global Sustainable Equity B Acc USD 21/04/2016 22.75 11.85 MSCI AC World TR USD 13.22 10.72

286 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 08/06/2016 To To 31/10/2019 31/10/2019 Launch Name Date Return Return Kames Global Diversified Growth B Acc EUR 08/06/2016 4.30 3.64 Kames Global Diversified Growth B Inc EUR 08/06/2016 4.29 3.43

Kames Global Diversified Growth B Acc GBP hgd 08/06/2016 5.35 4.50 Kames Global Diversified Growth C Acc GBP hgd 08/06/2016 5.71 4.81

Kames Global Diversified Growth B Acc USD hgd 08/06/2016 7.35 6.00

287 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 21/06/2016 To To 31/10/2019 31/10/2019 Launch Name Date Return Return Kames Global Equity Market Neutral B Acc EUR hgd 21/06/2016 -0.11 -1.51 Kames Global Equity Market Neutral C Acc EUR hgd 21/06/2016 0.52 -1.07 EURIBOR 1 Month -0.39 -0.38 Kames Global Equity Market Neutral B Acc GBP 21/06/2016 1.38 -0.34 Kames Global Equity Market Neutral C Acc GBP 21/06/2016 1.76 -0.02 LIBOR GBP 1 Month 0.73 0.50 Kames Global Equity Market Neutral B Acc USD hgd 21/06/2016 3.05 0.91 Kames Global Equity Market Neutral C Acc USD hgd 21/06/2016 3.56 1.31 LIBOR USD 1 Month 2.35 1.61

288 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Performance Figures (Unaudited) (continued)

31/10/2018 14/06/2017 20/07/2018 To To To 31/10/2019 31/10/2019 31/10/2019 Launch Name Date Return Return Return Kames Short Dated High Yield Glbl Bd B Inc EUR Hgd 14/06/2017 3.04 1.04 - Kames Short Dated High Yield Glbl Bd C Acc EUR Hgd 14/06/2017 3.50 1.45 - Kames Short Dated High Yield Glbl Bd C Inc EUR Hgd 14/06/2017 3.51 1.45 - Kames Short Dated High Yield Global Bond A Acc EUR Hdg 20/07/2018 2.68 - 2.33 Kames Short Dated High Yield Global Bond A Inc EUR Hdg 20/07/2018 2.58 - 2.29 Barclays Global High Yield Corporate 1-5 Year Ba/B TR EUR 4.75 2.05 3.33 Kames Short Dated High Yield Glbl Bd B Acc GBP Hgd 14/06/2017 4.44 2.22 - Kames Short Dated High Yield Glbl Bd B Inc GBP Hgd 14/06/2017 4.29 2.14 - Kames Short Dated High Yield Glbl Bd C Acc GBP Hgd 14/06/2017 4.73 2.52 - Kames Short Dated High Yield Glbl Bd C Inc GBP Hgd 14/06/2017 4.80 2.56 - Barclays Global High Yield Corporate 1-5 Year Ba/B TR GBP 5.95 3.12 4.53 Kames Short Dated High Yield Glbl Bd B Acc USD 14/06/2017 6.47 3.95 - Kames Short Dated High Yield Glbl Bd B Inc USD 14/06/2017 6.47 3.94 - Kames Short Dated High Yield Glbl Bd C Acc USD 14/06/2017 6.74 4.21 - Kames Short Dated High Yield Glbl Bd C Inc USD 14/06/2017 6.74 4.21 - Barclays Global High Yield Corporate 1-5 Year Ba/B TR USD 8.05 4.90 6.54

Past performance does not guarantee future returns. The rates of return will vary and the principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. The performance data does not take account of the commissions and costs incurred on the issue and redemption of Shares. All returns are calculated in the base currency of the relevant share class.

289 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Securities Financial Transactions Regulations

The following disclosure follows the requirements of EU Securities Financing Transactions Regulation (“SFTR”) which came into effect on 13 January 2017.

A Securities Financing Transaction (“SFT”) is defined as per Article 3(11) of the SFTR as:  A repurchase transaction;  Securities or commodities lending and securities or commodities borrowing;  A buy-sell back transaction or sell-buy back transaction; or  A margin lending transaction.

None of the Funds were engaged in securities lending transactions during the financial year ended 31 October 2019. In addition, no SFTs that meet above definition were held by any of the Funds as at 31 October 2019.

There were no securities and commodities on loan as a proportion of total lendable assets (excluding cash and cash equivalents) as at 31 October 2019.

290 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Remuneration Policy

Kames Capital VCIC is managed by Kames Capital Plc.

The Remuneration Committee of Kames Capital Plc has established a UCITS Remuneration Policy to ensure that the requirements of the UCITS Remuneration Code are met proportionately for all UCITS Remuneration Code Staff. This policy applies to Kames Capital Plc and the UCITS it manages.

Further information with respect to Kames Capital Plc remuneration policy is available in Kames Capital Plc’s regulatory Pillar III disclosure (which is available on the responsible investing part of the Kames Capital website).

Employee Remuneration Disclosure

The table below provides an overview of the following:

 Aggregate total remuneration paid by Kames Capital Plc to all Kames Capital Plc staff; and

 Aggregate total remuneration paid by Kames Capital Plc to Remuneration Code Staff

Headcount Total Remuneration (£’000s) Kames Capital Plc Staff 289 35,597 of which Fixed remuneration 289 22,158 Variable remuneration 289 13,439

Due to the nature of the business in which Kames Capital Plc operates, it is not possible to accurately allocate the time spent by each employee on each UCITS. As such it has been deemed appropriate to disclose total remuneration information for Kames Capital Plc.

Headcount Total Remuneration (£’000s) Kames Capital Plc Remuneration Code Staff 8 5,375

UCITS activities

The following table provides an overview of the size and composition of the funds managed by Kames Capital Plc, including Kames Capital VCIC. This shows the total number of funds managed, the split between, and proportions of AIFs, UCITS and other funds including segregated mandates:

Number of AUM % of AUM Funds (£‘000s) Kames Capital Plc 32 38,000,674 100.00 of which Alternative Investment Funds 5 3,680,935 9.68 Kames Capital VCIC (UCITS) 12 2,005,550 5.28 Money managed on behalf of other clients - 27,230,511 71.66 Other UCITS Funds 15 5,083,678 13.38

*Please note that the AUM figures are as at the 30.09.2019

291 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Remuneration Policy (continued)

Glossary

UCITS Remuneration Code Staff Total remuneration will be reported for all UCITS Remuneration Code Staff as at the financial year-end. Broadly speaking, UCITS Remuneration Code Staff are those employees who are considered could have a material impact on the risk profile of Kames Capital Plc or any of the UCITS it manages (including Kames Capital VCIC).

AuM Assets under management are measured at fair market value on the relevant cut-off date. The latest available valuations are reported in the Annual Report & Accounts.

Other Code Staff UCITS Remuneration Code Staff that are not considered Senior Management, per the definition below.

Senior Management UCITS Remuneration Code Staff who are members of Kames Capital Plc board.

Total Remuneration Total remuneration reported will be the sum of salary, cash bonus, any deferred annual bonus, the fair value of any long term incentive awards, plus the value (actual or estimated) of any pension or benefits in kind, awarded in respect of performance in the reportable financial year, i.e. 1 January 2018 – 31 December 2018.

292 Kames Capital Investment Company (Ireland) Plc Annual Report and Audited Financial Statements for the financial year ended 31 October 2019

Supplementary Information (Unaudited)

Cybersecurity Risk

Cybersecurity breaches may occur allowing an unauthorized party to gain access to assets of the Funds, Shareholder data, or proprietary information, or may cause the Platform, the Investment Manager, the Distributor, the Administrator or the Depositary to suffer data corruption or lose operational functionality.

The Funds may be affected by intentional cybersecurity breaches which include unauthorized access to systems, networks, or devices (such as through “hacking” activity); infection from computer viruses or other malicious software code; and attacks that shut down, disable, slow, or otherwise disrupt operations, business processes, or website access or functionality. In addition, unintentional incidents can occur, such as the inadvertent release of confidential information (possibly resulting in the violation of applicable privacy laws).

A cybersecurity breach could result in the loss or theft of Shareholder data or funds, the inability to access electronic systems, loss or theft of proprietary information or corporate data, physical damage to a computer or network system, or costs associated with system repairs.

Such incidents could cause the Company, the Investment Manager, the Distributor, the Administrator, the Depositary, or other service providers to incur regulatory penalties, reputational damage, additional compliance costs, or financial loss. Consequently, Shareholders may lose some or all of their invested capital. In addition, such incidents could affect issuers in which the Funds invests, and thereby cause a Fund’s investments to lose value, as a result of which investors, including the relevant Funds and its Shareholders, could potentially lose all or a portion of their investment with that issuer.

CRS Data Protection Information Notice

The Funds hereby provides the following data protection information notice to all shareholders in the Funds either as at 31 December 2015 or at any point of time since this date.

For the avoidance of doubt, this notice applies equally to any shareholders that have ceased to hold shares in the Funds since January 1, 2016. Furthermore, it should be noted that this notice may be applicable to Controlling Persons of certain shareholders.

The Funds hereby confirm that they intend to take such steps as may be required to satisfy any obligations imposed by (i) the OECD’s Standard for Automatic Exchange of Financial Account Information in Tax Matters (“the Standard”), which therein contains the Common Reporting Standard (“CRS”), as applied in Ireland by means of the relevant international legal framework and Irish tax legislation and (ii) EU Council Directive 2014/107/EU, amending Directive 2011/16/EU as regards mandatory automatic exchange information in the field of taxation (“DAC2”), as applied in Ireland by means of the relevant Irish tax legislation, so as to ensure compliance or deemed compliance (as the case may be) with the Standard/CRS and the DAC2 from 1 January 2016.

In this regard, the Manager on behalf of the Funds is obliged under Section 891F and Section 891G of the Irish Taxes Consolidation Act, 1997 (as amended) and regulations made pursuant to those sections to collect certain information about each shareholder’s tax arrangements (and also collect information in relation to relevant Controlling Persons of specific shareholders).

In certain circumstances, the Manager on behalf of the Funds may be legally obliged to share this information and other financial information with respect to a shareholder’s interests in the Funds with the Irish Revenue Commissioners (and, in particular situations, also share information in relation to relevant Controlling Persons of specific shareholders). In turn, and to the extent the account has been identified as a Reportable Account, the Irish Revenue Commissioners will exchange this information with the country of residence of the Reportable Person(s) in respect of that Reportable Account.

In particular, information that may be reported in respect of a shareholders (and relevant Controlling Persons, if applicable) includes name, address, date of birth, place of birth, account number, account balance or value at year end (or, if the account was closed during such year, the balance or value at the date of closure of the account), any payments (including redemption and dividend/interest payments) made with respect to the account during the calendar year, tax residency(ies) and tax identification number(s).

293 Kames Capital Investment Company (Ireland) Plc, is an umbrella type open-ended investment company with variable capital registered in the Republic of Ireland (Company Number 442106), registered office at 25-28 North Wall Quay, International Financial Services Centre, Dublin 1. Board of Directors: Andrew Bell (UK), Mike Kirby (Ireland) and Bronwyn Wright (Ireland). Kames Capital Investment Company (Ireland) Plc is regulated by the Central Bank of Ireland.

Kames Capital plc (Company No. SC113505) and Kames Capital Management Limited (Company No. SC212159) are registered in Scotland at Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA. Kames Capital plc is authorised and regulated by the Financial Conduct Authority. Kames Capital Management Limited is an appointed representative of Scottish Equitable plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.