Kleinwort Benson Elite PCC Limited Annual Report and Audited Financial Statements For the year ended 31 July 2016

Guernsey Registered Company Number: 42365 2 Annual Report & Audited Financial Statements Alternative InvestmentFundManagersDirectiveAlternative Cell SummaryofMaterialPortfolioChanges Cell PortfolioofInvestments Notes totheFinancialStatements Balance Sheet Statement ofChangeinNetAssetsAttributabletoShareholders Statement ofTotal Return Independent Auditor’s Report Custodian Report Directors’ Report InvestmentFundManager’sAlternative Report Investor Information Contents RegisteredGuernsey Company Number:42365 For the year ended 31 July 2016 andAnnual Audited Report Financial Statements Kleinwort Benson Elite PCC Limited

78 71 62 28 24 20 20 19 18 13 7 3 instruments andother (suchas,butnotlimited to holdcollectiveinvestmentschemes, cash,moneymarket InvestmentFundManagermayalsochoose The Alternative Development (OECD). states oftheOrganisationfor EconomicCo-operationand by sovereign orcorporateborrowers withinthemember bonds, notes ornegotiable instruments issued or guaranteed portfolio ofpredominantly sterlingdenominatedsecurities, The Cellwillseektoachieveitsobjectivethrough adiversified of fixedincomeandcashinvestments. the mediumtolongtermwithlowvolatilitythrough aportfolio by wayofincomewiththepossibilitycapitalgrowth over investment objectiveoftheCellisprimarilytoproduce returns known asKleinwortBensonEliteSterlingIncomeFund.The This Fundwaslaunchedon28April2006andformerly Fund Kleinwort BensonEliteSterlingFixedIncome Cells The Benson EliteEURFixedIncomeFundwhichare inEuros. as KleinwortBensonEliteEURCurrency FundandKleinwort Elite USDCurrency Fundwhichis UnitedStatesdollaraswell of eachCellispoundssterlingexceptforKleinwortBenson The functionalandreporting currency oftheCompanyand (‘CISE’). Cells, are listedontheChannel Islands SecuritiesExchange multiple share classes.Thirty twoclasseswithintenofthe The Company currently has eleven active Cells which include specific totheCells. through wholly-ownedsubsidiaries ofsuchCellsinportfolios on thespecificobjectivesofeachCell)includinginvesting long-term capitalgrowth, income ortotalreturn (depending The investmentphilosophyoftheCompanyistoachieve Principal activityandinvestmentobjective to theliabilitiesofotherserieswithinumbrella structure. LawtheassetsofanyseriescellareGuernsey notexposed any non-cellularassetsoftheCompany. Therefore under any otherCell,exceptasprovided undertheLawagainst that particularCell.Theyhavenorecourse totheassetsof Company onlyhaverecourse totheassetsattributable portfolio. Personsinvestinganddealinginacellofthe (“The Law”).Theassetsofeachcellare heldinasegregated by the provisions Law, of The Companies (Guernsey) 2008 open-ended investmentProtected CellCompanygoverned Law,(Bailiwick ofGuernsey) 1987.TheCompanyisan as aClassBSchemeunderTheProtection ofInvestors Financial Services Commission (“GFSC”) by the Guernsey on30September2004andisauthorised liability inGuernsey The Companywasincorporatedasacompanywithlimited General information Investor Information portfolio management. derivatives forinvestmentpurposesaswellefficient achieving theoverallobjectiveofCell.TheCellmayuse Investment FundManagermayconsiderappropriate in investment schemesandotherinstrumentsastheAlternative derivative instruments,forward transactions,collective in arangeofequities,bonds,moneymarketinstruments, The Cellwillseektoachieveitsobjectivebyinvestingdirectly across assetclasses. a moderatelevelofriskthrough awelldiversifiedportfolio objective oftheCellistoachievelongtermequityreturns with This Fundwaslaunchedon3October2005,theinvestment Fund Kleinwort BensonEliteMultiAssetBalanced well asforefficient portfoliomanagement. Cell. The Cell may use derivatives for investment purposes as consider appropriate inachievingtheoverallobjectiveof products) InvestmentFundManagermay astheAlternative to, warrants,convertiblepreference shares andstructured portfolio management. derivatives forinvestmentpurposes aswellforefficient achieving theoverallobjective oftheCell.TheCellmayuse Investment FundManagermay considerappropriate in investment schemesandotherinstrumentsastheAlternative derivative instruments,forward transactions,collective in arangeofequities,bonds,moneymarketinstruments, The Cellwillseektoachieveitsobjectivebyinvestingdirectly across assetclasses. returns withequity-likeriskthrough awelldiversifiedportfolio investment objectiveoftheCellistooutperform equity This Fundwaslaunchedon11September2007the Fund Kleinwort BensonEliteMultiAssetGrowth portfolio management. derivatives forinvestmentpurposesaswellefficient achieving theoverallobjectiveofCell.TheCellmayuse Investment FundManagermayconsiderappropriate in investment schemesandotherinstrumentsastheAlternative derivative instruments,forward transactions,collective in arangeofequities,bonds,moneymarketinstruments, The Cellwillseektoachieveitsobjectivebyinvestingdirectly asset classes. low levelofriskthrough awell diversifiedportfolioacross objective oftheCellistoachieveconsistentreturns witha This Fundwaslaunchedon3August2005,theinvestment Conservative Fund Kleinwort BensonEliteMultiAsset 3 Annual Report & Audited Financial Statements 4 Annual Report & Audited Financial Statements 2012. plc (‘UnderlyingFund’)andwaslaunchedon12October Liquidity Fund,asub-fundoftheHSBCGlobalFund invest exclusivelyintheeuro AShares oftheHSBCEuro The Cellhasbeenestablishedasafeederfundwhichwill Kleinwort BensonEliteEURCurrency Fund pounds sterlingdenominatedmoneymarketinterest rates. with aninvestmentreturnwhichiscomparabletonormal investors withsecurityofcapitalanddailyliquiditytogether The investmentobjectiveoftheUnderlyingFundistoprovide 12 October2012. Liquidity Fundplc(‘UnderlyingFund’)andwaslaunchedon Sterling Liquidity Fund, a sub-fund of the HSBC Global invest exclusively in the sterling A Shares of the HSBC The Cellhasbeenestablishedasafeederfundwhichwill Fund Kleinwort BensonEliteSterlingCurrency well asforefficient portfoliomanagement. Cell. TheCellmayusederivativesforinvestmentpurposesas consider appropriate in achievingtheoverallobjectiveof products) InvestmentFundManagermay astheAlternative to, warrants, convertible preference shares and structured instruments andother(suchas,butnotlimited to holdcollectiveinvestmentschemes,cash,moneymarket InvestmentFundManagermayalsochoose The Alternative equitybasedsecurities. international objective through adiversifiedportfolioofpredominantly over mediumtolongterm.TheCellwillseekachieveits investment objectiveoftheCellistomaximisecapitalgrowth This Fundwaslaunchedon12October2012,the Fund Equity Kleinwort BensonEliteInternational dollar denominatedmoneymarket interest rates. with aninvestmentreturn whichiscomparable tonormalUS investors withsecurityofcapital anddailyliquiditytogether The investmentobjectiveofthe UnderlyingFundistoprovide 12 October2012. Liquidity Fundplc(‘UnderlyingFund’)andwaslaunchedon US DollarLiquidityFund,asub-fundoftheHSBCGlobal invest exclusivelyintheUSdollarAShares oftheHSBC The Cellhasbeenestablishedasafeederfundwhichwill Fund Kleinwort BensonEliteUSDollarCurrency euro denominatedmoneymarketinterest rates. with aninvestmentreturnwhichiscomparabletonormal investors withsecurityofcapitalanddailyliquiditytogether The investmentobjectiveoftheUnderlyingFundistoprovide Investor Information (continued) Fund Kleinwort BensonEliteEURFixedIncome well asforefficient portfoliomanagement. Cell. TheCellmayusederivativesforinvestmentpurposesas consider appropriate inachievingtheoverallobjectiveof products) InvestmentFundManagermay astheAlternative to, warrants, convertible preference shares and structured instruments andother(suchas,butnotlimited to holdcollectiveinvestmentschemes,cash,moneymarket InvestmentFundManagermayalsochoose The Alternative securities. of predominantlybondsandGovernment international seek toachieveitsobjectivethrough adiversifiedportfolio portfolio offixedincomeandcashinvestments.TheCellwill medium tolongtermwhilstgeneratingincomethrough a objective oftheCellistomaximisetotalreturns overthe This Fundwaslaunchedon12October2012,theinvestment Fund Bond Kleinwort BensonEliteInternational further distributionstoshareholders. If thecashflowissufficient theDirectors willconsidermaking illiquid investmentassetsinEEALifeSettlementsFund. The ParticipatingShare share classofthisFundholds Kleinwort BensonEliteTrojan Fund portfolio management. derivatives forinvestmentpurposesaswellefficient achieving the overall objective of the Cell. The Cell may use Investment Fund Manager may consider appropriate in preference shares andstructured products) astheAlternative instruments (suchas,butnotlimitedto,warrants,convertible schemes, cash, money market instruments and other Manager mayalsochoosetoholdcollectiveinvestment InvestmentFund Development (OECD).TheAlternative states oftheOrganisationforEconomicCo-operationand by sovereign orcorporate borrowers withinthemember bonds, notesornegotiableinstrumentsissuedguaranteed portfolio ofpredominantly euro denominatedsecurities, The Cell will seek to achieve its objective through a diversified income andcashinvestments. to longtermwithlowvolatilitythrough aportfoliooffixed income withthepossibilityofcapitalgrowth overthemedium objective oftheCellisprimarilytoproduce returnsbywayof This Fundwaslaunchedon12October2012,theinvestment

• Kleinwort BensonElite USD Currency Fund • Kleinwort BensonEliteEURCurrency Fund • Kleinwort BensonEliteGBPCurrency Fund • • • Fund Equity Kleinwort BensonEliteInternational • • • • • • • Fund: Kleinwort BensonEliteMultiAssetGrowth • • • • • • Conservative Fund: Kleinwort BensonEliteMultiAsset • • • • • • • • • Fund: Kleinwort BensonEliteMultiAssetBalanced • • Fund: Kleinwort BensonEliteSterlingFixedIncome Cells and Class Names Investor Information B USDAccumulatingNon-reporting Shares* B EURAccumulatingNon-reporting Shares* B GBPAccumulatingNon-reporting Shares* B GBPAccumulatingNon-reporting Shares* A GBPReinvestReportingShares* A GBPIncomeReportingShares* B GBPAccumulatingNon-reporting Shares* B EURAccumulatingNon-reporting Shares* B USDAccumulatingNon-reporting Shares* A USDAccumulatingReportingShares* B GBPIncomeReportingShares* A GBPReinvestReportingShares* A GBPIncomeReportingShares* B GBPAccumulatingNon-reporting Shares* B EURAccumulatingNon-reporting Shares* B USDAccumulatingNon-reporting Shares* A EURAccumulatingReportingShares* B GBPIncomeReportingShares* A GBPIncomeReportingShares* B GBPAccumulatingNon-reporting Shares* B EURAccumulatingNon-reporting Shares* B USDAccumulatingNon-reporting Shares* A EURAccumulatingReportingShares* A USDAccumulatingNon-reporting Shares* A USDAccumulatingReportingShares* B GBPIncomeReportingShares* A GBPReinvestReportingShares* A GBPIncomeReportingShares* B IncomeReportingShares* A IncomeReportingShares* (continued) *These share classesare listedontheCISE. • Kleinwort BensonEliteTrojan Fund • Fund Kleinwort BensonEliteEURFixedIncome • Fund Bond Kleinwort BensonEliteInternational Participating Shares (suspended) B EURIncomeReportingShares* B GBPAccumulatingNon-reporting Shares* 5 Annual Report & Audited Financial Statements 6 Annual Report & Audited Financial Statements Investor Information Guernsey GY12HT Guernsey St PeterPort Admiral Park Dorey Court Ground Floor Limited JTC FundSolutions(Guernsey) Sponsor to the CISE Listing Designated Manager, Registrar and Administrator, Secretary, Company GY12HT Guernsey St PeterPort Admiral Park Dorey Court Ground Floor Registered Office GY12HT Guernsey St PeterPort Admiral Park Dorey Court Ground Floor M Bright GY12HT Guernsey St PeterPort Admiral Park Dorey Court Ground Floor M Maubec GY12HT Guernsey St PeterPort Admiral Park Dorey Court Ground Floor A Moorshead GY12HT Guernsey St PeterPort Admiral Park Dorey Court Ground Floor R Phillips(Chairman) Directors

(continued) PO Box98 Carey Olsen Legal Advisers GY13HW Guernsey St PeterPort Glategny Esplanade Regency Court Deloitte LLP AuditorIndependent GY11WAGuernsey St PeterPort St Julian’s Avenue BNP ParibasHouse Branch BNP ParibasSecuritiesServicesSCA–Guernsey Custodian W1S 1FE London 14 StGeorgeStreet Kleinwort BensonBankLimited Manager Sub-Investment GY12HT Guernsey St PeterPort Admiral Park Dorey Court Management Limited Kleinwort Benson(ChannelIslands)Investment Alternative Investment Fund Manager GY14BZ Guernsey St PeterPort Les Banques Carey House

fund. Historicallythefundhas hadaUKbiasinitsequity will generatethebestpossible returnsforholdersofthe passive allocation.We considerthatthisblendedapproach equity andUKgiltimplementation), wewillcontinuewitha consistently outperform(achallenge inparticularforUS Where weare unable toidentifyactivemanagersthatcan they candemonstratehaveconsistentlyaddedvalue. to includeactivemanagersintheportfolio,butonlywhere allocation forthefund.Afterdetailedanalysiswedecided primarily used passive investments to deliver our target asset to themanagementoffund.Foranumberyearswe At thebeginning of Januarywemadeanumberchanges both globalequitiesandbonds. the Referendum, Julyproved tobeanotherstrong monthfor also causedarushforsafehaven-gilts.Indeed,following will be supported by a weak pound. However, the volatility operationsofitsglobalcompanies that largelyinternational after afewanxiousdays,torallyintheFTSE100,given which fellby11%theendofJune.Thisironically led, for markets,themostimmediateimpactwastoSterling, 23. Whilethiseventhasmyriadunravellingconsequences voting to leave the European Union (EU), or “Brexit”, on June sense ofapprehension wasrenewed asaresult oftheUK Just asmarketswere beginning tostabilize,onceagain,a in February. as rumours of a production “freeze” started making rounds supportive to bonds. Unexpectedly, oil prices received a fillip a more dovishtonethan originally expected,proving quite market wobbleledtotheUSFederalReserve(Fed)setting and dangerously closeto entering bearmarketterritory. The were downover10%on a year-to-date basis inFebruary, price in over a decade. Seemingly in lockstep, global equities Brent crudetradednear$30 perbarrel inFebruary, itslowest speculation ontheeconomicgrowth prospects forChina. by asteepfall in Chineseequitiesledtorampantglobal effect witnessedinmuch of2015,asell-off triggered The periodexperiencedaterriblestart.Echoingthedomino were alsowellsupported,with7to10yeargiltsupover7%. up 11%and12%,respectively. bonds Howevergovernment bellwethers suchastheFTSE100andS&P500were followed bythevolatilitypostBrexit. Overallthemajorequity for markets;initiallyrecovering from thesell-off inJanuary, The sixmonthsendinginJulyhavebeenatumultuousone Portfolio activity 3.8%; UKconventionalGiltsrose 14%. Brexit, compared totheUKequitymarketreturning only GBP terms,benefitingfrom thedevaluationofsterlingpost 2016. Globalequitymarketswere up17%overtheperiodin The fundrose 5.0%overthe12-monthperiodending31July Performance Conservative Fund Kleinwort BensonEliteMultiAsset Alternative Investment Fund Manager’s Report 2016. Globalequitymarketswere up17%overtheperiodin The fundrose 6.5%overthe 12-monthperiodending31July Performance Balanced Fund Kleinwort BensonEliteMultiAsset proved beneficial,posttheBrexit vote,forthefund. have significantlyreduced ourUKequityexposure which Taken togetherthesechanges,sincethestartofyear, the proceeds. equity holdings adding Asian and Japanese positions with commodities initsplace.We alsofurtherreduced the UK commercial property exposure, addinganallocationto In Maywetookthedecisiontoremove thefund’s UK risks experiencedinrecent years. potential returns, avoiding some of the intrinsic UK market flexibility toinvestinthemostattractivemarkets,enhancing the UKequityexposure asaresult. Thisdecisiongives usthe allocation; thiswaschangedtoaGlobalapproach, reducing will be supported by a weak pound. However, the volatility operationsofitsglobalcompanies that largelyinternational after afewanxiousdays,to rallyintheFTSE100,given which fellby11%theend ofJune.Thisironically led, for markets,themostimmediate impactwastoSterling, 23. Whilethiseventhasmyriad unravellingconsequences voting the leave the European Union (EU), or “Brexit”, on June sense ofapprehension wasrenewed asaresult oftheUK Just asmarketswere beginningtostabilize,onceagain,a in February. as rumours of a production “freeze” started making rounds supportive to bonds. Unexpectedly, oil prices received a fillip a more dovishtonethanoriginallyexpected,proving quite market wobbleledtotheUSFederalReserve(Fed)setting and dangerously closetoenteringbearmarketterritory. The were downover10%onayear-to-date basisinFebruary, price in over a decade. Seemingly in lockstep, global equities Brent crudetradednear$30 perbarrel inFebruary, itslowest speculation ontheeconomicgrowth prospects forChina. by asteepfallin Chinese equities led torampantglobal effect witnessedinmuch of2015,asell-off triggered The periodexperiencedaterriblestart.Echoingthedomino were alsowellsupported, with 7to10yeargiltsupover7%. up 11%and12%,respectively. bonds Howevergovernment bellwethers suchastheFTSE100andS&P500were followed bythevolatilitypostBrexit. Overallthemajorequity for markets;initiallyrecovering from thesell-off inJanuary, The sixmonthsendinginJulyhavebeenatumultuousone Portfolio activity 3.8%; UKconventionalGiltsrose 14%. Brexit, compared totheUKequitymarketreturning only GBP terms,benefitingfrom the devaluation ofsterlingpost

7 Annual Report & Audited Financial Statements 8 Annual Report & Audited Financial Statements were down over10%onayear-to-date basis inFebruary, price in over a decade. Seemingly in lockstep, global equities Brent crudetradednear$30perbarrel inFebruary, itslowest speculation ontheeconomic growth prospects forChina. by asteepfall in Chineseequitiesledtorampantglobal effect witnessedinmuchof2015,asell-off triggered The periodexperiencedaterriblestart.Echoingthedomino were alsowellsupported,with7to10yeargiltsupover7%. up 11%and12%,respectively. bonds Howevergovernment bellwethers suchastheFTSE100andS&P500were followed bythevolatilitypostBrexit. Overallthemajorequity for markets;initiallyrecovering from thesell-off inJanuary, The sixmonthsendinginJulyhavebeenatumultuousone Portfolio activity 3.8%; UKconventionalGiltsrose 14%. Brexit, compared totheUKequitymarketreturning only GBP terms,benefitingfrom the devaluation ofsterlingpost 2016. Globalequitymarketswere up17%overtheperiodin The fundrose 8.9%overthe 12-monthperiodending31July Performance Growth Fund Kleinwort BensonEliteMultiAsset proved beneficialpostthe Brexit voteforthefund. have significantlyreduced ourUKequityexposure which Taken togetherthesechanges,sincethestartofyear, the proceeds. equity holdings adding Asian and Japanese positions with commodities initsplace.We alsofurtherreduced theUK commercial property exposure, addinganallocationto In Maywetookthedecisiontoremove thefund’s UK risks experiencedinrecent years. potential returns, avoiding some of the intrinsic UK market flexibility toinvestinthemostattractivemarkets,enhancing the UKequityexposure asaresult. Thisdecisiongives usthe allocation; thiswaschangedtoaGlobalapproach, reducing fund. HistoricallythefundhashadaUKbiasinitsequity will generatethebestpossiblereturnsforholdersof passive allocation.We considerthatthisblendedapproach equity andUKgiltimplementation),wewillcontinuewitha consistently outperform(achallengeinparticularforUS Where weare unabletoidentifyactivemanagersthat can they candemonstratehaveconsistentlyaddedvalue. to includeactivemanagersintheportfolio,butonlywhere allocation forthefund.Afterdetailedanalysiswedecided primarily used passive investments to deliver our target asset to themanagementoffund.Foranumberyearswe At thebeginningofJanuarywemadeanumberchanges both globalequitiesandbonds. the Referendum, Julyproved tobeanotherstrong monthfor also causedarushforsafehaven-gilts.Indeed,following Alternative Investment Fund Manager’s Report

primarily used passive investments to deliver our target asset to themanagementoffund.Foranumberyearswe At thebeginningofJanuarywemadeanumberchanges both globalequitiesandbonds. the Referendum, Julyproved tobeanotherstrong monthfor also causedarushforsafehaven-gilts.Indeed,following will be supported by a weak pound. However, the volatility operationsofitsglobalcompanies that largelyinternational after afewanxiousdays,torallyintheFTSE100,given which fellby11%theendofJune.Thisironically led, for markets,themostimmediateimpactwastoSterling, 23. Whilethiseventhasmyriadunravellingconsequences voting the leave the European Union (EU), or “Brexit”, on June sense ofapprehension wasrenewed asaresult oftheUK Just asmarketswere beginningtostabilize,onceagain,a in February. as rumours of a production “freeze” started making rounds supportive to bonds. Unexpectedly, oil prices received a fillip a more dovishtonethanoriginallyexpected,proving quite market wobbleledtotheUSFederalReserve(Fed)setting and dangerously closetoenteringbearmarketterritory. The proved beneficialposttheBrexit voteforthefund. have significantlyreduced ourUKequityexposure which Taken togetherthesechanges,sincethe startoftheyear, the proceeds. equity holdings adding Asian and Japanese positions with commodities initsplace.We alsofurtherreduced theUK commercial property exposure, addinganallocationto In Maywetookthedecisiontoremove thefund’s UK risks experiencedinrecent years. potential returns, avoiding some of the intrinsic UK market flexibility toinvestinthemostattractivemarkets,enhancing the UKequityexposure as a result. Thisdecisiongivesusthe allocation; thiswaschangedtoaGlobalapproach, reducing fund. HistoricallythefundhashadaUKbiasinitsequity will generatethebestpossiblereturnsforholdersof passive allocation.We consider thatthisblendedapproach equity andUKgiltimplementation),wewillcontinuewitha consistently outperform(achallengeinparticularforUS Where weare unabletoidentifyactivemanagersthatcan they candemonstratehaveconsistentlyaddedvalue. to includeactivemanagersintheportfolio,butonlywhere allocation forthefund.Afterdetailedanalysiswedecided (continued) since December 1994.InupdatingitsWorld Economic UK consumerconfidencesaw itssharpestone-monthdrop the more domesticorientedFTSE250performedlesswell. to rallyfollowingthenear10% declineinsterling,whereas only forthepredominantly focusedFTSE100 international and UK equities into turmoil. UK equities initially fell sharply UK votedtoleavetheEUsendingpoundsharplylower campaign. Intheend,comingasasurprisetomany, the increased overtheoutcomeofcloselyfoughtBrexit European Unionmembershipneared, sterlingvolatility During earlyspring,asthedateofUKreferendum on at 0.11%bytheendofmonth. the problems facingtheregion, 10yrGermanBundstraded and UKrespectively. InEurope, asacontinuedexpression of accordingly toendthemonthat1.74%and1.34%inUS mid-month recovery, riskwasbackinfavour, yieldsrose for ayearto1.66%.Asequitymarketsstagedstrong low of1.30%,10yrUStreasury yieldsfelltotheirlowest falling torecord lows;UK10Giltyieldsfelltoanall-time February sawacontinuationofflighttosafetywithyields demonstrated negative correlation with equity markets. Early February wasamonthwhere thebondmarketsclearly significantly. bonds rallied as yields fell UK and US 10-year government down over 10% at various stages in the month. Conversely, and 5.1%,respectively; however, bothindiceshadbeen FTSE 100andtheS&P500endedJanuarydown2.5% The beginningof2016wastumultuousforrisk-assets. sell-off inbondyields. confidence inthestrength oftheUSeconomy, sparkinga the firsttimesincefinancialcrisis,signallingavoteof Federal Reserve (Fed) finally raised short-term interest rates, Following a period of relatively robust US economic data the markets continued. rates was very much alive and the sell-off in global energy US FederalReservewouldsanctionanincrease ininterest marked slowdown.Furthermore thedebateastowhen Chinese economyandtheassociatedcontagionfrom any beneficiaries of overthestabilityof renewed concerns Throughout thesummerof2015bondmarketswere future. UK’s andglobaleconomicenvironment fortheforeseeable geopolitical eventsthathaveandare likelytochangethe Over thepastyearthere havebeensignificantmacro and Portfolio activity benchmark returned 13.9%. During theperiodfundreturned6.3%anditscurrent Performance Income Fund Kleinwort BensonEliteSterlingFixed Alternative Investment Fund Manager’s Report

assets. little direct impactonthe fund asweinvestfullyinsterling double the volatility. The decline in the value of sterling had more than double the length of average maturity and hence the fund’s benchmarkwhichreturned13.9%reflecting the the fundstillprovided astrong return of6.3%.Thiswasbehind despite ourcontinuedcautiousapproach tobondsmarkets The continuation of the long-run bull market in bonds and sharply toall-timelowsof0.68%. 10yrbondyieldsfell monetary support,UKgovernment the Bank of England’sstatus. With plan to provide further recession, Moody’s ratingsagencycuttheUK’s AAAratings and forecasts avoteinfavourofBrexit wouldcause aDIY an uncertain future fortheUK’swhich tocut.With economy without action,leavingAugust’s meetingthelikelytimeat rates wouldfallinthesummer. July’s MPC’s meetingpassed England governor, MarkCarney, wasveryclearinthatinterest 1.7% and1.3%for20162017respectively. Bankof Outlook, theIMFrevised itsgrowth forecast fortheUKto significantly. bondsralliedasyieldsfell UK andUS10yeargovernment down over 10% at various stages in the month. Conversely, and 5.1%,respectively; however, bothindiceshadbeen FTSE 100andtheS&P500endedJanuarydown2.5% The beginningof2016wastumultuousforrisk-assets. sell-off inbondyields. confidence inthestrength oftheUSeconomy, sparkinga the firsttimesincefinancialcrisis,signallingavoteof Federal Reserve (Fed) finally raised short-term interest rates, Following a period of relatively robust US economic data the markets continued. rates was very much alive and the sell-off in global energy US FederalReservewouldsanctionanincrease ininterest marked slowdown.Furthermore thedebateastowhen Chinese economyandtheassociatedcontagionfrom any beneficiaries ofrenewed overthestabilityof concerns Throughout thesummer of2015bondmarketswere future. UK’s andglobaleconomicenvironment fortheforeseeable geopolitical eventsthathaveandare likelytochangethe Over thepastyearthere have been significantmacro and Portfolio activity benchmark returned 6.3%. During theperiodfundreturned3.7%anditscurrent Performance Income Fund Kleinwort BensonEliteEURFixed (continued)

9 Annual Report & Audited Financial Statements 10 Annual Report & Audited Financial Statements the longerdurationprofile. behind the fund’s benchmark which returned 6.3%reflecting the fundstillprovided astrong returnof3.7%.Thiswas despite ourcontinuedcautiousapproach tobondsmarkets The continuation of the long-run bull market in bonds and of theUKleavingEUalsoweighedonsentiment. Union apart.Uncertaintysurrounding theeconomicimpact spark a round of regional referendums that could tear the record theBrexit lowof-0.19%amidconcern votewould bondsfelltoa the EU.EUBenchmark10yeargovernment As UKbondyieldsdeclinedtorecord lows,sodidthoseof sharply toall-timelowsof0.68%. 10yrbondyieldsfell monetary support,UKgovernment the Bank of England’sstatus. With plan to provide further recession, Moody’s ratingsagencycuttheUK’s AAAratings and forecasts avoteinfavour ofBrexit wouldcauseaDIY an uncertain future fortheUK’swhich tocut.With economy without action,leavingAugust’s meetingthelikelytimeat rates wouldfallinthesummer. July’s MPC’s meetingpassed England governor, MarkCarney, wasveryclearinthatinterest 1.7% and1.3%for20162017respectively. Bankof Outlook, theIMFrevised its growth forecast fortheUKto since December1994.InupdatingitsWorld Economic UK consumerconfidencesawitssharpestone-monthdrop the more domesticoriented FTSE250performedlesswell. to rallyfollowingthenear10%declineinsterling,whereas only forthepredominantly focusedFTSE100 international and UK equities into turmoil. UK equities initially fell sharply UK votedtoleavetheEUsendingpoundsharplylower campaign. Intheend,comingasasurprisetomany, the increased overtheoutcomeofcloselyfoughtBrexit European Unionmembershipneared, sterlingvolatility During earlyspring,asthedateofUKreferendum on at 0.11%bytheendofmonth. problems facingtheregion, 10yearGermanBunds traded respectively. In Europe, as a continued expression of the to endthemonthat1.74%and1.34%inUSUK recovery, riskwasbackinfavour, yieldsrose accordingly year to1.66%.Asequitymarketsstagedastrong mid-month of 1.30%,10yearUStreasury yieldsfelltotheirlowestfora falling torecord lows;UK10Giltyieldsfelltoanall-time low February sawacontinuationofflighttosafetywithyields demonstrated negative correlation with equity markets. Early February wasamonthwhere thebondmarketsclearly Alternative Investment Fund Manager’s Report the firsttimesincefinancialcrisis,signallingavoteof Federal Reserve (Fed) finally raised short-term interest rates, Following a period of relatively robust US economic data the markets continued. rates was very much alive and the sell-off in global energy US FederalReservewouldsanctionanincrease ininterest marked slowdown.Furthermore thedebateastowhen Chinese economyandtheassociatedcontagionfrom any beneficiaries ofrenewed overthestabilityof concerns Throughout thesummerof2015bondmarketswere future. UK’s andglobaleconomicenvironment fortheforeseeable geopolitical eventsthathaveandare likelytochangethe Over thepastyearthere havebeensignificantmacro and Portfolio activity benchmark returned 28.6%. During theperiodfundreturned7.5%anditscurrent Performance BondFund Kleinwort BensonInternational 1.7% and1.3%for2016 2017respectively. Bankof Outlook, theIMFrevised itsgrowth forecast for theUKto since December1994.Inupdating itsWorld Economic UK consumerconfidencesaw itssharpestone-monthdrop the more domesticorientedFTSE250performedlesswell. to rallyfollowingthenear10% declineinsterling,whereas only forthepredominantly focusedFTSE100 international and UK equities into turmoil. UK equities initially fell sharply UK votedtoleavetheEUsendingpoundsharplylower campaign. Intheend,comingasasurprisetomany, the increased overtheoutcomeofcloselyfoughtBrexit European Unionmembershipneared, sterlingvolatility During earlyspring,asthedateofUKreferendum on at 0.11%bytheendofmonth. problems facingtheregion, 10yearGermanBundstraded respectively. In Europe, as a continued expression of the to endthemonthat1.74%and1.34%inUSUK recovery, riskwasbackinfavour, yieldsrose accordingly year to1.66%.Asequitymarketsstagedastrong mid-month of 1.30%,10yearUStreasury yieldsfelltotheirlowestfora falling torecord lows;UK10Giltyieldsfelltoanall-timelow February sawacontinuationofflighttosafetywithyields demonstrated negative correlation with equity markets. Early February wasamonthwhere thebondmarketsclearly significantly. bondsralliedasyieldsfell UK andUS10yeargovernment down over 10% at various stages in the month. Conversely, and 5.1%,respectively; however, bothindiceshadbeen FTSE 100andtheS&P500endedJanuarydown2.5% The beginningof2016wastumultuousforrisk-assets. sell-off inbondyields. confidence inthestrength oftheUSeconomy, sparkinga (continued) to theothers.) select stocks that will behave in fundamentally different ways classed as“Industrials”;i.e.,there isgreater opportunityto sector giventheespeciallydiverse nature ofbusinesses there isgreater opportunity tooutperformintheIndustrials ranging from +48to+57%eachinGBPterms.(Arguably, Group, Cintas,andLockheedMartinprovided totalreturns as steadypositionsinWaste ManagementInc.,Jack Henry sectors. SelectionwithinIndustrialswasespeciallystrong, and –aswithprevious periods–wasadditiveacross most Stock selection remains the primary driver of performance allocations. our regional allocationsprovided someadditionalbenefitwith outperformance wasprimarilyduetostockselection,though As withlastyear, thestrong positiveperformanceandrelative Portfolio activity returned +13.7%(GBP, net)overthesameperiod. group GlobalLargeCapindex–which –theMorningstar +24.7% (GBP, net).Thiscompares favourablytoFund’s peer For the12monthsending31July2016,Fundreturned Performance EquityFund Kleinwort BensonInternational the fundalsounderperformedonarelative durationbasis. strategy, one that is applied across all fixed income strategies, impact on performance. Combined with our short duration small non-sterlingallocationresulting inamarginalpositive fund, interpreting theKBcurrency houseviews,hadonlya a significantpositiveimpactonshort-termperformance.The only 5%oftheindex.Thesharpdeclineinsterling’s valuehad (23.5%) andJapaneseYen (18%)withsterlingrepresenting a largebasketofcurrencies, most notablyUSD(45%),Euro as indicatedrose 28.6%. The benchmarkismadeupfrom EU referendum voteand15%fortheyear, thebenchmark Combine thiswiththeimmediate11%insterlingpostJune’s the Brexit vote, equating to capital gains of around 12%. gilt yieldsfellfrom 1.99%toanall-timelowof0.52%post year bondyieldsfellsharply, forexamplesterling10year non-sterling currency allocation.Throughout 2016bond 10 both thelongerdurationprofile andamore international behind thefund’s benchmarkwhichreturned 28.6%reflecting the fundstillprovided astrong returnof7.5%.This was despite ourcontinuedcautiousapproach tobondsmarkets The continuation of the long-run bull market in bonds and sharply toall-timelowsof0.68%. 10yrbondyieldsfell monetary support,UKgovernment the Bank of England’sstatus. With plan to provide further recession, Moody’s ratingsagencycuttheUK’s AAAratings and forecasts avoteinfavourofBrexit wouldcause aDIY an uncertain future fortheUK’swhich tocut.With economy without action,leavingAugust’s meetingthelikelytimeat rates wouldfallinthesummer. July’s MPC’s meetingpassed England governor, MarkCarney, wasveryclearinthatinterest Alternative Investment Fund Manager’s Report At present, the Fund remains positioned with a significant reallocate capital. numerous attractive opportunities whenever seekingto encountered thisinthepastyearandcontinuetoobserve look attractive per our approach to selection, we have not While itispossiblethatattimesthere willbefewstocksthat move ontosomethingoffering abetterrisk/return profile. fundamental weakness,welooktocloseoutthepositionand and becomesrelatively expensiveorbeginstoshowsignsof to stockselection. In essence, as a stock either outperforms changes inholdings,allbasedonourQuality-Value approach Over thecourseofyear, weeffected a number of and overweightexposures toUSDollarandCanadianDollar. particularly theFund’s relative underweighttoJapaneseYen resultant biasesincurrency exposures were additivealso; equity markets.Fortheperiodunderreview, theFund’s exposures within+/-10%oftheirnaturalweightinginglobal management purposeswetendtokeepimpliedcurrency the bottom-upstockselection,thoughforprudentrisk currency exposures; exposures are more afunctionof The Fundisnotmanagedwithanyparticularfocuson for genuineactiveportfoliomanagement. benchmark’s stock,sectorandcountryweights–providing Fund’s portfolio,weallowforsignificantdeviationsfrom the the market, and so when selecting stocks and forming the the market,Fundmustnecessarilybedifferent from the globalequitymarketbenchmark.Inorder tooutperform continued divergenceofperformancebetweentheFundand Looking forward, weshould expect(asalways)tosee wider portfolio. allocation ofjust7.7%remains modestinthecontextof overweight exposure tothe Utilitiessector, buttheFund’s offers diverseopportunities. There remains alsoalessor overweight allocationtotheIndustrialssector, whichagain (continued) 11 Annual Report & Audited Financial Statements 12 Annual Report & Audited Financial Statements distribution toShareholders. flow is sufficient the Directors will consider making a further of policymaturitiesinAugustandSeptember. Ifthecash shareholders inthefourthquarter of2016followinganumber confirms thatEEAwillmakeanotherdistributionto Information suppliedafterthecloseoffinancialyear Fund shareholders. discount was still considered too much to offer value to the by SoutheyCapital,howeverat29%-31%ofAprilNAV the appropriate toacceptthisoffer. Afurtheroffer wasalsomade March NAV. Theinvestmentmanagersdidnotconsiderit prices was confirmed when they offered 26.69% of the expectation thatTullet Prebon were likelytooffer distressed was delayeduntilafterthedistributionmadeandour to buyEEALifeSettlementsRun-Off shares. Theoffer announced thattheywere prepared toconsiderbidding fourth quarterof2015Tullet Prebon, aninstitutionalbroker, of 17 pence per share in the first quarter of 2016. Also in the cash flow which was distributed to shareholders at the rate Run-Off shareholders andtheFundreceived asubstantial the saleofapproximately 25%ofpoliciesattributabletothe During thefourthquarterof2015EEAmanagedtonegotiate Portfolio activity short tomediumterm. resulting inlesscashflowavailabletoshareholders inthe cash flows received and increased the premiums payable rate than initially expected and this has both reduced the underlying policieshaveexperiencedamuchlowermortality mature are they able to return cash to shareholders. The tradeable. OnlyasEEAare abletofindabuyerorpolicies The assets held by EEA are life policies and are not readily Shares which in themselves are in the process of winding up. one remaining investment is EEA Life Settlements Run-Off The Fundremains intheprocess ofbeing wound up.The Performance Kleinwort BensonTrojan Fund Alternative Investment Fund Manager’s Report (continued) Fund. Bond Equity FundandKleinwortBensonEliteInternational Fixed IncomeFund,KleinwortBensonEliteInternational Sterling FixedIncomeFund,KleinwortBensonEliteEUR 31 Octoberineachyearrespect ofKleinwortBensonElite can bedeclared on31January, 30April, 31 Julyand In accordance withthe CellParticulars,dividends and paydividends. The Directors are entitled, in their sole discretion, to declare had noimpactontheresults ofthe Company. Authorised Funds’’ issuedinMay2014.Howeverthishas of Recommended Practice ‘’Financial Statements of UK have changedtocomplywithFRS102andtheStatement the financialstatementsanumberofaccountingpolicies 2014. Asaconsequence,andasexplainedinthenotesto United KingdomandRepublicofIreland’’ asat1August 102 ‘’TheFinancialReportingStandard applicableinthe Company hastransitionedtoFinancialReportingStandard Accounting Practicefortheyearended31July2015.The under previous UnitedKingdomGenerallyAccepted The previous annualfinancialstatementswere prepared return onpages20and21. The results fortheyearare showninthestatementoftotal Results anddividends 2016 withcomparativesfortheyearended31July2015. the auditedfinancialstatementsforyearended31July “Company”) are pleasedtosubmittheirannualreport and The Directors ofKleinwortBensonElitePCCLimited(the Directors’ Report

Fixed IncomeFund,theKleinwortBensonEliteMultiAsset All expensesinrespect of the KleinwortBensonEliteSterling are greater thanitsliabilitiesafteranydividendispaid. become dueandwhetherthevalueofacompany’s assets whether acompanyisabletopayitsdebtswhenthey prescribed undertheLaw. Thesolvencytestconsiders of accountingprofit provided theysatisfythesolvency test law,Under Guernsey companiescanpaydividendsinexcess Benson EliteGlobalTrojan Fund. Kleinwort BensonEliteUSDCurrency FundandKleinwort Currency Fund, Kleinwort Benson Elite EUR Currency Fund, No dividendsare declared byKleinwortBenson EliteGBP registered ontheregister attherecord date. the relevant date(the“PaymentDate”)toallshareholders Dividend incomewillbedistributedwithintwomonthsof and KleinwortBensonEliteMultiAssetGrowth Fund. respect ofKleinwortBensonEliteMultiAssetBalancedFund Conservative Fundanddeclared on31Julyeachyearin in eachyearrespect ofKleinwortBensonEliteMultiAsset Dividends canalsobedeclared on31JanuaryandJuly Particulars ofeachcell. have beenchargedtocapitalasprescribed bytheCell Fund andtheKleinwortBensonEURFixedIncome Bond Conservative Fund,theKleinwortBensonInternational 13 Annual Report & Audited Financial Statements 14 Annual Report & Audited Financial Statements The abovetabledoesnotincludethoseshare classeswhichare notactiveorhavebeenfullyredeemed. The netassetvaluepershare fortheyears2014to2016issummarisedintablebelow. Three yearrecord netassetvaluepershare Directors’ Report A GBPIncomeReportingShares Multi AssetConservativeFund B GBPAccumulatingNon-reporting Shares B EURAccumulatingNon-reporting Shares B USDAccumulatingNon-reporting Shares A EURAccumulatingReportingShares A USDAccumulatingNon-reporting Shares A USDAccumulatingReportingShares B GBPIncomeReportingShares A GBPReinvestReportingShares A GBPIncomeReportingShares Multi AssetBalancedFund B IncomeReportingShares A IncomeReportingShares Sterling FixedIncomeFund Participating Shares Elite Trojan Fund B EURIncomeReportingShares EUR FixedIncomeFund B GBPAccumulatingNon-reporting Shares BondFund International B USDAccumulatingNon-reporting Shares US DollarCurrency Fund B EURAccumulatingNon-reporting Shares Euro Currency Fund B GBPAccumulatingNon-reporting Shares Sterling Currency Fund B GBPAccumulatingNon-reporting Shares A GBPReinvestReportingShares A GBPIncomeReportingShares EquityFund International B GBPAccumulatingNon-reporting Shares B EURAccumulatingNon-reporting Shares B USDAccumulatingNon-reporting Shares A USDAccumulatingReportingShares B GBPIncomeReportingShares A GBPReinvestReportingShares A GBPIncomeReportingShares Multi AssetGrowth Fund B GBPAccumulatingNon-reporting Shares B EURAccumulatingNon-reporting Shares B USDAccumulatingNon-reporting Shares A EURAccumulatingReportingShares B GBPIncomeReportingShares (continued) 2016 £11.21 £1.11 €1.05 $1.08 €1.06 £1.05 £1.09 £1.20 €1.13 $1.16 €1.10 $1.19 $1.19 £1.47 £1.52 £1.52 £0.97 £0.61 €1.00 £0.99 $0.95 €0.97 £0.99 £1.76 £1.42 £1.41 £1.28 €1.21 $1.24 $1.27 £1.28 £1.37 £1.38 2015

£10.94 £1.06 €1.02 $1.03 €1.02 £1.03 £1.06 £1.13 €1.08 $1.11 €1.05 $1.12 $1.12 £1.40 £1.45 £1.45 £0.94 £0.57 €1.00 £0.92 $0.96 €0.98 £0.99 £1.41 £1.15 £1.14 £1.18 €1.13 $1.15 $1.17 £1.18 £1.27 £1.27 2014 £10.77 £1.02 €1.00 $1.01 €1.00 £1.01 £1.04 £1.08 €1.05 $1.06 €1.02 $1.08 $1.08 £1.34 £1.38 £1.38 £0.93 £0.72 €0.99 £0.89 $0.98 €0.99 £0.99 £1.20 £0.98 £0.97 £1.11 €1.09 $1.10 $1.12 £1.12 £1.20 £1.20 financial statements. Details oftherelated partiesare disclosedinnote11tothe Related parties Maubec isentitledtoafeeof£15,000perannum. Phillips isentitledtoafeeof£22,500perannumandMr and Mr Bright waived their entitlement to Directors’ fees, Mr any participatingshares intheCompany. MrMoorshead Investment Fund Managerheld associates ortheAlternative proposed. Asat31July2016noneoftheDirectors, their contract withtheCompanyandnosuchis throughout theperiod.None oftheDirectors hasaservice The Directors are notedonpage6.AllDirectors served Directors *The netcurrent assetpositionis derivedasfollows: • • • • • inter alia,thefollowingfactors: The Directors havearrivedatthisopinionbyconsidering, basis. on thegoingconcern For thisreason thefinancialstatementshavebeenprepared continue inoperationalexistencefortheforeseeable future. expectation thattheCompanyhasadequateresources to In theopinionofDirectors, there isareasonable Going concern Directors’ Report Less investmentassets Less totalliabilities Total assets Cell was31October2016. being realised. Themost recent valuationdateofthe the KBEliteTrojan Fundiscurrently intheprocess of flows associatedwithredemption requests; and individual Cellsare wellplaced tomeetallfuture cash relevant dealing day. On this basis, the Company and settlement periodofuptosevendaysfollowingthe the CellShares dealonaweekly basisandhavea requirements; to meetfuture redemption requests andotherliquidity trade dateandtherefore willhavesufficient resources are abletobesettledwithinthree businessdaysofthe the Companyholdsalargeamountofinvestmentswhich Directors cansuspendalldealings; in theeventofsignificantcellshare redemptions the 31 July2016of£24,034,779*(2015:£19,305,790); on-going expenses(netcurrent assetpositionat the Companyhassufficient liquiditytomeetall (continued) (£195,157,807) £220,244,879 £24,034,779 (£1,052,293)

shares. TheCompanyiscomprised ofanumberCellsand opposed toincome)taxongainsmadethedisposalof fund rulestoenableUKinvestorsbenefitfrom capital(as The Company complies with the provisions of the UK offshore Regime UK Offshore FundRulesandReporting Company. for considerationatthenextAnnualGeneralMeetingof office asauditorandaresolution tore-appoint itisproposed Deloitte LLPhasexpressed itswillingnesstocontinuein Auditor fee of£1,200. the above mentioned Ordinance entails payment of an annual incometax.Exemptionunder without deductionofGuernsey income oftheCompanymaybedistributedoraccumulated Tax Ordinance, (Exempt Bodies) (Guernsey) 1989 and the exemption fromincometaxundertheIncome Guernsey IncomeTaxStates ofGuernsey hasgrantedtheCompany Taxation • • • • • • • • • • Fund regime witheffect from 31July2015. The followingFundshavebeenacceptedintotheReporting each reporting period. the regime to disclose certain information to UK investors for The ReportingFundregime requires fundstobeentered into purpose oftheserules. share classesthatare eachtreated asseparatefundsforthe A GBPIncomeReportingShares Kleinwort BensonEliteMulti Asset BalancedFund– A USDAccumulatingReportingShares* Kleinwort BensonEliteMultiAssetConservativeFund– A EURAccumulatingReportingShares Kleinwort BensonEliteMultiAssetConservativeFund– C GBPIncomeReportingShares* Kleinwort BensonEliteMultiAssetConservativeFund– B GBPIncomeReportingShares Kleinwort BensonEliteMultiAssetConservativeFund– A GBPReinvestReportingShares* Kleinwort BensonEliteMultiAssetConservativeFund– A GBPIncomeReportingShares Kleinwort BensonEliteMultiAssetConservativeFund– C GBPIncomeReportingShares* Kleinwort BensonEliteSterlingFixedIncomeFund– B GBPIncomeReportingShares Kleinwort BensonEliteSterlingFixedIncomeFund– A GBPIncomeReportingShares Kleinwort BensonEliteSterlingFixedIncomeFund–

15 Annual Report & Audited Financial Statements 16 Annual Report & Audited Financial Statements of there beingUKinvestorsinthefuture. make anapplicationforreporting fundstatusinanticipation any investorsatthecurrent timebutithasbeendecidedto Those ReportingFundsmarkedwithanasterisk*donothave • • • • • • • • • • • • • • • • • • • Directors’ Report C EURIncomeReportingShares* Kleinwort BensonEliteEURFixedIncomeFund– B EURIncomeReportingShares Kleinwort BensonEliteEURFixedIncomeFund– A EURIncomeReportingShares* Kleinwort BensonEliteEURFixedIncomeFund– C GBPIncomeReportingShares* BondFund– Kleinwort BensonEliteInternational A GBPIncomeReportingShares* BondFund– Kleinwort BensonEliteInternational C GBPIncomeReportingShares* EquityFund– Kleinwort BensonEliteInternational A GBPReinvestReportingShares EquityFund– Kleinwort BensonEliteInternational A GBPIncomeReportingShares EquityFund– Kleinwort BensonEliteInternational A USDAccumulatingReportingShares Kleinwort BensonEliteMultiAssetGrowth Fund– A EURAccumulatingReportingShares* Kleinwort BensonEliteMultiAssetGrowth Fund– B GBPIncomeReportingShares Kleinwort BensonEliteMultiAssetGrowth Fund– C GBPIncomeReportingShares* Kleinwort BensonEliteMultiAssetGrowth Fund– A GBPReinvestReportingShares Kleinwort BensonEliteMultiAssetGrowth Fund– A GBPIncomeReportingShares Kleinwort BensonEliteMultiAssetGrowth Fund– A USDAccumulatingReportingShares Kleinwort BensonEliteMultiAssetBalancedFund– A EURAccumulatingReportingShares Kleinwort BensonEliteMultiAssetBalancedFund– C GBPIncomeReportingShares* Kleinwort BensonEliteMultiAssetBalancedFund– B GBPIncomeReportingShares Kleinwort BensonEliteMultiAssetBalancedFund– A GBPReinvestReportingShares Kleinwort BensonEliteMultiAssetBalancedFund– (continued)

• • • • • • • • • classes were closed: effect fromWith 24th November2015,thefollowingshare Cell closures Directive Reportonpage78. Please refer InvestmentFundManager’s totheAlternative Investment FundManagersDirective 2011/61/EU(“AIFMD”). Limited, anon-EUAIFMforthepurposeofAlternative Kleinwort Benson(Channel Islands) InvestmentManagement to theAIFM.TheFundisanon-EUAIFwhoseAIFM investors intheEUunlessanAIFMDauthorisationisgranted from managinganyAIFsormarketingshares insuchfundsto (“AIFMs”) established in the EU and prohibits such managers focus is on regulating investment fund managers alternative investment funds (“AIFs”). Its and marketing of alternative States in 2013, covers the management, administration The Directive, whichwas implementedbyEUMember Directive InvestmentFundManagers The Alternative • • • • A EURAccumulatingReportingShares C GBPIncomeReportingShares A USDAccumulatingReportingShares C GBPIncomeReportingShares A GBPReinvestReportingShares C USDAccumulatingNon-ReportingShares C GBPIncomeReportingShares C GBPIncomeReportingShares C EURIncomeReportingShares A EURIncomeReportingShares C GBPIncomeReportingShares A GBPIncomeReportingShares C GBPIncomeReportingShares Kleinwort Benson Elite International EquityFund– Kleinwort BensonEliteInternational Kleinwort BensonEliteMultiAssetGrowth Fund– Kleinwort BensonEliteMultiAssetGrowth Fund– Kleinwort BensonElite Multi AssetConservativeFund – Kleinwort BensonElite Multi AssetConservativeFund – Kleinwort BensonElite Multi AssetConservativeFund – Kleinwort BensonEliteMulti-AssetBalancedFund– Kleinwort BensonEliteMulti-AssetBalancedFund– Kleinwort Benson Elite SterlingFixedIncomeFund– Kleinwort BensonEliteEURFixedIncomeFund– Kleinwort BensonEliteEURFixedIncomeFund– BondFund– Kleinwort BensonEliteInternational BondFund– Kleinwort BensonEliteInternational

detection offraudandotherirregularities. and hence for taking reasonable steps for the prevention and control,internal forsafeguarding theassetsofCompany documents. Theyare alsoresponsible forthesystemof by theInvestmentAssociationinMay2014andprincipal Practice: “FinancialStatementofAuthorisedFunds”issued (Class B)Rules,2013,theStatementofRecommended amended), TheAuthorisedCollectiveInvestmentSchemes Protection Law, ofInvestors(Bailiwick ofGuernsey) 1987(as ensure thatthefinancialstatements complywiththeLaw, The time thefinancialpositionofCompanyandenablethemto transactions anddisclosewithreasonable accuracyatany records that are sufficient to show and explain the Company’s The Directors are responsible forkeepingproper accounting • • • • these financialstatements,theDirectors are required to: profit orlossoftheCompanyforthatperiod.Inpreparing fair view of thestate affairs ofthe Company and of the statements unlesstheyare satisfiedthattheygiveatrueand company lawtheDirectors mustnotapprove thefinancial in the United Kingdom and Republic of Ireland”. Under 102 (FRS102),“TheFinancialReportingStandard applicable and applicable law) including Financial Reporting Standard Accounting Practice (UnitedKingdomAccounting Standards in accordance withUnitedKingdomGenerallyAccepted Directors haveelectedtoprepare thefinancialstatements statements foreachfinancialyear. Underthatlawthe The Lawrequires theDirectors toprepare financial law andregulations. and theFinancialStatementsinaccordance withapplicable The Directors are responsible forpreparing theAnnualReport Directors’ responsibilities Directors’ Report Company willcontinueinbusiness. basis, unlessitisinappropriate topresume thatthe prepare thefinancialstatementsongoingconcern disclosed andexplainedinthefinancialstatements; been followedsubjecttoanymaterialdepartures state whetherapplicableAccountingStandards have and prudent; make judgementsandestimatesthatare reasonable consistently; select suitableaccountingpoliciesandapplythem (continued) 2 December2016 Director: Director: accordance withtheprovisions ofSection249theLaw. This confirmationisgivenandshouldbeinterpreted in • • persons whoare aDirector confirmsthat: At thedateofapproval ofthefinancialstatementseach Company’s auditorisaware ofthatinformation. relevant audit information and to establish that the taken asaDirector tomakehim/herselfaware ofany the Director hastakenallstepshe/sheoughttohave and information ofwhichtheCompany’s auditorisunaware; so farastheDirector isaware, there isnorelevant audit James Tracey Mark Bright 17 Annual Report & Audited Financial Statements 18 Annual Report & Audited Financial Statements 2 December2016 Benson ElitePCCLimited BranchasCustodianofKleinwort Guernsey BNP ParibasSecuritiesServicesSCA- b) a) Elite PCCLimited(the“Company”): “Designated Manager”),hasmanagedKleinwortBenson Limited(the in ouropinion,JTCFundSolutions(Guernsey) In respect oftheyearended31July2016,westatethat Year Ended 31 July 2016 Kleinwort Benson Elite PCC Limited for the of to Shareholders the Report Custodian Schemes (ClassB)Rules2013. documents andtheAuthorisedCollectiveInvestment Law,1987; and by theProtection ofInvestors(BailiwickGuernsey) the principaldocuments,byschemeparticularsand investment and borrowing powers of theCompany by in accordance withtheprovisions oftheprincipal in accordance withthelimitationsimposedon adequately disclosed;thereasonableness ofsignificant circumstances andhavebeenconsistentlyapplied the accountingpoliciesare appropriate totheCompany’s fraud or error. This includes an assessment of: whether are free from material misstatement,whethercausedby give reasonable assurancethatthefinancialstatements and disclosures inthefinancialstatementssufficient to An auditinvolvesobtainingevidenceabouttheamounts Scope oftheauditfinancialstatements Board’s EthicalStandards forAuditors. standards require ustocomplywiththeAuditingPractices StandardsInternational on Auditing (UK and Ireland). Those financial statementsinaccordance withapplicablelawand Our responsibility istoaudit andexpress anopiniononthe and forbeingsatisfiedthattheygiveatruefairview. are responsible forthepreparation ofthefinancialstatements As explained more fully in the Directors’ Report, the Directors and auditor Respective responsibilities ofdirectors report, orfortheopinions we haveformed. Company’s members as a body for our audit work, for this responsibility toanyoneother thantheCompanyand extent permittedbylaw, wedonotacceptorassume an auditor’s report andfornootherpurpose.To thefullest members those matters weare required tostate to them in been undertakensothatwemightstatetotheCompany’s Law,(Guernsey) 2008(asamended).Ourauditworkhas a body, inaccordance withSection262ofTheCompanies This report ismadesolelytotheCompany’s members,as May 2014andtheprincipaldocuments. of AuthorisedFunds”issuedbytheInvestmentAssociationin Statement ofRecommendedPractice:“Financial Statements Accepted Accounting Practice, including FRS 102), the Kingdom AccountingStandards (UnitedKingdomGenerally been appliedintheirpreparation isapplicablelawandUnited portfolio changes.Thefinancialreporting frameworkthathas 20, theportfoliostatementsandsummary of material to Shareholders, thebalancesheet,related notes 1to return, thestatementofchangeinnetassetsattributable 2015 to31July2016whichcomprisethestatementoftotal Elite PCCLimited(“theCompany”)fortheyear1August We haveauditedthefinancialstatements of KleinwortBenson Limited Members of Kleinwort Benson Elite PCC Independent Auditor’s to Report the

• • In ouropinionthefinancialstatements: Opinion onfinancialstatements implications forourreport. material misstatementsorinconsistenciesweconsiderthe of performingtheaudit.Ifwebecomeaware ofanyapparent inconsistent with,theknowledgeacquired byasinthecourse is apparently materiallyincorrect, basedon,ormaterially financial statementsandtoidentifyanyinformationthat report toidentifymaterialinconsistencieswiththeaudited all the financial and non‑financial information in the annual presentation of thefinancial statements. In addition, we read accounting estimatesmadebytheDirectors; andtheoverall 2 December2016 St PeterPort,Guernsey, ChannelIslands Chartered Accountants Deloitte LLP • • • requires ustoreport toyouif,inouropinion: where Law, theCompanies(Guernsey) 2008(asamended) We have nothing to report in respect of the following matters by exception Matters onwhichweare required toreport • have beenproperly prepared in accordance with United year thenended; affairs asat31July2016 and ofitstotalreturn forthe give a true and fair view of the state of the Company’s we require forouraudit. we havenotreceived allthe informationandexplanations accounting records andreturns; or the financialstatements are notinagreement withthe proper accountingrecords havenotbeenkept;or Law,of theCompanies(Guernsey) 2008(asamended). have beenprepared inaccordance withtherequirements Kingdom GenerallyAcceptedAccountingPractice;and

19 Annual Report & Audited Financial Statements 20 Annual Report & Audited Financial Statements The notesonpages 28to61formanintegral partofthesefinancialstatements. a Statementof Total Recognised GainsandLosseshasnotbeen prepared. The Companyhasnorecognised gainsorlossesotherthan thosereflected inthe Statement ofTotal above;therefore Return The results abovederivefrom continuingoperations,exceptfortheTrojan Fundthatisbeingwoundup. For theyearended31July2016 to Shareholders Attributable Statement of Change in Net Assets For theyearended31July2016 Statement of Total Return Capital expenditure Net capitalgains/(losses) exchange ratechanges Effect offoreign attributable toshareholders Opening netassets Revenue Expenses Interest payableandsimilarcharges Amounts receivable onissues Amounts payableonredemptions Taxation Net revenue/(expense) before taxation accumulation shares Retained distributionon Net issues/(redemptions) Distributions Total return/(loss)before distribution financial period Net revenue/(expense) forthe shareholders from investmentactivities Change innetassetsattributableto pershareEarnings activities to shareholders from investment Change innetassetsattributable to shareholders Closing netassetsattributable

Notes Notes 13 13 14 4 3 5 6 7 8 219,192,586 227,027,165 19,802,438 (30,192,103) (36,722,978) 20,811,076 22,867,360 19,802,438 1,363,738 3,092,749 (2,805,532) (3,064,922) 5,902,541 6,530,875 1,191,348 2,756,028 (699,744) (336,721) 2016 2016 Total Total £ £ (4,260) Cellular Cellular Non- Non- 2016 2016 100 100 £ £ ------Fixed Income Fixed Income 30,104,089 32,272,882 1,136,319 (2,848,235) (5,379,477) (1,136,940) 2,531,242 1,040,264 1,136,319 1,816,382 1,123,147 Sterling Sterling 679,442 (347,029) Fund Fund 679,442 2016 2016 (13,172) £ £ 0.18 - - - - 81,826,137 (17,150,160) (14,469,462) Multi Asset Multi Asset 6,580,707 (1,440,765) 89,231,243 Balanced Balanced 6,754,605 2,260,440 7,469,928 2,680,698 6,580,707 819,675 (104,352) (889,221) 715,323 483,649 Fund Fund 2016 2016 £ £ 0.10 - - - 13,822,088 Conservative Conservative 13,998,901 Multi Asset (1,120,460) (1,517,000) Multi Asset 1,032,073 224,015 396,540 719,632 331,603 719,632 (241,274) (312,441) Fund Fund 2016 949,220 331,603 324,127 2016 £ £ (7,476) 0.07 - - - 55,423,201 Multi Asset Multi Asset 7,227,404 53,391,864 (5,442,210) (6,098,524) 7,293,377 1,239,977 7,573,437 7,227,404 Growth Growth 335,538 (904,439) (346,033) 280,060 246,143 Fund Fund 2016 2016 656,314 (55,478) £ £ 0.15 - - - 22,721,862 International International International International 21,690,713 (3,585,853) (3,712,475) 4,497,410 4,497,410 4,504,518 4,627,592 119,592 277,884 (386,787) (154,810) (130,182) Equity Equity 126,622 668,923 123,074 Fund Fund 2016 2016 (4,252) £ £ 0.33 - - 3,403,680 4,343,434 Currency Currency (930,412) (965,509) (27,145) Fund Fund 2016 35,097 2016 GBP 17,619 GBP (9,342) (9,342) (9,342) (9,526) (9,526) (0.00) £ £ 184 ------4,002,318 4,758,171 Currency Currency (716,253) (732,764) (39,600) (39,600) (39,600) (31,642) (31,642) (31,642) Fund Fund 2016 16,511 2016 EUR EUR (7,958) (0.01) € € ------1,141,448 1,443,058 Currency Currency (284,609) (284,609) (17,001) (17,001) (17,001) (21,546) (17,420) (17,420) Fund Fund 2016 2016 USD USD US$ US$ 4,126 (0.01) 419 ------International International International International 3,305,442 3,880,831 117,949 (813,007) (813,007) 111,743 119,669 (120,287) 119,669 183,668 111,683 239,956 111,743 (55,455) Bond Bond Fund Fund 2016 2016 £ £ 0.06 60 - - - - 4,735,076 4,861,502 (125,831) (246,222) 174,472 (170,296) Income Income 120,391 174,561 169,701 172,592 (73,442) Fixed Fixed 2016 2016 70,551 EUR EUR (1,880) € € 0.04 (595) (595) (89) - - - 367,133 (144,373) (144,373) 481,631 Global Global Trojan Trojan 29,875 Fund Fund 2016 29,875 2016 37,236 29,875 (7,425) (7,361) (7,361) £ £ 0.04 64 ------to shareholders Closing netassetsattributable shareholders from investmentactivities Change innetassetsattributableto accumulation shares Retained distributionon Net issues/(redemptions) Amounts payableonredemptions Amounts receivable onissues exchange ratechanges Effect offoreign attributable toshareholders Opening netassets pershareEarnings activities to shareholders from investment Change innetassetsattributable Distributions Total return/(loss)before distribution financial period Net revenue/(expense) forthe Taxation Net revenue/(expense) before taxation Interest payableandsimilarcharges Expenses Revenue Capital expenditure Net capitalgains/(losses)

Notes Notes 13 13 14 8 7 6 5 4 3 219,192,586 227,027,165 19,802,438 (30,192,103) (36,722,978) 22,867,360 20,811,076 19,802,438 3,092,749 1,363,738 (3,064,922) (2,805,532) 1,191,348 6,530,875 2,756,028 5,902,541 (336,721) (699,744) 2016 2016 Total Total £ £ (4,260) Cellular Cellular Non- Non- 2016 2016 100 100 £ £ ------Fixed Income Fixed Income 30,104,089 32,272,882 1,136,319 (2,848,235) (5,379,477) (1,136,940) 2,531,242 1,816,382 1,123,147 1,136,319 1,040,264 Sterling Sterling 679,442 (347,029) Fund Fund 679,442 2016 2016 (13,172) £ £ 0.18 - - - - 81,826,137 (14,469,462) (17,150,160) Multi Asset Multi Asset 6,580,707 (1,440,765) 89,231,243 Balanced Balanced 7,469,928 2,260,440 6,754,605 6,580,707 2,680,698 819,675 (889,221) (104,352) 715,323 483,649 Fund Fund 2016 2016 £ £ 0.10 - - - 13,822,088 Conservative Conservative 13,998,901 Multi Asset (1,120,460) (1,517,000) Multi Asset 1,032,073 224,015 719,632 396,540 719,632 331,603 (312,441) (241,274) Fund Fund 2016 324,127 331,603 949,220 2016 £ £ (7,476) 0.07 - - - 55,423,201 Multi Asset Multi Asset 7,227,404 53,391,864 (5,442,210) (6,098,524) 7,573,437 1,239,977 7,293,377 7,227,404 Growth Growth 335,538 (904,439) (346,033) 280,060 246,143 Fund Fund 2016 2016 656,314 (55,478) £ £ 0.15 - - - 22,721,862 International International International International 21,690,713 (3,585,853) (3,712,475) 4,497,410 4,497,410 4,627,592 4,504,518 119,592 277,884 (130,182) (154,810) (386,787) Equity Equity 126,622 123,074 668,923 Fund Fund 2016 2016 (4,252) £ £ 0.33 - - 3,403,680 4,343,434 Currency Currency (930,412) (965,509) (27,145) Fund Fund 2016 35,097 2016 GBP 17,619 GBP (9,342) (9,342) (9,342) (9,526) (9,526) (0.00) £ £ 184 ------4,002,318 4,758,171 Currency Currency (716,253) (732,764) (39,600) (39,600) (39,600) (31,642) (31,642) (31,642) Fund Fund 2016 16,511 2016 EUR EUR (7,958) (0.01) € € ------1,141,448 1,443,058 Currency Currency (284,609) (284,609) (17,001) (17,001) (17,001) (17,420) (17,420) (21,546) Fund Fund 2016 2016 USD USD US$ US$ 4,126 (0.01) 419 ------International International International International 3,305,442 3,880,831 117,949 (813,007) (813,007) 119,669 111,743 (120,287) 119,669 239,956 111,743 111,683 183,668 (55,455) Bond Bond Fund Fund 2016 2016 £ £ 0.06 60 - - - - 4,735,076 4,861,502 (125,831) (246,222) 174,472 (170,296) Income Income 120,391 169,701 172,592 174,561 (73,442) Fixed Fixed 2016 2016 70,551 EUR EUR (1,880) € € 0.04 (595) (595) (89) - - - 367,133 (144,373) (144,373) 481,631 Global Global Trojan Trojan 29,875 Fund Fund 2016 29,875 2016 29,875 37,236 (7,361) (7,361) (7,425) £ £ 0.04 64 ------21 Annual Report & Audited Financial Statements 22 Annual Report & Audited Financial Statements The notesonpages28to61form anintegralpartofthesefinancialstatements. For theyearended31July2015 to Shareholders Attributable Statement of Change in Net Assets For theyearended31July2015 Statement of Total Return Capital expenditure Net capitalgains/(losses) exchange ratechanges Effect offoreign attributable toshareholders Opening netassets Expenses Revenue Amounts receivable onissues Interest payableandsimilarcharges Taxation Net revenue/(expense) before taxation Amounts payableonredemptions Distributions Total return/(loss)before distribution financial period Net revenue/(expense) forthe Net issues/(redemptions) pershareEarnings activities to shareholders from investment Change innetassetsattributable accumulation shares Retained distributionon shareholders from investmentactivities Change innetassetsattributableto to shareholders Closing netassetsattributable

Notes Notes 13 13 14 4 3 6 5 7 8 262,601,513 227,027,165 (55,431,902) (45,023,228) 10,409,667 10,408,674 12,250,173 (3,213,773) (2,657,354) 6,068,596 2,850,377 2,661,226 9,592,819 9,592,819 (748,202) (820,720) (189,151) 2015 2015 Total Total 604,263 £ £ (4,446) Cellular Cellular Non- Non- 2015 2015 100 100 £ £ ------Fixed Income Fixed Income 38,291,230 32,272,882 (9,415,089) (6,640,368) (1,444,311) 2,774,721 1,019,383 1,448,260 1,448,260 2,066,331 1,439,661 Sterling Sterling (392,713) Fund Fund 622,020 622,020 2015 2015 £ £ (8,599) 2.43 - - - - 105,687,403 (23,873,887) (20,443,711) Multi Asset Multi Asset (1,703,410) 89,231,243 Balanced Balanced 3,747,811 2,242,761 4,225,410 3,811,544 3,430,176 3,811,544 (413,866) 539,351 477,599 Fund Fund 2015 2015 (61,752) 176,007 £ £ 0.05 - - - Conservative Conservative 18,791,263 13,998,901 Multi Asset Multi Asset (6,670,320) (5,078,885) 1,591,435 188,218 (301,785) (326,343) Fund Fund 401,526 328,637 328,637 424,648 324,907 2015 2015 98,305 98,305 £ £ (3,730) 0.03 - - - Multi Asset Multi Asset (1,039,038) 59,642,202 53,391,864 (9,934,446) (8,147,922) 1,805,236 1,200,626 1,953,228 1,809,243 1,786,524 1,809,243 Growth Growth (143,985) 161,588 147,992 Fund Fund 2015 2015 (13,596) 88,341 £ £ 0.03 - - - International International International International 20,853,292 21,690,713 (2,816,571) (2,539,746) 3,377,167 3,385,617 3,378,008 3,377,167 (397,770) Equity Equity 276,825 492,989 Fund Fund 2015 2015 (98,577) 90,968 (4,251) (7,609) £ £ 0.20 (841) - - - 4,466,251 4,343,434 Currency Currency (312,544) (113,306) 199,238 (27,266) Fund Fund 2015 2015 17,755 GBP GBP (9,511) (9,511) (9,511) (9,511) (9,511) £ £ (0.00) ------4,928,158 4,758,171 Currency Currency (295,501) (136,807) 158,694 (33,180) (33,180) (33,180) (32,684) (32,365) (32,365) Fund Fund 2015 2015 EUR EUR € € (0.01) (815) 319 ------(1,224,576) (1,039,239) 2,504,717 1,443,058 Currency Currency 185,337 (22,420) (22,420) (22,420) (23,222) (22,333) (22,333) Fund Fund 2015 2015 USD USD US$ US$ (0.01) 889 (87) ------International International International International 4,149,955 3,880,831 (419,463) (419,463) (153,870) 151,697 157,821 157,746 152,512 157,746 (62,912) Bond Bond Fund Fund 2015 2015 57,678 (1,358) (1,358) £ £ 0.03 (75) - - - - (1,315,870) (1,165,660) 5,958,658 4,861,502 (232,822) Income Income 150,210 151,532 238,474 238,313 301,326 234,440 (84,646) Fixed Fixed 2015 2015 68,504 68,504 EUR EUR (3,873) € € 0.05 (161) - - - (126,651) (126,651) (126,651) (120,256) 608,282 481,631 Global Global Trojan Trojan Fund Fund 2015 2015 (6,969) (6,395) (6,395) £ £ (0.15) 574 ------to shareholders Closing netassetsattributable shareholders from investmentactivities Change innetassetsattributableto accumulation shares Retained distributionon Net issues/(redemptions) Amounts payableonredemptions Amounts receivable onissues exchange ratechanges Effect offoreign attributable toshareholders Opening netassets pershareEarnings activities to shareholders from investment Change innetassetsattributable Distributions Total return/(loss)before distribution financial period Net revenue/(expense) forthe Taxation Net revenue/(expense) before taxation Interest payableandsimilarcharges Expenses Revenue Capital expenditure Net capitalgains/(losses)

Notes Notes 13 13 14 8 7 6 5 4 3 227,027,165 262,601,513 (45,023,228) (55,431,902) 12,250,173 10,409,667 10,408,674 (2,657,354) (3,213,773) 9,592,819 9,592,819 2,661,226 2,850,377 6,068,596 (189,151) (820,720) (748,202) 2015 2015 Total Total 604,263 £ £ (4,446) Cellular Cellular Non- Non- 2015 2015 100 100 £ £ ------Fixed Income Fixed Income 32,272,882 38,291,230 (6,640,368) (9,415,089) (1,444,311) 2,774,721 2,066,331 1,439,661 1,448,260 1,448,260 1,019,383 Sterling Sterling (392,713) Fund Fund 622,020 622,020 2015 2015 £ £ (8,599) 2.43 - - - - 105,687,403 (20,443,711) (23,873,887) Multi Asset Multi Asset (1,703,410) 89,231,243 Balanced Balanced 3,811,544 4,225,410 2,242,761 3,747,811 3,811,544 3,430,176 (413,866) 477,599 539,351 Fund Fund 2015 2015 (61,752) 176,007 £ £ 0.05 - - - Conservative Conservative 13,998,901 18,791,263 Multi Asset Multi Asset (5,078,885) (6,670,320) 1,591,435 188,218 (326,343) (301,785) Fund Fund 424,648 324,907 328,637 328,637 401,526 2015 2015 98,305 98,305 £ £ (3,730) 0.03 - - - Multi Asset Multi Asset (1,039,038) 59,642,202 53,391,864 (8,147,922) (9,934,446) 1,809,243 1,953,228 1,200,626 1,805,236 1,809,243 1,786,524 Growth Growth (143,985) 147,992 161,588 Fund Fund 2015 2015 (13,596) 88,341 £ £ 0.03 - - - International International International International 21,690,713 20,853,292 (2,539,746) (2,816,571) 3,377,167 3,377,167 3,378,008 3,385,617 (397,770) Equity Equity 276,825 492,989 Fund Fund 2015 2015 (98,577) 90,968 (7,609) (4,251) £ £ 0.20 (841) - - - 4,343,434 4,466,251 Currency Currency (113,306) (312,544) 199,238 (27,266) Fund Fund 2015 2015 17,755 GBP GBP (9,511) (9,511) (9,511) (9,511) (9,511) £ £ (0.00) ------4,758,171 4,928,158 Currency Currency (136,807) (295,501) 158,694 (33,180) (33,180) (33,180) (32,365) (32,365) (32,684) Fund Fund 2015 2015 EUR EUR € € (0.01) (815) 319 ------(1,039,239) (1,224,576) 1,443,058 2,504,717 Currency Currency 185,337 (22,420) (22,420) (22,420) (22,333) (22,333) (23,222) Fund Fund 2015 2015 USD USD US$ US$ (0.01) 889 (87) ------International International International International 3,880,831 4,149,955 (419,463) (419,463) (153,870) 151,697 152,512 157,746 157,746 157,821 (62,912) Bond Bond Fund Fund 2015 2015 57,678 (1,358) (1,358) £ £ 0.03 (75) - - - - (1,165,660) (1,315,870) 4,861,502 5,958,658 (232,822) Income Income 150,210 301,326 234,440 238,313 238,474 151,532 (84,646) Fixed Fixed 2015 2015 68,504 68,504 EUR EUR (3,873) € € 0.05 (161) - - - (126,651) (126,651) (126,651) (120,256) 481,631 608,282 Global Global Trojan Trojan Fund Fund 2015 2015 (6,395) (6,395) (6,969) £ £ (0.15) 574 ------23 Annual Report & Audited Financial Statements 24 Annual Report & Audited Financial Statements The notesonpages 28to61formanintegral partofthesefinancialstatements. Date Director: Director: its behalfby: The financialstatementsonpages20to61were approved bytheBoard ofDirectors on2December2016andare signedon As at31July2016 Sheet Balance Shares B GBPAccumulatingNon-reporting Shares B EURAccumulatingNon-reporting Shares B USDAccumulatingNon-reporting A EURAccumulatingReportingShares Shares A USDAccumulatingNon-reporting A USDAccumulatingReportingShares C GBPIncomeReportingShares B GBP/EURIncomeReportingShares A GBPReinvestReportingShares A GBP/EURIncomeReportingShares Net assetvalueperParticipatingShare of RedeemableParticipatingShares Net assetsattributabletoholders of Managementshares Net assetsattributabletoholders Total Liabilities Other creditors Distributions payable Bank overdrafts Creditors Liabilities Total Assets Cash andbankbalances Debtors Current assets Investments Fixed assets Assets 2 December2016 James Tracey Mark Bright

Notes 13 10 16 8 2 9 219,192,486 220,244,879 195,157,807 18,787,253 6,299,819 (1,052,293) (325,639) (726,654) 2016 Total £ 100 - Cellular Non- 2016 £ 100 100 100 ------Fixed Income 30,104,089 30,392,432 29,977,608 Sterling 319,226 Fund (288,343) (259,313) 2016 95,598 (29,030) £ 11.21 0.97 3.31 ------82,285,509 71,778,749 81,826,137 Multi Asset Balanced 5,036,307 5,470,453 Fund (459,372) (134,042) (325,330) 2016 £ 1.20 1.47 1.52 1.52 1.13 1.16 1.10 1.19 1.19 1.20 - - Conservative 13,822,088 12,721,830 13,874,370 Multi Asset 1,087,965 Fund 2016 (52,282) (20,599) (31,683) 64,575 £ 1.11 1.05 1.09 1.05 1.08 1.06 1.04 - - - - - 55,423,201 55,580,981 50,627,245 Multi Asset 4,649,430 Growth 304,306 (157,780) Fund 2016 (88,343) (69,437) £ 1.28 1.21 1.28 1.37 1.38 1.24 1.27 1.15 - - - - International International 22,721,862 22,766,617 22,541,871 Equity 192,246 Fund 2016 32,500 (44,755) (36,522) £ (8,233) 1.76 1.42 1.41 1.75 ------3,403,680 3,406,314 3,405,236 Currency Fund 2016 GBP £ 1,078 (2,634) (2,634) 0.99 0.99 ------4,002,318 4,005,161 4,005,153 Currency Fund 2016 EUR € (2,843) (2,843) 0.97 0.97 8 ------1,141,448 1,143,426 1,142,987 Currency Fund 2016 USD US$ (1,978) (1,978) 0.95 0.95 439 ------International International 3,305,442 3,310,181 3,236,064 Bond Fund 2016 41,948 32,169 £ (4,739) (4,739) 0.99 0.99 ------4,735,076 4,780,126 4,656,296 Income Fixed 2016 EUR 34,574 89,256 (45,050) (38,775) € (6,275) 1.00 1.00 ------Trojan 367,133 367,694 352,693 Fund 2016 15,001 £ 0.61 (561) (561) ------Shares B GBPAccumulatingNon-reporting Shares B EURAccumulatingNon-reporting Shares B USDAccumulatingNon-reporting A EURAccumulatingReportingShares Shares A USDAccumulatingNon-reporting A USDAccumulatingReportingShares C GBPIncomeReportingShares B GBP/EURIncomeReportingShares A GBPReinvestReportingShares A GBP/EURIncomeReportingShares Net assetvalueperParticipatingShare of RedeemableParticipatingShares Net assetsattributabletoholders of Managementshares Net assetsattributabletoholders Total Liabilities Other creditors Distributions payable Bank overdrafts Creditors Liabilities Total Assets Cash andbankbalances Debtors Current assets Investments Fixed assets Assets

Notes 13 10 16 8 2 9 220,244,879 195,157,807 219,192,486 18,787,253 6,299,819 (1,052,293) (325,639) (726,654) 2016 Total £ 100 - Cellular Non- 2016 £ 100 100 100 ------Fixed Income 30,104,089 30,392,432 29,977,608 Sterling 319,226 Fund (288,343) (259,313) 2016 95,598 (29,030) £ 11.21 0.97 3.31 ------81,826,137 82,285,509 71,778,749 Multi Asset Balanced 5,036,307 5,470,453 Fund (459,372) (134,042) (325,330) 2016 £ 1.20 1.47 1.52 1.52 1.13 1.16 1.10 1.19 1.19 1.20 - - Conservative 13,822,088 12,721,830 13,874,370 Multi Asset 1,087,965 Fund 2016 (52,282) (20,599) (31,683) 64,575 £ 1.11 1.05 1.09 1.05 1.08 1.06 1.04 - - - - - 55,423,201 55,580,981 50,627,245 Multi Asset 4,649,430 Growth 304,306 (157,780) Fund 2016 (88,343) (69,437) £ 1.28 1.21 1.28 1.37 1.38 1.24 1.27 1.15 - - - - International International 22,721,862 22,766,617 22,541,871 Equity 192,246 Fund 2016 32,500 (44,755) (36,522) £ (8,233) 1.42 1.41 1.75 1.76 ------3,403,680 3,406,314 3,405,236 Currency Fund 2016 GBP £ 1,078 (2,634) (2,634) 0.99 0.99 ------4,002,318 4,005,161 4,005,153 Currency Fund 2016 EUR € (2,843) (2,843) 0.97 0.97 8 ------1,141,448 1,143,426 1,142,987 Currency Fund 2016 USD US$ (1,978) (1,978) 0.95 0.95 439 ------International International 3,310,181 3,236,064 3,305,442 Bond Fund 2016 41,948 32,169 £ (4,739) (4,739) 0.99 0.99 ------4,780,126 4,656,296 4,735,076 Income Fixed 2016 EUR 34,574 89,256 (45,050) (38,775) € (6,275) 1.00 1.00 ------Trojan 367,694 352,693 367,133 Fund 2016 15,001 £ 0.61 (561) (561) ------25 Annual Report & Audited Financial Statements 26 Annual Report & Audited Financial Statements The notesonpages28to61formanintegralpartofthesefinancial statements. The cellassetsandliabilitiesincludetheindividualcells’proportionate interest inanysubsidiariesthrough whichitinvests. As at31July2015 Balance Sheet Bank overdrafts Creditors Debtors Investments Fixed assets Assets A GBP/EURIncomeReportingShares Net assetvalueperParticipatingShare of RedeemableParticipatingShares Net assetsattributabletoholders Net assetsattributabletoholdersofManagementshares Total Liabilities Other creditors Distributions payable Liabilities Total Assets Cash andbankbalances Current assets B GBPAccumulatingNon-reporting Shares B EURAccumulatingNon-reporting Shares B USDAccumulatingNon-reporting Shares A EURAccumulatingReportingShares A USDAccumulatingNon-reporting Shares A USDAccumulatingReportingShares B GBP/EURIncomeReportingShares A GBPReinvestReportingShares (continued)

Notes 16 10 13 9 8 2 207,721,375 228,943,333 227,027,065 19,861,485 (1,916,168) 1,360,473 (840,670) (664,582) (410,916) 2015 Total £ 100 Cellular Non- 2015 £ 100 100 100 ------Fixed Income 31,301,188 32,647,381 32,272,882 Sterling Fund (374,499) (337,420) 2015 387,968 958,225 £10.94 (37,079) £ £0.94 3.13 ------Multi Asset 89,975,207 83,621,296 89,231,243 Balanced 5,881,167 Fund (743,964) (338,768) (200,524) (204,672) 2015 472,744 £ £ £ £1.13 $1.11 $1.12 $1.12 £1.40 £1.45 £1.45 1.12 1.08 1.05 - Conservative 13,998,901 Multi Asset 13,240,972 14,117,891 (118,990) Fund 2015 814,811 (63,034) (44,440) (11,516) 62,108 £ £ £ £1.06 $1.03 £1.03 £1.10 £1.06 0.97 1.02 1.02 - - - Multi Asset 53,391,864 53,832,152 50,429,390 3,105,003 Growth (440,288) (343,191) Fund 297,759 2015 (46,063) (51,034) £ £ £ £1.18 $1.15 $1.17 £1.18 £1.27 £1.27 1.00 1.13 1.11 - - International International 21,690,713 21,794,554 21,624,964 Equity (103,841) Fund 2015 142,930 (37,379) (65,956) 26,660 £ £1.41 £1.15 £1.14 1.40 (506) ------4,344,951 Currency 4,343,434 4,346,645 Fund 2015 GBP £ 1,694 (3,211) (3,211) £0.99 0.99 ------4,761,747 Currency 4,758,171 4,762,290 Fund 2015 EUR € (4,119) (4,119) £ 0.98 543 0.98 ------1,445,380 Currency 1,443,058 1,446,055 Fund 2015 USD US$ (2,997) (2,997) $0.96 0.96 675 ------International International 3,880,831 3,887,218 3,578,601 Bond Fund 2015 281,361 27,256 £ (6,387) (6,387) £0.92 0.92 ------4,861,502 5,030,242 4,906,044 Income (168,740) (109,798) Fixed 2015 117,889 EUR (50,323) € (8,619) £ 6,309 1.00 1.00 ------Trojan Fund 481,631 482,312 451,435 2015 30,877 £ 0.57 (681) (681) ------B GBPAccumulatingNon-reporting Shares B EURAccumulatingNon-reporting Shares B USDAccumulatingNon-reporting Shares A EURAccumulatingReportingShares A USDAccumulatingNon-reporting Shares A USDAccumulatingReportingShares B GBP/EURIncomeReportingShares A GBPReinvestReportingShares A GBP/EURIncomeReportingShares Net assetvalueperParticipatingShare of RedeemableParticipatingShares Net assetsattributabletoholders Net assetsattributabletoholdersofManagementshares Total Liabilities Other creditors Distributions payable Bank overdrafts Creditors Liabilities Total Assets Cash andbankbalances Debtors Current assets Investments Fixed assets Assets

Notes 13 10 16 8 2 9 228,943,333 207,721,375 227,027,065 19,861,485 (1,916,168) 1,360,473 (840,670) (664,582) (410,916) 2015 Total £ 100 Cellular Non- 2015 £ 100 100 100 ------Fixed Income 32,272,882 32,647,381 31,301,188 Sterling Fund (374,499) (337,420) 2015 958,225 387,968 £10.94 (37,079) £ £0.94 3.13 ------Multi Asset 89,231,243 89,975,207 83,621,296 Balanced 5,881,167 Fund (743,964) (338,768) (200,524) (204,672) 2015 472,744 £ £ £ £1.13 $1.11 $1.12 $1.12 £1.40 £1.45 £1.45 1.12 1.08 1.05 - Conservative 13,998,901 Multi Asset 14,117,891 13,240,972 (118,990) Fund 2015 814,811 (63,034) (44,440) (11,516) 62,108 £ £ £ £1.06 $1.03 £1.03 £1.10 £1.06 0.97 1.02 1.02 - - - Multi Asset 53,391,864 53,832,152 50,429,390 3,105,003 Growth (440,288) (343,191) Fund 297,759 2015 (46,063) (51,034) £ £ £ £1.18 $1.15 $1.17 £1.18 £1.27 £1.27 1.00 1.13 1.11 - - International International 21,624,964 21,690,713 21,794,554 Equity (103,841) Fund 2015 142,930 (37,379) (65,956) 26,660 £ £1.41 £1.15 £1.14 1.40 (506) ------4,344,951 Currency 4,343,434 4,346,645 Fund 2015 GBP £ 1,694 (3,211) (3,211) £0.99 0.99 ------4,761,747 Currency 4,758,171 4,762,290 Fund 2015 EUR € (4,119) (4,119) £ 0.98 0.98 543 ------1,445,380 Currency 1,446,055 1,443,058 Fund 2015 USD US$ (2,997) (2,997) $0.96 0.96 675 ------International International 3,887,218 3,578,601 3,880,831 Bond Fund 2015 281,361 27,256 £ (6,387) (6,387) £0.92 0.92 ------5,030,242 4,906,044 4,861,502 Income (168,740) (109,798) Fixed 2015 117,889 EUR (50,323) € (8,619) £ 6,309 1.00 1.00 ------Trojan Fund 482,312 451,435 481,631 2015 30,877 £ 0.57 (681) (681) ------27 Annual Report & Audited Financial Statements 28 Annual Report & Audited Financial Statements “IA SORP”)inMay, 2014. (previously theInvestmentManagementAssociation), (the Authorised Funds”,issuedby theInvestmentAssociation, of Recommended Practice “Financial Statements of UK Republic ofIreland, andinaccordance withtheStatement Standard applicableintheUnitedKingdomand Standards, includingFRS102,theFinancialReporting accordance withapplicableUnitedKingdomAccounting These financialstatementshavebeenprepared in Basis ofpreparation material inrelation totheCompany’s financialstatements: consistently indealingwithitemswhichare considered The followingaccountingpolicieshavebeenapplied 2. Accounting policies • • • • • • • • • • • 2016 are asfollows: terms inthefuture. Theactive Cellsinissueasat31July create newCellswithdifferent investmentobjectivesand under theNewRules.TheCompanyretains theoptionto elected tobetreated asanauthorisedinvestmentscheme by the provisionsCompany governed of the Law and has The Companyisanopen-endedinvestmentProtected Cell Court, AdmiralPark,StPeterPort,Guernsey, GY12HT. The registered office oftheCompanyisGround Floor, Dorey Law,(Bailiwick ofGuernsey) 1987,(asamended). as aClassBSchemeunderTheProtection ofInvestors Financial Services Commission (“GFSC”) by the Guernsey on30September2004andisauthorised liability inGuernsey The Companywasregistered asacompanywith limited activity 1. Company information and principal For the year 31 ended July 2016 Notes to the Financial Statements of theParticipatingShare share class). available fordistributionwillbepaidtotheShareholders as andwhentheseassetsare realised theproceeds Share share class of this Fund holds illiquid assets and Kleinwort BensonEliteTrojan Fund(TheParticipating Kleinwort BensonEliteEURFixedIncomeFund BondFund Kleinwort BensonEliteInternational Kleinwort BensonEliteUSDollarCurrency Fund Kleinwort BensonEliteEURCurrency Fund Kleinwort BensonEliteGBPCurrency Fund EquityFund Kleinwort BensonEliteInternational Kleinwort BensonEliteMultiAssetGrowth Fund Kleinwort BensonEliteSterlingFixedIncomeFund Kleinwort BensonEliteMultiAssetBalancedFund Kleinwort BensonEliteMultiAssetConservativeFund • accordance withIASORP exceptforthebelow: As faraspossibletheseaccountshavebeenprepared in Departure from IASORP restated. at 31 July 2016 and as such the accounts have not been affected thebrought forward reported financialpositionas The transitiontoFRS102andtheIASORP2014hasnot Transition toFRS102andtheIASORP2014 below. Any departure from theIASORPisdetailedinnotes for therevaluation ofinvestments. prepared underthehistoricalcostconvention,asmodified 102 is1August2014.Thesefinancialstatementshavebeen in these financial statements. The date of transition to FRS or after1January, 2015andisbeingappliedforthefirsttime FRS 102ismandatoryforaccountingperiodsbeginningon • • Fund, Multi Asset Conservative Fund, International Bond Fund, MultiAssetConservativeInternational statements were made. share classes therefore no adjustments to the financial total netassetvalueoftheCompanyorindividualcell bid priceadjustmenttohaveamaterialimpactonthe bid basis.TheDirectors, however, donotconsiderthe that are IASORPcomplianthastobeprepared ona underlying investments,whereas financialstatements CISE announcements are on a mid pricing basis of charges. Netassetvaluesreported tothemarketvia to theCompany’s holdingexcludingexit and entry prices atwhichitwouldbepossibletoredeem oradd sources where available.Pricesgenerallyreflect the from investmentadvisers, fundmanagersandother valued by the Directors based upon prices received for thequotedinvestment.Unquotedinvestmentsare sheet date,orifthisisnotavailable,thelatestbidprice reference tothebidmarketpricerulingatbalance in linewithpriorperiods. have therefore onlydisclosedtheNAV perShare Class level of disclosure would not be practical. The Directors to the number of share classes per Cell, disclosing this Appendix AoftheIASORPhasnotbeenprepared. Due against revenue. the IASORPthatrequires expensesonlytobecharged as ‘Otherlosses–expenses’.Thisisadeparture from to capitalandare shownin theStatementofTotal Return Fund andEURFixedIncomehavebeencharged All expensesinrespect of theSterlingFixedIncome For quotedinvestments, fair valueisdeterminedby A comparativetableasrequired byandsetoutin no debtorsorprepayments dueinmore thanoneyear. measured attheundiscountedreceivable amount.There are well ascashatbank,thatare receivable withinoneyearare value asdescribedbelow. Debtorsandprepayments, as Investments andforward currency contracts are heldatfair transaction costs). are initiallymeasured atfairvalue(whichisnormallycostless which are classifiedatfair valuethrough profit or loss,which All financialassetsare initiallymeasured atcost,exceptthose Financial Assets *The netcurrent assetpositionis derivedasfollows: • • • • • inter alia,thefollowingfactors: The Directors havearrivedatthisopinionbyconsidering, basis. on thegoingconcern For thisreason thefinancialstatementshavebeenprepared continue inoperationalexistencefortheforeseeable future. expectation thattheCompanyhasadequateresources to In theopinionofDirectors, there isareasonable Going concern are inEuros. the Euro Currency FundandEURFixedIncomewhich USD Currency Fundwhichare inUnitedStatesdollarand and presentational currency, exceptforKleinwortBenson is showninpoundssterling,beingtheCompany’s functional The financialinformationshowninthestatements Functional andpresentational currency Notes to the Financial Statements Less investmentassets Less totalliabilities Total assets Cell was31October2016. being realised. Themost recent valuationdateofthe the KBEliteTrojan Fundiscurrently intheprocess of flows associatedwithredemption requests; and individual Cellsare wellplaced tomeetallfuture cash relevant dealing day. On this basis, the Company and settlement periodofuptosevendaysfollowingthe the CellShares dealonaweekly basisandhavea requirements; to meetfuture redemption requests andotherliquidity trade dateandtherefore willhavesufficient resources are abletobesettledwithin three businessdaysofthe the Companyholdsalargeamountofinvestmentswhich Directors cansuspendalldealings; in theeventofsignificantcellshare redemptions the £24,034,779* (2015:£19,305,790)); expenses (net current asset position at 31 July 2016 of the Companyhassufficient liquiditytomeetallon-going (£195,157,807) £220,244,879 £24,034,779 (£1,052,293) determined byreference tothebidmarketpricerulingat through profit orloss.Forquotedinvestments,fairvalueis Investments are classified asfinancialassetsfairvalued Investments discharged, cancelledorexpires. extinguished, thatiswhenthecontractualobligation Financial liabilitiesare derecognised whentheliability is and measured atundiscountedamountpayable. All financial liabilities are due within one year at recognition Financial liabilitiesincludecreditors andaccruedexpenses. Financial Liabilities third partywithoutimposingadditionalrestrictions. practical abilitytounilaterallyselltheassetanunrelated the assethasbeentransferred toanotherpartywhohasthe some significant risks and rewards of ownership, control of transferred toanotherpartyor(c)despitehavingretained or (b)substantiallyalltherisks and rewards ofownership are rights tothecashflowsfrom theassetexpire orare settled Financial assets are derecognised when (a)the contractual this datewastoestimatethefair valueoftheinvestments. portfolio was 31July2016.The intention ofthevaluation at The valuationpointoftheinvestmentsinCompany’s in theStatementofTotal Return. and unrealised gainsandlossesoninvestmentsare reflected end andthecarryingcostsofinvestmentsheld.Allrealised are calculatedbyreference tothecarryingvalueatyear accounted for on the trade date. Unrealised gains and losses investment sold. The purchase and sales of investments are and theaveragecostattributabletoproportion ofthe investments are calculated by reference to the sale proceeds Realised gainsandlossesarisingonthedisposalof impact £143,577(2015:£172,598)). the financial statements were made. (Total Net Asset Value or individualcellshare classestherefore noadjustmentsto material impactonthetotalnetassetvalueofCompany however, do not considerthebidpriceadjustmenttohavea compliant hastobeprepared onabidbasis.TheDirectors, investments, whereas financial statementsthatare IASORP announcements are ona midpricingbasisofunderlying charges. Netassetvaluesreported tothemarketviaCISE or addtotheCompany’s holdingexcludingexitandentry reflect thepricesatwhich itwouldbepossibleto redeem managers and other sources where available. Prices generally upon pricesreceived from investmentadvisers,fund Unquoted investmentsare valuedbytheDirectors based price forthequotedinvestment. balance sheetdate,orifthisisnotavailable,thelatestbid (continued) 29 Annual Report & Audited Financial Statements 30 Annual Report & Audited Financial Statements other cellsare chargedagainstrevenue. ‘Other losses-capitalexpenses’.Expensesinrespect ofall capital andare shownintheStatementofTotal as Return Benson EUR Fixed Income Fund have been charged to BondFund andKleinwort Kleinwort BensonInternational Fund, Kleinwort Benson Elite Multi Asset Conservative Fund, respect oftheKleinwortBensonEliteSterlingFixedIncome Expenses are accrued on aday-to-daybasis. All expenses in Expenses ex-dividend basisandgross ofwithholdingtaxes. accrued onaday-to-daybasis.Dividendsare accruedonan Bond interest and interest on deposits and call accounts are Income assets attributabletoshareholders. of theyearare recognised inthestatementofchangenet assets ofthesecellsatratesrulingthebeginningandend arising betweenthetranslationintopoundssterlingofnet of exchange ruling at the year end. Exchange differences pounds sterling are translated into pounds sterling at the rates The balancesheetsofthosecellswhosebasecurrency isnot arising are includedinthestatement oftotalreturn. of exchangerulingonthetransactiondate.Differences thus Transactions inforeign currencies are translatedattherate the rate of exchange ruling at the balance sheet date. pounds sterling,euros or USdollars,asappropriate, at Foreign currency assetsandliabilitiesare translatedinto Foreign exchange included inthestatementoftotalreturn. open future positions,callandput optionsatyear-end are at afuture date.Unrealised gainsandlossesarisingonthe obligation toselltheunderlyingsecurityataspecifiedprice date. Buyingaputoptiongivesthebuyerrightbutnotan buy theunderlyingsecurityataspecifiedpricefuture call option gives the buyer the right but not an obligation to underlying instrumentatacertaindateinfuture. Buyinga contract givestheholderobligationtobuyorsellacertain in futures contractsandbuycallputoptions.Afutures Kleinwort BensonEliteMultiAssetGrowth Fundalsoinvest Kleinwort BensonEliteMultiAssetBalancedFundand Kleinwort BensonEliteMultiAssetConservativeFund, are includedintheStatementofTotal Return. value gainsorlossesonthesederivativefinancialinstruments subsequently re-measured attheirfairvalue.Unrealised fair at cost,beingthefairvalueofconsiderationgiven,andare Derivatives are initially recognised in the financial statements Derivative financialinstruments Notes to the Financial Statements Flows asitmeetsallthecriteriasetoutinFRS102section The Companyisexemptfrom preparing aStatementofCash Statement ofcashflows cash onmarginaccounts. Cash andcashequivalentsconsistofheldatbank Cash andcashequivalents total return. accounted foragainstdistributionswithinthestatementof The income element of the issues and redemption prices is of therelevant shares asareturnofinitialcapitalinvested. to shareholders withthefirstdividendpaidafterissue dealing days. Equalisation payments will normally be repaid accounting fortheissueorredemption ofshares ondifferent so astoadjustnetundistributedincomeforeachclasswhen in issueontherelevant dealingday. Equalisationisapplied income attributable to each share in issue or deemed to be equalisation amountsequivalenttotheamountofnet Subscription andredemption pricesofshares will include Equalisation value categoriesofinvestmentsare disclosed. to becategorisedaslevel3.Refernote16where thefair no investmentswhichhadfairvaluesthatwere considered of valuingthoseinvestments.Asattheyearend,there were basis oftheFund’s valuationisconsidered thebestestimate a yearenddatewhichisdifferent from thatoftheFund.The investments withunquotedpricesmaybeunauditedorhave judgement isapplied.Valuation ofinvestmentsthatrelates to Valuation ofinvestmentsisconsidered akeyarea where and inanyfuture periodsaffected. recognised intheperiod whichtheestimatesare revised ongoing basis.Revisionstotheaccountingestimatesare Estimates andunderlyingassumptionsare reviewed onan Actual results maydiffer from theseestimates. reported amountofassets, liabilities,incomeandexpenses. that affect theapplication ofaccountingpoliciesandthe Management makesjudgements, estimates andassumptions process ofapplyingtheCompany’s accountingpolicies. It also requires management to exercise its judgment in the 102 requires theuseofcertaincriticalaccountingestimates. The preparation offinancial statementsinconformity with FRS Critical assumptionsandjudgements Cash Flows. 7. Therefore theseaccountsdonotincludeaStatementof (continued) Notes to the Financial Statements For theyearended31July2016 3. Net capital gains and losses For theyearended31July2015 Total Foreign exchangegains/(losses) Derivative investments non derivativeinvestments Unrealised gainson non derivativeinvestments Realised gains/(losses)on Total Foreign exchangegains/(losses) Total Foreign exchangegains/(losses) Derivative investments non derivativeinvestments Unrealised gainson non derivativeinvestments Realised gains/(loss)on Total Foreign exchangegains/(losses) Derivative investments non derivativeinvestments Unrealised gains/(losses)on non derivativeinvestments Realised gains/(losses)on Derivative investments non derivativeinvestments Unrealised gains/(losses)on non derivativeinvestments Realised gains/(losses)on

20,811,076 10,409,667 10,286,031 11,122,549 Elite GBP Elite GBP (2,556,909) Currency Currency 1,229,812 5,970,243 3,324,990 1,365,345 Fund Fund 2016 2015 2016 2015 478,682 Total Total £ £ £ £ 184 184 ------1,040,264 1,019,383 Elite EUR Elite EUR Currency Currency Sterling Sterling Income Income 956,585 175,223 694,493 155,652 Fixed Fixed Fund Fund Fund Fund 2016 2016 2015 2015 17,294 65,790 (7,958) (8,070) £ € £ € (5,985) 595 (815) 200 (260) (515) (88) (40) - - (continued) Multi Asset Multi Asset 6,754,605 2,390,147 3,237,022 3,747,811 1,856,752 Elite USD Elite USD Balanced Balanced Currency Currency 2,642,180 514,758 612,678 245,680 (996,801) Fund Fund Fund Fund 2016 2016 2015 2015 Elite Elite US$ US$ £ £ 419 203 24 (87) 95 97 (32) (55) - - Conservative Conservative International International International International Multi Asset Multi Asset Bond Fund Bond Fund (103,880) 949,220 384,635 601,032 401,526 183,668 103,296 820,291 172,621 (246,421) (214,642) Fund Fund 2016 2016 2015 2015 (89,790) Elite Elite 67,433 42,298 57,678 39,717 10,528 (2,459) £ £ £ £ 7,826 (393) Multi Asset Multi Asset 7,293,377 3,179,458 1,323,075 2,594,084 1,805,236 2,287,494 (1,487,984) Elite EUR Elite EUR Income Income Growth Growth 196,760 111,723 151,532 894,003 133,857 Fixed Fixed Fund Fund Fund Fund 2016 2016 2015 2015 (51,619) 70,551 25,759 96,411 12,146 £ € £ € 5,646 (117) - International International International International Equity Fund Equity Fund 4,504,518 3,819,862 3,385,617 5,894,794 (2,581,929) Global Global Trojan Trojan 327,261 356,445 (120,256) 102,272 (117,562) Fund Fund 2016 2016 2015 2015 (65,036) Elite Elite 37,236 73,131 £ £ £ £ (2,694) 950 (379) - - - - 31 Annual Report & Audited Financial Statements 32 Annual Report & Audited Financial Statements For theyearended31July2015 For theyearended31July2016 note 6.Thebreakdown oftheseexpenseschargedagainstcapitalisasfollows: are showninthestatementoftotalreturnas‘Otherlosses–capitalexpenses’.Thedetailstheseexpensesare disclosedin BondFundandKleinwortBensonEURFixedIncomehavebeen chargedtocapitaland Kleinwort BensonInternational All expensesinrespect oftheKleinwortBensonEliteSterlingBalancedFund,MultiAssetConservative 4. Capital expenditure Notes to the Financial Statements Total expenses Total otherexpenses Sundry expenses Audit fee Directors fees Admin fees Legal fees GFSC andotherregulatory fees Other expenses Custodian fee Investment managementfee Total expenses Total otherexpenses Sundry expenses Audit fee Directors fees Admin fees Legal fees GFSC andotherregulatory fees Other expenses Custodian fee Investment managementfee 820,720 699,744 159,897 2015 2016 Total Total 190,791 598,267 509,114 50,828 94,633 19,703 31,662 38,590 82,852 12,561 30,733 £ £ 9,379 8,951 7,297 9,612 8,872 7,410 Fixed Income Fixed Income Sterling Sterling 392,713 281,450 246,020 347,029 Fund Fund 2016 2015 99,072 21,453 53,697 11,118 12,191 48,328 11,284 89,725 21,829 £ £ 5,469 5,201 2,134 5,936 5,310 4,440 3,882 (continued) Conservative Conservative Multi Asset Multi Asset 301,785 234,747 191,264 241,274 Fund Fund 2016 2015 60,529 19,885 27,225 22,255 43,545 10,786 £ £ 2,475 2,498 5,613 2,833 6,509 2,374 2,305 1,917 3,908 6,465 International International International International Bond Bond Fund Fund 2016 2015 62,912 15,524 55,455 13,260 40,888 35,730 £ £ 4,782 6,733 1,485 1,187 6,500 6,010 2,406 6,465 2,995 713 624 708 621 520 EUR Fixed EUR Fixed Income Income Fund Fund 2015 2016 84,646 20,945 73,442 17,535 55,061 47,356 € € 6,296 9,329 1,988 1,528 8,640 8,210 3,103 8,551 3,910 965 839 779 834 699 For theyearended31July2016 5. Revenue Notes to the Financial Statements For theyearended31July2015 Total income Bank interest Investment income Total income Bank interest Investment income Total income Bank interest Investment income Total income Bank interest Investment income 5,902,541 5,883,172 6,068,596 International International International 6,033,376 157,821 157,821 111,683 111,683 2015 2016 Total Total Bond Bond 19,369 35,220 Fund Fund 2015 2016 Elite Elite £ £ £ £ - - 1,136,319 1,136,019 1,448,260 1,434,019 Sterling Sterling Income Income EUR Fixed EUR Fixed Fixed Fixed 14,241 Fund Fund 2016 2015 238,474 238,474 174,561 174,561 Income Income £ £ Fund Fund 2015 2016 Elite Elite 300 € € - - Multi Asset Multi Asset 2,260,440 2,249,137 2,242,761 2,241,131 Balanced Balanced Fund Fund 11,303 2015 2016 Elite Elite 1,630 Global Global £ £ Trojan Trojan Fund Fund 2015 2016 £ £ 574 542 32 64 64 - Conservative Conservative Multi Asset Multi Asset 331,603 330,556 328,637 328,458 Fund Fund 2016 2015 1,047 £ £ 179 Multi Asset Multi Asset 1,239,977 1,233,321 1,200,626 1,199,243 Growth Growth Fund Fund 2016 2015 6,656 1,383 £ £ (continued) International International International International 668,923 668,923 492,989 492,989 Equity Equity Fund Fund 2016 2015 Elite Elite £ £ - - Elite GBP Elite GBP Currency Currency 17,619 17,619 17,755 17,755 Fund Fund 2016 2015 £ £ - - Elite EUR Elite EUR Currency Currency Fund Fund 2016 2015 € € 319 319 - - - - Elite USD Elite USD Currency Currency Fund Fund 2016 2015 4,126 4,124 $ $ 889 889 2 - 33 Annual Report & Audited Financial Statements 34 Annual Report & Audited Financial Statements ‘B’ USDAccumulatingNon-Reporting Shares 1.5% ‘A’ USDAccumulatingReportingShares 1.25% ‘B’ EURAccumulatingNon-Reporting Shares 1.5% ‘A’ EURAccumulatingReportingShares 1.25% ‘C’ GBPIncomeReportingShares 0.6% ‘B’ GBPAccumulatingNon-ReportingShares 1.5% ‘B’ GBPIncomeReportingShares 1.5% ‘A’ GBPReinvestReportingShares 1.25% ‘A’ GBPIncomeReportingShares 1.25% Fund Kleinwort BensonEliteMultiAssetGrowth ‘B’ USDAccumulatingNon-ReportingShares 1.5% ‘A’ USDAccumulatingReportingShares 1.25% ‘B’ EURAccumulatingNon-ReportingShares 1.5% ‘A’ EURAccumulatingReportingShares 1.25% ‘C’ GBPIncomeReportingShares 0.6% ‘B’ GBPAccumulatingNon-ReportingShares 1.5% ‘B’ GBPIncomeReportingShares 1.5% ‘A’ GBPReinvestReportingShares 1.25% ‘A’ GBPIncomeReportingShares 1.25% Conservative Fund Kleinwort BensonEliteMultiAsset ‘C’ USDAccumulatingNon-ReportingShares 0.6% ‘B’ USDAccumulatingNon-ReportingShares 1.5% ‘A’ USDAccumulatingNon-ReportingShares 1.25% ‘A’ USDAccumulatingReportingShares 1.25% ‘B’ EURAccumulatingNon-ReportingShares 1.5% ‘A’ EURAccumulatingReportingShares 1.25% ‘C’ GBPIncomeReportingShares 0.6% ‘B’ GBPAccumulatingNon-ReportingShares 1.5% ‘B’ GBPIncomeReportingShares 1.5% ‘A’ GBPReinvestReportingShares 1.25% ‘A’ GBPIncomeReportingShares 1.25% Fund Kleinwort BensonEliteMultiAssetBalanced ‘C’ GBPIncomeReportingShares 0.5% ‘B’ GBPIncomeReportingShares 1.0% ‘A’ GBPIncomeReportingShares 0.75% Fund Kleinwort BensonEliteSterlingFixedIncome share classwillbeasfollows: classes attributabletotheNetAssetValue ofeachrespective management fee per annum in respect of each of the share with the Company that until further notice its investment InvestmentFundManagerhasagreedThe Alternative InvestmentFundManager’sAlternative fees 6. Expenses Notes to the Financial Statements Asset Value oftheCell. fee inrespect oftheCellwill be0.05%perannumoftheNet Company thatuntilfurthernoticeitsinvestmentmanagement InvestmentFundManagerhasagreedThe Alternative withthe Kleinwort BensonEliteEURCurrency Fund Asset Value oftheCell. fee inrespect oftheCellwillbe0.05%perannumNet Company thatuntilfurthernoticeitsinvestmentmanagement InvestmentFundManagerhasagreedThe Alternative withthe Fund Kleinwort BensonEliteSterlingCurrency ‘C’ GBPIncomeReportingShares 0.6% ‘B’ GBPAccumulatingNon-ReportingShares 1.5% ‘A’ GBPReinvestReportingShares 1.25% ‘A’ GBPIncomeReportingShares 1.25% Fund Equity Kleinwort BensonEliteInternational fees paid to the Alternative InvestmentFundManager.fees paidtotheAlternative outoftheinvestmentmanagement Manager willbeborne arrears. Investment Fund The fees ofthe Sub-Alternative These feeswillbeaccruedweeklyandpayablemonthlyin 2015 and2016. Asset Value oftheCell.Thesefeeshavebeenwaivedfor fee inrespect oftheCellwillbe0.3%perannumNet Company thatuntilfurthernoticeitsinvestmentmanagement InvestmentFundManager hasagreedThe Alternative withthe Kleinwort BensonEliteTrojan Fund ‘C’ EURIncomeReportingShares 0.5% ‘B’ EURIncomeReportingShares 1.0% ‘A’ EURIncomeReportingShares 0.75% Fund Kleinwort BensonEliteEURFixedIncome ‘C’ GBPIncomeReportingShares 0.5% ‘B’ GBPAccumulatingNon-ReportingShares 1.0% ‘A’ GBPIncomeReportingShares 0.75% Fund Bond Kleinwort BensonEliteInternational Asset Value oftheCell. fee inrespect oftheCellwill be0.05%perannumoftheNet Company thatuntilfurthernoticeitsinvestmentmanagement InvestmentFundManagerhasagreedThe Alternative withthe Fund Kleinwort BensonEliteUSDollarCurrency (continued) the relevant cells pro rata totheirrespective Net Asset Values. attributable toaparticularcellwillbeapportionedbetween the cellsofCompany. Anysuchexpenseswhichare not by theAdministratorinconnectionwithadministrationof Company inrespect ofalloutpocketexpensesincurred The Administrator is entitled to be reimbursed by the to receive afeeof£50per tradingtransaction. In additiontothisfee,theAdministratorshallalsobeentitled classes. annum oftheNetAssetValue ofallCellsacross allshare and payable monthly inarrears attherateof 0.15% per further noticeitsadministrationfeeshallbeaccruedweekly The Administratorhasagreed withtheCompanythatuntil Administrator’s fees minimum of£6,500perannum. annum ofthenetassetvalueeachCellsubjecttoa Custodian is entitledtoreceive a fee of 0.035percent per In respect oftheKleinwort BensonEliteTrojan Fund,the fee of£6,500perannumpayablebytheCell. out inthefollowingtiered structure, butsubjecttoaminimum accordance withtheNetAssetValue oftheCompany, asset At present, theCustodianintendstochargeCellin per annum,payablemonthlyinarrears. each Cell’s NetAssetValue, subjecttoaminimumof£6,500 entitled toreceive afeeofupto0.06percent perannum of Benson EliteUSDollarCurrency Fund,theCustodianis Kleinwort BensonEliteEURCurrency FundandKleinwort Income Fund,KleinwortBensonEliteGBPCurrency Fund, BondFund,KleinwortBensonEliteEURFixed International EquityFund,KleinwortBensonElite Elite International Benson Elite Multi Asset Growth Fund, Kleinwort Benson Kleinwort Benson Elite Sterling Fixed Income Fund, Kleinwort Fund, KleinwortBensonEliteMultiAssetBalanced In respect ofKleinwortBensonEliteMultiAssetConservative Custodian fees 6. Expenses(continued) Notes to the Financial Statements Above £500,000,000 £400,000,001 to£500,000,000 £0 to£400,000,000 0.025% perannum 0.03% perannum 0.035% perannum (continued) 35 Annual Report & Audited Financial Statements 36 Annual Report & Audited Financial Statements Kleinwort Benson International BondFundandKleinwortBensonEURFixed Income FundareKleinwort BensonInternational charged directly tocapital. The cellexpensesofKleinwort Benson EliteSterlingFixedIncomeFund,Kleinwort MultiAssetConservativeFund, For theyearended31July2015 BondFundandKleinwortBensonEURFixedIncomeareKleinwort BensonInternational chargeddirectly tocapital. The cellexpensesofKleinwortBensonEliteSterlingFixedIncomeFund,MultiAssetConservative For theyearended31July2016 6. Expenses(continued) Notes to the Financial Statements Total expenses expenses Total other Sundry expenses Audit fee Directors fees Admin fees Legal fees regulatory fees GFSC andother Other expenses Custodian fee management fee Investment Total expenses expenses Total other Sundry expenses Audit fee Directors fees Admin fees Legal fees regulatory fees GFSC andother Other expenses Custodian fee management fee Investment 2,805,532 3,213,773 2,549,597 2,216,041 509,451 573,302 150,003 293,841 143,571 260,159 2015 2016 Total Total 30,459 28,543 56,976 13,480 90,874 31,580 28,428 21,038 24,675 80,040 £ £ Multi Asset Multi Asset 1,703,410 1,381,015 1,440,765 1,165,867 Balanced Balanced 245,777 128,757 287,786 150,272 Fund Fund 2015 2016 71,591 14,729 14,941 30,447 34,609 68,116 15,764 14,447 10,897 29,121 5,806 7,796 £ £ Multi Asset Multi Asset 1,039,038 Growth Growth 176,562 842,175 904,439 149,656 737,057 Fund Fund 2015 2016 46,939 10,294 88,656 17,786 20,301 39,217 79,120 17,726 4,063 9,583 8,859 6,925 5,952 8,824 £ £ International International International International Equity Fund Equity Fund 397,770 386,787 309,034 321,926 2016 2015 Elite Elite 70,502 68,280 20,513 35,480 14,598 37,770 £ £ 4,330 3,634 2,864 3,681 7,251 3,831 3,324 6,886 1,871 7,564 (continued) Elite GBP Elite GBP Currency Currency Fund Fund 2016 2015 18,675 27,266 18,553 27,145 £ £ 6,618 7,870 2,411 6,464 2,006 7,662 7,941 6,500 2,213 931 695 150 730 679 783 758 Elite EUR Elite EUR Currency Currency Fund Fund 2016 2015 21,005 32,684 19,648 31,642 10,617 € € 7,629 8,549 3,064 8,504 2,133 7,233 8,926 2,419 865 740 158 900 741 929 919 Elite USD Elite USD Currency Currency Fund Fund 2016 2015 11,417 23,222 10,832 21,546 US$ US$ 11,674 3,973 3,504 3,292 9,475 5,450 3,397 1,010 323 227 654 166 217 592 716 98 Global Global Trojan Trojan Fund Fund 2016 2015 6,969 7,425 £ £ 6,465 6,482 487 960 (352) 311 350 554 230 96 82 90 72 14 - - - - investment income. of totalreturn relates towithholdingtaxontheCompany’s return andtherefore thetaxchargeshowninstatement deducted isshownseparatelyinthestatementoftotal Overseas incomeisshowngross andanywithholdingtax IncomeTaxGuernsey fortheapplicablefee. future tocontinuebeableapplyforexemptionfrom income tax of 0%. The Company expects for the foreseeable Guernsey’s CorporateTax Regimehasastandard rateof fee of£1,200. the above mentioned Ordinance entails payment of an annual incometax.Exemptionunder without deductionofGuernsey income oftheCompanymaybedistributedoraccumulated Tax Ordinance, (Exempt Bodies) (Guernsey) 1989 and the exemption fromincometaxundertheIncome Guernsey IncomeTaxStates ofGuernsey hasgrantedtheCompany n o ti a x Ta 7. Notes to the Financial Statements (continued) 37 Annual Report & Audited Financial Statements 38 Annual Report & Audited Financial Statements For theyearended31July2016 8. Distributions Notes to the Financial Statements Equalisation received onshares issued Accrued incomepaidonshares redeemed Final dividendpaid30September2016(Ex-dividend28July2016) Interim dividendpaid30June2016(Ex-dividend28April2016) Interim dividendpaid31March 2016(Ex-dividend29January2016) Interim dividendpaid31December2015(Ex-dividend29October2015) - AGBP/EURIncomeReporting Dividend pershare 31December2015 Dividends declared duringtheyear - AReinvestedReporting - BGBP/EURIncomeReporting - CIncomeReporting - AUSDAccumulatingReporting - AEURAccumulatingReporting - AUSDAccumulatingNon-Reporting - BUSDAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BGBPAccumulatingNon-Reporting Dividend pershare 31March 2016 - BGBP/EURIncomeReporting - AReinvestedReporting - AGBP/EURIncomeReporting - CIncomeReporting - AEURAccumulatingReporting - AUSDAccumulatingReporting - AAccumulatingNon-Reporting - BUSDAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BGBPAccumulatingNon-Reporting - AGBP/EURIncomeReporting Dividend pershare 30June2016 - BGBP/EURIncomeReporting Dividend pershare 30September2016 - BGBPAccumulatingNon-Reporting - BGBP/EURIncomeReporting - AReinvestedReporting - AGBP/EURIncomeReporting - CIncomeReporting - AEURAccumulatingReporting - AUSDAccumulatingReporting - AUSDAccumulatingNon-Reporting - AEURAccumulatingReporting - BUSDAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BGBPAccumulatingNon-Reporting (continued) 3,064,922 1,688,160 362,895 171,633 337,015 539,653 2016 Total (34,434) £ ------1,136,940 Sterling Income 259,314 278,781 285,790 297,161 Fixed Fund 2016 (15,945) 31,839 £ 2.278 0.709 0.676 2.193 2.179 0.675 0.642 2.205 ------Multi Asset Balanced 889,221 808,979 Fund 2016 (12,243) 92,485 £ 0.008 0.181 0.267 0.003 0.045 0.013 0.046 0.115 0.457 ------Conservative Multi Asset 312,441 118,993 186,371 Fund 2016 (1,834) £ 8,911 0.025 0.409 0.019 0.032 0.171 0.684 0.016 0.223 0.020 0.040 0.183 0.416 ------Multi Asset 346,033 Growth 315,580 Fund 2016 34,230 (3,777) 0.001 0.020 0.123 0.011 0.067 0.180 0.254 £ ------International International 130,182 127,826 Equity Fund 2016 1,576 0.008 0.003 0.043 0.020 0.917 £ 818 (38) ------International International 120,287 Bond Fund 2016 27,910 28,210 30,504 31,325 2,338 0.768 0.787 0.732 0.838 £ ------EUR Fixed 170,296 Income Fund 2016 38,775 39,385 46,454 45,138 1,327 0.939 0.963 0.826 0.819 € (783) ------BGBPAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BUSDAccumulatingNon-Reporting - AEURAccumulatingReporting - AUSDAccumulatingNon-Reporting - AUSDAccumulatingReporting - AEURAccumulatingReporting - CIncomeReporting - BGBP/EURIncomeReporting - AReinvestedReporting - AGBP/EURIncomeReporting Dividend pershare 30September2016 - BGBPAccumulatingNon-Reporting - BGBP/EURIncomeReporting - AGBP/EURIncomeReporting Dividend pershare 30June2016 - BGBPAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BUSDAccumulatingNon-Reporting - AAccumulatingNon-Reporting - AUSDAccumulatingReporting - AEURAccumulatingReporting - CIncomeReporting - BGBP/EURIncomeReporting - AReinvestedReporting - AGBP/EURIncomeReporting Dividend pershare 31March 2016 - BGBPAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BUSDAccumulatingNon-Reporting - AUSDAccumulatingNon-Reporting - AEURAccumulatingReporting - AUSDAccumulatingReporting - CIncomeReporting - BGBP/EURIncomeReporting - AReinvestedReporting - AGBP/EURIncomeReporting Dividend pershare 31December2015 Dividends declared duringtheyear Equalisation received onshares issued Accrued incomepaidonshares redeemed Final dividendpaid30September2016(Ex-dividend28July2016) Interim dividendpaid30June2016(Ex-dividend28April2016) Interim dividendpaid31March 2016(Ex-dividend29January2016) Interim dividendpaid31December2015(Ex-dividend29October2015) 3,064,922 1,688,160 171,633 337,015 539,653 362,895 2016 Total (34,434) £ ------1,136,940 Sterling Income 259,314 278,781 285,790 297,161 Fixed Fund 2016 (15,945) 31,839 £ 0.642 2.205 0.675 2.179 0.676 2.193 0.709 2.278 ------Multi Asset Balanced 889,221 808,979 Fund 2016 (12,243) 92,485 £ 0.457 0.115 0.046 0.013 0.045 0.003 0.008 0.181 0.267 ------Conservative Multi Asset 312,441 118,993 186,371 Fund 2016 (1,834) £ 0.416 0.183 0.040 0.020 0.016 0.223 0.684 0.171 0.032 0.019 0.025 0.409 8,911 ------Notes to the Financial Statements Multi Asset 346,033 Growth 315,580 Fund 2016 34,230 (3,777) 0.254 0.180 0.067 0.011 0.001 0.020 0.123 £ ------International International 130,182 127,826 Equity Fund 2016 0.917 0.043 0.020 0.008 0.003 1,576 £ 818 (38) ------International International 120,287 Bond Fund 2016 27,910 28,210 30,504 31,325 0.838 0.732 0.787 0.768 2,338 £ ------EUR Fixed 170,296 Income Fund 2016 38,775 39,385 46,454 45,138 0.819 0.826 0.963 0.939 1,327 € (783) ------(continued) 39 Annual Report & Audited Financial Statements 40 Annual Report & Audited Financial Statements For theyearended31July2015 8. Distributions (continued) Notes to the Financial Statements Equalisation received onshares issued Accrued incomepaidonshares redeemed Final dividendpaid30September2015(Ex-dividendJuly2015) Interim dividendpaid30June2015(Ex-dividendApril2015) Interim Dividendpad31March 2015(Exdividend31January2015) Interim dividendpaid31December2014(ExDivOctober2014) - AGBP/EURIncomeReporting Dividend pershare 31December2014 Dividends declared duringtheyear - AReinvestedReporting - BGBP/EURIncomeReporting - CIncomeReporting - AUSDAccumulatingReporting - AEURAccumulatingReporting - AUSDAccumulatingNon-Reporting - BUSDAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BGBPAccumulatingNon-Reporting Dividend pershare 31March 2015 - AGBP/EURIncomeReporting - AReinvestedReporting - BGBP/EURIncomeReporting - CIncomeReporting - AEURAccumulatingReporting - AUSDAccumulatingReporting - AAccumulatingNon-Reporting - BUSDAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BGBPAccumulatingNon-Reporting Dividend pershare 30June2015 - AGBP/EURIncomeReporting - BGBP/EURIncomeReporting - BGBPAccumulatingNon-Reporting - BGBP/EURIncomeReporting - AReinvestedReporting - AGBP/EURIncomeReporting Dividend pershare 30September2015 - CIncomeReporting - AEURAccumulatingReporting - AUSDAccumulatingReporting - AUSDAccumulatingNon-Reporting - AEURAccumulatingReporting - BUSDAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BGBPAccumulatingNon-Reporting (continued) 2,657,354 1,044,439 448,704 155,023 413,600 636,580 2015 Total (40,993) £ ------1,444,311 Sterling Income 337,420 343,503 361,852 361,231 Fixed Fund 2015 (19,408) 59,713 11.283 11.629 11.394 11.432 £ 0.976 1.006 0.985 0.987 ------Multi Asset Balanced 413,866 376,532 Fund 2015 (10,103) 47,437 £ 0.504 0.881 0.880 0.263 0.263 0.325 0.150 0.191 0.374 ------Conservative Multi Asset 326,343 123,548 184,586 Fund 2015 27,901 (9,692) £ 1.156 1.156 1.123 0.833 0.664 0.831 1.080 1.000 1.071 1.054 0.480 0.333 0.478 0.947 ------Multi Asset Growth 143,985 134,404 Fund 2015 10,583 (1,002) £ 0.639 0.639 0.277 0.228 0.109 0.137 0.271 ------International International Equity Fund 2015 0.004 0.068 0.129 £ 841 329 505 7 ------International International 153,870 Bond Fund 2015 34,392 32,075 44,771 40,459 2,173 0.896 1.005 0.744 0.817 £ ------EUR Fixed 232,822 Income Fund 2015 50,322 50,836 60,660 62,849 (1,053) 9,208 1.092 1.070 1.105 1.089 1.007 1.035 € ------BGBPAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BUSDAccumulatingNon-Reporting - AEURAccumulatingReporting - AUSDAccumulatingNon-Reporting - AUSDAccumulatingReporting - AEURAccumulatingReporting - CIncomeReporting - BGBP/EURIncomeReporting - AReinvestedReporting - AGBP/EURIncomeReporting Dividend pershare 30September2015 - BGBPAccumulatingNon-Reporting - BGBP/EURIncomeReporting - AGBP/EURIncomeReporting Dividend pershare 30June2015 - BGBPAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BUSDAccumulatingNon-Reporting - AAccumulatingNon-Reporting - AUSDAccumulatingReporting - AEURAccumulatingReporting - CIncomeReporting - BGBP/EURIncomeReporting - AReinvestedReporting - AGBP/EURIncomeReporting Dividend pershare 31March 2015 - BGBPAccumulatingNon-Reporting - BEURAccumulatingNon-Reporting - BUSDAccumulatingNon-Reporting - AUSDAccumulatingNon-Reporting - AEURAccumulatingReporting - AUSDAccumulatingReporting - CIncomeReporting - BGBP/EURIncomeReporting - AReinvestedReporting - AGBP/EURIncomeReporting Dividend pershare 31December2014 Dividends declared duringtheyear Equalisation received onshares issued Accrued incomepaidonshares redeemed Final dividendpaid30September2015(Ex-dividendJuly2015) Interim dividendpaid30June2015(Ex-dividendApril2015) Interim Dividendpad31March 2015(Exdividend31January2015) Interim dividendpaid31December2014(ExDivOctober2014) 2,657,354 1,044,439 155,023 413,600 636,580 448,704 2015 Total (40,993) £ ------1,444,311 Sterling Income 337,420 343,503 361,852 361,231 Fixed Fund 2015 (19,408) 11.432 11.394 11.629 11.283 59,713 £ 0.987 0.985 1.006 0.976 ------Multi Asset Balanced 413,866 376,532 Fund 2015 (10,103) 47,437 £ 0.374 0.191 0.150 0.325 0.263 0.263 0.504 0.881 0.880 ------Conservative Multi Asset 326,343 123,548 184,586 Fund 2015 27,901 (9,692) £ 0.947 0.478 0.333 0.480 1.000 1.071 1.054 1.080 0.831 0.664 0.833 1.123 1.156 1.156 ------Notes to the Financial Statements Multi Asset Growth 143,985 134,404 Fund 2015 10,583 (1,002) £ 0.271 0.137 0.109 0.228 0.277 0.639 0.639 ------International International Equity Fund 2015 0.068 0.129 0.004 £ 841 329 505 7 ------International International 153,870 Bond Fund 2015 34,392 32,075 44,771 40,459 0.817 0.744 1.005 0.896 2,173 £ ------EUR Fixed 232,822 Income Fund 2015 50,322 50,836 60,660 62,849 (1,053) 1.035 1.007 1.089 1.105 1.070 1.092 9,208 € ------(continued) 41 Annual Report & Audited Financial Statements 42 Annual Report & Audited Financial Statements 9. Debtors Notes to the Financial Statements Amounts receivable oninvestments Accrued income Forward exchangecontracts Accrued income Total Sundry debtors Forward exchangecontracts Accrued income Total Sundry debtors Total Sundry debtors Forward exchangecontracts Amounts receivable oninvestments Accrued income Total Sundry debtors Forward exchangecontracts Currency Currency 1,360,473 1,013,734 6,299,819 5,052,997 343,710 384,300 862,165 Fund Fund 2015 2015 2016 2016 Total Total GBP GBP £ £ £ £ 3,029 1,078 1,070 1,694 1,314 380 357 8 - - - Currency Currency Sterling Sterling Income Income Fixed Fixed 319,226 319,175 387,968 387,748 Fund Fund Fund Fund 2016 2016 2015 2015 EUR EUR £ £ £ £ 220 543 543 51 8 8 ------Multi Asset Multi Asset Balanced Balanced Currency Currency (continued) 5,470,453 5,052,997 150,661 472,744 136,159 336,442 Fund Fund Fund Fund 2016 2015 2016 2015 USD USD US$ US$ 266,656 £ £ 143 675 613 439 139 439 62 - - - - Conservative Conservative International International International International Multi Asset Multi Asset Bond Bond Fund Fund Fund Fund 2016 2015 2016 2015 32,163 26,778 37,774 27,256 26,874 62,108 21,492 40,304 32,169 64,575 £ £ £ £ 382 312 23 6 - - - - Multi Asset Multi Asset Income Income Growth Growth Fixed Fixed 304,306 206,861 297,759 186,059 111,573 117,889 117,350 Fund Fund 2016 2016 2015 2015 EUR EUR 97,362 89,250 89,256 £ £ £ £ 127 539 83 6 - - - - International International International International Equity Equity Trojan Trojan Fund Fund Fund Fund 2016 2015 2016 2015 32,500 32,465 26,660 26,354 £ £ £ £ 306 35 ------10. creditors Other Notes to the Financial Statements Forward exchangecontracts Accrued expense Forward exchangecontracts Accrued expense Total Investment liabilities Forward exchangecontracts Accrued expense Total Investment liabilities Total Forward exchangecontracts Accrued expense Total Currency Currency (840,670) (325,639) (432,256) (367,718) (321,093) Fund Fund 2015 2015 2016 2016 Total Total GBP GBP (40,696) (3,211) (2,634) (2,634) (4,546) (3,211) £ £ £ £ - - - Currency Currency Sterling Sterling Income Income Fixed Fixed Fund Fund Fund Fund 2016 2016 2015 2015 EUR EUR (29,030) (37,079) (29,030) (37,079) £ £ (2,843) (4,119) (2,843) (4,119) £ £ ------Multi Asset Multi Asset Balanced Balanced Currency Currency (continued) (134,042) (338,768) (132,074) (157,933) (150,941) Fund Fund Fund Fund 2016 2015 2016 2015 USD USD US$ US$ (29,894) (1,978) (2,997) (1,968) (1,978) (2,997) £ £ - - - Conservative Conservative International International International International Multi Asset Multi Asset Bond Bond Fund Fund Fund Fund 2016 2015 2016 2015 (20,599) (63,034) (20,534) (33,494) (27,757) (4,739) (6,387) (4,739) (6,387) (1,783) £ £ £ £ (65) - - - Multi Asset Multi Asset Income Income Growth Growth (343,191) (240,829) Fixed Fixed Fund Fund 2016 2016 2015 2015 EUR EUR (88,343) (85,830) (93,343) £ £ (6,275) (8,619) (2,513) (9,019) (6,275) (8,619) £ £ - - - International International International International Equity Equity Trojan Trojan Fund Fund Fund Fund 2016 2015 2016 2015 (36,522) (37,379) (36,522) (37,379) £ £ £ £ (681) (561) (681) (561) ------43 Annual Report & Audited Financial Statements 44 Annual Report & Audited Financial Statements (31 July2015:£29,403,£246,773and£8,776respectively). of theyearwere £27,448, £227,305 and£8,951respectively explained innotes4and6.Thebalancespayableattheend InvestmentFundManagerandtheCustodianareAlternative The feesandexpensespayabletotheAdministrator, the (2015: £9,377). (2015: £37,494)ofwhich£Nilwasdueattheyearend Directors feesof£37,300were paidduringthe year were nofeespayabletoMrAMoorsheadduringtheyear. Mr A Moorshead is a Director of the Administrator. There The onlyrelated partytransactionsare describedbelow: 1978. The Administratorwasregistered on11May inGuernsey Directors are regarded asrelated parties. InvestmentFundManager”)andthe Limited (the“Alternative Kleinwort Benson(Channel Islands) InvestmentManagement Limited(the“Administrator”), JTC FundSolutions(Guernsey) 11. transactions party Related Notes to the Financial Statements

declared. Holders of Shares are entitled to receive notice of in theassets of the Cell andtoanydividends that may be of Shareholders andcarry therighttoaproportionate share The Shares issuedbyanycellare redeemable attheoption classified asequity. capital. Asaresult oftheserights,ManagementShares are Management Shareholders rankonlyforareturn ofpaidup in any cell are in issue. In a winding up of the Company the the Company and carry no voting rights whilst any shares The ManagementShares carrynorighttodividendsfrom have apreference oversomeotherclassofshare capital. Shares are created inorder thatthepreference shares may Shares”). CompanyLawManagement UnderGuernsey up and an unlimited number of shares of no par value (“the allotted andissuedtotheManager, credited asfullypaid £1.00 each(“ManagementShares”), allofwhichhavebeen capital of£100dividedinto100ManagementShares of The Companywasincorporatedwithanauthorisedshare 12. Share capital for details). created whichattractdiffering levelsoffees(refer tonote6 In certaincellsanumberofshare subclasseshavebeen Shares are presented asliabilities. of theCell.Assuch,andinaccordance withFRS102the the onlyclassofshareholder withrightstoanycapitalsurplus its ArticlesofAssociation.TheParticipatingShareholders are of theCell’s netassetsasdeterminedinaccordance with redeemable byShareholders atpricesbasedonthevalue one voteforeachShare of whichheisaholder. Shares are thereat. The holderof each Share is entitled, on a poll, to all generalmeetingsoftheCompanyandtoattendvote (continued) 12. Share capital (continued) Notes to the Financial Statements For the year ended 31 July 2016

Sterling Multi Asset Multi Asset Multi Asset Elite International Total Fixed Income Balanced Conservative Growth Equity Fund Fund Fund Fund Fund No. of shares No. of shares No. of shares No. of shares No. of shares No. of shares

Non-Cellular At 31 July 2016 Management Shares 100 - - - - - Cellular Redeemable Participating As at 31 July 2015 194,158,145 10,309,279 79,831,116 14,368,836 53,512,591 15,475,334 Issued 4,310,418 465,692 2,574,040 393,252 615,935 86,664 Redeemed (29,293,826) (1,667,132) (14,170,815) (1,501,768) (6,011,602) (2,552,175) At 31 July 2016 169,174,737 9,107,839 68,234,341 13,260,320 48,116,924 13,009,823

Global Elite GBP Elite EUR Elite USD Elite International Elite EUR Trojan Currency Fund Currency Fund Currency Fund Bond Fund Fixed Income Fund

No. of shares No. of shares No. of shares No. of shares No. of shares No. of shares (continued) Non-Cellular At 31 July 2016 Management Shares ------

Cellular Redeemable Participating As at 31 July 2015 4,387,250 4,858,126 1,500,345 4,204,508 4,861,506 849,254 Issued 35,485 16,942 - - 122,408 - Redeemed (977,043) (750,596) (298,574) (872,203) (249,519) (242,399) At 31 July 2016 3,445,692 4,124,472 1,201,771 3,332,305 4,734,395 606,855 45 Annual Report & Audited Financial Statements 46 Annual Report & Audited Financial Statements

12. Share capital (continued) Notes to the Financial Statements For the year ended 31 July 2015

Sterling Multi Asset Multi Asset Multi Asset Elite International Total Fixed Income Balanced Conservative Growth Equity Fund Fund Fund Fund Fund No. of shares No. of shares No. of shares No. of shares No. of shares No. of shares

Non-Cellular At 31 July 2015 Management Shares 100 - - - - - Cellular Redeemable Participating As at 31 July 2014 230,269,789 11,857,884 96,260,988 19,356,323 61,745,730 17,480,235 Issued 7,547,472 539,367 3,025,578 1,493,040 1,558,740 226,875 Redeemed (43,659,116) (2,087,972) (19,455,450) (6,480,527) (9,791,879) (2,231,776) At 31 July 2015 194,158,145 10,309,279 79,831,116 14,368,836 53,512,591 15,475,334

Global Elite GBP Elite EUR Elite USD Elite International Elite EUR Trojan Currency Fund Currency Fund Currency Fund Bond Fund Fixed Income Fund

No. of shares No. of shares No. of shares No. of shares No. of shares No. of shares (continued) Non-Cellular At 31 July 2015 Management Shares ------

Cellular Redeemable Participating As at 31 July 2014 4,501,643 4,997,252 2,562,087 4,662,184 5,996,209 849,254 Issued 201,076 161,814 191,860 - 149,122 - Redeemed (315,469) (300,940) (1,253,602) (457,676) (1,283,825) - At 31 July 2015 4,387,250 4,858,126 1,500,345 4,204,508 4,861,506 849,254 The netassetsattributabletoparticipatingshareholders are represented bythefollowing: For theyearended31July2016 13. Net assets attributable to Participating Shareholders Notes to the Financial Statements Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulationshares Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2015 Kleinwort BensonMultiAssetBalancedFund Balance at31July2016 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2015 Kleinwort BensonSterlingFixedIncomeFund Revenue aftertaxanddistributions Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipating shares Balance at1August2015 Kleinwort BensonGBPCurrency Fund Balance at31July2016 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulationshares Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2015 EquityFund Kleinwort BensonInternational Balance at31July2016 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulationshares Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2015 Kleinwort BensonMultiAssetGrowth Fund Balance at31July2016 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulationshares Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2015 Kleinwort BensonMultiAssetConservativeFund Balance at31July2016 Balance at31July 2016 Other losses-Capital expenses Share Premium Share Premium Share Premium Share Premium Share Premium Share Premium (17,150,160) (5,379,477) (3,712,475) (6,098,524) (1,517,000) 50,248,831 64,718,293 26,806,379 29,654,614 14,339,316 45,022,878 12,167,829 13,288,289 10,753,463 39,580,668 2,680,698 2,531,242 4,396,404 3,465,992 (965,509) £ £ £ £ £ £ 126,622 656,314 396,540 35,097 ------Capital Reserve Capital Reserve Capital Reserve Capital Reserve Capital Reserve Capital Reserve (continued) 24,607,941 31,846,195 12,051,034 15,965,314 6,754,605 4,489,823 1,040,264 3,796,588 4,504,518 7,426,924 7,293,377 8,425,794 1,814,019 (347,029) (241,274) £ £ £ £ £ £ 483,649 119,592 246,143 949,220 224,015 882,058 184 184 ------Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve (1,192,113) (1,178,320) (268,889) (122,781) (159,760) (173,898) (171,446) £ £ £ £ £ £ (82,635) (62,496) (94,991) (13,793) (52,970) (75,527) (65,973) (56,808) (7,108) (9,526) 11,686 ------(17,150,160) (5,379,477) (3,712,475) (6,098,524) (1,517,000) Total Total Total Total Total Total 81,826,137 89,231,243 30,104,089 32,272,882 21,690,713 53,391,864 13,822,088 13,998,901 22,721,862 55,423,201 6,754,605 2,680,698 1,040,264 2,531,242 4,343,434 4,504,518 7,293,377 3,403,680 (173,898) (347,029) (965,509) (241,274) £ £ £ £ £ £ (13,793) (65,973) 483,649 119,592 126,622 246,143 656,314 949,220 224,015 396,540 (9,526) (7,108) 35,097 11,686 184 - - - - 47 Annual Report & Audited Financial Statements 48 Annual Report & Audited Financial Statements For theyearended31July2016(continued) 13. Net assets attributable to Participating Shareholders (continued) Notes to the Financial Statements Received onissueofparticipatingshares Balance at1August2015 Kleinwort BensonUSDCurrency Fund Balance at31July2016 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2015 Kleinwort BensonEURCurrency Fund Revenue aftertaxanddistributions Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2015 BondFund Kleinwort BensonInternational Balance at31July2016 Other losses-Capitalexpenses Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2015 Kleinwort BensonEURFixedIncomeFund Balance at31July2016 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulationshares Payable onredemptions ofparticipatingshares Balance at31July2016 Balance at31July2016 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2015 Kleinwort BensonTrojan Fund Balance at31July2016 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulation shares Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Effect onForeign exchangerates Balance at1August2015 Total Share Premium Share Premium Share Premium Share Premium Share Premium Share Premium (36,722,978) 155,233,659 185,511,275 US$ 4,152,478 4,868,731 1,523,814 1,239,205 4,436,969 4,866,997 3,623,962 4,741,166 6,530,875 (284,609) (813,007) (144,373) (246,222) (732,764) € £ € £ £ (85,513) 120,391 881,643 737,270 16,511 ------Capital Reserve Capital Reserve Capital Reserve Capital Reserve Capital Reserve Capital Reserve (continued) 66,442,839 20,811,076 43,686,608 US$ (330,235) 1,191,348 1,453,551 (338,912) (576,397) (376,148) (699,744) € £ € £ £ (18,310) (15,419) (55,455) (73,442) 183,668 117,949 (8,834) (7,958) 70,551 37,236 (139) (876) 419 280 ------Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve (2,484,012) (2,170,818) US$ (308,894) (141,326) (109,684) € £ € £ £ (98,037) (31,225) (80,617) (17,420) (23,864) (31,642) (8,544) (7,361) (4,300) 20,259 12,220 11,715 2,296 9,924 ------(36,722,978) 219,192,486 227,027,065 Total Total Total Total Total Total 20,811,076 US$ 4,002,318 4,758,171 1,443,058 3,880,831 1,141,448 4,861,502 3,305,442 4,735,076 1,191,348 6,530,875 1,363,738 (284,609) (246,222) (813,007) (699,744) (308,894) (144,373) (732,764) € £ £ € £ (17,420) (73,442) (55,455) (31,642) 120,391 183,668 117,949 481,631 367,133 (8,544) (7,361) 16,511 (7,958) 70,551 37,236 2,296 419 ------For theyearended31July2015 13. Net assets attributable to Participating Shareholders (continued) Notes to the Financial Statements Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulationshares Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 Kleinwort BensonMultiAssetBalancedFund Balance at31July2015 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 Kleinwort BensonSterlingFixedIncomeFund Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulationshares Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 Kleinwort BensonMultiAssetGrowth Fund Balance at31July2015 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulationshares Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 Kleinwort BensonMultiAssetConservativeFund Balance at31July2015 Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 Balance at31July2015 Balance at31July2015 Other losses-Capitalexpenses Revenue aftertaxanddistributions Kleinwort BensonGBPCurrency Fund Balance at31July2015 EquityFund Kleinwort BensonInternational Share Premium Share Premium Share Premium Share Premium Share Premium Share Premium (23,873,887) (9,415,089) (9,934,446) (6,670,320) (2,816,571) 64,718,293 85,162,004 29,654,614 36,294,982 53,170,800 13,288,289 18,367,174 45,022,878 14,339,316 16,879,062 3,430,176 2,774,721 1,786,524 1,591,435 4,396,404 4,509,710 (312,544) £ £ £ £ £ £ 199,238 276,825 ------Capital Reserve Capital Reserve Capital Reserve Capital Reserve Capital Reserve Capital Reserve (continued) 20,684,123 24,607,941 3,747,811 3,796,588 1,019,383 3,169,918 1,805,236 6,532,217 3,385,617 4,041,307 8,425,794 7,426,924 (392,713) (301,785) £ £ £ £ £ £ 176,007 882,058 401,526 188,218 594,099 88,341 ------Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve (1,178,320) (1,173,670) (171,446) (158,724) (170,010) £ £ £ £ £ £ (94,991) (56,808) (52,970) (75,527) (60,815) (43,459) (67,077) (4,650) (1,436) (8,450) (9,511) 63,733 4,007 ------(23,873,887) 105,687,403 (9,415,089) (9,934,446) (6,670,320) (2,816,571) Total Total Total Total Total Total 89,231,243 32,272,882 38,291,230 59,642,202 13,998,901 18,791,263 21,690,713 20,853,292 53,391,864 3,747,811 3,430,176 1,019,383 2,774,721 1,805,236 1,786,524 1,591,435 4,466,251 3,385,617 4,343,434 (392,713) (301,785) (312,544) £ £ £ £ £ £ 176,007 401,526 188,218 199,238 276,825 (4,650) (1,436) (8,450) (9,511) 63,733 88,341 4,007 - - - - - 49 Annual Report & Audited Financial Statements 50 Annual Report & Audited Financial Statements For theyearended31July2015(continued) 13. Net assets attributable to Participating Shareholders (continued) Notes to the Financial Statements Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 Kleinwort BensonEURCurrency Fund Balance at31July2015 Other losses-Capitalexpenses Revenue aftertaxanddistributions Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 Kleinwort BensonUSDCurrency Fund Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 BondFund Kleinwort BensonInternational Balance at31July2015 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 Kleinwort BensonEURFixedIncomeFund Balance at31July2015 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulationshares Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Balance at1August2014 Kleinwort BensonTrojan Fund Balance at31July2015 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Retained distributiononaccumulation shares Payable onredemptions ofparticipatingshares Received onissueofparticipatingshares Effect onForeign exchangerates Balance at1August2014 Total Balance at31July2015 Other losses-Capitalexpenses Revenue aftertaxanddistributions Net capitalgains Balance at31July2015 Share Premium Share Premium Share Premium Share Premium Share Premium Share Premium (55,431,902) 230,482,801 185,511,275 (1,224,576) (1,315,870) 10,408,674 US$ 5,005,538 4,868,731 2,563,053 4,856,432 1,523,814 6,032,657 4,436,969 4,866,997 (419,463) (295,501) € £ € £ £ 158,694 185,337 150,210 881,643 881,643 51,702 ------Capital Reserve Capital Reserve Capital Reserve Capital Reserve Capital Reserve Capital Reserve (continued) 43,686,608 10,409,667 34,291,885 US$ (576,397) (376,148) (722,860) (255,892) (798,487) (120,256) (820,720) € £ € £ £ (15,419) (82,305) (62,912) (84,646) 151,697 151,532 604,263 57,678 (139) (876) (815) (87) (52) (61) ------Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve Revenue Reserve (2,170,818) (2,173,273) US$ (109,684) € £ € £ £ (80,617) (23,864) (22,333) (58,284) (17,469) (32,365) (77,319) (1,417) (6,395) 16,383 20,259 3,876 9,924 1,618 8,306 3,872 ------(55,431,902) 262,601,413 227,027,065 (1,224,576) (1,315,870) Total Total Total Total Total Total 10,409,667 10,408,674 US$ 4,928,158 4,758,171 2,504,717 4,149,955 1,443,058 5,958,658 3,880,831 4,861,502 (419,463) (820,720) (748,202) (120,256) (295,501) € £ € £ £ (22,333) (84,646) (62,912) 158,694 (32,365) 185,337 151,532 150,210 151,697 608,282 604,263 481,631 (6,395) 57,678 3,876 1,618 3,872 (815) (87) ------14. Earnings share per Notes to the Financial Statements Gain/(Loss) pershare Weighted averagenumberofshares inissue Total return/(loss) Gain/(Loss) pershare Weighted averagenumberofshares inissue Total return/(loss) Gain/(Loss) pershare Weighted averagenumberofshares inissue Total return/(loss) Gain/(Loss) pershare Weighted averagenumberofshares inissue Total return/(loss) Currency Currency 2,066,331 4,410,182 9,851,328 1,816,382 4,924,088 Sterling Sterling Income Income Fixed Fixed 849,253 Fund Fund Fund Fund 2015 2015 2016 2016 EUR EUR (39,600) (33,180) £ £ £ £ (0.01) (0.01) 2.43 0.18 75,808,482 87,697,742 Multi Asset Multi Asset Balanced Balanced Currency Currency 7,469,928 4,225,410 1,380,899 1,496,846 Fund Fund Fund Fund 2016 2016 2015 2015 USD USD US$ US$ (17,001) (22,420) £ £ (0.01) (0.01) 0.10 0.05 Conservative Conservative International International International International 13,859,091 16,785,419 Multi Asset Multi Asset (continued) 3,846,257 1,032,073 4,431,501 Bond Bond 239,956 152,512 424,648 Fund Fund Fund Fund 2016 2015 2016 2015 £ £ £ £ 0.06 0.07 0.03 0.03 50,987,420 58,086,736 Multi Asset Multi Asset 4,796,614 7,573,437 5,515,343 1,953,228 Income Income Growth Growth Fixed Fixed 169,701 301,326 Fund Fund 2016 2015 2016 2015 EUR EUR £ £ £ £ 0.15 0.03 0.04 0.05 International International International International 14,084,001 16,726,584 4,627,592 3,378,008 Equity Equity (126,651) Trojan Trojan 749,909 849,253 Fund Fund Fund Fund 2016 2015 2016 2015 29,875 £ £ £ £ (0.15) 0.33 0.20 0.04 Currency Currency 4,090,261 4,469,049 Fund Fund 2016 2015 GBP GBP (9,342) (9,511) £ £ (0.00) (0.00) 51 Annual Report & Audited Financial Statements 52 Annual Report & Audited Financial Statements account. As a result, a relatively small price movement in sizes, ahighdegree ofleveragemaybetypicalafutures deposits normallyrequired inrelation tonotional contract these instruments.Inaddition, becauseofthelowmargin exchange rates, indices and securities values underlying risks ariseduetothepossible movement inforeign currency in marketpricesrelative tocontractedamounts.Market Futures result inexposure tomarket riskbasedonchanges July 2016. redemption oftheinvestmentinrelevant fundasat31 from theamountswhichwouldhavebeenrealised from a 2016, maybeunauditedasatthatdateanddiffer fund administratorsandusedbytheDirectors asat31July reported bytherelevant fund managersand/ortherelevant fund at the last valuation date is used. The net asset values date of the Company and in such cases the valuation of the each fundmaynotalwaysbecoterminouswiththevaluation fund managerorrelevant administrator. Thevaluationdateof of thefundsandasnotifiedtoCompanybyrelevant valuation dateasdeterminedinaccordance withtheterms funds atthenetassetvalueoffundasrelevant The Directors valuedallthe investmentsinotherinvestment and supplementalschemeparticulars. with theinvestmentparametersasdisclosedinitsprospectus investments. TheCompany’s investmentportfoliocomplies mainly ofmovementsinthevalueCompany’s The Company’s exposure tomarketpriceriskiscomprised policy ofeachcell. of theinvestmentportfolioinaccordance withtheinvestment InvestmentFundManagerthroughAlternative diversification onerous. TheCompany’s marketpriceriskismanagedbythe prices maymakeafinancialinstrumentlessvaluableormore Market priceriskisthepossibilitythatfuture changesinmarket Market pricerisk risk. risk, interest rate risk, liquidity risk, currency risk and credit from theCompany’s financialinstrumentsare marketprice a recognised investmentexchange.Themainrisksarising held by the Company mainly consist of securities quoted on directly from the Company’s operations. The instruments and variousitemssuchasdebtorscreditors thatarise investments, derivatives,somecashandliquidresources The financialinstrumentsheldbytheCompanycomprise remained unchangedduringtheyearunderreview. exposure. Thesepoliciesare summarisedbelowandhave The Board reviews andagrees policiesformanagingitsrisk associated risks 16. Financial instruments and There are nocontingentliabilitiesatthebalancesheet date. 15. Contingent liabilities Notes to the Financial Statements (2) (1) publicly traded.Thelevelsofthehierarchy are asfollows: or whosefairvaluecanbereliably measured iftheyare not estimate the fair value of investments that are publicly traded section 34 which establishes a hierarchy to be used to The Company has adopted “Amendments to FRS 102”, Fair value to substantiallosses. liquidating unfavourablepositionsandcouldthusbesubject limits, theCompanycouldbeprevented from promptly If pricesfluctuateduringasingleday’s tradingbeyondthose price duringasingleday’s tradingbeyondcertainsetlimits. futures contractsatpricesthatrepresent afluctuationin Certain futures exchangesdonotpermittradinginparticular losses totheCompany. Futures tradingmayalsobeilliquid. an underlyingofafutures contractmayresult insubstantial recent transactionsormarketinformationavailable. are notreadily available andare valuedbasedon themost not quotedinanactivemarket orhavemarketvalueswhich Level 3investments-Theseincludewhichare sources thatare activelyinvolvedintherelevant market. and verifiable,notproprietary, andprovided byindependent readily available,regularly distributedorupdated,reliable consider observabledatatobethatmarketis requires significantjudgementbythedirectors. Thedirectors The determinationofwhatconstitutes“observabledata” liability. judgement, consideringfactorsspecifictotheassetor input tothefairvaluemeasurement initsentirety requires 3 measurement. Assessing thesignificanceofaparticular based onunobservableinputs,thatmeasurement isalevel uses observableinputsthatrequire significantadjustment measurement in its entirety. If a fair value measurement significance ofaninputisassessedagainstthefairvalue fair value measurement in its entirety. For this purpose, the the basisoflowestlevelinputthatissignificantto measurement iscategorised initsentirety isdeterminedon The levelinthefairvaluehierarchy withinwhichthefairvalue (3) observable marketdataandwillgenerallyinclude derivatives. equities, some highly liquid bonds and exchange traded instrument inanactivemarketandwillgenerallyinclude market data. include valuesnotprimarilyderivedfrom observable significantly onnon-observablemarketdataandwill curves orcredit spreads. quoted pricesforsimilarinstruments,interest rates,yield evaluated pricing techniques using inputs such as Fair valuebasedonavaluationtechniqueusing Fair valuebasedonaquotedpriceforanidentical Fair valuebasedonavaluationtechniquethatrelies (continued) The followingtableanalyseswithinthefairvaluehierarchy theCompany’s investmentsmeasured atfairvalue: 16. Financial instruments and associated risks (continued) Notes to the Financial Statements *There were notransfers toorfrom level3duringtheyear(2015: None). Level 2 Level 1 Level 2 Level 1 Level 3* Level 2 Level 1 Level 3* Level 3* Level 2 Level 1 Level 3* International International International International 207,721,375 207,241,959 195,157,807 194,798,981 3,578,601 3,578,601 3,236,064 3,236,064 Bond Bond Fund Fund 2015 2015 2016 2016 Total Total 479,416 358,826 £ £ £ £ ------29,977,608 29,977,608 31,301,188 31,301,188 Sterling Sterling 4,656,296 4,906,044 4,906,044 4,656,296 Income Income Income Income Fixed Fixed Fixed Fixed Fund Fund 2016 2016 2015 2015 EUR EUR £ £ £ £ ------Multi Asset Multi Asset 71,778,749 71,774,205 83,621,296 83,600,563 Balanced Balanced (continued) Trojan Trojan Fund Fund Fund Fund 2016 2015 2016 2015 451,435 451,435 352,693 352,693 20,733 £ £ £ £ 4,544 ------Conservative Conservative Multi Asset Multi Asset 12,721,830 12,720,430 13,240,972 13,234,586 Fund Fund 2016 2015 £ £ 1,400 6,386 - - Multi Asset Multi Asset 50,627,245 50,627,056 50,429,390 50,428,528 Growth Growth Fund Fund 2016 2015 £ £ 189 862 - - International International International International 22,541,871 22,541,871 21,624,964 21,624,964 Equity Equity Fund Fund 2016 2015 £ £ - - - - 53 Annual Report & Audited Financial Statements 54 Annual Report & Audited Financial Statements exposure. short positionswithaviewto hedgingtheCells’currency swaps andforward foreign exchangecontractsandtake into transactions in derivative instruments such as options, Manager may from time to time arrange for the Cells to enter different from thebasecurrency oftheCompany. The and ariseswhere instrumentsare denominatedinacurrency will fluctuatebecauseofchangesinforeign exchangerates Currency riskisthethatvalueofafinancialinstrument Currency risk borrowing facilityandisfurtherdisclosedinNote18. The Companyalsomanagesitsliquidityriskthrough its assessing theliquidityriskofinvestments. further disclosure onthematurityofinvestmentsismadein or likelihoodofreceipt ofcash atmaturity. Consequently, no be obtainedanddoesnotgenerallyrelate tothecredit risk to theabilityeasilydisposeofsecurityandprice otherwise considered illiquid. Liquidity of asecurity relates may lackanestablishedsecondarytradingmarketorare markets. TheCompanymayalsoinvestinsecurities which comprise securitieswhichare tradedinrecognised financial are within1year. SomeoftheCompany’s investmentsmay investments) relating tothe cashandinvestmentactivities liabilities (excludingparticipatingredeemable shares and The maturityoftheCells’cashandfinancialassets commitments. realising assetsorotherwise raisingfundstomeetfinancial Liquidity riskisthethatCompanywillencounterwhen Liquidity risk restrictions havebeenbreached. are monitored post-tradetoensure noinvestmentlimit are taken into consideration when investing. Allportfolios Investment limitrestrictions withintheSchemeParticulars A Cell may invest in collective investment schemes. rating byMoody’s InvestorsService. BranchwhichhasbeenassignedaP-1 SCA -Guernsey Company holdscashwithBNPParibasSecuritiesServices which theCompanyholdscashandequivalents.The monitors thecreditworthiness ofthecounterpartieswith Investment Fund Manager also investments. The Alternative companies aspartofitsnormalscrutinyprospective investment byperformingfinancialanalysisontheissuing Manager assessestheriskassociatedwithfixedinterest into withtheCompany. InvestmentFund TheAlternative unable or unwilling to meet a commitment that it has entered Credit riskisthethatanissuerorcounterpartywillbe Credit risk associated risks (continued) 16. Financial instruments and Notes to the Financial Statements interest rates relates primarily to theCompany’s investments The Company’s exposure tomarketriskforchangesin Interest rateandcurrency risk of BNPParibasandare therefore protected. that theCompany’s assetsare segregated from theassets non-trading nomineecompany. Thisarrangementensures to custodyriskbyholdingtheassetsofCompanyina The Custodianensures thattheCompanyisnotexposed Law,of Guernsey) 1987(asamended). under the provisions of the Protection of Investors (Bailiwick Branch,islicensedbytheGFSC Services SCA-Guernsey agreement dated12October2012.BNPParibasSecurities and the assets of the Cells contained therein byan BranchastheCustodianofCompany SCA -Guernsey The CompanyappointedBNPParibasSecuritiesServices or fraudulentactionoftheCustodianaSub‑Custodian. securities heldincustodyasaresult ofinsolvency, negligence Custody riskisthethatCompanywillsuffer thelossof Custody risk in corporate and government loansaswellcash. in corporateandgovernment (continued) The interest rateprofile oftheCompany’s fixedcoupondebtinstrumentsasat31July2016: Interest rateandcurrency risk(continued) 16. Financial instruments and associated risks (continued) Notes to the Financial Statements * Theweightedaverageinterest rateisbasedonthecurrent couponofeachassetweightedbyitsmarketvalue. Government Bonds Government Corporate Bonds Elite EURFixedIncomeFund Bonds Government Corporate Bonds BondFund Elite International Bonds Government Corporate Bonds Multi AssetGrowth Fund Bonds Government Corporate Bonds Multi AssetConservativeFund Bonds Government Corporate Bonds Sterling FixedIncomeFund Government Bonds Government Corporate Bonds Multi AssetBalancedFund Total asperPortfolio Total asperPortfolio Total asperPortfolio Total asperPortfolio Total asperPortfolio Total asperPortfolio Statement Statement Statement Statement Statement Statement 2016 2016 2016 2016 2016 2016 £ £ £ £ £ £ 29,977,608 11,952,778 18,024,830 16,850,711 16,850,711 5,160,329 4,081,215 1,079,114 3,236,064 1,371,303 4,656,296 1,472,280 3,184,016 1,864,761 3,838,151 3,838,151 - - Weighted average Weighted average Weighted average Weighted average Weighted average Weighted average interest rate* interest rate* interest rate* interest rate* interest rate* interest rate* (continued) 2016 2016 2016 2016 2016 2016 % % % % % % 4.67% 3.29% 4.20% 3.14% 1.51% 4.19% 2.78% 3.69% 3.48% 3.56% - - period untilmaturity period untilmaturity period untilmaturity period untilmaturity period untilmaturity period untilmaturity Weighted average Weighted average Weighted average Weighted average Weighted average Weighted average Years Years Years Years Years Years 2016 2016 2016 2016 2016 2016 5.99 8.94 7.32 3.84 6.67 7.14 0.36 6.60 7.76 5.20 - - 55 Annual Report & Audited Financial Statements 56 Annual Report & Audited Financial Statements * Theweightedaverageinterest rateisbasedonthecurrent couponofeachassetweightedbyitsmarketvalue. The interest rateprofile oftheCompany’s fixedcoupondebtinstrumentsasat31July2015: Interest rateandcurrency risk(continued) 16. Financial instruments and associated risks (continued) Notes to the Financial Statements Government Bonds Government Corporate Bonds Multi AssetConservativeFund Bonds Government Corporate Bonds Multi AssetBalancedFund Bonds Government Corporate Bonds Sterling FixedIncomeFund Government Bonds Government Corporate Bonds Elite EURFixedIncomeFund Bonds Government Corporate Bonds BondFund Elite International Bonds Government Corporate Bonds Multi AssetGrowth Fund Total asperPortfolio Total asperPortfolio Total asperPortfolio Total asperPortfolio Total asperPortfolio Total asperPortfolio Statement Statement Statement Statement Statement Statement 2015 2015 2015 2015 2015 2015 £ £ £ £ £ £ 31,301,188 12,866,590 18,434,598 13,561,698 13,561,698 6,773,107 3,490,970 3,282,137 4,906,044 1,924,231 2,981,813 3,388,450 2,027,279 1,361,171 2,192,410 2,192,410 - - Weighted average Weighted average Weighted average Weighted average Weighted average Weighted average interest rate* interest rate* interest rate* interest rate* interest rate* interest rate* (continued) 2015 2015 2015 2015 2015 2015 % % % % % % 2.91% 6.21% 4.13% 2.97% 1.14% 4.75% 2.58% 5.92% 3.73% 5.66% - - period untilmaturity period untilmaturity period untilmaturity period untilmaturity period untilmaturity period untilmaturity Weighted average Weighted average Weighted average Weighted average Weighted average Weighted average Years Years Years Years Years Years 2015 2015 2015 2015 2015 2015 10.12 15.10 13.14 7.35 8.21 4.61 8.32 0.76 8.37 7.97 - - The interest rateandcurrency profile oftheCompanyasat31July2016isfollows: Interest rateandcurrency risk(continued) 16. Financial instruments and associated risks (continued) Notes to the Financial Statements Euro Multi AssetGrowth Fund Balance at31July2016 US dollars Sterling Euro Multi AssetConservativeFund Balance at31July2016 US dollars Sterling Euro Multi AssetBalancedFund Balance at31July2016 Sterling Sterling FixedIncomeFund Balance at31July2016 Sterling Euro Euro Currency Fund Balance at31July2016 Sterling Sterling Currency Fund Balance at31July2016 US dollars Swiss franc Swedish Krona Sterling Japanese yen Hong Kongdollar Euro Canadian dollars Australian dollars EquityFund International Balance at31July2016 US dollars Sterling 22,721,862 55,423,201 13,822,088 11,399,220 54,193,119 13,600,380 30,104,089 30,104,089 81,826,137 80,867,517 1,709,843 1,136,404 2,832,420 2,491,064 4,002,318 4,004,518 3,403,680 3,403,680 907,566 926,213 944,666 374,466 418,822 811,260 196,678 Total Total Total Total Total Total Total 400,753 557,867 25,030 (2,200) € £ £ £ £ £ £ Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on which nointerest ispaid which nointerest ispaid which nointerest ispaid which nointerest ispaid which nointerest ispaid which nointerest ispaid which nointerest ispaid £ £ £ € £ £ £ 59,790,426 22,529,616 11,308,622 46,935,619 46,731,271 59,939,119 7,547,080 1,691,181 1,114,190 2,832,420 2,472,475 7,573,794 (continued) 103,453 889,716 926,213 928,716 366,083 161,367 23,678 45,240 42,981 30,884 30,884 (2,835) (1,556) (2,200) (1,556) 3,036 (635) 16,850,711 16,850,711 27,477,457 27,477,457 Fixed rate Fixed rate Fixed rate Fixed rate Fixed rate Fixed rate Fixed rate 4,628,270 3,838,152 3,838,152 4,628,270 assets assets assets assets assets assets assets £ £ £ € £ £ £ ------Floating rateassets/ Floating rateassets/ Floating rateassets/ Floating rateassets/ Floating rateassets/ Floating rateassets/ Floating rateassets/ (liabilities) (liabilities) (liabilities) (liabilities) (liabilities) (liabilities) (liabilities) £ £ £ € £ £ £ 1,425,030 4,226,380 4,005,153 3,405,236 4,649,430 3,623,696 1,620,024 5,036,307 2,595,748 2,595,748 4,005,153 3,405,236 173,000 355,513 454,414 192,246 375,841 649,893 21,994 90,598 17,850 15,950 18,662 22,214 18,589 8,383 - - - 57 Annual Report & Audited Financial Statements 58 Annual Report & Audited Financial Statements and floatingratenoteinvestments. The floatingratefinancialassetscomprisebankbalancesthatbearinterest basedontheratesprevailing foreachcurrency Interest rateandcurrency risk(continued) 16. Financial instruments and associated risks (continued) Notes to the Financial Statements Balance at31July2016 Sterling Elite Trojan Fund Balance at31July2016 US dollars Sterling Euro EUR FixedIncomeFund Balance at31July2016 US dollars Sterling BondFund International Balance at31July2016 U.S Dollars Sterling US DollarCurrency Fund 4,735,076 4,082,491 3,305,442 2,707,370 1,141,448 1,143,244 367,133 367,133 655,459 598,072 Total Total Total Total US$ (2,874) (1,796) £ € £ Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on which nointerest ispaid which nointerest ispaid which nointerest ispaid which nointerest ispaid US$ € £ £ (continued) 352,132 352,132 44,903 44,206 27,429 24,761 (1,539) (2,462) (1,796) 1,765 2,668 257 Fixed rate Fixed rate Fixed rate Fixed rate 4,008,093 4,656,296 2,736,065 2,149,945 assets assets assets assets 648,203 586,120 US$ € £ £ ------Floating rateassets/ Floating rateassets/ Floating rateassets/ Floating rateassets/ (liabilities) (liabilities) (liabilities) (liabilities) US$ € £ £ 1,142,987 1,142,987 541,948 532,664 29,495 15,001 15,001 34,574 5,491 9,284 (412) The interest rateandcurrency profile oftheCompanyasat31July2015isfollows: Interest rateandcurrency risk(continued) 16. Financial instruments and associated risks (continued) Notes to the Financial Statements Balance at31July2015 US dollars Sterling Euro Multi AssetConservativeFund Balance at31July2015 US dollars Sterling Euro Multi AssetBalancedFund Balance at31July2015 US dollars Sterling Euro Sterling FixedIncomeFund Balance at31July2015 Sterling Euro Euro Currency Fund Balance at31July2015 Sterling Sterling Currency Fund Balance at31July2015 US dollars Swiss franc Sterling Japanese yen Hong Kongdollar Euro Canadian dollars Australian dollars EquityFund International Balance at31July2015 US dollars Sterling Euro Multi AssetGrowth Fund 53,391,864 13,998,901 21,690,713 13,072,869 51,715,482 13,478,670 89,231,243 86,980,224 32,272,882 32,249,885 1,648,890 1,381,979 1,838,857 1,639,394 1,215,421 1,829,956 2,524,945 4,758,171 4,760,938 4,343,434 4,343,434 (153,574) (273,926) 570,437 322,866 546,648 (26,417) Total Total Total Total Total Total Total 22,997 (2,767) € £ £ £ £ £ £ - Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on which nointerest ispaid which nointerest ispaid which nointerest ispaid which nointerest ispaid which nointerest ispaid which nointerest ispaid which nointerest ispaid £ £ £ € £ £ £ 70,014,823 21,613,739 13,056,606 48,145,485 48,161,155 69,993,049 1,648,972 1,447,935 1,838,857 1,639,394 1,215,421 6,422,499 6,434,501 (continued) 443,688 322,866 (102,540) 47,480 13,469 86,870 (14,901) (69,254) 13,469 (3,576) (1,517) (1,517) 2,899 (2,767) (809) - - 13,561,698 13,561,698 27,977,263 27,977,263 Fixed rate Fixed rate Fixed rate Fixed rate Fixed rate Fixed rate Fixed rate 2,192,410 2,192,410 5,130,073 5,130,073 assets assets assets assets assets assets assets £ £ £ € £ £ £ ------Floating rateassets/ Floating rateassets/ Floating rateassets/ Floating rateassets/ Floating rateassets/ Floating rateassets/ Floating rateassets/ (liabilities) (liabilities) (liabilities) (liabilities) (liabilities) (liabilities) (liabilities) £ £ £ € £ £ £ 2,477,465 3,403,703 4,259,153 4,761,747 4,344,951 3,053,969 1,743,086 1,361,917 5,676,496 4,282,150 4,761,747 4,344,951 2,446,329 1,914,096 126,749 543,749 (204,672) 22,997 76,974 16,263 (11,516) (65,956) (51,034) (82) ------59 Annual Report & Audited Financial Statements 60 Annual Report & Audited Financial Statements no ultimatecontrolling partyintheCompany. The issuedshare capitaloftheCompanyisownedbynumerous partiesandtherefore, intheopinionofDirectors, there is 19. Ultimate Controlling Party € Growth EquityFund £Nil(2015:£65,956)andEURFixedIncomeFund Fund£Nil(2015:£51,034),International £Nil (2015:£204,672),KleinwortBensonMultiAssetConservative Fund£Nil(2015:£11,516),KleinwortBensonMultiAsset The Companyhaddrawndownthefollowingamountsas at 31July2016:KleinwortBensonMultiAssetBalancedFund out ofthefailure oftransactionstosettleintheexpectedtimescale. The facilitywillbemadeavailableforamaximumof5consecutive daysandisprimarilyavailabletomeetanyshortfallarising At 31July2016theCompanyhada£6,000,000facilitywith BNPParibastoutiliseonbehalfofallthecells. 18. Borrowing facilities Refer toBorrowing facilitiesnote 18where borrowings havebeendisclosed. so astobeablemeettheredemption requests oftheunitholders. of thecells.TheManagermonitorsrisksassociatedwithinvestedcapital,includingmanagingliquidityFund The capitalstructure ofthe FundatperiodendconsistsofthenetassetsattributabletoParticipatingShareholders ofeach 17. Capital Management and floatingratenoteinvestments. The floatingratefinancialassetscomprisebankbalancesthatbearinterest basedontheratesprevailing foreachcurrency Interest rateandcurrency risk(continued) 16. Financial instruments and associated risks (continued) Notes to the Financial Statements Balance at31July2015 Sterling Elite Trojan Fund Balance at31July2015 US dollars Sterling Euro EUR FixedIncomeFund Balance at31July2015 US dollars Sterling BondFund International Balance at31July2015 U.S Dollars Sterling US DollarCurrency Fund 109,798). 4,861,502 4,499,448 3,880,831 3,271,457 1,443,058 1,445,196 481,631 481,631 365,270 609,374 Total Total Total Total US$ (3,216) (2,138) £ € £ Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on Financial assets/(liabilities)on which nointerest ispaid which nointerest ispaid which nointerest ispaid which nointerest ispaid US$ € £ £ (continued) 450,754 450,754 211,020 191,248 60,843 58,947 19,772 (2,322) 1,326 (3,222) (2,138) (184) Fixed rate Fixed rate Fixed rate Fixed rate 4,548,403 4,906,044 3,388,450 2,979,885 assets assets assets assets 357,641 408,565 US$ € £ £ ------Floating rateassets/ Floating rateassets/ Floating rateassets/ Floating rateassets/ (liabilities) (liabilities) (liabilities) (liabilities) US$ € £ £ 1,445,380 1,445,380 € (103,489) (109,798) 281,361 271,800 30,877 30,877 Nil (2015: 6,303 9,561 6 - Fixed IncomeFund Bond Fund£22,516andKleinwortBensonEUR EquityFund£1,011,KleinwortBensonInternational Benson International On 31October2016thefollowingdividendswere declared: KleinwortBensonSterlingFixedIncomeFund£247,501, Fund £127,826 andKleinwort Benson EUR Fixed Income Fund Equity Multi AssetGrowthBondFund£27,910,KleinwortBensonInternational Fund£315,580, KleinwortBensonInternational Benson Multi Asset Balanced Fund £808,979, Kleinwort Benson Multi Asset Conservative Fund £118,993, Kleinwort Benson On 31July2016thefollowingdividendswere declared: KleinwortBensonSterlingFixedIncomeFund£259,314, Distributions 31 October2016. *The KBEliteTrojan Fundiscurrently intheprocess ofbeingrealised. Themostrecent valuationdateoftheCellwas takes intoaccountroutine transactionsbutalsoreflects themarketmovementsinrecent months. Subsequent totheyearend,netassetvalueperunitofcellshavechangedassetoutintablesbelow. Thismovement 20. Events after the Balance Sheet Date Notes to the Financial Statements Trojan Fund* EUR FixedIncomeFund BondFund International USD Currency Fund EUR Currency Fund GBP Currency Fund EquityFund International Multi AssetGrowth Fund Multi AssetConservativeFund Multi AssetBalancedFund Sterling FixedIncomeFund Cell £ 28,991. Thesedividendswillbepaidon31December2016. Net AssetValue Per Share asat 31 July2016 0.61 1.00 0.99 0.95 0.97 0.99 1.75 1.15 1.04 1.20 3.31 16 November2016 Net AssetValue Per Share asat 0.61 0.97 0.98 0.95 0.97 0.99 1.80 1.20 1.06 1.24 3.20 € 38,775. Thesedividends were paidon 30 September2016. (continued) Net AssetValue (Decrease) in Increase / (0.03) (0.01) (0.11) 0.05 0.05 0.02 0.04 - - - - % Change (3.0) (1.0) (3.3) 2.9 4.3 1.9 3.3 - - - -

61 Annual Report & Audited Financial Statements 62 Annual Report & Audited Financial Statements Standard &Poorscredit ratingagency. TheCellhaselected held bytheCellrangedfrom AAAtoBBB-asprovided by As at31July2016,thecredit ratingofthedebtinvestments of DepositandFloatingRateNotes. listed orquotedsecuritieswiththeexceptionofCertificates The investments held by thecellasat 31 July2016were all As at31July2016 Kleinwort Benson Sterling Fixed Income Fund Investments of Portfolio Cell 1,000,000 750,000 815,000 1,000,000 500,000 900,000 1,450,000 1,550,000 800,000 600,000 3,000,000 1,100,000 Nominal 500,000 550,000 950,000 750,000 750,000 850,000 1,000,000 1,500,000 1,000,000 775,000 500,000 550,000 560,000 350,000 700,000 1,000,000 Net AssetsattributabletoParticipatingShareholders asat31July2016 Net Current Assets0.42%(2015:3%) Total Investments99.58%(2015:97%) Anheuser-Busch 9.75%30/07/2024 Ladbrokes Group FinancePlc5.125%16/09/2022 Lloyds BankingGrp7.625%27/06/2023 EDP FinanceB8.625%04/01/2024 Barclays BankPlc14%15/06/2020 Hill4.875%7/9/2023 William Verizon Communications4.073%18/06/2024 Sanuk 0.82325%20/01/2017 Nordea Bank2.125%13/11/2019 Morrison (W)Supermarket3.5%27/07/2026 KFW 1.125%23/12/2019 GKN plc5.375%19/09/2022 Experian Financeplc3.5%15/10/2021 Daimler AG3.5%06/06/2019 Commonwealth BankofAustralia1.28%26/10/2018 BPCE 1.37125%06/03/2017 Barclays BankFloating0.57188%15/09/2017 GroupAmerican InternationaI 5%26/04/2023 Admiral Group 5.5%25/07/2024 Tesco Plc5%24/03/2023 National GridElectricityTrans. 5.875%02/02/2024 Corporate Bonds59.88%(2015:57.13%) 2.75%07/9/2024 UK Government 4.25%07/12/2027 UK Government 5%07/03/2025 UK Government UK Treasury 4%07/03/2022 UK Treasury 3.75%07/09/2020 2.25%07/09/2023 UK Government 1.875%22/11/2022 UK Government Bonds39.70%(2015:39.87%) Government Description any significantmeaningfulinformation. providing abreakdown onthisbasisisnotdeemedtoadd element oftheportfolioisdeemedtobelowandassuch investment gradeandtherefore thelevelofcredit riskinthis by credit rating as there are no debt investments below not topresent thedebtelement oftheportfoliobroken down Cost £ 10,816,758 28,278,656 17,461,898 1,004,000 1,000,800 1,068,949 1,823,431 1,862,837 2,885,130 1,650,901 1,023,750 1,062,800 1,502,700 1,009,450 601,821 587,720 369,880 703,290 798,075 826,655 589,475 971,851 946,024 676,584 764,250 550,000 999,750 937,875 851,420 706,498 502,740 Market Value £ 11,952,778 30,104,089 29,977,608 18,024,830 1,001,600 1,078,550 1,053,720 1,980,265 2,120,400 3,372,600 1,773,253 1,030,612 1,181,450 1,500,450 1,043,150 643,225 618,968 376,443 701,260 999,700 873,788 857,828 664,275 964,400 688,140 126,481 806,150 589,463 954,370 945,899 870,698 773,876 513,075 Assets % ofNet 100.00 39.70 11.20 99.58 59.88 2.14 2.06 1.25 2.33 3.33 3.32 2.90 2.85 3.58 2.22 3.50 6.58 7.04 3.20 2.29 5.89 0.42 2.68 1.96 3.17 3.42 3.14 2.89 3.92 4.98 3.47 2.57 1.70 Standard &Poorscredit ratingagency. TheCellhaselected held bytheCellrangedfrom AAAtoBBB-asprovided by As at31July2016,thecredit ratingofthedebtinvestments of DepositandFloatingRateNotes. listed orquotedsecuritieswiththeexceptionofCertificates The investments held by thecellasat 31 July2016were all As at31July2016 Kleinwort Benson Elite Multi Fund Balanced Asset Cell PortfolioofInvestments 195,042 4,134,929 2,913,674 1,354,073 6,444,564 2,659,781 11,545,000 1,310,000 Nominal 561,734 16,788 407,829 25,013 1,088,231 2,084,984 398,163 5,552,968 Net AssetsattributabletoParticipatingShareholders asat31July2016 Net Current Assets12.28%(2015:6.29%) Total Investments87.72%(2015:93.71%) Duet RealEstateFinance United Kingdom0.10%(2015:8.10%) Equities 0.10%(2015:8.10%) Tokio-Marine Funds Pimco Global Legg MasonFDClearbridge J OHambro Capital Hermes InvestmentManagement GO UCITSETFSolutions FIL InvestmentManagement Euroland 38.70%(2015:8%) Tapestry InvestmentCoPccLtd Kames CapitalHighYield BondFund Threadneedle UKInc JP MorganUKLtd FIL InvestmentServices FIL InvestmentServices(UK)LimitedInstitutionalEmergingMarketsWAcc United Kingdom28.33%(2015:70.41%) Funds 67.03%(2015:70.41%) 4.75%07/03/2020 UK Government 2%26/01/2035 UK Government United Kingdom20.59%(2015:15.20%) Bonds20.59%(2015:15.20%) Government Description (continued) any significantmeaningfulinformation. providing abreakdown onthisbasisisnotdeemedtoadd element oftheportfolioisdeemedtobelowandassuch investment gradeandtherefore thelevelofcredit riskinthis by credit rating as there are no debt investments below not topresent thedebtelement oftheportfoliobroken down Cost £ 20,205,376 16,782,012 13,606,572 65,389,213 28,088,892 3,909,532 3,628,162 2,824,111 3,782,130 5,502,991 4,146,653 3,757,252 2,174,641 7,485,062 2,626,800 3,175,440 2,887,335 5,554,631 312,933 312,933 14,968 Market Value £ 23,183,114 16,850,711 13,467,243 81,826,137 10,047,388 71,778,749 31,664,877 4,755,472 4,133,101 3,306,993 4,063,253 6,324,831 4,076,627 4,100,121 2,488,786 9,241,505 3,271,531 3,383,468 3,326,760 5,754,467 80,047 80,047 4,544 Assets % ofNet 100.00 28.33 11.29 20.59 16.46 12.28 87.72 38.70 5.81 5.05 4.04 4.97 7.73 0.01 4.98 5.01 3.04 4.00 4.13 0.10 0.10 4.07 7.03 63 Annual Report & Audited Financial Statements 64 Annual Report & Audited Financial Statements Standard &Poorscredit ratingagency. TheCellhaselected held bytheCellrangedfrom AAAtoBBB-asprovided by As at31July2016,thecredit ratingofthedebtinvestments of DepositandFloatingRateNotes. listed orquotedsecuritieswiththeexceptionofCertificates The investments held by thecellasat 31 July2016were all As at31July2016 Kleinwort Benson Multi Conservative Asset Fund Cell PortfolioofInvestments 1,053,630 252,031 527,000 547,000 1,200,000 1,546,000 395,000 Nominal 1,555 429,000 68,655 51,672 198,975 42,000 388,795 60,079 533,502 197,887 10,610 30,000 Net AssetsattributabletoParticipatingShareholders asat31July2016 Net Current Assets7.97%(2015:5.40%) Total Investments92.03%(2015:94.60%) Tokio-Marine Funds Inc Smith &Williamson Pimco Global J OHambro Capital Hermes InvestmentManagement GO UCITSETFSolutions FIL InvestmentManagement Euroland 25.02%(2015: 0%) Tapestry InvestmentCompany Kames CapitalHighYield BondFund Threadneedle UKInc iShares IVPlc iShares FTSE FIL InvestmentServices FIL InvestmentServices(UK)LimitedInstitutionalEmergingMarketsWAcc United Kingdom29.67%(2015:41.49%) Funds 54.69%(2015:41.49%) Abbey NationalTreasury ServicesPlc2.2175%05/04/2017 National AustraliaBank0.8125%12/08/2016 United Kingdom7.81%(2015:23.45%) Corporate Bonds7.81%(2015:23.45%) 1.75%GILTUK Government 22/07/2019 4.75%07/03/2020 UK Government 2%26/01/2035 UK Government United Kingdom29.53%(2015:24.93%) Bonds29.53%(2015:24.93%) Government Description (continued) any significantmeaningfulinformation. providing abreakdown onthisbasisisnotdeemedtoadd element oftheportfolioisdeemedtobelowandassuch investment gradeandtherefore thelevelofcredit riskinthis by credit rating as there are no debt investments below not topresent thedebtelement oftheportfoliobroken down Cost £ 12,019,576 1,065,562 1,250,360 1,094,525 4,018,968 1,241,112 1,820,376 3,176,461 3,729,622 514,697 263,863 381,975 248,906 547,095 547,430 957,480 268,729 413,213 935,081 505,674 269,512 398,956 385,296 4,259 Market Value £ 13,822,088 12,721,830 1,064,554 1,510,905 1,079,114 4,081,215 1,257,600 1,803,409 1,020,206 1,100,258 3,459,047 4,102,454 525,980 278,467 411,150 309,998 532,059 547,055 308,143 419,090 968,722 576,050 315,594 428,610 442,838 1,400 Assets % ofNet 100.00 10.93 29.53 13.05 92.03 25.02 29.67 0.01 3.81 2.01 7.70 2.97 2.24 7.81 3.85 3.96 9.10 7.38 7.97 2.23 3.03 7.01 4.17 2.28 3.10 3.20 Standard &Poorscredit ratingagency. TheCellhaselected held bytheCellrangedfrom AAAtoBBB-asprovided by As at31July2016,thecredit ratingofthedebtinvestments of DepositandFloatingRateNotes. listed orquotedsecuritieswiththeexceptionofCertificates The investments held by thecellasat 31 July2016were all As at31July2016 Kleinwort Benson Multi Fund Growth Asset Cell PortfolioofInvestments 8,113 2,254,977 1,530,036 1,212,575 3,972,097 3,325,559 2,615,000 305,000 Nominal 434,628 15,140 14,655 33,147 143,564 21,621 1,006,109 2,251,138 265,000 3,425,301 Net AssetsattributabletoParticipatingShareholders asat31July2016 Net Current Assets8.67%(2015:5.56%) Total Investments91.33%(2015:94.44%) Duet RealEstateFinance United Kingdom0.11%(2015:6.700%) Equities 0.11%(2015:6.77%) Wells FargoUSGrowth Tokio-Marine Funds Powershares Global Pimco Global Legg MasonFDClearbridge J OHambro Capital Hermes InvestmentManagement GO UCITSETFSolutions FIL InvestmentManagement Euroland 54.17%(2015:0%) Tapestry InvestmentCoPccLtd Threadneedle UKInc Kames CapitalHighYield BondFund JP MorganUKLtd FIL InvestmentServices FIL InvestmentServices(UK)LimitedInstitutionalEmergingMarketsWAcc United Kingdom30.13%(2015:83.56%) Funds 84.30%(2015:83.56%) 4.75%07/03/2020 UK Government Treasury 2%26/01/2035 United Kingdom6.92%(2015:4.11%) Bonds6.92%(2015:4.11%) Government Description (continued) any significantmeaningfulinformation. providing abreakdown onthisbasisisnotdeemedtoadd element oftheportfolioisdeemedtobelowandassuch investment gradeandtherefore thelevelofcredit riskinthis by credit rating as there are no debt investments below not topresent thedebtelement oftheportfoliobroken down Cost £ 14,185,266 44,127,818 25,925,011 3,379,362 3,354,367 3,049,166 2,517,221 3,394,473 2,849,712 1,485,359 1,947,395 4,614,128 3,287,989 3,788,595 3,076,871 3,311,724 2,532,623 2,430,733 1,955,342 711,724 228,946 228,946 683 Market Value £ 16,696,993 55,423,201 50,627,245 30,030,167 4,110,585 3,821,202 3,570,530 2,704,325 3,901,418 3,173,204 1,508,462 2,228,713 5,695,987 4,090,438 3,838,151 3,050,397 4,795,956 4,097,944 2,904,079 2,894,396 2,025,688 787,754 61,934 61,934 189 Assets % ofNet 100.00 30.13 10.28 91.33 54.17 7.42 6.89 6.44 4.88 7.04 5.73 2.72 4.02 7.38 6.92 5.50 1.42 8.67 0.11 0.11 7.39 5.24 5.22 3.65 - 65 Annual Report & Audited Financial Statements 66 Annual Report & Audited Financial Statements As at31July2016 Kleinwort Benson Elite International Equity Fund Cell PortfolioofInvestments 11,280 10,872 9,547 15,234 274,400 91,500 8,000 16,700 8,600 71,000 787,000 6,000 Nominal 6,525 4,710 12,531 6,021 4,159 21,420 2,804 8,916 4,728 4,385 5,121 8,170 5,926 13,200 12,765 8,034 17,541 18,279 10,560 17,048 2,974 880 12,211 35,662 9,513 16,087 3,401 3,531 53,771 44,600 47,902 7,900 35,100 5,150 6,200 8,493 8,450 Dr PepperSnappleGroup Inc Smucker(J.M.) Co Waste ManagementInc United Technologies Corp Teleflex Inc Service CorporationInternational Lockheed MartinCorporation Jack Henry&AssociatesInc Flavors&Fragrances International General DynamicsCorporation Nextera EnergyInc Cintas Corporation Berkshire HathawayClass'b' Wells FargoandCompany Verizon Communications Murphy OilCorporation Kroger CoCom Intel Coca-Cola Europe Cisco SystemsInc Amgen Inc(USD) Autozone Inc United StatesofAmerica47.41%(2015:57.01%) Amdocs Limited Compass Group Plc British AmericanTobacco Plc United Kingdom6.63%(2015:9.94%) Scor Se Muenchener Rueckversicherungs-GesellschaftAg Allianz Ag Skandinaviska EnskildaBanken Nordea BankAB Ericsson LM Vinci Relx NV CAP Gemini BASF SE Nestle SA Euroland 18.80%(2015: 13.45%) George Weston Ltd Royal BankofCanada Bank ofMontreal Canadian NationalRailwaysCo National BankofCanada Canada 10.82%(2015:7.52%) Mizuho FinancialGroup CLP HoldingsLimited Toyota MotorCoporation Canon Inc Bridgestone Coporation Asahi KaseiCorporation China ConstructionBank Novartis Ag Asia 13.94%(2015:6.18%) Equities 99.21%(2015:99.67%) Description (continued) Cost £ 2,050,315 2,638,930 8,268,609 1,180,628 4,186,396 342,581 592,589 452,875 396,568 431,877 375,064 393,931 361,659 512,646 307,929 336,399 224,304 310,857 349,380 235,756 315,674 343,650 397,700 433,765 357,957 410,701 348,753 383,041 345,783 402,948 331,065 456,728 545,403 442,380 462,813 120,255 461,183 432,839 268,807 313,398 304,544 389,222 452,578 400,923 327,127 366,989 410,851 367,622 380,293 325,984 313,127 415,394 370,882 300,084 Market Value £ 10,766,320 2,459,487 3,169,426 1,507,804 4,272,751 365,537 514,118 566,331 518,464 525,519 455,738 393,435 337,179 717,363 346,382 360,125 227,468 408,485 396,827 375,597 484,055 546,845 623,907 488,070 564,755 447,292 533,873 599,380 474,438 485,283 494,705 660,086 643,527 476,868 532,299 166,011 451,769 479,726 297,027 391,949 385,251 539,204 536,743 512,106 458,955 354,109 427,956 382,197 356,542 300,455 269,216 451,523 478,327 372,771 Assets % ofNet 10.82 13.94 47.41 18.80 1.61 2.26 2.49 2.28 2.31 2.01 1.73 1.48 3.16 1.52 1.58 1.00 1.80 1.75 1.65 2.13 2.41 2.75 2.15 2.49 1.97 2.35 2.64 2.09 2.14 2.18 2.91 2.83 2.10 2.34 0.73 1.99 2.11 1.31 1.72 1.70 2.37 6.63 2.36 2.25 2.02 1.56 1.88 1.68 1.57 1.32 1.18 1.99 2.11 1.64 Standard &Poorscredit ratingagency. TheCellhaselected held bytheCellrangedfrom AAAtoBBB-asprovided by As at31July2016,thecredit ratingofthedebtinvestments of DepositandFloatingRateNotes. listed orquotedsecuritieswiththeexceptionofCertificates The investments held by thecellasat 31 July2016were all As at31July2016 Kleinwort Benson Elite International Equity Fund Cell PortfolioofInvestments 24,100 Nominal Net AssetsattributabletoParticipatingShareholders asat31July2016 Net Current Assets0.79%(2015:0.33%) Total Investments99.21%(2015:99.67%) Woodside Petroleum NPV Australia 1.61%(2015:5.57%) Description (continued) any significantmeaningfulinformation. providing abreakdown onthisbasisisnotdeemedtoadd element oftheportfolioisdeemedtobelowandassuch investment gradeandtherefore thelevelofcredit riskinthis by credit rating as there are no debt investments below not topresent thedebtelementofportfoliobroken down Cost £ 18,649,540 324,662 324,662 Market Value £ 22,721,862 22,541,871 179,991 366,083 366,083 (continued) Assets % ofNet 100.00 99.21 0.79 1.61 1.61 67 Annual Report & Audited Financial Statements 68 Annual Report & Audited Financial Statements Standard &Poorscredit ratingagency. TheCellhaselected held bytheCellrangedfrom AAAtoBBB-asprovided by As at31July2016,thecredit ratingofthedebtinvestments of DepositandFloatingRateNotes. listed orquotedsecuritieswiththeexceptionofCertificates The investments held by thecellasat 31 July2016were all As at31July2016 Kleinwort Benson Elite International Bond Fund Cell PortfolioofInvestments 225,000 135,000 200,000 100,000 250,000 200,000 250,000 250,000 200,000 Nominal 300,000 285,000 300,000 120,000 200,000 Net AssetsattributabletoParticipatingShareholders asat31July2016 Net Current Assets2.10%(2015:7.79%) Total Investments97.90%(2015:92.21%) USA Treasury 1.75%15/05/2022 United StatesofAmerica7.06%(2015:6.52%) 2.75%07/9/2024 UK Government 2.25%07/09/2023 UK Government 1.875%22/11/2022 UK Government 5%07/03/2025 UK Government United Kingdom34.42%(2015:45.71%) Bonds41.48%(2015:52.53%) Government JP MorganChase&Co4.4%22/07/2020 United StatesofAmerica5.59%(2015:4.00%) European InvestmentBank4.5%07/06/2029 BMW FinanceNV1.75%20/11/2017 GDF Suez6.125%11/02/2021 Euroland 15.46%(2015:7.38%) GE CapitalUKFunding4.375%31/07/2019 WPP Finance4.75%21/11/2021 Sanuk 0.82325%20/01/2017 Barclays BankFloating0.57188%15/09/2017 Old MutualPlc8%03/06/2021 United Kingdom35.37%(2015:23.70%) Corporate Bonds56.42%(2015:31.08%) Description (continued) any significantmeaningfulinformation. providing abreakdown onthisbasisisnotdeemedtoadd element oftheportfolioisdeemedtobelowandassuch investment gradeandtherefore thelevelofcredit riskinthis by credit rating as there are no debt investments below not topresent thedebtelement oftheportfoliobroken down Cost £ 1,137,528 2,955,881 1,008,249 180,098 240,366 150,895 150,895 476,068 156,618 199,150 120,300 273,958 143,835 250,220 250,175 219,340 183,141 183,141 298,084 289,701 Market Value £ 1,169,118 3,305,442 3,236,064 1,137,982 193,445 273,600 184,794 184,794 510,849 184,964 202,610 123,275 276,613 168,005 250,075 249,925 224,500 233,321 233,321 333,677 337,260 69,378 Assets % ofNet 100.00 15.46 35.37 97.90 34.42 10.09 10.20 5.85 8.28 5.59 5.59 5.60 6.13 3.73 8.37 5.08 7.57 7.56 6.79 2.10 7.06 7.06 Standard &Poorscredit ratingagency. TheCellhaselected held bytheCellrangedfrom AAAtoBBB-asprovided by As at31July2016,thecredit ratingofthedebtinvestments of DepositandFloatingRateNotes. listed orquotedsecuritieswiththeexceptionofCertificates The investments held by thecellasat 31 July2016were all As at31July2016 Kleinwort Benson Elite EUR Fixed Income Fund Cell PortfolioofInvestments 350,000 200,000 200,000 100,000 200,000 190,000 150,000 150,000 200,000 200,000 100,000 250,000 Nominal 400,000 300,000 100,000 300,000 210,000 310,000 200,000 Net AssetsattributabletoParticipatingShareholders asat31July2016 Net Current Assets1.65%(2015:(0.92%)) Total Investments98.35%(2015:100.92%) USA Treasury 1.75%15/05/2022 United StatesofAmerica7.80%(2015:7.36%) Germany (FederalRepublic)3.5%04/07/2019 2.75%30/04/2019 Spain Government Republic ofItaly4.5%01/03/2024 4.65%30/07/2025 Spain Government Euroland 23.30%(2015: 32.23%) Bonds31.10%(2015:39.59%) Government Bank ofAmerica1.3171%22/03/2018 Bank ofAmericaCorporation4.625%14/09/2018 United StatesofAmerica10.50%(2015:6.85%) European InvestmentBank3%14/10/2033 Anheuser-Busch 2.875%25/09/2024 GE CapitalEuropean Funding4.125%27/10/2016 RicardPernod 2%22/06/2020 Total CapitalIntlSa2.5%GtdNts25/03/2026 Tyco Finance1.375%25/02/2025 International SPP Infrastructure Financing2.625%12/2/2025 ITV Plc2.125%21/09/2022 British Telecommunications Plc1.75%10/3/2026 Assic GeneraliSpa5.125%16/09/2024 Siemens Financier5.25%09/2066 Societe Generale9.375%Perpetual Euroland 56.75%(2015:38.56%) Corporate Bonds67.25%(2015:61.33%) Description (continued) any significantmeaningfulinformation. providing abreakdown onthisbasisisnotdeemedtoadd element oftheportfolioisdeemedtobelowandassuch investment gradeandtherefore thelevelofcredit riskinthis by credit rating as there are no debt investments below not topresent thedebtelement oftheportfoliobroken down Cost € 2,522,069 4,364,492 1,024,193 508,246 292,946 215,300 419,825 231,910 215,100 198,266 188,366 157,772 147,750 201,652 250,400 108,930 302,500 309,984 309,984 347,382 101,686 336,117 239,008 99,598 Market Value € 2,686,976 4,735,076 4,656,296 1,102,917 497,040 278,840 218,200 493,203 237,190 202,050 107,945 239,900 195,111 166,028 156,457 217,020 268,670 100,590 302,812 369,363 369,363 336,870 107,745 380,535 277,767 78,780 Assets % ofNet 100.00 10.50 56.75 10.42 98.35 23.30 5.89 4.61 5.01 4.27 2.28 5.07 4.12 3.51 3.30 4.58 5.67 2.12 6.40 1.65 7.80 7.80 7.11 2.28 8.04 5.87 69 Annual Report & Audited Financial Statements 70 Annual Report & Audited Financial Statements any significantmeaningfulinformation. providing abreakdown onthisbasisisnotdeemedtoadd element oftheportfolioisdeemedtobelowandassuch investment gradeandtherefore thelevelofcredit riskinthis by credit rating as there are no debt investments below not topresent thedebtelementofportfoliobroken down Standard &Poorscredit ratingagency. TheCellhaselected held bytheCellrangedfrom AAAtoBBB-asprovided by As at31July2016,thecredit ratingofthedebtinvestments As at31July2016 Kleinwort Benson Global Trojan Fund Cell PortfolioofInvestments 3,091 Nominal Net AssetsattributabletoParticipatingShareholders asat31July2016 Net Current Assets3.93%(2015:6.27%) Total Investments96.07%(2015:93.73%) Ltd EEA FundManagementGuernsey United Kingdom96.07%(2015:93.73%) Funds 96.07%(2015:93.73%) Description (continued) Cost £ 481,943 481,943 481,943 Market Value £ 367,133 352,693 352,693 352,693 14,440 Assets % ofNet 100.00 96.07 96.07 96.07 3.93 For theyearended31July2016 Kleinwort Benson Sterling Fixed Income Fund Changes Portfolio Material of Summary Cell UK Government 4.25%07/06/2032 UK Government 5%07/03/2025 UK Government 1.875%22/11/2022 UK Government Bonds Government Disposals Top 10acquisitionsintheperiod Long GiltCommodityFuture 30/09/2015 Futures Barclays BankPlcFloatingRateMTN15/09/2017 BPCE SA1.37125%06/03/2017 Nordea BankAB2.125%13/11/2019 FinanceBV3.5%06/06/2019 Daimler International Verizon Communications4.073%Bds18/06/2024 Santander UKPlcFloat01/20/2017 Corporate Bonds 4%07/03/2022 UK Government 4.25%07/12/2027 UK Government 4.25%07/06/2032 UK Government Bonds Government Acquisitions Top 10disposalsintheperiod Investec BankPlcFRN10/12/25 Goldman SachsGroup Inc6.875%18/01/38 Koninklijke Kpn6.875%14/03/2073 Sg Issuer4.5%GtdNts12/04/2021 Sg Issuer0%MTN10/07/2019Gbp National GridElectricity5.875%02/02/24 Heathrow FundingLtd5.225% FRNMTN02/25 Corporate Bonds Cost £ Proceeds £ 16,108,008 15,757,451 5,345,100 5,345,100 6,636,550 1,000,800 1,004,000 1,009,450 1,056,800 1,062,800 1,502,700 4,126,358 1,916,224 1,264,110 9,005,210 1,140,810 1,348,988 1,462,743 1,491,490 1,718,850 6,752,241 1,467,551 1,632,946 3,651,744 946,024 888,750 953,579 71 Annual Report & Audited Financial Statements 72 Annual Report & Audited Financial Statements For theyearended31July2016 Kleinwort Benson Elite Multi Fund Balanced Asset Changes Portfolio of Material Summary Cell iShares FTSE100 Gvq InvestmentFundsDublinPlcUKFocusIGbp Fil InvestmentMgt(Lux)SaAmericanGrowth YUsd Invesco FundManagersPerpetualCorporateBond Henderson InvestmentFundsLtd-UKProperty OeicINetInc iShares S&P500Gbp Vanguard InvestUKLtd-FTSEAllShare IdxUtAAcc Funds Disposals Top 10acquisitionsintheperiod Go UcitsEtfSolutionsPlcLngerDatedCommodities J OHambro CapitalMgtLtdContinentalEuro AGbp Legg MasonGlobalFundsClearbridgeUSAggsvGthP Gvq InvestmentFundsDublinPlcUKFocusIGBP Fil InvestmentManagement(Lux)SAAmericanGrowth YUSD Invesco FundManagerPerpetualCorporateBond Pimco GlobalInvestmentGradeCred HgdInstl Fil InvestmentManagementLuxAmericanGrowth GBPAcc Fil InvServices(UK)LtdInstitutionalEmergingMarketsWAccNav Fil InvestmentServicesUKLtdIndexUSPIncNav Funds Acquisitions Top 10disposalsintheperiod Invesco FundMangersIpCorprateBondNoTrail Acc Fil InvServices(UK)LtdInstitutionalEmergingMarketsWAccNav HSBC FTSE100Etf Proceeds £ Cost £ 15,471,756 54,326,373 54,326,373 63,373,611 63,373,611 7,089,644 4,046,552 4,062,186 4,127,570 4,866,981 5,482,077 5,720,427 5,792,600 5,829,391 6,381,053 8,017,536 3,548,271 4,136,301 4,646,764 4,887,686 5,158,163 5,786,645 5,806,211 6,842,170 (continued) For theyearended31July2016 Kleinwort Benson Multi Conservative Asset Fund Changes Portfolio of Material Summary Cell Nordea Snr02/2016 BankAbFrn SnrEmtn05/16 Svenska HandelsbnkenAb0.9125%Frn HSBC BankPlc0.9125%16/05/16 Ge CapitalUKFunding1.0625%09/05/16 Corporate Bonds Disposals Top 10acquisitionsintheperiod Fil InvestmentManagement(Lux)SAAmericanGrowth YUSD InvestFundsShortDatedCorp Smith &Williamson Fil InvServices(UK)LtdInstitutionalEmergingMarketsWAccNav J OHambro CapitalMgtLtdContinentalEuro AGbp Gvq InvestmentFundsDublinPlcUkFocusIGbp Invesco FundManagerPerpetualCorporateBond Pimco GlobalInvestmentGradeCred HgdInstl Ishares GbpUltrashortBondUCITSETF Fil InvestmentServicesUKLtdIndexUSPIncNav Funds 4.75%07/03/2020 UK Government Bonds Government Acquisitions Top 10disposalsintheperiod Henderson InvestmentFundsLtd-UKProperty OeicINetInc iShares S&P500Gbp Gvq InvestmentFundsDublinPlcUkFocusIGbp Invesco FundManagerPerpetualCorporateBond OffshoreM &G(Guernsey) CorpBdIPtgShs Vanguard InvestUKLtd-FTSEAllShare IdxUtAAcc Funds Proceeds £ Cost £ 7,323,383 6,883,823 1,065,562 1,364,898 8,099,375 5,910,375 1,047,454 1,857,669 2,189,000 411,907 413,213 515,344 554,974 692,651 930,193 935,081 439,560 439,560 642,895 674,358 734,309 953,690 546,000 547,000 547,000 549,000 (continued) 73 Annual Report & Audited Financial Statements 74 Annual Report & Audited Financial Statements For theyearended31July2016 Kleinwort Benson Multi Fund Growth Asset Changes Portfolio of Material Summary Cell iShares FTSE250Fund Henderson InvestmentFundsLtd-UKProperty OeicINetInc Gvq InvestmentFundsDublinPlcUkFocusIGbp Fil InvestmentMgt(Lux)SaAmericanGrowth YUsd iShares S&P500Gbp iShares FTSE100 Vanguard InvestmentsUKLtdFTSEEquityIndexAAcc Funds Disposals Top 10acquisitionsintheperiod Tokio MarineFundsJapaneseEquityFocusFundGbp Threadneedle InvestmentFundICVC-UKZniIncNav Hermes InvestmentManagementAsiaEx-JapanEquity Gvq InvestmentFundsDublinPlcUkFocusIGbp J OHambro CapitalMgtLtdContinentalEuro AGbp Fil InvestmentMgt(Lux)SAAmericanGrowth YUsd Wells FargoLuxWorldwide Fund-USAllCapGrowth Fil InvestmentMgtLuxAmericanGrowth GbpAcc Legg MasonGlobalFundsClearbridgeUsAggsvGthP Fil InvestmentServicesUkLtdIndexUsPIncNav Funds Acquisitions Top 10disposalsintheperiod Ssga EurIi-SpdrFtseUkAllShare UCITSETFGbp Polar CapitalEmergingMarketsIncomeSGbpDisNav OffshoreM &G(Guernsey) CorpBdIPtgShs Proceeds £ Cost £ 34,745,419 34,745,419 44,670,712 44,670,712 8,691,993 9,459,796 2,532,623 2,986,461 3,049,166 3,478,334 3,483,787 3,510,916 3,543,588 3,564,134 3,653,825 4,942,585 2,032,194 2,159,602 2,181,868 2,608,547 3,349,098 3,686,282 3,705,972 6,795,360 (continued) For theyearended31July2016 Kleinwort Benson Elite International Equity Fund Changes Portfolio of Material Summary Cell Emera Inc Broadridge FinancialSolution Inc American Water Works CoInc Automatic DataProcessing Inc Wolters Kluwer Coca-Cola EnterprisesInc Becton Dickinson&Co Johnson & Equities Disposals Top 10acquisitionsintheperiod Relx Hennes &MauritzSer'B' Skandinaviska EnskildaBankenAb(Seb) Vinci Intel Corporation Wells Fargo&Company Kroger Co Verizon CommunicationsInc Royal BankOfCanada Bank OfMontreal Equities Acquisitions Top 10disposalsintheperiod 3M Co Bemis CoInc Proceeds £ Cost £ 4,360,250 4,979,804 539,449 558,427 574,751 370,882 378,394 380,293 415,394 432,839 442,380 461,183 462,813 499,226 516,846 449,858 454,316 460,609 464,964 479,386 488,781 509,263 (continued) 75 Annual Report & Audited Financial Statements 76 Annual Report & Audited Financial Statements For theyearended31July2016 Kleinwort Benson Elite International Bond Fund Changes Portfolio of Material Summary Cell Total disposalsintheperiod GE CapitalUKFunding4.375%31/07/2019 Old MutualPlc8%SubMtn03/06/21 Investec GlobalStEmgMktsLocalCurrency DebtI Aviva Plc6.875%FrSunEmtn 20/05/58 Corporate Bonds USA Treasury 2.75%07/9/2024 UK Government 2.25%07/09/2023 UK Government 1.875%22/11/2022 UK Government Bonds Government Disposals Total acquisitionsintheperiod WPP Finance20104.75%21/11/2021 BMW Finance1.75%20/11/2017 Barclays BankPlcFloatingRateMtn15/09/2017 Santander UKPlcFloat01/20/2017 Corporate Bonds Acquisitions Proceeds £ Cost £ 1,360,483 175,428 232,879 790,650 203,032 266,087 256,594 843,380 843,380 143,835 199,150 250,175 250,220 569,833 107,781 (continued) 64,937 53,745 For theyearended31July2016 Kleinwort Benson Elite EUR Fixed Income Fund Changes Portfolio of Material Summary Cell British Telecommunications Plc1.75%10/03/2026 Siemens Financier5.25%09/2066 Bank OfAmerica4.625%14/09/18 GE CapitalEuropean Funding4.125%27/10/2016 Royal BankofScotland7.0916% Barclays BankPlc8%Perpetual Lloyds BankPlc11.875%16/12/21 Corporate Bonds Republic ofItaly4.5%01/03/2024 Bonds Government Disposals Total acquisitionsintheperiod ITV Plc-2.125%SnrNts21/09/2022 SPP Infrastructure FinancingBv2.625%12/02/2025 Tyco FinanceSA1.375%25/02/2025 International Assicurazioni GeneraliSpa-5.125%16/09/2024 Bank ofAmericaFloatingRate22/03/2018 British Telecommunications Plc1.75%10/03/2026 Corporate Bonds Acquisitions Total disposalsintheperiod Proceeds € Cost € 1,339,712 1,339,712 1,662,019 1,172,345 (continued) 197,025 227,500 278,125 489,674 489,674 147,750 157,772 188,366 250,400 292,946 302,478 102,507 104,290 108,500 154,398 77 Annual Report & Audited Financial Statements 78 Annual Report & Audited Financial Statements Company’s liquidity. has notintroduced anynewarrangementsformanaging the and asaresult InvestmentFundManager theAlternative has beenappliedconsistentlythroughout thereview period issue of shares or the realisation of investments. This policy there willbehigherlevelsofliquidity, forexamplefollowingthe with itsobjectives.There maytherefore beoccasionswhen and the efficient management of the Company in accordance liquidity forthepurposeofeffecting thecancellationofUnits, liquidity of5%orless)butthisissubjecttotheneedretain Company shouldnormallybeclosetofullyinvested(i.e.with InvestmentFundManager’sThe Alternative policyisthatthe Liquidity is asfollows: The totalamountofleveragecalculatedasat31July2016 • • For the“Gross method,thefollowing hasbeenexcluded: and securitypositionsasspecifiedbytheDirective. (both positiveandnegative),butafternettingoff derivative also calculatedasthesumofallpositionsCompany risk reduction purposes.‘Commitment method’exposure is assets, liabilitiesandderivatives,includingderivativesheldfor the Company(bothpositiveandnegative),thatis,alleligible method’ exposure iscalculatedasthesumofallpositions exceed maximumexposures underbothmethods.‘Gross and ‘commitmentmethod’–theCompanymustnot derivatives. ‘Exposure’ isdefinedintwoways–‘gross method’ increases its exposure through borrowing or the use of Leverage is defined as any methodby which the Company Leverage andborrowing Company’s management: specific informationinrelation tothefollowingaspectsof Investment FundManager(‘AIFM’)isrequired todisclose Investment ManagementLimitedinitscapacityasAlternative Directive (the‘Directive’), KleinwortBenson(Channel Islands) In accordanceInvestmentFundManagers withtheAlternative Directive Alternative Investment Fund Managers Commitment method Gross method are knownshouldbeexcluded from thecalculation. as defined above and where the amounts of that payable cash borrowings that remain in cash or cash equivalent cash, subjecttoaninsignificantriskofchangesinvalue; the AIFthatare readily convertibletoaknownamountof highly liquidinvestmentsheldinthebasecurrency of the valueofanycashandequivalentswhichare 0.978 0.892 Limited paid no Director’s fees or any remuneration to senior Kleinwort Benson(Channel Islands) InvestmentManagement line withtheriskpoliciesandobjectivesofAIFsitmanages. the remuneration ofitsDirectors andseniormanagementisin interest can be managed appropriately at all times and that policies are designedtoensure thatanyrelevant conflictsof remuneration policiesundertheDirective. Theremuneration Securities and Markets Authority guidelines on sound consistent withtheprinciplesoutlinedinEuropean The AIFMissubjecttoaremuneration policywhichis Remuneration out. Investment FundManagertomanagethoserisks,are set risk managementsystemsemployedbytheAlternative 61, where thecurrent riskprofile oftheCompanyand the Notes to the Financial Statements on pages 28 to Please refer toNote16,Riskmanagementpolicies,in Risk managementpolicynote staff managementfortheyear ended31July2016. 79 Annual Report & Audited Financial Statements Contact details

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