HC KB Capital Growth Fund 31 December 2014

Investment objective Fund details To provide a return in the form of capital appreciation over the long term through a portfolio of international equity based securities, collective investment schemes, bonds, Benchmark cash and money market instruments. Morningstar Europe OE GBP Aggressive Allocation

Market commentary Base currency For the month of December, the Fund returned -0.8% (net), while the FTSE UK All-Share Sterling Index returned -1.6% (gross) and the FTSE Government All-Stocks Index returned Fund size as at 31 December 2014 +1.8% (gross). 84.1 million Financial markets remained volatile in December; however falling yields helped to offset mixed performance from equities. Within equities, Continental Europe and emerging Price listing markets have been distinct laggards in GBP terms whilst the US continued posting FT positive results helped in part by a strengthening dollar. At the security level, Ashtead Bloomberg ticker performed particularly well over the month returning +9.3% and was amongst the top Income units – CFKBCAI LN contributors. Conversely, significantly lagged but we remain Accumulation units – CFKBCAA LN positive on the name. Domicile Over the month, we have been topping up our UK exposure. UK markets have lagged UK most other regions in 2014 but we remain constructive on the region. Centrica, Coca- Cola HBC (one of the bottlers in the Coca-Cola system) and Sky were amongst the Minimum initial investment names added. We believe that these are quality businesses selling at discounted prices. £50,000 Within fixed income positions, the -linked credit was the only detractor from Minimum subsequent investment performance over the month. The company remained under pressure and rumours of a £500 downgrade pushed spreads higher. Launch date Real estate and infrastructure provided strong performance in December. High-yielding 27 July 1998 infrastructure (via the GCP Infrastructure fund) and commercial property (via the F&C commercial property trust) were especially strong. Reiterating our views last month, the Pricing frequency strong performance over the past year in these areas leaves us cautious going forward. Daily Net yield (historic) Top ten holdings 1.2%

% of fund Structure FCA-approved UCITS scheme UBS Warrants S & P 500 5.3% Dividend distribution dates 2.6% 30 June British American Tobacco 2.5% Wrappers Prudential Ord 2.5% ISA, SIPP Ord 2.1% Investment Manager Centrica PLC 2.1% Kleinwort Benson Bank Limited Croda International PLC 2.0% Authorised Corporate Director 2.0% Host Capital Limited Ord 2.0% Auditor PLC Ord 1.9% Grant Thornton

Single year performance (5 years ending December) – Percentage growth

Dec 09 – Dec 10 Dec 10 – Dec 11 Dec 11 – Dec 12 Dec 12 – Dec 13 Dec 13 – Dec 14

13.05 -4.18 7.89 13.27 -0.58

Source for all data: Kleinwort Benson. Calculation basis: Mid to mid, total return. All returns in GBP unless stated otherwise. Performance table (%) 2006 2007 2008 2009 2010 2011 2012 2013 2014 CF KB Capital Growth Fund 10.9 10.3 -29.6 26.3 13.0 -4.2 7.9 13.3 -0.6 Morningstar Europe OE GBP Aggressive Allocation 8.8 3.3 -20.7 19.2 11.9 -5.8 10.5 14.8 5.2 Figures are as at 31 December, except 2014 – Year to Date

Asset allocation Fees and charges

Capital Growth Fund

Initial charge* 5.00%

Performance fee 0.00%

Ongoing charges figure** 1.73%

Exit Penalty 0.00%

* May be waived for clients of Kleinwort Benson. Equities 79% Commodities 0% ** This includes fund administration charges. The annual management fee is reduced to 0.98% for the Institutional Fixed Interest 13% Cash 3% share class when assets of over GBP 5 million are in Alternative Strategies 1% Property 4% Kleinwort Benson managed funds

Source for all data: Kleinwort Benson. Calculation basis: Mid to mid, total return. All returns in GBP unless stated otherwise. General risk information The information in this publication is provided for information purposes only and does not take into account the investment objective, the financial situation or the individual needs of any particular person. It is not an offer to buy or sell any particular security or investment. This publication does not constitute advice. All potential investors should seek and obtain advice specific to their circumstances from a qualified financial adviser before making investment decisions. The value of investments, and the income from them, may fall as well as rise and the investor may not get back the amount initially invested. Past performance is not a reliable indicator of future results. Fluctuations in exchange rates may cause the value of investments denominated in currencies other than sterling to fall or rise. The effects of charges and an investor’s personal tax circumstances may reduce any returns. Tax treatment depends on an investor’s individual circumstances and may be subject to change. Kleinwort Benson does not provide tax advice. Investors should seek and obtain tax advice specific to their circumstances from a qualified tax professional. Regulatory information This publication is a financial promotion. It has been approved and issued in the by Kleinwort Benson Bank Limited. Kleinwort Benson is the brand name of Kleinwort Benson Bank Limited. Kleinwort Benson is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, reference number 119269 and is a member of the . Kleinwort Benson is a company incorporated in England and Wales with company number 2056420. Kleinwort Benson is the brand name of Kleinwort Benson (Channel Islands) Investment Management Limited which is a company incorporated in Guernsey with company number 59377. Registered Office Dorey Court Admiral Park St Peter Port Guernsey GY1 2HT. It is regulated by the Guernsey Financial Services Commission for the conduct of investment business. Telephone calls may be recorded. Kleinwort Benson is the brand name for Kleinwort Benson (Channel Islands) Limited which is a company incorporated in Guernsey with company number 52103. It is regulated by the Guernsey Financial Services Commission for Banking and Investment Services. Kleinwort Benson is also authorised and regulated by the United Kingdom (‘UK’) Financial Conduct Authority (‘FCA’) in respect of UK regulated mortgage business and its FCA firm reference number is 310344; registered office, Dorey Court, Admiral Park, St Peter Port, Guernsey GY1 2HT. Telephone number +44 (0) 1481 727111. Telephone calls may be recorded. Please note Guernsey is not part of the UK and when you conduct business with Kleinwort Benson outside the UK you will not be eligible for: (a) the protections provided under the UK’s Financial Services and Markets Act 2000 other than protections relating specifically to UK regulated mortgage business; or (b) referring complaints to the UK’s Financial Ombudsman Service. However Kleinwort Benson’s UK regulated mortgage business is covered under the UK’s Financial Services Compensation Scheme (‘FSCS’). You may be entitled to compensation from the FSCS if Kleinwort Benson cannot meet its obligations in relation to UK regulated mortgage business. This depends on the circumstances of the claim. Further information about the FSCS is available on the FSCS website www.fscs.org.uk or on request from FSCS, 10th Floor, Beaufort House, 15 Botolph Street, London EC3A 7QU. Telephone 020 7741 4100 or Freephone 0800 678 1100. Kleinwort Benson places all client deposits with a spread of approved counterparties and other parts of the Kleinwort Benson Group (the ‘Group’). As such their financial standing is linked to that of the Group. Depositors should form their own view of the financial standing of Kleinwort Benson and the Group based upon publicly available information. Kleinwort Benson is a participant in the Guernsey Banking Deposit Compensation Scheme (the ‘Scheme’). The Scheme offers protection for ‘qualifying deposits’ up to £50,000.00 subject to certain limitations. The maximum total amount of compensation is capped at £100,000,000.00 in any 5 year period. Full details are available on the Scheme’s website www.dcs.gg or on request. Please note deposits with Kleinwort Benson outside the UK are not covered by the UK FSCS. Host Capital is Authorised Corporate Director to the fund, FCA reference number 429093. Host Capital is not part of the Kleinwort Benson Group. Contact details UK enquiries Jersey enquiries Guernsey enquiries +44 (0) 203 207 7400 +44 (0) 1534 613000 +44 (0) 1481 727111 [email protected] [email protected] [email protected]

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