Annual Report & Audited Financial Statements

Annual Report & Audited Financial Statements for the year ended 30 April 2014

Baring International Umbrella Fund Baring International Umbrella Fund

Contents

Management and administration 1

Introduction 3

Independent Auditors' Report to the unitholders of Baring International Umbrella Fund 5

Statement of Manager's responsibilities 6

Manager's statement 6

Report of the Trustee to the unitholders for the year ended 30 April 2014 7

Key changes since the last Report 8

This section includes the following:

Investment Manager's Report, Portfolio statement, Balance sheet, Statement of changes in net assets attributable to holders of redeemable participating units and Profit and loss account

Baring ASEAN Frontiers Fund 9

Baring Asia Growth Fund 21

Baring Australia Fund 29

Baring Europa Fund 37

Baring Hong Kong China Fund 47

Baring International Bond Fund 59

Notes to the financial statements 69

Information for investors in Switzerland 95

Information for investors in Germany 99

General information 100

Appendix 1- additional information Hong Kong code 101

Appendix 2- significant portfolio movements 113 Baring International Umbrella Fund

Management and administration

Manager Sponsoring broker Baring International Fund Managers (Ireland) Limited Investec Capital & Investments (Ireland) Registered Office The Harcourt Building Georges Court Harcourt Street 54-62 Townsend Street Dublin 2 Dublin 2 Ireland Ireland Telephone: + 353 1 542 2930 Legal advisers Facsimile: + 353 1 670 1185 Dillon Eustace 33 Sir John Rogerson’s Quay Investment Managers Dublin 2 Baring Asset Management Limited Ireland 155 Bishopsgate London EC2M 3XY Directors of the Manager United Kingdom John Burns (British) Telephone: + 44 207 628 6000 David Conway** (Irish) Facsimile: + 44 207 638 7928 Ines Haag (German) (resigned 18 June 2013) Nicola Hayes (British) (appointed 1 August 2013) Baring Asset Management (Asia) Limited* Ian Pascal (British) (resigned 1 August 2013) 19th Floor, Edinburgh Tower Michel Schulz*** (German) (appointed 25 February 2014) 15 Queen’s Road Central Mark Thorne** (Irish) Hong Kong Telephone: + 852 2 841 1411 **Non-executive Directors independent of the Investment Facsimile: + 852 2 973 3338 Manager. ***Non-executive Director. *Baring Asset Management (Asia) Limited are the delegated Sub-Investment Manager for certain funds as detailed in the Investment Manager Reports of the relevant funds.

Trustee Northern Trust Fiduciary Services (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2 Ireland

Administrator and registrar Northern Trust International Fund Administration Services (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2 Ireland

Independent auditors PricewaterhouseCoopers One Spencer Dock North Wall Quay Dublin 1 Ireland

1 Baring International Umbrella Fund

Management and administration (continued)

Paying agents

UniCredit Bank Austria AG Schottengasse 6-8 1010 Vienna Austria

BNP Paribas Securities Services 9 rue du Débarcadère 93500 PANTIN Cedex France

Deutsche Bank AG Taunusanlage 12 60325 Frankfurt am Main Germany

Banque de Luxembourg SA 14, Boulevard Royal L-2449 Luxembourg

S.E. Banken Skandinaviska Enskilda Banken AB (publ), Transaction Banking, KB BV, SE-106 40 Stockholm, Sweden

BNP Paribas Securities Services, Paris Succursale de Zurich Selnaustrasse 16 8002 Zurich Switzerland

2 Baring International Umbrella Fund

Introduction

Baring International Umbrella Fund (“the Trust”) is managed by Baring International Fund Managers (Ireland) Limited (“the Manager”). The Trust was established pursuant to a Trust deed dated 22 November 1990 (as supplemented or amended from time to time), (“the Trust Deed”) made between the Manager and Northern Trust Fiduciary Services (Ireland) Limited (“the Trustee”) as Trustee and authorised by the Central Bank of Ireland (“CBI”) pursuant to the European Communities Undertakings for Collective Investment in Transferable Securities Regulations, 2011 (as amended) (“the UCITS Regulations”). It has been authorised by the Securities and Futures Commission in Hong Kong.

The Trust is organised in the form of an Umbrella Fund. The Trust Deed provides that the Trust may offer separate series of units, each representing interest in a Fund comprised of a distinct portfolio of investments. A separate Trust Fund (“a Fund”) is maintained for each series of units and is invested in accordance with the investment objective applicable to such Fund to date. Each Fund may create more than one class of units in relation to a Fund (“a class”) and these separate classes of units may be denominated in different currencies. A unit represents a beneficial interest in the Fund (“a unit”).

Accumulation (“Acc”) and Income (“Inc”) units are available in the following Funds (referring collectively to each Fund within the Trust (“the Funds”)) and in the following denominations and classes:

Fund and class Unit type (Acc/Inc) Base currency Unit denomination Unit class launch date ISIN

Baring ASEAN Frontiers Fund** Class A Inc US$ USD 01/08/2008 IE0000830236 Class A Inc US$ EUR 01/08/2008 IE0004868828 Class A Inc US$ GBP 05/08/2008 IE00B3BC5T90 Class D Inc US$ GBP TBC IE00B84F2G69* Class R Inc US$ GBP TBC IE00B8FKFZ03* Class A Acc US$ USD 14/03/2012 IE00B59JG481 Class A Acc US$ EUR TBC IE00B4MTNB49* Class A Acc US$ RMB Hedged 21/02/2012 IE00B3LGSN62 Class A Acc US$ AUD Hedged TBC IE00BFDTF255* Class I Acc US$ USD 05/07/2013 IE00B3BC5V13 Class I Acc US$ EUR 14/02/2011 IE00B3BC5X37 Class I Acc US$ GBP 04/01/2011 IE00B3BC5W20 Baring Asia Growth Fund** Class A Inc US$ USD 03/02/1987 IE0000830129 Class A Inc US$ EUR 15/02/1999 IE0004868604 Class A Inc US$ GBP 01/11/2001 IE0031029477 Class D Inc US$ GBP TBC IE00B8KZVY18* Class R Inc US$ GBP TBC IE00B89SSB73* Class A Acc US$ RMB Hedged TBC IE00B7JY4095* Class A Acc US$ USD TBC IE00B7JY2X87* Class A Acc US$ EUR TBC IE00B7JY2Z02* Class I Acc US$ USD TBC IE00B3BC9V92* Class I Acc US$ EUR TBC IE00B3BC9X17* Class I Acc US$ GBP TBC IE00B3BC9W00* Baring Australia Fund** Class A Inc US$ USD 04/12/1981 IE0000829451 Class A Inc US$ AUD 15/10/2009 IE00B3YQ9180 Class A Inc US$ EUR 15/02/1999 IE0004866665 Class A Inc US$ GBP 21/12/2009 IE00B45XQ142 Class D Inc US$ GBP TBC IE00B8B48K25* Class R Inc US$ GBP TBC IE00B7D9PD06* Class A Acc US$ EUR TBC IE00B7JY4764* Class A Acc US$ RMB Hedged TBC IE00B7JY5399* Class I Acc US$ USD TBC IE00B3BC9S63* Class I Acc US$ AUD TBC IE00B3WCDZ09* Class I Acc US$ EUR TBC IE00B3BC9T70* Class I Acc US$ GBP 30/04/2013 IE00B3YQ8T99

3 Baring International Umbrella Fund

Introduction (continued)

Fund and class Unit type (Acc/Inc) Base currency Unit denomination Unit class launch date ISIN

Baring Europa Fund** Class A Inc US$ USD 21/04/1987 IE0000829121 Class A Inc US$ EUR 06/01/1999 IE0004866772 Class C*** Inc US$ USD 31/01/2008 IE00B2NN6456 Class C*** Inc US$ EUR 31/01/2008 IE00B2PF5530 Class D Inc US$ GBP TBC IE00B8N5H065* Class I Inc US$ GBP TBC IE00B8KYRN91* Class R Inc US$ GBP TBC IE00B6TGNP64* Class A Acc US$ EUR TBC IE00B7JY6470* Class A Acc US$ RMB Hedged 04/04/2014 IE00B7JY6F85 Class I Acc US$ USD TBC IE00B3BC9Y24* Class I Acc US$ EUR TBC IE00B3BCB020* Baring Hong Kong China Fund** Class A Inc US$ USD 03/12/1982 IE0000829238 Class A Inc US$ EUR 17/05/1999 IE0004866889 Class A Inc US$ GBP 21/12/2009 IE00B3YQ0H18 Class A Inc US$ HKD 10/08/2010 IE00B4YN5X00 Class C*** Inc US$ USD 31/01/2008 IE00B2NN6340 Class C*** Inc US$ EUR 31/01/2008 IE00B2PF5423 Class D Inc US$ GBP TBC IE00B8F6BB67* Class R Inc US$ GBP TBC IE00B8BKYN57* Class A Acc US$ USD 14/03/2012 IE00B7JY6H00 Class A Acc US$ EUR TBC IE00B7JY7551* Class A Acc US$ RMB Hedged 04/04/2014 IE00B7JY7775 Class I Acc US$ USD TBC IE00B3BCB798* Class I Acc US$ EUR TBC IE00B3BCB806* Class I Acc US$ GBP 07/04/2014 IE00B3YV5X70 Baring International Bond Fund** Class A Inc US$ USD 07/07/1978 IE0000829568 Class A Inc US$ EUR 12/01/1999 IE0004866996 Class A Inc US$ GBP 06/06/2003 IE0033064597 Class A Inc US$ RMB Hedged TBC IE00B7JYQK32* Class D Inc US$ GBP TBC IE00B8DRTL73* Class I Inc US$ GBP 10/12/2012 IE00B7JYQM55 Class R Inc US$ GBP TBC IE00B3QJRD34* Class I Acc US$ USD 28/01/2014 IE00B3BCB137 Class I Acc US$ EUR TBC IE00B3BCB350* Class I Acc US$ GBP TBC IE00B3BCB244*

*Unit class not yet launched.

**The trade receipt and valuation deadline for the annual accounts was 12pm on 30 April 2014.

***Class C units will be available to certain distributors who have in place a placing agency or distribution arrangement with the Manager or its delegates.

Transactions with connected parties

The UCITS Regulations require that any transaction carried out with the Trust by a Promoter, Manager, Trustee, Investment Adviser and/or associate of these (“connected parties”) are carried out as if negotiated at arm’s length and are in the best interests of the unitholders.

The Board of Directors of the Manager are satisfied that there are arrangements in place to ensure that this requirement is applied to all transactions with connected parties, and that all transactions with connected parties during the year complied with this requirement.

4 Baring International Umbrella Fund

Independent Auditors' Report to the unitholders of Baring International Umbrella Fund

We have audited the financial statements of the Funds of Baring International Umbrella Fund for the year ended 30 April 2014, which comprise the Portfolio Statement, the Balance Sheet, the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Units, the Profit and Loss Account, and the related notes for each of the Funds of the Trust.

The financial reporting framework that has been applied in their preparation is Irish law and accounting standards issued by the Financial Reporting Council and promulgated by the Institute of Chartered Accountants in Ireland (Generally Accepted Accounting Practice in Ireland).

Respective responsibilities of the manager and auditors

As explained more fully in the Statement of Manager’s Responsibilities set out on page 6, the Manager is responsible for the preparation of the financial statements giving a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This Report, including the opinion, has been prepared for and only for the unitholders of each of the Funds and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this Report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Funds’ circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Manager; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our Report.

Opinion on financial statements In our opinion the financial statements:

 give a true and fair view in accordance with Generally Accepted Accounting Practice in Ireland of the state of the Funds’ affairs as at 30 April 2014 and of their results for the year then ended; and

 have been properly prepared in accordance with the requirements of the European Communities Undertakings for Collective Investment in Transferable Securities Regulations 2011 (as amended).

PricewaterhouseCoopers

Chartered Accountants and Registered Auditors Dublin 14 August 2014

5 Baring International Umbrella Fund

Statement of Manager’s responsibilities

Baring International Fund Managers (Ireland) Limited (“the Manager”) is required by the European Communities Undertakings for Collective Investment in Transferable Securities Regulations, 2011 (as amended), (“the UCITS Regulations”) to prepare financial statements for each financial year. These financial statements must be prepared in accordance with Generally Accepted Accounting Practice in Ireland (“Irish GAAP”) to give a true and fair view of the state of affairs of the Baring International Umbrella Fund (“the Trust”) at the year-end, and of the results and movements in the statement of changes in net assets attributable to holders of redeemable participating units for the year then ended. In preparing these financial statements, the Manager must:

 select and consistently apply suitable accounting policies;

 make judgements and estimates that are reasonable and prudent; and

 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.

The financial statements must comply with the disclosure requirements of the UCITS Regulations. The Manager is responsible for keeping proper books of account which disclose with reasonable accuracy at any time the financial position of the Trust and to enable them to ensure that the financial statements comply with the Trust Deed and the UCITS Regulations and the provisions of the Hong Kong Code on Unit Trusts and Mutual Funds. The Manager is also responsible for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Manager’s statement

The financial statements were approved by the Board of Directors of the Manager, Baring International Fund Managers (Ireland) Limited, on 14 August 2014 and signed on its behalf by:

Directors

David Conway Mark Thorne 14 August 2014

6 Baring International Umbrella Fund

Report of the Trustee to the unitholders for the year ended 30 April 2014

Northern Trust Fiduciary Services (Ireland) Limited (“the Trustee”) have enquired into the conduct of Baring International Fund Managers (Ireland) Limited (“the Manager”) in respect of Baring International Umbrella Fund (“the Trust”) for the year ended 30 April 2014, in our capacity as Trustee to the Trust.

This Report, including the opinion, has been prepared for and solely for the unitholders in the Trust as a body, in accordance with the Central Bank of Ireland’s (“the CBI’s”) Undertakings for the Collective Investment of Transferable Securities (“UCITS”) Notice 4, and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this Report is shown.

Responsibilities of the Trustee

Our duties and responsibilities are outlined in the CBI’s UCITS Notice 4. One of those duties is to enquire into the conduct of the Trust in each annual accounting year and report thereon to the unitholders.

Our Report shall state whether, in our opinion, the Trust has been managed in that year in accordance with the provisions of the Trust’s Trust Deed and the European Communities Undertakings for Collective Investment in Transferable Securities Regulations, 2011 (as amended) (“the UCITS Regulations”). It is the overall responsibility of the Manager to comply with these provisions. If the Manager has not so complied, we as Trustee must state why this is the case and outline the steps which we have taken to rectify the situation.

Basis of Trustee opinion

The Trustee conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its duties as outlined in UCITS Notice 4 and to ensure that, in all material respects, the Trust has been managed, (i) in accordance with the limitations imposed on its investment and borrowing powers by the provisions of its constitutional documentation and the appropriate regulations, and (ii) otherwise in accordance with the Trust’s constitutional documentation and the appropriate regulations.

Opinion

In our opinion, the Trust has been managed during the year, in all material respects:

I. In accordance with the limitations imposed on the investment and borrowing powers of the Manager and Trustee by the Trust Deed and by the UCITS Regulations,

II. otherwise in accordance with the provisions of the Trust Deed and the UCITS Regulations.

Northern Trust Fiduciary Services (Ireland) Limited 14 August 2014 Georges Court, 54-62 Townsend Street, Dublin 2 Ireland

7 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Key changes since the last Report

Ines Haag resigned as Director of the Manager effective from 18 June 2013.

Ian Pascal resigned as Director of the Manager effective from 1 August 2013 and Nicola Hayes was appointed as Director of the Manager on this date.

John Burns has taken over as the Chairman of Baring International Fund Managers (Ireland) Limited effective from 1 August 2013.

Michel Schulz was appointed as a non-executive Director of the Manager effective from 25 February 2014.

The Central Bank of Ireland withdrew their approval of Baring North America Fund on 6 November 2013. The Baring North America Fund terminated in the prior year on 9 July 2012.

The following unit classes were launched during the year:

Baring Australia Fund Class I GBP Acc lauched on 30 April 2013.

Baring ASEAN Frontiers Fund Class I USD Acc launched on 5 July 2013.

Baring International Bond Fund Class I USD Acc launched on 28 January 2014.

Baring Europa Fund Class A RMB Hedged Acc launched on 4 April 2014.

Baring Hong Kong China Fund Class A RMB Hedged Acc and Class I GBP Acc launched on 4 April 2014 and 7 April 2014 respectively.

8 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Baring ASEAN Frontiers Fund — Investment Manager’s Report

Investment objective and policy

The investment objective of the Baring ASEAN Frontiers Fund (“the Fund”) is to achieve long-term capital growth in the value of assets by investing in companies in Asia which the Manager believes will benefit from the economic growth and development of the region. The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in equities and equity-related securities of companies incorporated in, or exercising the predominant part of their economic activity in, countries which are members of the Association of South-East Asian Nations (“ASEAN”) or quoted or traded on the stock exchanges in those countries. The members of ASEAN include Singapore, Thailand, the Philippines, Malaysia, Indonesia and Vietnam. Please refer to the Prospectus for the full investment objective and policy.

How the Fund is managed

The Manager of Baring International Umbrella Fund, Baring International Fund Managers (Ireland) Limited, has appointed Baring Asset Management Limited as the Investment Manager of the Fund. In turn, Baring Asset Management Limited has appointed Baring Asset Management (Asia) Limited as Sub-Investment Manager to the Fund.

The Fund is invested primarily in the South East Asian equity markets using a “bottom-up” investment approach. This means we focus more on the individual merits of a specific company, rather than taking a stance on a sector of the market or macroeconomic trends such as interest rate rises. Within this, we manage the Fund using a “Growth at a Reasonable Price”, or GARP, approach. This means that when researching candidates for the portfolio, we place just as much emphasis on the likely growth in corporate earnings at a company as we do on the unit price valuation before deciding whether or not to invest. We believe that this approach combines the best features of both “growth” and “value” investment styles, to the benefit of investors.

Performance

Summary of Fund performance (excluding distribution payments where applicable)

Net Asset Value as at Net Asset Value as at Net Asset Value % 30/04/2014 30/04/2013 change Price per unit Price per unit

Baring ASEAN Frontiers Fund Class A USD Inc US$186.19 US$213.79 (12.91)

Baring ASEAN Frontiers Fund Class A EUR Inc €134.63 €163.52 (17.67)

Baring ASEAN Frontiers Fund Class A GBP Inc £110.72 £138.05 (19.80)

Baring ASEAN Frontiers Fund Class A RMB Hedged Acc ¥1,193.39 ¥1,353.47 (11.83)

Baring ASEAN Frontiers Fund Class A USD Acc US$188.43 US$215.14 (12.42)

Baring ASEAN Frontiers Fund Class I EUR Acc €138.99 €167.15 (16.85)

Baring ASEAN Frontiers Fund Class I GBP Acc £114.56 £141.20 (18.87)

Baring ASEAN Frontiers Fund Class I USD Acc* US$195.14 N/A N/A

*The Class I USD Acc unit class was launched on 5 July 2013.

9 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Baring ASEAN Frontiers Fund — Investment Manager’s Report (continued)

Performance (continued)

Performance record to 30 April 2014 (including distribution payments where applicable)

01/05/2013 - 01/05/2012 - 01/05/2011 - 01/05/2010 - 01/05/2009 - 30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 % % % % % Baring ASEAN Frontiers Fund Class A USD Inc

(USD terms) (12.43) 23.26 (5.21) 34.02 78.49

MSCI South East Asia Total, Net Return Index

(USD terms) (6.60) 17.32 0.28 28.90 70.01

Baring ASEAN Frontiers Fund Class A EUR Inc

(EUR terms) (17.21) 24.63 6.24 20.40 78.06

Baring ASEAN Frontiers Fund Class A GBP Inc

(GBP terms) (19.35) 29.42 (2.91) 23.34 72.62

Baring ASEAN Frontiers Fund Class A RMB

Hedged Acc (RMB terms)* (11.83) 23.35 2.68 N/A N/A

Baring ASEAN Frontiers Fund Class A USD Acc

(USD terms)* (12.42) 23.27 2.27 N/A N/A

Baring ASEAN Frontiers Fund class I EUR Acc

(EUR terms)* (16.85) 25.25 6.77 1.57 N/A

Baring ASEAN Frontiers Fund Class I GBP Acc

(GBP terms)* (18.87) 30.07 (2.42) 23.24 72.62

Baring ASEAN Frontiers Fund Class I USD Acc

(USD terms)* 1.31 N/A N/A N/A N/A

Performance figures are shown net of fees and charges, on a NAV per unit basis, with gross revenue reinvested.

Source: Morningstar/Barings/MSCI.

For data sourced from Morningstar: © Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

This Fund was previously known as the Baring Pacific Fund until 1 August 2008 when the investment objective changed. The Fund’s name was changed to reflect this and the performance track record was restarted.

The MSCI data is for Barings use only and may not be redistributed or used in connection with creating or offering any securities, financial products or indices.

*The Class I GBP Acc unit class was launched on 4 January 2011. The Class I EUR Acc unit class was launched on 14 February 2011. The Class A RMB Hedged Acc unit class was launched on 21 February 2012. The Class A USD Acc unit class was launched on 14 March 2012. The Class I USD Acc unit class was launched on 5 July 2013.

Past performance is no indication of current or future performance. The performance data does not take account of the commissions and costs incurred on the issue and redemption of units. Please note that changes in the rates of exchange may have an adverse effect on the value, price or income of an investment.

10 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Baring ASEAN Frontiers Fund - Investment Manager’s Report (continued)

Risk profile

The Fund is invested primarily in equities listed in countries which are members of the Association of South-East Asian Nations (“ASEAN”) and as such is exposed to the volatility that can characterise equity unit prices from time to time. Many of these countries are emerging equity markets, and as a result, the Fund can be exposed to economic, political and other risks associated with holding equities in developing markets. In addition to this, returns from overseas equity markets can also be subject to fluctuations in exchange rates, which can have the effect of eroding or enhancing the value of the investment returns for investors. Past performance is not a guide to future performance, there is no guarantee that the investment objective will be achieved and you may get back less than you initially invested.

Please refer to the Prospectus for the full risk profile. Investors should refer to the Prospectus and the Key Investor Information Document for the relevant unit class and carefully consider the potential risk factors before investing.

Strategy

Although the sell-off in the last year delivered good entry opportunities for the long-term investors, we are mindful of short-term macro headwinds still playing out. This along with the fact that markets, particularly Indonesia, rallied hard in the first quarter of 2014, prevented us from being too aggressive with country allocation. Instead we relied on a “bottom up” stock selection for our allocation of alpha stocks. The favourable long term demographics however predisposed us towards Indonesia and the Philippines. Furthermore, should Mr Joko Widodo win the Presidential Election in Indonesia in July, the markets are likely to see another leg up as investors look forward to his proposed structural reforms. As earnings momentum is still strong, particularly in consumer related Philippines companies, we would be looking there for opportunities to accumulate on any weaknesses. Infrastructure related companies will likely see a spurt of activity into 2016 as there is pressure for the President of the Philippines to deliver concrete evidence of improved infrastructure before he steps down. As for Thailand, which is seeing a tug of war between foreign investors and local investors, we prefer to approach the market based on opportunities at stock level. Thus, we added to a few of our Thai holdings whose valuations have become compelling after recent improvements, such as Quality House and Sino- Thai Engineering. We also added to selected exporters like Hana Microelectronics and Precious Shipping, whose earnings are more resilient given the weaker Thai baht. We continued to raise our exposure in Vietnam, adding a couple of new names towards the end of the year.

As a result, our most preferred markets were Frontiers (Vietnam and Sir Lanka), Indonesia and the Philippines. Meanwhile we were most underweight (relative to the performance comparator) in Singapore and Malaysia. Sector wise, we were overweight in Consumer Discretionary, Financials and Information Technology.

Performance

The Fund underperformed the performance comparator in the year. The detraction from performance was due to a weaker return in the second half of 2013 caused by the reversal of strong outperformance for holdings in TIP markets (Thailand, Indonesia and the Philippines). As a result, our decision to favour Indonesia, due to superior long-term growth outlook and cautious stances on Malaysia and Singapore, made a negative contribution at asset allocation level. Stock selection was also negative at both country and sector levels, notably in the TIP Markets, as many of our key holdings suffered due to profit taking giving strong returns in the past. At sector level, detraction was concentrated within the Financials, Industrials and Consumer Discretionary sectors. On the positive side, stock selection within Energy and Utilities added value, particularly for those in Malaysia.

In terms of individual stocks, the major positive contributors were Malaysian Utility and Energy names such as Tenaga Nasional, Dialog Group and Dayang Enterprise. These companies were beneficiaries of increasing capital expenditure by Petronas - the national oil company of Malaysia. Our liking for the domestic consumption Healthcare equipment maker OSIM in Singapore also added value. The major stock detractors were mainly construction companies, banks and property developers in Thailand, Malaysia and Indonesia. The stocks fell on macro uncertainties in the region, while their medium growth outlook remains intact.

11 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Baring ASEAN Frontiers Fund - Investment Manager’s Report (continued)

Review of the market

Equity market performance was turbulent in the year, particularly for the ASEAN region. The markets peaked out in May 2013 as investors’ sentiment turned bearish on the potential action of the US Federal Reserve to reduce bond purchasing, or ‘tapering’ as termed by market participants. Consequently, sentiment was negative towards economies/markets which are more vulnerable in an environment of less abundant liquidity, and took profit aggressively from countries like Indonesia which experienced widening current account deficits. Initial policy responses from Indonesian policy makers also shook the investors.

While negative sentiment focused on Indonesia, the representative economy in the ASEAN region, investors also became more cautious on other ASEAN markets such as the Philippines. In Thailand consumer and business confidence was also impacted by political chaos, as the democratically elected government was overthrown by massive anti-government protests. Elsewhere, Singapore markets were also weak as high income stocks suffered with an expectation of higher interest rates, while Malaysia was the most resilient market getting strong support from domestic investors. Investor preference switched from Emerging Markets to Developed Markets further fuelling the selling pressures in the ASEAN markets. The domestic demand driven markets became less desirable against North Asian markets like Korea and Taiwan, which are beneficiaries of the developed world recovery. As a result, ASEAN markets clearly lagged Asian and global markets in the year, particularly in the second half of 2013.

However, stepping into 2014, the ASEAN markets surprised investors with strong performance during the first quarter. This was due to a faster than expected improvement in trade and current account balances in Indonesia, driven by government policies to depreciate the local currency and to increase interest rates. Thailand was another outperformer in the region, with support from domestic investors and resilient corporate earnings. Last but not least, positive political developments in Indonesia (presidential nomination of Mr Joko Widodo, a popular reformer) and Thailand (anticipation to the end of the political impasse) helped reverse the overwhelming negative sentiment on ASEAN markets.

Market outlook

Although 2013 was a tough year for ASEAN markets, it was possibly a blessing in disguise in the long run just like the Asian Financial Crisis. The post Global Financial Crisis (“GFC”) era had seen ASEAN countries use domestic demand to drive growth when external demand was weak due to deleveraging in the developed world. Inevitably, after 5 years of strong growth, some overheating pressures built up in economies like Indonesia, and some excesses like high household debt in Thailand were beginning to emerge. Thus, the events in 2013 were timely catalysts for policy makers to address some of these issues before they became too entrenched. Encouragingly, the imminent change in political leadership in Indonesia will herald important reforms to sustain the country’s growth momentum. On the other hand, while the latest military coup in Thailand can be seen as a step back for democracy, local participants have deemed it to be more positive relative to the foreigners, while locals perceive it to be a step towards a temporary solution out of this political gridlock. Short-term growth outlook remains challenged but should the military be able to pump prime the economy via infrastructure spending then 2015 may see some pent up demand lifting Gross Domestic Product (“GDP”) growth. Meanwhile, in the Philippines growth remains buoyant, supported by strong consumer confidence. Ahead of the President’s term ending in 2016, the administration seems determined to ramp up infrastructure spending as a showcase of his achievements. This should provide a solid environment for companies exposed to this segment. So far, the first quarter earnings of 2014 has started on an encouraging note across ASEAN markets. The recent spate of corporate Mergers & Acquisitions (“M&A”) also highlighted the Singapore market as reasonable. While in Thailand, despite a challenging political and macro backdrop, Thai corporates are managing businesses sensibly. In Indonesia, macro improvements continue, and corporate earnings are now starting to outperform expectations. These developments should help sustain the gains made year to date in ASEAN markets, and continuous improvements in political developments should drive the markets higher.

The Frontier markets continue to look appealing, particularly Vietnam, whose economy has stabilised, and inflationary pressures have been contained. The newly set up Vietnam Asset Management Company should also gradually help liquidify the banking system, enabling credit to flow back to the economy. Furthermore, the country is benefiting from years of strong and sustained Foreign Direct Investments (“FDIs”), which has transformed its export base to one where mobile phones/electronics is one of the largest export contributors, alongside traditional industries like garments and agriculture. Corporate tax cuts this year should also help boost earnings.

12 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Baring ASEAN Frontiers Fund - Investment Manager’s Report (continued)

Market outlook (continued)

Another potential plus point for this market is that Vietnam stands to gain from any successful negotiations from the Trans Pacific Partnership. In addition, from a technical perspective, the upgrade of Qatar and UAE to emerging markets is likely to be positive to the remaining Frontier markets from a flows perspective.

Baring Asset Management (Asia) Limited, Appointed as Sub Investment Manager by Baring Asset Management Limited.

May 2014

13 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Portfolio statement As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Country Collective Investment Schemes Currency holdings Fair value US$ % of NAV Ireland Baring India Fund USD 225,380 2,621,164 0.45 Ireland Northern Trust Global Funds - US Dollar Fund USD 15,993,000 15,993,000 2.72 Singapore Suntec Real Estate Investment Trust SGD 5,009,000 6,835,165 1.17 Total Collective Investment Schemes 25,449,329 4.34

Equities Indonesia Ace Hardware Indonesia IDR 42,619,300 2,746,303 0.47 Astra International IDR 22,052,900 14,115,077 2.41 Astra Otoparts IDR 6,693,600 2,286,876 0.39 Bank Central Asia IDR 7,080,200 6,721,031 1.15 Bank Mandiri IDR 8,679,885 7,357,425 1.25 Bank Negara Indonesia Persero IDR 9,480,000 3,944,021 0.67 Bank Rakyat Indonesia Persero IDR 14,862,900 12,726,957 2.17 Bank Tabungan Negara Persero IDR 25,417,500 2,528,229 0.43 Bekasi Fajar Industrial Estate IDR 31,277,600 1,379,715 0.23 Ciputra Development IDR 59,334,500 5,209,057 0.89 Electronic City Indonesia IDR 9,572,900 1,904,396 0.33 Indo Tambangraya Megah IDR 1,038,500 2,286,020 0.39 Kalbe Farma IDR 24,283,400 3,224,064 0.55 Matahari Department Store IDR 3,270,200 4,235,717 0.72 Sri Rejeki Isman IDR 113,990,400 1,863,442 0.32 Summarecon Agung IDR 50,988,964 4,895,364 0.84 Supra Boga Lestari IDR 32,815,800 1,915,899 0.33 Surya Esa Perkasa IDR 9,128,800 1,350,192 0.23 Telekomunikasi Indonesia Persero IDR 61,011,900 11,952,770 2.04 Total Bangun Persada IDR 33,636,700 2,676,622 0.46 Tower Bersama Infrastructure IDR 5,028,900 2,740,308 0.47 Vale Indonesia IDR 5,549,600 1,704,025 0.29 Wijaya Karya Beton IDR 15,255,000 963,210 0.16 Wijaya Karya IDR 31,453,400 6,148,396 1.05 106,875,116 18.24

Malaysia CIMB Group Holdings MYR 5,317,000 12,130,348 2.07 Dayang Enterprise MYR 3,253,950 3,666,984 0.63 Dialog Group MYR 5,256,000 5,762,205 0.98 Gamuda MYR 2,741,700 3,853,745 0.66 Genting Class C MYR 495,200 438,257 0.07 Genting MYR 4,112,000 12,327,815 2.10 IHH Healthcare MYR 3,224,100 3,929,542 0.67 IJM Corp MYR 2,041,300 3,969,455 0.68 Malayan Banking MYR 2,031,500 6,152,667 1.05

14 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Portfolio statement (continued) As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Country Equities (continued) Currency holdings Fair value US$ % of NAV Malaysia Malaysia Airports MYR 1,381,300 3,405,134 0.58 (continued) Media Prima MYR 3,367,000 2,567,396 0.44 My EG Services MYR 3,973,000 3,333,646 0.57 Public Bank MYR 1,713,200 10,566,176 1.81 Puncak Niaga MYR 2,455,600 2,195,790 0.38 Sapurakencana Petroleum MYR 8,152,354 10,734,994 1.83 Tenaga Nasional MYR 4,263,700 15,433,145 2.63 Tune Ins MYR 8,220,600 5,487,952 0.94 105,955,251 18.09

Philippines Ayala Land PHP 10,715,300 7,222,852 1.23 DMCI Holdings PHP 2,250,480 3,617,023 0.62 GT Capital PHP 187,760 3,651,591 0.63 Manila Electric PHP 477,290 3,006,349 0.51 Melco Crown Philippines Resorts PHP 22,526,000 6,882,102 1.17 Metropolitan Bank & Trust PHP 2,724,270 5,175,991 0.88 Phoenix Petroleum Philippines PHP 14,111,040 1,880,206 0.32 Robinsons Land PHP 8,295,500 4,149,611 0.71 Robinsons Retail PHP 1,271,040 1,904,564 0.33 SM Prime PHP 10,660,700 3,902,706 0.67 Vista Land & Lifescapes PHP 14,599,500 1,948,565 0.33 43,341,560 7.40

Singapore Bumitama Agri SGD 1,654,000 1,441,065 0.25 CapitaLand SGD 3,426,000 8,695,847 1.48 DBS Group Holdings SGD 2,344,000 31,594,016 5.39 First Resources SGD 4,466,000 9,061,346 1.55 Genting Hong Kong USD 6,606,000 2,609,370 0.44 Genting Singapore SGD 5,733,000 6,044,100 1.03 Global Logistic Properties SGD 2,606,000 5,909,532 1.01 Golden Agri-Resources SGD 7,082,000 3,409,142 0.58 Jardine Cycle & Carriage SGD 155,000 5,759,468 0.97 Keppel SGD 2,104,380 17,631,382 3.01 M1 /Singapore SGD 1,949,000 5,210,566 0.89 OSIM International SGD 2,198,000 5,071,770 0.87 Oversea-Chinese Banking SGD 885,000 6,795,234 1.16 Pacc Offshore Services SGD 2,529,000 2,314,091 0.40 SIA Engineering SGD 501,000 1,909,445 0.33 Singapore Telecommunications SGD 9,918,000 30,145,417 5.15 United Overseas Bank SGD 1,648,000 28,506,938 4.87 Wilmar International SGD 2,771,000 7,474,292 1.28 179,583,021 30.66

15 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Portfolio statement (continued) As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Country Equities (continued) Currency holdings Fair value US$ % of NAV Sri Lanka Commercial Bank of Ceylon LKR 2,250,653 2,187,776 0.37 John Keells Holdings LKR 3,196,396 5,800,731 0.99 Sampath Bank LKR 967,894 1,427,579 0.25 9,416,086 1.61

Thailand Advanced Info Service THB 616,900 4,613,405 0.79 Airports of Thailand THB 382,500 2,293,109 0.39 Bangkok Dusit Medical Services THB 12,041,000 5,507,009 0.94 Hana Microelectronics THB 3,187,700 3,176,864 0.54 Hemaraj Land and Development THB 38,793,800 4,243,821 0.72 Kasikornbank THB 3,229,200 19,558,813 3.34 Krung Thai Bank THB 11,934,525 6,638,487 1.13 LPN Development Receipt THB 6,158,900 3,311,646 0.57 Minor International THB 5,448,720 4,057,916 0.69 Precious Shipping THB 2,714,900 2,307,162 0.39 PTT THB 375,100 3,570,173 0.61 PTT Global Chemical THB 3,176,020 6,845,717 1.17 Quality Houses THB 67,595,300 6,767,885 1.16 Siam Cement NVDR THB 774,400 10,338,096 1.77 Siam Commercial Bank PCL THB 803,600 4,109,883 0.70 Sino-Thai Engineering & Construction THB 13,245,400 7,613,240 1.30 94,953,226 16.21

Vietnam DHG Pharmaceutical VND 93,800 622,886 0.11 FPT VND 188,460 607,863 0.10 HAGL VND 2,002,670 2,469,793 0.42 PetroVietnam Drilling and Well Services VND 723,050 2,880,882 0.49 PetroVietnam Gas VND 42,300 198,634 0.03 6,780,058 1.15

Total equities 546,904,318 93.36

P-notes Vietnam JP Morgan Structured Products (Vietnam Dairy) USD 827,220 5,414,745 0.93 Total P-notes 5,414,745 0.93

Warrants Sri Lanka John Keells 12/11/2015 LKR 161,225 82,186 0.01 John Keells 11/11/2016 LKR 161,225 88,850 0.02 171,036 0.03

Vietnam VietNam Dairy Products USD 447,340 2,934,550 0.50 2,934,550 0.50

Total warrants 3,105,586 1.46

Total financial assets at fair value through profit or loss 580,873,978 100.09

16 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Portfolio statement (continued) As at 30 April 2014

Financial liabilities at fair value through profit or loss

Open forward foreign currency transactions Currency Currency Currency Maturity Unrealised % of NAV sold bought rate Counterparty date loss US$ US$ 207,603 ¥ 1,291,600 6.2215 Northern Trust 27/06/2014 (1,671) - US$ 6,507 ¥ 40,600 6.2398 Northern Trust 27/06/2014 (33) - US$ 17,581 ¥ 110,000 6.2568 Northern Trust 27/06/2014 (42) - Total unrealised loss on open foreign currency transactions (1,746) -

Total financial liabilities at fair value through profit or loss (1,746) -

Total investments at fair value through profit or loss 580,872,232 99.16 Cash 1,672,823 0.29 Other net assets 3,272,660 0.55 Total net assets attributable to holders of redeemable participating units 585,817,715 100.00

Analysis of portfolio % of Total assets* Collective Investment Schemes 4.31 Transferable securities** 94.14 Other assets 1.55 100.00

*Calculation based on the total assets of the Fund (excluding liabilities). This summary is a UCITS requirement.

**Transferable securities admitted to an official stock exchange listing or traded on a recognised market.

17 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Balance sheet As at 30 April 2014

Baring ASEAN Baring ASEAN Frontiers Fund Frontiers Fund 30/04/2014 30/04/2013 Assets Notes US$ US$ Financial assets at fair value through profit or loss 1 580,873,978 732,227,605 Cash 1 1,672,823 11,414,540 Receivable for securities sold 1 2,183,735 9,741,062 Receivable for units sold 1 1,881,613 15,737,124 Dividends and interest receivable 1 3,357,297 2,466,838 Other assets 1 3,945 41,536 Total assets 589,973,391 771,628,705

Liabilities Financial liabilities at fair value through profit or loss 1 1,746 252 Management fee payable 2 543,860 834,411 Administration fee payable 2 208,913 285,473 Trustee fee payable 2 11,611 15,886 Payable for securities purchased 1 4,853,974 13,625,308 Payable for units redeemed 1 7,132 1,239,493 Other liabilities 2 69,830 158,324

Total liabilities (excluding net assets attributable to holders of redeemable participating units) 5,697,066 16,159,147

Net assets attributable to holders of redeemable participating units (at bid market prices) 584,276,325 755,469,558

Adjustments from bid market prices to last traded market prices 1,541,390 3,493,812

Net assets attributable to holders of redeemable participating units (at last traded market prices) 585,817,715 758,963,370

Units in issue (Note 4) Class A USD Inc 1,774,159 2,352,541 Class A EUR Inc 784,360 817,288 Class A GBP Inc 218,152 198,005 Class A RMB Hedged Acc 1,240 81 Class A USD Acc 11,486 26,857 Class I EUR Acc 163,293 130,822 Class I GBP Acc 96,560 20,789 Class I USD Acc 85,037 -

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

18 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Statement of changes in net assets attributable to holders of redeemable participating units for the year ended 30 April 2014

Baring ASEAN Baring ASEAN Frontiers Fund Frontiers Fund 30/04/2014 30/04/2013 Notes US$ US$ Net assets attributable to holders of redeemable participating unitholders at the beginning of the year 758,963,370 419,995,538 (Decrease)/increase in assets for the year from operations attributable to holders of redeemable participating units (126,862,479) 112,979,932 Issue of redeemable participating units for the year 4 608,441,981 517,856,840 Redemption of redeemable participating units for the year 4 (653,945,458) (291,868,940) Income equalisation 3 (779,699) - Net assets attributable to holders of redeemable participating units at the end of the year 585,817,715 758,963,370

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

19 Baring International Umbrella Fund Baring ASEAN Frontiers Fund

Profit and loss account For the year ended 30 April 2014

Baring ASEAN Baring ASEAN Frontiers Fund Frontiers Fund 30/04/2014 30/04/2013 Investment income Notes US$ US$ Bank interest income 1 686 169 Dividend income 1 19,903,991 13,148,896 Net fair value (loss)/gain on financial assets and at fair value through profit or loss 1 (128,194,700) 109,347,622 Total investment (loss)/income (108,290,023) 122,496,687

Expenses Management fees 2 7,887,592 5,932,764 Administration fees 2 2,966,453 2,163,190 Trustee fees 2 164,389 120,177 General expenses 2 131,717 126,639 Total operating expenses 11,150,151 8,342,770

Net (loss)/income before finance costs (119,440,174) 114,153,917

Finance costs Distributions 3 (4,013,309) (1,650,855) Bank interest expense 1 (4,615) (6,069) Total finance costs (4,017,924) (1,656,924)

(Loss)/profit for the financial year (123,458,098) 112,496,993

Tax Withholding tax on dividends and other investment income (1,451,959) (1,384,968) Operating (loss)/profit (124,910,057) 111,112,025

Movements in adjustments from bid market prices to last traded market prices (1,952,422) 1,867,907

(Decrease)/increase in net assets for the year from operations attributable to holders of redeemable participating units (126,862,479) 112,979,932

Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the profit and loss account.

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

20 Baring International Umbrella Fund Baring Asia Growth Fund

Baring Asia Growth Fund — Investment Manager’s Report

Investment objective and policy

The investment objective of the Baring Asia Growth Fund (“the Fund”) is to achieve long-term capital growth in the value of assets by investing in Asia and the Pacific region (excluding Japan). The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in equities and equity-related securities of companies incorporated in, or exercising the predominant part of their economic activity in Asia including Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand, or quoted or traded on the stock exchanges in those countries. Please refer to the Prospectus for the full investment objective and policy.

How the Fund is managed

The Fund is invested in the Asia Pacific equity markets using a “bottom-up” investment approach. This means we focus more on the individual merits of a specific company, rather than taking a stance on a sector of the market or macroeconomic trends such as interest rate rises. Within this, we manage the Fund using a “Growth at a Reasonable Price”, or GARP, approach. This means that when researching candidates for the portfolio, we place just as much emphasis on the likely growth in corporate earnings at a company as we do on the unit price valuation before deciding whether to invest or not. We believe this approach combines the best features of both “growth” and “value” investment styles, to the benefit of investors.

Performance

Summary of Fund performance (excluding distribution payments where applicable)

Net Asset Value as at Net Asset Value as at Net Asset Value % 30/04/2014 30/04/2013 change Price per unit Price per unit

Baring Asia Growth Fund Class A USD Inc US$61.95 US$63.37 (2.24)

Baring Asia Growth Fund Class A EUR Inc €44.79 €48.47 (7.59)

Baring Asia Growth Fund Class A GBP Inc £36.84 £40.92 (9.97)

Performance record to 30 April 2014 (including distribution payments where applicable)

01/05/2013 - 01/05/2012 - 01/05/2011 - 01/05/2010 - 01/05/2009 - 30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 % % % % % Baring Asia Growth Fund Class A USD Inc (2.24) 6.97 (15.38) 21.59 44.00 (USD terms)

MSCI All Country Asia ex Japan Total, Gross Return 2.02 9.25 (10.15) 22.14 48.47 Index (USD terms)*

Baring Asia Growth Fund Class A EUR Inc (7.59) 8.14 (5.14) 9.25 43.64 (EUR terms)

Baring Asia Growth Fund Class A GBP Inc (9.97) 12.32 (13.32) 11.90 39.24 (GBP terms)

21 Baring International Umbrella Fund Baring Asia Growth Fund

Baring Asia Growth Fund — Investment Manager’s Report (continued)

Performance (continued)

Performance figures are shown net of fees and charges, on a NAV per unit basis, with gross revenue reinvested.

Source: Morningstar/Barings/MSCI.

The MSCI data is for Barings use only and may not be redistributed or used in connection with creating or offering any securities, financial products or indices.

* Current performance comparison effective from 2 August 2010. Prior to this date the Fund was shown against MSCI AC FE ex Japan Total, Gross Return Index.

The Fund was launched on 3 February 1987.

Risk profile

The Fund is invested primarily in equities listed in the Asia Pacific region excluding Japan. As such, the Fund is exposed to the volatility that can characterise equity unit prices from time to time. Many of these countries are emerging equity markets and, as a result, the Fund can be exposed to economic, political and other risks associated with holding equities in developing markets.

Returns from overseas equity markets can also be subject to fluctuations in exchange rates, which can have the effect of eroding or enhancing the value of the investment returns for investors. Past performance is not a guide to future performance, there is no guarantee that the investment objective will be achieved and you may get back less than you initially invested.

Strategy

During the year we pursued a strategy of constructing our portfolio around (1) Long-term growth names that trade at attractive valuations and (2) sustainable dividend growth names which offer good earnings and dividend growth. We believe such a strategy enables us to benefit from growth in Asia but also offers a downside cushion in an uncertain macro environment. We are also more focused on beneficiaries of economic growth recovery in the region, especially China.

Technology, Consumer Discretionary, and Materials were among the stronger sectors as markets focused on beneficiaries of global demand recovery. Auto sectors in Korea and China are among the brighter areas as they stand to benefit from both the global recovery as well as growing Asian domestic consumption despite the stronger currency headwinds. Regardless of concerns over the slowdown in smartphone growth, we continue to believe in a technology shift to “smart-mobility” which in our opinion will benefit Asian hardware names with strong competitiveness both in technology as well as branding. We maintain our constructive views on the long-term competitiveness of leaders in the Technology and Auto sectors in North Asia. Although traditional defensive sectors such as Healthcare and Consumer Staples are likely to stay weak as the mean-reversion trade out of “expensive defensives” continues, we maintain key holdings within the sector with attractive valuations and stable growth outlook backed by sustainable demand outlook.

22 Baring International Umbrella Fund Baring Asia Growth Fund

Baring Asia Growth Fund — Investment Manager’s Report (continued)

Performance

The Fund underperformed the performance comparator, MSCI AC Asia ex Japan (“the Index”), during the period under review. We believe that this can be seen largely as an “air pocket” in performance given the very volatile market conditions driven by macro events external to Asia. To deal with this circumstance, we made necessary adjustments by reducing the areas with less conviction or new risk factors identified. We remained focused on key thematics such as (1) Long-term growth names that trade at attractive valuations and (2) beneficiaries of global demand recovery especially in developed economies such as the US. However we are also aware of their “top-down” macro risks factors. With macro risk factors stabilisation, the more fundamental portfolio positioning should again take a larger role in delivering performance.

In terms of attribution analysis, stock selection was the main source of detraction mainly due to Korea and Thailand. Our holdings in Korean exporters like Hyundai Motors suffered due to a competitive threat of a weaker Japanese yen while favoured holdings in Thailand suffered from profit taking after strong performance earlier in the year. Asset allocation was another negative contributor, largely due to our positive stance in China and Indonesia, and the off-index exposure in Australia. On the positive side, our holdings in selected thematic stocks partly offset the negative attribution, included Taiwanese Tech stocks (Largan Precision, Catcher Technology and Delta Electonics) and beneficiaries of global demand recovery (Techtronic Industries).

Review of the market

Equity markets have been very volatile due to the macro events outside of Asia – namely the fear of tapering of quantitative easing in the US, which was finally announced in December 2013. The concern of the potential impact on interest rates has caused a sharp correction in Southeast Asian markets and high dividend paying stocks.

It was also a rocky start to 2014 within Asian markets. Continued concerns over the fate of the more vulnerable emerging markets caused a ripple effect with some risks being taken off the table. The fear is that higher interest rates in the US and other developed economies may pressurise weaker economies and currencies. Although in the US economic indicators continue to be solid and are not exceeding expectations.

Asian markets noticeably lagged the global markets, especially the US stock market, during the year. Within the region, North Asian markets posted larger gains while ASEAN markets were decisively negative. Weaker markets such as India and Indonesia fell on continuing concerns over the strength of the US dollar, macro conditions, and profit taking among the key reasons. Currency concerns also loomed over markets such as Indonesia and India due to their large current account deficits. North Asia had better returns due to stronger current account balances and was perceived to have better exposure to the developed market demand recovery. Global economic recovery remains centred on the developed economies such as the US and Japan. Market outlook

Global markets may be volatile in the short-term due to some potential turbulence on the geo-political front. In our view market participants are likely to stay cautious over the potential knock-on impact until slower regional economic growth and continuing financial market volatility appear to subside.

In addition, the gradual "tapering" of the easing monetary policy of the US will continue to run in the background. This may persist to impact Asian markets, which though far from the epicentre of many of the troubles, are still impacted by swings in risk appetite in global markets. The macro backdrop, however, should turn more positive in the mid-to-long run with prospects of a more synchronised global economic recovery in 2014. In the longer term, Asia remains well positioned in terms of both growth and fundamentals and any volatility could provide interesting entry points.

The Fund continues to focus on North Asia giving undemanding valuations and a larger exposure to the developed market recovery. Although we remain vigilant, we are seeing more opportunities in ASEAN markets. Overall we continue to see volatility as a good opportunity to gain exposure to long-term winners in such key areas as Asian consumption, beneficiaries of technology migration, and growing global Asian brands.

Baring Asset Management (Asia) Limited, Appointed as Sub Investment Manager by Baring Asset Management Limited.

May 2014

23 Baring International Umbrella Fund Baring Asia Growth Fund

Portfolio statement

As at 30 April 2014

Financial assets at fair value through profit or loss

Nominal Country Collective Investment Schemes Currency holdings Fair value US$ % of NAV Ireland Baring China A-Share Fund USD 265,000 2,329,350 3.50 Ireland Baring India Fund USD 280,444 3,256,907 4.89 Total Collective Investment Schemes 5,586,257 8.39

Equities China BAIOO Family Interactive HKD 1,996,000 332,111 0.50 China Pacific Insurance HKD 704,200 2,198,085 3.30 China State Construction International HKD 1,146,000 1,906,810 2.87 China Unicom Hong Kong HKD 906,000 1,388,282 2.09 CSPC Pharmaceutical HKD 2,354,000 1,943,209 2.92 Goodbaby International HKD 1,101,000 602,124 0.90 Haitong Securities HKD 1,684,400 2,350,745 3.53 Hengan International HKD 169,500 1,782,899 2.68 Lenovo HKD 1,600,000 1,816,083 2.73 Tencent Holdings HKD 10,300 642,210 0.96 14,962,558 22.48

Hong Kong AIA HKD 569,000 2,759,517 4.14 Hutchison Whampoa HKD 75,000 1,025,416 1.54 Melco International Development HKD 502,000 1,528,089 2.30 Samsonite International HKD 115,800 367,432 0.55 Techtronic Industries HKD 583,000 1,849,851 2.78 7,530,305 11.31

India Axis Bank INR 14,891 375,293 0.56 HDFC Bank INR 29,763 357,289 0.54 Infosys INR 22,281 1,173,987 1.76 Maruti Suzuki India INR 11,200 357,132 0.54 Motherson Sumi Systems INR 117,452 495,101 0.74 Reliance Industries INR 86,369 1,340,463 2.01 4,099,265 6.15

Indonesia Bank Negara Indonesia Persero IDR 3,800,500 1,581,145 2.38 Ciputra Development IDR 9,340,300 819,998 1.23 Kalbe Farma IDR 6,232,000 827,412 1.24 3,228,555 4.85

Malaysia Malaysia Airports MYR 181,300 446,935 0.67 Public Bank MYR 123,700 762,921 1.15 Tenaga Nasional MYR 189,400 685,564 1.03 1,895,420 2.85

Philippines SM Prime PHP 2,263,600 828,666 1.25 828,666 1.25

24 Baring International Umbrella Fund Baring Asia Growth Fund

Portfolio Statement (continued)

As at 30 April 2014

Financial assets at fair value through profit or loss

Nominal Country Equities (continued) Currency holdings Fair value US$ % of NAV Singapore DBS SGD 102,000 1,374,825 2.07 Singapore Telecommunications SGD 555,000 1,686,903 2.53 3,061,728 4.60

South Korea Hyundai Motor KRW 8,759 1,949,647 2.93 Hyundai Steel KRW 20,541 1,341,834 2.02 LG Display KRW 27,520 731,079 1.10 NAVER KRW 920 657,079 0.99 Orion Corp/Republic of Korea KRW 1,297 987,844 1.48 Samsung Electronics KRW 3,131 3,136,151 4.71 SK Hynix KRW 51,830 2,008,895 3.02 10,812,529 16.25

Taiwan Catcher Technology TWD 238,000 2,005,796 3.01 Delta Electronics TWD 238,000 1,454,103 2.18 E.Sun Financial TWD 114,776 12,352 0.02 E.Sun Financial Class C TWD 806,000 487,102 0.73 Everlight Electronics TWD 265,000 619,544 0.93 Largan Precision TWD 32,000 1,992,185 2.99 MediaTek TWD 107,760 1,684,307 2.53 Quanta Computer TWD 441,000 1,209,179 1.82 Taiwan Semiconductor Manufacturing TWD 747,000 2,918,935 4.39 12,383,503 18.60

Thailand Airports of Thailand THB 87,000 521,570 0.78 Krung Thai Bank THB 2,423,500 1,348,053 2.03 1,869,623 2.81

Total equities 60,672,152 91.15

Total investments at fair value through profit or loss 66,258,409 99.54 Cash 199,189 0.30 Other net assets 102,408 0.16 Total net assets attributable to holders of redeemable participating units 66,560,006 100.00

Analysis of portfolio % of Total assets* Collective investments scheme 8.29 Transferable securities** 90.05 Other assets 1.66 100.00

*Calculation based on the total assets of the Fund (excluding liabilities). This summary is a UCITS requirement.

**Transferable securities admitted to an official stock exchange listing or traded on a recognised market.

25 Baring International Umbrella Fund Baring Asia Growth Fund

Balance sheet

As at 30 April 2014

Baring Asia Baring Asia Growth Fund Growth Fund 30/04/2014 30/04/2013 Assets Notes US$ US$ Financial assets at fair value through profit or loss 1 66,258,409 98,001,632 Cash 1 199,189 1,874,503 Receivable for securities sold 1 788,445 3,743,423 Receivable for units sold 1 16,246 62,954 Dividends and interest receivable 1 110,654 137,020 Other assets 1 2,976 22,912 Total assets 67,375,919 103,842,444

Liabilities Management fee payable 2 61,783 133,925 Administration fee payable 2 25,148 34,608 Trustee fee payable 2 1,402 2,255 Payable for securities purchased 1 630,596 2,324,416 Payable for units redeemed 1 189,011 2,133,852 Other liabilities 2 30,380 40,593 Total liabilities (excluding net assets attributable to holders of redeemable participating units) 938,320 4,669,649

Net assets attributable to holders of redeemable participating units (at bid market prices) 66,437,599 99,172,795

Adjustments from bid market prices to last traded market prices 122,407 209,042

Net assets attributable to holders of redeemable participating units (at last traded market prices) 66,560,006 99,381,837

Units in issue (Note 4) Class A USD Inc 902,498 1,188,761 Class A EUR Inc 137,404 317,240 Class A GBP Inc 34,452 62,093

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

26 Baring International Umbrella Fund Baring Asia Growth Fund

Statement of changes in net assets attributable to holders of redeemable participating units for the year ended 30 April 2014

Baring Asia Baring Asia Growth Fund Growth Fund 30/04/2014 30/04/2013 Notes US$ US$

Net assets attributable to holders of redeemable participating units at the beginning of the year 99,381,837 111,220,551 (Decrease)/increase in net assets for the year from operations attributable to holders of redeemable participating units (2,249,310) 6,225,129 Issue of redeemable participating units for the year 4 27,189,203 46,459,981 Redemption of redeemable participating units for the year 4 (57,704,140) (64,523,824) Income equalisation 3 (57,584) - Net assets attributable to holders of redeemable participating units at the end of the year 66,560,006 99,381,837

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

27 Baring International Umbrella Fund Baring Asia Growth Fund

Profit and loss account For the year ended 30 April 2014

Baring Asia Baring Asia Growth Fund Growth Fund 30/04/2014 30/04/2013 Investment income Notes US$ US$ Interest income 1 205 489 Dividend income 1 1,744,382 1,942,755 Net fair value (loss)/gain on financial assets at fair value through profit or loss 1 (2,168,941) 6,243,786 Total investment (loss)/income (424,354) 8,187,030

Expenses Management fees 2 1,017,408 1,265,291 Administration fees 2 391,823 455,505 Trustee fees 2 21,441 25,306 General expenses 2 105,596 71,083 Total operating expenses 1,536,268 1,817,185

Net (expense)/income before finance costs and tax (1,960,622) 6,369,845

Finance costs Bank interest expense 1 (776) (1,298) Total finance costs (776) (1,298)

(Loss)/profit for the financial year before tax (1,961,398) 6,368,547

Tax Withholding tax on dividends and other investment income (201,277) (208,275) Total tax (201,277) (208,275)

Operating (loss)/profit (2,162,675) 6,160,272

Movement in adjustments from bid market prices to last traded market prices (86,635) 64,857

(Decrease)/increase in net assets for the year from operations attributable to holders of redeemable participating units (2,249,310) 6,225,129

Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the profit and loss account.

The accompanying notes form an integral part of these financial statements. 28 Baring International Umbrella Fund Baring Australia Fund

Baring Australia Fund — Investment Manager’s Report

Investment objective and policy

The investment objective of the Baring Australia Fund (“the Fund”) is to achieve long-term capital growth in the value of assets by investing in Australia. The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in equities and equity-related securities of companies incorporated in, or exercising the predominant part of their economic activity in Australia, or quoted or traded on the stock exchanges in Australia. Please refer to the Prospectus for the full investment objective and policy.

How the Fund is managed

The Manager of Baring International Umbrella Fund, Baring International Fund Managers (Ireland) Limited, has appointed Baring Asset Management Limited as the Investment Manager of the Fund. In turn, Baring asset Management Limited has appointed Baring Asset Management (Asia) Limited as Sub-Investment Manager to the Fund.

The Fund is invested in the Australian equity markets, using a “bottom-up” investment approach. This means we focus more on the individual merits of a specific company, rather than taking a stance on a sector of the market or macroeconomic trends such as interest rate rises. Within this, we manage the Fund using a “Growth at a Reasonable Price”, or GARP, approach. This means that when researching candidates for the portfolio, we place just as much emphasis on the likely growth in corporate earnings at a company as we do on the unit price valuation before deciding whether to invest or not. We believe this approach combines the best features of both “growth” and “value” investment styles, to the benefit of investors.

Performance

Summary of Fund performance (excluding distribution payments where applicable)

Net Asset Value as at Net Asset Value as at Net Asset Value % 30/04/2014 30/04/2013 change Price per unit Price per unit

Baring Australia Fund Class A USD Inc US$128.89 US$136.13 (5.32) Baring Australia Fund Class A AUD Inc A$139.11 A$131.58 5.72 Baring Australia Fund Class A EUR Inc €93.19 €104.12 (10.50) Baring Australia Fund Class A GBP Inc £76.64 £87.90 (12.81) Baring Australia Fund Class I GBP Acc* £78.53 N/A N/A

* The Class I GBP Acc unit class was launched on 30 April 2013.

Performance record to 30 April 2014 (including distribution payments where applicable)

01/05/2013 - 01/05/2012 - 01/05/2011 - 01/05/2010 - 01/05/2009 - 30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 % % % % % Baring Australia Fund Class A USD Inc (USD (3.36) 15.10 (12.09) 23.33 70.00 terms) MSCI Australia 10/40 Total, Gross Return Index (1.72) 26.12 (9.40) 21.51 67.14 (USD terms)

Baring Australia Fund Class A AUD Inc (AUD 7.91 16.00 (8.08) 5.21 0.63 terms)*

Baring Australia Fund Class A EUR Inc (EUR (8.63) 16.38 (1.46) 10.79 69.60 terms)

Baring Australia Fund Class A GBP Inc (GBP (11.00) 20.83 (9.96) 13.48 15.28 terms)*

Baring Australia Fund Class I GBP Acc (GBP (10.66) N/A N/A N/A N/A terms)*

29 Baring International Umbrella Fund Baring Australia Fund

Baring Australia Fund — Investment Manager’s Report (continued)

Performance (continued)

Performance figures are shown net of fees and charges, on a NAV per unit basis, with gross revenue reinvested.

Source: Morningstar/Barings/MSCI.

The MSCI data is for Barings use only and may not be redistributed or used in connection with creating or offering any securities, financial products or indices.

*The Class A AUD Inc unit class was launched on 15 October 2009. The Class A GBP Inc unit class was launched on 21 December 2009. The Class I GBP Acc unit class was launched on 30 April 2013.

The Fund was launched on 4 December 1981.

Risk profile

The Fund is a country-specific fund. A country-specific fund is generally more risky than funds which invest more broadly across a range of global equity markets. As the Baring Australia Fund is invested in equities it is exposed to the volatility which can characterise equity unit prices from time to time. In addition to this, returns from overseas equity markets can also be subject to fluctuations in exchange rates, which can have the effect of eroding or enhancing the value of the investment returns for investors. Past performance is not a guide to future performance, there is no guarantee that the investment objective will be achieved and you may get back less than you initially invested.

Strategy

Given our expectations that the Australian market recovery will be led by the housing market, we have positioned our portfolio to benefit from this. Therefore we remained positively exposed to building material stocks such as James Hardies and Fletcher Building, which have demonstrated strong cost discipline during market downturns. In addition, James Hardies also provided great leverage to the US housing recovery. We also continue to favour the Consumer Discretionary sector as our holdings within this space are either enjoying a structural growth spurt (such as REA Group) or are penetrating new markets and improving operational efficiencies (such as Domino’s Pizza). Furthermore, we believe high dividend paying stocks with steady earnings growth like Banks and Telecoms will continue to be in demand given a still subdued interest rate environment. While we are neutral in Energy as well as Healthcare sectors, our stock preferences are clear within these sectors. In the Energy space, we favour stocks like Oil Search which are just past the intensive capital expenditure phase and will soon enjoy strong growth in free cash flows. In Healthcare, we remain committed to CSL and Resmed, both are global leaders in their niches.

Performance

The Fund underperformed the performance comparator during the period due to stock selection. The disappointing stock attribution came from a lack in exposure to a few large caps which outperformed such as Macquarie Bank, Seek Limited and Lend Lease. There were also small/mid cap holdings which underperformed such as McMillan Shakespeare, which dropped due to regulatory changes, PanAust, a copper miner whose proposed acquisition of another mining project was not positively received by the market. Other holdings like QBE Insurance and Treasury Wines suffered from profit downgrades and therefore underperformed.

30 Baring International Umbrella Fund Baring Australia Fund

Baring Australia Fund — Investment Manager’s Report (continued)

Performance (continued)

While sector allocation was an overall positive, such as overweighting Consumer Discretionary at expense of Consumer Staples, and stock selection was strong in sectors like Consumer Discretionary due to overweight positions in strong performers like Domino’s Pizza and 21st Century Fox, this was not sufficient to offset the overall negative stock selection discussed above. In addition, we partially protected the portfolio from the Australian dollar weakness with currency forward contracts which had a positive contribution to performance.

Review of the market

For the year under review, the Australian market had a rocky start and closed the year at its post Global Financial Crisis high in local currency terms. However in US dollar terms, the market traded in range and ended the period with a slightly negative return. The divergence between local currency and US dollar returns was of course driven by the 11% decline in the Australian dollar against the US dollar.

The US Federal Reserve’s announcement that it would soon commence reducing its bond purchases (“tapering”) led investors to avoid high dividend paying stocks, and consequently took profit in the relatively high dividend paying Australian market. Furthermore, expectations of a stronger US economy and higher US bond interest rates resulted in a stronger US dollar against most other currencies including the Australian dollar. At the same time, the Reserve Bank of Australia (“RBA”) reduced interest rates and talked down the Australian dollar as part of monetary policy easing, as they recognised the Australian economy was suffering from an imminent cut back in mining capital expenditure. Although the Australian dollar fell below 0.90 against the US dollar at one point, it recovered some of its losses by the end of the year, after the RBA indicated that quantitative easing is done for now.

However, the Australian stock market fared better than the Australian dollar after its initial correction, as the RBA rate cuts finally revived the housing market, which is important to the economy. In addition, the Federal Election in September last year saw the business friendly Coalition returned to power. This boosted both business and investor confidence. The sharp correction in the Australian dollar also helped to restore competitiveness and boost earnings for companies with large exposure to offshore operations. Finally, the earnings season turned out to be satisfactory, with forward earnings now looking to be growing again after a few years of decline.

Market outlook

The Australian economy is expected to remain on its path to recovery, aided firstly by the housing recovery which we are currently seeing, before spilling over to the rest of the economy. We are mindful of the potential headwinds from the contraction of mining capital expenditure as well as the Federal Government’s fiscal austerity to reduce its budget deficit. The RBA is likely to keep monetary policy accommodative, ensuring that the tentative recovery does not get derailed. Under such a scenario, the Australian dollar is likely to come under less pressure although we do not expect much appreciation given the still subdued price outlook for the major commodities exports such as iron ore, gold and coal.

The market is likely to trade higher in the coming year driven by earnings growth and good dividend yield. Companies that can deliver stable and consistent earnings growth such as banks should still deliver positive returns. Furthermore, companies in a structural growth phase or that are undergoing an earnings turnaround should also find favour amongst investors. With interest rates remaining subdued, we would expect more opportunistic buyers be it from private equity or strategic corporate buyers of distressed/underperforming Australian corporates such as those we have witnessed in recent months. Finally, the globally competitive Australian companies should still benefit from the global economic recovery and this should further spur unit price performance.

Baring Asset Management (Asia) Limited, Appointed as Sub Investment Manager by Baring Asset Management Limited.

May 2014

31 Baring International Umbrella Fund Baring Australia Fund

Portfolio statement

As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Industry Collective Investment Schemes Currency holdings Fair value US$ % of NAV Northern Trust Global Funds - Euro Fund EUR 88,000 121,700 0.09 Northern Trust Global Funds - US Dollar Fund USD 100,000 100,000 0.07 Total Collective Investment Schemes 221,700 0.16

Equities Consumer Crown AUD 146,213 2,171,526 1.58 Discretionary Domino's Pizza Enterprises AUD 53,824 986,388 0.72 Flight Centre Travel AUD 27,428 1,365,897 1.00 iCar Asia AUD 580,582 637,421 0.46 Premier Investments AUD 90,715 832,910 0.61 REA AUD 32,862 1,423,990 1.04 Tabcorp AUD 323,669 1,115,551 0.81 8,533,683 6.22

Consumer Freedom Foods AUD 122,444 331,258 0.24 Staples Wesfarmers AUD 160,043 6,333,032 4.62 Woolworths AUD 118,958 4,113,208 3.00 10,777,498 7.86

Energy Oil Search AUD 228,570 1,882,636 1.37 Origin Energy AUD 235,887 3,254,199 2.37 Santos AUD 31,273 398,398 0.29 Woodside Petroleum AUD 57,927 2,189,710 1.60 7,724,943 5.63

Financials AMP AUD 282,788 1,323,116 0.96 Australia & New Zealand Banking AUD 412,515 13,174,267 9.60 Commonwealth Bank of Australia AUD 176,404 12,895,282 9.40 Goodman AUD 215,690 993,189 0.72 Henderson Receipt AUD 245,381 1,032,149 0.75 Insurance Australia AUD 207,575 1,101,984 0.80 Macquarie AUD 62,554 3,344,077 2.44 Mirvac AUD 1,306,373 2,112,069 1.54 National Australia Bank AUD 205,945 6,735,524 4.91 QBE Insurance AUD 64,379 690,714 0.50 Stockland AUD 615,485 2,212,558 1.61 Suncorp AUD 130,369 1,571,437 1.15 Westfield AUD 289,491 2,931,573 2.14 Westpac Banking AUD 399,496 12,999,073 9.49 63,117,012 46.01

Health Care Ansell AUD 20,194 338,085 0.25 CSL AUD 87,232 5,530,543 4.03 ResMed Receipt AUD 148,745 745,564 0.54 6,614,192 4.82

32 Baring International Umbrella Fund Baring Australia Fund

Portfolio Statement (continued)

As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Industry Equities (continued) Currency holdings Fair value US$ % of NAV Industrials Auckland International Airport NZD 301,385 1,023,126 0.75 Aurizon AUD 518,430 2,483,282 1.81 Brambles AUD 305,746 2,668,438 1.94 Seek AUD 88,455 1,370,263 1.00 7,545,109 5.50

Information Freelancer AUD 420,545 455,873 0.33 Technology iProperty AUD 187,252 449,336 0.33 905,209 0.66

Materials Amcor AUD 247,826 2,360,399 1.72 BHP Billiton AUD 358,961 12,554,796 9.14 Fletcher Building NZD 117,358 983,458 0.72 Fortescue Metals AUD 302,452 1,412,318 1.03 Iluka Resources AUD 99,929 823,074 0.60 Independence NL AUD 73,937 295,931 0.22 James Hardie Industries AUD 117,574 1,493,462 1.09 Newcrest Mining AUD 106,444 1,030,583 0.75 Orora AUD 583,924 749,293 0.55 Rio Tinto AUD 75,117 4,294,067 3.13 Sandfire Resources NL AUD 66,752 350,665 0.26 Western Areas AUD 196,641 750,613 0.55 27,098,659 19.76

Telecommunication NEXTDC AUD 320,769 551,292 0.40 Services Telstra AUD 787,767 3,802,603 2.77 4,353,895 3.17

Total equities 136,670,200 99.63

Total investments at fair value through profit or loss 136,891,900 99.79 Cash 88,336 0.06 Other net assets 201,596 0.15 Total net assets attributable to holders of redeemable participating units 137,181,832 100.00

Analysis of portfolio % of Total assets* Collective Investment Schemes 0.16 Transferable securities** 99.43 Other assets 0.41 100.00

*Calculation based on the total assets of the Fund (excluding liabilities). This summary is a UCITS requirement.

**Transferable securities admitted to an official stock exchange listing or traded on a recognised market.

33 Baring International Umbrella Fund Baring Australia Fund

Balance sheet

As at 30 April 2014

Baring Baring Australia Fund Australia Fund 30/04/2014 30/04/2013 Assets Notes US$ US$ Financial assets at fair value through profit or loss 1 136,891,900 170,964,556 Cash 1 88,336 - Receivable for securities sold 1 415,638 254,818 Receivable for units sold 1 - 1,245,175 Dividends and interest receivable 1 55,108 146,028 Other assets 1 2,283 2,954 Total assets 137,453,265 172,613,531

Liabilities Bank overdraft 1 - 434,584 Management fee payable 2 141,716 191,420 Administration fee payable 2 51,072 61,997 Trustee fee payable 2 2,920 3,811 Payable for securities purchased 1 - 506,162 Payable for units redeemed 1 115,362 729,647 Other liabilities 2 26,702 37,455 Total liabilities (excluding net assets attributable to holders of redeemable participating units) 337,772 1,965,076

Net assets attributable to holders of redeemable participating units (at bid market prices) 137,115,493 170,648,455

Adjustments from bid market prices to last traded market prices 66,339 549,943

Net assets attributable to holders of redeemable participating units (at last traded prices) 137,181,832 171,198,398

Units in issue (Note 4) Class A USD Inc 891,980 1,060,023 Class A AUD Inc 13,843 23,232 Class A EUR Inc 150,194 164,668 Class A GBP Inc 7,194 9,631 Class I GBP Acc 1,095 -

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

34 Baring International Umbrella Fund Baring Australia Fund

Statement of changes in net assets attributable to holders of redeemable participating units for the year ended 30 April 2014

Baring Baring Australia Fund Australia Fund 30/04/2014 30/04/2013 Notes US$ US$

Net assets attributable to holders of redeemable participating units at the beginning of the year 171,198,398 203,357,079 (Decrease)/increase in net assets for the year from operations attributable to holders of redeemable participating units (10,394,273) 18,327,744 Issue of redeemable participating units for the year 4 62,396,655 98,506,735 Redemption of redeemable participating units for the year 4 (85,726,116) (148,993,160) Income Equalisation 3 (292,832) - Net assets attributable to holders of redeemable participating units at the end of the year 137,181,832 171,198,398

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

35 Baring International Umbrella Fund Baring Australia Fund

Profit and loss account

For the year ended 30 April 2014

Profit and Loss Account for the year ended 30 April 2014 Baring Baring Australia Fund Australia Fund 30/04/2014 30/04/2013 Notes US$ US$ Investment income Interest income 1 2,402 38,692 Dividend income 1 7,772,750 8,995,830 Net fair value (loss)/gain financial assets at fair value through profit or loss 1 (9,765,936) 19,335,419 Total investment (loss)/income (1,990,784) 28,369,941

Expenses Management fees 2 1,742,892 2,124,920 Administration fees 2 634,542 764,971 Trustee fees 2 34,969 42,498 General expenses 2 91,413 79,537 Total operating expenses 2,503,816 3,011,926

Net (expense)/income before finance costs and tax (4,494,600) 25,358,015

Finance costs Distributions 3 (3,417,122) (4,778,569) Bank interest expense 1 (621) (4,063) Total finance costs (3,417,743) (4,782,632)

(Loss)/profit for the financial year before tax (7,912,343) 20,575,383

Tax Withholding tax on dividends and other investment income (1,998,326) (1,978,364) Total tax (1,998,326) (1,978,364)

Operating (loss)/profit (9,910,669) 18,597,019

Movement in adjustments from bid market prices to last traded market prices (483,604) (269,275)

(Decrease)/increase in net assets for the year from operations attributable to holders of redeemable participating units (10,394,273) 18,327,744

Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the profit and loss account.

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

36 Baring International Umbrella Fund Baring Europa Fund

Baring Europa Fund — Investment Manager’s Report

Investment objective and policy

The investment objective of the Baring Europa Fund (“the Fund”) is to achieve long-term capital growth in the value of assets by investing in companies in Europe (including the United Kingdom). The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in equities and equity-related securities of companies incorporated, or exercising the predominant part of their economic activity in any European country (including the United Kingdom), or quoted or traded on the stock exchanges in such countries. Please refer to the Prospectus for the full investment objective and policy. How the Fund is managed

The Manager of Baring International Umbrella Fund, Baring International Fund Managers (Ireland) Limited, has appointed Baring Asset Management Limited as the Investment Manager of the Fund.

The Fund is invested in European equity markets including the UK, using a “bottom-up” investment approach. This means we focus more on the individual merits of a specific Company, rather than taking a stance on a sector of the market or macroeconomic trends such as interest rate rises. Within this, we manage the Fund using a “Growth at a Reasonable Price”, or GARP, approach. This means that when researching candidates for the portfolio, we place just as much emphasis on the likely growth in corporate earnings at a Company as we do on the unit price valuation before deciding whether to invest or not. We believe this approach combines the best features of both “growth” and “value” investment styles, to the benefit of investors. We invest in companies which we believe offer potential for delivering better than expected earnings growth. We do this by carefully researching a Company’s corporate strategy and revenue sources. An important part of the investment process involves regular meetings with the management of companies in which we are considering investment. We then work to put a price on the units of the company in the light of our assessment of its earnings prospects and compare this to its peers in the sector and globally. When we are satisfied that a Company meets our criteria for investing, we purchase an appropriate number of units. Performance

Summary of Fund performance (excluding distribution payments where applicable)

Net Asset Value as at Net Asset Value as at Net Asset Value % 30/04/2014 30/04/2013 change Price per unit Price per unit

Baring Europa Fund Class A USD Inc US$54.59 US$43.69 24.95

Baring Europa Fund Class A EUR Inc €39.47 €33.42 18.10

Baring Europa Fund Class A RMB Hedged Acc* ¥338.57 N/A N/A

Baring Europa Fund Class C EUR Inc €38.44 €32.69 17.59

Baring Europa Fund Class C USD Inc US$53.25 US$42.82 24.36

*The Class A RMB Hedged Acc unit class was launched on 4 April 2014.

37 Baring International Umbrella Fund Baring Europa Fund

Baring Europa Fund — Investment Manager’s Report (continued)

Performance (continued)

Performance record to 30 April 2014 (including distribution payments where applicable)

01/05/2013 - 01/05/2012 - 01/05/2011 - 01/05/2010 - 01/05/2009 - 30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 % % % % %

Baring Europa Fund Class A USD Inc (USD terms) 25.64 11.10 (18.16) 25.27 32.96

MSCI Europe Total, Gross Return Index (USD 22.92 18.84 (15.77) 25.77 34.10 terms)

Baring Europa Fund Class A EUR Inc (EUR terms) 18.76 12.34 (8.24) 12.53 32.65

Baring Europa Fund Class A RMB Hedged Acc (0.43) N/A N/A N/A N/A (RMB terms)*

Baring Europa Fund Class C EUR Inc (EUR terms) 17.59 11.19 (9.19) 11.49 29.97

Baring Europa Fund Class C USD Inc (USD terms) 24.36 9.97 (18.98) 24.09 31.60

Performance figures are shown net of fees and charges, on a NAV per unit basis, with gross revenue reinvested.

Source: Morningstar/Barings/MSCI.

The MSCI data is for Barings use only and may not be redistributed or used in connection with creating or offering any securities, financial products or indices.

The Fund was launched on 21 April 1987.

*The Class A RMB Hedged Acc unit class was launched on 4 April 2014.

Risk profile

The Fund is invested in European companies. It is therefore susceptible to a decline in European markets. In addition, the approach we take to managing the Fund means that the Fund is likely to prove more volatile in performance than more broadly-based equity funds. The Fund is also exposed to currency risks because the base currency is in US dollars and the underlying holdings are in a mix of European currencies such as the Euro or Swiss franc. As such, exchange rate fluctuations between the US dollar and the various European currencies held in the Fund can enhance or diminish returns for US dollar-based investors.

Past performance is not a guide to future performance, there is no guarantee that the investment objective will be achieved and you may get back less than you initially invested.

38 Baring International Umbrella Fund Baring Europa Fund

Baring Europa Fund — Investment Manager’s Report (continued)

Strategy

Baring’s strategy, where we focus on investing in GARP (Growth At a Reasonable Price) stocks through a rigorous “bottom-up” stock selection process, has remained in place throughout this reporting period. In turn, as we have remained confident over the past year that the broader European stockmarket remained good value given our assessment of the economic environment, despite several issues clouding the outlook at times, our more specific approach over the year was to tilt the Fund more towards those companies affording attractive growth attributes, and less so on those where valuation was the most attractive characteristic. This tactic was rewarded by the Europa Fund comfortably outperforming the Performance Comparison over the period. Looking ahead, this rigorous focus on the analysis of longer term fundamental strengths of all the companies we research with an emphasis on more growth criteria during strong market phases, and valuation credentials during more uncertain times, will remain in place.

Performance

The Europa Fund outperformed its performance comparator, the MSCI Europe Index, (“the Index”) by approximately 2.70% over the year. Underperformance came from some of our UK resources stocks (such as Tullow Oil and Vedanta) and from not holding strongly performing stocks such as Total and Siemens. However, this was more than offset by holding numerous stocks that outperformed the index. Pleasingly, these stocks came from a range of sectors, rather than being attributable to a narrow select few. As such, some of the better stock performers during the year came from the Banking sector in the shape of Natixis and Unicredit (whilst at the same time avoiding HSBC, which produced a negative return), Healthcare stock Shire, Industrial groups Cargotec and Vinci, and from the Utilities and Media sectors through Red Electrica and Sky Deutschland respectively.

Review of the market

Over the year as a whole, the success of the rather loose monetary policy that has been adopted by the ECB (European Central Bank), and to a certain extent the austerity programmes undertaken in certain European countries, have been reflected by a recovery in economic data such as Gross Domestic Product (“GDP”) and various Purchasing Managers Index (“PMI”) readings, as well as corporate trading data, which in turn have encouraged further investment in the region’s stockmarkets. This led to a return of over 20% in the MSCI Europe index. This return has obviously not been achieved without the occasional setback however, and as referred to elsewhere in this Report, there were some periods where various issues, from across the globe, acted as headwinds to equity performance in Europe and further afield.

For instance, economic data from China has proved disappointing at times, whilst the extent and speed of the curtailing of the US Federal Reserve’s quantitative easing (“QE”) programme, referred to as ‘tapering’, has impacted global market sentiment from the time it was first mentioned in earnest last summer to the present day. This latter issue had a particularly noticeable effect on emerging market currencies in the early part of 2014, which in turn impacted the unit prices of European companies with above average exposure to these regions. In addition, there have been escalations closer to home in the conflicts affecting Syria and more latterly Ukraine.

However it has been very noticeable that following these various issues, investors in European equity markets have typically regained their composure quickly, as they appear to have looked past short-term headwinds and more to the longer term investment environment being indicated by the economic and trading data referred to above.

39 Baring International Umbrella Fund Baring Europa Fund

Baring Europa Fund — Investment Manager’s Report (continued)

Market outlook

As we move into the summer months, the economic environment across Europe continues to look rather benign. Interest rates remain accommodative and as per moves and statements by the ECB, including the comment from the President Mario Draghi that interest rates were expected to remain at present/low levels for an “extended period of time”, the body appears inclined to continue to support the Eurozone through a continuation of loose monetary policy. This may stretch to a programme of Europe’s own QE (although we would note that no such move has been confirmed as at the time of writing).

As such, we remain confident that the general direction of travel of economic statistics will remain upwards, which should continue to be reflected in an improving stockmarket performance. Furthermore, we have become encouraged by more favourable company commentaries on the trading backdrop across Europe following more recent results releases, a trait that largely was missing in prior reporting periods. Therefore, whilst always being mindful of valuation levels given that some stocks no longer offer the investment upside they once did, we are confident there is considerable scope to invest in companies offering attractive capital growth prospects, particularly as we have the flexibility to tilt the Fund towards more European-centric stocks, or those with more promising overseas growth potential as and when we feel it is right to do so.

Baring Asset Management Limited.

May 2014

40 Baring International Umbrella Fund Baring Europa Fund

Portfolio statement

As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Industry Equities Currency holdings Fair value US$ % of NAV Consumer Adidas EUR 18,728 1,989,888 1.24 Discretionary Bayerische Motoren Werke EUR 24,275 3,019,722 1.88 Immoeast* EUR 379,667 - - Porsche Automobil EUR 23,610 2,597,423 1.62 Sky Deutschland EUR 358,952 2,993,368 1.87 TUI Travel GBP 319,724 2,285,004 1.43 WPP GBP 129,091 2,741,713 1.71 15,627,118 9.75

Consumer Imperial Tobacco GBP 58,065 2,494,756 1.56 Staples Nestle CHF 57,814 4,430,593 2.76 6,925,349 4.32

Energy Aker Solutions NOK 119,637 1,951,839 1.22 BG Group GBP 152,831 3,084,007 1.92 Eni EUR 113,041 2,934,315 1.83 Galp Energia EUR 113,102 1,965,347 1.23 Tullow Oil GBP 247,855 3,669,862 2.29 13,605,370 8.49

Financials Allianz EUR 19,574 3,372,905 2.10 Alpha Bank EUR 3,103,152 2,952,555 1.84 Amlin GBP 251,189 1,894,461 1.18 Anglo Irish Bank** EUR 334,211 - - Assicurazioni Generali EUR 106,000 2,481,814 1.55 AXA EUR 120,226 3,153,245 1.97 Banco Bilbao Vizcaya Argentaria EUR 223,491 2,728,840 1.70 Banco Popular Espanol EUR 262,966 1,940,173 1.21 Barclays GBP 877,175 3,710,507 2.31 BNP Paribas EUR 39,157 2,919,885 1.82 BUWOG EUR - 5 - Cembra Money Bank CHF 37,615 2,586,271 1.61 Close Brothers GBP 84,460 1,985,551 1.24 GAM CHF 115,743 2,099,408 1.31 Immofinanz EUR 646,285 2,408,737 1.50 KBC Ancora EUR 39,849 1,447,443 0.90 Natixis EUR 377,601 2,668,981 1.66 Phoenix GBP 212,192 2,433,526 1.52 ST Modwen Properties GBP 351,579 2,156,753 1.35 UBS CHF 154,544 3,209,666 2.00 UniCredit EUR 358,032 3,223,364 2.01 Zurich Insurance CHF 9,044 2,577,555 1.61 51,951,645 32.39

Health Care Basilea Pharmaceutica CHF 20,884 2,142,616 1.34 Bayer EUR 33,716 4,652,030 2.90 Novo Nordisk DKK 83,080 3,762,090 2.35

41 Baring International Umbrella Fund Baring Europa Fund

Portfolio statement (continued)

As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Industry Equities (continued) Currency holdings Fair value US$ % of NAV Health Care Sanofi EUR 35,590 3,844,019 2.40 (continued) Shire GBP 66,305 3,677,220 2.29 18,077,975 11.28

Industrials Aer Lingus EUR 483,098 1,007,161 0.63 Aer Lingus EUR 615,983 1,286,329 0.80 Bouygues EUR 58,759 2,621,066 1.63 Cargotec EUR 46,686 2,093,824 1.31 Airbus EUR 51,180 3,511,719 2.19 Fomento de Construcciones y Contratas EUR 80,954 1,781,769 1.11 Royal Mail GBP 166,081 1,469,022 0.92 Ryanair Holdings EUR 210,404 1,986,508 1.24 Ryanair Holdings EUR 172,871 1,632,144 1.02 Skanska SEK 100,475 2,275,449 1.42 Vinci EUR 36,294 2,726,974 1.70 22,391,965 13.97

Information ASML EUR 31,960 2,632,055 1.64 Technology Cap Gemini EUR 31,581 2,231,790 1.39 4,863,845 3.03

Materials ArcelorMittal EUR 189,388 3,061,776 1.91 Vedanta Resources GBP 104,749 1,639,038 1.02 Xstrata GBP 706,804 3,766,552 2.35 8,467,366 5.28

Telecommunication BT Group GBP 483,481 2,983,789 1.86 Services Koninklijke EUR 607,285 2,128,167 1.33 Telefonica Deutschland EUR 221,579 1,830,629 1.14 Telenet EUR 25,659 1,488,246 0.93 Vodafone GBP 993,238 3,730,457 2.33 12,161,288 7.59

Utilities GDF Suez EUR 122,951 3,092,938 1.93 Red Electrica EUR 36,363 2,926,271 1.83 6,019,209 3.76

Total equities 160,091,130 99.86

Total investments at fair value through profit or loss 160,091,130 99.86 Bank overdraft (319,979) (0.20) Other net assets 547,091 0.34 Total net assets attributable to holders of redeemable participating units 160,318,242 100.00

% of Total Analysis of portfolio assets*** Transferable securities**** 99.33 Other Assets 0.67 100.00

42 Baring International Umbrella Fund Baring Europa Fund

Portfolio statement (continued)

As at 30 April 2014

*Due to a corporate action on Immoeast the security has been priced at zero as at 31 October 2011 with agreement from the Board of Directors of the Manager. **Anglo Irish Bank has been delisted from the stock exchange and written down to zero as at 19 January 2009 with agreement from the Board of Directors of the Manager. ***Calculation based on the total assets of the Fund (excluding liabilities). This summary is a UCITS requirement. ****Transferable securities admitted to an official stock exchange listing or traded on a recognised market with the exception of Anglo Irish Bank and Immoeast.

43 Baring International Umbrella Fund Baring Europa Fund

Balance sheet As at 30 April 2014

Baring Baring Europa Fund Europa Fund 30/04/2014 30/04/2013 Assets Notes US$ US$ Financial assets at fair value through profit or loss 1 160,091,130 67,867,961 Cash 1 - 143,675 Receivable for securities sold 1 615,220 39,331 Receivable for units sold 1 2,986 9,014 Dividends and interest receivable 1 454,985 212,169 Other assets 1 5,086 3,079 Total assets 161,169,407 68,275,229

Liabilities Bank overdraft 1 319,979 - Management fee payable 2 163,808 74,587 Administration fee payable 2 59,450 29,479 Trustee fee payable 2 4,499 2,731 Payable for securities purchased 1 156,166 - Payable for units redeemed 1 193,981 412,986 Other liabilities 2 51,717 27,246

Total liabilities (excluding net assets attributable to holders of redeemable participating units) 949,600 547,029

Net assets attributable to holders of redeemable participating units (at bid market prices) 160,219,807 67,728,200

Adjustments from bid market prices to last traded market prices 98,435 27,188

Net assets attributable to holders of redeemable participating units (at last traded market prices) 160,318,242 67,755,388

Units in issue (Note 4) Class A USD Inc 2,362,994 1,157,474 Class A EUR Inc 496,291 378,475 Class A RMB Hedged Acc 10 - Class C EUR Inc 23,189 7,263 Class C USD Inc 56,219 7,702

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

44 Baring International Umbrella Fund Baring Europa Fund

Statement of changes in net assets attributable to holders of redeemable participating units for the year ended 30 April 2014

Baring Baring Europa Fund Europa Fund 30/04/2014 30/04/2013 Notes US$ US$ Net assets attributable to holders of redeemable participating units at the beginning of the year 67,755,388 71,465,180 Increase in net assets for the year from operations attributable to holders of redeemable participating units 19,994,526 6,236,636 Issue of redeemable participating units for the year 4 129,485,376 16,435,854 Redemption of redeemable participating units for the year 4 (57,365,587) (26,382,282) Income equalisation 3 448,539 - Net assets attributable to holders of redeemable participating units at the end of the year 160,318,242 67,755,388

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

45 Baring International Umbrella Fund Baring Europa Fund

Profit and loss account

For the year ended 30 April 2014

Baring Baring Europa Fund Europa Fund Notes 30/04/2014 30/04/2013 US$ US$ Investment income Bank interest income 1 2,111 - Dividend income 1 3,254,217 2,074,040 Net fair value gain on financial assets at fair value through profit or loss 1 19,419,286 6,664,212 Total investment income 22,675,614 8,738,252

Expenses Management fees 2 1,308,510 842,959 Administration fees 2 468,915 303,465 Trustee fees 2 26,170 16,859 General expenses 2 102,351 89,726 Total operating expenses 1,905,946 1,253,009

Net income before finance costs and tax 20,769,668 7,485,243

Finance costs Distributions 3 (368,570) (802,415) Bank interest expense 1 (517) (886) Total finance costs (369,087) (803,301)

Profit for the financial year before tax 20,400,581 6,681,942

Tax Withholding tax on dividends and other investment income (477,302) (423,346) Total tax (477,302) (423,346)

Operating profit 19,923,279 6,258,596

Movement in adjustments from bid market prices to last traded market prices 71,247 (21,960)

Increase in net assets for the year from operations attributable to holders of redeemable participating units 19,994,526 6,236,636

Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the profit and loss account.

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

46 Baring International Umbrella Fund Baring Hong Kong China Fund

Baring Hong Kong China Fund — Investment Manager’s Report

Investment objective and policy

The investment objective of the Baring Hong Kong China Fund (“the Fund”) is to achieve long-term capital growth in the value of assets by investing in Hong Kong, China and Taiwan. The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in equities and equity-related securities of companies incorporated in, or exercising the predominant part of their economic activity in, Hong Kong or China, or quoted or traded on the stock exchanges in those countries. The Manager may also invest in companies incorporated in, or exercising the predominant part of the economic activity in Taiwan or quoted or traded on the Taiwan stock exchange. Please refer to the Prospectus for the full investment objective and policy.

How the Fund is managed

The Fund is invested in Hong Kong and China and, to a lesser extent, the Taiwanese equity market, using a “bottom-up” investment approach. This means we focus more on the individual merits of a specific company, rather than taking a stance on a sector of the market or macroeconomic trends such as interest rate rises. Within this, we manage the Fund using a “Growth at a Reasonable Price”, or GARP, approach. This means that when researching candidates for the portfolio, we place just as much emphasis on the likely growth in corporate earnings at a company as we do on the unit price valuation before deciding whether to invest or not. We believe this approach combines the best features of both “growth” and “value” investment styles, to the benefit of investors.

Performance

Summary of Fund performance (excluding distribution payments where applicable)

Net Asset Value as at Net Asset Value as at Net Asset Value % 30/04/2014 30/04/2013 change Price per unit Price per unit

Baring Hong Kong China Fund Class A USD Inc US$800.64 US$809.61 (1.11)

Baring Hong Kong China Fund Class A EUR Inc €578.94 €619.23 (6.51)

Baring Hong Kong China Fund Class A GBP Inc £476.12 £522.78 (8.93)

Baring Hong Kong China Fund Class A HKD Inc HK$6,207.40 HK$6,283.78 (1.22)

Baring Hong Kong China Fund Class A RMB Hedged Acc* ¥4,971.59 N/A N/A

Baring Hong Kong China Fund Class A USD Acc US$805.43 US$809.72 (0.53)

Baring Hong Kong China Fund Class C EUR Inc €554.36 €595.43 (6.90)

Baring Hong Kong China Fund Class C USD Inc US$761.54 US$773.30 (1.52)

Baring Hong Kong China Fund Class I GBP Acc* £476.25 N/A N/A *The Class A RMB Hedged Acc unit class was launched on 4 April 2014. The Class I GBP Acc unit class was launched on 7 April 2014.

47 Baring International Umbrella Fund Baring Hong Kong China Fund

Baring Hong Kong China Fund — Investment Manager’s Report (continued)

Performance (continued)

Performance record to 30 April 2014 (including distribution payments where applicable)

01/05/2013 - 01/05/2012 - 01/05/2011 - 01/05/2010 - 01/05/2009 - 30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 % % % % %

Baring Hong Kong China Fund Class A USD Inc (0.53) (0.47) (17.02) 13.56 40.30 (USD terms)

MSCI China Total, Gross Return Index (USD terms) (0.95) 4.42 (11.00) 11.74 41.70

Baring Hong Kong China Fund Class A EUR Inc (5.95) 0.63 (6.99) 2.04 39.96 (EUR terms)

Baring Hong Kong China Fund Class A GBP Inc (8.39) 4.50 (15.00) 4.52 6.38 (GBP terms)*

Baring Hong Kong China Fund Class A HKD Inc (1.21) (0.44) (17.15) 14.24 N/A (HKD terms)*

Baring Hong Kong China Fund Class A RMB Hedged (4.23) N/A N/A N/A N/A Acc (RMB terms)*

Baring Hong Kong China Fund Class A USD Acc (0.53) (0.46) (1.45) N/A N/A (USD terms)*

Baring Hong Kong China Fund Class C EUR Inc (6.90) (0.37) (7.93) 1.13 39.02 (EUR terms)

Baring Hong Kong China Fund Class C USD Inc (1.52) (1.46) (17.86) 12.45 38.91 (USD terms)

Baring Hong Kong China Fund Class I GBP Acc (4.92) N/A N/A N/A N/A (GBP terms)*

Performance figures are shown net of fees and charges, on a NAV per unit basis, with gross revenue reinvested.

Source: Morningstar/Barings/MSCI.

For data sourced from Morningstar: © Morningstar. All Rights Reserved.The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The MSCI data is for Barings use only and may not be redistributed or used in connection with creating or offering any securities, financial products or indices.

The Fund was launched on 3 December 1982.

*The Class A GBP Inc unit class was launched on 21 December 2009. The Class A HKD Inc unit class was launched on 10 August 2010. The Class A USD Acc unit class was launched on 14 March 2012. The Class A RMB Hedged Acc unit class was launched on 4 April 2014. The Class I GBP Acc unit class was launched on 7 April 2014.

48 Baring International Umbrella Fund Baring Hong Kong China Fund

Baring Hong Kong China Fund — Investment Manager’s Report (continued)

Performance (continued)

Risk profile

The Fund is invested primarily in equities listed in the Hong Kong and China equity markets and as such is exposed to the volatility that can characterise equity unit prices from time to time. Although Hong Kong is considered a developed market, China is regarded as an emerging equity market. As a result, the Fund can be exposed to economic, political and other risks associated with holding equities in developing markets. In addition to this, returns from overseas equity markets can also be subject to fluctuations in exchange rates, which can have the effect of eroding or enhancing the value of the investment returns for investors. Past performance is not a guide to future performance, there is no guarantee that the investment objective will be achieved and you may get back less than you initially invested.

Strategy

We target attractively valued companies that we believe have the potential to deliver sustainable growth. We believe that current valuations reflect the moderating growth outlook for China. We are taking the opportunity to be more selective, adding to companies with good growth prospects and taking profits on stocks which are now less attractive from a valuation perspective.

During the year we increased our exposure to the insurance and renewable energy/environmental protection industries, as well as some selected economically sensitive areas of the market such as airlines and export related companies. We funded these moves from internet, Healthcare and Financials. Elsewhere we increased the Fund’s weighting to selected Telecoms and Taiwanese Technology companies. In terms of asset allocation, we favour Consumer Discretionary, Industrials, Healthcare and Information Technology, while we are cautious on Energy, Financials, Consumer Staples and Telecoms.

In general, we remain upbeat on non-banking Financials, with a cautious stance on banks. We remain favourable towards domestic consumption themes but we are selective on China consumer staples as we believe that unit price valuations are stretched in that space. We hold a long-term positive view on the Information Technology sector and internet space, as well as clean energy and environmental companies, but believe that short-term valuations are starting to become a little high here too. We will continue to look for long-term investment opportunities created by the Chinese government’s reform efforts, as well as opportunities in the new economy that is taking shape as a result of these reforms.

Performance

The Fund outperformed the performance comparator, MSCI China Total Return (“the Index”) during the period. Asset allocation was the principal driver of the relative performance, with the decision to favour Information Technology adding most value, together with our more cautious approach to Telecoms, Energy, Materials and Financials.

Meanwhile stock selection was mixed. Good stock selection in the Consumer Discretionary, Energy, Consumer Staples and Healthcare sectors enhanced relative performance, while Information Technology and Financials detracted. Major positive contributors in the Consumer sectors included our favoured holdings in a Macau casino operator, global luggage maker, power tool manufacturer and Chinese infant-formula maker, all of which performed well on favourable industry trends and a positive fundamental outlook. Our overweight exposure relative to the Index in a Chinese Healthcare company also performed well thanks to booming sales and developments in its pharmaceuticals pipeline. Our positive stance towards an oilfield services provider was another positive contributor in the Energy sector on better than expected profit margin improvements and good visibility on the earnings growth outlook.

49 Baring International Umbrella Fund Baring Hong Kong China Fund

Baring Hong Kong China Fund — Investment Manager’s Report (continued)

Performance (continued)

Within the Information Technology sector, the major detractor was the decision to avoid a Chinese internet company, which was trading on what we regarded as already high share price valuations. The share price has continued to rise as investors regard it as a real open platform company in the internet space. A non-Index holding in a Taiwanese smartphone maker also fell on earnings disappointment. Elsewhere our favoured holdings in a number of property developers were negatively impacted by slowing economic growth and the challenging domestic liquidity situation in China.

Review of the market

The offshore China equities market was volatile during the year. Major concerns were the economic outlook and raising cost of capital. Market sentiment was also impacted by volatility in global equities concerning the Federal Reserve’s decision to begin to reduce the level of liquidity provided to the market, and domestic liquidity in mainland China. At the time of writing, the China H-unit Index (“HSCEI”) is trading close to its historical trough level. At sector level, Information Technology was the clear outperformer in the year, posting a positive gain around 70%, followed by Utilities and Consumer Staples. Financials, Energy and Telecoms were the major laggards, registering most negative returns.

There were signs of better than expected economic recovery in 2013 as the Purchasing Managers' Index (“PMI”) and trade figures were above expectations. However, macroeconomic data turned weak across the board into the first quarter of 2014, due to the seasonal effects of Chinese New Year, and a delayed negative impact from the deterioration in domestic liquidity conditions. After Chinese New Year, the People's Bank of China proactively injected liquidity into the economic system in order to lower elevated market rates. However, despite fast declining short-term interest rates, long-term interest rates stayed at a relatively high level as loan demand remained quite strong.

Policy wise, the market had been focused on the third Plenary Meeting of the 18th Congress of the Chinese Communist Party held in November 2013 and the National People’s Congress meeting held in 2014. In both meetings, Premier Li Keqiang emphasised the importance of maintaining reasonable economic growth during the reform process. The speeches boosted confidence in the offshore Chinese equity market, as investors started to expect small scale stimulus to stabilise the economic slide, which led to a recovery in market performance towards the end of year 2013.

Market outlook

We believe the outlook for the Chinese economy is more positive in the medium to long term following the third Plenary Meeting of the 18th Congress of the Chinese Communist Party in November last year. Much had been expected of the communication that had been issued in the wake of the meeting, perhaps too much, but it did set out a blueprint for far-reaching reforms in China that we believe should help boost more sustainable economic growth in the world’s second-largest economy over the long run. Setting up the Central Reform Leading Group and setting the time-table to achieve key reform breakthroughs by 2020 also demonstrated the determination of the leadership to back reforms.

In our opinion, the most important element of the meeting was the resolution that the Chinese leadership is now determined to push on with moving China firmly into a more market-oriented approach that is now more suited to its current needs. Market forces, the Plenum concluded, should be the driving force of the economy, and the decisive force in resources pricing and allocation, although state-owned enterprises (“SOEs”) still have an important part to play. This will help China to improve overall investment efficiency and returns.

We’ve seen significant progress in financial reforms since the Third Plenary meeting, including widening the daily trading band for the Renminbi, issuing the first batch of banking licences to the private sector, as well as the newly announced scheme on the mutual access of Hong Kong and Shanghai Exchanges. We expect more to come in the near term.

50 Baring International Umbrella Fund Baring Hong Kong China Fund

Baring Hong Kong China Fund — Investment Manager’s Report (continued)

Market outlook (continued)

In our view, China is now moving towards a more market-oriented economy, buttressed by a more effective judiciary and local government infrastructure, which should be supportive of better business conditions. Growth in the short term may continue to face some volatility. Striking a balance between maintaining steady growth and pushing forward structural reforms will remain a key challenge for China in the foreseeable future. However, with reforms, we do see structural mid to long-term upside in China’s economy. China has chosen to tackle these problems now in order to lay the foundations for long-term growth, which we view as the correct path, rather than simply delaying reforms as had been the case until now.

Currently, valuations remain undemanding in our view, on both a historic basis and versus the rest of the world, and we would view any extended weakness in the Chinese market as an opportunity to add to existing positions or open new ones.

Baring Asset Management (Asia) Limited, Appointed as Sub Investment Manager by Baring Asset Management Limited.

May 2014

51 Baring International Umbrella Fund Baring Hong Kong China Fund

Portfolio statement

As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Industry Collective Investment Schemes Currency holdings Fair value US$ % of NAV Baring China A-Share Fund USD 1,301,600 11,441,064 0.55 Baring China Bond Fund USD 475,000 4,807,000 0.23 Northern Trust Global Funds - US Dollar Fund USD 22,776,000 22,776,000 1.10 Total Collective Investment Schemes 39,024,064 1.88

Equities Consumer Belle International Holdings HKD 5,008,000 5,174,041 0.25 Discretionary Brilliance China Automotive HKD 12,210,000 18,709,627 0.90 China Merchants Land HKD 91,404,000 11,553,785 0.56 Ctrip.com International ADR USD 262,100 12,169,303 0.59 Galaxy Entertainment HKD 2,091,000 16,397,990 0.79 Geely Automobile HKD 33,230,000 11,529,637 0.56 Guangzhou Automobile HKD 14,344,000 14,449,550 0.69 Haier Electronics Group HKD 5,194,000 12,728,832 0.61 Home Inns & Hotels Management ADR USD 155,800 4,401,350 0.21 Melco Crown Entertainment ADR USD 237,148 8,195,835 0.39 New Oriental Education & Technology ADR USD 604,000 14,502,040 0.70 Nexteer Automotive HKD 5,992,000 3,918,436 0.19 Prada HKD 1,051,900 8,398,430 0.40 Samsonite International HKD 14,362,200 45,571,056 2.19 Shenzhou International HKD 4,053,000 13,905,649 0.67 Techtronic Industries HKD 12,620,500 40,044,667 1.93 Weifu High-Technology HKD 1,079,566 3,517,350 0.17 245,167,578 11.80

Consumer Hengan International Group HKD 745,000 7,836,340 0.38 Staples Tsingtao Brewery HKD 3,310,000 24,057,746 1.16 YuanShengTai Dairy Farm HKD 386,000 63,728 - 31,957,814 1.54

Energy China Oilfield Services HKD 16,102,000 38,297,794 1.84 China Petroleum & Chemical HKD 107,480,000 94,685,042 4.56 CNOOC HKD 47,000 77,354 - PetroChina HKD 41,676,000 48,164,500 2.32 181,224,690 8.72

Financials Agricultural Bank of China HKD 80,565,000 33,668,552 1.62 AIA HKD 4,027,600 19,532,921 0.94 Bank of China HKD 52,446,000 22,999,813 1.11 China Cinda Asset Management HKD 88,982,162 44,761,082 2.15 China CITIC Bank HKD 30,497,000 18,173,230 0.87

52 Baring International Umbrella Fund Baring Hong Kong China Fund

Portfolio statement (continued)

As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Industry Equities (continued) Currency holdings Fair value US$ % of NAV Financials China Construction Bank HKD 138,988,220 95,730,928 4.60 (continued) China Galaxy Securities HKD 4,649,500 2,710,677 0.13 China Life Insurance HKD 29,689,000 76,357,859 3.67 China Merchants Bank HKD 29,288,867 52,133,235 2.51 China Minsheng Banking HKD 60,000 60,364 - China Overseas Land & Investment HKD 13,446,000 32,951,844 1.58 China Pacific Insurance HKD 7,926,503 24,741,727 1.19 China Vanke HKD 3,978,912 6,415,158 0.31 Haitong Securities HKD 12,991,600 18,131,048 0.87 Industrial & Commercial Bank of China HKD 171,605,025 102,038,471 4.91 Longfor Properties HKD 20,165,500 26,010,099 1.25 New China Life Insurance HKD 4,105,000 12,072,050 0.58 Ping An Insurance HKD 7,740,500 57,158,066 2.75 Shimao Property HKD 13,500 26,572 - Sun Hung Kai Properties HKD 573,000 7,217,053 0.35 652,890,749 31.39

Health Care China Medical System Holdings HKD 24,576,000 29,099,592 1.40 CSPC Pharmaceutical HKD 40,128,000 33,125,352 1.59 Guangzhou Baiyunshan Pharmaceutical HKD 9,686,000 28,672,144 1.38 Sino Biopharmaceutical HKD 68,000 53,151 - Sinopharm group HKD 4,773,200 12,497,947 0.60 Tong Ren Tang Technologies HKD 1,641,000 4,741,215 0.23 108,189,401 5.20

Industrials Air China HKD 8,918,000 5,049,693 0.24 China Conch Venture HKD 11,625,500 28,040,533 1.35 China Eastern Airlines HKD 14,824,000 4,569,791 0.22 China International Marine Containers HKD 6,266,100 12,365,787 0.60 China Merchants International HKD 22,000 68,529 - China Southern Airlines HKD 30,594,000 9,076,055 0.44 China State Construction International HKD 28,086,000 46,731,812 2.25 CSR HKD 24,739,000 18,060,576 0.87 Guangshen Railway HKD 9,994,000 3,764,048 0.18 Hutchison Whampoa HKD 2,682,000 36,668,881 1.76 Kerry Logistics Network HKD 15,868,000 23,291,501 1.12 Orient Overseas International HKD 869,500 4,138,367 0.20 Shenzhen International HKD 8,244,500 9,953,440 0.48 Tungda Innovative Lighting* HKD 46,050,000 - - Weichai Power HKD 381,000 1,324,393 0.06 Zhuzhou CSR Times Electric HKD 3,470,500 10,138,957 0.49 213,242,363 10.26

53 Baring International Umbrella Fund Baring Hong Kong China Fund

Portfolio statement (continued)

As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Industry Equities (continued) Currency holdings Fair value US$ % of NAV Information 21Vianet ADR USD 316,079 8,015,763 0.39 Technology Baidu USD 596 92,428 - BAIOO Family Interactive HKD 32,190,000 5,356,039 0.26 Catcher Technology TWD 1,725,000 14,537,801 0.70 Delta Electronics TWD 2,531,000 15,463,590 0.74 Epistar TWD 3,977,000 8,678,863 0.42 FIH Mobile HKD 24,017,000 12,948,756 0.62 GCL-Poly Energy HKD 50,945,000 15,244,829 0.73 Hollysys Automation Technologies USD 791,341 16,950,524 0.82 Kingsoft HKD 1,532,000 4,712,812 0.23 Lenovo HKD 43,310,000 49,159,094 2.36 MediaTek TWD 1,715,000 26,805,749 1.29 Sungy Mobile ADR USD 207,264 3,440,582 0.17 Sunny Optical Technology HKD 8,917,000 10,420,294 0.50 Tencent holdings HKD 1,771,900 110,478,780 5.31 302,305,904 14.54

Materials Angang Steel HKD 7,538,000 4,550,247 0.22 Anhui Conch Cement HKD 3,016,000 11,164,679 0.54 BBMG HKD 19,374,000 13,569,134 0.65 Lee & Man Paper Manufacturing HKD 20,917,000 11,304,372 0.54 Nine Dragons Paper HKD 19,703,000 12,910,084 0.62 Sinopec Shanghai Petrochemical HKD 14,948,000 3,624,716 0.17 57,123,232 2.74

Telecommunication China Mobile HKD 9,504,000 90,345,585 4.35 Services China Telecom HKD 42,260,000 21,639,789 1.04 China Unicom Hong Kong HKD 48,602,000 74,473,814 3.58 186,459,188 8.97

Utilities Huaneng Power International HKD 35,818,000 34,972,786 1.68 Huaneng Renewables HKD 57,418,000 17,848,352 0.86 Power Assets HKD 2,336,500 20,146,528 0.97 SIIC Environment SGD 48,352,000 6,424,876 0.31 79,392,542 3.82

Total equities 2,057,953,461 98.98

54 Baring International Umbrella Fund Baring Hong Kong China Fund

Portfolio statement (continued)

As at 30 April 2014

Financial assets at fair value through profit or loss Nominal Industry Warrants Currency holdings Fair value US$ % of NAV Financials Sun Hung Kai Properties HKD 47,750 32,150 - Total warrants 32,150 -

Total financial assets at fair value through profit or loss 2,097,009,675 100.86

Financial liabilities at fair value through profit or loss

Open forward foreign currency transactions Currency Currency Currency Maturity Unrealised sold bought rate Counterparty date loss US$ % of NAV US$ 8,109 ¥ 50,500 0.1606 Northern Trust 08/07/2014 (60) - Total unrealised loss on open forward foreign currency transactions (60) -

Total financial liabilities at fair value through profit or loss (60) -

Total investments at fair value through profit or loss 2,097,009,615 100.86 Cash 1,185,238 0.05 Other net liabilities (19,098,360) (0.91) Total net assets attributable to holders of redeemable participating units 2,079,096,493 100.00

% of Total Analysis of portfolio assets** Collective Investment Schemes 1.79 Transferable securities*** 94.57 Other liabilities 3.64 100.00

*Tungda Innovative Lighting has been suspended from the stock exchange and has been priced at zero as at 6 May 2008 following approval from the Board of Directors.

**Calculation based on the total assets of the Fund (excluding liabilities). This summary is a UCITS requirement.

***Transferable securities admitted to an official stock exchange listing or traded on a recognised market with the exception of Tungda Innovative Lighting.

55 Baring International Umbrella Fund Baring Hong Kong China Fund

Balance sheet

As at 30 April 2014

Baring Baring Hong Kong Hong Kong China Fund China Fund 30/04/2014 30/04/2013 Assets Notes US$ US$ Financial assets at fair value through profit or loss 1 2,097,009,675 2,635,356,177 Cash 1 1,185,238 - Receivable for securities sold 1 77,219,672 - Receivable for units sold 1 684 1,843,318 Dividends and interest receivable 1 748,944 115,115 Other assets 1 3,807 36,190 Total assets 2,176,168,020 2,637,350,800

Liabilities Financial liabilities at fair value through profit or loss 1 60 - Bank overdraft 1 - 3,368,523 Management fee payable 2 2,208,458 2,914,888 Administration fee payable 2 802,716 1,115,723 Trustee fee payable 2 29,491 35,093 Payable for securities purchased 1 95,632,428 - Payable for units redeemed 1 2,271,168 5,814,052 Other liabilities 2 165,414 492,275 Total liabilities (excluding net assets attributable to holders of redeemable participating units) 101,109,735 13,740,554

Net assets attributable to holders of redeemable participating units (at bid market prices) 2,075,058,285 2,623,610,246

Adjustments from bid market prices to last traded market prices 4,038,208 3,920,944

Net assets attributable to holders of redeemable participating units (at last traded market prices) 2,079,096,493 2,627,531,190

Units in issue (Note 4) Class A USD Inc 2,168,247 2,639,779 Class A EUR Inc 390,840 571,853 Class A GBP Inc 1,632 2,124 Class A HKD Inc 31,311 25,954 Class A RMB hedged Acc 10 - Class A USD Acc 971 832 Class C EUR Inc 776 1,319 Class C USD Inc 3,152 3,767 Class I GBP Acc 3 -

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

56 Baring International Umbrella Fund Baring Hong Kong China Fund

Statement of changes in net assets attributable to holders of redeemable participating units for the year ended 30 April 2014

Baring Baring Hong Kong Hong Kong China Fund China Fund 30/04/2014 30/04/2013 Notes US$ US$ Net assets attributable to holders of redeemable participating units at the beginning of the year 2,627,531,190 3,474,431,991 Decrease in assets for the year from operations attributable to holders of redeemable participating units (14,465,090) (78,465,764) Issue of redeemable participating units for the year 4 414,388,735 528,748,350 Redemption of redeemable participating units for the year 4 (942,257,898) (1,297,183,387) Income equalisation 3 (6,100,444) - Net assets attributable to holders of redeemable participating units at the end of the year 2,079,096,493 2,627,531,190

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

57 Baring International Umbrella Fund Baring Hong Kong China Fund

Profit and loss account

For the year ended 30 April 2014

Baring Baring Hong Kong Hong Kong China Fund China Fund Notes 30/04/2014 30/04/2013 Investment income US$ US$ Interest income 1 561 2,161 Dividend income 1 68,258,042 73,716,049 Net fair value loss on financials assets at fair value through profit or loss 1 (20,943,878) (97,671,160) Total investment income/(loss) 47,314,725 (23,952,950)

Expense Management fees 2 29,997,102 34,447,290 Administration fees 2 10,766,443 12,423,768 Trustee fees 2 377,144 410,488 General expenses 2 495,966 475,083 Total operating expenses 41,636,655 47,756,629

Net income/(expense) before finance costs and tax 5,678,070 (71,709,579)

Finance costs Distributions 3 (15,210,959) - Bank interest expense 1 (4,860) (9,192) Total finance costs (15,215,819) (9,192)

Loss for the financial year before tax (9,537,749) (71,718,771)

Tax Withholding tax on dividends and other investment income (5,044,605) (5,011,715) Total tax (5,044,605) (5,011,715)

Operating loss (14,582,354) (76,730,486)

Movement in adjustments from bid market prices to last traded market prices 117,264 (1,735,278)

Decrease in net assets for the period/year from operations attributable to holders of redeemable participating units (14,465,090) (78,465,764)

Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the profit and loss account.

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

58 Baring International Umbrella Fund Baring International Bond Fund

Baring International Bond Fund — Investment Manager’s Report

Investment objective and policy

The investment objective of the Baring International Bond Fund (“the Fund”) is to achieve an attractive level of income together with long-term growth in the value of assets by investing in a diversified portfolio of fixed interest securities. The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in an internationally diversified portfolio of both corporate and government fixed interest securities. The portfolio may also, from time to time, include securities with floating interest rates. Please refer to the Prospectus for the full investment Objective and Policy.

How the Fund is managed

The Manager of Baring International Umbrella Fund, Baring International Fund Managers (Ireland) Limited, has appointed Baring Asset Management Limited as the Investment Manager of the Fund.

Baring Asset Management Limited seek investment return by investing in bond markets where we believe yields are likely to fall and avoiding those that are thought to be expensive. The overall duration, or interest rate sensitivity, of the Fund will fluctuate as our expectations for economic developments change, relative to the market. We will also look to add value through foreign exchange management, identifying those markets where currencies are attractive, for example due to sound economic fundamentals or rising interest rates.

Performance Summary of Fund performance (excluding distribution payments where applicable)

Net Asset Value as at Net Asset Value as at Net Asset Value % 30/04/2014 30/04/2013 change Price per unit Price per unit

Baring International Bond Fund Class A USD Inc US$27.49 US$28.17 (2.41)

Baring International Bond Fund Class A EUR Inc €19.88 €21.55 (7.75)

Baring International Bond Fund Class A GBP Inc £16.35 £18.19 (10.12)

Baring International Bond Fund Class I GBP Inc £16.39 £18.19 (9.90)

Baring International Bond Fund Class I USD Acc* US$27.52 N/A N/A

*The Class I USD Acc unit class was launched 28 January 2014.

Performance record to 30 April 2014 (including distribution payments where applicable)

01/05/2013 - 01/05/2012 - 01/05/2011 - 01/05/2010 - 01/05/2009 - 30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 % % % % % Baring International Bond Fund Class A USD Inc (USD (0.34) 2.58 0.80 12.58 13.90 terms)

Citi World Govt Bond USD Index (USD Terms) 1.40 (1.07) 3.33 11.16 5.88

Baring International Bond Fund Class A EUR Inc (EUR (5.79) 3.73 12.93 1.16 13.58 terms)

Baring International Bond Fund Class A GBP Inc (GBP (8.20) 7.67 3.28 3.62 10.09 terms)

Baring International Bond Fund Class I GBP Inc (GBP terms)* (8.00) 3.23 N/A N/A N/A

Baring International Bond Fund Class I USD Acc (USD terms)* 2.57 N/A N/A N/A N/A

59 Baring International Umbrella Fund Baring International Bond Fund

Baring International Bond Fund — Investment Manager’s Report (continued)

Performance (continued)

Performance figures are shown net of fees and charges, on a NAV per unit basis, with gross revenue reinvested.

Source: Morningstar/Barings/Citi.

For data sourced from Morningstar: © Morningstar. All Rights Reserved.The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The Fund was launched on 7 July 1978.

*The Class I GBP Inc unit class was launched on 10 December 2012.

The Class I USD Acc unit class was launched 28 January 2014.

Risk profile

The majority of the Fund’s holdings will usually be in bonds issued by governments rather than individual companies. These bonds are not deemed as risky as corporate bonds, as they are backed by the full resources of the government issuing them. However, as this is a portfolio invested in the world-wide bond markets, currency exchange fluctuations can have an effect on the performance of the Fund’s investments. Past performance is not a guide to future performance, there is no guarantee that the investment objective will be achieved and you may get back less than you initially invested.

Strategy

We made a number of changes to our portfolio positioning over the year. The main move was the extension of both bond and currency positions in the Eurozone, reflecting our more constructive view on the region. We have maintained our positive view on peripheral European bond markets (Italy, Spain and Ireland) and think there is further potential for outperformance relative to the core European government bond markets (such as Germany) where yields are relatively low. We expect a continued improvement in financial conditions and expectations that the European Central Bank will need to act against deflationary risks which will further support peripheral European bond markets.

Over the year, we made a number of adjustments to our positions in the US dollar and Japanese yen, with a net increase in exposures to both. We envisage that interest rates will begin to rise in the US ahead of most other developed markets, which should be supportive of the Dollar. In Japan, monetary policy conditions have been the driver of a weaker Yen, and we utilised this weakness to add exposure.

We actively traded our emerging market positions as volatility was relatively high in this sector. We became somewhat less positive on emerging markets overall due to heightened risks related to the winding down of the US Federal Reserve’s quantitative easing programme. We reduced our positions in Poland and Mexico, although remain positive on both. We initially exited the South African bond market as a precautionary measure owing to the market’s sensitivity to macroeconomic events globally, as well as domestically. However, following a marked fall in the value of its currency and bond markets, we reopened our position. We also reduced exposure in Asian currencies, exiting positions in the Chinese renminbi, the Hong Kong dollar and Singapore dollar.

60 Baring International Umbrella Fund Baring International Bond Fund

Baring International Bond Fund — Investment Manager’s Report (continued)

Performance

The Fund underperformed the performance comparator over the period under review. The Fund’s exposure in emerging market currencies produced mixed results. The Polish zloty performed well due to improving economic conditions in the Eurozone and as a result, our exposure here was positive. Our Mexican peso exposure was the main detractor, as the currency weakened over the year in sympathy with most other emerging market currencies. Elsewhere, the lack of Sterling and Euro exposure hurt relative performance as both currencies appreciated against the US dollar. Sterling was the best performing currency over the year as economic data continued to surprise on the upside and reflected a solid pace of growth. On the positive side, having a lower Yen exposure than the Performance Comparator benefitted performance.

With regards to bond markets, we were positioned to benefit from weaker performance in core markets such as the US and the UK and these positions contributed positively. The UK bond market was one of the worst performing markets over the reporting period. The outperformance of the European periphery (Italy, Spain and Ireland) relative to core Europe (Germany) was also a source of positive performance. Our position in Mexico was the main detractor; the performance of this market was negatively impacted by the US Federal Reserve’s (“Fed”) announcement that it would begin tapering the pace of its asset purchases.

Review of the market

US monetary policy was a key focus for financial markets. The initial suggestion that the Fed was considering reducing the pace of its asset purchase program proved negative for bond markets. Emerging markets suffered the greatest losses with the markets most reliant on external funding (Indonesia, India, Turkey and South Africa) underperforming. The Fed began tapering its quantitative easing programme in January 2014, slowing the pace of asset purchases by $10 billion per month ($5bn of Treasuries and $5bn of Mortgage-Backed securities).

Elsewhere, central banks have kept monetary policy accommodative. The European Central Bank reduced its main policy rate by -0.25%, to a record low of 0.25%, reacting to low inflation and “downside risks” to the economic outlook. A low level of inflation has also enabled the Bank of England to maintain interest rates at the record low of 0.25%.

In local currency terms, emerging market bonds were the underperformers, with Mexico and South Africa the worst performing markets within the Performance Comparator. There was also weakness in some core government bond markets, with valuations in the UK and the US declining, in reaction to a more constructive economic outlook. Peripheral European bond markets were the notable outperformers with Spain, Italy and Ireland achieving close to double-digit returns as the intensity of the Eurozone crisis abated.

In currencies, there was weakness across emerging markets with the South African rand falling to levels not seen since the height of the financial crisis in 2008. The strength of the Australian dollar in 2014 to date (April) has been insufficient to offset the weakness at the beginning of the year under review when the Reserve Bank of Australia had been cutting interest rates to support an adjustment away from the Mining sector growth to a growth across a wider range of sectors. Sterling was the best performing currency as data released consistently beat expectations.

Market outlook

In terms of scenarios, which are central to our portfolio construction process, we are currently forecasting the most likely outcomes under three scenario headings (Scenario1: “Synchronised Global Recovery”, Scenario 2: “Growth Moderation / Emerging Market Stabilisation”, Scenario 3: “Global Downturn”). The third scenario is the most pessimistic in terms of growth and is heavily influenced by a renewed and longer-lasting move towards accommodative monetary policy. As a result, global bond yields are expected to decline. The other two scenarios are more optimistic with the macroeconomic outcomes presenting a more constructive environment for riskier fixed income asset classes (credit, emerging markets).

61 Baring International Umbrella Fund Baring International Bond Fund

Baring International Bond Fund — Investment Manager’s Report (continued)

Market outlook (continued)

We are becoming more optimistic regarding the global outlook. In the US, whilst first quarter Gross Domestic Product (“GDP”) data has been much weaker than expected, the forward looking data has been more positive, suggesting that the weakness is partially due to weather related factors. We expect that the Federal Open Market Committee will continue its pace of tapering, but given a lack of inflationary pressures, will be in no hurry to raise interest rates. Elsewhere, central banks have also been afforded time, in terms of monetary policy, with the absence of inflationary pressures removing the need to raise interest rates as economic recovery takes hold. We expect the tensions between Ukraine and Russia to continue to influence investors’ appetite for risk with the China growth story also remaining a major theme.

Baring Asset Management Limited.

May 2014

62 Baring International Umbrella Fund Baring International Bond Fund

Portfolio statement

As at 30 April 2014

Financial assets at fair value through profit or loss

Nominal Fair value Currency Collective Investment Schemes Currency holdings US$ % of NAV Euro Northern Trust Global Funds - Euro Fund EUR 298,000 412,119 0.39 Pound sterling Northern Trust Global Funds - Sterling Fund GBP 13,000 21,861 0.02 US dollar Northern Trust Global Funds - US Dollar Fund USD 175,000 175,000 0.17 Total Collective Investment Schemes 608,980 0.58

Fixed interest Australian New South Wales Treasury 5.50% 01/03/2017 AUD 2,500,000 2,468,845 2.34 dollar Queensland Treasury 6.00% 14/09/2017 AUD 4,200,000 4,243,657 4.04 6,712,502 6.38

Euro Germany (Federal Republic) 0.50% 23/2/2018 EUR 3,000,000 4,168,665 3.96 Germany (Federal Republic) 1.50% 15/05/2023 EUR 1,000,000 1,395,645 1.33 Germany (Federal Republic) 2.00% 15/08/2023 EUR 2,000,000 2,902,309 2.76 Germany (Federal Republic) 3.25% 04/07/2042 EUR 700,000 1,140,267 1.08 France (Govt of) 2.25% 25/10/2022 EUR 2,000,000 2,892,191 2.75 Ireland (Republic of) 4.60% 18/04/2016 EUR 1,800,000 2,686,926 2.56 Italy (Republic of) 3.50% 01/06/2018 EUR 3,200,000 4,761,685 4.53 Italy (Republic of) 3.75% 01/08/2016 EUR 2,500,000 3,673,976 3.49 Italy (Republic of) 3.75% 01/08/2021 EUR 1,000,000 1,497,801 1.42 Italy (Republic of) 4.75% 01/08/2023 EUR 1,500,000 2,371,744 2.26 Spain (Kingdom of) 3.75% 31/10/2018 EUR 2,500,000 3,782,116 3.60 Spain (Kingdom of) 4.25% 31/10/2016 EUR 1,300,000 1,944,413 1.85 Spain (Kingdom of) 5.50% 30/07/2017 EUR 2,000,000 3,144,270 2.99 36,362,008 34.58

Japanese Depfa ACS Bank 1.65% 20/12/2016 JPY 100,000,000 974,048 0.93 yen Japan (Govt of) 1.70% 20/12/2031 JPY 935,000,000 9,701,941 9.23 Japan (Govt of) 1.90% 20/06/2025 JPY 340,000,000 3,735,409 3.55 14,411,398 13.71

Mexican Mexican Bonos 7.25% 15/12/2016 MXN 45,000,000 3,684,947 3.50 pesos Mexican Bonos 6.50% 10/06/2021 MXN 7,500,000 596,023 0.57 Mexican Bonos 10.00% 05/12/2024 MXN 30,000,000 2,946,410 2.80 Mexican Bonos 5.00% 15/06/2017 MXN 35,000,000 2,719,293 2.59 9,946,673 9.46 Norwegian krone Norway (Kingdom of) 2.00% 24/05/2023 NOK 17,500,000 2,758,825 2.62 2,758,825 2.62

Polish zloty Poland (Republic of) 0.00% 25/01/2016 PLN 10,000,000 3,134,373 2.98 Poland (Republic of) 2.50% 25/07/2018 PLN 15,000,000 4,754,646 4.52 7,889,019 7.50

63 Baring International Umbrella Fund Baring International Bond Fund

Portfolio statement (continued)

As at 30 April 2014

Financial assets at fair value through profit or loss

Nominal Fair value Currency Currency holdings US$ % of NAV Pound European Investment Bank 4.12% 07/12/2017 GBP 500,000 910,113 0.87 sterling UK (Govt of) 3.25% 22/01/2044 GBP 500,000 805,926 0.77 UK (Govt of) 1.00% 07/09/2017 GBP 1,000,000 1,660,210 1.57 UK (Govt of) 2.25% 07/09/2023 GBP 1,000,000 1,618,540 1.54 UK (Govt of) 4.75% 07/12/2030 GBP 500,000 1,006,280 0.96 6,001,069 5.71

South African South Africa (Republic of) 7.00% 28/02/2031 ZAR 20,000,000 1,576,059 1.50 rand South Africa (Republic of) 6.75% 31/03/2021 ZAR 18,000,000 1,580,368 1.50 3,156,427 3.00

Swedish Sweden (Kingdom of) 3.00% 12/07/2016 SEK 15,000,000 2,402,089 2.28 kronor 2,402,089 2.28

US dollar Bank Nederlandse Gemeenten 4.38% 16/02/2021 USD 1,000,000 1,102,820 1.05 JPMorgan Chase 6.12% 27/06/2017 USD 700,000 792,620 0.75 Kreditanstalt Für Wiederaufbau 2.12% 17/01/2023 USD 1,900,000 1,793,790 1.71 US Treasury Inflation Indexed Bonds 0.75% 15/02/2042 USD 1,750,000 1,622,586 1.54 USTreasury Inflation Indexed Bonds 3.87% 15/04/2029 USD 600,000 1,221,991 1.16 US Treasury Bond 1.38% 31/07/2018 USD 4,000,000 3,980,936 3.79 US Treasury Bond 1.62% 15/11/2022 USD 2,000,000 1,856,250 1.77 US Treasury Bond 2.75% 15/08/2042 USD 1,000,000 867,188 0.82 13,238,181 12.59

Total fixed interest 102,878,191 97.83

Unrealised Futures contracts Fair Value Contracts gain US$ % of NAV Future US 10 Year Note June 2014 (4,340,000) (35) 6,016 0.01 6,016 0.01

Open forward foreign currency transactions Currency Currency Currency Maturity Unrealised sold bought rate Counterparty date gain US$ % of NAV SEK KR 15,700,000 US$ 2,447,205 0.1559 State Street 04/06/2014 55,933 0.05 ¥ 400,000,000 US$ 3,909,591 0.0098 UBS AG 04/06/2014 9,191 0.01 US$ 2,065,236 € 1,500,000 1.3768 UBS AG 04/06/2014 9,023 0.01 US$ 1,814,569 C$ 2,000,000 0.9073 State Street 04/06/2014 8,023 0.01

64 Baring International Umbrella Fund Baring International Bond Fund

Portfolio statement (continued)

As at 30 April 2014

Financial assets at fair value through profit or loss

Open forward foreign currency transactions (continued) Currency Currency Currency Maturity Unrealised sold bought rate Counterparty date gain US$ % of NAV US$ 10,815,804 ¥ 1,110,000,000 0.0097 Barclays Bank 04/06/2014 7,805 0.01 US$ 1,798,100 NOK KR 10,800,000 0.1665 Barclays Bank 04/06/2014 7,535 0.01 US$ 1,176,010 MEX$ 15,500,000 0.0759 Deutsche Bank 04/06/2014 4,039 - US$ 356,153 S$ 450,000 0.7915 State Street 04/06/2014 1,900 - US$ 935,756 zł 2,850,000 0.3283 Deutsche Bank 04/06/2014 486 - Total unrealised gain on open forward foreign currency transactions 103,935 0.10

Total financial assets at fair value through profit or loss 103,597,122 98.52

Financial liabilities at fair value through profit or loss Unrealised Futures contracts Fair value Contracts loss US$ % of NAV Future Long Gilt Life June 2014 (3,699,184) (20) (28,634) (0.03) (28,634) (0.03)

Open forward foreign currency transactions Currency Currency Currency Maturity Unrealised sold bought rate Counterparty date loss US$ % of NAV A$ 3,150,000 US$ 2,836,292 0.9004 Canadian Imperial Bank of Commerce 04/06/2014 (75,380) (0.06) € 6,550,000 US$ 9,006,512 1.3750 Canadian Imperial Bank of Commerce 04/06/2014 (51,084) (0.05) MEX$ 82,000,000 US$ 6,197,750 0.0756 Deutsche Bank 04/06/2014 (45,092) (0.04) £3,100,000 US$ 5,174,427 1.6692 Goldman Sachs 04/06/2014 (37,178) (0.04) zł 17,100,000 US$ 5,599,397 0.3275 Barclays Bank 04/06/2014 (18,054) (0.02) £350,000 US$ 577,046 1.6487 UBS AG 04/06/2014 (11,361) (0.01) £200,000 US$ 329,741 1.6487 UBS AG 04/06/2014 (6,492) (0.01) € 1,000,000 US$ 1,376,810 1.3768 UBS AG 04/06/2014 (6,029) (0.01) A$ 2,900,000 US$ 2,678,498 0.9236 UBS AG 04/06/2014 (2,088) - US$ 1,256,796 MEX$ 16,500,000 0.0762 Deutsche Bank 04/06/2014 (615) - Total unrealised loss on open forward foreign currency transactions (253,373) (0.24)

Total financial liabilities at fair value through profit or loss (282,007) (0.27)

Total investments at fair value through profit or loss 103,315,115 98.25 Cash 572,694 0.55 Other net assets 1,263,322 1.20 Total net assets attributable to holders of redeemable participating units 105,151,131 100.00

% of Total Analysis of portfolio assets* Collective Investment Schemes 0.58 Transferable securities** 97.50 OTC financial derivative instruments (0.16) Other assets 2.08 100.00

*Calculation based on the total assets of the Fund (excluding liabilities). This summary is a UCITS requirement. **Transferable securities admitted to an official stock exchange listing or traded on a recognised market.

65 Baring International Umbrella Fund Baring International Bond Fund

Balance sheet

As at 30 April 2014

Baring Baring International International Bond Fund Bond Fund 30/04/2014 30/04/2013 Assets Notes US$ US$ Financial assets at fair value through profit or loss 1 103,597,122 127,656,968 Cash 1 164,769 701,990 Margin cash 1 407,925 - Receivable for units sold 1 129,188 743,791 Dividends and interest receivable 1 1,207,525 1,856,840 Other assets 1 6,086 3,388 Total assets 105,512,615 130,962,977

Liabilities Financial liabilities at fair value through profit or loss 1 282,007 562,157 Management fee payable 2 65,896 89,170 Administration fee payable 2 39,103 107,008 Trustee fee payable 2 2,173 2,937 Payable for units redeemed 1 27,373 254,934 Other liabilities 2 26,512 47,059 Total liabilities (excluding net assets attributable to holders of redeemable units) 443,064 1,063,265

Net assets attributable to holders of redeemable participating units (at bid market prices) 105,069,551 129,899,712

Adjustments from bid market prices to last traded market prices 81,580 1,404,019

Net assets attributable to holders of redeemable participating units (at last traded market prices) 105,151,131 131,303,731

Units in issue (Note 4) Class A USD Inc 2,955,449 3,568,454 Class A EUR Inc 440,136 583,361 Class A GBP Inc 314,039 455,551 Class I GBP Inc 99,559 52,591 Class I USD Acc 14,647 -

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

66 Baring International Umbrella Fund Baring International Bond Fund

Statement of changes in net assets attributable to holders of redeemable participating units for the year ended 30 April 2014

Baring Baring International International Bond Fund Bond Fund 30/04/2014 30/04/2013 Notes US$ US$

Net assets attributable to holders of redeemable participating units at the beginning of the year 131,303,731 150,357,997 (Decrease)/increase in net assets for the year from operations attributable to holders of redeemable participating units (3,637,744) 559,262 Issue of redeemable participating units for the year 4 29,939,684 72,965,537 Redemption of redeemable participating units for the year 4 (52,343,390) (92,579,065) Income equalisation 3 (111,150) - Net assets attributable to holders of redeemable participating units at the end of the year 105,151,131 131,303,731

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

67 Baring International Umbrella Fund Baring International Bond Fund

Profit and loss account

For the year ended 30 April 2014

Baring Baring International International Bond Fund Bond Fund 30/04/2014 30/04/2013 Investment income Notes US$ US$ Interest income 1 3,545,512 5,232,916 Dividend income 1 - 1,405 Net fair value loss on financial assets and financial liabilities at fair value through profit or loss 1 (1,758,225) (386,151) Total investment gain on income 1,787,287 4,848,170

Expenses Management fees 2 851,992 1,109,314 Administration fees 2 515,260 666,063 Trustee fees 2 28,637 37,003 General expenses 2 115,784 131,738 Total operating expenses 1,511,673 1,944,118

Net income before finance costs and tax 275,614 2,904,052

Finance costs Distributions 3 (2,590,760) (3,588,839) Bank interest expense 1 (159) (323) Total finance costs (2,590,919) (3,589,162)

Operating loss (2,315,305) (685,110)

Movement in adjustments from bid market prices to last traded market prices (1,322,439) 1,244,372

(Decrease)/increase in net assets for the year from operations attributable to holders of redeemable participating units (3,637,744) 559,262

Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the profit and loss account.

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

68 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements

1. Principal accounting policies

The principal accounting policies applied in the preparation of these financial statements under Generally Accepted Accounting Practice in Ireland (“Irish GAAP”) are set out below.

Basis of preparation

The financial statements of Baring International Umbrella Fund (“the Trust”) have been prepared in accordance with accounting standards generally accepted in Ireland and Irish statute comprising the European Communities Undertakings for Collective Investment in Transferable Securities Regulations, 2011 (as amended) (“the UCITS Regulations”) and the Trust Deed. Accounting standards generally accepted in Ireland in preparing financial statements giving a true and fair view are those published by the Institute of Chartered Accountants in Ireland and issued by the Financial Reporting Council (“FRC”).

The format and certain wordings of the financial statements have been adapted from those contained in Financial Reporting Standard (“FRS”) 3 “Reporting Financial Performance” so that, in the opinion of the Directors of the Manager, they more appropriately reflect the nature of the Trust’s business as an investment fund.

The Trust has availed of the exemption available to open-ended investment Funds under FRS 1 not to prepare a cash flow statement.

Historical cost convention

The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities, including derivative financial instruments held at fair value through profit or loss.

Foreign exchange translation

(a) Functional and presentation currency

Items included in the separate Funds of the Trust financial statements are measured using the currency of the primary economic environment in which they operate (“the functional currency”). The functional and presentation currency of the Funds is US dollar, as the majority of unit classes in the Funds are subscribed in US dollar.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

Proceeds from subscriptions and amounts paid on redemptions of redeemable participating units are translated at average exchange rates, which approximate the rates prevailing at the dates of the transactions.

Financial assets and liabilities at fair value through the profit or loss

(a) Classification

Funds, referring collectively to each Fund within the Trust (“the Funds”) classify their investments in securities, as financial assets or financial liabilities at fair value through profit or loss. These financial assets and financial liabilities are classified as held for trading or designated by the Board of Directors of the Manager at fair value through profit or loss.

Financial assets or financial liabilities held for trading are those acquired or incurred principally for the purposes of selling or repurchasing in the short-term. Financial assets and financial liabilities designated at fair value through profit or loss at inception are those that are managed and their performance evaluated on a fair value basis in accordance with the Funds’ documented investment strategy. The Funds’ policy is for the Baring Asset Management Limited (“the Investment Manager”) and the Board of Directors of the Manager to evaluate the information about these financial assets on a fair value basis together with other related financial information. These financial assets and financial liabilities are expected to be realised within 12 months of the Balance Sheet date.

(b) Recognition/de-recognition

Purchases and sales of investments are recognised on the trade date - the date on which the Funds commits to purchase or sell the investment. The financial statements include all the trades received up until the valuation point for each Fund as disclosed on page 4. Any trades received subsequent to these points are not reflected in the financial statements. The Manager does not believe the omission of these trades are material to the presentation of the financial position of the Funds at the close of business at 30 April 2014.

69 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

1. Principal accounting policies (continued)

Financial assets and liabilities at fair value through the profit or loss (continued)

(b) Recognition/de-recognition (continued)

Investments are derecognised when the rights to receive cash flows from the investments have expired or the Funds have transferred substantially all risks and rewards of ownership. Realised gains and losses on disposals of financial assets and financial liabilities classified as 'at fair value through profit or loss' are calculated using the First In First Out (“FIFO”) method. They represent the difference between an instrument's initial carrying amount and disposal amount, or cash payments or receipts made on derivative contracts (excluding payments or receipts on collateral margin accounts for such instruments).

Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value. Transaction costs are expensed in the profit and loss account. Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measured at fair value at the relevant valuation point for each Fund as disclosed on page 4. Gains and losses arising from changes in the fair value of the financial assets or financial liabilities through profit or loss category are presented in the profit and loss account in the year in which they arise.

(d) Fair value estimation

The fair value of financial instruments traded in active markets (such as publicly traded securities) is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Funds is the current bid price; the appropriate quoted market price for financial liabilities is the current asking price. When the Funds hold derivatives with offsetting market risks, they use mid- market prices as a basis for establishing fair values for the offsetting risk positions and apply this bid or asking price to the net open position, as appropriate.

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) are determined by using valuation techniques. The Funds use a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date. Unquoted investments are valued in accordance with the most recent valuation made by the Manager. In the absence of a price being available for a security, the Directors of the Manager can determine such a valuation where appropriate. Valuation techniques used include the use of comparable recent arm’s length transactions, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants. The following Funds, Baring Hong Kong China Fund and Baring Europa Fund have investments valued at nil, being Tungda Innovative Lighting, Immoeast and Anglo Irish Bank. Please refer to the portfolio statements for further information.

(e) Forward foreign currency transactions

Forward foreign currency transactions (“FFCTs”) are measured at fair value based on the closing prices of the FFCTs contract rates on the relevant foreign exchange market on a daily basis. Realised and unrealised gains and/or losses are reported in the Profit and Loss Account.

(f) Futures contracts

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

70 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

1. Principal accounting policies (continued)

Income from investments and interest expense

Interest income and expense are recognised in the profit and loss account for all debt instruments and cash using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and of allocating the interest income or interest expense over the relevant year.

The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts throughout the expected life of the financial instrument, or a shorter year where appropriate, to the net carrying amount of the financial asset or financial liability.

Once a financial asset or a group of similar financial assets has been written down as a result of an impairment loss, interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss.

Dividends are credited to the profit and loss account on the dates on which the relevant securities are listed as "ex-dividend". Dividend income is shown gross of any irrecoverable withholding taxes, which is disclosed separately in the profit and loss account, and net of any tax credits.

Operating expenses

The Trust is responsible for all normal operating expenses including audit fees, stamp and other duties and charges incurred on the acquisition and realisation of investments. These are accounted for on an accruals basis. Baring International Fund Managers (Ireland) Limited, (“the Manager”) meets all other expenses incurred by the Trust in connection with its services.

Transaction costs

Transaction costs are costs incurred to acquire financial assets or liabilities at fair value through profit or loss. They include fees and commissions paid to agents, advisers, brokers or dealers. Transaction costs, when incurred, are included as part of the cost of such purchases. Transaction costs are included in the net fair value gain/(loss) on financial assets at fair value through profit or loss in the profit and loss account for each individual Fund. See Note 2, ’Fees and related party disclosures’, for further information on transaction costs.

Distributions

Note 3 discloses all distributions declared and paid during the year. Income distributions for the Baring International Bond Fund—Class A Inc units are normally paid twice annually not later than 31 July and 31 January each year. Distributions in respect of Baring Australia Fund Class A Inc units, Baring Europa Fund Class A Inc units, Baring Hong Kong China Fund Class A Inc units and the Baring ASEAN Frontiers Fund Class A Inc units are normally paid annually not later than 31 July of each year. Distributions may be declared from net income and net fair value gains on financial assets. Unitholders should note that distributions below US$100/£50/€100 are automatically reinvested. The distribution on these units is recognised in the profit and loss account as finance costs on an ex-date basis.

Cash, margin cash and bank overdraft

Cash, margin cash and bank overdraft will be valued at its face value together with interest accrued, where applicable.

Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables are recognised initially at fair value plus transaction costs that are directly attributable to their acquisition origination. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment.

Payables

Payables are recognised initially at fair value and subsequently stated at amortised cost using the effective interest method. The difference between the proceeds and the amounts payable are recognised over the year of the payable using the effective interest method.

71 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

1. Principal accounting policies (continued)

Redeemable participating units

Redeemable participating units are redeemable at the unitholder’s option and are classified as financial liabilities.

The participating unit can be put back into the Trust on any business day of the Fund for cash equal to a proportionate unit of the Fund’s Net Asset Value. The participating unit is carried at the redemption amount that is payable at the balance sheet date if the unitholder exercised their right to put the unit back into the Fund.

In accordance with the provisions of the Trust Deed, listed investments and investments with prices quoted in over-the-counter markets or by market makers are stated at the last traded price on the valuation day for the purpose of determining the Net Asset Value per unit for subscriptions and redemptions and for various fee calculations. However, as stated above, the accounting policy of the Trust, for the purpose of compliance with FRS 26 and for reporting purposes is to value its investments at the relevant bid market prices on the balance sheet date. As at 30 April 2014, the difference between the valuation stated in the financial statements for investments and the valuation methodology indicated in the Trust Deed results in a decrease in the value of investments. This difference is disclosed on the face of each Fund’s balance sheet.

Net assets attributable to holders of redeemable participating units represent a liability in the balance sheet, carried at the redemption amount that would be payable at the balance sheet date if the unitholder exercised the right to redeem the unit to the Fund. Consequently, the differences described above adjust the carrying amount of the net assets attributable to redeemable unitholders and are recognised in the profit & loss account. The cumulative differences are included as “adjustments from bid market prices to last traded market prices” on the balance sheet.

Net income equalisation

Net income equalisation is accrued net income included in the price of units purchased and redeemed during the accounting year. The subscription price of units is deemed to include an equalisation payment calculated by reference to the net accrued income of the relevant Fund, and the first distribution in respect of any unit will include a payment of income usually equal to the amount of such equalisation payment. The redemption price of each unit will also include an equalisation payment in respect of the net accrued income of the relevant Fund up to the date of redemption. Income equalisation is detailed on the statement of changes in net assets of each Fund where applicable.

2. Fees and related party disclosures

Management fees

The Manager currently charges a management fee in respect of each Fund at the following percentage rate per annum of the Net Asset Value of the Fund:

Baring ASEAN Frontiers Fund Class A USD Inc 1.25% Baring Europa Fund Class C EUR Inc 1.25% Baring ASEAN Frontiers Fund Class A EUR Inc 1.25% Baring Europa Fund Class C USD Inc 1.25% Baring ASEAN Frontiers Fund Class A GBP Inc 1.25% Baring Europa Fund Class A RMB Hedged Acc 1.25% Baring ASEAN Frontiers Fund Class A RMB Hedged Acc 1.25% Baring Hong Kong China Fund Class A USD Inc 1.25% Baring ASEAN Frontiers Fund Class A USD Acc 1.25% Baring Hong Kong China Fund Class A EUR Inc 1.25% Baring ASEAN Frontiers Fund Class I EUR Acc 0.75% Baring Hong Kong China Fund Class A GBP Inc 1.25% Baring ASEAN Frontiers Fund Class I GBP Acc 0.75% Baring Hong Kong China Fund Class A HKD Inc 1.25% Baring ASEAN Frontiers Fund Class I USD Acc 0.75% Baring Hong Kong China Fund Class A USD Acc 1.25% Baring Asia Growth Fund Class A USD Inc 1.25% Baring Hong Kong China Fund Class C EUR Inc 1.25% Baring Asia Growth Fund Class A EUR Inc 1.25% Baring Hong Kong China Fund Class C USD Inc 1.25% Baring Asia Growth Fund Class A GBP Inc 1.25% Baring Hong Kong China Fund Class I GBP Acc 0.75% Baring Australia Fund Class A USD Inc 1.25% Baring Hong Kong China Fund Class A RMB Hedged Acc 1.25% Baring Australia Fund Class A AUD Inc 1.25% Baring International Bond Fund Class A USD Inc 0.75% Baring Australia Fund Class A EUR Inc 1.25% Baring International Bond Fund Class A EUR Inc 0.75% Baring Australia Fund Class A GBP Inc 1.25% Baring International Bond Fund Class A GBP Inc 0.75% Baring Australia Fund Class I GBP Acc 0.75% Baring International Bond Fund Class I GBP Inc 0.50% Baring Europa Fund Class A USD Inc 1.25% Baring International Bond Fund Class I USD Acc 0.50% Baring Europa Fund Class A EUR Inc 1.25%

72 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

2. Fees and related party disclosures (continued)

Management fees (continued)

The Trust is managed by Baring International Fund Managers (Ireland) Limited. John Burns, Nicola Hayes and Michel Schulz are connected to the Manager through employment with the Manager and its associated companies. During the year, Ines Haag and Ian Pascal were connected to the Manager through employment with the Manager and its subsidiaries. The Manager will discharge the fees and expenses of the Investment Manager out of its own fee. The Investment Manager is an investment management company incorporated in London on 6 April 1994. The Investment Manager is part of the Baring Asset Management group and is a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company (“MassMutual”). The outstanding amounts payable as at the end of the year for management fees are disclosed on each Fund’s balance sheet. Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions.

The management charge is payable monthly in arrears and is calculated by reference to the Net Asset Value of each Fund as at each day as at which the value of the net assets of the relevant Fund is calculated. The foregoing charges may be increased up to the relevant amount specified in the Prospectus on giving no less than one months’ notice to unitholders. Where the Net Asset Value of any Fund includes interests in any investment fund managed by a subsidiary of the parent company (“a Barings Fund”) the fee payable to the Manager relating to the holding will be reduced by the percentage rate (if any) charged to the Barings Fund for comparable management services. Baring ASEAN Frontiers Fund received a management fee rebate in relation to its investment in the Baring India Fund. Baring Asia Growth Fund received a management fee rebate in relation to its investment in the Baring China A-Share Fund Plc and Baring Hong Kong China Fund received management fee rebates in relation to its investments in the Baring China A-Share Fund and Baring China Bond Fund. These management fee rates have not changed from the previous year.

Administration fees

The Manager shall be entitled to receive an administration fee in respect of each Fund at the rate of 0.45% per annum of the Net Asset Value of each Fund calculated by reference to the daily calculation of asset values out of which the Manager will pay the Administrator. The fee will be subject to a minimum of £30,000 per annum for all Funds except the Baring Australia Fund and Baring Europa Fund for which the minimum will be £20,000 per annum for each Fund. Such fees are paid monthly in arrears and are also payable out of the assets of the Trust. The rates have not changed during the year.

Trustee fees

Northern Trust Fiduciary Services (Ireland) Limited (“the Trustee”) shall be entitled to the following payable monthly in arrears:

 0.025% of the Net Asset Value of the Trust on the first £500 million  0.015% of the Net Assset Value of the Trust on the next £500 million; and  0.008% of the Net Asset Value of the Trust thereafter.

In addition, the Trustee will receive a charge of £150 per transaction in respect of single line assets and on annual active account a charge of £3,000 per fund. These fees are payable monthly in arrears. The Trustee is entitled to be reimbursed for all fees and charges of trustees and sub-trustees appointed by it and all other expenses incurred by it.

Legal fees

Mark Thorne is a partner of the Legal Advisor and a Director of the Manager. The fees paid to Dillon Eustace during the year amounted to US$11,418 (30 April 2013 US$18,187).

Other expenses

The Trustee pays out of the assets of the Trust the above fees and expenses, stamp duties, taxes, brokerage or other expenses of acquiring and disposing of investments, the fees and expenses of the auditors, listing fees and legal expenses of the Manager. The costs of printing and distributing Reports, accounts and any Prospectuses, as well as publishing prices and any costs incurred as a result of a change in law or the introduction of any new law (including any costs incurred as a result of compliance with any code relating to the Trusts, whether or not having the force of law), are also paid out of the assets of the Trust.

73 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

2. Fees and related party disclosures (continued)

Other expenses (continued)

Expenses are charged to each Fund in respect of which they are incurred or, where an expense is not considered by the Trustee to be attributable to any one Fund, the expense will normally be allocated by the Trustee to all Funds pro rata to the value of the net assets of the relevant Funds.

Collective Investment Schemes

Some of the Funds invest in other investment Funds managed by the Investment Manager. These holdings are detailed in the portfolio statement.

Trailer fees and reimbursements

Trailer fees (commissions for the marketing of the Funds) are paid to distribution, commission and sales agents out of the management fees. Reimbursements to institutional investors who, from a commercial perspective, are holding the Funds’ units for third parties, are also paid out of the management fees.

Transaction costs

The transaction costs incurred by the Funds for the years ended 30 April 2014 were as follows:

30/04/2014 30/04/2013 US$ US$ Baring ASEAN Frontiers Fund 3,466,033 3,126,461 Baring Asia Growth Fund 1,033,210 1,062,259 Baring Australia Fund 206,149 452,612 Baring Europa Fund 268,875 82,369 Baring Hong Kong China Fund 13,656,750 13,033,043 Baring International Bond Fund - -

Significant unitholdings

The following table details significant concentrations in unitholdings of each Fund, or instances where the units are beneficially held by other investment funds managed by the Investment Manager or one of its affiliates. As at 30 April 2014 and 30 April 2013, the following had significant unitholdings in the Trust:

Number of unitholders Total % of units held by Total % of units held by investment with beneficial interest unitholders with beneficial funds managed by Baring International greater than 20% of the interest greater than 20% of Fund Managers (Ireland) Limited or Fund Name units in issue units in issue affiliates Baring ASEAN Frontiers Fund Nil (30/04/2013: Nil) Nil (30/04/2013: Nil) 0.18% (30/04/2013: 1.48%) Baring Asia Growth Fund Nil (30/04/2013: Nil) Nil (30/04/2013: Nil) Nil (30/04/2013: 0.28%) Baring Australia Fund Nil (30/04/2013: Nil) Nil (30/04/2013: Nil) 0.06% (30/04/2013: 0.38%) Baring Europa Fund Nil (30/04/2013: Nil) Nil (30/04/2013: Nil) 0.09% (30/04/2013: Nil) Baring Hong Kong China Fund Nil (30/04/2013: Nil) Nil (30/04/2013: Nil) 1.42% (30/04/2013: 0.04%) Baring International Bond Fund Nil (30/04/2013: Nil) Nil (30/04/2013: Nil) 0.37% (30/04/2013: 0.31%)

74 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

3. Distributions

In the year ended 30 April 2014, the following Funds declared and paid distributions as follows:

Income available for Distributed amount Income Distribution frequency distribution* paid** equalisation***

Baring ASEAN Frontiers Fund Class A Annual US$ US$ US$ 4,035,630 4,013,309 779,699

Baring Australia Fund Class A Annual US$ US$ US$ 3,428,237 3,417,122 292,832

Baring Europa Fund Class A Annual US$ US$ US$ 370,239 368,570 (448,539)

Baring Hong Kong China Class A Annual US$ US$ US$ 15,332,376 15,210,959 6,100,444

Baring International Bond Fund Class A Semi Annual US$ US$ US$ 2,543,277 2,543,277 113,444

Baring International Bond Fund Class I Semi Annual £ £ £ 30,646 30,646 1,573

US$ US$ US$ Total Baring International Bond Fund 2,590,760 2,590,760 111,150

*Difference between the income available for distribution (ex-date) and the distributed amount (pay date) is due to exchange rate movements.

**Includes distributions with an ex-date of 1 May 2013 which were paid during the current financial year. These distributions with an ex- date of 1 May 2013 reflect the undistributed income on the Fund as at 30 April 2013.

***Income equalisation relates to the dealing activity of distributing classes for the period from 1 May 2013 to 30 April 2014. The income equalisation of the distributing classes is disclosed separately in the Statement of changes in net assets attributable to holders of redeemable participating units for the year ended 30 April 2014.

75 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

3. Distributions (continued)

Comparative 30 April 2013

In the year ended 30 April 2013, the following Funds declared and paid distributions as follows:

Income available for Distributed amount Income Distribution frequency distribution* paid** equalisation***

Baring ASEAN Frontiers Fund Class A Annual US$ US$ US$ 2,593,995 2,593,979 (943,124)

Baring Australia Fund Class A Annual US$ US$ US$ 4,114,264 4,114,260 664,309

Baring Europa Fund Class A Annual US$ US$ US$ 772,493 772,466 29,537

Baring Europa Fund Class C USD Annual US$ US$ US$ 250 250 (49)

Baring Europa Fund Class C EUR Annual € € € 228 228 (34)

US$ US$ US$ Total Baring Europa Fund* 772,998 772,971 29,444

Baring International Bond Fund Class A Semi Annual US$ US$ US$

3,403,886 3,403,804 185,036

*Difference between the income available for distribution (ex-date) and the distributed amount (pay date) is due to exchange rate movements.

**Includes distributions with an ex-date of 1 May 2012 which were paid during the financial year. These distributions with an ex-date of 1 May 2012 reflect the undistributed income on the Fund as at 30 April 2012.

***Income equalisation relates to the dealing activity of distributing classes for the period from 1 May 2012 to 30 April 2013. The income equalisation of the distributing classes is disclosed in the Profit and loss account for the year ended 30 April 2013.

76 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

4. Units issued and redeemed

Baring ASEAN Frontiers Fund Class A Class A Class A Class A RMB Class A USD Inc EUR Inc GBP Inc Hedged Acc USD Acc By units: Units Units Units Units Units Units in issue as at 01/05/2013 2,352,541 817,288 198,005 81 26,857 Units issued during the year 2,140,614 548,709 131,277 1,159 26,722 Units redeemed during the year (2,718,996) (581,637) (111,130) - (42,093) Units in issue as at 30/04/2014 1,774,159 784,360 218,152 1,240 11,486

By value: US$ € £ ¥ US$ Net asset value of units issued during the year 417,112,850 77,657,647 15,634,569 1,316,580 5,784,275 Net asset value of units redeemed during the year (498,426,161) (81,149,489) (12,551,430) - (7,915,835) Net Asset Value of units (redeemed)/issued during the year (81,313,311) (3,491,842) 3,083,139 1,316,580 (2,131,560)

Class I Class I Class I EUR Acc GBP Acc USD Acc By units: Units Units Units Units in issue as at 01/05/2013 130,822 20,789 - Units issued during the year 49,252 92,308 156,363 Units redeemed during the year (16,781) (16,537) (71,326) Units in issue as at 30/04/2014 163,293 96,560 85,037

By value: € £ US$ Net asset value of units issued during the year 7,578,722 10,741,974 29,477,885 Net asset value of units redeemed during the year (2,498,109) (1,817,616) (12,615,416) Net Asset Value of units issued/(redeemed) during the year 5,080,613 8,924,358 16,862,469

Baring Asia Growth Fund Class A Class A Class A USD Inc EUR Inc GBP Inc By units: Units Units Units Units in issue as at 01/05/2013 1,188,761 317,240 62,093 Units issued during the year 388,055 13,182 46,429 Units redeemed during the year (674,318) (193,018) (74,070) Units in issue as at 30/04/2014 902,498 137,404 34,452

By value: US$ € £ Net Asset Value of units issued during the year 23,537,529 600,534 1,762,919 Net Asset Value of units redeemed during the year (41,123,546) (8,745,586) (2,866,089) Net Asset Value of units redeemed during the year (17,586,017) (8,145,052) (1,103,170)

77 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

4. Units issued and redeemed (continued)

Baring Australia Fund Class A Class A Class A Class A Class I USD Inc AUD Inc EUR Inc GBP Inc GBP Acc By units: Units Units Units Units Units Units in issue as at 01/05/2013 1,060,023 23,232 164,668 9,631 - Units issued during the year 421,401 15,204 85,350 1,069 1,095 Units redeemed during the year (589,444) (24,593) (99,824) (3,506) - Units in issue as at 30/04/2014 891,980 13,843 150,194 7,194 1,095

By value: US$ A$ € £ £ Net Asset Value of units issued during the year 50,384,226 1,902,460 7,433,134 84,710 96,236 Net Asset Value of units redeemed during the year (70,368,061) (3,152,542) (9,011,826) (268,146) - Net Asset Value of units (redeemed)/issued during the year (19,983,835) (1,250,082) (1,578,692) (183,436) 96,236

Baring Europa Fund Class A Class A Class C Class C Class A RMB USD Inc EUR Inc EUR Inc USD Inc Hedged Acc By units: Units Units Units Units Units Units in issue as at 01/05/2013 1,157,474 378,475 7,263 7,702 - Units issued during the year 2,059,137 341,097 21,421 79,333 10 Units redeemed during the year (853,617) (223,281) (5,495) (30,816) - Units in issue as at 30/04/2014 2,362,994 496,291 23,189 56,219 10

By value: US$ € € US$ ¥ Net Asset Value of units issued during the year 106,697,809 12,968,783 792,545 4,080,586 3,400 Net Asset Value of units redeemed during the year (44,128,337) (8,390,219) (208,969) (1,583,634) - Net Asset Value of units issued during the year 62,569,472 4,578,564 583,576 2,496,952 3,400

Baring Hong Kong China Fund Class A Class A Class A Class A Class A USD Inc EUR Inc GBP Inc HKD Inc USD Acc By units: Units Units Units Units Units Units in issue as at 01/05/2013 2,639,779 571,853 2,124 25,954 832 Units issued during the year 430,144 54,827 544 17,034 298 Units redeemed during the year (901,676) (235,840) (1,036) (11,677) (159) Units in issue as at 30/04/2014 2,168,247 390,840 1,632 31,311 971

By value: US$ € £ HK$ US$ Net Asset Value of units issued during the year 353,251,039 33,724,303 281,769 110,974,414 241,515 Net Asset Value of units redeemed during the year (741,035,545) (141,242,197) (534,151) (75,946,087) (132,994) Net Asset Value of units (redeemed)/issued during the year (387,784,506) (107,517,894) (252,382) 35,028,327 108,521

78 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

4. Units issued and redeemed (continued)

Baring Hong Kong China (continued) Class C Class C Class A RMB Class I EUR Inc USD Inc Hedged Acc GBP Acc By units: Units Units Units Units Units in issue as at 01/05/2013 1,319 3,767 - - Units issued during the year 12 886 10 3 Units redeemed during the year (555) (1,501) - - Units in issue as at 30/04/2014 776 3,152 10 3

By value: € US$ ¥ £ Net Asset Value of units issued during the year 7,235 716,938 51,913 1,500 Net Asset Value of units redeemed during the year (331,149) (1,182,769) - - Net Asset Value of units (redeemed)/issued during the year (323,914) (465,831) 51,913 1,500

Baring International Bond Fund Class A Class A Class A Class I Class I USD Inc EUR Inc GBP Inc GBP Inc USD Acc By units: Units Units Units Units Units Units in issue as at 01/05/2013 3,568,454 583,361 455,551 52,591 - Units issued during the year 911,005 46,709 44,036 92,194 15,207 Units redeemed during the year (1,524,010) (189,934) (185,548) (45,226) (560) Units in issue as at 30/04/2014 2,955,449 440,136 314,039 99,559 14,647

By value: US$ € £ £ US$ Net Asset Value of units issued during the year 24,588,420 939,391 761,785 1,628,122 408,905 Net Asset Value of units redeemed during the year (41,008,484) (3,785,066) (3,102,032) (780,466) (15,332) Net Asset Value of units (redeemed)/issued during the year (16,420,064) (2,845,675) (2,340,247) 847,656 393,573

79 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

4. Units issued and redeemed (continued)

Comparatives 30 April 2013

Baring ASEAN Frontiers Fund

Class A Class A Class A Class A RMB Class A USD Inc EUR Inc GBP Inc Hedged Acc USD Acc By units: Units Units Units Units Units Units in issue as at 01/05/2012 1,605,069 637,185 140,169 185 3,752 Units issued during the year 1,807,333 636,928 116,174 - 23,503 Units redeemed during the year (1,059,861) (456,825) (58,338) (104) (398) Units in issue as at 30/04/2013 2,352,541 817,288 198,005 81 26,857

By value: US$ € £ ¥ US$ Net Asset Value of units issued during the year 340,681,034 93,789,324 14,042,856 - 4,321,196 Net Asset Value of units redeemed during the year (195,451,288) (62,218,829) (6,804,942) (130,919) (67,468) Net Asset Value of units issued/(redeemed) during the year 145,229,746 31,570,495 7,237,914 (130,919) 4,253,728

Class I Class I EUR Acc GBP Acc By units: Units Units Units in issue as at 01/05/2012 18,298 1,414 Units issued during the year 135,688 21,547 Units redeemed during the year (23,164) (2,172) Units in issue as at 30/04/2013 130,822 20,789

By value: € £ Net Asset Value of units issued during the year 19,748,986 2,822,040 Net Asset Value of units redeemed during the year (3,695,697) (298,192) Net Asset Value of units issued during the year 16,053,289 2,523,848

Baring Asia Growth Fund Class A Class A Class A USD Inc EUR Inc GBP Inc By units: Units Units Units Units in issue as at 01/05/2012 1,457,670 309,805 109,669 Units issued during the year 609,367 139,140 61,393 Units redeemed during the year (878,276) (131,705) (108,969) Units in issue as at 30/04/2013 1,188,761 317,240 62,093

By value: US$ € £ Net Asset Value of units issued during the year 35,003,676 6,293,963 2,269,370 Net Asset Value of units redeemed during the year (51,079,228) (5,801,398) (3,987,267) Net Asset Value of units (redeemed)/issued during the year (16,075,552) 492,565 (1,717,897)

80 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

4. Units issued and redeemed (continued)

Comparatives 30 April 2013 (continued)

Baring Australia Fund Class A Class A Class A Class A USD Inc AUD Inc EUR Inc GBP Inc By units: Units Units Units Units Units in issue as at 01/05/2012 1,482,505 29,503 161,173 11,080 Units issued during the year 538,204 22,262 285,485 5,094 Units redeemed during the year (960,686) (28,533) (281,990) (6,543) Units in issue as at 30/04/2013 1,060,023 23,232 164,668 9,631

By value: US$ A$ € £ Net Asset Value of units issued during the year 61,810,217 2,607,436 26,006,128 388,876 Net Asset Value of units redeemed during the year (112,381,920) (3,172,698) (25,194,223) (496,057) Net Asset Value of units (redeemed)/issued during the year (50,571,703) (565,262) 811,905 (107,181)

Baring Europa Fund Class A Class A Class C Class C USD Inc EUR Inc EUR Inc USD Inc By units: Units Units Units Units Units in issue as at 01/05/2012 1,302,587 481,217 7,687 5,921 Units issued during the year 378,068 29,048 3,932 3,395 Units redeemed during the year (523,181) (131,790) (4,356) (1,614) Units in issue as at 30/04/2013 1,157,474 378,475 7,263 7,702

By value: US$ € € US$ Net Asset Value of units issued during the year 14,982,436 896,036 116,647 140,762 Net Asset Value of units redeemed during the year (20,854,968) (4,097,866) (134,704) (66,460) Net Asset Value of units (redeemed)/issued during the year (5,872,532) (3,201,830) (18,057) 74,302

81 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

4. Units issued and redeemed (continued)

Comparatives 30 April 2013 (continued)

Baring Hong Kong China Fund Class A Class A Class A Class A Class A USD Inc EUR Inc GBP Inc HKD Inc USD Acc By units: Units Units Units Units Units Units in issue as at 01/05/2012 3,510,750 732,858 2,522 18,431 692 Units issued during the year 594,217 76,470 573 11,718 309 Units redeemed during the year (1,465,188) (237,475) (971) (4,195) (169) Units in issue as at 30/04/2013 2,639,779 571,853 2,124 25,954 832

By value: US$ € £ HK$ US$ Net Asset Value of units issued during the year 464,176,967 46,046,247 283,004 73,653,293 237,260 Net Asset Value of units redeemed during the year (1,114,806,663) (142,105,547) (488,854) (24,391,852) (123,019) Net Asset Value of Units (redeemed)/issued during the year (650,629,696) (96,059,300) (205,850) 49,261,441 114,241

Class C Class C EUR Inc USD Inc By units: Units Units Units in issue as at 01/05/2012 1,924 4,221 Units issued during the year 311 1,143 Units redeemed during the year (916) (1,597) Units in issue as at 30/04/2013 1,319 3,767

By value: € US$ Net Asset Value of units issued during the year 182,965 859,096 Net Asset Value of units redeemed during the year (543,727) (1,186,863) Net Asset Value of units redeemed during the year (360,762) (327,767)

Baring International Bond Fund Class A Class A Class A Class I USD Inc EUR Inc GBP Inc GBP Inc By units: Units Units Units Units Units in issue as at 01/05/2012 4,161,018 682,484 507,817 - Units issued during the year 2,011,319 304,581 250,302 52,591 Units redeemed during the year (2,603,883) (403,704) (302,568) - Units in issue as at 30/04/2013 3,568,454 583,361 455,551 52,591

By value: US$ € £ £ Net Asset Value of units issued during the year 56,032,322 6,653,797 4,407,762 938,214 Net Asset Value of units redeemed during the year (72,855,291) (8,741,053) (5,321,236) - Net Asset Value of units (redeemed)/issued during the year (16,822,969) (2,087,256) (913,474) 938,214

82 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued) 5. Soft commission arrangements The Manager and its associates will not receive cash from, or offer rebates to, brokers or dealers in respect of transactions for the Investment Manager. The Investment Manager uses dealing commission generated on equity transactions to purchase goods and services that relate to the execution of trades or the provision of research for the benefit of the Funds. Execution of transactions will be consistent with best execution standards. The following Funds within the Trust had engaged in soft commission arrangements during the year: Baring ASEAN Frontiers Fund, Baring Asia Growth Fund, Baring Australia Fund, Baring Europa Fund and Baring Hong Kong China Fund.

6. Comparative statistics

Net asset value per unit 30/04/2014 30/04/2013 30/04/2012 Baring ASEAN Frontiers Fund Class A USD Inc US$186.19 US$213.79 US$174.54 Baring ASEAN Frontiers Fund Class A EUR Inc €134.63 €163.52 €132.03 Baring ASEAN Frontiers Fund Class A GBP Inc £110.72 £138.05 £107.34 Baring ASEAN Frontiers Fund Class A RMB Hedged Acc ¥1,193.39 ¥1,353.47 ¥1,097.25 Baring ASEAN Frontiers Fund Class A USD Acc US$188.43 US$215.14 US$174.53 Baring ASEAN Frontiers Fund Class I EUR Acc €138.99 €167.15 €133.45 Baring ASEAN Frontiers Fund Class I GBP Acc £114.56 £141.20 £108.56 Baring ASEAN Frontiers Fund Class I USD Acc US$195.14 - -

Baring Asia Growth Fund Class A USD Inc US$61.95 US$63.37 US$59.24 Baring Asia Growth Fund Class A EUR Inc €44.79 €48.47 €44.82 Baring Asia Growth Fund Class A GBP Inc £36.84 £40.92 £36.43

Baring Australia Fund Class A USD Inc US$128.89 US$136.13 US$120.73 Baring Australia Fund Class A AUD Inc A$139.11 A$131.58 A$115.76 Baring Australia Fund Class A EUR Inc €93.19 €104.12 €91.33 Baring Australia Fund Class A GBP Inc £76.64 £87.90 £74.25 Baring Australia Fund Class I GBP Acc £78.53 - -

Baring Europa Fund Class A USD Inc US$54.59 US$43.69 US$39.76 Baring Europa Fund Class A EUR Inc €39.47 €33.42 €30.08 Baring Europa Fund Class C EUR Inc €38.44 €32.69 €29.43 Baring Europa Fund Class C USD Inc US$53.25 US$42.82 US$38.98 Baring Europa Fund Class A RMB Hedged Acc ¥338.57 - -

Baring Hong Kong China Fund Class A USD Inc US$800.64 US$809.61 US$813.45 Baring Hong Kong China Fund Class A EUR Inc €578.94 €619.23 €615.36 Baring Hong Kong China Fund Class A GBP Inc £476.12 £522.78 £500.28 Baring Hong Kong China Fund Class A HKD Inc HK$6207.40 HK$6283.78 HK$6311.41 Baring Hong Kong China Fund Class A USD Acc US$805.43 US$809.72 US$813.46 Baring Hong Kong China Fund Class C EUR Inc €554.36 €595.43 €597.67 Baring Hong Kong China Fund Class C USD Inc US$761.54 US$773.3 US$784.78 Baring Hong Kong China Fund Class I GBP Acc £476.25 - - Baring Hong Kong China Fund Class A RMB Hedged Acc ¥4,971.59 - -

Baring International Bond Fund Class A USD Inc US$27.49 US$28.17 US$28.09 Baring International Bond Fund Class A EUR Inc US$19.88 US$21.55 US$21.25 Baring International Bond Fund Class A GBP Inc £16.35 £18.19 £17.28 Baring International Bond Fund Class I GBP Inc £16.39 £18.19 - Baring International Bond Fund Class I USD Acc US$27.52 - -

83 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

7. Exchange rates

30/04/2014

Exchange rate to US$ Exchange rate to US$ Australian dollar 1.0793 Polish zloty 3.0375 Canadian dollar 1.0965 Pound sterling 0.5947 Danish krone 5.3972 Singapore dollar 1.2568 Euro 0.7231 South African rand 10.5460 Hong Kong dollar 7.7530 South Korean won 1,033.3000 Indian rupee 60.3150 Sri Lankan rupee 130.6500 Indonesian rupiah 11,561.5000 Swedish krona 6.5616 Japanese yen 102.5750 Swiss franc 0.8821 Malaysian dollar 3.2655 Taiwan dollar 30.1980 Mexican peso 13.0968 Thai baht 32.3600 New Zealand dollar 1.1640 Turkish lira 2.1169 Norwegian kronor 5.9732 UAE dirham 3.6731 Philippines peso 44.5800 Vietnamese New Dng 21082.5000

30/04/2013

Exchange rate to US$ Exchange rate to US$ Australian dollar 0.9666 Polish zloty 3.1732 Canadian dollar 1.0114 Pound sterling 0.6150 Danish krone 5.7035 Singapore dollar 1.2340 Euro 0.7585 South African rand 8.9655 Hong Kong dollar 7.7615 South Korean won 1,101.3000 Indian rupee 53.8750 Sri Lankan rupee 126.7000 Indonesian rupiah 9,722.5000 Swedish krona 6.5422 Japanese yen 97.5800 Swiss franc 0.9359 Malaysian ringgit 3.0425 Taiwan dollar 29.5120 Mexican peso 12.2010 Thai baht 29.3500 Norwegian krone 5.8264 Turkish lira 1.7979

84 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

8. Financial risk management

Strategy in using financial instruments

The Funds of the Trust are exposed to a variety of financial risks in pursuing their stated investment objectives and policies. These risks include, but are not limited to, credit risk, liquidity risk and market risk (which in turn includes foreign currency risk, interest rate risk and market price risk). The Funds take exposure to certain of these risks to generate investment returns on their portfolios, although these risks can also potentially result in a reduction in the Funds’ net assets. The Investment Manager will use their best endeavours to minimise the potentially adverse effects of these risks on the Funds’ performance where it can do so, while still managing the investments of the Funds in a way that is consistent with the Funds’ investment objectives and policies.

The investment objective of the Funds is disclosed in the Prospectus and the Investment Manager’s Reports. The risks, and the measures adopted by the Funds for managing these risks, are detailed below.

The Manager reviews and agrees policies for managing each of these risks and they are summarised below. These policies have remained substantially unchanged since the beginning of the year to which these financial statements relate.

(a) Market price risk

Market price risk is defined in FRS 29 as the risk that the fair value of a financial instrument or its future cash flows will fluctuate because of changes in market prices.

The Funds’ assets consist principally of equity instruments except for Baring International Bond Fund which consists of bonds, futures and FFCTs. The values of these instruments are determined by market forces and accordingly there is a risk that market prices can change in a way that is adverse to the Funds’ performance. The Funds have adopted a number of investment restrictions which are set out in the Trust’s Prospectus which limit the exposure of the Funds to adverse changes in the price of any individual financial asset. In accordance with the Funds’ policy, the Investment Manager monitors the Funds’ positions on a daily basis and reports regularly to the Board of Directors of the Manager, which reviews the information on the Funds’ overall market exposures provided by the Investment Manager at its periodic meetings.

The Investment Manager uses three techniques to help in the risk management process: monitoring of compliance and quantitative limits, prevention of limit breaches and trade monitoring. These techniques allow the Investment Manager to ensure that the Funds remain in compliance with the restrictions in the Prospectus and the Undertakings for the UCITS regulations under which the Funds are governed.

In addition, the Investment Manager manages the exposure of the portfolio to the risk of adverse changes in the general level of market prices through adhering to its formal risk management process, which includes the use of systems and technology to monitor overall market and position risk on a daily basis. The maximum risk arising from an investment is determined by the fair value of the financial instruments. The overall market exposures and concentration of risk can be seen on the portfolio statement and balance sheet of each Fund. The Funds’ market price risk is affected by two components: changes in market prices and currency exchange rates. The Funds’ exposure to market risk is disclosed in the portfolio statements.

The method used to determine the global exposure is the relative value at risk (“VaR”). VaR is calculated daily for the Funds and performance comparison or reference portfolios using risk metrics (one of the leading suppliers of risk management software).

Where relative VaR is used, the calculation uses a historic methodology and utilises a 99% confidence interval, 10 day holding period and uses 3 years of daily returns for equity or 2 years for fixed income funds. Any positions in the Funds with a shorter history have the missing returns backfilled using the appropriate local market sector index returns. The Fund’s VaR is shown as a percentage of the VaR of the performance comparator or reference portfolio fund VaR for the underlying Funds to ensure that the relative figure is within an internal limit. This limit is set lower than a multiple of two (or 200%) of the performance comparison or reference portfolio VaR.

Where absolute VaR is used, the VaR calculation uses a historic methodology and utilises a 99% confidence interval, 20 day holding period and uses 3 years of daily returns for equity or 2 years for fixed income funds. The Fund’s VaR is shown as a percentage of the Fund’s Net Asset Value and is monitored against an internal limit. This limit is set lower than 20%.

85 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

8. Financial risk management (continued)

(a) Market price risk (continued)

Performance comparison or Fund Name Fund Relative VaR over the past financial year reference portfolio 30/04/2014 30/04/2013 Lowest Highest Mean Baring ASEAN Frontiers Fund 91.18% 78.32% 74.22% 97.72% 88.73% MSCI South East Asia Baring Asia Growth Fund 108.26% 86.48% 83.12% 108.26% 94.79% MSCI AC Asia ex Japan Baring Australia Fund 98.92% 99.82% 93.31% 102.94% 100.11% MSCI Australia 10-40 Baring Europa Fund 103.69% 106.28% 101.07% 106.59% 103.80% MSCI Europe Baring Hong Kong China Fund 90.38% 92.28% 85.02% 99.16% 92.54% MSCI China Baring International Bond Fund 106.78% 127.48% 106.78% 132.41% 118.56% Citi WGBI

Fund Name Absolute VaR over the past financial year 30/04/2014 30/04/2013 Lowest Highest Mean Baring ASEAN Frontiers Fund 7.74% 6.88% 6.27% 8.29% 7.54% MSCI South East Asia 8.49% 8.79% 8.30% 8.79% 8.50% Baring Asia Growth Fund 10.56% 8.62% 8.03% 10.56% 9.25% MSCI AC Asia ex Japan 9.76% 9.97% 9.60% 9.97% 9.76% Baring Australia Fund 10.84% 12.77% 10.24% 12.85% 11.03% MSCI Australia 10-40 10.96% 12.79% 10.53% 12.83% 11.02% Baring Europa Fund 13.28% 13.91% 12.96% 13.95% 13.32% MSCI Europe 12.81% 13.09% 12.65% 13.09% 12.83% Baring Hong Kong China Fund 10.29% 11.84% 9.69% 11.86% 10.63% MSCI China 11.39% 12.83% 11.37% 12.83% 11.48% Baring International Bond Fund 2.86% 3.07% 2.86% 3.69% 3.31% Citi WGBI 2.67% 2.41% 2.41% 2.99% 2.79%

Some limitations of VaR analysis are:

 the methodology is based on historical data and cannot take account of the fact that future market price movements, correlations between markets and levels of market liquidity in conditions of market stress may bear no relation to historical patterns; and

 the VaR is a point-in-time calculation, and does not necessarily reflect the risk position of the Funds at any time other than the date and time at which it is calculated.

(b) Foreign currency risk

Currency risk is defined in FRS 29 as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Funds are exposed to currency risk as assets and liabilities of the Funds may be denominated in a currency other than the functional currency of the Funds, which is US dollar.

The fluctuations in the rate of exchange between the currency in which the asset or liability is denominated and the functional currency could result in an appreciation or depreciation in the fair value of those assets and liabilities. The Investment Manager is permitted but not obliged to use hedging techniques to attempt to offset market and currency risk.

In accordance with the Trust’s policy, the Investment Manager monitors the Funds’ currency exposures on a daily basis and reports regularly to the Board of Directors of the Manager, which reviews the information provided by the Investment Manager on any significant exposures at its periodic meetings.

The Investment Manager may have used FFCTs on Funds as a tool and technique to hedge these currency exposures.

The Funds’ sensitivity to changes in foreign currency rates is included in the VaR risk analysis above. The Funds’ portfolio statement details the currency, and therefore currency risk, of the underlying investments.

86 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

8. Financial risk management (continued)

(b) Foreign currency risk (continued)

Foreign exchange transactions and other currency contracts may also be used to provide protection against exchange risks or to actively overlay currency views onto the Funds’ currency exposure resulting from investing in foreign markets. Such contracts may, at the discretion of the Investment Manager, be used to hedge some or all of the exchange risk/currency risk arising as a result of the fluctuation between the denominated currency of the Funds and the currencies in which the Funds’ investments are denominated, or to pursue an active currency overlay strategy.

A Fund may (but is not obliged to) enter into certain currency related transactions in order to hedge the currency exposure of the assets of a Fund attributable to a particular class into the currency of denomination of the relevant class. Any financial instruments used to implement such strategies with respect to one or more classes shall be assets/liabilities of a Fund as a whole but will be attributable to the relevant class(es), and the gains/losses on, and the costs of, the relevant financial instruments will accrue solely to the relevant class. Any currency exposure of a class may not be combined with or offset against that of any other class of a Fund. The currency exposure of the assets attributable to a class may not be allocated to other classes. A class will not be leveraged as a result of currency hedging transactions so that the use of such hedging instruments shall in no case exceed 100% of the Net Asset Value attributable to the relevant class of a Fund.

This risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Baring International Bond Fund holds fixed interest rate debt securities which are exposed to fair value interest rate risk where the value of these securities may fluctuate as a result of a change in market interest rates.

All other financial assets and financial liabilities, with the exception of cash at bank balances and overdrawn cash, held by the Funds are not directly exposed to interest rate risk. The Funds are exposed to interest rate risk on the interest earned on their cash and bank balances and paid on overdrawn cash. This exposure is not considered to be significant.

Interest rate (“duration”) risks are managed by the Investment Manager, whose management of duration risk is monitored through regular performance reviews with senior managers as well as through monthly peer reviews of positioning held with senior managers. Individual managers are authorised to initiate fixed income trades within pre-set limits.

Interest rate risk sensitivity

Duration is a measure of the sensitivity of a bond price to interest rates. The percentage change in the price is equal to the change in interest rates multiplied by the modified duration. The monetary impact detailed in the following table shows the possible change in Net Asset Value resulting from a 1% change in interest rates.

Monetary impact on Monetary impact on Fund Name Average duration NAV (100bps) Average duration NAV (100bps) 30/04/2014 30/04/2014 30/04/2013 30/04/2013 Baring International Bond Fund 5.97 6,277,523 6.61 8,679,177

87 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

8. Financial risk management (continued)

(d) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities as they fall due.

The Funds are exposed to daily cash redemptions of units. However, the Manager is entitled, with the approval of the Trustee, to limit the number of units of any class realised on any dealing day to 10% of the total number of units of that class in issue. There are also a number of circumstances when the Manager may, with the approval of the Trustee, temporarily suspend the right of unitholders to require the realisation of units of any class and/or may delay the payment of any monies in respect of any such realisation.

The Funds invest the majority of their assets in securities and other instruments that are traded on an active market and which are considered to be liquid as they can be readily disposed of in the event that cash needs to be raised to meet redemptions or to pay expenses.

In accordance with the Funds’ policy, the Investment Manager monitors the Funds’ liquidity on a daily basis and reports regularly to the Board of Directors of the Manager, which reviews the information provided by the Investment Manager on significant exposures at its periodic meetings. The Funds have an agreed temporary overdraft facility with the Trustee to allow for temporary timing/matching differences on trades and subscriptions and redemptions.

During the year ended 30 April 2014, Baring Asean Frontiers Fund, Baring Asia Growth Fund, Baring Australia Fund, Baring Europa Fund and Baring Hong Kong China Fund had drawn down on this facility.

At 30 April 2014 and 30 April 2013, the Funds’ liabilities, as disclosed on the balance sheet were all due within one month.

The table below analyses the Funds’ financial derivative instruments that will be settled on a gross basis into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date.

Baring ASEAN Frontiers Fund < 1 month 1-3 Months 3 - 6 Months < 1 month 1-3 Months 3 - 6 Months 30/04/2014 30/04/2014 30/04/2014 30/04/2013 30/04/2013 30/04/2013 Forward foreign currency exchange contracts US$ US$ US$ US$ US$ US$ Inflow - 230,429 - - - 34,856 Outflow - (232,175) - - - (34,424)

Baring Hong Kong China Fund < 1 month 1-3 Months 3 - 6 Months < 1 month 1-3 Months 3 - 6 Months 30/04/2014 30/04/2014 30/04/2014 30/04/2013 30/04/2013 30/04/2013 Forward foreign currency exchange contracts US$ US$ US$ US$ US$ US$ Inflow - 8,372 - - - - Outflow - (8,432) - - - -

Baring International Bond Fund < 1 month 1-3 Months 3 - 6 Months < 1 month 1-3 Months 3 - 6 Months 30/04/2014 30/04/2014 30/04/2014 30/04/2013 30/04/2013 30/04/2013 Forward foreign currency exchange contracts US$ US$ US$ US$ US$ US$ Inflow - 60,389,889 - 12,431,152 71,747,326 - Outflow - (60,539,327) - (12,827,541) (71,640,188) -

88 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

8. Financial risk management (continued)

(e) Credit risk

Credit risk is defined in FRS 29 as the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

The Funds’ holdings/securities consist principally of equity instruments, and are not directly exposed to credit risk from these positions with the exception of Baring International Bond Fund, which consists of bonds and is directly exposed to credit risk.

However, the Funds will be exposed to credit risk on parties with whom they trade and will bear the risk of settlement default. All transactions in listed securities are settled/paid for upon delivery using approved brokers. The risk of default is considered minimal, as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its obligation. The Funds are exposed to credit risk on cash and investment balances held with the Trustee.

Substantially all of the cash assets are held with the Northern Trust Company, London Branch (“NTC”). Cash deposited with NTC is deposited as banker and is held on its balance sheet. In accordance with usual banking practice, NTC’s liability to the Fund in respect of such cash deposits shall be that of debtor and the Fund will rank as a general creditor of NTC. The financial assets are held with the Trustee, Northern Trust Fiduciary Services (Ireland) Limited. These assets are held distinctly and separately from the proprietary assets of the Trustee. Securities are clearly recorded to ensure that they are held on behalf of the Fund. Bankruptcy or insolvency of the Trustee and or one of its agents or affiliates may cause the Fund’s rights with respect to the securities held by the Trustee to be delayed.

Both Northern Trust Fiduciary Services (Ireland) Limited and the Northern Trust Company, London Branch are wholly owned subsidiaries of Northern Trust Corporation.

As at 30 April 2014, Northern Trust Corporation had a long-term rating from Standard & Poor’s of A+ (30 April 2013: A+).

Risk is managed by monitoring the credit quality and financial positions of the Trustee the Funds use.

Northern Trust acts as its own sub-trustee in the U.S., the U.K., Ireland and Canada. In all other markets, Northern Trust appoints a local sub-trustee. Northern Trust continually reviews its sub-trustee network to ensure that clients have access to the most efficient, creditworthy and cost-effective provider in each market.

The Investment Manager reviews concentrations of credit risk on a fortnightly basis. All exposures to counterparty credit risk are monitored by the Baring Asset Management Limited Counterparty Credit Committee and are subject to Baring Asset Management Limited Counterparty Credit Policy (“CCP”). Baring Asset Management Limited requires a minimum credit rating of Dunn and Bradstreet 3, but also actively avoids exposure to entities having an S&P rating of less than AA-, even where the D&B rating is 3 or better. Adherence to the CCP is very rigidly enforced.

Any changes to ratings which cause divergence from CCP are acted on immediately without exception. Application for Initial Public Offerings (“IPOs”), for example, is subject to the credit rating of the entity to whose balance sheet the application will expose the investing Fund.

Where no satisfactory rating is applied, Baring Asset Management Limited insists that monies are paid into a ring-fenced 'Client Money' account, hence avoiding exposure not permitted by the CCP. The Funds minimise concentrations of credit risk by undertaking transactions with a large number of regulated counterparties on recognised and reputable exchanges.

Credit risk arising from receivables relating to unsettled trades is considered small due to the short settlement period involved. The maximum exposure related to unsettled trades equals the amounts shown on the balance sheet. There was no past due or impaired assets as of 30 April 2014 (30 April 2013: $nil) with the exception of Anglo Irish Bank and Immoeast in the Baring Europa Fund and Tungda Innovative Lighting in the Baring Hong Kong China Fund as disclosed in the portfolio statements.

89 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

8. Financial risk management (continued)

(e) Credit risk (continued)

At 30 April 2014 and 30 April 2013, the Baring International Bond Fund exposure to credit risk was as follows:

Portfolio by rating category Rating 30/04/2014 30/04/2013 Investment grade 93.49% 65.67% Non investment grade - 7.52% Non rated 6.51% 26.81% 100.00% 100.00%

For investments held at 30 April 2014, investments held above S&P rating BBB- were considered investment grade however at 30 April 2013 investments held of S&P rating B- and above were considered investment grade.

(f) Fair value hierarchy

FRS 29 requires the Funds to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels.

 Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

 Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).

 Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

The determination of what constitutes ‘observable’ requires significant judgement by the Manager. The Manager considers observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

90 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

8. Financial risk management (continued)

(f) Fair value hierarchy (continued)

The following tables analyse within the fair value hierarchy the Funds’ financial assets and liabilities measured at fair value as at 30 April 2014 and 30 April 2013.

Financial assets and liabilities at fair value through profit or loss

As at 30/04/2014 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring ASEAN Frontiers Fund Equities 546,904,318 546,904,318 - - Collective Investment Schemes 25,449,329 - 25,449,329 - P-notes 5,414,745 - 5,414,745 - Warrants 3,105,586 - 3,105,586 - Forward foreign currency transactions (1,746) - (1,746) - Total 580,872,232 546,904,318 33,967,914 -

As at 30/04/2013 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring ASEAN Frontiers Fund Equities 714,878,702 714,878,702 - - Collective Investment Schemes 14,899,900 - 14,899,900 - Warrants 2,448,571 - 2,448,571 - Forward foreign currency transactions 180 - 180 - Total 732,227,353 714,878,702 17,348,651 -

As at 30/04/2014 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring Asia Growth Fund Equities 60,672,152 60,672,152 - - Collective Investment Schemes 5,586,257 - 5,586,257 - Total 66,258,409 60,672,152 5,586,257 -

As at 30/04/2013 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring Asia Growth Fund Equities 92,462,010 92,462,010 - - Collective Investment Schemes 5,539,622 - 5,539,622 - Total 98,001,632 92,462,010 5,539,622 -

91 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

8. Financial risk management (continued)

(f) Fair value hierarchy (continued)

Financial assets and liabilities at fair value through profit or loss (continued)

As at 30/04/2014 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring Australia Fund Equities 136,670,200 136,670,200 - - Collective Investment Schemes 221,700 - 221,700 - Total 136,891,900 136,670,200 221,700 -

As at 30/04/2013 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring Australia Fund Equities 170,565,181 170,565,181 - - Collective Investment Schemes 399,375 - 399,375 - Total 170,964,556 170,565,181 399,375 -

As at 30/04/2014 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring Europa Fund Equities 160,091,130 160,091,130 - - Total 160,091,130 160,091,130 - -

As at 30/04/2013 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring Europa Fund Equities 67,741,138 67,741,138 - - Collective Investment Schemes 126,823 - 126,823 - Total 67,867,961 67,741,138 126,823 -

92 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

8. Financial Risk Management (continued)

(f) Fair value hierarchy (continued)

Financial assets and liabilities at fair value through profit or loss (continued)

As at 30/04/2014 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring Hong Kong China Fund Equities 2,057,953,461 2,057,953,461 - - Collective Investment Schemes 39,024,064 - 39,024,064 - Warrants 32,150 - 32,150 - Forwards (60) - (60) - Total 2,097,009,615 2,057,953,461 39,056,154 -

As at 30/04/2013 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring Hong Kong China Fund Equities 2,593,280,684 2,593,280,684 - - Collective Investment Schemes 42,075,493 - 42,075,493 - Total 2,635,356,177 2,593,280,684 42,075,493 -

As at 30/04/2014 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring International Bond Fund Fixed interest 102,878,191 - 102,878,191 - Collective Investment Schemes 608,980 - 608,980 - Futures (22,618) (22,618) - - Forward foreign currency transactions (149,438) - (149,438) - Total 103,315,115 (22,618) 103,337,733 -

As at 30/04/2013 Total Level 1 Level 2 Level 3 US$ US$ US$ US$ Baring International Bond Fund Fixed interest 126,830,159 - 126,830,159 - Collective Investment Schemes 553,903 - 553,903 - Forward foreign currency transactions (289,251) - (289,251) - Total 127,094,811 - 127,094,811 -

There have been no significant transfers during 2014 or 2013 between the levels. There were assets classified at level 3 but they were zero priced securities, there were no financial liabilities classified at level 3 (30 April 2013: Nil).

93 Baring International Umbrella Fund Notes to the financial statements

Notes to the financial statements (continued)

9. Bank facilities

There is a bank overdraft facility in place with NTC. An “uncommitted” multi-currency loan facility has been made available by NTC to the Funds. On 30 April 2014, there was no amount drawn down on this facility with the exception of the Baring Europa Fund (30 April 2013 Baring Australia Fund and Baring Hong Kong China).

10. Taxation

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

However, Irish tax can arise on the happening of a chargeable event in the Trust. A chargeable event includes any distribution payments to unitholders or any encashment, redemption, transfer or cancellation of units and any deemed disposal of units for Irish tax purposes arising as a result of holding units in the Trust for a period of eight years or more.

No Irish tax will arise in respect of chargeable events due to a unitholder who is an exempt Irish investor (as defined in Section 739D of the TCA) or who is neither an Irish resident nor ordinarily a resident in Ireland for tax purposes at the time of the chargeable event, provided, in each case, that an appropriate valid declaration in accordance with Schedule 2B of the TCA is held by the Trust or where the Trust has been authorised by Irish Revenue to make gross payments in absence of appropriate declarations.

Capital gains, dividends and interest received on investments made by the Trust may be subject to withholding taxes imposed by the country of origin and such taxes may not be recoverable by the Trust or its unitholders.

11. Subsequent events

There have been no events subsequent to the year-end which, in the opinion of the Board of Directors of the Manager, may have had a material impact on these financial statements.

12. Approval of financial statements

The financial statements were approved by the Board of Directors of the Manager on 14 August 2014.

94 Baring International Umbrella Fund Information for investors in Switzerland

Information for investors in Switzerland

Baring International Fund Managers (Ireland) Limited, (“the Manager”) has appointed BNP Paribas Securities Services, Paris, Succursale de Zurich, Selnaustrasse 16, CH-8002, Zurich, Switzerland, as representative and paying agent for Switzerland. For units distributed in Switzerland, units are distributed by BNP Paribas Securities Services, Paris at the above address. Investors can obtain, free of charge, the Prospectus, the Key investor information Document(s) (“KIID(s)”), the last Annual and Interim Reports, copies of the instrument of incorporation and of amendment to the Instrument of Incorporation if any, as well as a list of the purchases and sales made on behalf of the Fund, in German, from the representative at the above address. Official publications for the Fund are found on the internet at www.fundinfo.com and in the Swiss Official Trade Gazette. Unit prices (Net Asset Value with the words "plus commissions") are published daily on the internet at www.fundinfo.com.

All the information appearing in these Reports and accounts is solely with respect to those Funds of the Trust which are licensed for public offer and marketing in or from Switzerland, namely: Baring ASEAN Frontiers Fund, Baring Asia Growth Fund, Baring Australia Fund, Baring Europa Fund, Baring Hong Kong China Fund and Baring International Bond Fund.

Representative and paying agent for Switzerland

BNP Paribas Securities Services, Paris

Succursale de Zurich

Selnaustrasse 16

8002 Zurich

Switzerland

Performance Following a guideline from the Swiss Funds Association (“the SFA”) dated 16 May 2008, the Board of Directors are supplying performance data in conformity with the said guideline. This data can be found below and under each of the Funds’ Reports on pages 9, 10, 21, 29, 37, 38, 47, 48 and 59. Furthermore, the Board of Directors are required to provide the below additional information on performance.

There is no appropriate performance comparison for the Funds. The following comparative indices are used, as in the Board of Directors’ opinion, and in the light of the investment policy of the relevant Fund, they are the most appropriate selection for comparison.

Baring ASEAN Frontiers Fund

MSCI (Morgan Stanley Capital International) South East Asia index.

Baring Asia Growth Fund

The MSCI (Morgan Stanley Capital International) All Country Asia ex Japan Index.

Baring Australia Fund

The performance comparison is the MSCI (Morgan Stanley Capital International) Australia 10/40 index.

Baring Europa Fund The MSCI (Morgan Stanley Capital International) Europe Index.

Baring Hong Kong China Fund

The MSCI (Morgan Stanley Capital International) China Index.

Baring International Bond Fund

The Citigroup World Government Bond Index (“WGBI”) is a market capitalisation–weighted index.

95 Baring International Umbrella Fund Information for investors in Switzerland

Information for investors in Switzerland (continued)

Total expense ratio

Pursuant to a guideline from the SFA dated 16 May 2008, the Funds are required to publish a total expense ratio (“TER”) for the year ended 30 April 2014.

The total expense ratio for each Fund for the year ended 30 April 2014 and 30 April 2013 are as follows:

Name of Fund 30/04/2014 30/04/2013 TER in % TER in % Baring ASEAN Frontiers Fund Class A 1.75 1.75 Baring ASEAN Frontiers Fund Class I 1.25 1.25 Baring ASEAN Frontiers Fund Class I US$* 1.00 - Baring Asia Growth Fund Class A 1.84 1.80 Baring Australia Fund Class A 1.79 1.77 Baring Australia Fund Class I 1.30 1.27 Baring Europa Fund Class A 1.81 1.85 Baring Europa Fund Class C 2.81 2.85 Baring Hong Kong China Fund Class A 1.72 1.73 Baring Hong Kong China Fund Class C 2.72 2.73 Baring Hong Kong China Fund Class I 1.22 - Baring International Bond Fund Class A 1.30 1.32 Baring International Bond Fund Class I US$** 0.80 1.07 Baring International Bond Fund Class I £ 1.05 -

*Baring ASEAN Frontiers Class I USD Acc TER was capped at 1.00%.

**Baring International Bond Fund Class I USD Acc TER was capped ay 0.80%

This information was established by the Manager, Baring International Fund Managers (Ireland) Limited, based on the data contained in the profit and loss account for the above reference year (Fund management fees, administration fees, trustee fees, trustee fees, taxes and duties, all other commissions and expenses appearing as per the breakdown of the profit and loss Account and not already included in any of the foregoing categories). The TER is calculated using the average daily Net Asset Value for the year.

96 Baring International Umbrella Fund Information for investors in Switzerland

Information for investors in Switzerland (continued)

Portfolio turnover rate

The portfolio turnover rate (“PTR”) has been established in conformity with a guideline from the SFA of 16 May 2008, using as reference period the first part of the current and the second part of the previous accounting period.

(purchases of securities + sales of securities) - (units subscribed + units redeemed) (average Fund value for 12 month) x 100

The PTR numbers for each Fund for the year ended 30 April 2014 and 30 April 2013 are as follows:

Name of Fund 30/04/2014 30/04/2013 PTR in % PTR in % Baring ASEAN Frontiers Fund 79.62 122.51 Baring Asia Growth Fund 354.52 220.35 Baring Australia Fund 35.09 51.17 Baring Europa Fund 34.54 62.96 Baring Hong Kong China Fund 257.45 210.96 Baring International Bond Fund 190.83 185.33

Turnover data includes the overnight uncommitted cash movements into money market funds.

Trailer fees and reimbursements

Trailer fees (Bestandespflegekommissionen) may only be paid to the sales agents/partners indicated below:

 authorised sales agents(distributors) within the meaning of Article 13, Para 1, Collective Investment Schemes Act (“CISA”);

 sales agents (distributors) exempted from the authorisation requirement within the meaning of Article 13, Para 3, CISA and Article 8 Collective Investment Schemes Ordinance (“CISO”);

 sales partners who place Fundunits exclusively with institutional investors with professional treasury facilities; and/or

 sales partners who place Fundunits with their clients exclusively on the basis of a written commission-based asset management mandate.

 reimbursements (Rückvergütungen) may only be paid to the institutional investors detailed below who from a commercial perspective are holding the Fund units for third parties:

 life insurance companies (inrespect of Fund units held for the account of insured persons or to cover obligations towards insured persons);

 pension funds and other retirement provision institutions (in respect of Fund units held for the account of beneficiaries);

 investment foundations (in respectof Fund units held for the account of in-house funds);

 Swiss fund management companies (in respect of Fund units held for the account of the funds managed);

 foreign fund management companiesand providers (in respect of Fund units held for the account of managed funds and investing unitholders); and/or

 investment companies (in respectof the investment of the company assets).

97 Baring International Umbrella Fund Information for investors in Switzerland

Information for investors in Switzerland (continued)

Taxation

Please refer to the paragraph headed "European Union Taxation of Savings Income Directive" on page 100. The attention of investors is drawn to the fact that Switzerland and the European Union have entered into a bilateral agreement effective from 1 July 2005 based on which measures have been enacted in Switzerland which correspond to the European Union Taxation of Savings Income Directive. Generally, these measures require tax to be withheld on interest payment made by paying agents to EU residents.

98 Baring International Umbrella Fund Information for investors in Germany

Information for investors in Germany

The full Prospectus, the Key Investor Information Document(s) (“KIID(s)”), a list of portfolio changes, the Trust deed as well as the Annual and the Interim Reports are available free of charge in hard copy at the office of the German paying and information agent and the further German information agent.

German paying and information agent

Deutsche bank AG

Taunusanlage 12

60325 Frankfurt am Main

Germany

German paying and information agent

Baring Asset Management (Frankfurt)

Ulmenstraße 37-39

60325 Frankfurt

Germany

Special risks resulting from tax publication requirements in Germany

Foreign investment companies must provide documentation to the German fiscal authorities upon request, e.g. in order to verify the accuracy of the published tax information. The basis upon which such figures are calculated is open to interpretation and it cannot be guaranteed that the German fiscal authorities will accept the investment company’s calculation methodology in every material respect. In addition, if it transpires that these publications are incorrect, any subsequent correction will, as a general rule, not have retrospective effect and will, as a general rule, only take effect during the current financial year. Consequently, the correction may positively or negatively affect the investors who receive a distribution or an attribution of deemed income distributions in the current year.

99 Baring International Umbrella Fund General information

General information Market timing

Repeatedly purchasing and selling units in the Funds in response to short-term market fluctuations – known as ‘market timing’ – can disrupt Baring Asset Management Limited (“the Investment Manager”) investment strategy and increase the Funds’ expenses to the prejudice of all unitholders. The Funds are not intended for market timing or excessive trading. To deter these activities, the Directors of the Manager may refuse to accept an application for units from persons that they reasonably believe are engaged in market timing or are otherwise excessive or potentially disruptive to the Funds.

The Directors of the Manager reserve the right to redeem units from a unitholder on the basis of the circumstances of the unitholder concerned, or if they have reasonable grounds to believe that the unitholder engaging in any activity which might result in the Fund or its unitholders as a whole suffering any legal, regulatory, reputational or other material disadvantage which the Fund or its unitholders as a whole might not otherwise have suffered. UK reporting fund status

Applications were made with effect from 1 May 2011 for UK reporting fund status for those unit classes in the Funds which previously had UK distributor status while further applications will be made from time to time for certain new unit classes when they are launched. Applications may also be made from time to time for UK Reporting Fund status in respect of unit classes which did not previously have UK Distributor Status. UK taxable investors in UK Reporting Funds are subject to tax on their units of the UK Reporting Fund's income attributable to their holdings in the Fund, whether or not distributed, while typically any gains on disposal of their holdings are subject to capital gains tax.

Details of the unit classes which currently have UK reporting fund status are available at the Her Majesty's Revenue and Customs (“HMRC”) Collective Investment Schemes Centre website: http://www.hmrc.gov.uk/cisc/offshore-funds.html

It is important for UK tax payers to note that for each unit class with reporting fund status their units of any amounts of income, if any, that have not been distributed will be subject to tax. Further details will be made available on the Baring Asset Management Limited website: www.barings.com/uk European Union taxation of savings income directive

On 3 June 2003, the European commission published a new directive regarding the taxation of savings income (‘the Directive”). From 1 July 2005, member states have been required to provide to the tax authorities of another member state details of payments of interest or other similar income paid by a person within its jurisdiction to an individual resident in that other member state, subject to the right of certain member states to opt instead for a withholding tax system in relation to such payments. For the purposes of the Directive, interest payments include distributions made by certain collective investment funds to the extent that any relevant Fund has invested more than 15% of its assets directly or indirectly in interest bearing securities and income realised upon the sale, refund or redemption of fund units to the extent that the Fund has invested more than currently 25% directly or indirectly in interest bearing securities.

Accordingly, the Trustee, Administrator, paying agent or such other entity considered a “paying agent” (for the purposes of the Directive a “paying agent” is the economic operator who pays interest to or secures the payment of interest for the immediate benefit of the beneficial owner) for the purposes of the Directive, may be required to disclose details of, or withhold tax on, distributions and/or realisation payments by the Funds to unitholders who are individuals or residual entities (located in another EU member state) to the taxation authority in the home jurisdiction of the paying agent who will pass such details or tax to the member state where the investor resides.

As Ireland has opted for exchange of information rather than a withholding tax system, since the Directive became effective, the principal consequence for unitholders will be that details of relevant savings income are disclosed to the EU member states in which unitholders are resident. The Directive has now been enacted into Irish legislation and the reporting of any relevant payments of interest made by the Companies, together with various specified information relating to recipients who are individuals or residual entities resident in EU states other than Ireland, applied with effect from 1 July 2005.

Set out below are those Funds subject to disclosure and the disclosure to which they are currently and are expected to remain subject under the Directive. Fund Disclosure of distribution to the tax Disclosure of redemption proceeds to authorities of the underlying the tax authorities of the underlying unitholder (15% rule) unitholder (25% rule) Baring International Bond Fund  

100 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code

Baring ASEAN Frontiers Fund

Highest issue and lowest redemption prices

Highest issue prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 221.42 213.79 187.71 185.00 140.30 143.79 168.82 124.43 109.57 80.96 Class A EUR Inc 172.14 163.52 132.30 135.10 105.33 92.31 117.16 92.36 88.88 60.84 Class A GBP Inc 146.39 138.87 115.31 114.34 91.64 60.41 - - - - Class A RMB Hedged Acc 1,409.29 1,353.47 1,099.48 ------Class A USD Acc 224.08 215.14 175.03 ------Class I EUR Acc 177.00 167.15 133.45 126.74 ------Class I GBP Acc 150.58 142.03 116.19 114.35 ------Class I USD Acc 205.76 ------

Lowest redemption prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 163.85 154.23 134.70 117.37 77.68 58.51 121.14 89.58 72.81 61.46 Class A EUR Inc 122.57 123.90 102.18 96.21 58.36 46.24 80.40 71.19 57.62 51.13 Class A GBP Inc 101.17 100.08 87.60 81.95 52.04 38.28 - - - - Class A RMB Hedged Acc 1,048.02 975.48 1,047.17 ------Class A USD Acc 165.81 155.19 169.45 ------Class I EUR Acc 126.27 126.09 102.98 117.44 ------Class I GBP Acc 104.50 101.91 88.34 100.75 ------Class I USD Acc 170.85 ------

*The above highest issue prices and lowest redemption prices during the year are quoted in their respective unit classes’ denomination currency.

101 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring ASEAN Frontiers Fund (continued)

Statement of movements in portfolio holdings

30/04/2014 30/04/2013 30/04/2012 30/04/2011 % of NAV* % of NAV* % of NAV* % of NAV* China - - - 1.48 Hong Kong - 0.63 - 2.21 Indonesia 18.24 24.08 26.11 20.10 Jersey, C.I - - - 0.43 Luxembourg - - - 0.84 Malaysia 18.09 14.52 14.46 12.84 Netherlands - 0.97 0.85 0.43 Philippines 7.40 10.06 4.86 5.55 Singapore 30.66 20.09 26.22 28.67 Sri Lanka 1.61 1.42 2.41 4.78 Thailand 16.21 22.75 20.57 17.63 Vietnam 1.15 - - - P-notes 0.93 - - - Warrants 0.53 - - - Collective Investment Schemes 4.34 1.96 5.59 3.67 Total investments 99.16 96.48 101.07 98.63 Cash 0.29 1.50 0.02 0.78 Other net assets/(liabilities) 0.55 2.02 (1.09) 0.59 Total net assets 100.00 100.00 100.00 100.00

*Movement in portfolio holdings have been analysed above based on a % of NAV invested in each geographic location. The movement in each country’s position between years has to be inferred.

Portfolio information

Top Ten % of NAV DBS Group Holdings 5.39 Singapore Telecommunications 5.15 United Overseas Bank 4.87 Kasikornbank 3.34 Keppel 3.01 Northern Trust Global Funds - US Dollar Fund 2.72 Tenaga Nasional 2.63 Astra International 2.41 Bank Rakyat Indonesia Persero 2.17 Genting 2.10

102 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring Asia Growth Fund

Highest issue and lowest redemption prices

Highest issue prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 65.11 64.40 69.30 70.31 59.76 71.33 91.79 59.67 47.07 35.85 Class A EUR Inc 50.62 49.30 48.34 51.04 44.08 46.13 63.63 43.98 38.21 27.11 Class A GBP Inc 42.97 43.09 43.22 43.09 38.83 36.46 44.29 29.87 26.45 18.66

Lowest redemption prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 54.98 52.74 48.23 47.75 40.15 29.86 58.71 38.75 32.14 25.95 Class A EUR Inc 41.88 41.98 36.16 38.91 30.16 23.74 39.00 30.79 25.62 21.58 Class A GBP Inc 35.59 33.83 31.21 33.20 26.89 19.64 29.29 21.04 17.43 14.67

*The above highest issue prices and lowest redemption prices during the year are quoted in their respective unit classes’ denomination currency.

Statement of movements in portfolio holdings

30/04/2014 30/04/2013 30/04/2012 30/04/2011 % of NAV* % of NAV* % of NAV* % of NAV* Bermuda - 2.30 - - Cayman Islands - 5.62 - - China 22.48 14.23 13.69 16.31 Hong Kong 11.31 8.70 14.39 13.04 India 6.15 6.75 6.08 7.07 Indonesia 4.85 6.16 7.37 5.51 Luxembourg - - - 1.40 Malaysia 2.85 3.83 2.05 2.56 Philippines 1.25 2.53 0.67 2.06 Singapore 4.60 5.89 3.41 4.97 South Korea 16.25 18.31 23.48 22.50 Taiwan 18.60 14.25 14.07 11.42 Thailand 2.81 4.46 4.66 5.71 Ireland - 5.58 7.44 6.81 Collective Investment Schemes 8.39 - - - Total investments 99.54 98.61 97.31 99.36 Cash 0.30 1.89 1.95 0.16 Other net assets/(liabilities) 0.16 (0.50) 0.74 0.48 Total net assets 100.00 100.00 100.00 100.00

*Movement in portfolio holdings have been analysed above based on a % of NAV invested in each geographic location. The movement in each country’s position between years has to be inferred.

103 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring Asia Growth Fund (continued)

Portfolio information

Top Ten % of NAV Baring India Fund 4.89 Samsung Electronics 4.71 Taiwan Semiconductor Manufacturing 4.39 AIA 4.14 Haitong Securities 3.53 Baring China A-Share Fund 3.50 China Pacific Insurance 3.30 SK Hynix 3.02 Catcher Technology 3.01 Largan Precision 2.99

104 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring Australia Fund

Highest issue and lowest redemption prices

Highest issue prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 132.9 136.13 133.94 139.08 120.15 147.21 155.07 118.23 93.74 77.32 Class A AUD Inc 140.45 131.58 123.45 131.36 128.87 - - - - - Class A EUR Inc 100.72 104.12 93.17 95.87 88.75 94.35 107.51 86.91 75.53 58.27 Class A GBP Inc 85.37 90.02 82.06 84.76 77.96 - - - - - Class I GBP Acc 87.13 ------

Lowest redemption prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 108.12 100.20 96.63 86.36 67.04 51.60 96.69 81.36 66.79 50.81 Class A AUD Inc 117.26 102.18 102.00 105.21 112.27 - - - - - Class A EUR Inc 82.48 80.17 73.29 70.52 50.01 40.88 71.90 64.64 52.84 42.50 Class A GBP Inc 69.46 64.33 62.83 58.36 62.06 - - - - - Class I GBP Acc 71.08 ------

*The above highest issue prices and lowest redemption prices during the year are quoted in their respective unit classes’ denomination currency.

105 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring Australia Fund (continued)

Statement of movements in portfolio holdings

30/04/2014 30/04/2013 30/04/2012 30/04/2011 % of NAV* % of NAV* % of NAV* % of NAV* Consumer Discretionary 6.22 4.93 5.06 1.50 Consumer Staples 7.86 9.04 7.53 10.28 Energy 5.63 5.48 7.88 11.04 Financials 46.01 45.77 29.56 30.89 Healthcare 4.82 5.27 3.93 3.23 Industrials 5.50 5.22 7.40 2.85 Information Technology 0.66 - 0.71 1.55 Materials 19.76 18.85 33.20 37.93 Telecommunications 3.17 3.46 2.30 - Utilities - 1.61 - - Collective Investment Schemes 0.16 0.23 - - Total investments 99.79 99.86 97.57 99.27 Cash/(bank overdraft) 0.06 (0.25) 0.15 2.41 Other net assets/(liabilities) 0.15 0.39 2.28 (1.68) Total net assets 100.00 100.00 100.00 100.00

* Movement in portfolio holdings have been analysed above based on a % of NAV invested in each industry sector. The movement in each sector’s position between years has to be inferred.

Portfolio information

Top Ten % of NAV Australia & New Zealand Banking 9.60 Westpac Banking 9.49 Commonwealth Bank of Australia 9.40 BHP Billiton 9.14 National Australia Bank 4.91 Wesfarmers 4.62 CSL 4.03 Rio Tinto 3.13 Woolworths 3.00 Macquarie 2.44

106 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring Europa Fund

Highest issue and lowest redemption prices

Highest issue prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 55.73 45.53 48.38 48.98 42.88 59.83 63.81 59.83 45.68 34.77 Class A EUR Inc 40.40 34.03 33.10 34.05 31.19 38.41 45.01 43.94 36.87 26.03 Class C EUR Inc 39.41 33.34 32.71 33.45 30.77 39.63 38.20 - - - Class C USD Inc 54.45 44.74 47.90 48.11 42.47 60.83 58.94 - - - Class A RMB Hedged Acc ------

Lowest redemption prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 41.87 33.06 31.35 31.75 29.60 22.13 48.95 39.58 31.47 26.97 Class A EUR Inc 31.94 26.82 23.35 26.03 22.06 17.59 33.58 31.45 24.76 22.10 Class C EUR Inc 31.37 26.48 22.98 25.76 22.16 17.78 34.09 - - - Class C USD Inc 41.20 32.70 30.91 31.47 29.53 22.36 51.52 - - - Class A RMB Hedged Acc ------

*The above highest issue prices and lowest redemption prices during the year are quoted in their respective unit classes’ denomination currency.

Statement of movements in portfolio holdings

30/04/2014 30/04/2013 30/04/2012 30/04/2011 % of NAV* % of NAV* % of NAV* % of NAV* Consumer Discretionary 9.75 10.86 9.48 8.65 Consumer Staples 4.32 10.48 10.99 9.19 Energy 8.49 9.01 11.92 11.33 Financials 32.39 26.28 22.56 23.39 Healthcare 11.28 12.10 11.56 9.70 Industrials 13.97 11.67 10.49 9.56 Information Technology 3.03 3.36 1.49 4.70 Materials 5.28 5.89 9.44 10.39 Telecommunication Services 7.59 6.77 6.84 6.18 Utilities 3.76 3.56 4.59 5.93 Collective Investment Schemes - 0.19 0.20 - Total investments 99.86 100.17 99.56 99.02 (Bank overdraft)/cash (0.20) 0.21 0.30 1.10 Other net assets/(liabilities) 0.34 (0.38) 0.14 (0.12) Total net assets 100.00 100.00 100.00 100.00

*Movement in portfolio holdings have been analysed above based on a % of NAV invested in each industry sector. The movement in each sector’s position between years has to be inferred.

107 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring Europa Fund (continued)

Portfolio information

Top Ten % of NAV Bayer 2.89 Nestle 2.76 Sanofi 2.40 Novo Nordisk 2.35 Xstrata 2.35 Vodafone 2.33 Barclays 2.32 Shire 2.30 Tullow Oil 2.29 Airbus 2.19

108 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring Hong Kong China Fund

Highest issue and lowest redemption prices

Highest issue prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 908.67 865.76 975.74 999.87 927.44 982.15 1,431.80 771.91 504.69 325.78 Class A EUR Inc 671.37 657.81 676.07 727.94 682.83 632.93 994.82 569.97 409.45 246.58 Class A GBP Inc 557.06 560.48 595.12 616.85 601.24 - - - - - Class A HKD Inc 7,044.26 6,712.29 7,580.03 7,768.70 ------Class A USD Acc 914.09 865.87 825.44 ------Class C EUR Inc 645.51 634.55 663.11 716.32 676.34 633.48 682.50 - - - Class C USD Inc 867.81 829.15 950.79 974.58 915.58 981.10 1,004.87 - - - Class I GBP Inc 509.71 ------Class A RMB Hedged Acc 5311.09 ------

Lowest redemption prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 705.93 695.05 645.35 753.18 615.61 427.81 756.72 399.83 302.88 228.38 Class A EUR Inc 537.71 553.96 487.38 603.60 462.52 340.59 491.08 318.01 239.80 190.00 Class A GBP Inc 457.00 437.12 419.67 517.90 498.91 - - - - - Class A HKD Inc 5,475.19 5,391.38 5,024.06 6,423.17 ------Class A USD Acc 710.14 695.14 782.28 ------Class C EUR Inc 519.26 536.15 476.10 597.32 461.06 341.13 497.39 - - - Class C USD Inc 677.15 668.20 626.18 740.83 611.57 426.16 767.67 - - - Class I GBP Inc 476.25 ------Class A RMB Hedged Acc 4971.59 ------

*The above highest issue prices and lowest redemption prices during the year are quoted in their respective unit classes’ denomination currency.

109 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring Hong Kong China Fund (continued)

Statement of movements in portfolio holdings

30/04/2014 30/04/2013 30/04/2012 30/04/2011 % of NAV* % of NAV* % of NAV* % of NAV* Consumer Discretionary 11.80 10.34 6.26 5.87 Consumer Staples 1.54 1.10 1.52 3.56 Energy 8.72 10.15 12.53 15.30 Financials 31.39 45.54 31.18 31.97 HealthCare 5.20 5.32 2.29 2.49 Industrials 10.26 5.52 7.61 10.45 Information Technology 14.54 12.48 13.69 14.91 Materials 2.74 2.47 10.41 1.74 Telecommunications Services 8.97 5.76 8.45 10.97 Utilities 3.82 - 1.28 - Collective Investment Schemes 1.88 1.61 5.03 1.20 Futures - - 0.02 0.01 Total investments 100.86 100.29 100.27 98.47 Cash/(bank overdraft) 0.05 (0.13) (0.18) 1.81 Other net liabilities (0.91) (0.16) (0.09) (0.28) Total net assets 100.00 100.00 100.00 100.00

*Movement in portfolio holdings have been analysed above based on a % of NAV invested in each industry sector. The movement in each industry sector position between years has to be inferred.

Portfolio information

Top Ten % of NAV Tencent holdings 5.31 Industrial & Commercial Bank of China 4.91 China Construction Bank 4.60 China Petroleum & Chemical 4.56 China Mobile 4.35 China Life Insurance 3.67 China Unicom Hong Kong 3.58 Ping An Insurance 2.75 China Merchants Bank 2.51 Lenovo 2.36

110 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring International Bond Fund

Highest issue and lowest redemption prices

Highest issue prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 28.02 28.77 29.25 28.64 27.36 26.06 27.14 24.38 24.92 25.42 Class A EUR Inc 21.35 23.11 21.74 21.29 19.64 18.71 17.53 18.73 19.88 19.31 Class A GBP Inc 18.07 18.47 18.33 18.01 17.53 17.61 13.63 12.81 13.61 13.47 Class I GBP Inc 18.10 18.46 ------Class I USD Acc 27.67 ------

Lowest redemption prices during the year*

30/04/2014 30/04/2013 30/04/2012 30/04/2011 30/04/2010 30/04/2009 30/04/2008 30/04/2007 30/04/2006 30/04/2005 Class A USD Inc 26.11 27.31 27.21 24.78 23.10 22.37 21.78 22.77 22.45 22.15 Class A EUR Inc 19.31 20.54 19.05 19.05 16.80 15.87 16.27 17.35 18.64 18.56 Class A GBP Inc 16.06 17.14 17.09 16.78 14.33 12.51 10.99 11.53 12.82 12.45 Class I GBP Inc 16.09 17.35 ------Class I USD Acc 26.80 ------

*The above highest issue prices and lowest redemption prices during the year are quoted in their respective unit classes’ denomination currency.

Statement of movements in portfolio holdings

30/04/2014 30/04/2013 30/04/2012 30/04/2011 % of NAV* % of NAV* % of NAV* % of NAV* Australian dollar 6.38 6.69 15.13 17.30 Canadian dollar - 4.03 4.54 4.15 Euro 34.58 28.41 14.11 24.83 Hong Kong dollar - - 2.27 - Japanese yen 13.71 11.50 12.48 6.79 Mexican peso 9.46 16.75 15.00 12.66 Norwegian krone 2.62 2.60 3.01 5.39 Polish zloty 7.50 10.36 9.86 11.09 Pound sterling 5.71 1.94 - 3.99 South African rand 3.00 2.30 0.89 - Swedish krona 2.28 2.88 7.90 - United States dollar 12.59 9.15 10.28 11.98 Collective Investment Schemes 0.58 0.41 2.01 - Forwards (0.14) (0.22) (0.08) (1.93) Futures (0.02) - - - Total investments 98.25 96.80 97.40 96.25 Cash 0.55 0.53 0.34 1.59 Other net assets 1.20 2.67 2.26 2.16 Total net assets 100.00 100.00 100.00 100.00

*Movements in portfolio holdings have been analysed above based on a % of NAV invested in each currency. The movement in each currency position between years has to be inferred.

111 Baring International Umbrella Fund Appendix 1

Appendix 1- additional information Hong Kong code (continued)

Baring International Bond Fund (continued)

Portfolio information

Top Ten % of NAV Japan (Govt of) 1.70% 20/12/2031 9.23 Italy (Republic of) 3.50% 01/06/2018 4.53 Poland (Republic of) 2.50% 25/07/2018 4.52 Queensland Treasury 6.00% 14/09/2017 4.04 Germany (Federal Republic) 0.50% 23/2/2018 3.96 US Treasury Bond 1.375% 31/07/2018 3.79 Spain (Kingdom of) 3.75% 31/10/2018 3.60 Japan (Govt of) 1.90% 20/06/2025 3.55 Mexican Bonos 7.25% 15/12/2016 3.50 Italy (Republic of) 3.75% 01/08/2016 3.49

112 Baring International Umbrella Fund Appendix 2

Appendix 2- significant portfolio movements

Baring ASEAN Frontiers Fund

Purchases Cost Sales Proceeds US$'000 US$'000 Northern Trust Global Funds - US Dollar Fund 344,721 Northern Trust Global Funds - US Dollar Fund 328,896 Keppel 16,572 Sime Darby 15,650 Singapore Telecommunications 16,192 Tenaga Nasional 13,259 Tenaga Nasional 15,317 Semen Gresik Persero 12,946 Astra International 13,496 Keppel 12,199 Telekomunikasi Indonesia 13,460 Astra International 11,230 Genting 13,408 Indofood Sukses Makmur 10,645 Oversea-Chinese Banking 13,156 CIMB Group Holdings 10,518 CIMB Group Holdings 13,055 PTT Exploration & Production PCL 9,777 Bank Negara Indonesia Persero 12,950 DiGi.Com 8,565 DBS Group Holdings 11,805 Bank Negara Indonesia Persero 8,309 Siam Commercial Bank PCL 11,078 Perusahaan Gas Negara 8,269 PTT Exploration & Production PCL 10,732 Axiata Group 7,954 Sime Darby 10,192 Bank Rakyat Indonesia Persero 7,761 Public Bank 10,167 Overseas Union Enterprise 7,708 Golden Agri-Resources 9,935 Malayan Banking 7,667 Perusahaan Gas Negara 9,721 Top Glove 7,615 United Overseas Bank 8,497 DBS Group Holdings 7,410 Thai Beverage 8,273 Thai Beverage 7,135 Indofood Sukses Makmur 8,017 Gudang Garam 7,067

113 Baring International Umbrella Fund Appendix 2

Appendix 2- significant portfolio movements (continued)

Baring Asia Growth Fund

Purchases Cost Sales Proceeds US$'000 US$'000 Northern Trust Global Funds - US Dollar Fund 24,155 012338WNorthern Trust Global Funds - US Dollar Fund 24,155 Ping an Insurance Group of China 3,403 Samsung Electronics 5,517 Largan Precision 3,095 609269WPing an Insurance Group of China 4,057 Samsung Electronics 2,992 617469WIndustrial & Commercial Bank of China 3,760 China Pacific Insurance 2,909 SK Hynix 3,432 Haitong Securities 2,808 Hyundai Mobis 2,506 SK Hynix 2,548 China Mobile 2,396 Catcher Technology 2,514 612178WOversea-Chinese Banking 2,381 Hutchison Whampoa 2,386 615919WShimao Property 2,329 Hyundai Motor 2,367 Cheung Kong Infrastructure 2,323 CNOOC 2,304 608820UChina National Offshore Oil Corporation 2,279 Singapore Telecommunications 2,297 605568WLargan Precision 2,265 CSPC Pharmaceutical 2,206 607689WRadiant Opto-Electronics 2,149 Melco International Development 2,037 Samsung Heavy Industries 2,086 Krung Thai Bank 1,984 602469XSK Telecom 2,065 Radiant Opto-Electronics 1,975 1A1NEAWTencent Holdings 2,013 Hengan International 1,956 Sun Hung Kai Properties 1,841 BHP Billiton 1,913 BHP Billiton 1,802 KB Financial 1,769 Taiwan Semiconductor Manufacturing 1,787 Lenovo 1,712 LG Corporation 1,764

114 Baring International Umbrella Fund Appendix 2

Appendix 2- significant portfolio movements (continued)

Baring Australia Fund

Purchases Cost Sales Proceeds US$'000 US$'000 Northern Trust Global Funds - US Dollar Fund 28,214 Northern Trust Global Funds - US Dollar Fund 28,479 Northern Trust Global Funds - Euro Fund 5,306 Northern Trust Global Funds - Euro Fund 5,223 Australia & New Zealand Banking 3,458 Westpac Banking 3,177 Woolworths 2,936 Twenty-First 3,137 Origin Energy 2,919 Commonwealth Bank of Australia 3,111 Macquarie 2,528 BHP Billiton 3,007 Aurizon 2,181 Woodside Petroleum 2,808 Twenty-First 2,164 News Corporation 2,679 AMP 1,889 Ramsay Health Care 2,535 Iluka Resources 1,598 Rio Tinto 2,486 Fortescue Metals 1,497 APA 2,334 BHP Billiton 1,355 Santos 2,260 QBE Insurance 1,342 AMP 2,063 Seek 1,330 Treasury Wine Estates 2,023 Crown 1,320 QBE Insurance 1,994 Mighty River Power 1,269 Woolworths 1,951 Tabcorp 1,265 Insurance Australia 1,940 REA 1,252 Goodman 1,707 Flight Centre Travel 1,179 Telstra 1,693 ResMed Receipt 1,110 Westfield 1,655

115 Baring International Umbrella Fund Appendix 2

Appendix 2- significant portfolio movements (continued)

Baring Europa Fund

Purchases Cost Sales Proceeds US$'000 US$'000 Northern Trust Global Funds - Euro Fund 47,601 5A2ATAU Northern Trust Global Funds - Euro Fund 47,830 Vodafone 4,094 683466W Fresenius 2,216 Alpha Bank 2,782 008829W ICAP 1,546 Sanofi 2,613 668392W Danone 1,538 Banco Bilbao Vizcaya Argentaria 2,579 89560 Verizon Communications 1,522 Zurich Insurance 2,541 402832X LVMH Moet Hennessy Louis Vuitton 1,494 Phoenix 2,472 301021U William Hill 1,410 Assicurazioni Generali 2,389 002407X Standard Chartered 1,380 Royal Mail 2,341 400972S Pernod-Ricard 1,328 Cembra Money Bank 2,318 7A4DAFW Invensys 1,313 Tullow Oil 2,199 501197S Muenchener Rueckversicherungs 1,220 Basilea Pharmaceutica 2,084 1A4NYJU Royal Mail 1,189 Aker Solutions 2,081 729101 ST Modwen Properties 1,165 Airbus 2,029 511894U TeliaSonera 979 Fomento de Construcciones y Contratas 2,016 0A14P1W Nestle 953 GAM 1,997 651043W Aker Solutions 928 Nestle 1,995 012338W Northern Trust Global Funds - US Dollar Fund 881 Close Brothers 1,982 009862U C&C Group 751 Skanska 1,972 5A5616U BUWOG 617 Koninklijke 1,960 0A51L7W Vodafone 594

116 Baring International Umbrella Fund Appendix 2

Appendix 2- significant portfolio movements (continued)

Baring Hong Kong China Fund

Purchases Cost Sales Proceeds US$'000 US$'000 Northern Trust Global Funds - US Dollar Fund 1,025,342,000 Northern Trust Global Funds - US Dollar Fund 1,010,085,000 China Petroleum & Chemical 106,720,201 Tencent Holdings 167,154,741 China Life Insurance 90,126,349 Industrial & Commercial Bank of China 132,458,892 China Unicom Hong Kong 74,554,822 CNOOC 128,694,398 HSBC Holdings 57,978,778 Bank of China 105,662,662 China Telecom 55,506,196 China Mobile 90,160,788 China Minsheng Banking 54,926,165 China Minsheng Banking 84,894,701 China Merchants Bank 51,021,097 China Pacific Insurance 65,964,247 Agricultural Bank of China 49,648,382 China Petroleum & Chemical 65,465,349 China Cinda Asset Management 49,236,946 China Construction Bank 64,017,253 Tencent Holdings 49,193,077 AIA 63,442,977 Galaxy Entertainment 48,751,791 SINA 62,738,635 China Mobile 46,684,574 AAC Technologies Holdings 59,859,902 SINA 46,550,560 HSBC Holdings 57,047,761 Hutchison Whampoa 43,972,233 China Overseas Land & Investment 56,215,245 Baidu 40,879,364 Hengan International Group 55,454,999 Huaneng Power International 40,542,597 Sinopharm group 52,502,158 Ping An Insurance 40,101,128 BOC Hong Kong 51,218,531 CNOOC 39,289,255 Ping An Insurance 49,340,429 Guangzhou Baiyunshan Pharmaceutical 33,990,417 Sino Biopharmaceutical 49,330,167

117 Baring International Umbrella Fund Appendix 2

Appendix 2- significant portfolio movements (continued)

Baring International Bond Fund

Purchases Cost Sales Proceeds US$'000 US$'000 Northern Trust Global Funds - US Dollar Fund 24,541 Northern Trust Global Funds - US Dollar Fund 24,489 Poland (Republic of) 2.50% 25/07/2018 9,899 Poland (Republic of) 4.75% 25/10/2016 9,564 Northern Trust Global Funds - Euro Fund 7,666 Italy (Republic of) 4.75% 01/08/2023 9,519 Italy (Republic of) 2.25% 15/05/2016 6,649 Mexican Bonos 8.00% 19/12/2013 8,831 Italy (Republic of) 3.75% 01/08/2016 6,190 Northern Trust Global Funds - Euro Fund 7,428 Italy (Republic of) 3.50% 01/06/2018 5,613 Italy (Republic of) 3.00% 01/11/2015 6,661 United States Treasury Bond 1.375% 31/07/2018 5,025 Italy (Republic of) 2.25% 15/05/2016 6,587 Northern Trust Global Funds - Sterling Fund 4,541 Mexican Bonos 6.50% 10/06/2021 5,865 Germany (Federal Republic) 0.50% 23/02/2018 4,086 Poland (Republic of) 2.50% 25/07/2018 5,329 Mexican Bonos 5.00% 15/06/2017 4,029 Austria (Republic of) 3.50% 15/09/2021 5,279 Italy (Republic of) 4.75% 01/08/2023 3,811 Northern Trust Global Funds - Sterling Fund 4,818 Japan (Govt of) 1.90% 20/06/2025 3,753 Japan (Govt of) 1.10% 20/12/2021 3,897 Poland (Republic of) 0.00% 25/01/2016 3,659 Spain (Kingdom of) 4.25% 31/10/2016 3,636 Spain (Kingdom of) 3.75% 31/10/2018 3,621 Poland (Republic of) 4.00% 25/10/2023 3,555 Spain (Kingdom of) 5.50% 30/07/2017 3,107 Mexican Bonos 7.25% 15/12/2016 3,363 South Africa (Republic of) 7.00% 28/02/2031 3,079 Austria (Republic of) 3.20% 20/02/2017 2,969 Mexican Bonos 10.00% 05/12/2024 3,040 Ontario (Province of) 3.15% 08/09/2015 2,952 Austria (Republic of) 3.20% 20/02/2017 2,912 Austria (Republic of) 3.40% 22/11/2022 2,919 United Kingdom (Govt of) 3.25% 22/01/2044 2,898 Italy (Republic of) 3.75% 01/08/2016 2,816 Germany (Federal Republic) 2.00% 15/08/2023 2,859 Ireland (Republic of) 4.00% 15/01/2014 2,651

118

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