Annual Report and Financial Statements… · labour market and accommodative monetary policy. On the monetary policy front, the ECB indicated that it will hold interest rates steady

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(A UCITS umbrella fund authorised and regulated by the Central Bank of Ireland) MOODY’S Aaa-mf RATED S&P AAAm RATED

Fidelity Institutional Liquidity Fund plc

Annual Report and Financial Statements

For the financial year ended 31 August 2019


Contents

General Information 2

Investment Manager’s Overview 3

Directors’ Report 4

Schedule of Investments 10

Combined Statement of Financial Position 36

Combined Statement of Comprehensive Income 37

Combined Statement of Changes in Net Assets attributable to redeemable participating shareholders 38

Combined Statement of Cash Flows 39

Statement of Financial Position 40

Statement of Comprehensive Income 45

Statement of Changes in Net Assets attributable to redeemable participating shareholders 47

Statement of Cash Flows 53

Notes to the Financial Statements 55

Depositary Report to the Shareholders 69

Independent Auditors’ Report 70

Statement of Changes in Investments (Unaudited) 75

Unaudited Supplementary Information 79

Directory 82

1


General Information

Fidelity Institutional Liquidity Fund plc (the “Company”), is an open ended investment company with variable capital and is authorised and regulated by the Central Bank of Ireland (the “Central Bank”) under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations (the “UCITS Regulations”). The Company is organised in the form of an umbrella fund with segregated liability between sub-funds and as at 31 August 2019 has three active sub-funds, The United States Dollar Fund, The Sterling Fund and The Euro Fund. The United States Dollar Fund commenced trading on 30 November 1995, The Sterling Fund commenced trading on 24 September 1995 and The Euro Fund commenced trading on 20 November 1995 respectively (each a “Fund”, and collectively the “Funds”). The Canadian Dollar Fund commenced trading on 28 August 1998 and was terminated as of 23 August 2018. The regulatory approval of The Canadian Dollar Fund was revoked on 1 February 2019. The Company is recognised in the UK under Sections 264-265 of the Financial Services and Markets Act 2000, as amended. The Company will not be covered by the provisions of the Financial Services Compensation Scheme operated in the UK. Unless otherwise defined or inconsistent with the context herein, capitalised terms used in this document are as used and have the same meanings as are ascribed to them in the Prospectus of the Company. There are three other sub-funds of the Company, namely The Euro VNAV Fund, The Sterling VNAV Fund and The United States Dollar VNAV Fund, each of which have not yet launched.

This report does not constitute an offer of shares. Shares are offered on the basis of the information contained in the current Key Investor Information Documents, the Prospectus and the documents referred to within it. Copies of the current Key Investor Information Documents, the Prospectus, the annual and half yearly reports are available free of charge, from the registered office of the Company.

This material is issued by the Company. The shares of all Funds are listed on Euronext Dublin (formerly the Irish Stock Exchange).

2


Investment Manager’s Overview

Major central banks around the globe have been adopting dovish monetary policies to stay ahead of rising trade tensions, a volatile investment climate and concerns around economic growth. This led to softening in most core yields with new all-time lows for many 10Yr developed market government bond yields. The 2s10s US treasury yield curve inverted for the first time since 2007, prompting investor concerns of recession risk. Macroeconomic indicators remained largely mixed in the US. GDP growth continued to remain healthy but declined to 2.0% in the second quarter of 2019 compared to 2.6% in the fourth quarter of 2018. US-China trade frictions and weakening global economic growth have weighed on the US economy. Within the key components, consumer expenditure rose, while business investment slowed at the end of Q2 2019. US trade tariff policies, which are subject to repeated reversals and an ongoing overhang of higher future tariffs, dented investor sentiment. During the second quarter of 2019, the market witnessed risk-averse selling, following Trump’s threats to raise tariffs on $200 billion worth of Chinese goods from 10% to 25%. The Chinese government retaliated by announcing that it will raise tariffs on US products to up to 25%. Meanwhile, the ISM manufacturing PMI fell to its lowest levels since October 2016 in May, amid a subdued recovery in new orders and as a backlog of orders started to contract for the first time since January 2017. Consequently, the US Federal Reserve (Fed), reduce its interest rates for the first time since 2008 at the end of July, leading to yields on 30-year US Treasuries touching record lows of 1.905%. On the employment front job growth slowed, but unemployment remained low at 3.7%. Weak macroeconomic conditions, uncertainty around Italy’s budget and subdued inflation were the major themes in the eurozone over the last year. Investor risk sentiment took a hit towards the end of September as the Italian budget failed to meet market expectations as the economy tipped into recession at the end of 2018. However, the turn of the year saw a turnaround, as growth was stronger than expected in the first quarter of 2019, driven by resilient domestic demand, which benefitted from a strong labour market and accommodative monetary policy. On the monetary policy front, the ECB indicated that it will hold interest rates steady at least through the end of 2019. It also signalled that its Targeted Long-Term Refinancing Operation (TLTRO) will be extended, which provided some support to the market. The IHS Markit Purchasing Managers’ Index (PMI) reached a seven-month high of 52.1 in June, putting the economy on course for growth of just over 0.2% in the second quarter of 2019. However, the overall rate of expansion remained weak, with uneven growth among manufacturers and service providers. Service providers reported the sharpest rise in business activity since November 2018. In contrast, manufacturing remained weak, rounding off a quarter in which production suffered the sharpest decline in six years. Hitting its lowest level since 2016, inflation in the eurozone fell to 1% in July. Inflation in the 19-nation euro currency area fell by more than one point compared to the same period last year, sliding further from the ECB’s 2% target. The UK economy unexpectedly contracted in the second quarter, driven by destocking following a surge in inventories in the first quarter, and suppressed fixed investment. More positively, private consumption was upbeat, on decade-high wage growth and solid job gains, while strong public spending also cushioned the fall. Although the external sector contributed to growth, this was driven by plunging imports, as exports contracted amid a tougher global trading environment. Political headlines continued to dominate as ex-Prime Minister Theresa May’s attempts to win support for her Brexit plan failed to gain traction among both opposition lawmakers and many in her own party, thus resulting in her resignation in May. The political crisis deepened further as the new prime minister Boris Johnson decided to suspend Britain's parliament in the runup to the Brexit deadline of October 31st. Concerns over a “No Deal” peaked in the last month, however, the situation remains fluid. Whilst not the base case given recent events, if we do see a “No Deal” Brexit we are likely to see a more comprehensive package of both monetary and fiscal loosening, which should support UK government bonds in the short-term.

FIL Investments International

September 2019

3

Fidelity Institutional Liquidity Fund plc Directors’ Report

Statement of Directors’ responsibilities The Directors are responsible for preparing the Directors’ report and the financial statements in accordance with Irish law. Irish law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS”).

Under Irish law, the Directors shall not approve the financial statements unless they are satisfied that they give a true and fair view of the Company’s assets, liabilities and financial position as at the end of the financial year and the profit or loss of the Company for the financial year.

In preparing these financial statements, the Directors are required to: • select suitable accounting policies and then apply them consistently;• make judgements and estimates that are reasonable and prudent;• state whether the financial statements have been prepared in accordance with IFRS and ensure that they contain the

additional information required by the Companies Act 2014 (as amended); and• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will

continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to: • correctly record and explain the transactions of the Company;• enable, at any time, the assets, liabilities, financial position and profit or loss of the Company to be determined with reasonable

accuracy; and• enable the Directors to ensure that the financial statements comply with the Companies Act 2014 (as amended) and enable

those financial statements to be audited.

The Directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Under the UCITS Regulations, the Directors are required to entrust the assets of the Company to a depositary for safe keeping. In carrying out this duty, the Directors have appointed J.P. Morgan Bank (Ireland) plc (the “Depositary”) to act as Depositary pursuant to the terms of the Depositary Agreement.

Accounting Records The measures taken by the Directors to secure compliance with the Company’s obligation to keep adequate accounting records are the use of appropriate systems and procedures and employment of competent persons. The accounting records are kept at 200 Capital Dock, 79 Sir John Rogerson’s Quay, Dublin 2, D02 RK57, Ireland.

Activities Incorporation and investment objective The Company is an open ended investment company with variable capital organised under the laws of Ireland as a public limited company under the Companies Acts 2014 (as amended) and authorised by the Central Bank under the UCITS Regulations. It was incorporated on 29 June 1995 under registration number 235175 and commenced business on 25 September 1995.

On 30 July 1998, the Company’s three active sub-funds were authorised by the Central Bank as Undertakings for Collective Investment in Transferable Securities (“UCITS”) pursuant to the UCITS Regulations. On 18 March 2019, three other sub-funds of the Company, were authorised as UCITS pursuant to the UCITS Regulations, each of which have not yet launched.

The authorisation of the Company is not an endorsement or guarantee of the Company or its performance by the Central Bank. The Company’s three active sub-funds are:

The United States Dollar Fund The Sterling Fund The Euro Fund

The investment objective of each Fund is to invest in a diversified range of short term instruments with the aim of maintaining capital value and liquidity whilst producing a return to the investor in line with money market rates. Each Fund has been authorised by the Central Bank as a low volatility net asset value (“LVNAV”) money market fund (“MMF”) pursuant to the EU Money Market Fund Regulation (EU 2017/1131), (the “MMF Regulation”). Each Fund will invest in a diversified range of short-term instruments, which are specified in the Supplement for the relevant Fund, which are High Quality Money Market Instruments.

4


Directors’ Report

Results and dividends The results and dividends for the year are set out in the Statement of Comprehensive Income.

Review of business and likely future developments FIL Investments International’s (the “Investment Manager”) approach during the past financial year to managing investments in the Company is outlined in the Investment Manager’s Overview. It takes account of market conditions, outlook and investment flows. In the year ahead the Investment Manager does not expect to make any fundamental changes in approach. It is expected that the Company will continue to be marketed in its existing markets and additional markets may also be considered.

Risk management objectives and policies Information on risk management objectives and policies of the Company are included in the Notes to the financial statements. Directors The names of the persons who were Directors of the Company at any time during the financial year ended 31 August 2019 are set out below. Except where indicated below, the Directors served for the full year. Ms. Denise Kinsella* (Ireland) Mr. David Greco (USA) Mr. Nick King (UK) Ms. Éimhín Ní Mhuircheartaigh (Ireland) (Resigned 13 September 2019) Ms. Catherine Fitzsimons (Ireland) All Directors are non-executive. *Independent Director. Significant Events since year end Fidelity has a dedicated project team (the “Brexit Team”) working on the potential implications of the UK’s planned withdrawal from the EU (“Brexit”).The Brexit Team has a dedicated work-stream as part of its overall Brexit program that is focusing specifically on the risk of such implications. Ms. Éimhín Ní Mhuircheartaigh resigned as a Director of the Company effective 13 September 2019. There have been no other significant events since the financial year end that require disclosure in these financial statements. Directors’ Interests No Director or the company secretary had any interests in the share capital of the Company as at 31 August 2019. Code of Ethics All Fidelity International employees are subject to a Code of Ethics which, among other things, sets out procedures for personal account dealing in securities. These procedures, which are rigorously monitored, are designed to ensure that there is no conflict of interest between personal account dealing by staff and the interests of customers. The Code of Ethics requires that deals in securities have to be pre-authorised before an individual may undertake them, and they must afterwards be reported to the Compliance Department. In addition, there are specific provisions to ensure that any investment idea is first acted upon by the funds managed by Fidelity International, and that the investment managers may not deal within a defined period either side of a fund (for which they are responsible) dealing in that security.

5


Directors’ Report

Corporate Governance Statement The Company is subject to and complies with the Companies Act 2014, the UCITS Regulations and the Listing Rules of the Euronext Dublin, as applicable to investment funds, and with the business plan of FIL Fund Management (Ireland) Limited (the "Manager"). Although there is no specific statutory corporate governance code applicable to Irish collective investment schemes whose shares are admitted to trading on Euronext Dublin, the Company is subject to corporate governance practices imposed by: • The Irish Companies Acts 2014 (as amended) which is available for inspection at the registered office of the Company and

may also be obtained at www.irishstatutebook.ie. • The Memorandum and Articles of Association of the Company which are available for inspection at the registered office

of the Company and at the Companies Registration Office in Ireland. • The Central Bank in the UCITS Regulations, the Central Bank UCITS Regulations and guidance applicable to UCITS issued

by the Central Bank from time to time, which can be obtained from the Central Bank’s website at: www.centralbank.ie and are available for inspection at the registered office of the Company.

• Euronext Dublin through the Euronext Dublin Code of Listing Requirements and Procedures, which can be obtained from the website at www.ise.ie.

• The Central Bank’s Fitness and Probity Regime pursuant to the Central Bank Reform Act 2010 and the Central Bank Reform Act 2010 (Sections 20 and 22) Regulations 2011 (as amended).

The Board of Directors has assessed the measures included in the voluntary ‘Corporate Governance Code for Collective Investment Schemes and Management Companies’, as published by the Irish Funds Industry Association in 2011 (the “CGC”). The Board adopted all corporate governance practices and procedures in the CGC.

Financial Reporting Process The Directors are responsible for overseeing the establishment and maintenance of adequate internal control and risk management systems of the Company in relation to the financial reporting process. As the Company has no employees and the Directors serve in a non-executive capacity, all functions including the preparation of the financial statements have been outsourced. The Company has appointed the Manager to manage the day to day running and operation of the Company. The Manager was the Administrator of the Company until 31 August 2018 and provided all of the administration services in respect of the Company in accordance with the regulatory framework applicable to investment companies domiciled in Ireland. The Manager appointed J.P. Morgan Administration Services (Ireland) Limited as (the “Administrator”) of the Company with effect from 1 September 2018. Subject to the supervision of the Directors, the appointment of the Administrator is intended to manage, rather than eliminate, the risk of failure to achieve the Company’s financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The annual and semi-annual financial statements of the Company are required to be approved by the Directors and filed with the Central Bank, Euronext Dublin, and the Companies Registration Office. The statutory financial statements are required to be audited by the Independent Auditors PricewaterhouseCoopers (the “Auditors”) who report annually to the Directors on their findings. The Directors evaluate and discuss significant accounting and reporting issues as the need arises. The financial statements are available for viewing on the Company website at www.Fidelity.ie. This website is maintained by the Manager. The work carried out by the Auditors does not involve consideration of these matters and, accordingly, the Auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

6


Directors’ Report

Risk Assessment The Directors are responsible for assessing the risk of irregularities whether caused by fraud or error in financial reporting and for implementing processes for the timely identification of internal and external matters with a potential effect on financial reporting. The Directors have ultimate responsibility for the Manager’s risk management policy and framework and for reviewing its operation and effectiveness. The Head of Risk and the Risk Management Function of the Manager have responsibility for assisting and facilitating the Board in defining the Manager's risk management policy framework consisting of its risk policy, risk appetite statement, risk register and regular risk reporting to the Board, with the risk management policy approved by the Board. The Head of Risk has responsibility for the oversight of the risks faced by the Company and for monitoring and assessing significant risk events. The Head of Risk and the Risk Function of the Manager also provide the Board and management with appropriate risk management guidance and oversee relevant risk mitigation activities, risk assessments and reviews of risks and required risk mitigation action plans. The Head of Risk and the Risk Management Function maintain a holistic view on the risk profile of the Company, including identifying and assessing emerging risks. Monitoring of Delegated Activities The Board is supported by a senior management team, certain members of which are Designated Persons, holding Pre-Approved Controlled Function (PCF) roles pursuant to the Central Bank’s Fitness and Probity standards, whom on a day to day basis, oversee, monitor and control the relevant managerial functions and the procedures for discharging them. Entities to which services are delegated are subject to the ongoing monitoring by the Company’s appointed Designated Persons, whom oversee and monitor these activities. The Directors receive regular reports from the Depositary, the Administrator, the Investment Manager and the Manager, with quarterly reporting by the Risk Function and Compliance Functions to the Board. The Directors also have an annual process to consider and address any control weaknesses identified and measures recommended by the Independent Auditors, PricewaterhouseCoopers. Capital Structure No person has any special rights of control over the Company’s share capital. There are no restrictions on voting rights on Accumulating Shares issued in each sub-fund. Distributing Shares issue in two Series on each sub-fund. Series 1 Shares issue with full voting rights. Series 2 Shares issue with restricted voting rights in respect of any resolution relating to the appointment, removal or replacement of a Director of the Company. For the appointment and replacement of Directors, the Company is governed by the Memorandum and Articles of Association of the Company, the Companies Act 2014 (as amended) and the listing rules of Euronext Dublin as applicable to investment funds. All appointments to the Board of Directors are approved by the Central Bank. The Memorandum and Articles of Association of the Company may only be amended by Special Resolution of the Shareholders. Composition and Operation of the Board of Directors There are currently four Directors, all of whom are non-executive and one of whom is independent. None of the Directors have entered into an employment or service contract with the Company. All related person transactions during the year are detailed in the notes to the financial statements. The Memorandum and Articles of Association of the Company do not provide for retirement of Directors by rotation. However, the Directors may be removed by the Shareholders by Ordinary Resolution in accordance with the procedures established under the Companies Acts 2014 (as amended). The Board of Directors meet at least quarterly. There are no permanent sub-committees beneath the Directors. The Directors are responsible for managing the business affairs of the Company in accordance with the Memorandum and Articles of Association of the Company. As referred to in the section above entitled ‘Financial Reporting Process’, the Company has appointed the Manager to manage the day to day running and operation of the Company. The Manager has delegated the administration, the investment management and general distribution functions to J.P. Morgan Administration Services (Ireland) Limited, FIL Investments International and FIL Distributors, respectively. The Company has appointed J.P. Morgan Bank (Ireland) plc as the Depositary to the Company with responsibility for the safekeeping of the assets of the Company in accordance with the requirements of the Central Bank.

7


Directors’ Report

Shareholder Meetings All general meetings of the Company shall be held in Ireland. In each year the Company shall hold a general meeting as its annual general meeting. 21 days’ notice (excluding the day of dispatch and the day of the meeting) shall be given in respect of each general meeting of the Company. The notice shall specify the venue and time of the meeting and the business to be transacted at the meeting. A proxy may attend on behalf of any Shareholder. The requirements for quorum and majorities at all general meetings are set out in the Memorandum and Articles of Association. Two members present in person or by proxy shall constitute a quorum, provided that the quorum for a general meeting convened to consider any alteration to the rights attributable to a Class shall be two Shareholders present in person or by proxy together holding at least one third of the issued shares of the relevant Class. An Ordinary Resolution is a resolution passed by a simple majority of votes cast and a Special Resolution is a resolution passed by a majority of 75 per cent or more of the votes cast. The Memorandum and Articles of Association provide that matters may be determined by a meeting of Shareholders on a show of hands unless a poll is requested by five Shareholders or by Shareholders holding not less than 10 per cent of the shares or unless the chairman of the meeting requests a poll. Each Share gives the holder one vote in relation to any matter relating to the Company which is submitted to Shareholders for a vote by poll save that the holders of Series 2 shares are precluded from voting on any resolution in respect of the appointment, removal or replacement of any Director and from exercising any casting vote in relation to any such resolution. Independent Auditors Effective from 1 January 2020, the independent Auditors of the Company will change to Deloitte Ireland LLP. Statement on relevant audit information In the case of each of the persons who are Directors at the time the Financial Statements is approved: a) so far as the Director is aware, there is no relevant audit information of which the Company’s statutory Auditors are unaware,

and b) the Director has taken all steps that ought to have been taken by the Director in order to make himself/herself aware of

any relevant audit information and to establish that the Company’s Auditors are aware of that information. Connected Persons The Manager, the Depositary, the delegates and sub-delegates of the Manager and the Depositary (excluding any non-group company sub-custodians appointed by the Depositary) and any associated or group company of the Manager, the Depositary, or such delegates or sub-delegates are considered to be connected persons of the Fund for the purposes of the Central Bank UCITS Regulations. Dealings with Connected Persons Regulation 41 of the Central Bank UCITS Regulations “Restriction on transactions with connected persons” states that “a responsible person shall ensure that any transaction between a UCITS and connected person is: (i) conducted at arm’s length; and (ii) in the best interest of the unit-holders of the UCITS”.

In accordance with Regulation 78(4) Central Bank UCITS Regulations, the Directors are satisfied that: (i) there are in place arrangements , evidenced by written procedures, to ensure that the obligations that are prescribed by

Regulation 41(1) are applied to all transactions with a connected person; and (ii) all transactions with connected persons that were entered into during the period to which the report relates complied with the

obligations that are prescribed by Regulation 41(1).

8


Directors’ Report

Director’s Compliance Statement The Directors acknowledge that they are responsible for securing the Company’s compliance with its relevant obligations. The Directors confirm that: (i) a compliance policy statement setting out the Company’s policies with regard to complying with the relevant obligations

under the Companies Act 2014 (as amended) has been prepared; (ii) appropriate arrangements and structures have been put in place that they consider sufficient to secure material compliance

with the Company’s relevant obligations; and, (iii) a review of the arrangements and structures has been conducted during the financial year to which this Director’s report

relates. Approved by the Board of Directors and signed on behalf of the Board on 29 November 2019:

Director Director

9


The United States Dollar Fund

Schedule of Investments

As at 31 August 2019

Holding Currency Investments Fair Value USD '000

% of Net Asset Value

LIQUIDITY INSTRUMENTS

Certificates of deposit

Australia 50,000,000 USD Commonwealth Bank of Australia, 2.15%, 13/11/2019 50,008 0.83 75,000,000 USD Commonwealth Bank of Australia, 2.49%, 21/08/2020 74,985 1.25 100,000,000 USD UOB Australia Ltd., 0.00%, 27/09/2019 99,834 1.67 100,000,000 USD UOB Australia Ltd., 0.00%, 30/09/2019 99,819 1.66 50,000,000 USD UOB Australia Ltd., 0.00%, 12/12/2019 49,693 0.83 Total Australia 374,339 6.24

Canada 50,000,000 USD Toronto-Dominion Bank (The), 2.58%, 02/10/2019 50,016 0.83 100,000,000 USD Toronto-Dominion Bank (The), 2.40%, 03/06/2020 99,992 1.67 60,000,000 USD Toronto-Dominion Bank (The), 2.41%, 06/07/2020 59,990 1.00 Total Canada 209,998 3.50

Finland 75,000,000 USD Nordea Bank Abp, 2.38%, 09/12/2019 75,062 1.25 Total Finland 75,062 1.25

Japan 80,000,000 USD Mitsubishi UFJ Trust and Banking Corp., 2.48%, 05/09/2019 80,000 1.34 65,000,000 USD Mitsubishi UFJ Trust and Banking Corp., 2.33%, 08/10/2019 65,002 1.08 50,000,000 USD Mitsubishi UFJ Trust and Banking Corp., 0.00%, 11/10/2019 49,877 0.83 50,000,000 USD Mizuho Bank Ltd., 0.00%, 03/10/2019 49,900 0.83 50,000,000 USD Mizuho Bank Ltd., 0.00%, 15/10/2019 49,867 0.83 80,000,000 USD Mizuho Bank Ltd., 0.00%, 22/10/2019 79,758 1.33 50,000,000 USD Mizuho Bank Ltd., 0.00%, 31/10/2019 49,822 0.83 9,500,000 USD Mizuho Bank Ltd., 0.00%, 15/11/2019 9,458 0.16 30,000,000 USD Mizuho Bank Ltd., 0.00%, 22/11/2019 29,850 0.50 50,000,000 USD MUFG Bank Ltd., 2.18%, 12/11/2019 50,004 0.83 100,000,000 USD Sumitomo Trust and Banking Co. Ltd., 0.00%, 22/11/2019 99,499 1.66 100,000,000 USD Sumitomo Trust and Banking Co. Ltd., 0.00%, 29/11/2019 99,457 1.66 Total Japan 712,494 11.88

Netherlands 50,000,000 USD Cooperatieve Rabobank UA, 0.00%, 27/12/2019 49,663 0.83 100,000,000 USD Cooperatieve Rabobank UA, 2.40%, 04/05/2020 99,986 1.67 Total Netherlands 149,649 2.50

Singapore 45,000,000 USD Oversea-Chinese Banking Corp. Ltd., 2.43%, 09/09/2019 45,001 0.75 Total Singapore 45,001 0.75

10



Schedule of Investments (continued)




LIQUIDITY INSTRUMENTS (continued)

Certificates of deposit (continued)

South Korea 13,000,000 USD Korea Development Bank, 0.00%, 26/11/2019 12,932 0.22 Total South Korea 12,932 0.22

United Kingdom 100,000,000 USD Nationwide Building Society, 2.57%, 03/09/2019 100,000 1.67 30,000,000 USD Nationwide Building Society, 2.34%, 07/10/2019 29,999 0.50 60,000,000 USD Standard Chartered Bank, 0.00%, 15/10/2019 59,843 1.00 125,000,000 USD Standard Chartered Bank, 0.00%, 22/10/2019 124,618 2.08 Total United Kingdom 314,460 5.25

Total investments in certificates of deposit 1,893,935 31.59

Commercial papers

Finland 75,000,000 USD Nordea Bank Abp, 0.00%, 02/01/2020 74,475 1.24 Total Finland 74,475 1.24

France 100,000,000 USD Agence Centrale des Organismes de Securite Sociale, 0.00%, 22/01/2020 99,177 1.65 50,000,000 USD Agence Centrale des Organismes de Securite Sociale, 0.00%, 22/01/2020 49,588 0.83 125,000,000 USD Banque Federative du Credit Mutuel SA, 0.00%, 06/09/2019 124,967 2.08 50,000,000 USD Banque Federative du Credit Mutuel SA, 0.00%, 30/09/2019 49,910 0.83 100,000,000 USD Dexia Credit Local SA, 0.00%, 04/10/2019 99,793 1.67 100,000,000 USD Dexia Credit Local SA, 0.00%, 03/03/2020 98,949 1.65 Total France 522,384 8.71

Germany 78,000,000 USD Allianz SE, 0.00%, 23/10/2019 77,761 1.30 50,000,000 USD Allianz SE, 0.00%, 31/10/2019 49,819 0.83 50,000,000 USD Allianz Selection US Income, 0.00%, 05/11/2019 49,804 0.83 50,000,000 USD DekaBank Deutsche Girozentrale, 0.00%, 27/09/2019 49,917 0.83 100,000,000 USD DekaBank Deutsche Girozentrale, 0.00%, 08/10/2019 99,772 1.66 70,000,000 USD DekaBank Deutsche Girozentrale, 0.00%, 25/10/2019 69,773 1.16 50,000,000 USD DekaBank Deutsche Girozentrale, 0.00%, 31/10/2019 49,821 0.83 15,000,000 USD DekaBank Deutsche Girozentrale, 0.00%, 12/02/2020 14,852 0.25 75,000,000 USD Deutsche Bahn AG, 0.00%, 30/09/2019 74,867 1.25 50,000,000 USD Deutsche Bahn AG, 0.00%, 02/10/2019 49,904 0.83 30,000,000 USD Deutsche Bahn AG, 0.00%, 07/10/2019 29,936 0.50 125,000,000 USD DZ BANK AG Deutsche Zentral-Genossenschaftsbank, 0.00%, 18/10/2019 124,642 2.08 125,000,000 USD DZ BANK AG Deutsche Zentral-Genossenschaftsbank, 0.00%, 01/11/2019 124,536 2.08 150,000,000 USD Landeskreditbank Baden-Wuerttemberg Foerderbank, 0.00%, 02/01/2020 148,931 2.48 50,000,000 USD Landeskreditbank Baden-Wuerttemberg Foerderbank, 0.00%, 10/01/2020 49,623 0.83

11








Commercial papers (continued)

Germany (continued) 40,000,000 USD NRW Bank, 0.00%, 04/10/2019 39,923 0.67 Total Germany 1,103,881 18.41

Japan 85,000,000 USD Sumitomo Mitsui Banking Corp., 0.00%, 03/09/2019 84,994 1.42 Total Japan 84,994 1.42

Luxembourg 15,000,000 USD European Investment Bank, 0.00%, 07/02/2020 14,866 0.25 Total Luxembourg 14,866 0.25

Netherlands 100,000,000 USD BNG Bank NV, 0.00%, 31/01/2020 99,152 1.65 30,000,000 USD JT International Financial Services BV, 0.00%, 28/10/2019 29,903 0.50 19,000,000 USD Schlumberger Finance BV, 0.00%, 12/09/2019 18,988 0.32 70,000,000 USD Schlumberger Finance BV, 0.00%, 17/09/2019 69,932 1.17 20,000,000 USD Schlumberger Finance BV, 0.00%, 02/10/2019 19,961 0.33 80,000,000 USD Schlumberger Finance BV, 0.00%, 08/10/2019 79,817 1.33 Total Netherlands 317,753 5.30

Sweden 50,000,000 USD Swedbank AB, 0.00%, 03/09/2019 49,996 0.84 50,000,000 USD Swedbank AB, 0.00%, 23/09/2019 49,932 0.83 50,000,000 USD Swedbank AB, 0.00%, 25/09/2019 49,926 0.83 50,000,000 USD Swedbank AB, 0.00%, 27/09/2019 49,918 0.83 40,000,000 USD Swedbank AB, 0.00%, 06/01/2020 39,698 0.66 Total Sweden 239,470 3.99

United Kingdom 100,000,000 USD Barclays Bank plc, 2.39%, 11/03/2020 100,022 1.67 110,000,000 USD HSBC UK Bank plc, 0.00%, 17/10/2019 109,696 1.83 100,000,000 USD HSBC UK Bank plc, 0.00%, 18/11/2019 99,524 1.66 50,000,000 USD Standard Chartered Bank, 0.00%, 11/10/2019 49,877 0.83 Total United Kingdom 359,119 5.99

United States 60,000,000 USD Zurich Holding Co. of America, Inc., 0.00%, 09/10/2019 59,855 1.00 Total United States 59,855 1.00

Total investments in commercial papers 2,776,797 46.31

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Time deposits

France 225,000,000 USD BRED Banque Populaire, 2.17%, 03/09/2019 225,000 3.75 Total France 225,000 3.75

Total investments in time deposits 225,000 3.75

Total investments in liquidity instruments 4,895,732 81.65



BONDS

Government debt securities

Austria 112,500,000 USD Austria Treasury Bill, 0.00%, 16/01/2020 111,618 1.86 37,500,000 USD Austria Treasury Bill, 0.00%, 17/01/2020 37,204 0.62 Total Austria 148,822 2.48

Total investments in government debt securities 148,822 2.48

Total investments in bonds 148,822 2.48

Interest Maturity Fair Value % of Net Holding Currency Counterparty Rate Date USD '000 Asset Value

Reverse repurchase agreements

United States

300,000,000 USD Barclays 2.17% 03/09/2019 300,000 5.00 450,000,000 USD Citigroup 2.18% 03/09/2019 450,000 7.50 100,000,000 USD Citigroup 2.15% 03/09/2019 100,000 1.67 Total United States 850,000 14.17

Total investments in reverse repurchase agreements 850,000 14.17

13





Fair Value USD '000


Total financial assets at fair value through profit or loss 5,894,554 98.30 Cash 130,059 2.17 Other assets and liabilities (28,121) (0.47) Net asset value attributable to redeemable participating shareholders 5,996,492 100.00

Analysis of total assets % of Total

Assets Transferable securities admitted to official stock exchange listing 2.47 Transferable securities dealt in on another regulated market 14.10 Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) 81.20 Other assets 2.23 Total assets 100.00

14









Australia 134,000,000 USD Rabobank Australia, 2.30%, 02/11/2018 133,473 2.10 125,000,000 USD United O/S Bank, 2.29%, 04/09/2018 124,976 1.97 Total Australia 258,449 4.07

Belgium 125,000,000 USD KBC Bank, 2.29%, 03/10/2018 124,747 1.97 125,000,000 USD KBC Bank, 2.29%, 06/11/2018 124,478 1.96 Total Belgium 249,225 3.93

France 125,000,000 USD Credit Agricole CIB London, 2.30%, 13/11/2018 124,421 1.96 Total France 124,421 1.96

Japan 125,000,000 USD Mitsubishi UFJ Trust & Bank, 2.33%, 01/10/2018 124,759 1.97 125,000,000 USD Mitsubishi UFJ Trust & Bank, 2.31%, 12/10/2018 124,673 1.96 38,000,000 USD Mizuho Bank London, 2.38%, 10/09/2018 37,978 0.60 61,000,000 USD Mizuho Bank London, 2.33%, 11/10/2018 60,843 0.96 75,000,000 USD Mizuho Bank London, 2.35%, 14/11/2018 74,640 1.18 95,000,000 USD Mizuho Bank Sydney, 2.40%, 04/10/2018 94,792 1.49 100,000,000 USD Sumitomo Mitsui Bank Sydney, 2.31%, 19/09/2018 99,885 1.57 125,000,000 USD Sumitomo Mitsui Trust Bank, 2.34%, 10/10/2018 124,686 1.97 26,000,000 USD Sumitomo Mitsui Trust Bank 2.25% 10/10/2018 25,937 0.41 125,000,000 USD Sumitomo Mitsui Trust Bank, 2.34%, 11/10/2018 124,677 1.96 Total Japan 892,870 14.07

Netherlands 25,000,000 USD Rabobank Nederland Australia, 2.25%, 12/10/2018 24,936 0.39 Total Netherlands 24,936 0.39

Sweden 125,000,000 USD Svenska Hande, 2.36%, 01/03/2019 125,000 1.97 Total Sweden 125,000 1.97

United Kingdom 125,000,000 USD Standard Chartered Bank, 2.29%, 17/10/2018 124,636 1.97 Total United Kingdom 124,636 1.97

Total investments in certificates of deposit 1,799,537 28.36

15








Commercial papers

Australia 125,000,000 USD ANZ, 2.41%, 26/09/2018 124,793 1.97 125,000,000 USD Anznil, 2.40%, 24/09/2018 124,811 1.97 79,000,000 USD Commonwealth Bank of Australia, 2.41%, 01/07/2019 79,000 1.24 178,000,000 USD CSFB Australia, 2.33%, 03/10/2018 177,633 2.80 Total Australia 506,237 7.98

Canada 150,000,000 USD Bank of Montreal, 2.06%, 01/10/2018 149,768 2.36 45,000,000 USD Toronto, 2.30%, 09/11/2018 44,803 0.71 Total Canada 194,571 3.07

France 50,000,000 USD Agence Centrale, 2.11%, 04/09/2018 49,991 0.79 90,000,000 USD Agence Centrale, 2.18%, 19/10/2018 89,739 1.41 125,000,000 USD BFCM Paris, 2.29%, 01/10/2018 124,762 1.97 125,000,000 USD BFCM Paris, 2.31%, 01/11/2018 124,515 1.96 25,000,000 USD Dexia Credit, 2.14%, 05/10/2018 24,950 0.39 125,000,000 USD Dexia Credit, 2.30%, 16/10/2018 124,643 1.96 47,500,000 USD La Banque Postale, 2.20%, 05/10/2018 47,402 0.75 Total France 586,002 9.23

Germany 78,000,000 USD Allianz, 2.31%, 22/10/2018 77,746 1.22 50,000,000 USD Allianz, 2.30%, 02/11/2018 49,803 0.79 39,000,000 USD Allianz, 2.30%, 05/11/2018 38,839 0.61 50,000,000 USD Allianz, 2.44%, 14/01/2019 49,547 0.78 125,000,000 USD Dekabank Deutsche Girozentale, 2.34%, 18/09/2018 124,863 1.97 125,000,000 USD Deutsche Bahn, 2.09%, 04/09/2018 124,978 1.97 200,000,000 USD Deutsche Bahn, 2.14%, 04/10/2018 199,644 3.15 250,000,000 USD DZ Bank, 2.25%, 05/10/2018 249,472 3.93 16,000,000 USD KFW, 2.03%, 04/09/2018 15,997 0.25 150,000,000 USD KFW, 2.35%, 02/01/2019 148,833 2.35 125,000,000 USD Landeskreditbank, 2.35%, 02/01/2019 124,029 1.95 Total Germany 1,203,751 18.97

Luxembourg 100,000,000 USD European Investment Bank, 2.35%, 04/01/2019 99,210 1.56 Total Luxembourg 99,210 1.56

Netherlands 100,000,000 USD ING Bank, 2.31%, 24/09/2018 99,853 1.57 64,000,000 USD JT International, 2.32%, 26/09/2018 63,897 1.01 64,000,000 USD JT International, 2.40%, 30/10/2018 63,750 1.00 344,000,000 USD Netherlands, 2.05%, 17/09/2018 343,686 5.42

16









Netherlands (continued) 125,000,000 USD Rabobank, 2.29%, 04/09/2018 124,976 1.97 20,000,000 USD Schlumberger Finance, 2.27%, 04/09/2018 19,996 0.32 125,000,000 USD Schlumberger Finance, 2.28%, 26/09/2018 124,803 1.97 95,000,000 USD Schlumberger Finance, 2.30%, 03/10/2018 94,807 1.49 20,000,000 USD Schlumberger Finance, 2.08%, 04/10/2018 19,966 0.31 Total Netherlands 955,734 15.06

Singapore 125,000,000 USD DBS Bank, 2.32%, 19/09/2018 124,856 1.97 125,000,000 USD Oversea-Chinese Banking, 2.28%, 02/10/2018 124,755 1.96 Total Singapore 249,611 3.93

South Korea 30,000,000 USD Korea Dev Bank, 2.11%, 12/09/2018 29,981 0.47 Total South Korea 29,981 0.47

United Kingdom 125,000,000 USD Standard Chartered Bank, 2.31%, 01/10/2018 124,761 1.97 Total United Kingdom 124,761 1.97

United States 60,000,000 USD Zurich Holding America, 2.32%, 24/10/2018 59,796 0.94 Total United States 59,796 0.94

Total investments in commercial papers 4,009,654 63.18

Term deposits

France 250,000,000 USD Bred Banque Populaire, 1.97%, 04/09/2018 250,000 3.94 Total France 250,000 3.94

Germany 300,000,000 USD DZ Bank, 1.94%, 04/09/2018 300,000 4.72 Total Germany 300,000 4.72

Total investments in term deposits 550,000 8.66


17







BONDS

Corporate debt securities

Australia 125,000,000 USD National Australia Bank, 2.53%, 22/03/2019 125,000 1.97

Total Australia 125,000 1.97

Total investments in corporate debt securities 125,000 1.97


Interest Maturity Fair Value % of Net Holding Currency Counterparty Rate Date USD '000 Asset Value


United Kingdom

250,000,000 USD Barclays 1.91% 04/09/2018 250,000 3.94 Total United Kingdom 250,000 3.94

United States

250,000,000 USD Citigroup 1.98% 04/09/2018 250,000 3.94 Total United States 250,000 3.94


Fair Value USD '000


Total financial assets at fair value through profit or loss 6,984,191 110.05 Cash 205,489 3.24 Other assets and liabilities (843,570) (13.29) Net asset value attributable to redeemable participating shareholders 6,346,110 100.00



18


The Sterling Fund



Holding Currency Investments Fair Value GBP '000




Canada 26,000,000 GBP Bank of Nova Scotia (The), 0.76%, 15/10/2019 26,001 2.16 21,000,000 GBP Bank of Nova Scotia (The), 0.76%, 15/10/2019 21,001 1.75 20,000,000 GBP Toronto-Dominion Bank (The), 0.85%, 18/09/2019 20,000 1.67 25,000,000 GBP Toronto-Dominion Bank (The), 0.80%, 27/12/2019 24,998 2.08 Total Canada 92,000 7.66

Finland 20,000,000 GBP Nordea Bank Abp, 0.00%, 20/09/2019 19,992 1.67 Total Finland 19,992 1.67

France 25,000,000 GBP Credit Agricole SA, 0.75%, 01/11/2019 24,998 2.08 Total France 24,998 2.08

Japan 20,000,000 GBP MUFG Bank Ltd., 0.77%, 22/10/2019 19,999 1.67 25,000,000 GBP MUFG Bank Ltd., 0.80%, 06/12/2019 24,999 2.08 20,000,000 GBP Sumitomo Mitsui Banking Corp., 0.00%, 07/10/2019 19,984 1.67 25,000,000 GBP Sumitomo Mitsui Trust Bank Ltd., 0.77%, 30/10/2019 24,999 2.08 Total Japan 89,981 7.50

Netherlands 20,000,000 GBP ABN AMRO Bank NV, 0.00%, 03/10/2019 19,986 1.66 25,000,000 GBP ABN AMRO Bank NV, 0.00%, 04/11/2019 24,966 2.08 Total Netherlands 44,952 3.74

Sweden 25,000,000 GBP Handelsbanken plc, 0.94%, 27/09/2019 25,002 2.08 20,000,000 GBP Svenska Handelsbanken AB, 0.79%, 17/02/2020 19,996 1.67 Total Sweden 44,998 3.75

United Kingdom 30,000,000 GBP HSBC Bank plc, 0.91%, 03/11/2019 29,999 2.50 25,000,000 GBP Santander UK plc, 0.75%, 01/11/2019 24,999 2.08 Total United Kingdom 54,998 4.58

United States 25,000,000 GBP Citibank NA, 0.75%, 11/10/2019 25,002 2.08 Total United States 25,002 2.08

Total investments in certificates of deposit 396,921 33.06

19


The Sterling Fund






Commercial papers

Finland 25,000,000 GBP OP Corporate Bank plc, 0.00%, 24/10/2019 24,972 2.08 Total Finland 24,972 2.08

France 30,000,000 GBP Dexia Credit Local SA, 0.82%, 14/10/2019 30,000 2.50 20,000,000 GBP Dexia Credit Local SA, 0.00%, 20/02/2020 19,923 1.66 25,000,000 GBP SNCF Reseau, 0.00%, 16/12/2019 24,954 2.08 Total France 74,877 6.24

Germany 26,000,000 GBP DekaBank Deutsche Girozentrale, 0.00%, 29/10/2019 25,968 2.16 20,000,000 GBP DekaBank Deutsche Girozentrale, 0.00%, 21/02/2020 19,921 1.66 10,000,000 GBP Toyota Kreditbank GmbH, 0.00%, 02/09/2019 10,000 0.83 29,000,000 GBP Toyota Kreditbank GmbH, 0.00%, 19/11/2019 28,998 2.42 Total Germany 84,887 7.07

Netherlands 20,000,000 GBP Cooperatieve Rabobank UA, 0.00%, 02/12/2019 19,961 1.66 10,000,000 GBP Cooperatieve Rabobank UA, 0.00%, 06/12/2019 9,980 0.83 Total Netherlands 29,941 2.49

Singapore 25,000,000 GBP DBS Bank Ltd., 0.00%, 19/09/2019 24,990 2.08 18,000,000 GBP DBS Bank Ltd., 0.00%, 30/09/2019 17,989 1.50 4,500,000 GBP DBS Bank Ltd., 0.00%, 11/10/2019 4,496 0.38 Total Singapore 47,475 3.96

Sweden 15,000,000 GBP Swedbank AB, 0.00%, 09/09/2019 14,998 1.25 35,000,000 GBP Swedbank AB, 0.00%, 27/02/2020 34,858 2.90 Total Sweden 49,856 4.15

United Kingdom 40,000,000 GBP Barclays Bank plc, 0.95%, 09/03/2020 40,002 3.33 15,000,000 GBP HSBC Bank plc, 0.00%, 25/09/2019 14,992 1.25 Total United Kingdom 54,994 4.58

Total investments in commercial papers 367,002 30.57

20


The Sterling Fund






Time deposits

France 90,418,346 GBP BRED Banque Populaire, 0.72%, 02/09/2019 90,418 7.53 Total France 90,418 7.53


Total investments in liquidity instruments 854,341 71.16



BONDS


United Kingdom 20,000,000 GBP UK Treasury Bill, 0.00%, 02/09/2019 20,000 1.67 1,000,000 GBP UK Treasury Bill, 0.00%, 30/09/2019 999 0.08 1,000,000 GBP UK Treasury Bill, 0.00%, 14/10/2019 999 0.09 20,000,000 GBP UK Treasury Bill, 0.00%, 09/12/2019 19,958 1.66 1,000,000 GBP UK Treasury Bill, 0.00%, 23/12/2019 998 0.08 5,892,500 GBP UK Treasury Bill, 0.00%, 06/01/2020 5,877 0.49 20,000,000 GBP UK Treasury Bill, 0.00%, 13/01/2020 19,943 1.66 Total United Kingdom 68,774 5.73



Australia 15,000,000 GBP Commonwealth Bank of Australia, FRN, 0.91%, 29/10/2019 15,000 1.25 20,000,000 GBP Commonwealth Bank of Australia, FRN, 1.02%, 15/11/2019 20,002 1.67 25,000,000 GBP Westpac Banking Corp., FRN, 1.01%, 19/11/2019 25,000 2.08 22,000,000 GBP Westpac Banking Corp., FRN, 0.83%, 06/04/2020 21,993 1.83 Total Australia 81,995 6.83

21


The Sterling Fund





BONDS (continued)

Corporate debt securities (continued)

Netherlands 20,000,000 GBP Cooperatieve Rabobank UA, FRN, 0.88%, 06/03/2020 19,999 1.66 Total Netherlands 19,999 1.66



Interest Maturity Fair Value % of Net Holding Currency Counterparty Rate Date GBP '000 Asset Value


United Kingdom

75,000,000 GBP Barclays 0.73% 02/09/2019 75,000 6.25 100,000,000 GBP BNP Paribas 0.70% 02/09/2019 100,000 8.33 Total United Kingdom 175,000 14.58


Fair Value GBP '000


Total financial assets at fair value through profit or loss 1,200,109 99.96 Cash 96 0.01 Other assets and liabilities 367 0.03 Net asset value attributable to redeemable participating shareholders 1,200,572 100.00



22


The Sterling Fund







Canada 2,000,000 GBP Toronto Dominion Bank, 0.60%, 04/09/2018 2,000 0.19 13,000,000 GBP Toronto Dominion Bank, 0.57%, 14/09/2018 13,001 1.28 Total Canada 15,001 1.47

France 32,000,000 GBP BNP Paribas, 0.60%, 04/09/2018 31,999 3.14 12,000,000 GBP BNP Paribas, 0.83%, 01/11/2018 12,000 1.18 30,000,000 GBP Credit Agricole London, 0.64%, 01/10/2018 30,000 2.95 Total France 73,999 7.27

Japan 25,000,000 GBP Sumitomo Mitsui Banking Brussels, 0.00%, 03/09/2018 24,999 2.46 Total Japan 24,999 2.46

Netherlands 26,000,000 GBP ABN Amro Bank, 0.63%, 01/10/2018 25,987 2.55 20,000,000 GBP ING Bank, 0.80%, 07/11/2018 20,000 1.96 25,000,000 GBP ING Bank, 0.80%, 09/11/2018 25,000 2.46 Total Netherlands 70,987 6.97

Singapore 20,000,000 GBP Oversea-Chinese Banking, 0.58%, 13/09/2018 20,000 1.96 Total Singapore 20,000 1.96

United Kingdom 15,000,000 GBP Honda Finance Europe, 0.62%, 03/09/2018 14,999 1.47 25,000,000 GBP Standard Chartered Bank, 0.60%, 18/09/2018 24,993 2.46 16,500,000 GBP Standard Chartered Bank, 0.60%, 21/09/2018 16,500 1.62 Total United Kingdom 56,492 5.55

United States 30,000,000 GBP Bank Of America London, 0.61%, 06/09/2018 30,000 2.95 22,000,000 GBP Citibank, 0.59%, 10/09/2018 22,000 2.16 25,000,000 GBP Citibank, 0.64%, 02/10/2018 25,000 2.45 Total United States 77,000 7.56


23


The Sterling Fund






Commercial papers

Australia 19,000,000 GBP ANZ, 0.80%, 03/12/2018 18,961 1.86 25,000,000 GBP ANZ, 0.71%, 02/01/2019 24,941 2.45 Total Australia 43,902 4.31

Belgium 25,000,000 GBP Belgium, 0.58%, 27/09/2018 24,990 2.45 Total Belgium 24,990 2.45

Finland 20,000,000 GBP Nordea Bank, 0.55%, 03/09/2018 19,999 1.96 25,000,000 GBP Nordea Bank, 0.82%, 08/01/2019 24,928 2.45 20,000,000 GBP Nordea Bank, 0.84%, 04/03/2019 19,917 1.96 Total Finland 64,844 6.37

France 50,000,000 GBP Agence Centrale, 0.76%, 15/10/2018 49,954 4.91 25,000,000 GBP BFCM Paris, 0.60%, 14/09/2018 24,995 2.46 20,000,000 GBP BFCM Paris, 0.81%, 06/11/2018 19,971 1.96 14,000,000 GBP Credit Agricole CIB London, 0.80%, 13/11/2018 13,977 1.37 Total France 108,897 10.70

Germany 25,000,000 GBP Dekabank Deutsche Girozentale, 0.71%, 07/09/2018 24,997 2.46 25,000,000 GBP DZ Bank, 0.76%, 13/11/2018 24,962 2.45 25,000,000 GBP Landeskreditbank, 0.71%, 02/01/2019 24,941 2.45 Total Germany 74,900 7.36

Singapore 25,000,000 GBP DBS Bank, 0.58%, 07/09/2018 24,998 2.45 20,000,000 GBP DBS Bank, 0.66%, 19/09/2018 19,993 1.96 25,000,000 GBP Oversea-Chinese Banking, 0.54%, 07/09/2018 24,998 2.46 Total Singapore 69,989 6.87

Sweden 25,000,000 GBP Swedbank, 0.61%, 01/10/2018 24,987 2.45 Total Sweden 24,987 2.45

United Kingdom 15,000,000 GBP Honda Finance Europe, 0.84%, 03/12/2018 14,969 1.47 25,000,000 GBP Lloyds Bank, 0.57%, 03/09/2018 24,999 2.46 Total United Kingdom 39,968 3.93


24


The Sterling Fund






Term deposits

France 88,545,940 GBP Bred Banque Populaire, 0.71%, 03/09/2018 88,546 8.70 Total France 88,546 8.70

Germany 50,000,000 GBP DZ Bank, 0.69%, 03/09/2018 50,000 4.91 Total Germany 50,000 4.91

Japan 60,002,301 GBP Mizuho Bank London, 0.70%, 03/09/2018 60,002 5.89 Total Japan 60,002 5.89


Total investments in liquidity instruments 989,503 97.18



BONDS


United Kingdom 23,327,000 GBP UK T-BILL, 0.73%, 11/02/2019 23,251 2.28 25,000,000 GBP UK T-BILL, 0.73%, 04/03/2019 24,910 2.45 Total United Kingdom 48,161 4.73



Australia 20,000,000 GBP CommonWealth Bank, 0.71%, 21/03/2019 20,000 1.96 25,000,000 GBP Westpac Banking Corporation, 0.70%, 20/03/2019 24,999 2.46 Total Australia 44,999 4.42

25


The Sterling Fund





BONDS (continued)

Corporate debt securities (continued)

Canada 20,000,000 GBP Toronto Dominion Bank, 0.67%, 17/12/2018 20,000 1.96 Total Canada 20,000 1.96



Fair Value GBP '000


Total financial assets at fair value through profit or loss 1,102,663 108.29 Other assets and liabilities (84,385) (8.29) Net asset value attributable to redeemable participating shareholders 1,018,278 100.00


Assets Transferable securities admitted to official stock exchange listing 10.26 Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) 89.70 Other assets 0.04 Total assets 100.00

26


The Euro Fund



Holding Currency Investments Fair Value EUR '000




Belgium 50,000,000 EUR KBC Bank NV, 0.00%, 04/10/2019 50,018 2.89 Total Belgium 50,018 2.89

Finland 20,000,000 EUR Nordea Bank Abp, 0.00%, 20/09/2019 20,005 1.16 4,500,000 EUR Nordea Bank Abp, 0.00%, 04/11/2019 4,504 0.26 Total Finland 24,509 1.42

France 25,000,000 EUR BNP Paribas SA, 0.00%, 18/09/2019 25,004 1.44 15,000,000 EUR Credit Agricole SA, 0.00%, 03/09/2019 15,000 0.87 25,000,000 EUR Credit Agricole SA, 0.00%, 01/10/2019 25,009 1.45 25,000,000 EUR Credit Agricole SA, 0.00%, 06/11/2019 25,022 1.45 Total France 90,035 5.21

Japan 25,000,000 EUR Mizuho Bank Ltd., 0.00%, 24/09/2019 25,007 1.45 25,000,000 EUR Sumitomo Mitsui Banking Corp., 0.00%, 08/10/2019 25,011 1.45 25,000,000 EUR Sumitomo Mitsui Trust Bank Ltd., 0.00%, 07/11/2019 25,020 1.45 40,000,000 EUR Sumitomo Mitsui Trust Bank Ltd., 0.00%, 22/11/2019 40,041 2.31 Total Japan 115,079 6.66

Netherlands 30,000,000 EUR ABN AMRO Bank NV, 0.00%, 02/09/2019 30,000 1.74 Total Netherlands 30,000 1.74

United Kingdom 20,000,000 EUR HSBC UK Bank plc, 0.00%, 06/09/2019 20,001 1.16 Total United Kingdom 20,001 1.16

United States 15,000,000 EUR Citibank NA, 0.00%, 05/09/2019 15,000 0.87 25,000,000 EUR Citibank NA, 0.00%, 11/10/2019 25,012 1.44 25,000,000 EUR Citibank NA, 0.00%, 08/11/2019 25,023 1.45 Total United States 65,035 3.76


27


The Euro Fund






Commercial papers

Austria 45,000,000 EUR Oesterreichische Kontrollbank AG, 0.00%, 27/09/2019 45,015 2.60 Total Austria 45,015 2.60

Canada 1,000,000 EUR Toronto-Dominion Bank (The), 0.00%, 31/10/2019 1,001 0.06 Total Canada 1,001 0.06

Finland 20,000,000 EUR Nordea Bank Abp, 0.00%, 01/10/2019 20,007 1.16 5,000,000 EUR Nordea Bank Abp, 0.00%, 17/02/2020 5,011 0.29 25,000,000 EUR OP Corporate Bank plc, 0.00%, 24/10/2019 25,016 1.44 25,000,000 EUR OP Corporate Bank plc, 0.00%, 01/11/2019 25,021 1.45 15,000,000 EUR OP Corporate Bank plc, 0.00%, 06/11/2019 15,013 0.87 Total Finland 90,068 5.21

France 5,000,000 EUR L'Oreal, 0.00%, 05/09/2019 5,000 0.29 10,000,000 EUR L'Oreal, 0.00%, 12/09/2019 10,001 0.58 Total France 15,001 0.87

Germany 2,000,000 EUR Allianz SE, 0.00%, 20/01/2020 2,004 0.11 10,000,000 EUR DekaBank Deutsche Girozentrale, 0.00%, 09/09/2019 10,001 0.58 50,000,000 EUR DekaBank Deutsche Girozentrale, 0.00%, 10/02/2020 50,109 2.90 15,000,000 EUR DekaBank Deutsche Girozentrale, 0.00%, 24/02/2020 15,036 0.87 25,000,000 EUR DZ BANK AG Deutsche Zentral-Genossenschaftsbank, 0.00%, 19/11/2019 25,030 1.45 25,000,000 EUR Linde AG, 0.00%, 25/09/2019 25,007 1.45 15,000,000 EUR Linde AG, 0.00%, 30/09/2019 15,005 0.87 Total Germany 142,192 8.23

Japan 24,500,000 EUR Sumitomo Mitsui Banking Corp., 0.00%, 12/09/2019 24,494 1.42 Total Japan 24,494 1.42

Netherlands 20,000,000 EUR Cooperatieve Rabobank UA, 0.00%, 26/09/2019 20,006 1.15 20,000,000 EUR Cooperatieve Rabobank UA, 0.00%, 02/12/2019 20,028 1.16 20,000,000 EUR Cooperatieve Rabobank UA, 0.00%, 02/12/2019 20,027 1.16 Total Netherlands 60,061 3.47

Singapore 25,000,000 EUR DBS Bank Ltd., 0.00%, 25/09/2019 25,008 1.45 Total Singapore 25,008 1.45

28


The Euro Fund







Sweden 25,000,000 EUR Svenska Handelsbanken AB, 0.00%, 08/01/2020 25,044 1.45 13,000,000 EUR Svenska Handelsbanken AB, 0.00%, 17/01/2020 13,024 0.75 20,000,000 EUR Svenska Handelsbanken AB, 0.00%, 20/02/2020 20,046 1.16 15,000,000 EUR Svenska Handelsbanken AB, 0.00%, 21/02/2020 15,035 0.87 20,000,000 EUR Swedbank AB, 0.00%, 03/09/2019 20,001 1.16 10,000,000 EUR Swedbank AB, 0.00%, 25/09/2019 10,003 0.58 45,000,000 EUR Swedbank AB, 0.00%, 20/02/2020 45,089 2.61 Total Sweden 148,242 8.58

Switzerland 20,000,000 EUR UBS AG, 0.00%, 31/10/2019 20,012 1.16 30,000,000 EUR UBS AG, 0.00%, 06/11/2019 30,019 1.73 Total Switzerland 50,031 2.89

United Kingdom 40,000,000 EUR Barclays Bank plc, 0.00%, 04/03/2020 40,100 2.32 Total United Kingdom 40,100 2.32

United States 16,000,000 EUR Procter & Gamble Co. (The), 0.00%, 11/10/2019 16,008 0.92 Total United States 16,008 0.92


Time deposits

France 136,567,541 EUR BRED Banque Populaire, (0.50)%, 02/09/2019 136,568 7.90 Total France 136,568 7.90

Germany 100,000,000 EUR DZ BANK AG Deutsche Zentral-Genossenschaftsbank, (0.50)%, 02/09/2019 100,000 5.79 Total Germany 100,000 5.79

Japan 150,000,000 EUR The Bank of Tokyo-Mitsubishi UFJ Ltd., (0.46)%, 02/09/2019 150,000 8.68 Total Japan 150,000 8.68

29


The Euro Fund






Time deposits (continued)

United Kingdom 100,000,000 EUR Barclays Bank plc, (0.43)%, 02/09/2019 100,000 5.78 Total United Kingdom 100,000 5.78





BONDS


Australia 26,317,000 EUR Australia & New Zealand Banking Group Ltd., FRN, 0.02%, 28/10/2019 26,333 1.52 Total Australia 26,333 1.52

France 30,600,000 EUR HSBC France SA, FRN, 0.14%, 27/11/2019 30,637 1.77 Total France 30,637 1.77

United Kingdom 13,000,000 EUR Lloyds Bank plc, FRN, 0.13%, 10/09/2019 13,002 0.75 Total United Kingdom 13,002 0.75



Interest Maturity Fair Value % of Net Holding Currency Counterparty Rate Date EUR '000 Asset Value


Germany

120,000,000 EUR BNP Paribas (0.50)% 02/09/2019 120,000 6.95

30


The Euro Fund



Interest Maturity Fair Value % of Net Holding Currency Counterparty Rate Date EUR '000 Asset Value

Reverse repurchase agreements (continued)

Germany (continued)

120,000,000 EUR BNP Paribas (0.50)% 03/09/2019 120,000 6.94 Total Germany 240,000 13.89


Fair Value EUR '000


Total financial assets at fair value through profit or loss 1,848,438 106.94 Cash 100 0.01 Other assets and liabilities (120,089) (6.95) Net asset value attributable to redeemable participating shareholders 1,728,449 100.00



31


The Euro Fund







Canada 50,000,000 EUR TD Bank London, (0.41)%, 14/09/2018 50,008 3.10 Total Canada 50,008 3.10

France 35,000,000 EUR Credit Agricole, (0.34)%, 01/10/2018 35,010 2.17 30,000,000 EUR Credit Agricole, (0.35)%, 03/12/2018 30,026 1.86 Total France 65,036 4.03

Japan 35,000,000 EUR Mitsubishi UFJ Trust & Bank, (0.36)%, 01/10/2018 35,011 2.16 30,000,000 EUR Mitsubishi UFJ Trust & Bank, (0.37)%, 03/10/2018 30,010 1.86 20,000,000 EUR Mizuho Bank London, (0.36)%, 10/09/2018 20,002 1.24 30,000,000 EUR Mizuho Bank London, (0.32)%, 02/10/2018 30,008 1.86 20,000,000 EUR Mizuho Bank London, (0.37)%, 06/11/2018 20,013 1.24 30,000,000 EUR Sumitomo Mitsui Banking Brussels, (0.39)%, 02/10/2018 30,010 1.86 35,000,000 EUR Sumitomo Mitsui Trust Bank, (0.37)%, 01/10/2018 35,011 2.16 30,000,000 EUR Sumitomo Mitsui Trust Bank, (0.38)%, 03/10/2018 30,010 1.86 Total Japan 230,075 14.24

Netherlands 30,000,000 EUR Rabobank Nederland, (0.41)%, 11/10/2018 30,014 1.86 Total Netherlands 30,014 1.86

Switzerland 30,000,000 EUR UBS London Branch, (0.38)%, 02/11/2018 30,018 1.86 Total Switzerland 30,018 1.86

United States 30,000,000 EUR Citibank, (0.39)%, 18/09/2018 30,006 1.86 30,000,000 EUR Citibank, (0.39)%, 21/09/2018 30,006 1.85 Total United States 60,012 3.71




Commercial papers

Austria 74,500,000 EUR Oesterreichisch, (0.44)%, 24/09/2018 74,521 4.61 Total Austria 74,521 4.61

32


The Euro Fund







Finland 10,000,000 EUR Nordea Bank, (0.42)%, 04/09/2018 10,001 0.62 30,000,000 EUR Nordea Bank, (0.42)%, 08/01/2019 30,045 1.86 Total Finland 40,046 2.48

France 15,000,000 EUR BFCM Paris, (0.40)%, 20/09/2018 15,003 0.93 40,000,000 EUR BFMC Paris, (0.40)%, 01/10/2018 40,013 2.48 30,000,000 EUR Credit Agricole, (0.36)%, 03/09/2018 30,001 1.86 50,000,000 EUR HSBC France, (0.39)%, 10/10/2018 50,021 3.09 25,000,000 EUR L'Oreal, (0.46)%, 13/09/2018 25,004 1.55 35,000,000 EUR L'Oreal, (0.47)%, 21/09/2018 35,009 2.17 10,000,000 EUR RTE EDF Transport, (0.36)%, 10/09/2018 10,001 0.62 20,000,000 EUR RTE EDF Transport, (0.36)%, 09/10/2018 20,007 1.24 Total France 225,059 13.94

Germany 35,000,000 EUR Dekabank Deutsche Girozentale, (0.39)%, 01/10/2018 35,011 2.17 40,000,000 EUR Dekabank Deutsche Girozentale, (0.37)%, 21/11/2018 40,033 2.48 60,500,000 EUR DZ Bank, (0.44)%, 05/10/2018 60,525 3.75 30,000,000 EUR Landeskreditbank, (0.50)%, 02/01/2019 30,051 1.86 30,000,000 EUR Linde Finance, (0.39)%, 06/09/2018 30,002 1.86 13,000,000 EUR Linde Finance, (0.37)%, 21/09/2018 13,003 0.80 Total Germany 208,625 12.92

Japan 30,000,000 EUR Sumitomo Mitsui Banking Brussels, (0.39)%, 01/11/2018 30,020 1.86 Total Japan 30,020 1.86

Netherlands 21,800,000 EUR Eads Financial Group, (0.39)%, 17/09/2018 21,804 1.35 50,000,000 EUR Eads Financial Group, (0.39)%, 28/09/2018 50,013 3.09 29,500,000 EUR ING Bank, (0.38)%, 11/10/2018 29,513 1.83 30,000,000 EUR ING Bank, (0.35)%, 23/11/2018 30,024 1.86 Total Netherlands 131,354 8.13

Sweden 20,000,000 EUR Svenska, (0.39)%, 05/12/2018 20,020 1.24 30,000,000 EUR Svenska, (0.37)%, 02/01/2019 30,038 1.86 20,000,000 EUR Svenska, (0.37)%, 08/02/2019 20,033 1.24 Total Sweden 70,091 4.34

33


The Euro Fund







Switzerland 15,000,000 EUR UBS, (0.38)%, 09/10/2018 15,006 0.93 Total Switzerland 15,006 0.93

United Kingdom 40,000,000 EUR Barclays, (0.32)%, 08/03/2019 40,067 2.48 Total United Kingdom 40,067 2.48

United States 5,500,000 EUR Proctor & Gamble, (0.39)%, 11/10/2018 5,502 0.34 5,000,000 EUR Proctor & Gamble, (0.39)%, 15/10/2018 5,003 0.31 7,000,000 EUR Proctor & Gamble, (0.39)%, 17/10/2018 7,004 0.43 30,000,000 EUR Proctor & Gamble, (0.39)%, 18/10/2018 30,015 1.86 13,400,000 EUR Proctor & Gamble, (0.37)%, 07/11/2018 13,409 0.83 9,000,000 EUR Proctor & Gamble, (0.37)%, 15/11/2018 9,007 0.56 6,000,000 EUR Proctor & Gamble, (0.37)%, 21/11/2018 6,005 0.37 Total United States 75,945 4.70


Term deposits

France 70,345,908 EUR BNP Paribas, (0.50)%, 03/09/2018 70,346 4.36 125,000,000 EUR Bred Banque Populaire, (0.48)%, 03/09/2018 125,000 7.75 Total France 195,346 12.11

Germany 75,000,000 EUR DZ Bank, (0.50)%, 03/09/2018 75,000 4.64 Total Germany 75,000 4.64



34


The Euro Fund





BONDS


Canada 18,300,000 EUR Bank of Nova Scotia, 0.06%, 10/09/2018 18,302 1.13 Total Canada 18,302 1.13

France 30,000,000 EUR Dexia Credit Local, 1.63%, 29/10/2018 30,098 1.86 Total France 30,098 1.86



Fair Value EUR '000


Total financial assets at fair value through profit or loss 1,694,643 104.93 Cash – – Other assets and liabilities (79,642) (4.93) Net asset value attributable to redeemable participating shareholders 1,615,001 100.00


Assets Transferable securities admitted to official stock exchange listing 2.85 Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) 97.11 Other assets 0.04 Total assets 100.00

35


Combined Statement of Financial Position As at 31 August 2019

Aggregated

Total Aggregated

Total* 2019 2018

for comparison Currency Note USD ‘000 USD ‘000 Current Assets Financial assets at fair value through profit or loss 2,7 - Investments at fair value 6,960,748 8,709,044 - Term Deposits and Treasury Bills 1,103,527 1,186,250 - Reverse repurchase agreement 1,327,424 500,000 Cash at bank 3 130,286 205,489 Debtors 6 4,953 4,209 Total Current Assets 9,526,938 10,604,992

Current Liabilities - amounts payable within one year

Creditors 6 164,874 1,050,437 Total Current Liabilities 164,874 1,050,437 Net assets attributable to redeemable participating shareholders 9,362,064 9,554,555 *The CAD Fund was terminated on 23 August 2018. These financial statements have been approved by the Board of Directors on 29 November 2019.

Director Director

The accompanying notes on pages 55 to 68 form an integral part of these financial statements.

36


Combined Statement of Comprehensive Income For the financial year ended 31 August 2019

*The CAD Fund was terminated on 23 August 2018.


Aggregated Total

Aggregated Total*

2019 2018 for comparison

Currency Note USD ‘000 USD ‘000 Operating Income Interest income 2 148,439 103,543 Realised gain(s) on investments 457 29

Total Operating Income 148,896 103,572 Operating Expenses 4 Management fees (10,071) (10,003) Trailer fees (2,017) (1,411) Net Operating Income 136,808 92,158 Finance Costs Distribution to redeemable participating shareholders (50,684) (27,186) Cancellation of shares attributable to redeemable participating shareholders due to reverse distribution

512 1,759

Increase in Net Assets Attributable to Redeemable Participating Shareholders from Operations

86,636 66,731

Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Statement of Comprehensive Income.

37


Combined Statement of Changes in Net Assets attributable to redeemable participating shareholders For the financial year ended 31 August 2019

Aggregated Total

Aggregated Total*

2019 2018 for comparison

Currency Note USD ‘000 USD ‘000 Increase in net assets attributable to redeemable participating shareholders 86,636 66,731

Fund Share Transactions

Proceeds from redeemable participating shares issued 55,673,980 28,615,271 Net asset value of participating shares issued for reinvestment of dividends 40,192 22,759 Cost of redeemable participating shares redeemed (55,788,178) (28,334,516) Net increase in net assets 12,630 370,245 Net Assets Attributable to Redeemable Participating Shareholders At the beginning of the financial year

9,554,555 9,192,358

Foreign exchange translation adjustment 2 (205,121) (8,048)

At the end of the financial year 9,362,064 9,554,555 *The CAD Fund was terminated on 23 August 2018. The accompanying notes on pages 55 to 68 form an integral part of these financial statements.

38


Combined Statement of Cash Flows For the financial year ended 31 August 2019

*The CAD Fund was terminated on 23 August 2018. The accompanying notes on pages 55 to 68 form an integral part of these financial statements.

Aggregated

Total Aggregated

Total* 2019 2018 for comparison

Currency USD ‘000 USD ‘000

Operating activities

Net increase in net assets attributable to redeemable participating shareholders from operations

86,636 66,731

Purchase of investment securities (554,416,018) (352,903,094) Proceeds from sale of investment securities 555,504,017 352,584,161 Net realised gain on investments (457) (29) (Increase)/Decrease in debtors excluding receivable for investments sold (205,865) 66 (Decrease)/Increase in creditors excluding payables for investments purchased (885,563) 103,856 Amortization of Discount/Premium (83,947) (77,202) Net cash used in operating activities (1,197) (225,511)

Financing activities

Proceeds from issue of redeemable participating shares 55,673,980 28,615,274 Net asset value of participating shares issued for reinvestment of dividends 40,192 22,755 Payments on redemption of redeemable participating shares (55,788,178) (28,334,516) Net cash (used in)/provided by financing activities (74,006) 303,513 Net (decrease)/increase in cash and cash equivalents during the financial year (75,203) 78,002 Cash and cash equivalents at the start of the financial year 205,489 127,487

Cash and cash equivalents at the end of the financial year 130,286 205,489

39


Statement of Financial Position As at 31 August 2019

2018 for

comparison 2018 for

comparison 2018 for

comparison

Fund Name Note United States

Dollar United States

Dollar Sterling Sterling Euro Euro 2019 2018 2019 2018 2019 2018

Currency USD ‘000 USD ‘000 GBP ‘000 GBP ‘000 EUR ‘000 EUR ‘000 Current Assets Financial assets at fair value through profit or loss 2,7 - Investments at fair value 4,670,732 5,934,191 865,917 855,954 1,121,870 1,424,297 - Term Deposits and Treasury Bills 373,822 550,000 159,192 246,709 486,568 270,346 - Reverse repurchase agreement 850,000 500,000 175,000 - 240,000 - Cash at bank 3 130,059 205,489 96 - 100 - Debtors 6 4,160 2,903 512 454 153 613 Total Current Assets 6,028,773 7,192,583 1,200,717 1,103,117

1,848,691 1,695,256 Current Liabilities - amounts payable within one year Creditors 6 32,281 846,473 145 84,839 120,242 80,255 Total Current Liabilities 32,281 846,473 145 84,839 120,242 80,255 Net assets attributable to redeemable participating shareholders 5,996,492 6,346,110 1,200,572 1,018,278 1,728,449 1,615,001


40


Statement of Financial Position (continued) As at 31 August 2019

2018 for

comparison 2017 for

comparison 2018 for

comparison 2017 for

comparison

Fund Name United States



Dollar Sterling Sterling Sterling ‘000 ‘000 ‘000 ‘000 ‘000 ‘000

Net Assets attributable to redeemable participating shareholders 5,996,492 6,346,110 5,150,158 1,200,572 1,018,278 1,143,563 Accumulating Class A 3,327,614 3,658,423 3,103,351 615,269 503,373 652,849 Flex Distributing Class A 694,089 395,189 238,254 223,542 226,152 212,230 Accumulating Class B 8,208 6,767 9,242 - - - Flex Distributing Class B 759,724 751,989 503,001 24,116 3,689 392 Accumulating Class C 281,309 620,194 491,177 - - - Flex Distributing Class C 377,124 212,948 361,946 - - - Accumulating Class D - - - - - 12 Stanlib Short-Term Money Market Class 43,145 126,064 276,934 1,339 1,075 1,208 Flex Distributing Class F 505,279 574,536 166,253 2,216 2,296 4,473 ICGAC Sterling Class C Accumulation - - - 334,090 281,693 272,399

Shares

Redeemable participating Shares Outstanding

Accumulating Class A 185,402 208,699 179,965 29,442 24,248 31,556 Flex Distributing Class A 694,069,418 395,188,686 238,251,532 223,543,143 226,151,864 212,230,534 Accumulating Class B 704 592 820 - - - Flex Distributing Class B 759,676,061 751,989,365 502,996,244 24,116,078 3,689,171 392,107 Accumulating Class C 26,806 60,600 48,861 - - - Flex Distributing Class C 377,099,924 212,947,569 361,942,114 - - - Accumulating Class D - - - - - 1 Stanlib Short-Term Money Market Class 4,093 12,238 27,315 130 105 118 Flex Distributing Class F 505,248,721 574,535,629 166,252,964 2,216,200 2,296,200 4,473,200 ICGAC Sterling Class C Accumulation - - - 32,936 27,998 27,207


41



2018 for

comparison 2017 for

comparison

Fund Name

Euro Euro Euro ‘000 ‘000 ‘000

Net Assets attributable to redeemable participating shareholders 1,728,449 1,615,001 2,143,850 Accumulating Class A 1,693,489 1,375,047 1,632,706 Flex Distributing Class A - 64,133 65,284 Accumulating Class B 13,726 215 304 Flex Distributing Class B - 10,689 11,350 Accumulating Class C - - - Flex Distributing Class C - - - Accumulating Class D - - 10 Stanlib Short-Term Money Market Class 21,234 19,051 15,978 Flex Distributing Class F - 145,866 418,218 ICGAC Sterling Class C Accumulation - - -

Shares

Redeemable participating Shares Outstanding

Accumulating Class A 122,197 98,765 116,713 Flex Distributing Class A - 64,132,961 65,283,533 Accumulating Class B 1,248 19 30 Flex Distributing Class B - 10,688,962 11,349,902 Accumulating Class C - - - Flex Distributing Class C - - - Accumulating Class D - 1 1 Stanlib Short-Term Money Market Class 2,145 1,916 1,599 Flex Distributing Class F - 145,866,141 418,218,231 ICGAC Sterling Class C Accumulation - - -


42



2018 for comparison

2017 for comparison

2018 for comparison

2017 for comparison




Dollar Sterling Sterling Sterling Shares Net Asset value per redeemable participating shares

Accumulating Class A 17,948.08 17,529.69 17,244.22 20,897.58 20,758.99 20,689.17 Flex Distributing Class A 1.00 1.00 1.00 1.00 1.00 1.00 Accumulating Class B 11,668.53 11,425.16 11,268.83 - - - Flex Distributing Class B 1.00 1.00 1.00 1.00 1.00 1.00 Accumulating Class C 10,494.32 10,234.23 10,052.48 - - - Flex Distributing Class C 1.00 1.00 1.00 - - - Accumulating Class D - - - - - 11,872.56 Stanlib Short-Term Money Market Class 10,541.62 10,301.03 10,138.39 10,300.19 10,236.98 10,208.12 Flex Distributing Class F 1.00 1.00 1.00 1.00 1.00 1.00 ICGAC Sterling Class C Accumulation - - - 10,143.48 10,061.05 10,012.17

These financial statements have been approved by the Board of Directors on 29 November 2019. The accompanying notes on pages 55 to 68 form an integral part of these financial statements.

43



2018 for comparison

2017 for comparison

Fund Name

Euro Euro Euro Shares Net Asset value per redeemable participating shares

Accumulating Class A 13,858.69 13,922.52 13,989.07 Flex Distributing Class A - 1.00 1.00 Accumulating Class B 10,995.46 11,048.45 11,097.49 Flex Distributing Class B - 1.00 1.00 Accumulating Class C - - - Flex Distributing Class C - - - Accumulating Class D - - 11,290.76 Stanlib Short-Term Money Market Class 9,899.61 9,945.16 9,993.04 Flex Distributing Class F - 1.00 1.00 ICGAC Sterling Class C Accumulation - - -

These financial statements have been approved by the Board of Directors on 29 November 2019.

Director Director


44


Statement of Comprehensive Income For the financial year ended 31 August 2019

2018 for comparison

2018 for comparison

2018 for comparison




Currency Note USD ‘000 USD ‘000 GBP ‘000 GBP ‘000 EUR ‘000 EUR ‘000

Operating Income

Interest income/(loss) 2 141,021 104,023 10,954 5,468 (5,847) (6,918) Realised gain(s) on investments 316 7 33 2 87 16 Total Operating Income/(Loss) 141,337 104,030 10,987 5,470 (5,760) (6,902) Operating Expenses 4 Management fees (7,464) (7,322) (1,418) (1,216) (696) (832) Trailer fees (1,949) (1,348) (45) (4) (9) (6) Net Operating Income/(Loss) 131,924 95,360 9,524 4,250 (6,465) (7,740) Finance Costs Distribution to redeemable participating shareholders (48,396) (25,972) (1,785) (777) - - Cancellation of shares attributable to redeemable participating shareholders due to reverse distribution

- - - - 452 1,476

Net Increase/(Decrease) in Net Assets Attributable to Redeemable Participating Shareholders from Operations

83,528 69,388 7,739 3,473 (6,013) (6,264)



45


Statement of Comprehensive Income (continued) For the financial year ended 31 August 2019

2018 for comparison

Fund Name Canadian

Dollar* 2018

Currency Note CAD ‘000

Operating Income

Interest income 2 497 Total Operating Income 497 Operating Expenses 4 Management fees (61) Trailer fees (65) Net Operating Income 371 Finance Costs Distribution to redeemable participating shareholders (211) Net Increase in Net Assets Attributable to Redeemable Participating Shareholders from Operations

160




46


Statement of Changes in Net Assets attributable to redeemable participating shareholders For the financial year ended 31 August 2019

2018 for

comparison 2018 for

comparison 2018 for

comparison




Currency USD ‘000 USD ‘000 GBP ‘000 GBP ‘000 EUR ‘000 EUR ‘000

Increase/(Decrease) in net assets attributable to redeemable participating shareholders

83,528 69,388 7,739 3,473 (6,013) (6,264)

Fund Share Transactions Proceeds from redeemable participating shares issued 36,156,561 18,317,779 7,719,026 3,539,271 8,491,421 4,607,519 Net asset value of participating shares issued for reinvestment of dividends 37,967 21,581 1,736 748 - -

Cost of redeemable participating shares redeemed (36,627,674) (17,212,796) (7,546,207) (3,668,777) (8,371,960) (5,130,105) Net (Decrease)/Increase in net assets (349,618) 1,195,952 182,294 (125,285) 113,448 (528,850)

Net Assets Attributable to Redeemable Participating Shareholders At the beginning of the financial year 6,346,110 5,150,158 1,018,278 1,143,563 1,615,001 2,143,851 At the end of the financial year 5,996,492 6,346,110 1,200,572 1,018,278 1,728,449 1,615,001


47


Statement of Changes in Net Assets (continued) attributable to redeemable participating shareholders For the financial year ended 31 August 2019

2018 for

comparison

Fund Name Canadian

Dollar* 2018

Currency CAD ‘000

Increase in net assets attributable to redeemable participating shareholders

160

Fund Share Transactions Proceeds from redeemable participating shares issued 41,184 Net asset value of participating shares issued for reinvestment of dividends 212

Cost of redeemable participating shares redeemed (75,414) Net Decrease in net assets (33,858)

Net Assets Attributable to Redeemable Participating Shareholders At the beginning of the financial year 33,858 At the end of the financial year -



48



2018 for comparison

2018 for comparison

2018 for comparison



Dollar Sterling Sterling Euro Euro Share Transaction (Units Rounded) Redeemable participating shares outstanding at beginning of the year Accumulating Class A 208,699 179,965 24,248 31,556 98,765 116,713 Flex Distributing Class A 395,188,686 238,251,532 226,151,864 212,230,534 64,132,961 65,283,533 Accumulating Class B 592 820 - - 19 30 Flex Distributing Class B 751,989,365 502,996,244 3,689,171 392,107 10,688,962 11,349,902 Accumulating Class C 60,600 48,861 - - - - Flex Distributing Class C 212,947,569 361,942,114 - - - - Accumulating Class D - - - 1 - 1 Stanlib Short-Term Money Market Class 12,238 27,315 105 118 1,916 1,599 Flex Distributing Class F 574,535,629 166,252,964 2,296,200 4,473,200 145,866,141 418,218,231 ICGAC Sterling Class C Accumulation - - 27,998 27,207 - - Total redeemable participating shares subscribed Accumulating Class A 1,355,965 1,605,372 272,576 280,814 574,285 640,881 Flex Distributing Class A 8,694,524,542 8,667,763,587 783,962,776 918,675,949 41,905,018 195,151,000 Accumulating Class B 4,781 997 - - 1,390 62 Flex Distributing Class B 593,970,570 578,466,462 48,791,888 4,156,454 908,528 100,803 Accumulating Class C 43,196 85,892 - - - - Flex Distributing Class C 726,188,091 828,334,016 - - - - Accumulating Class D - - - - - - Stanlib Short-Term Money Market Class 10,372 16,043 59 - 982 776 Flex Distributing Class F 1,509,728,543 2,073,790,465 63,810,900 60,045,925 446,977,261 1,081,289,847 ICGAC Sterling Class C Accumulation - - 113,613 44,979 - -


49



2018 for comparison

Fund Name Canadian

Dollar* Share Transaction (Units Rounded) Redeemable participating shares outstanding at beginning of the year Accumulating Class A 477 Flex Distributing Class A 201,892 Accumulating Class B - Flex Distributing Class B 26,296,075 Accumulating Class C - Flex Distributing Class C - Accumulating Class D - Stanlib Short-Term Money Market Class - Flex Distributing Class F - ICGAC Sterling Class C Accumulation - Total redeemable participating shares subscribed Accumulating Class A 1,695 Flex Distributing Class A 252,135 Accumulating Class B - Flex Distributing Class B 14,841,546 Accumulating Class C - Flex Distributing Class C - Accumulating Class D - Stanlib Short-Term Money Market Class - Flex Distributing Class F - ICGAC Sterling Class C Accumulation -



50



2018 for comparison

2018 for comparison

2018 for comparison



Dollar Sterling Sterling Euro Euro

Share Transaction (Units Rounded) (continued) Total redeemable participating shares redeemed Accumulating Class A 1,379,262 1,576,638 267,382 288,122 550,853 658,829 Flex Distributing Class A 8,395,643,810 8,510,826,433 786,571,497 904,754,619 106,037,979 196,301,572 Accumulating Class B 4,669 1,225 - - 161 73 Flex Distributing Class B 586,283,874 329,473,341 28,364,981 859,390 11,597,490 761,743 Accumulating Class C 76,990 74,153 - - - - Flex Distributing Class C 562,035,736 977,328,561 - - - - Accumulating Class D - - - 1 - 1 Stanlib Short-Term Money Market Class 18,517 31,120 34 13 753 459 Flex Distributing Class F 1,579,015,451 1,665,507,800 63,890,900 62,222,925 592,843,402 1,353,641,937 ICGAC Sterling Class C Accumulation - - 108,675 44,188 - - Redeemable participating shares outstanding at end of the year Accumulating Class A 185,402 208,699 29,442 24,248 122,197 98,765 Flex Distributing Class A 694,069,418 395,188,686 223,543,143 226,151,864 - 64,132,961 Accumulating Class B 704 592 - - 1,248 19 Flex Distributing Class B 759,676,061 751,989,365 24,116,078 3,689,171 - 10,688,962 Accumulating Class C 26,806 60,600 - - - - Flex Distributing Class C 377,099,924 212,947,569 - - - - Accumulating Class D - - - - - - Stanlib Short-Term Money Market Class 4,093 12,238 130 105 2,145 1,916 Flex Distributing Class F 505,248,721 574,535,629 2,216,200 2,296,200 - 145,866,141 ICGAC Sterling Class C Accumulation - - 32,936 27,998 - -


51



2018 for comparison

Fund Name Canadian

Dollar*

Share Transaction (Units Rounded) (continued) Total redeemable participating shares redeemed Accumulating Class A 2,172 Flex Distributing Class A 454,027 Accumulating Class B - Flex Distributing Class B 41,137,621 Accumulating Class C - Flex Distributing Class C - Accumulating Class D - Stanlib Short-Term Money Market Class - Flex Distributing Class F - ICGAC Sterling Class C Accumulation - Redeemable participating shares outstanding at end of the year Accumulating Class A -

Flex Distributing Class A -

Accumulating Class B -

Flex Distributing Class B -

Accumulating Class C -

Flex Distributing Class C -

Accumulating Class D -

Stanlib Short-Term Money Market Class - Flex Distributing Class F -

ICGAC Sterling Class C Accumulation -



52


Statement of Cash Flows For the financial year ended 31 August 2019

2018 for comparison

2018 for comparison

2018 for comparison




Currency USD ‘000 USD ‘000 GBP ‘000 GBP ‘000 EUR ‘000 EUR ‘000 Operating activities Net increase/(decrease) in net assets attributable to redeemable participating shareholders from operations

83,528 69,388 7,739 3,473 (6,013) (6,264)

Purchase of investment securities (320,445,799) (192,107,798) (93,752,573) (53,048,432) (100,414,293) (73,234,731) Proceeds from sale of investment securities 320,907,132 190,966,660 93,574,840 53,176,567 100,376,486 73,757,226 Net realised gain on investments (316) (7) (33) (2) (87) (16) (Increase)/Decrease in debtors excluding receivable for investments sold (1,257) (1,071) (58) 253 460 636

(Decrease)/ Increase in creditors excluding payable for investments purchased (102,641) 103,945 42 (6) (80,013) (58)

Amortization of Discount/Premium (82,931) (79,679) (4,416) (3,095) 4,099 5,792 Net cash provided by/(used in) operating activities 357,716 (1,048,562) (174,459) 128,758 (119,361) 522,585

Financing activities Proceeds from issue of redeemable participating shares 36,156,561 18,317,779 7,719,026 3,539,271 8,491,421 4,607,520 Net asset value of participating shares issued for reinvestment of dividends 37,967 21,581 1,736 748 - -

Payments on redemption of redeemable participating shares (36,627,674) (17,212,796) (7,546,207) (3,668,777) (8,371,960) (5,130,105) Net cash (used in)/provided by financing activities (433,146) 1,126,564 174,555 (128,758) 119,461 (522,585) Net (decrease)/increase in cash and cash equivalents during the financial year (75,430) 78,002 96 - 100 - Cash and cash equivalents at the start of the financial year 205,489 127,487 - - - - Cash and cash equivalents at the end of the financial year 130,059 205,489 96 - 100 - The accompanying notes on pages 55 to 68 form an integral part of these financial statements.

53


Statement of Cash Flows (continued) For the financial year ended 31 August 2019

2018 for comparison

Fund Name Canadian

Dollar* 2018

Currency CAD ‘000 Operating activities Net increase in net assets attributable to redeemable participating shareholders from operations

160

Purchase of investment securities (2,506,828) Proceeds from sale of investment securities 2,540,976 Decrease in debtors excluding receivable for investments sold 48 Decrease in creditors excluding payable for investments purchased (16) Amortization of Discount/Premium (321) Net cash provided by operating activities 34,019

Financing activities Proceeds from issue of redeemable participating shares 41,184 Net asset value of participating shares issued for reinvestment of dividends 211

Payments on redemption of redeemable participating shares (75,414) Net cash (used in) by financing activities (34,019) Net increase in cash and cash equivalents during the financial year - Cash and cash equivalents at the start of the financial year - Cash and cash equivalents at the end of the financial year - *The CAD Fund was terminated on 23 August 2018. The accompanying notes on pages 55 to 68 form an integral part of these financial statements.

54


Notes to the Financial Statements


1. General The Company is an open ended investment company with variable capital organised under the laws of Ireland as a public limited company pursuant to the Irish Companies Act 2014 and is listed on Euronext Dublin (formerly the Irish Stock Exchange). It was incorporated on 29 June 1995 under registration number 235175. The authorisation of the Company is not an endorsement or guarantee of the Company or its performance by the Central Bank. Its object, as set out in clause 2 of the Company’s Memorandum and Articles of Association, is the collective investment in either or both transferable securities and other liquid financial assets referred to in Regulation 68 of the UCITS Regulations and the Central Bank (Supervision and Enforcement) Act 2013 (section 48(1)) UCITS Regulations 2015 (as amended), (the “Central Bank UCITS Regulations”) of capital raised from the public and which operates on the basis of risk spreading. At present the Company’s shares represent interests in The United States Dollar Fund, The Sterling Fund and The Euro Fund, each relating to a separate portfolio of securities, cash and other net assets. Each Fund is authorised by the Central Bank as an LVNAV MMF pursuant to the MMF Regulation. Each of the three unlaunched sub-funds of the Company is authorised by the Central Bank as a short-term variable net asset value (“VNAV”) MMF pursuant to the MMF Regulation. 2. Significant Accounting Policies The principal accounting policies applied in the preparation of these financial statements are set out below. (a) Basis of Preparation The financial statements of the Company and each Fund are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS’), interpretations adopted by the International Accounting Standards Board (‘IASB’), the Companies Act 2014 (as amended), applicable to Companies reporting under IFRS and certain requirements of the UCITS Regulations (the “Central Bank UCITS Regulations”) that apply to financial reports. The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss. The preparation of financial statements in conformity with IFRS requires the Directors to make certain accounting estimates and assumptions. Actual results may differ from those estimates and assumptions. It also requires the Directors to exercise critical judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Company’s financial statements are disclosed in Note 2. (b) Financial assets and financial liabilities at fair value through profit or loss Classification (i) Assets The Funds classify their investments based on both the Fund’s business model for managing those financial assets and the contractual cash flow characteristics of the financial assets. The portfolio of financial assets is managed and performance is evaluated on a fair value basis. The Funds are primarily focused on fair value information and use that information to assess the assets’ performance and to make decisions. The Funds have not taken the option to irrevocably designate any equity securities as fair value through other comprehensive income. The contractual cash flows of each Fund’s debt securities are solely principal and interest, however, these securities are neither held for the purpose of collecting contractual cash flows nor held both for collecting contractual cash flows and for sale. The collection of contractual cash flows is only incidental to achieving each Fund’s business model’s objective. Consequently, all investments are measured at fair value through profit or loss. (ii) Liabilities Financial liabilities, other than those at fair value through profit or loss, are measured at amortised cost. Financial liabilities are classified according to the substance of the contractual arrangements entered into.

Recognition, de-recognition and measurement of investments Purchases and sales of investments are recognised on trade date, the date on which the Funds commit to purchase or sell the asset. Investments are initially recognised at fair value. Transaction costs for all financial assets and liabilities carried at fair value through profit and loss are expensed as incurred in the Statement of Comprehensive Income. Subsequent to initial recognition, all investments continue to be classified at fair value through profit or loss, and the changes in fair value are recognised as net unrealised gain/loss on investments in the Statement of Comprehensive Income in the period in which they arise.

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For the financial year ended 31 August 2019 (continued)

Recognition, de-recognition and measurement of investments (continued) Investments are derecognised when the contractual rights to the cash-flows from the financial asset expire or a Fund has transferred the financial asset and the transfer qualifies for de-recognition. A financial liability is de-recognised when the obligation specified in the contract is discharged, cancelled or has expired. Realised gains and losses on sales of investments are calculated based on the average cost of the investment in local currency and are recognised in net realised gain/loss on investments in the Statement of Comprehensive Income in the period in which they arise. Realised gains and losses on investment transactions in debt instruments are calculated as the difference between sales proceeds and the historic cost of the instrument. Subsequent to initial recognition, all instruments classified at fair value through profit or loss were measured at fair value with changes in their fair value recognised in the Statement in Comprehensive Income. Commercial papers and certificates of deposit are shown with calculated yields in the Schedule of Investments. Financial instruments traded in active markets are based on quoted market prices at 31 August 2019. The quoted market price used for financial assets held by the Company is the last traded price (mark to market). In circumstances where the last traded price is not within the bid-ask spread, the Investment Manager will determine the point where the bid-ask spread is most representative of fair value. Repurchase Agreements and Reverse Repurchase Agreement investments are valued at Par value as at 31 August 2019.

The Company may invest in securities that are not traded in an active market (for example in over-the-counter money market instruments). The fair value of these investments is determined by using a valuation technique. This is a matrix based technique which calculates a fair value price based on the correlation of spot to 12 month LIBOR rates and length of time to maturity of each asset in this category. The Funds do not own any restricted securities. All holdings are either quoted on an official exchange and those that aren’t are valued at amortised cost.

(c) Accounting for Income, Expenses and Fee Waivers Income from investment securities is accounted for in the Statement of Comprehensive Income using the effective interest method. The Funds pay all expenses allocated to the Funds, other than those expressly assumed by the Manager. To the extent that expenses are attributable to specific share classes of the Funds those share classes shall bear such expenses. All expenses are accrued on a daily basis. The fee waivers are calculated on an accruals basis and in line with all underlying agreements. They are recognised in the Statement of Comprehensive Income and details of same are shown in Note 4. (d) Cash and Cash Equivalents and cash due to/from broker Cash includes cash in hand and bank overdrafts held with the Depositary. Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash, are subject to insignificant risk of changes in value, and are held for the purposes of short-term cash commitments rather than for investment purposes. (e) Collateral Cash collateral provided by the Funds is identified in the statement of financial position under ‘margin accounts’ and is not included as a component of ‘cash and cash equivalents’. For collateral other than cash, if the party to whom the collateral is provided has the right by contract or custom to sell or re-pledge the collateral, the Funds classify that asset in its statement of financial position separately from other assets and identifies the asset as pledged collateral. Where the party to whom the collateral is provided does not have the right to sell or re-pledge, the collateral provided is disclosed in the notes to the financial statements. (f) Distribution Re-investment Dividends paid to equity shareholders are recognised in the Statement of Changes in Net Assets attributable to redeemable participating shareholders when a Fund incurs a legal obligation to pay such a dividend. Dividends declared are either paid to shareholders in the form of a re-investment of the dividend in additional shares or paid through cash as mentioned in the relevant Funds prospectus. (g) Fund Shares Transactions The issue and redemption price of each Fund is based on the last calculated Net Asset Value per share. (h) Redeemable Participating Shares Redeemable participating shares are redeemable in accordance with the provisions of the Company’s Prospectus at the shareholder’s option and are classified as financial liabilities. The participating shares can be put back to the Company at any time for cash equal to a proportionate share of the applicable Funds’ Net Asset Value. The participating share is carried at the redemption amount that is payable at the balance sheet date if the shareholder exercised its right to put the share back to the Funds. There are 7 Subscriber shares in issue which do not form any part of the Net Asset Value of the Company. These Shares can only be redeemed upon a winding up of the Company and their entitlement shall be limited to the amount subscribed and any accrued income thereon. Refer to note 11 for more details. (i) Creditors Trade creditors are initially measured at fair value, and subsequently measured at amortised cost, using the effective interest method. (j) Distributions Dividends paid to equity shareholders are recognised in the Statement of Comprehensive Income when a Fund incurs a legal obligation to pay such a dividend. Only Flex Distributing shares pay a dividend. The dividend is declared daily out of positive net investment income following the valuation on each Business Day. It is payable to shareholders of record in the form of additional shares or the payment of cash.

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(k) Foreign Exchange Items included in the Company’s financial statements are measured using the currency of the primary economic environment in which it operates (the ‘functional currency’). As functional currency is determined at the individual Fund level, the functional currency in respect of each Fund is the United States Dollar for The United States Dollar Fund, the Pound Sterling for The Sterling Fund and the Euro for The Euro Fund. The presentation currency of the Financial Statements of the Company is USD; however, each Fund is stated in its respective currency of USD, GBP and EUR. For aggregation purposes, assets and liabilities denominated in foreign currencies are converted into United States Dollars (‘USD’) at the exchange rates ruling at the Statement of Financial Position date. For aggregation purposes, incomes and expenses denominated in foreign currencies are converted into United States Dollars (‘USD’) at the average exchange rates for the year. Foreign currency transactions are translated to the functional currency of the relevant Funds at the rate of exchange ruling on the date of the transaction. When an investment is sold, the foreign currency gain or loss based on the original cost of the transferable securities is recognised in the net gain or loss on investments at fair value in the Statements of Comprehensive Income. A foreign exchange translation adjustment is disclosed in the Combined Statement of Changes in Net Assets as at 31 August 2019 of USD’ 000 (205,121) (2018 USD’ 000 (8,048)). Both are calculated by translating the 2019 and 2018 Total Net Assets using both the average exchange rate and the closing exchange rate and deducting one from the other. The conversion exchange rates used in the Combined Statement of Financial Position were as at the balance sheet date. Exchange Rates As at As at 31 August 2019 31 August 2018 Pound Sterling 0.821119 0.768935 Euro 0.908059 0.857140 Canadian Dollar* - 1.300170

The conversion exchange rates used in the Combined Statement of Comprehensive Income, the Combined Statement of Changes in Net Assets and Combined Statement of Cash Flows were the average rates for the year.

Average Exchange Rates For the year ended For the year ended 31 August 2019 31 August 2018 Pound Sterling 0.780031 0.741323 Euro 0.882535 0.839094 Canadian Dollar* - 1.280426 *The CAD Fund was terminated on 23 August 2018.

(l) New standards and amendments to existing standards IFRS 9 ‘Financial Instruments’ became effective for annual periods beginning on or after 1 January 2018. It addresses the classification, measurement and derecognition of financial assets and liabilities and replaces the multiple classification and measurement models in IAS 39. It also introduces a new expected credit loss (ECL) impairment model which replaces the 'incurred loss' model in IAS 39. IFRS 9 establishes three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income and fair value through profit or loss. The basis of classification depends on the Fund’s business model and whether the contractual cash flow characteristics of the financial asset represent Solely Payments of Principal and Interest (SPPI) . For financial liabilities, there were no changes to classification and measurement except for the recognition of changes in the entity’s own credit risk in other comprehensive income, for liabilities designated at fair value through profit or loss. Derivative and equity instruments are measured at fair value through profit or loss unless, for equity instruments not held for trading, an irrevocable option is taken to measure at fair value through other comprehensive income. Classification and measurement of debt assets is driven by each Fund’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.

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(l) New standards and amendments to existing standards (continued) The business model of a Fund will be considered Hold to Collect if the objective of the business model is to hold financial assets for the collection of contractual cash flows from SPPI. Under this model financial assets are measured at amortised cost. The business model of a Fund will be considered Hold to Collect and Sell if the objective of the business model is to hold financial assets to both sell and to collect contractual cash flows from SPPI. Under this model financial assets are measured at fair value through other comprehensive income. The business model of a Fund will be considered Hold to Sell if the objective of the business model is neither Hold to Collect or Hold to Collect and Sell. Under this model financial assets are measured at fair value through profit or loss. The business model of each Fund has been determined as being Hold to Sell. For the financial year ended 31 August 2018 all investments traded on a regulated exchange were measured at fair value through profit and loss and any short dated transferable debt securities and money market instruments not traded on a regulated exchange were measured at amortised cost. Following the application of IFRS 9 for the financial years ended 31 August 2019 and 2018, all investments are now measured at fair value through profit or loss. The adoption of IFRS 9 did not have a material impact on the valuation of financial assets within the financial statements. There was no material impact on adoption from the application of the new ECL impairment model which is disclosed in note 7. The Funds do not apply hedge accounting; therefore, IFRS 9 hedge accounting related changes do not have an impact on the financial statements of the Funds. There are no other standards, amendments to standards or interpretations that are effective for annual periods beginning on 1 August 2018 that have a material effect on the financial statements of the Funds.

(m) New standards, amendments and interpretations effective after 1 September 2019 and have not been early adopted. A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 September 2019, and have not been early adopted in preparing these financial statements. None of these are expected to have a material effect on the financial statements of the Funds. 3. Cash at Bank Cash balances of the Funds are held with J.P. Morgan Bank (Ireland) plc. 4. Fees, Related Party Disclosures Related Party Disclosures and Fees In the opinion of the Directors, the list of related parties under IAS 24 ‘Related Party transactions’ is as follows: FIL Limited - the ultimate holding company and owner of 100% of the following fellow subsidiary undertakings namely: • FIL Fund Management (Ireland) Limited • FIL Investments International • FIL Distributors • Directors of the Company and their dependents Fee Structure

The Company has appointed the Manager, a related party, as its Management Company and the Manager is responsible for the investment management and general administration of the Company with power to delegate such functions subject to the overall supervision and control of such functions being retained by the Directors.

The Manager also acts as the registrar and transfer agent of the Company. The Manager has appointed J.P. Morgan Administration Services (Ireland) Limited as Administrator of the Company. The administrator is responsible for calculating the daily Net Asset Value of the shares of each Fund, maintaining the Funds’ books and records and preparing the Company’s annual and interim financial statements and other shareholder information.

The Manager has also been appointed as Company Secretary.

Pursuant to the Management Agreement dated 1 October 2005, the Manager earns a monthly unified fee, accrued daily and based on the total net assets of the Funds. This fee is split at share class level as follows:

For the financial year ended 31 August 2019 and 31 August 2018, this fee was capped at 0.15% per annum of the Net Asset Value of each Fund. On Class B Shares the total fee was capped at 0.40%. This was split between a management fee of 0.15% and a shareholder services fee of 0.25%. On Class D Shares the total fee was capped at 0.20%. This was split between a management fee of 0.15% and a shareholder services fee of 0.05%. On the Stanlib Short Term Money Market Classes the total fee was capped at 0.20%, this was split between a management fee capped at 0.15% and an additional Stanlib management fee of 0.05%, which is calculated daily based on the Net Asset Value of the Class and paid monthly to Stanlib.

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For the financial year ended 31 August 2019 (continued) Fee Structure (continued) Given the low yield/negative environment during the financial year, fees were partially waived on the following Funds:

United States Dollar Fund

Sterling Fund Euro Fund Canadian Dollar Fund***

USD ‘000 GBP ‘000 EUR ‘000 CAD ‘000 Investment management fee waiver - - 1,419* - Trailer fee waiver - - 31** - - - 1,450 -

*This includes a Stanlib Euro Short-Term Money Market class fee waiver of EUR 23,236. (2018: EUR Nil). **This includes a Stanlib Euro Short-Term Money Market class fee waiver of EUR 7,035. (2018: EUR 6,584). ***The CAD Fund was terminated on 23 August 2018.

The Manager has delegated its discretionary powers of investment to FIL Investments International (‘FII’), as Investment Manager. FII was incorporated in United Kingdom and FIL Limited is the ultimate parent company. FII is authorised to receive a monthly investment manager fee from the Manager. From the unified fee described previously, the Manager discharges all fees and expenses, including depositary fees, administration fees, directors’ fees, audit fees transaction costs and any out of pocket expenses of the Manager, the Administrator, the Depositary, the Investment Manager, other service providers and the establishment costs of the Company. The Manager has appointed FIL Distributors (‘FILD’), as General Distributor of the Funds. FILD is also paid out of the unified fee. Auditors’ Remuneration The statutory audit fee for the year ended 31 August 2019 was EUR 31,050 (2018: EUR 33,880) (excluding VAT). This fee includes out of pocket expenses. There were no fees for tax advisory services, other assurance services or other non-audit services during the financial year ended 31 August 2019 (2018: Nil). Director’s Fees Certain officers and Directors of the Company are also directors, officers or employees of FIL Limited and/or its subsidiary undertakings (the ‘FIL Limited Group’) and as such do not receive Director’s fees from the Company. Denise Kinsella is an independent Director who is not an officer or employee of the FIL Limited Group and as such is entitled to receive Director’s fees from the Company. For the financial year ended 31 August 2019 total payments of USD 22,025 (2018: USD 20,190) were made to Directors in respect of Directors’ fees for the financial year. Cross-Investments There were no Funds invested in the other Funds of the Company during the financial year ended 31 August 2019 (2018: USD Nil).

5. Redeemable Participating Shares Redeemable participating shares are redeemable in accordance with the provisions of the Company’s Prospectus at the shareholder’s option and are classified as financial liabilities. The participating shares can be put back to the Company at any time for cash equal to a proportionate share of the Company’s Net Asset Value. The participating share is carried at the redemption amount that is payable at the balance sheet date if the shareholder exercised its right to put the share back to the Company. Significant Shareholders There were no shareholders with significant holdings of at least 20% of the relevant Funds and the aggregate value and percentage of that holding as at 31 August 2019 and 31 August 2018.

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6. Debtors and Creditors

2018 For

Comparison 2018 For

Comparison 2018 For

Comparison US Dollar US Dollar Sterling Sterling Euro Euro

Debtors USD ‘000 USD ‘000 GBP ‘000 GBP ‘000 EUR ‘000 EUR ‘000 Receivable from subscriptions - 1,528 - - - - Interest receivable 4,160 1,347 512 454 5 407 Distributions receivable - - - - - 59 Other receivable - 28 - - 148 147 4,160 2,903 512 454 153 613 Creditors Payable for redemptions - 103,010 - - - - Payable for investments purchased 29,897 741,448 - 84,736 120,000 - Interest payable - - - - 24 - Distributions payable 1,311 1,048 17 4 - 215 Fees payable 1,073 967 128 99 218 80,040 32,281 846,473 145 84,839 120,242 80,255

2018 For Comparison

Aggregated Total Aggregated Total Debtors USD ‘000 USD ‘000 Receivable from subscriptions - 1,528 Receivable from investment sold - - Interest receivable 4,790 2,412 Distributions receivable - 69 Other receivable 163 200 4,953 4,209 Creditors Payable for redemptions - 103,010 Payable for investments purchased 162,047 851,647 Interest payable 26 - Distributions payable 1,332 1,304 Fees payable 1,469 94,476 164,874 1,050,437

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7. Risk Management Policies and Procedures The Board of Directors of FIL Limited has established a risk policy, a risk appetite statement and a number of other risk related policies for adoption throughout the FIL Limited Group. There is a clearly defined structure operating within a corporate governance and management framework that is designed to address the related business risks, including those arising from financial instruments. Risk management policies and procedures are updated according to market, industry and government initiatives and regulatory developments. It is the Board of Directors of the Company that is ultimately responsible for risk management but day to day management of the risk process has been delegated to other areas as appropriate. FIL Limited Group operates a ‘multiple lines of defence’ approach to risk management; also the risk control processes are comprehensive, multi-layered, both quantitative and qualitative and do not rely on any one risk measure or system. The primary responsibility for financial instrument risk management rests with the Investment Manager. On a regular basis each Fund is formally reviewed by the Investment Manager; the review covers multiple aspects of the Fund’s profile including trading activity, turnover, performance, structure, style profile and other relevant subjects. In addition to this review there is a formal Investment Risk Oversight Committee (‘IROC’), chaired by the head of the independent Investment Management Risk function, whose remit includes review of various risk and performance measures, liquidity and other investment risks. The Company is governed by the UCITS Regulations and with the Prospectus limits, are monitored and reported on by an independent Investment Compliance function. The Company has the capacity to enter into fully collateralised tri-party reverse repurchase agreement transactions with institutions the Investment Manager has determined are creditworthy and which are rated investment grade. At the financial year ended 31 August 2019, the United States Dollar Fund held reverse repurchase agreements valued at USD 850,000,000 with collateral pledged of USD 850,000,081, the Sterling Fund held reverse repurchase agreements valued at GBP 175,000,000 with collateral pledged of GBP 100,000,000 and The Euro Fund held reverse repurchase agreements valued at EUR 240,000,000 with collateral pledged of EUR 120,000,000. The main risks arising are global risk exposure, credit, liquidity, counterparty, market price, foreign currency and interest rate risks and they, together with the risk management objectives, policies and procedures used to manage them are outlined below. FIL Fund Management (Ireland) Limited (“FFM(I)L”), Risk Management Policies and Procedures The Company maintains policies and procedures, as reviewed and considered by the Board.

The Company also adheres to other policies of the Fidelity Group, which address specific risk areas. Staff supporting the business of the Company are expected to be familiar with the policies and any internal sub-policies or standards which also contribute to the overall risk management and control environment.

The policies and procedures of the Company will be assessed and periodically reviewed by the Company to assess the adequacy of such policies and ensure their continued effectiveness. Global Risk Exposure The Funds are not required to calculate global exposure because it does not generate leverage through the re-investment of collateral. Credit Risk Credit risk arises as both counterparty and issuer credit risk. All security investments are transacted through brokers who have been approved by the FIL Limited Group as an acceptable counterparty. The list of approved brokers is reviewed regularly. There is a risk of loss if a counterparty fails to perform its financial or other obligations to a Fund, for example, the possibility that a counterparty may default by failing to make payments due, or fail to repay principal and interest in a timely manner. If settlement never occurs the loss incurred by the Funds will be the difference between the price of the original contract and the price of the replacement contract or, in the case where the contract is not replaced, the absolute value of the contract at the time it is voided. Furthermore, in some markets ‘Delivery versus Payment’ may not be possible in which case the absolute value of the contract is at risk if the Funds meet its settlement obligations but the counterparty fails before meeting its obligations under the relevant contract. The investments and cash of the Company are held with the Depositary. In the event of insolvency or bankruptcy of the Depositary, the Company’s investments are segregated from those of the Depositary or its agents. The Company will, however, be exposed to the credit risk of the Depositary, or any Depositary used by the Depositary, in relation to the Company’s cash held by the Depositary. In the event of the insolvency or bankruptcy of the Depositary, the Company will be treated as a general creditor of the Depositary in relation to cash holdings of the Company.

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Credit Risk (continued) A Fund’s investments may be adversely affected if any of the institutions with which its money is deposited suffers insolvency or other financial difficulties. Credit risk also arises from the uncertainty surrounding the ultimate repayment of principal and interest or other debt instrument investments by the issuers of such securities. Although the Funds may invest in high quality credit instruments, there can be no assurance that the institutions or securities in which a Fund invests will not be subject to credit difficulties leading to the loss of some or all of the sums invested in such institutions, securities or other instruments. The credit quality of permitted investments is strictly monitored and investment grade debt securities will be rated A or higher for long term securities or rated A-1 or higher for short term securities. Each Fund invests only in investment grade debt securities. The following table breaks down the financial assets of the Funds by rating category: As at 31 August 2019 Fund Rating United States Dollar Sterling Euro Short Term: A-1 40% 47% 62% A-1+ 45% 49% 38% A-2 15% 4% 0% 100% 100% 100%

As at 31 August 2018 Fund Rating United States Dollar Sterling Euro Short Term: A-1 45% 51% 53% A-1+ 55% 49% 47% 100% 100% 100%

Expected Credit Losses IFRS 9 replaces the 'incurred loss' model in IAS 39 with an 'expected credit loss' model. Under IFRS 9, credit losses are recognised earlier than under IAS 39. Application of the ECL impairment model has resulted in no expected credit loss allowances recorded against the Fund’s debtors at 31 August 2019 (31 August 2018: None) because the majority of each Fund’s investments are measured at fair value through profit and loss and comprise of high credit quality investment grade holdings of short-term duration (i.e. no longer than 12 months). Liquidity Risk Liquidity risk is the risk of a Fund having insufficient same day realisable cash, investments and borrowing capacity to fund redemption requests net of subscriptions. In normal market conditions, a Fund’s assets comprise mainly realisable securities which can be readily sold. A Fund’s liabilities arise primarily through its exposure to the redemption of any shares that investors wish to sell. The Investment Manager endeavours to manage the Funds’ investments including cash, such that it can meet its liabilities. If investments cannot be realised in time to meet any potential liability, the Funds may borrow up to 10% of its Net Asset Value to provide short term cash to settle redemptions. It is expected that the weighted average maturity of each Fund will not exceed 60 days. However Funds redemptions may cause the average maturity to exceed 60 days temporarily and in the event of such an occurrence all best efforts will be made to reduce the average maturity to within 60 days. The Company has a committed facility arranged by J.P. Morgan Europe Limited and provided by a syndicate of international banks. If the Company receives aggregate requests for the redemption of shares in respect of 10% or more of the outstanding shares in any Funds or 10% or more of the Net Asset Value of the relevant Funds on any redemption day, the Company may elect to restrict the total number of shares redeemed to 10% of the outstanding shares in the Funds or to 10% of the Net Asset Value of the relevant Funds. In this case all requests will be scaled down on a pro-rata basis and shares which are not redeemed by reason of such refusal shall be treated as if a request for redemption had been made in respect of each subsequent redemption day until all shares to which the original request related have been redeemed. The remaining balance will be redeemed (subject always to the foregoing limit) in priority to subsequent redemption requests on the next redemption day. This procedure is in place to manage liquidity risk in the Company and to protect the interests of the remaining shareholders. As at 31 August 2019 (and as at 31 August 2018), redeemable participating shares are redeemable on demand, subject to the limitations described in the previous paragraph or during any period of temporary suspension of valuation of shares, sales and redemptions, and all other liabilities are repayable within one month. Market Risk Market Risk comprises Market Price Risk, Foreign Currency Risk, and Interest Rate Risk.

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Market Price Risk Market price risk arises from the uncertainty about future price movements on financial instruments held. It represents the potential loss the Company might suffer through holding market positions in the face of price movements. The value of investments is not fixed and may go down as well as up. This may be as a result of a specific factor affecting the value of an individual investment, or may be caused by general market factors. The Investment Manager considers the asset allocation of the portfolios in order to optimise the risk associated with particular countries or industry sectors whilst continuing to follow each Fund’s investment objective. The Investment Manager does not currently use derivative instruments to hedge the investment portfolios against market risk, as in its opinion the cost of such a process would result in an unacceptable reduction in the potential for capital growth The table below summarises the sensitivity of each Fund’s net assets attributable to redeemable participating shareholders to market price movements of bonds as at 31 August 2019 and 31 August 2018: Effect of a 10% Gain Effect of a 10% decline Effect of a 10% Gain Effect of a 10% decline in market prices in market prices in market prices in market prices Fund Currency 31 August 2019 31 August 2019 31 August 2018 31 August 2018 ‘000 ‘000 ‘000 ‘000 The United States Dollar Fund

USD 99,882 (99,882) 62,500 (62,500)

The Sterling Fund GBP 34,577 (34,577) 11,316 (11,316) The Euro Fund EUR 30,997 (30,997) 4,840 (4,840) Fair Value Estimation IFRS 13 requires the Company 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: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); • Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as

prices) or indirectly (i.e. derived from prices) (Level 2); and • Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs) (Level 3). The determination of what constitutes ‘observable’ requires significant judgement by the Company. The Company considers observable data to be that 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. The following tables analyse within the fair value hierarchy the Company’s financial assets measured at fair value as at 31 August 2019 and 31 August 2018:

2018 for comparison

2018 for comparison

2018 for comparison

Level 1 Level 2 Total Level 1 Level 2 Total The United States Dollar

‘000 ‘000 ‘000 ‘000 ‘000 ‘000 Financial assets at fair value through profit or

- Debt Securities 1,893,935 - 1,893,935 1,799,537 125,000 1,924,537 - Treasury Bills & Government Bonds - 148,822 148,822 - - - - Term Deposits 225,000 - 225,000 550,000 - 550,000 - Money Market Securities 2,776,797 - 2,776,797 4,009,654 - 4,009,654 - Reverse Repurchase Agreement - 850,000 850,000 500,000 - 500,000

Total 4,895,732 998,822 5,894,554 6,859,191 125,000 6,984,191

Level 1 Level 2 Total Level 1 Level 2 Total

The Sterling


- Debt Securities 396,921 101,994 498,915 338,478 64,999 403,477 - Treasury Bills and Government Bonds - 68,774 68,774 - 48,161 48,161 - Term Deposits 90,418 - 90,418 198,548 - 198,548 - Money Market Securities 367,002 - 367,002 452,477 - 452,477 - Reverse Repurchase Agreement - 175,000 175,000 - - -

Total 854,341 345,768 1,200,109 989,503 113,160 1,102,663

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For the financial year ended 31 August 2019 (continued) Fair Value Estimation (continued) The following tables analyse within the fair value hierarchy the Company’s financial assets measured at fair value as at 31 August 2019 and 31 August 2018 (continued):

Level 1 Level 2 Total Level 1 Level 2 Total The Euro


- Debt Securities 394,677 69,972 464,649 465,163 48,400 513,563 - Term Deposits 486,568 - 486,568 270,346 - 270,346 - Money Market Securities 657,221 - 657,221 910,734 - 910,734 - Reverse Repurchase Agreement - 240,000 240,000 - - -

Total 1,538,466 309,972 1,848,438 1,646,243 48,400 1,694,643

Instruments whose values are based on quoted market prices in active markets are classified within Level 1. The Company does not adjust the quoted price for these instruments. The Company uses valuation techniques to derive the fair value of certain short debt transferable securities classified within Level 2. Instruments whose values are based on evaluated market prices (adjusted by the vendor) are also classified within this Level. The Company does not have any Level 3 measurements. Transfers between levels of the fair value hierarchy are deemed to have occurred at the end of the financial year and are deemed to have occurred when the pricing source or methodology used to price an investment has changed which triggers a change in the level as defined under IFRS 13. There have been no significant transfers between the levels of the fair value hierarchy from 31 August 2018 to 31 August 2019. Foreign Currency Risk There is no foreign currency risk as each Fund only holds assets in the same currency as the currency of the shares in issue. Interest Rate Risk Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a fixed rate debt security can fall when interest rates rise and can rise when interest rates fall. Securities with longer maturity dates can be more sensitive to interest rate changes. As the permitted investments of the Funds entail trading in interest bearing securities, there is an exposure to interest rate risk. The Investment Manager manages this exposure by generally investing in instruments whose maturity or interest rate re-fixing date is less than 397 days. The Funds’ investment portfolio yield profiles are monitored regularly in pursuance of the investment objectives and policies as set out in the Prospectus of the Company. In adverse market conditions, a Fund’s investments may yield zero or negative returns which may impact on the return of a Fund and result in negative investment income. The interest rate profiles of the financial assets of each Fund as at 31 August 2019 and 31 August 2018 were as follows:

Fund United States Dollar Sterling Euro

31 August 2019 Fixed Interest Rate Securities - Weighted Average Interest Rate (%)1

0.79 0.50 (0.19) - Weighted Average Period until Maturity (days)2

68 54 40 31 August 2018 Fixed Interest Rate Securities - Weighted Average Interest Rate (%)1

3.00 0.67 (0.37) - Weighted Average Period until Maturity (days)3

41 49 41

1The Weighted Average Interest Rate is calculated on the par value of the underlying securities. This Weighted Average Interest Rate is not calculated on the same basis as the Fund Yield disclosed in the Investment Manager’s Overview. The Yields presented in the Overview are calculated based on market values rather than par values. 2Please note that only fixed interest securities have been included in the calculation of the above Weighted Average Period until Maturity (‘WAMs’). If all portfolio securities were included, the WAMs would be: 68 (ILFUSD), 65 (ILFGBP) and 42 (ILFEUR). 3Please note that only fixed interest securities have been included in the calculation of the above Weighted Average Period until Maturity (‘WAMs’).If all portfolio securities were included, the WAMs would be: 45 (ILFUSD), 49 (ILFGBP) and 41 (ILFEUR).

The Floating securities are denoted by "FRN" in the Schedule of Investments.

The table overleaf summaries the exposure of the Funds to interest rate risk as at 31 August 2019 and 31 August 2018. It includes the Funds’ financials assets and funds liabilities at fair values, categorized by the earlier of contractual re-pricing or maturity dates.

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For the financial year ended 31 August 2019 (continued) Interest Rate Risk (continued) The United States Dollar Fund As at 31 August 2019

Less than 1 month

USD ‘000

1 month 3 months USD ‘000

Over 3 months

USD ‘000

Non Interest Bearing

USD ‘000

Total

USD ‘000 Current Assets 2,173,002 2,274,027 1,447,525 134,219 6,028,773 Current Liabilities - - - (6,028,773) (6,028,773) Interest sensitivity gap 2,173,002 2,274,027 1,447,525 (5,894,554) -


USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 Current Assets 2,810,321 3,423,252 750,618 208,392 7,192,583 Current Liabilities - - - (7,192,583) (7,192,583) Interest sensitivity gap 2,810,321 3,423,252 750,618 (6,984,191) -

The Sterling Fund

Less than 1

month

1 month

3 months

Over 3

months

Non Interest

Bearing

Total As at 31 August 2019 GBP ‘000 GBP ‘000 GBP ‘000 GBP ‘000 GBP ‘000 Current Assets 434,380 437,370 328,359 608 1,200,717 Current Liabilities - - - (1,200,717) (1,200,717) Interest sensitivity gap 434,380 437,370 328,359 (1,200,109) -

As at 31 August 2018 GBP ‘000 GBP ‘000 GBP ‘000 GBP ‘000 GBP ‘000 Current Assets 589,008 271,839 241,816 454 1,103,117 Current Liabilities - - - (1,103,117) (1,103,117) Interest sensitivity gap 589,008 271,839 241,816 (1,102,663) -

The Euro Fund As at 31 August 2019

Less than 1 month

EUR ‘000

1 month 3 months EUR ‘000

Over 3 months

EUR ‘000

Non Interest Bearing

EUR ‘000

Total

EUR ‘000 Current Assets 1,099,129 478,756 270,553 253 1,848,691 Current Liabilities - - - (1,848,691) (1,848,691) Interest sensitivity gap 1,099,129 478,756 270,553 (1,848,438) -

As at 31 August 2018 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Current Assets 733,029 761,333 200,281 613 1,695,256 Current Liabilities - - - (1,695,256) (1,695,256) Interest sensitivity gap 733,029 761,333 200,281 (1,694,643) -

The sensitivity to changes in interest rates are assessed in the below tables: Should interest rates have fallen by 50 basis points (0.5%) with all other variables remaining constant, the increase in net assets attributable to redeemable participating shareholders for the year would be:

Fund United States Dollar Sterling Euro Currency USD ‘000 GBP ‘000 EUR ‘000 31 August 2019 29,473 6,001 9,242 31 August 2018 3,076 524 766 If interest rates had risen by 50 basis points (0.5%), with all other variables remaining constant, the decrease in net assets attributable to redeemable participating shareholders would be:

Fund United States Dollar Sterling Euro Currency USD ‘000 GBP ‘000 EUR ‘000 31 August 2019 (29,473) (6,001) (9,242) 31 August 2018 (3,076) (524) (766)

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Interest Rate Risk (continued) The Investment Manager uses an independent risk model to estimate the instrument level profit or loss impact of shifts in market parameters. The Fund level profit or loss is an aggregation of instrument profit or loss based on current holdings. The Funds have direct exposure to interest rate changes on the valuation and cash flows of its interest bearing assets and liabilities. However, it may also be indirectly affected by the impact of interest rate changes on the earnings of certain companies in which the Funds invest. The Investment Manager monitors the Funds’ characteristics in detail with the Investment Manager at least quarterly and in some cases monthly. The Investment Manager also reviews each Fund’s portfolio characteristics in their entirety. This review may include as appropriate a review of capitalisation, distribution, industry sector weights, price/book levels, portfolio duration, sector exposure, quality exposure and other key risk measures. The Funds’ other price risk is managed in accordance with the UCITS Regulations and the limits set forth in the Prospectus as described in the section “Investment Objectives and Risk”. Capital Risk Management The capital of the Funds is represented by the net assets attributable to redeemable participating shareholders. The amount of net assets attributable to redeemable participating shareholders is subject to subscriptions and redemptions at the discretion of the shareholders as well as changes resulting from the Company’s performance. Each Fund’s capital is managed by the Investment Manager so as to provide returns for shareholders and enable redemption requests to be met. In order to manage the Funds’ capital structure, arrangements are in place to: • Monitor liquidity relative to the assets under management and the dealing cycle. • Make appropriate adjustments to distributions the Funds pay to redeeming shareholders. • Redeem and issue new shares in accordance with the constitutional documents of the Company, which permit the restriction

of redemptions in certain circumstances and require certain minimum holdings and subscriptions. Efficient Portfolio Management The Funds may employ investment techniques and instruments for efficient portfolio management purposes only, subject to the conditions and within the limits from time to time laid down by the Central Bank. Any such technique or instrument must be one which (alone or in combination with one or more other techniques or instruments) is believed by the Investment Manager to be economically appropriate to the efficient portfolio management of a Fund, i.e. the use of a technique or instrument may only be undertaken for the purposes of one or more of the following: (a) a reduction in risk; (b) a reduction in costs; or (c) the generation of additional capital or income for the Sub-Fund with an appropriate level of risk, taking into account the risk profile of the Fund and the general provisions of the UCITS Regulations. During the financial year ended 31 August 2019, the Funds did not employ efficient portfolio management techniques. (2018: None) 8. Taxation Under current law and practice the Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. On that basis, it is not chargeable to Irish tax on its income or gains. However, Irish tax may arise on the happening of a ‘chargeable event’. A chargeable event includes any distribution payments to shareholders, any encashment, redemption, cancellation or transfer of shares and the holding of shares at the end of each eight year period beginning with the acquisition of such shares. No Irish tax will arise on the Company in respect of chargeable events in respect of: a) a shareholder who is neither Irish resident nor ordinarily resident in Ireland for tax purposes, at the time of the chargeable event, provided appropriate valid declarations in accordance with the provisions of the Taxes Consolidation Act, 1997, as amended, are held by the Company or the Company has been authorised by the Irish Revenue to make gross payments in the absence of appropriate declarations; and b) certain exempted Irish tax resident shareholders who have provided the Company with the necessary signed statutory declarations. Dividends, interest and capital gains (if any) received on investments made by the Company may be subject to taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Company or its shareholders.

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9. Dividends It is policy of the Company to distribute and reinvest dividends on a daily basis (with the exception of Flex Distributing Class F shares which are reinvested on a monthly basis) based on the net investment income available for distribution (including interest income) and the excess of realised capital gains over realised losses, if any, in respect of investments of the Company. No distributions were declared from capital. In respect of Accumulating shares, the Directors have determined to accumulate all net income and net realised capital gains attributable to the redeemable participating shares. The following dividends were declared during the year ended 31 August 2019 and 31 August 2018:

Fund 31 August 2019 31 August 2018 The United States Dollar Fund USD $ 48,395,689 USD $ 25,971,816 The Sterling Fund GBP £ 1,785,209 GBP £ 777,284 The Euro Fund EUR (€ 452,234)* EUR (€ 1,475,559)* The Canadian Dollar Fund** - CAD $ 211,468

The following dividends were payable during the year: Fund 31 August 2019 31 August 2018 The United States Dollar Fund USD $ 1,311,075 USD $ 1,047,529 The Sterling Fund GBP £ 16,955 GBP £ 4,265 The Euro Fund - EUR (€ 59,161)* The Canadian Dollar Fund** - - * Disinvestment of dividends due to negative income. Dividend per share amounts on each sub-fund are immaterial to disclose. ** The CAD Fund was terminated on 23 August 2018. 10. Segregated Liability The Company is established as an umbrella fund with segregated liability between Funds. Pursuant to the Companies Act 2014 (as amended), the assets of one Fund are not available to satisfy the liabilities of, or attributable to, another Fund. Any liability incurred or attributable to any one Fund may only be discharged solely out of the assets of that Fund. However, the Company may operate or have assets in countries other than Ireland which may not recognise segregation between Funds and there is no guarantee that creditors of one Fund will not seek to enforce one Fund’s obligations against another Fund. 11. Share Capital The Authorised Share Capital is one trillion shares of no par value. As at 31 August 2019 there were 7 (2018: 7) subscriber shares in issue and 2,586,374,648 (2018: 2,387,921,728) participating shares in issue. Subscriber shares do not form any part of the Net Asset Value of the Company. They are disclosed in the financial statements by way of this Note only. Holders of subscriber shares are not entitled to dividends or any surplus of assets or liabilities upon the winding up of the Company. There are some differences in the voting rights in respect of the Flex Distributing Share Classes detailed below: In The Euro Fund and the Sterling Fund Flex Distributing Shares may be issued in the following Classes: Class A, Class B and Class F. In The United States Dollar Fund, Flex Distributing Shares may be issued in the following Classes: Class A, Class B, Class C and Class F. Flex Distributing Shares shall be issued in two Series: • Series 1 shall comprise shares with full voting rights. • Series 2 shall comprise shares with restricted voting rights in respect of any resolution relating to the appointment, removal or

replacement of a Director of the Company. 12. Soft Commissions From 3 January 2018, as a result of the Markets in Financial Instruments Directive II (“MiFID II”) adopted by ESMA, research and advisory services are no longer paid out of commissions arising from the Company’s portfolio transactions. There were no costs incurred by the Company during the financial year (2018: None).

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For the financial year ended 31 August 2019 (continued) 13. Significant events during the financial year On 31 August 2018, the Central Bank noted an administration agreement between the Manager and J.P. Morgan Administration Services (Ireland) Limited (“JP Morgan”) pursuant to which the Manager delegated certain administrative functions in respect of the Company (exclusive of registrar and transfer agency services) to JP Morgan with effect from 00:01 on 1 September 2018.

On 3 September 2018, the Central Bank noted the second addendum to the Prospectus dated 19 January 2018 reflecting the appointment of JP Morgan as Administrator of the Company, the closure of The Canadian Dollar Fund and changes in the composition of the boards of the Company and the Manager.

The MMF Regulation came into force on the 21 July 2018 and applied to new money market funds ("MMFs") from that date. It has applied to existing MMFs from 21 January 2019.

Article 44(1) of the MMF Regulation requires existing UCITS and AIFs, that fall within the scope of the MMF Regulation, to submit an application for authorisation to the Central Bank.

In the context of the Company, the United States Dollar Fund, the Sterling Fund and the Euro Fund have each been converted to LVNAV MMFs to comply with the new Regulation.

The Prospectus was updated on 4 February 2019 in respect of The Sterling Fund and The United States Dollar Fund to reflect certain requirements of the MMF Regulation, including the conversion of The Sterling Fund and The United States Dollar Fund LVNAV MMFs under the MMF Regulation.

On 4 February 2019, the Central Bank noted the third addendum to the Prospectus dated 19 January 2018 reflecting the fact that the prospectus dated 4 February 2019 did not apply to The Euro Fund.

The revised Prospectus dated 18 March 2019 replaced the previous Prospectus versions dated 19 January 2018 (as amended) and 4 February 2019. This revised Prospectus reflects the revocation of approval of The Canadian Dollar Fund, a former sub-fund of the Company, the conversion of The Euro Fund to a LVNAV MMF and creation of three new short-term VNAV MMF sub-funds of the Company, namely The Sterling VNAV Fund, The Euro VNAV Fund and The United States Dollar VNAV Fund. There have been no other significant events affecting the Company during the financial year. 14. Post Balance Sheet Events

Following the United Kingdom vote to leave the European Union (“EU”) on 23 June 2016, commonly referred to as “BREXIT”, the Company and the wider Fidelity International Group have been considering the implications of BREXIT. While at the time of finalisation of these financial statements, the ultimate outcome is still uncertain, the Board of Directors has considered the key risks and possible impacts, including the impact of a “hard” or negative BREXIT outcome. Specific BREXIT related management actions have included availing of the UK regulator FCA Temporary Permission Regime (“TPR”) in March 2019. Ms. Éimhín Ní Mhuircheartaigh resigned as a Director of the Company effective 13 September 2019. There have been no other significant post balance sheet events affecting the Company since the financial year end. 15. Approval of Financial Statements The Directors approved the Financial Statements on 29 November 2019.

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Depositary Report to the Shareholders

We, J.P. Morgan Bank (Ireland) plc, appointed Depositary to Fidelity Institutional Liquidity Fund plc (the “Company”) provide this report solely in favour of the Shareholders of the Company for the year ended 31 August 2019 (the “Accounting Period”).

This report is provided in accordance with the UCITS Regulations – European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended, (the “Regulations”). We do not, in the provision of this report, accept nor assume responsibility for any other purpose or to any other person to whom this report is shown.

In accordance with our Depositary obligation as provided for under the Regulations, we have enquired into the conduct of the Company for the Accounting Period and we hereby report thereon to the Shareholders of the Company as follows; We are of the opinion that the Company has been managed during the Accounting Period, in all material respects: (i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the constitutional

documents and the Regulations; and

(ii) otherwise in accordance with the provisions of the constitutional documents and the Regulations.

For and on behalf of J.P. Morgan Bank (Ireland) plc 200 Capital Dock 79 Sir John Rogerson’s Quay Dublin 2, D02 RK57 Ireland 29 November 2019

69


Independent Auditors’ report to the Members of Fidelity Institutional Liquidity Fund plc (‘the Company’)

Report on the audit of the financial statements

Opinion

In our opinion, Fidelity Institutional Liquidity Fund plc’s financial statements:

• give a true and fair view of the Company’s and each of the Funds’ assets, liabilities and financial position as at 31 August 2019 and of their results and cash flows for the year then ended;

• have been properly prepared in accordance with International Financial Reporting Standards (“IFRSs”) as adopted by the European Union; and

• have been properly prepared in accordance with the requirements of the Companies Act 2014 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended).

We have audited the financial statements, included within the Annual Report and Financial Statements, which comprise:

• the Combined Statement of Financial Position of the Company and the Statement of Financial Position of each of its Funds as at 31 August 2019;

• the Combined Statement of Comprehensive Income of the Company and the Statement of Comprehensive Income of each of its Funds for the year then ended;

• the Combined Statement of Cash Flows of the Company and the Statement of Cash Flows of each of its Funds for the year then ended;

• the Combined Statement of Changes in Net Assets attributable to redeemable participating shareholders of the Company and the Statement of Changes in Net Assets attributable to redeemable participating shareholders of each of its Funds for the year then ended;

• the Schedule of Investments for each of the Funds as at 31 August 2019; and

• the notes to the financial statements which include a description of the significant accounting policies.

Our opinion is consistent with our reporting to the Board of Directors.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (Ireland) (“ISAs (Ireland)”) and applicable law.

Our responsibilities under ISAs (Ireland) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Ireland, which includes IAASA’s Ethical Standard as applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

To the best of our knowledge and belief, we declare that non-audit services prohibited by IAASA’s Ethical Standard were not provided to the Company.

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

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Our audit approach

Overview

Materiality • Overall materiality: 50 basis points of Net Asset Value ("NAV") at 31 August 2019 for each of

the Company’s Funds.

Audit scope • The Company is an open-ended investment Company with variable capital and engages FIL

Fund Management (Ireland) Limited (the “Manager”) to manage certain duties and responsibilities with regards to the day-to-day management of the Company. We tailored the scope of our audit taking into account the types of investments within the Funds, the involvement of the third parties referred to overleaf, the accounting processes and controls, and the industry in which the Company operates. We look at each of the Funds at an individual level.

Key audit matters • Valuation and existence of financial assets at fair value through profit and loss.

The scope of our audit

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we looked at where the directors made subjective judgements, for example the selection of pricing sources to value the investment portfolio. As in all of our audits, we also addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Key audit matters

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

Key audit matter How our audit addressed the key audit matter

Valuation and existence of financial assets at fair value through profit and loss The financial assets at fair value through profit and loss as at 31 August 2019 are valued at USD $9.4bn and comprises of investments in term deposits, certificates of deposit, commercial papers, reverse repurchase agreements, government and corporate bonds. Investments are the primary driver of net asset value in the financial statements and therefore the valuation and existence of investments was the focus of our audit work.

PwC have confirmed the valuation and existence of term deposits, certificates of deposit, commercial papers and reverse repurchase agreements with the relevant counterparties. We have confirmed the existence of government and corporate bonds with the depository and independently re-priced these using quoted market prices. No material misstatements were identified as a result of the procedures performed.

How we tailored the audit scope

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking into account the structure of the Company, the accounting processes and controls, and the industry in which it operates.

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As at 31 August 2019 there are 3 Funds operating. The Company's Combined Statement of Financial Position, Combined Statement of Comprehensive Income, Combined Statement of Cash Flows and Combined Statement of Changes in Net Assets attributable to redeemable participating shareholders are an aggregation of the positions and results of the Funds.

The directors control the affairs of the Company and are responsible for the overall investment policy which is determined by them. The Company engages the Manager to manage certain duties and responsibilities with regards to the day to day management of the Company. The Manager has delegated certain responsibilities to FIL Investments International (the ‘Investment Manager’) and to J.P. Morgan Administration Services (Ireland) Limited (the ‘Administrator’). The financial statements, which remain the responsibility of the directors, are prepared on their behalf by the Administrator. The Company has appointed J.P. Morgan Bank (Ireland) plc (the “Depositary”) to act as Depositary of the Company’s assets. In establishing the overall approach to our audit we assessed the risk of material misstatement at a Fund level, taking into account the nature, likelihood and potential magnitude of any misstatement. As part of our risk assessment, we considered the Company’s interaction with the Administrator, and we assessed the control environment in place at the Administrator.

Materiality

The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements of each of the Company’s Funds as follows:

Overall materiality and how we determined it

50 basis points (2018: 50 basis points) of Net Asset Value ("NAV") at 31 August 2019 for each of the Company’s Funds.

Rationale for benchmark applied We have applied this benchmark because the main objective of the Company is to provide investors with a total return at a Fund level, taking account of the capital and income returns.

We agreed with the Board of Directors that we would report to them misstatements identified during our audit above 5 basis points of each Funds’ NAV, for NAV per share impacting differences (2018: 5 basis points of each Funds’ NAV, for NAV per share impacting differences) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which ISAs (Ireland) require us to report to you where:

• the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company’s and Funds’ ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s and Funds’ ability to continue as going concerns.

Reporting on other information

The other information comprises all of the information in the Annual Report and Financial Statements other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

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With respect to the Directors’ Report, we also considered whether the disclosures required by the Companies Act 2014 have been included.

Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (Ireland) and the Companies Act 2014 require us to also report certain opinions and matters as described below:

Directors’ Report

• In our opinion, based on the work undertaken in the course of the audit, the information given in the Directors’ Report for the year ended 31 August 2019 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

• Based on our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Directors’ Report.

Corporate governance statement

• In our opinion, based on the work undertaken in the course of the audit of the financial statements, the description of the main features of the internal control and risk management systems in relation to the financial reporting process included in the Corporate Governance Statement, is consistent with the financial statements and has been prepared in accordance with section 1373(2)(c) of the Companies Act 2014.

• Based on our knowledge and understanding of the Company and its environment obtained in the course of the audit of the financial statements, we have not identified material misstatements in the description of the main features of the internal control and risk management systems in relation to the financial reporting process included in the Corporate Governance Statement.

• In our opinion, based on the work undertaken during the course of the audit of the financial statements, the information required by section 1373(2)(a),(b),(e) and (f) of the Companies Act 2014 is contained in the Corporate Governance Statement.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of Directors' responsibilities set out on page 4, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view.

The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company’s and Funds’ ability to continue as going concerns, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the IAASA website at:

https://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f-a98202dc9c3a/Description_of_auditors_responsibilities_for_audit.pdf.

This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance with section 391 of the Companies Act 2014 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

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Other required reporting

Companies Act 2014 opinions on other matters

• We have obtained all the information and explanations which we consider necessary for the purposes of our audit.

• In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited.

• The financial statements are in agreement with the accounting records.

Companies Act 2014 exception reporting

Directors’ remuneration and transactions

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

Appointment

We were appointed by the directors on 29 June 1995 to audit the financial statements for the year ended 31 August 1996 and subsequent financial periods. The period of total uninterrupted engagement is 24 years, covering the years ended 31 August 1996 to 31 August 2019.

Liam O'Mahony for and on behalf of PricewaterhouseCoopers Chartered Accountants and Statutory Audit Firm Dublin 29 November 2019

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Statement of Changes in Investments (Unaudited)



Listed below are the material cumulative investments purchases and sales during the financial year ended 31 August 2019. In accordance with UCITS Regulations, a material change is defined as aggregate purchases and sales of a security exceeding 1 per cent of the total value of purchases and sales respectively. If there are fewer than 20 material changes the Fund shall disclose at least 20 purchases/sales.

Security

Major purchases for the financial year ended

31 August 2019 USD ‘000

Major sales for the financial year ended

31 August 2019 USD ‘000

Credit Agricole SA 2.74% 08/04/2019 250,000 BNP Paribas SA 2.77% 16/04/2019 250,000 Kingdom of Netherlands 0.00% 02/10/2018 249,787 Cooperatieve Rabobank UA 0.00% 04/04/2019 243,418 Agence Centrale des Organismes de Securite Sociale 0.00% 29/03/2019 199,940 Credit Agricole SA 2.38% 02/01/2019 175,000 State of the Netherlands 0.00% 29/10/2018 162,858 Bank of Montreal 0.00% 01/10/2018 149,768 Deutsche Bahn AG 0.00% 04/10/2018 149,733 Mitsubishi Corporation Finance plc 0.00% 04/02/2019 149,677 Agence Centrale des Organismes de Securite Sociale 0.00% 03/06/2019 149,665 Deutsche Bahn AG 0.00% 16/07/2019 149,355 Santander UK plc 0.00% 01/04/2019 148,999 Landeskreditbank Baden-Wuerttemberg Foerderbank 0.00% 02/01/2020 148,308 Nestle Finance International Ltd. 0.00% 07/12/2018 127,755 Landeskreditbank Baden-Wuerttemberg Foerderbank 0.00% 04/01/2019 127,009 Oversea-Chinese Banking Corp. Ltd. 0.00% 04/01/2019 125,224 Mizuho Bank Ltd. 2.81% 01/03/2019 125,000 Standard Chartered Bank 2.88% 27/03/2019 125,000 MUFG Bank Ltd. 2.77% 01/04/2019 125,000 Cooperatieve Rabobank UA 0.00% 04/01/2019 124,296 Kingdom of Netherlands 0.00% 07/01/2019 99,897 DekaBank Deutsche Girozentrale 0.00% 25/01/2019 54,864 KBC Bank NV 0.00% 06/11/2018 49,914 Credit Agricole Corporate and Investment Bank 0.00% 13/11/2018 24,962 La Banque Postale SA 0.00% 17/01/2019 24,953 Sumitomo Mitsui Trust Bank Ltd. 0.00% 09/04/2019 24,931

A full list is available from the Administrator upon request.

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The Sterling Fund


Security


31 August 2019 GBP ‘000


31 August 2019 GBP ‘000

Svenska Handelsbanken AB 0.76% 14/01/2019 50,001 MUFG Bank Ltd. 0.79% 02/01/2019 50,000 Agence Centrale des Organismes de Securite Sociale 0.00% 29/10/2018 49,986 Sumitomo Trust and Banking Co. Ltd. 0.00% 02/01/2019 49,898 Toyota Motor Finance (Netherlands) BV 0.00% 26/09/2018 44,994 Barclays Bank plc 0.95% 09/03/2020 40,000 Agence Centrale des Organismes de Securite Sociale 0.00% 12/04/2019 36,976 Toyota Kreditbank GmbH 0.00% 10/04/2019 35,921 Credit Agricole SA 0.77% 02/01/2019 35,000 Lloyds Bank plc 0.88% 28/05/2019 35,000 Mizuho Bank Ltd. 0.00% 01/03/2019 34,916 ABN AMRO Bank NV 0.00% 07/02/2019 34,912 Swedbank AB 0.00% 27/02/2020 34,859 Swedbank AB 0.00% 27/08/2019 34,846 DekaBank Deutsche Girozentrale 0.00% 13/02/2019 31,930 Agence Centrale des Organismes de Securite Sociale 0.00% 15/11/2018 31,495 Rabobank International 0.97% 20/05/2019 30,006 Nationwide Building Society 0.87% 15/07/2019 30,000 Dexia Credit Local SA 0.82% 14/10/2019 30,000 HSBC Bank plc 0.91% 03/11/2019 30,000 Lloyds Bank plc 0.88% 28/05/2019 35,002 ABN AMRO Bank NV 0.00% 07/02/2019 34,945 DekaBank Deutsche Girozentrale 0.00% 13/02/2019 31,958 Santander UK plc 0.81% 07/08/2019 25,001 Standard Chartered Bank 0.00% 25/01/2019 24,980 Sumitomo Mitsui Banking Corp. 0.00% 01/10/2019 24,978 Sumitomo Mitsui Banking Corp. 0.00% 11/12/2018 24,978 Sumitomo Mitsui Banking Corp. 0.00% 01/07/2019 24,971 Mizuho Bank Ltd. 0.00% 16/01/2019 24,956 Citibank NA 0.79% 10/12/2018 22,001 DekaBank Deutsche Girozentrale 0.00% 05/09/2019 19,972 Sumitomo Mitsui Banking Corp. 0.87% 05/02/2019 19,966 HSBC Bank plc 0.00% 06/09/2019 19,951 Swedbank AB 0.00% 03/09/2019 19,942 Nordea Bank Abp 0.00% 15/08/2019 18,959 Banque Federative du Credit Mutuel SA 0.00% 14/09/2018 16,498 Nationwide Building Society 0.87% 25/07/2019 15,002 Toyota Kreditbank GmbH 0.00% 22/08/2019 14,984 Honda Finance Europe plc 0.00% 19/02/2019 14,970 ABN AMRO Bank NV 0.73% 09/11/2018 10,000 MUFG Bank Ltd. 0.00% 31/07/2019 9,982 Nordea Bank Abp 0.00% 28/11/2019 9,967 Cooperatieve Rabobank UA 0.00% 06/12/2019 9,966 Svenska Handelsbanken AB 0.00% 25/07/2019 4,998

76




The Sterling Fund (continued)


Security


31 August 2019 EUR ‘000


31 August 2019 EUR ‘000

Dexia Credit Local SA 0.00% 20/08/2019 4,996 HSBC Bank plc 0.00% 25/09/2019 4,992


77




The Euro Fund


Security


31 August 2019 EUR ‘000


31 August 2019 EUR ‘000

Toyota Motor Finance (Netherlands) BV 0.00% 28/08/2019 75,005 Toyota Motor Finance China Co. Ltd. 0.00% 23/08/2019 73,002 Agence Centrale des Organismes de Securite Sociale 0.00% 09/01/2019 70,006 Oesterreichische Kontrollbank AG 0.00% 26/11/2018 69,552 Agence Centrale des Organismes de Securite Sociale 0.00% 31/10/2018 65,016 KBC Bank NV 0.00% 02/01/2019 60,063 MUFG Bank Ltd. 0.00% 02/01/2019 60,061 Citibank NA 0.00% 02/01/2019 60,057 Citibank NA 0.00% 01/04/2019 60,053 Airbus Finance BV 0.00% 31/10/2018 60,021 Toyota Motor Finance (Netherlands) BV 0.00% 08/08/2019 60,001 Toyota Motor Finance (Netherlands) BV 0.00% 13/08/2019 60,001 Toyota Motor Finance (Netherlands) BV 0.00% 14/08/2019 60,001 Toyota Motor Finance (Netherlands) BV 0.00% 15/08/2019 60,001 Toyota Motor Finance (Netherlands) BV 0.00% 26/06/2019 60,001 Agence Centrale des Organismes de Securite Sociale 0.00% 29/03/2019 60,001 Toyota Motor Finance (Netherlands) BV 0.00% 12/08/2019 55,002 Toyota Motor Finance China Co. Ltd. 0.00% 02/05/2019 55,001 Toyota Motor Finance (Netherlands) BV 0.00% 09/08/2019 55,001 Agence Centrale des Organismes de Securite Sociale 0.00% 28/03/2019 52,004 DekaBank Deutsche Girozentrale 0.00% 23/08/2019 35,006 Sumitomo Mitsui Banking Corp. 0.00% 10/07/2019 30,011 Credit Agricole SA 0.00% 03/12/2018 30,006 Swedbank AB 0.00% 27/08/2019 30,003 ING Bank NV 0.00% 23/11/2018 30,002 Svenska Handelsbanken AB 0.00% 19/08/2019 25,010 DekaBank Deutsche Girozentrale 0.00% 20/03/2019 20,005 DekaBank Deutsche Girozentrale 0.00% 15/08/2019 20,002 DZ BANK AG Deutsche Zentral-Genossenschaftsbank 0.00% 10/04/2019 10,006 Svenska Handelsbanken AB 0.00% 05/12/2018 10,005 DZ BANK AG Deutsche Zentral-Genossenschaftsbank 0.00% 01/03/2019 8,003 Procter & Gamble Co. (The) 0.00% 17/10/2018 7,003 Svenska Handelsbanken AB 0.00% 20/08/2019 5,008 National Australia Bank Ltd. 0.00% 14/06/2019 5,006 Credit Agricole SA 0.00% 09/04/2019 5,002 Citibank NA 0.00% 01/04/2019 5,002 Procter & Gamble Co. (The) 0.00% 25/02/2019 5,002 DekaBank Deutsche Girozentrale 0.00% 01/10/2018 5,001 Oesterreichische Kontrollbank AG 0.00% 24/09/2018 5,001


78


Unaudited Supplementary Information For the financial year ended 31 August 2019

Remuneration Policy Fidelity Institutional Liquidity Fund plc (the "Company") is managed by FIL Fund Management (Ireland) Limited (‘FFM(I)L’), a wholly owned subsidiary of FIL Limited (‘FIL’). FFM(I)L will take reasonable steps to ensure that any decisions are consistent with the overall business strategy, objectives and the Global Remuneration Policy of the FIL Group (consisting of FIL and its subsidiaries) and try to manage any conflicts of interest which may arise. The FIL Group Remuneration Committee has established a Global Remuneration Policy to ensure the requirements of the UCITS Directive are met at a global level for all its UCITS management companies, including FFM(I)L. The Remuneration Committee reviews the remuneration policy at least annually to reflect the relevant local market practices and regulatory requirements applicable from time to time. The Directors of the relevant management company are responsible for the adoption of the Global Remuneration Policy, for reviewing its general principles at least annually, for overseeing its implementation and for ensuring compliance with applicable local legislation and regulation. The Global Remuneration Policy is consistent with and promotes sound and effective risk management and is designed not to encourage risk-taking which is inconsistent with the risk profile of FFM(I)L and the Fund. The Global Remuneration Policy is in line with the business strategy, objectives, values and interests of FFM(I)L and the Fund and includes measures to avoid conflicts of interest. There were no material changes to the Global Remuneration Policy to report during the financial year. The Global Remuneration Policy applies to all employees, with a focus on the staff whose professional activities have a material impact on the risk profile of the relevant management company or fund (the ‘Identified Staff’). The Identified Staff are individuals whose roles can materially affect the risk of the management company or any UCITS fund that it manages. These roles are identified in line with the requirements of the UCITS Directive and guidance issued by the European Securities and Markets Authority. Identified Staff supporting FFM(I)L, include the following individuals:

a) Senior Management (Registered Directors); b) Risk Takers (Senior Management Team); and c) Staff Engaged in Control Functions (Risk, Compliance, Audit, HR and Finance). FFM(I)L does not employ staff directly so the total remuneration to be disclosed under this remuneration disclosure for the financial year is NIL. The fees received by independent Directors of FFM(I)L do not have any variable component. The aggregate total remuneration paid to the Identified Staff, considering all existing delegation arrangements, is EUR 8.88 million. It should be noted that this remuneration information is that which was disclosed by the delegate, in its annual report for its financial period ended 30 June 2019 and is an aggregate figure disclosed by the Investment Manager for its relevant staff and is not specific to the Fund. For any additional on the Global Remuneration Policy, a summary is available at https://www.fil.com.

The Securities Financing Transactions Regulation

The Securities Financing Transactions Regulation (“SFTR”) came into force on 12 January 2016 and introduced additional disclosures around securities lending, repurchase agreement/reverse repurchase agreements, total return swaps (TRSs) and other lending/borrowing transactions in annual and semi-annual financial statements, published after 13 January 2017. The SFTR came about due to what was perceived as ‘shadow banking’ risk in the securities financing markets and aims to reduce this risk by improving transparency in the securities financing markets in a number of ways:

• By imposing conditions on the ‘reuse’ of collateral, so that clients and counterparties understand the risks involved and give their consent to the reuse.

• By requiring managers to make detailed disclosures to their investors of the use they make of Securities Financing Transactions (SFTs) both in their periodic financial statements and pre-contractual documentation; and

• By requiring counterparties to report SFTs to a trade repository so as to provide transparency to regulators on the use of SFTs by market participants.

The following disclosures relate to a reverse repurchase agreement investment held by the Company as at 31 August 2019 which may be considered a Security Financing Transaction under the SFTR.

79



Collateral Issuer

As at 31 August 2019, the total value, in USD of collateral received from government and international institutions for the security lending are as follows: Sub-fund name Currency Ranking Issuer Name Market Value The United States Dollar Fund USD 1 United States 413,145,937

1 France 314,166,164 2 Germany 105,592,252 1 Austria 17,095,728 Total 850,000,081

As at 31 August 2019, the total value, in GBP of collateral received from government and international institutions for the security lending are as follows: Sub-fund name Currency Ranking Issuer Name Market Value The Sterling Fund GBP 1 United Kingdom 59,999,996

1 France 39,945,238 2 Germany 54,766 Total 100,000,000

As at 31 August 2019, the total value, in EUR of collateral received from government and international institutions for the security lending are as follows: Sub-fund name Currency Ranking Issuer Name Market Value The Euro Fund EUR 1 France 69,738,331

1 The Netherlands 19,619,608 1 Germany 16,346,502 1 Austria 14,261,672 2 Germany 33,887 Total 120,000,000 Collateral received As at 31 August 2019, the following cash collateral has been received from counterparties:

Sub-fund name Currency Citigroup Global Markets Ltd

Barclays Bank Plc London BNP Paribas

The United States Dollar Fund USD 550,000,000 300,000,000 - The Sterling Fund GBP - 75,000,000 100,000,000 The Euro Fund EUR - - 240,000,000 Analysis of Collateral received as at 31 August 2019 The collateral which consists of cash is held by the Depositary and has not been reused. There are no restrictions on the reuse of

collateral. As at 31 August 2019, the analysis of the collateral received is as follows:

Collateral Market Value in Collateral Maturity Tenor Collateral Sub-fund name Currency Type Sub-fund Currency Quality of Collateral Currency The United States Dollar Fund USD Cash 850,000,081 N/A Less than 1 Day USD The Sterling Fund GBP Cash 100,000,000 N/A Less than 1 Day GBP The Euro Fund EUR Cash 120,000,000 N/A Less than 1 Day EUR

80



Return and Cost of Securities Financing Transactions The return (dividend income and realised and unrealised gains and losses) and costs of the securities financing transactions for the financial year ended 31 August 2019 are as follows:

Sub-fund name Currency Asset Type

Return of the sub-fund

‘000 % of Total

Return

Cost of the sub-fund

(‘000) % of Cost

The Euro Fund EUR Reverse Repurchase Agreement - 100.00 (517) 100.00

The Sterling Fund GBP Reverse Repurchase Agreement 1,310 100.00 - 100.00

The United States Dollar Fund USD Reverse Repurchase Agreement 18,579 100.00 - 100.00

81


DDiirreeccttoorryy

Directors of the Company Transfer Agent, Registrar & Secretary

Ms. Denise Kinsella* (Ireland) (Chairperson) FIL Fund Management (Ireland) Limited Mr. David Greco (USA) George’s Quay House

Mr. Nick King (UK) 43 Townsend Street Ms. Éimhín Ní Mhuircheartaigh (Ireland) (Resigned 13 September 2019) Dublin 2, D02 VK65

Ms. Catherine Fitzsimons (Ireland) Ireland

All Directors are Non-Executive. General Distributor *Independent Director as defined under the rules of Euronext Dublin. FIL Distributors (formerly the Irish Stock Exchange) Pembroke Hall

42 Crow Lane Fidelity Institutional Liquidity Fund plc Pembroke HM19 Registered Office Bermuda George’s Quay House 43 Townsend Street Depositary Dublin 2, D02 VK65 J.P. Morgan Bank (Ireland) plc Ireland 200 Capital Dock 79 Sir John Rogerson’s Quay Investment Manager Dublin 2, D02 RK57 FIL Investments International Ireland Oakhill House 130 Tonbridge Road Administrator

Hildenborough J.P. Morgan Administration Services (Ireland) Limited

Kent TN11 9DZ 200 Capital Dock

United Kingdom 79 Sir John Rogerson’s Quay

Dublin 2, D02 RK57

Manager Ireland FIL Fund Management (Ireland) Limited

George’s Quay House Sponsoring Broker 43 Townsend Street J & E Davy Dublin 2, D02 VK65 Davy House

Ireland 49 Dawson Street

Dublin 2 Independent Auditors Ireland PricewaterhouseCoopers

One Spencer Dock Company Secretary

North Wall Quay FIL Fund Management (Ireland) Limited

Dublin 1 George’s Quay House

Ireland 43 Townsend Street

Dublin 2, D02 VK65

Ireland

82
