138.62 137.04 128.85 136.83 128.63 135.76 WAVERTON UK FUND126.99 A GBP FUND FACTSHEET - AS AT 31 MARCH 2019 134.84 118.97126.97 134.54 134.70 118.58 125.82 112.90 109.51 106.54 133.90 OBJECTIVES 108.10 106.42 117.24125.32 132.04133.57 104.17 111.73 116.93 124.75130.61 103.04 110.57 104.39 133.42 FUND AIM 104.39 104.20115.21 123.94128.20130.53 INVESTMENT132.10 STYLE 102.51 107.68 114.91123.75 125.74129.05 The investment102.26107.61 objective of the Fund103.81 is to achieve long term capital The132.09 Fund has a stock driven approach focused on identifying and investing growth and income through106.38 diversified103.48 investment103.54114.58 in UK 123.17equities. 128.27 in leading128.60 UK companies. Through rigorous bottom up stock analysis, the 102.23 107.53 114.34 121.97 128.04 130.33 103.65102.02 106.59109.16 103.51 103.20 Fund 126.22will seek to achieve higher growth and returns by selecting 114.09 121.74 126.50 attractively valued UK companies with both global and domestic exposure. 103.22 101.33105.74108.84 102.92 103.10 124.77 113.82121.63 118.69 The Fund will not concentrate investments in any one industrial or 101.08 105.54108.09102.46 102.48 122.93133.08 113.29 118.59 118.60economic sector or companies of a particular market capitalisation. 100.75 104.59107.93 102.42 127.65 121.36126.54 PERFORMANCE107.05 102.16 112.73 117.43 117.60125.24118.18 123.30129.44 100.54 104.38 112.68122.32116.85 117.26 PERFORMANCE100.39103.81 SINCE106.54 INCEPTION101.43 102.14110.55 125.04117.42 117.80128.60 102.44 106.41102.09 101.23109.87112.53 120.08 116.27 122.38115.05 125.72 102.24 100.21101.97 112.36115.81 140.00140 99.96101.29 105.55 101.19 109.32 115.19 116.07114.12 110.78 Risk Warning: Past performance is no guide to 100.94 112.02 113.01 future performance. The value of holdings may 99.68 101.21 104.09 100.19 114.57 106.43 130.00100.91130 112.02 fall as well as rise and investors may not get 99.27 103.2998.97 99.29 113.06 105.75 back their initial investment. 100.00 101.38 98.94 111.12 108.78 103.27 120.00100.00120 98.27 97.51 100.64 98.46 103.10 Important information: Performance displayed 100.00 is for the A Share Class. Performance is 110 96.93 97.79 97.90 110.00 calculated on a NAV to NAV basis and does not take into account any initial fees. 100.00100 Performance is displayed net of fees and 90.0090 assumes income is reinvested. Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Fund Benchmark Average peer group

Period 1 Month 3 Months YTD 1 Year 3 Years 5 Years Inception Mar 07 Portfolio (%) 4.8 13.2 13.2 1.8 6.1 10.8 62.2 Benchmark (%) 2.8 9.7 9.7 6.3 31.5 33.1 81.9 Morningstar Peer Group (%) 2.2 9.1 9.1 4.7 25.1 28.5 82.6 Quartile 1 1 1 4 4 4 4 DISCRETE CALENDAR YEAR PERFORMANCE Period 2018 2017 2016 2015 2014 Fund (%) -17.5 3.3 6.3 6.0 0.9 Benchmark (%) -9.8 13.1 16.8 1.0 1.2 STANDARDISED PERFORMANCE Period 1 year to 31/03/2019 31/03/2018 31/03/2017 31/03/2016 31/03/2015 Fund (%) 1.8 -6.1 10.9 -1.1 5.5 PORTFOLIO SUMMARY TOP 10 HOLDINGS MARKET CAP Plc 'B' ?0.07 (UK list) 8.1% BP p.l.c. 6.9% MSCI Large Cap - 88.0% plc 5.6% p.l.c. 5.6% MSCI Mid Cap - 8.2% AstraZeneca PLC 4.7% GlaxoSmithKline 4.4% Lloyds Banking 3.6% Cash - 3.8% Plc Ord 6.85714p 3.6% Stock Exchange Ord 6.918604p 3.4% plc 3.4% MSCI Small Cap - 0.0% Total 49.2% 0% 15% 30% 45% 60% 75% 90% Fund Benchmark Sources: Waverton Investment Management, Morningstar. PORTFOLIO SUMMARY - CONTINUED

SECTOR

Consumer Staples - 18.8% Energy - 15.0% Industrials - 14.9% Financials - 11.9% Health Care - 10.4% Materials - 9.7% Consumer Discretionary - 8.9% Communication Services - 4.4% Information Technology - 1.9% Utilities - 0.3% Real Estate - 0.0% Cash - 3.8% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Fund Benchmark

PORTFOLIO ACTIVITY

Purchase Month Sale

Experian Jan - Mar 2019 Ocado Halma Persimmon Britvic Ashtead Entertainment One GlaxoSmithKline

MARKET REVIEW Global equity markets delivered the best quarterly performance for six years, with the UK market up 9.7%, coming in second place after the US, up 11.2%. As a result, most of the losses endured in the last quarter of 2018 have been recovered. The global rally was supported by a shift in US interest rate expectations, from fear of over tightening in Q4 2018 to potentially cutting in 2019 as global growth decelerated. Financial markets have taken the twists and turns of the Brexit process in their stride up to now. Sterling has remained volatile, but trade-weighted it rose 3.1% over the quarter, bringing it back to where it was a year ago. The pound has been in a trading range since the end of 2016.

PERFORMANCE REVIEW During the quarter the fund returned 13.2% versus the benchmark which returned 9.7%. Deciding not to invest in HSBC and added more than 1% relative outperformance. Many of our holdings performed very well during the period, particularly Ocado, , Entertainment One, British American Tobacco and WH Smith.

Ocado, bought in January and February, was up 50% as it announced a joint venture with M&S as well as a partnership with supermarket Coles in Australia. Software company Aveva continued to perform well as it reported growth above expectations. Entertainment One, producer of Peppa Pig, continued to be extremely successful in China, culminating in the airing of a Peppa Pig movie coinciding with the start of the Chinese year of the pig. The trailer alone reached over 1 billion viewers. One of its movies was Oscar nominated (Green Book). British American Tobacco delivered robust full year results and demonstrated its strength across their whole nicotine-product portfolio during a well attended capital markets day. WH Smith bought a well managed, fast growing US travel electronics business which should enable them to expand their regional and product reach.

On the downside, defensive holdings lagged the UK market rally, impacting our holdings in BT, Shell and GlaxoSmithKline. Concerns about the US housing market weighed on Ashtead and Ferguson and relatively high valuations held back progress in RELX and .

As a strong performance resulted in high valuations, we sold all our holdings in United Utilities, Halma and Britvic. We reduced our holding in Entertainment One and GlaxoSmithKline. Attracted by their low valuations we bought Ashtead, Johnson Matthey and Persimmon.

STOCK EXAMPLE Ocado was bought in the fund at the end of January. Early February the company had a major fire in one of its customer fulfilment centres. Believing the long-term investment case to be intact, we bought more. Some may view Ocado as a grocery company, but we believe it is a unique technology company able to profitably home-deliver on-line ordered groceries. This is based on their 18 year track record, significant technology investments and a vast patent portfolio. As the on-line share of grocery retail grows, Ocado has been successfully signing grocery partnerships with Casino (France), ICA (Sweden), Sobeys (Canada), Kroger (US) and recently M&S (to replace Waitrose in September 2020) and Coles (Australia). In the UK they home-deliver Waitrose, Morrison, their own and third party products. Partnership customers will use Ocado's customised blue-print, benefit from ongoing advancements in return for initial build fees and ongoing capacity fees. Whilst there are likely to be more grocery partnerships, we believe Ocado's footprint will expand beyond grocery retail, supported by their extensive patent-filings and management ambitions.

OUTLOOK While there are still some worrying indicators, such as the decline in bond yields to below short-term interest rates for several days in March, the balance of probabilities suggests a recession is unlikely. Global 2019 earnings expectations have fallen from 9.5% at the end of last year to 6.7% today and are likely to fall further. Given the market's resilience despite these downgrades, the coming Q2 results season could be volatile. We suspect that sterling could move significantly when we know the nature of the UK's withdrawal from the EU, but it remains very difficult to speculate on which direction that move will be in and when this might be. We continue to find good investment ideas in companies fitting our key attributes of sustainable competitive advantage, future cash flow growth, value enhancing management at attractive valuations given their risk and reward. BIOGRAPHIES

TINEKE FRIKKEE FUND MANAGER Tineke joined Waverton in August 2018 to work on developing our UK Equity research capabilities. Tineke has managed UK equity funds for 16 years. She was at Smith & Williamson for five years (2013-2018) managing the S&W UK Equity Income unit fund and a Global Multi Asset Growth fund. Prior to that she spent 15 years (1998-2013) at Newton Investment Management (a BNY Mellon subsidiary) where she managed the flagship Newton Higher Income Fund from April 2004 to December 2012 as well as 14 other UK equity mandates for charity, pension, fund-of-fund, sovereign wealth and retail investors. During that time she won a number of performance accolades. Tineke is a CFA Charterholder, CISI member and has an MBA from CASS Business School. Tineke grew up in The Netherlands where she completed a Bachelor's degree in Health Sciences. Tineke Frikkee

ALEXANDRA BUCHAN FUND MANAGER Alexandra joined the company in 2013 as a UK equity specialist. She manages portfolios for a wide range of clients with a particular emphasis on offshore assets. She is the co-manager of the Waverton Portfolio Fund and is a member of the International Client Committee. Alexandra came to Waverton after completing a graduate training scheme at Smith & Williamson. Alexandra graduated from the University of Durham with a degree in History and since then has passed the Investment Management Certificate, the CISI Masters in Wealth Management and CFA Level 1. In 2018 Alexandra was selected as one of PAM’s Top 40 under 40 which recognises, introduces and promotes rising stars of the private client wealth management world. Alexandra Buchan

FUND DETAILS AVERAGE PEER FUND FACTS RISK STATISTICS FUND GROUP Launch Date 30th March 2007 3Y Annualised Morningstar Category UK Large Cap Blend Equity Fund Volatility (%) 11.8 9.7 Benchmark MSCI UK All Cap Index Index Volatility (%) 9.6 - Fund Size £13.8m Sharpe Ratio 0.1 0.8 No. of Holdings 35 Information Ratio -1.1 -0.4 Domicile Ireland Tracking Error 7.1 4.4 Sedol B1RMZK0 Alpha (%) -9.1 -0.8 Bloomberg Code WAVUKAG ID Beta 1.0 0.9 Fund Type OEIC Active Share (% - Current) 53.2 - Base Currency GBP Other Currencies None Ex Dividend Dates 30th April and 31st October

FUND INFORMATION Share class ISIN Minimum AMC INC/ACC NAV Historic yield (%) Ongoing charge (%) A GBP IE00B1RMZK07 1,500 GBP 1.00% INC 12.99 1.61% 1.42%

CONTACT DETAILS MARKETING CONTACT ADMINISTRATOR Jonno Ross RBC Investor Services [email protected] [email protected] +44 (0)20 7484 7491 www.waverton.co.uk Risk Warning: past performance is no guide to future performance. The value of holdings may fall as well as rise. All financial investments involve an element of risk. The level of income from the investment may fluctuate in value. Currency movements may also affect the value of the investment. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency. For full details of investment risks please refer to the Prospectus. A copy of the full prospectus and the KIID is available from Waverton Investment Management or Administrator, RBC Investor Services (Ireland). Sources: Waverton, Morningstar. Issued by Waverton Investment Management Limited. Registered in No 2042285. Registered Office: 16 Babmaes Street, London, SW1Y 6AH. Authorised and Regulated by the Financial Conduct Authority.