Annual Report & Financial Statements · 3/31/2016 · WAY MA Portfolio Certification of Financial Statements by Directors of the ACD For the year ended 31 March 2016 Directors' Certification

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WAY MA Portfolio

Annual Report &

Financial Statements

For the year ended 31 March 2016

Page

WAY MA Portfolio

Authorised Corporate Director’s (“ACD”) Report* 3

Certification of Financial Statements by Directors of the ACD* 4

Statement of the ACD’s Responsibilities 5

Statement of the Depositary’s Responsibilities 6

Report of the Depositary to the Shareholders of the Company 6

Independent Auditor’s Report to the Shareholders of

WAY MA Portfolio 7

Accounting Policies and Financial Instruments 9

Individual Funds Investment Commentary and Financial

Statements

WAY Absolute Return Portfolio Fund 15

WAY Charteris Gold and Precious Metals Fund 34

WAY Green Portfolio Fund 57

WAY MA Cautious Portfolio Fund 79

General Information 101

Contact Information 104

* Collectively, these comprise the ACD’s Report.

conte

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WAY MA Portfolio

Authorised Corporate Director's Report

We are pleased to present the Annual Report & audited Financial Statements for WAY MA Portfolio for the year

ended 31 March 2016.

Authorised Status

WAY MA Portfolio ("the Company") is an investment company with variable capital incorporated in England and

Wales under registered number IC000660 and authorised by the Financial Conduct Authority ("FCA"), with effect

from 29 May 2008. The Company has an unlimited duration.

Shareholders are not liable for the debts of the Company.

Head Office: the Head Office of the Company is at Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset,

BH21 7SB.

The Head Office is the address of the place in the UK for service on the Company of notices or other documents

required or authorised to be served on it.

Structure of the Company

The Company is structured as an umbrella company, in that different Funds may be established from time to time

by the ACD with the approval of the FCA. On the introduction of any new Fund or Share Class, a revised

prospectus will be prepared setting out the relevant details of each Fund or Share Class.

The Company is a non-UCITS retail scheme ("NURS").

The assets of each Fund will be treated as separate from those of every other Fund and will be invested in

accordance with the investment objective and investment policy applicable to that Fund. Investment of the assets

of each of the Funds must comply with the FCA's Collective Investment Schemes' Sourcebook ("COLL"), the FCA's

Investment Funds Sourcebook ("FUND") and the investment objective and policy of the relevant Fund.

Currently the Company has four Funds. In the future there may be other Funds established.

Under the Alternative Investment Fund Managers Directive (“AIFMD”) we are required to disclose remuneration

information (see page 102) in regards to those individuals whose actions have a material impact on the risk profile

of the Company.

Crossholdings

There were no Shares in any fund held by any other fund of the Company.

Important events during the year

The Investment Association (IA) has published, in accordance with FRS 102, a revised Statement of

Recommended Practice (SORP) in May 2014 which supersedes the previous SORP for the preparation of Financial

Statements by UK Authorised Funds. The recommendations of this SORP are applicable to accounting periods

beginning on or after 1 January 2015 and therefore have been applied in these Financial Statements.

Base Currency:

The base currency of the Company is Pounds Sterling.

Share Capital:

The minimum Share Capital of the Company is £1 and the maximum is £100,000,000,000. Shares in the Company

have no par value. The Share Capital of the Company at all times equals the sum of the Net Asset Values of each

of the Funds.

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WAY MA Portfolio

Certification of Financial Statements by Directors of the ACD


Directors' Certification

This report has been prepared in accordance with the requirements of COLL and FUND, as issued and amended by

the FCA. We hereby certify the report on behalf of the Directors of WAY Fund Managers Limited.

The Directors are of the opinion that it is appropriate to continue to adopt the going concern basis in the

preparation of the Financial Statements as the assets of the Funds consist predominantly of securities that are

readily realisable, and accordingly, the Funds have adequate resources to continue in operational existence for the

foreseeable future.

V. Hoare

P. Legg

WAY Fund Managers Limited

2 June 2016

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WAY MA Portfolio

Statement of the ACD’s Responsibilities


The Authorised Corporate Director (“ACD”) of WAY MA Portfolio (“Company”) is responsible for preparing the

Annual Report and the Financial Statements in accordance with the Open-Ended Investment Companies

Regulations 2001 (“the OEIC Regulations”), the FCA’s Collective Investment Schemes’ Sourcebook (“COLL”), the

FCA’s Investment Funds Sourcebook (“FUND”) and the Company’s Instrument of Incorporation.

The OEIC Regulations and COLL require the ACD to prepare Financial Statements for each annual accounting year

which:

• are in accordance with United Kingdom Generally Accepted Accounting Practice (“United Kingdom Accounting

Standards and applicable law”), including FRS 102 “The Financial Reporting Standard applicable in the UK and

Republic of Ireland” and the Statement of Recommended Practice: “Financial Statements of Authorised Funds”

issued by the Investment Management Association (“IMA SORP”) in May 2014; and

• give a true and fair view of the financial position of the Company and each of its sub funds as at the end of that

year and the net revenue and the net capital gains or losses on the property of the Company and each of its sub

funds for that period.

In preparing the Financial Statements, the ACD is required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards and the IMA SORP have been followed, subject to any

material departures disclosed and explained in the Financial Statements; and

• prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that

the Company will continue in operation.

The ACD is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time

the financial position of the Company and enable them to ensure that the Financial Statements comply with the

applicable IMA SORP and United Kingdom Accounting Standards and applicable law. The ACD is also responsible

for the system of internal controls, for safeguarding the assets of the Company and for taking reasonable steps for

the prevention and detection of fraud and other irregularities.

In accordance with COLL 4.5.8BR and FUND 3.3.2R, the Annual Report and the audited Financial Statements were

approved by the Board of Directors of the ACD of the Company and authorised for issue on 2 June 2016.

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WAY MA Portfolio

Statement of the Depositary’s Responsibilities


The Depositary must ensure that the Company is managed in accordance with the Financial Conduct Authority’s

Collective Investment Schemes Sourcebook, and, from (22 July 2014/date of AIFMD authorisation) the Investment

Funds Sourcebook, the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228), as amended, the

Financial Services and Markets Act 2000, as amended, (together “the Regulations”), the Company’s Instrument of

Incorporation and Prospectus (together “the Scheme documents”) as detailed below.

The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the interests

of the Company and its investors.

The Depositary is responsible for the safekeeping of all custodial assets and maintaining a record of all other

assets of the Company in accordance with the Regulations.

The Depositary must ensure that:

• the Company’s cash flows are properly monitored and that cash of the Company is booked into the cash

accounts;

• the sale, issue, repurchase, redemption and cancellation of shares are carried out;

• the value of shares of the Company are calculated;

• any consideration relating to transactions in the Company’s assets is remitted to the Company within the usual

time limits;

• the Company’s income is applied in accordance with the Regulations; and

• the instructions of the Alternative Investment Fund Manager (“the AIFM”) are carried out (unless they conflict

with the Regulations).

Report of the Depositary to the Shareholders of the Company


The Depositary also has a duty to take reasonable care to ensure that Company is managed in accordance with

the Scheme documents and the Regulations in relation to the investment and borrowing powers applicable to the

Company.

Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the

Company, it is our opinion, based on the information available to us and the explanations provided, that in all

material respects the Company, acting through the AIFM:

(i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Company’s

shares and the application of the Company’s income in accordance with the Regulations, the Scheme documents

of the Company, and

(ii) has observed the investment and borrowing powers and restrictions applicable to the Company.

State Street Trustees Limited

UK Trustee and Depositary Services

2 June 2016

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WAY MA Portfolio

Independent Auditor’s Report to the Shareholders of WAY MA Portfolio


We have audited the Financial Statements of WAY MA Portfolio (“the Company”) for the year ended 31 March

2016 which comprise of the Accounting Policies and Financial Instruments notes and for each sub-fund: the

Statements of Total Return, the Statements of Change in Net Assets Attributable to Shareholders, the Balance

Sheets, the Distribution Tables and individual notes. The financial reporting framework that has been applied in

their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted

Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of

Ireland“, the Statement of Recommended Practice: “Financial Statements of Authorised Funds” issued by the

Investment Management Association in May 2014, the Collective Investment Schemes Sourcebook and the

Instrument of Incorporation.

This report is made solely to the Company’s Shareholders, as a body, in accordance with Paragraph 4.5.12R of the

Collective Investment Schemes Sourcebook of the FCA. Our audit work has been undertaken so that we might

state to the Company’s Shareholders those matters we are required to state to them in an auditor’s report and for

no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone

other than the Company and the Company’s Shareholders as a body, for our audit work, for this report, or for the

opinions we have formed.

Respective Responsibilities of the Depositary, the ACD and the Auditor

As explained more fully in the Statement of the Depositary’s Responsibilities and the Statement of the ACD’s

Responsibilities, the Depositary is responsible for safeguarding the property of the Company and the ACD is

responsible for the preparation of the Financial Statements. Our responsibility is to audit and express an opinion

on the Financial Statements in accordance with the requirements of the Collective Investment Schemes

Sourcebook, applicable law and International Standards on Auditing (UK and Ireland). Those standards require us

to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the Financial Statements

An audit involves obtaining evidence about the amounts and disclosures in the Financial Statements sufficient to

give reasonable assurance that the Financial Statements are free from material misstatement, whether caused by

fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Company’s

circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant

accounting estimates made by the ACD; and the overall presentation of the Financial Statements. In addition, we

read all the financial and non-financial information in the annual report to identify material inconsistencies with the

audited Financial Statements and to identify any information that is apparently materially incorrect based on, or

materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become

aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on Financial Statements

In our opinion the Financial Statements:

• give a true and fair view of the financial position of the sub funds as at 31 March 2016 and of the net revenue

or expense and the net capital gains or losses on the property of the sub funds for the year ended 31 March 2016;

• are in accordance with United Kingdom Generally Accepted Accounting Practice (“United Kingdom Accounting

Standards and applicable law”), including FRS 102 “The Financial Reporting Standard applicable in the UK and

Republic of Ireland” and the Statement of Recommended Practice: “Financial Statements of Authorised Funds”

issued by the Investment Management Association (“IMA SORP”) in May 2014; and

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,

the Statement of Recommended Practice “Financial Statements of Authorised Funds”, the rules in the Collective

Investment Schemes Sourcebook and the Instrument of Incorporation.

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WAY MA Portfolio

Independent Auditor’s Report to the Shareholders of WAY MA Portfolio (continued)


Opinion on other matters prescribed by the Collective Investment Schemes Sourcebook

In our opinion:

• proper accounting records for the sub funds have been kept and the Financial Statements are in agreement

with those records;

• we have received all the information and explanations which, to the best of our knowledge and belief, were

necessary for the purposes of our audit; and

• the information disclosed in the Annual Report for the year ended 31 March 2016 for the purpose of complying

with Paragraph 4.5.9R of the Collective Investment Schemes Sourcebook is consistent with the Financial

Statements.

Deloitte LLP

Chartered Accountants and Statutory Auditor

Edinburgh, United Kingdom

2 June 2016

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WAY MA Portfolio

Accounting Policies and Financial Instruments


1 Accounting Basis And Policies

(a) Basis of accounting

(b) Realised and unrealised gains and losses

(c) Recognition of revenue

(d) Treatment of stock and special dividends

Special dividends are reviewed on a case by case basis in determining whether the dividend is to be treated

as revenue or capital. Amounts recognised as revenue will form part of the distributable revenue. The tax

treatment follows the treatment of the principal amount.

Any reported revenue from an offshore fund, in excess of any distribution received in the reporting year, is

recognised as revenue no later than the date on which the reporting fund makes this information available.

The ordinary element of stock dividends received in lieu of cash dividends is credited to capital in the first

instance followed by a transfer to revenue of the cash equivalent being offered and this forms part of the

distributable revenue.

Interest on bank and other cash deposits is recognised on an accruals basis.

All revenue includes withholding taxes but excludes irrecoverable tax credits.

Dividends on quoted equities and preference Shares are recognised when the securities are quoted ex-

dividend and are recognised net of attributable tax credits.

Rebates of annual management charges on underlying investments are accounted for on an accruals basis

and recognised as revenue or capital in line with the treatment of the charge on the underlying Fund.

Revenue from debt securities is accounted for on an effective yield basis. Accrued interest on purchase and

sale contracts is recognised as revenue and transferred to revenue or capital as appropriate.

Distributions from Collective Investment Schemes are recognised when the schemes are quoted ex-

distribution. Equalisation returned with the distribution is deducted from the cost of the investment and

does not form part of the distributable revenue.

The Financial Statements have been prepared under the historical cost basis, as modified by the revaluation

of investments and in accordance with FRS 102 “The Financial Reporting Standards Applicable in the UK and

Republic of Ireland” and the Statement of Recommended Practice (“SORP”) for Financial Statements of

Authorised Funds issued by the Investment Management Association in May 2014.

As described in the Certification of Financial Statements by Directors of the ACD on page 4, the ACD

continues to adopt the going concern basis in the preparation of the Financial Statements of the Funds.

Realised gains or losses have been calculated as the proceeds from disposal less book cost. Where realised

gains or losses include gains or losses which have arisen in previous years, a corresponding loss or gain is

included in unrealised gains or losses.

This is the first year that the Company has presented its Financial Statements under FRS 102 issued by the

Financial Reporting Council. The last Financial Statements under previous UK GAAP were for the year ended

31 March 2015 and the date of transition to FRS 102 was therefore 1 April 2014. There has not been a

significant impact as a consequence of adopting FRS 102 for the first time.

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WAY MA Portfolio

Accounting Policies and Financial Instruments (continued)


1 Accounting Basis And Policies (continued)

(e) Treatment of expenses

(f) Allocation of revenue and expenses to multiple Share Classes and Funds

(g) Taxation

(h) Distribution policy

(i) Basis of valuation of investments

The ACD has elected to pay all revenue less expenses charged to revenue and taxation as a final

distribution at the end of the annual accounting year.

Interim distributions may be made at the ACD's discretion.

Listed investments are valued at close of business bid prices excluding any accrued interest in the case of

fixed interest securities, on the last business day of the accounting year.

The net revenue after taxation, as disclosed in the Financial Statements, after adjustment for items of a

capital nature, is distributable to Shareholders as dividend distributions. Any revenue deficit is deducted

from capital.

Expenses of the Fund are charged against revenue except for Stamp Duty Reserve Tax ("SDRT") and costs

associated with the purchase and sale of investments which are allocated to the capital of the Fund.

Rebates on the fees payable to the ACD are accounted for on an accruals basis and recognised as revenue

or capital based on the expense policy of the underlying fund. Rebates on the fees payable to the ACD are

netted off against the expense to which they relate.

Any revenue or expenses not directly attributable to a particular Share Class or Fund will normally be

allocated pro-rata to the net assets of the relevant Share Classes and Funds.

Corporation tax is provided for on the income liable to corporation tax less deductible expenses.

Tax is provided for using tax rates and laws which have been enacted or substantively enacted at the

balance sheet date.

Deferred tax is provided using the liability method on all timing differences arising on the treatment of

certain items for taxation and accounting purposes, calculated at the rate at which it is anticipated the

timing differences will reverse. Deferred tax assets are recognised only when, on the basis of available

evidence, it is more likely than not that there will be taxable profits in the future against which the deferred

tax asset can be offset.

In addition, the SDRT and portfolio transaction charges will be charged wholly to the capital of the Fund.

Accordingly, the imposition of such charges may constrain the capital growth of the Fund.

Corporation tax is provided for on realised gains on non-reporting offshore funds less deductible expenses.

Deferred tax is provided for on unrealised gains on non-reporting offshore funds less deductible expenses.

Where tax has been deducted from revenue that tax can, in some instances, be set off against the

corporation tax payable, by way of double tax relief.

SDRT suffered on surrender of Shares is deducted from capital. SDRT has been abolished from 30 March

2014 for OEICs.

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WAY MA Portfolio




(i) Basis of valuation of investments (continued)

(j) Exchange rates

(k) Dilution levy

(l) Equalisation

(m) Set up costs

(n) Derivatives

(o) Valuation techniques

i) Valuation techniques using observable market data

For WAY MA Portfolio, there are no investments which are valued using observable data.

Some of the Funds may enter into permitted transactions such as derivative contracts or forward foreign

currency transactions. Where these transactions are used to protect or enhance revenue, the revenue and

expenses are included within net revenue in the Statement of Total Return.

Where the transactions are used to protect or enhance capital, the gains/losses are treated as capital and

included within gains/losses on investments in the Statement of Total Return. Any open positions in these

types of transactions at the year end are included in the Balance Sheet at their mark to market value.

Valuation techniques should maximise the use of observable market data, such as publicly available

information about actual events or transactions, and minimise the use of non-observable data. Observable

market data should be observable for substantially the full term of the instrument. Typically this category

will include over-the-counter instruments (OTCs), instruments priced via multi-broker quotes or evaluated

pricing techniques, exchange-traded instruments where the market is persistently not active and

instruments subject to fair value pricing adjustments made by reference to observable market data.

Example include OTC derivatives, debt securities, convertible bonds, mortgage-backed securities, asset-

backed securities and less frequently traded open-ended funds.

Set up costs are written off as they are incurred.

Transactions in foreign currencies are recorded in Sterling at the rate ruling at the date of the transactions.

Assets and liabilities expressed in foreign currencies at the end of the accounting year are translated into

Sterling at the closing mid market exchange rates ruling on that date.

After averaging it is returned with the distribution as a capital repayment. It is not liable to income tax but

must be deducted from the cost of the Shares for Capital Gains tax purposes.

No derivatives were held during the period covered by this report (2015: £Nil).

The ACD may require a dilution levy on the sale and redemption of Shares if, in its opinion, the existing

Shareholders (for sales) or remaining Shareholders (for redemptions) might otherwise be adversely

affected. In particular, the dilution levy may be charged in the following circumstances: where the scheme

property is in continual decline; on a Fund experiencing large levels of net sales relative to its size; on ‘large

deals’; in any case where the ACD is of the opinion that the interests of remaining Shareholders require the

imposition of a dilution levy.

Equalisation applies only to Shares purchased during the distribution period (Group 2 Shares). It represents

the accrued revenue included in the purchase price of the Shares.

Market value is defined by the SORP as fair value which is the bid value of each security.

Collective Investment Schemes are valued at quoted bid prices for dual priced funds and at quoted prices

for single priced funds, on the last business day of the accounting year.

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WAY MA Portfolio




(o) Valuation techniques (continued)

ii) Valuation techniques using non-observable data

2 Derivatives and other financial instruments

(a) Foreign currency risk

(b) Interest rate risk profile of financial assets and liabilities

For WAY MA Portfolio, there are no investments which are valued using non observable data.

The Company did not have any long term financial liabilities at the balance sheet date.

The main risks from the Company’s holding of financial instruments, together with the ACD’s policy for

managing these risks, are disclosed below:

A significant portion of the Company’s assets or the underlying assets of the Collective Investment Schemes

in which the Company invests may be denominated in a currency other than the base currency of the

Company or Class. There is the risk that the value of such assets and/or the value of any distributions from

such assets may decrease if the underlying currency in which assets are traded falls relative to the base

currency in which Shares of the relevant Fund are valued and priced.

(ii) Identification and evaluation of risks and control objectives.

(iv) Formal procedures for monitoring, reporting, escalation and remedial follow-up action.

(v) An independent and permanent risk management function in regards to portfolio management.

The control environment on which the ACD’s Risk Management Policies ("RMP") has been developed is

based on six key characteristics:

Non-observable entity specific data is only used where relevant observable market data is not available.

Typically this category will include single broker-priced instruments, suspended/unquoted securities, private

equity, unlisted close-ended funds and open-ended funds with restrictions on redemption rights.

The interest rate risk is the risk that the value of the Company's investments will fluctuate due to changes in

the interest rate. Cashflows from floating rate securities, bank balances, or bank overdrafts will be affected

by the changes in interest rates. As the Company's objective is to seek capital growth, these cashflows are

considered to be of secondary importance and are not actively managed.

The Company is not required to hedge its foreign currency risk, although it may do so through foreign

currency exchange contracts, forward contracts, currency options and other methods. To the extent that the

Company does not hedge its foreign currency risk or such hedging is incomplete or unsuccessful, the value

of the Company’s assets and revenue could be adversely affected by currency exchange rate movements.

There may also be circumstances in which a hedging transaction may reduce currency gains that would

otherwise arise in the valuation of the Company in circumstances where no such hedging transactions are

undertaken.

(vi) An independent and permanent risk management function in regards to the firm.

In pursuing the investment objectives a number of financial instruments are held which may comprise

securities and other investments, cash balances and debtors and creditors that arise directly from

operations. Derivatives, such as futures or forward currency contracts, may be utilised for hedging purposes.

(i) Commitment, from senior management and all employees, to a control ethic based on competence and

integrity.

(iii) Control and information procedures that identify and capture relevant and reliable data to monitor risks

within pre-determined limits.

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WAY MA Portfolio




(c) Credit risk

(d) Liquidity risk

(e) Market price risk

Increase Decrease Increase Decrease

Fund Name £ £ £ £

WAY Absolute Return Portfolio Fund 751,420 (751,420) 907,015 (907,015)

WAY Charteris Gold and Precious Metals Fund 594,539 (594,539) 359,450 (359,450)

WAY Green Portfolio Fund 455,331 (455,331) 481,327 (481,327)

WAY MA Cautious Portfolio Fund 2,421,945 (2,421,945) 2,385,042 (2,385,042)

2016 2015

If market prices had increased by 10% as at the balance sheet date, the net asset value of the Fund would

have increased by the following amounts. If market prices had decreased by 10% as at the balance sheet

date, the net asset value of the Fund would have decreased by the following amounts. These calculations

have been applied to non-derivative securities only (see note 2 (h) for an explanation of the Fund’s leverage

during the period). These calculations assume all other variables remain constant.

Subject to the Regulations, the Company may invest up to and including 20% of the Scheme Property of the

Company in transferable securities which are not approved securities (essentially transferable securities

which are admitted to official listing in an EEA state or traded on or under the rules of an eligible securities

market). Such securities and instruments are generally not publicly traded, may be unregistered for

securities law purposes and may only be able to be resold in privately negotiated transactions with a limited

number of purchasers. The difficulties and delays associated with such transactions could result in the

Company’s inability to realise a favourable price upon disposal of such securities, and at times might make

disposition of such securities and instruments impossible. To the extent the Company invests in securities

and instruments the terms of which are privately negotiated, the terms of such securities and instruments

may contain restrictions regarding resale and transfer.

In addition, certain listed securities and instruments, particularly securities and instruments of smaller

capitalised or less seasoned issuers, may from time to time lack an active secondary market and may be

subject to more abrupt or erratic price movements than securities of larger, more established companies or

stock market averages in general. In the absence of an active secondary market the Company’s ability to

purchase or sell such securities at a fair price may be impaired or delayed.

The Company invests principally in Collective Investment Schemes. The value of these investments are not

fixed and may go down as well as up. This may be the result of a specific factor affecting the value of an

individual equity or be caused by general market factors (such as government policy or the health of the

underlying economy) which can affect the entire portfolio. The Investment Manager seeks to minimise these

risks by holding a diversified portfolio of Collective Investment Schemes in line with the Company’s

objectives. In addition, the management of the Company complies with the FCA's COLL sourcebook, which

includes rules prohibiting a holding greater than 35% of assets in any one Fund.

The Company may find that companies in which it invests fail to settle their debts on a timely basis. The

value of securities issued by such companies may fall as a result of the perceived increase in credit risk.

Adhering to investment guidelines and avoiding excessive exposure to one particular issuer can limit credit

risk.

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WAY MA Portfolio



2 Derivatives and other financial instruments (continued)

(f) Counterparty risk

(g) Operational risk

(h) Leverage

(i) Fair value of financial assets and financial liabilities

High level controls include effective segregation of duties, trade confirmation checking and reconciliation

procedures, incident reporting and oversight of delegated functions.

There is no material difference between the value of the financial assets and liabilities, as shown in the

balance sheet, and their fair value.

Transactions in securities entered into by the Company give rise to exposure to the risk that the

counterparties may not be able to fulfil their responsibility by completing their side of the transaction. The

Investment Manager minimises this risk by conducting trades through only the most reputable

counterparties.

Counterparty risk is also managed by limiting the exposure to individual counterparties through adherence

to the investment spread restrictions included within the Company’s prospectus and COLL.

Operational risk is the risk of loss arising from systems failure, human error, fraud or external events. When

controls fail to perform, operational risks can cause damage to reputation, have legal or regulatory

implications, or lead to financial loss. The Company cannot eliminate operational risks but, through the

continual review and assessment of its control environment, by monitoring and responding to potential risks,

they can be managed.

The Fund’s exposure is defined with reference to the ‘Commitment’ method. Commitment method exposure

is calculated as the sum of all positions of the Fund, after netting off derivative and security positions and is

disclosed within the individual Funds’ Financial Statements Note 14(c).

In accordance with the Alternative Investment Managers Directive (“AIFMD”) and the new SORP issued in

May 2014, as ACD we are required to disclose any leverage of the Fund. Leverage is defined as any method

by which the Fund increases its exposure through borrowing or the use of derivatives (calculated in

accordance with the commitment method approach (AIFMR article 8)) divided by the net asset value.

14

WAY Absolute Return Portfolio Fund

Investment Manager’s Report


Investment Objective

The objective of the Fund is to achieve long term capital appreciation in the form of a positive absolute return for

investors in all market conditions on a 12 month basis. Capital invested in the Fund is at risk and there is no

guarantee that the investment objective will be met over the 12 month period or in respect of any other period.

Investment Policy

The Fund will aim to achieve its investment objective by utilising a diversified portfolio of transferable securities

(including investment trusts), Collective Investment Schemes, warrants, cash or near cash, deposits and money

market instruments focussing on investment in a selection of closed ended investment funds which themselves

seek to deliver absolute returns using a variety of suitable strategies.

Subject to the requirements of the Regulations, the portfolio will normally remain fully invested. There will,

however, be no restrictions on the underlying content of the investments held, in terms of investment type,

geographical or economic sector, other than those imposed by the Regulations, meaning that the Investment

Adviser has the absolute discretion to weight the portfolio towards any investment type or sector at any time.

However, not more than 10% of the value of the Fund shall consist of units and/or shares in Collective Investment

Schemes. The Fund may also invest in unregulated Collective Investment Schemes (where investment in such

funds is consistent with the investment objective and policy of the Fund).

The use of derivatives and/or hedging transactions are permitted in connection with the efficient portfolio

management of the Fund, and borrowing will be permitted in accordance the Regulations. The Fund may, in

addition to its other investment powers, use derivatives and forward transactions for investment purposes. It is

not intended that the use of derivatives in this way will change the risk profile of the Fund.

Investment Review

In the year under review there was speculation in the USA as to whether the economy was strong enough to

support a move to the “normalisation” of interest rates. In the event the Federal Reserve Board increased the

Federal Funds rate in December, a move which it subsequently appeared to regret. In the UK rates again

remained on hold throughout the year and the politico-economic debate became increasingly focussed on the

European referendum set for 23 June. In Japan there were faltering attempts to revive the economy. In Europe

Mr Draghi at the European Central Bank pursued a policy of quantitative easing and indeed figures released after

the end of the review period showed that Eurozone GDP eventually clawed its way back to the levels previously

reached before the 2008/9 financial crisis. In China there was much concern as to the possibility of a hard landing

which led to gyrations on the stock market.

Bond markets remained strong during the period with yields on 10 year US Treasuries, for example, falling to

1.77%1. The US dollar was marginally strong against Sterling. Oil, along with most other commodities, was weak

during the period, whereas gold continued to rally. The MSCI World measure of equities appreciated by some

9.8%2.

The Absolute Return Fund depreciated by 8.41%3

over the period. The poorest performer was the US activist

company, Pershing square Holdings, which suffered not least because of its investment in the pharmaceuticals

company, Valeant, to which it is now applying significant management time. Credit spreads widened during the

period. It is probable that mark to market valuations on many of the positions understated “intrinsic value”.

Boussard and Gavaudan, the hedge fund, and Empiric Student Property were strong performers.

During the year positions were taken in AEW, a property company, and Catco, a catastrophe insurer. Alcentra

European Floating Rate Income Fund was realised to make way for other investments. Towards the end of the

period a variety of exchange traded funds were purchased to diversify the portfolio. Indeed after the end of the

review period substantial funds have flowed into the fund and this diversifying policy has been continued.

15


Investment Manager’s Report (continued)


Outlook

The Fund will continue to be invested in a highly diversified range of instruments including investment trusts,

exchange traded funds, equities and bonds and assets with a low correlation to equities and bonds.

Sources 1 www.fullertreacymoney.com

2 Financial Express, GBP

3 Apex Fund Services (UK) Limited valuations – Share Class E Accumulation.

Investment Manager

WM Capital Management Limited

3 May 2016

16


Performance record

As at 31 March 2016

31/03/16 31/03/15 31/03/14 31/03/16 31/03/15 31/03/14

(p) (p) (p) (p) (p) (p)

Change in net assets per Share

Opening net asset value per Share 119.50 117.12 112.24 117.09 112.96 106.77

Return before operating charges* (9.57) 5.51 7.32 (9.46) 5.35 7.52

Operating charges (2.36) (2.45) (2.44) (1.18) (1.22) (1.33)

Return after operating charges* (11.93) 3.06 4.88 (10.64) 4.13 6.19

Distributions on income shares (1.38) (0.68) 0.00 - - -

Closing net asset value per Share 106.19 119.50 117.12 106.45 117.09 112.96 Retained distributions on accumulation - - - 2.51 2.03 0.00

* after direct transaction costs of: 0.09 0.33 0.17 0.09 0.33 0.17

Performance

Return after operating charges (9.98%) 2.61% 4.35% (9.09%) 3.66% 5.80%

Other information

Closing net asset value 224,338 315,156 329,919 5,883,589 7,035,734 113

Closing number of Shares 211,251 263,729 281,693 5,526,947 6,008,842 100

Operating charges (excluding 2.04% 2.06% 2.13% 1.04% 1.06% 1.13%

Performance fee)

Performance fee 0.00% 0.00% 0.00% 0.00% 0.00% 0.08%

Direct transaction costs 0.09% 0.33% 0.17% 0.09% 0.33% 0.17%

Prices

Highest Share price 121.40 121.31 118.07 119.18 118.15 113.72

Lowest Share price 107.92 116.85 112.01 106.78 112.75 106.60

31/03/16 31/03/15 31/03/14 31/03/16 31/03/15 31/03/14

(p) (p) (p) (p) (p) (p)






Distributions on income shares (2.47) (2.26) 0.00 - - -

Closing net asset value per Share 102.21 115.13 113.01 112.69 123.94 119.49 Retained distributions on accumulation - - - 2.65 1.90 0.00


Performance


Other information

Closing net asset value 58,444 5,767 113 24,645 27,104 2,570,207

Closing number of Shares 57,181 5,009 100 21,869 21,869 2,150,919


Performance fee)

Performance fee 0.00% 0.00% 0.08% 0.00% 0.00% 0.01%


Prices



A Income E Accumulation

E Income Institutional Accumulation

17


Performance record (continued)

As at 31 March 2016

31/03/16 31/03/15 31/03/14 31/03/16 31/03/14

(p) (p) (p) (p) (p)


Opening net asset value per Share 121.00 117.33 111.88 120.67 112.39

Return before operating charges* (9.73) 5.53 7.32 (9.65) 7.28

Operating charges (1.81) (1.86) (1.87) (1.77) (1.88)

Return after operating charges* (11.54) 3.67 5.45 (11.42) 5.40

Distributions on income shares - - - (1.06) 0.00

Closing net asset value per Share 109.46 121.00 117.33 108.19 117.79 Retained distributions on accumulation 0.00 1.29 0.00 - -

* after direct transaction costs of: 0.09 0.33 0.17 0.09 0.17

Performance

Return after operating charges (9.54%) 3.13% 4.87% (9.46%) 4.80%

Other information

Closing net asset value 186,793 208,572 163,766 157,597 5,063

Closing number of Shares 170,648 172,368 139,574 145,661 4,298

Operating charges (excluding 1.54% 1.56% 1.63% 1.54% 1.63%

Performance fee)

Performance fee 0.00% 0.00% 0.00% 0.00% 0.00%

Direct transaction costs 0.09% 0.33% 0.17% 0.09% 0.17%

Prices

Highest Share price 123.05 122.12 118.27 121.38 118.73

Lowest Share price 109.81 117.08 111.67 109.59 112.17

Share Class Retail Income has no units for the period from 28 August 2014 to 4 August 2015.

31/03/16 31/03/15 31/03/14 31/03/16 31/03/15 31/03/14

(p) (p) (p) (p) (p) (p)






Distributions on income shares (1.71) (1.12) 0.00 (2.11) (1.46) 0.00

Closing net asset value per Share 92.26 103.86 101.79 101.62 114.42 112.13


Performance


Other information

Closing net asset value 565,773 517,731 80,467 1,228,632 1,302,864 1,123,038

Closing number of Shares 613,246 498,485 79,050 1,209,000 1,138,655 1,001,508


Performance fee)

Performance fee 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%


Prices



Retail Accumulation

S Income T Income

Retail Income

18


Performance Information

As at 31 March 2016

Total Expense Ratios

Total

Performance Other Transaction expense

AMC fee* expenses costs ratios

Date (%) (%) (%) (%) (%)

Share Class A 1.50 0.00 0.50 0.04 2.04

Share Class E 0.50 0.00 0.50 0.04 1.04

Share Class Institutional 0.50 0.00 0.50 0.04 1.04

Share Class Retail 1.00 0.00 0.50 0.04 1.54

Share Class S 1.00 0.00 0.50 0.04 1.54

Share Class T 0.80 0.00 0.50 0.04 1.34

Share Class A 1.50 0.00 0.53 0.03 2.06

Share Class E 0.50 0.00 0.53 0.03 1.06

Share Class Institutional 0.50 0.00 0.53 0.03 1.06

Share Class Retail 1.00 0.00 0.53 0.03 1.56

Share Class S 1.00 0.00 0.53 0.03 1.56

Share Class T 0.80 0.00 0.53 0.03 1.36

Risk Warning

An investment in an Open-Ended Investment Company should be regarded as a medium to long term investment.

Investors should be aware that the price of Shares and the income from them may fall as well as rise and

investors may not receive back the full amount invested. Past performance is not a guide to future performance.

Investments denominated in currencies other than the base currency of a Fund are subject to fluctuation in

exchange rates, which may be favourable or unfavourable.

31/03/16

31/03/15

The Total Expense Ratio ("TER") is the total expenses paid by the Fund in the year, annualised, against its

average Net Asset Value. The TER will fluctuate as underlying costs change.

*Performance fee is applied under certain conditions.

The amount of Performance Fee payable in respect of each Calculation Period is a Sterling amount equivalent to

the product of (a) the Net Asset Value per Share on the last Business Day of the relevant Calculation Period (b)

the excess performance within the qualifying performance band (c) the relevant performance fee increment (%)

and, (d) the weighted average number of Shares in issue during the Calculation Period.

The Performance Fee will be calculated and accrued daily but will only become payable annually in arrears in

respect of each discrete period of twelve months ending on 31 March in each year (the 'Annual Calculation

Period'). The Performance Fee will accrue daily as if each day were the end of an Annual Calculation Period.

19


Portfolio Statement

As at 31 March 2016

Holdings

or Nominal Market value % of Total

Value Investments £ Net Assets

Asia 0.37% [0.00%]Collective Investment Schemes 0.37% [0.00%]

883 iShares Asia Property Yield 15,267 0.19238 SPDR Citi Asia Local Government Bond 15,263 0.18

30,530 0.37

Europe 31.82% [32.45%]

Investment Companies 30.45% [32.45%]

881,300 Blackstone GSO Loan Financing 577,742 6.93

47,184 Boussard & Gavaudan 634,660 7.62

874,775 Chenavari Capital Solutions 747,933 8.98

598,540 CVC Credit Partners European Opportunities 576,095 6.92

2,536,430 30.45

Collective Investment Schemes 1.37% [0.00%]

391 db x-trackers - STOXX Europe 600 Health Care 35,057 0.42

139 iShares Euro Government Bond 15-30yr 26,417 0.32

3,810 iShares Euro Government Bond 20yr Target Duration 16,269 0.19

2,272 SPDR S&P Euro Dividend Aristocrats 36,624 0.44

114,367 1.37

Global 23.69% [32.23%]


628,500 Catco Reinsurance Opportunities 541,039 6.50

69,641 DW Catalyst 703,374 8.44

61,600 Third Point Offshore Investors 607,255 7.29

1,851,668 22.23


5,393 ETFS Grains 14,965 0.18

595 iShares Developed Markets Property Yield 10,425 0.12

548 iShares Global AAA-AA Government Bond 35,673 0.43

488 SPDR Barclays 1 - 5 Year Gilt 24,995 0.30

1,771 SPDR Morningstar Multi-Asset Global Infrastructure 35,779 0.43

121,837 1.46

United Kingdom 15.23% [7.11%]

Real Estate Investment Trust 14.45% [7.11%]

800,000 AEW UK REIT 756,000 9.08

409,428 Empiric Student Property 447,300 5.37

1,203,300 14.45


188 iShares Core GBP Corporate Bond 25,423 0.30

190 iShares GBP Corporate Bond 0-5yr 19,897 0.24

150 iShares UK Gilts 0-5yr 20,005 0.24

65,325 0.78

United States of America 19.10% [24.71%]


1,229,000 Carador Income 516,190 6.20

831,783 NB Distressed Debt Investment 519,702 6.24

45,415 Pershing Square Holdings 438,559 5.26

1,474,451 17.70

20


Portfolio Statement (continued)

As at 31 March 2016

Holdings

or Nominal Market value % of Total

Value Investments £ Net Assets


10,197 iShares $ Treasury Bond 20+yr 34,815 0.42

7,792 iShares Gold Producers 46,245 0.56

445 iShares USD Corporate Bond 35,234 0.42

116,294 1.40

Portfolio of investments 7,514,202 90.21Net other assets 815,609 9.79

Net assets 8,329,811 100.00

The investments have been valued in accordance with note 1(i) of the Accounting Policies and Financial Instruments.

All investments are Collective Investment Schemes unless otherwise stated.

Comparative figures shown above in square brackets relate to 31 March 2015.

Gross purchases for the year: £3,242,284 [2015: £9,247,869] (See Note 15).

Total sales net of transaction costs for the year: £3,761,639 [2015: £4,016,035] (See Note 15).

21


Statement of Total Return


Note £ £ £ £

Income

Net capital (losses)/gains 2 (1,037,979) 125,113

Revenue 3 321,830 195,086

Expenses 4 (101,413) (84,177)

Interest payable and similar charges 5 (264) (289)

Net revenue before taxation 220,153 110,620

Taxation 6 (31,451) -

Net revenue after taxation 188,702 110,620

Total return before distributions (849,277) 235,733

Distributions 7 (188,703) (110,614)

Change in net assets attributable to

Shareholders from investment activities (1,037,980) 125,119

Statement of Change in Net Assets Attributable to Shareholders


£ £ £ £

Opening net assets attributable

to Shareholders 9,412,928 4,272,686

Amounts received on issue of Shares 2,232,612 8,114,980

Less: Amounts paid on cancellation of Shares (2,420,534) (3,224,449)

(187,922) 4,890,531

Dilution levy charged - 280

Stamp duty reserve tax* - (203)

Change in net assets attributable to Shareholders

from investment activities (see above) (1,037,980) 125,119

Retained distribution on accumulation Shares 142,785 124,515

Closing net assets attributable


* Abolished from 30 March 2014 for OEICs.

01/04/14 to 31/03/15

01/04/14 to 31/03/1501/04/15 to 31/03/16

01/04/15 to 31/03/16

22


Balance Sheet

As at 31 March 2016

Note £ £ £ £

Assets

Fixed assets:

Investment 7,514,202 9,070,147

Current assets:

Debtors 8 7,942 126,969

Cash and bank balances 9 898,300 256,369

Total current assets 906,242 383,338

Total assets 8,420,444 9,453,485

Liabilities

Investment liabilities - -

Creditors:

Distribution payable on income Shares (41,887) (24,078)

Other creditors 10 (48,746) (16,479)

Total creditors (90,633) (40,557)

Total liabilities (90,633) (40,557)

Net assets attributable


31/03/16 31/03/15

23


Notes to the Financial Statements


1 Accounting Basis And Policies

2 Net capital (losses)/gains 01/04/15 to 01/04/14 to

31/03/16 31/03/15

£ £

The net capital (losses)/gains during the year

Realised currency gains/(losses) 612 (1,816)

Realised gains on non-derivative securities 129,622 241,404

Transaction charges (3,960) (2,069)

Unrealised losses on non-derivative securities (1,164,253) (112,406)

Net capital (losses)/gains (1,037,979) 125,113

3 Revenue 01/04/15 to 01/04/14 to

31/03/16 31/03/15

£ £

Bank interest 239 1,008

Offshore funds dividends - 41,760

Offshore funds interest 273,219 139,318

Overseas dividends 123 -

UK dividends 18,734 -

Real Estate Investment Trust revenue 29,515 13,000

Total revenue 321,830 195,086

4 Expenses 01/04/15 to 01/04/14 to

31/03/16 31/03/15

Payable to the ACD, associates of the ACD, and agents of £ £

either of them

AMC fees 56,346 45,762

Registration fees 798 599

Registration fees (overpayment) - (334)

Transfer agency fees 23,852 17,804

80,996 63,831

Payable to the Depositary, associates of the Depositary,

and agents of either of them

Depositary's fees 12,000 11,986

Safe custody fees 1,351 1,060

13,351 13,046

Other expenses

Audit fees* 6,420 6,420

FCA fees 201 251

Printing, postage, stationery and typesetting costs 355 629

Price publication fee 90 -

7,066 7,300

Total expenses 101,413 84,177

The Funds' Financial Statements have been prepared on the basis detailed on pages 9, 10, 11 and 12.

* Audit fees of £5,350 + VAT have been charged in the current year (2015: £5,350 + VAT).

24


Notes to the Financial Statements (continued)


5 Interest payable and similar charges 01/04/15 to 01/04/14 to

31/03/16 31/03/15

£ £

Bank Interest 264 289

Total Interest payable and similar charges 264 289

6 Taxation 01/04/15 to 01/04/14 to

31/03/16 31/03/15

£ £

(a) Analysis of the tax charge in the year

Corporation tax 31,451 -

Total current tax charge (Note 6 (b)) 31,451 -

Deferred tax (Note 6 (c)) - -

Total taxation for the year 31,451 -

(b) Factors affecting current tax charge for the year

The differences are explained below:

01/04/15 to 01/04/14 to

31/03/16 31/03/15

£ £

Net revenue before taxation 220,153 110,620

44,031 22,124

Effects of:

Movement in excess management expenses (8,808) (13,772)

Revenue not subject to corporation tax (3,772) (8,352)

Current tax charge for the year 31,451 -

(c) Provision for deferred tax

(d) Factors that may affect future tax charges

At the year end, after offset against revenue taxable on receipt, there is a potential deferred tax asset of £nil

(2015: £8,808) in relation to surplus management expenses. It is unlikely that the Fund will generate

sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been

recognised in the year.

There is no provision required for deferred taxation at the Balance Sheet date in the current or prior year.

Net revenue for the year multiplied by the standard rate of corporation

tax

OEIC's are exempt from tax on capital gains in the UK. Therefore, any capital return is not included within

the reconciliation above.

The tax assessed for the year is different from that calculated when the standard rate of corporation tax for

an open ended investment company of 20% (2014: 20%) is applied to the net revenue before taxation.

25




7 Finance costs

Distributions

01/04/15 to 01/04/14 to

31/03/16 31/03/15

£ £

Final 184,672 148,592

Add: Revenue paid on cancellation of Shares 30,630 9,117

Deduct: Revenue received on issue of Shares (26,599) (47,095)

Net distribution for the year 188,703 110,614

Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 188,702 110,620

Revenue deficit 1 (6)

Net distribution for the year 188,703 110,614

Details of the distributions per Share are set out in the distribution table on page 33.

8 Debtors 31/03/16 31/03/15

£ £

Accrued bank interest 33 22

Accrued revenue 123 -

Amounts receivable for creation of Shares 7,786 126,947

Total debtors 7,942 126,969

9 Cash and bank balances 31/03/16 31/03/15

£ £

Cash and bank balances 898,300 256,369

Total cash and bank balances 898,300 256,369

The distributions take account of revenue received on the issue of Shares and revenue deducted on the

cancellation of Shares and comprise:

26




10 Creditors 31/03/16 31/03/15

£ £

Amounts payable for cancellation of Shares 2,106 1,279

Corporation tax payable 31,451 -

33,557 1,279

Accrued expenses

Manager and Agents

AMC fees 4,460 4,806

Registration fees 67 59

Transfer agency fees 1,948 1,840

6,475 6,705

Depositary and Agents

Depositary fees 1,000 1,000

Safe custody fees 304 597

Transaction charges 990 480

2,294 2,077

Other accrued expenses

Audit fees 6,420 6,420

FCA fees - (2)

6,420 6,418

Total creditors 48,746 16,479

11 Related party transactions

Significant Shareholdings

As at the balance sheet date, the following had significant Shareholdings within the Fund

Shareholders 31/03/16 (%)

FNZ (UK) Nominees Ltd 53.06

12 Share Classes

Share Class %

A Income 1.50

E Accumulation 0.50

E Income 0.50

Institutional Accumulation 0.50

Retail Accumulation 1.00

Retail Income 1.00

S Income 1.00

T Income 0.80

Each Share Class has equal rights in the event of the wind up of any fund.

The monies received and paid by the ACD through the issue and cancellation of Shares are disclosed in the

Statement of Change in Shareholders’ Net Assets and amounts due at the year end are disclosed in notes 8

and 10.

The ACD and its associates (including other authorised investment funds managed by the ACD) have no

Shareholdings in the Company at the year end.

The Share Class and ACD's Annual Management Charges applicable to the Fund are as follows:

Equalisation applies only to units purchased during the distribution period (Group 2 Units). It is the average amount of incoThe average net assets of the Trust, amounting to £________, is based on the average of the net assets on the last business Comparative figures for the Statement of Total Return and the relevant notes are in respect of last year's interim published The average net assets of the Trust, amounting to £________, is based on the average of the net assets on the last business Comparative figures for the Statement of Total Return and the relevant notes are in respect of last year's interim published

27




12 Share Classes (continued)

The reconciliation of the opening and closing numbers of shares of each class is shown below:

31/03/15 Issued Cancelled Converted 31/03/16

A Income 263,729 684 - (53,162) 211,251

E Accumulation 6,008,842 1,482,203 (1,964,098) - 5,526,947

E Income 5,009 79,734 (27,562) - 57,181Institutional

Accumulation 21,869

- - - 21,869

Retail Accumulation 172,368 - (1,720) - 170,648

Retail Income - 145,661 - - 145,661

S Income 498,485 140,699 (86,983) 61,045 613,246

T Income 1,138,655 117,634 (47,289) - 1,209,000

13 Capital commitments and contingent liabilities


(a) Foreign currency risk

The table below shows the foreign currency risk profile at the balance sheet date:

Monetary Non- Total

exposures monetary

Currency exposures

£ £ £

31/03/16

Euro 123 1,212,402 1,212,525

US Dollar 127,482 2,707,759 2,835,241

Total foreign currency exposure 127,605 3,920,161 4,047,766

Sterling 688,004 3,594,041 4,282,045

Total net assets 815,609 7,514,202 8,329,811

31/03/15

Euro - 1,378,000 1,378,000

US Dollar 20,017 3,027,754 3,047,771

20,017 4,405,754 4,425,771

Sterling 322,764 4,664,393 4,987,157

Total net assets 342,781 9,070,147 9,412,928

The main risks from the Fund’s holding of financial instruments, together with the ACD’s policy for managing

these risks, are disclosed in note 2 on pages 12, 13 and 14.

There were no contingent liabilities or outstanding commitments at the balance sheet date (2015: nil).

Net foreign currency assets

Total foreign currency exposure

28




14 Derivatives and other financial instruments (continued)

(a) Foreign currency risk (continued)

(b) Interest rate risk profile of financial assets and liabilities

The table below shows the interest rate risk profile at the balance sheet date:

Financial assets

Floating rate not carrying

Currency financial assets interest Total

Assets £ £ £

31/03/16

Euro - 1,212,525 1,212,525

Sterling 770,818 3,601,860 4,372,678

US Dollar 127,482 2,707,759 2,835,241

Total 898,300 7,522,144 8,420,444

31/03/15

Euro - 1,378,000 1,378,000

Sterling 236,352 4,791,362 5,027,714

US Dollar 20,017 3,027,754 3,047,771

Total 256,369 9,197,116 9,453,485

Floating rate Financial

financial liabilities not

Currency liabilities carrying interest Total

Liabilities £ £ £

31/03/16

Sterling - 90,633 90,633

Total - 90,633 90,633

31/03/15

US Dollar - 40,557 40,557

Total - 40,557 40,557

(c) Leverage

There was 90.99% leverage as at 31 March 2016, other than that available to the Fund as a result of its

ability to borrow up to 10% of its value on a permanent basis.

If GBP to foreign currency exchange rates had strengthened/increased by 10% as at the balance sheet date,

the net asset value of the Fund would have decreased by £367,979 (2015: £402,343). If GBP to foreign

currency exchange rates had weakened/decreased by 10% as at the balance sheet date, the net asset value

of the Fund would have increased by £449,752 (2015: £491,752). These calculations assume all other

variables remain constant.

Changes in interest rates would have no material impact to the valuation of floating rate financial assets or

liabilities as at the balance sheet date. Consequently, no sensitivity analysis has been presented.

29




15 Portfolio transaction costs

£ £ £ £

Analysis of total purchase costs

Purchases in year before

transaction costs:

Equities 129,829 656,500

Collective Investment Schemes 3,109,290 8,572,783

3,239,119 9,229,283

Commissions - Equities 150 1,313

2,635 13,956

Fees - Equities 375 3,285

Fees - Collective Investment Schemes 5 32

Total purchase costs 3,165 18,586

Gross purchase total 3,242,284 9,247,869

Analysis of total sale costs

Gross sales in year before

transaction costs

Equities 394,075 -

Collective Investment Schemes 3,372,188 4,021,408

3,766,263 4,021,408

Commissions - Equities (788) -

(3,828) (5,365)

Fees - Equities (1) -

Fees - Collective Investment Schemes (7) (8)

Total sale costs (4,624) (5,373)

Total sales net of transaction costs 3,761,639 4,016,035

31/03/15

Commissions - Collective Investment

Schemes

Commissions - Collective Investment

Schemes

31/03/16

For the Fund's investment in Collective Investment Scheme holdings there will potentially be dealing spread

costs applicable to purchases and sales. However additionally there are indirect transaction costs suffered in

those underlying funds, throughout the holding period for the instruments, which are not separately

identifiable and do not form part of the analysis above.

The portfolio transaction costs table above includes direct transaction costs suffered by the Fund during the

period.

Separately identifiable direct transaction costs (commissions and taxes etc.) are attributable to the Fund's

purchase and sale of equity shares. Additionally for equity shares there is a dealing spread cost (the

difference between the buying and selling prices) which will be suffered on purchase and sale transactions.

01/04/15 to 01/04/14 to

30




15 Portfolio transaction costs (continued)

01/04/15 to 01/04/14 to

31/03/16 31/03/15

Transaction costs as percentage % %

of principal amounts

Purchases - Commissions

Equities 0.1153% 0.2000%

Collective Investment Schemes 0.0847% 0.1628%

Purchases - Fees

Equities 0.2889% 0.5003%


Sales - Commissions

Equities 0.2000% 0.0000%


Sales - Fees

Equities 0.0003% 0.0000%


01/04/15 to 01/04/14 to

31/03/16 31/03/15

Transaction costs as percentage % %

of average net asset value

Commissions 0.0814% 0.2816%

Fees 0.0042% 0.0454%

As the Company's Fund and its Share Classes are single priced there is no bid/offer spread applicable.

31




16 Post balance sheet events

There are no post balance sheet events which require adjustments at the year end.

17 Fair value disclosure

Assets Liabilities Assets Liabilities

Valuation technique £ £ £ £

1,651,653 - 667,875 -

5,862,548 - 8,402,272 -

- - - -

- - - -

7,514,202 - 9,070,147 -

* The valuation techniques and the ACD's policy is disclosed in note 1(o) on page 11 and 12.

T Income Shares have decreased from 104.77p to 104.26p. This takes into account routine transactions but

also reflects the market movements.

E Income Shares have decreased from 105.72p to 104.91p. This takes into account routine transactions but


Institutional Accumulation Shares have increased from 113.84p to 115.66p. This takes into account routine

transactions but also reflects the market movements.

Retail Accumulation Shares have increased from 110.58p to 112.26p. This takes into account routine

transactions but also reflects the market movements.

Retail Income Shares have increased from 110.36p to 110.96p. This takes into account routine transactions

but also reflects the market movements.

S Income Shares have decreased from 94.91p to 94.62p. This takes into account routine transactions but


Subsequent to the year end, the Net Asset Value per Share of the Fund has increased/decreased using the

Share prices at the year end date compared to 27 May 2016.

Quoted prices for identical instruments

in active markets

Prices of recent transactions for

identical instruments

Valuation techniques using observable

market data*

Valuation techniques using non-

observable data*

A Income Shares have increased from 108.66p to 108.83p. This takes into account routine transactions but


E Accumulation Shares have increased from 107.54p to 109.26p. This takes into account routine transactions

but also reflects the market movements.

31/03/16 31/03/15

32


Distribution Table

As at 31 March 2016

Final Distribution in pence per Share

Group 1 Shares purchased prior to 1 April 2015

Group 2 Shares purchased on or after 1 April to 31 March 2016

Distribution Distribution

Net payable paid

revenue Equalisation 31/05/16 31/05/15

(p) (p) (p) (p)

Share Class A Income

Group 1 1.3790 - 1.3790 0.6833

Group 2 0.8221 0.5569 1.3790 0.6833

Share Class E Accumulation

Group 1 2.5114 - 2.5114 2.0284

Group 2 0.9954 1.5160 2.5114 2.0284

Share Class E Income

Group 1 2.4666 - 2.4666 2.2555

Group 2 0.6835 1.7831 2.4666 2.2555

Share Class Institutional Accumulation

Group 1 2.6519 - 2.6519 1.8975

Group 2 2.6519 0.0000 2.6519 1.8975

Share Class Retail Accumulation

Group 1 1.9934 - 1.9934 1.2858

Group 2 1.9934 0.0000 1.9934 1.2858

Share Class Retail Income

Group 1 1.0583 - 1.0583 0.0000

Group 2 0.7893 0.2690 1.0583 0.0000

Share Class S Income

Group 1 1.7121 - 1.7121 1.1179

Group 2 1.1617 0.5504 1.7121 1.1179

Share Class T Income

Group 1 2.1110 - 2.1110 1.4570

Group 2 1.0304 1.0806 2.1110 1.4570

33

WAY Charteris Gold and Precious Metals Fund

Investment Manager’s Report


Investment Objective and Policy

The objective of the Fund is to achieve capital growth.

Investment Policy

The Fund will aim to achieve its investment objective by utilising a diversified portfolio of transferable securities

(including investment trusts), Collective Investment Schemes, warrants, cash or near cash, deposits and money

market instruments.

The Fund will primarily consist of instruments with direct underlying gold and/or precious metals exposure and

shares in companies worldwide whose core business is involved in the mining, refining, production and marketing

of gold and/or precious metals. Investment may be undertaken indirectly in other commodities, and minerals.

Subject to the requirements of the Regulations, the portfolio will normally remain fully invested. There will,

however, be no restrictions on the underlying content of the investments held, in terms of investment type,

geographical or economic sector, other than those imposed by the Regulations, meaning that the Investment

Adviser has the absolute discretion to weight the portfolio towards any investment type or sector at any time.

However, not more than 10% of the value of the Fund shall consist of units and/or shares in Collective Investment

Schemes. The Fund may also invest in unregulated Collective Investment Schemes (where investment in such

funds is consistent with the investment objective and policy of the Fund).

The use of derivatives and/or hedging transactions are permitted in connection with the efficient portfolio

management of the Fund, and borrowing will be permitted in accordance the Regulations.

On giving 60 days' notice to shareholders, the Fund may, in addition to its other investment powers, use

derivatives and forward transactions for investment purposes. It is not intended that the use of derivatives in this

way will change the risk profile of the Fund.

Investment Review

The core strategy of the Fund is to invest in a portfolio of Gold and Silver mining companies which continue to be

very volatile for the reporting period with the Fund going up 14.56%1 whereas the XAU Index went up 10.47%1

meaning an outperformance of 4.09%1 for the reporting period. The turnover of holdings within the fund has

largely remained the same throughout the fund’s existence but we continue to have a higher exposure to mining

companies that produce Silver to gain greater exposure to the silver price with strong positions in stocks such as

Fortuna Silver Mines Inc, MAG Silver and Silver Wheaton Corp. The companies are historically more accomplished

at hitting forecasted targets. We have seen some M&A activity with Silver Standard announcing the friendly

takeover of Claude Resources which the Fund gained exposure to. In terms of significant trades within the

reporting period, we have continued to have a very low exposure to Australian domiciled companies. Our analysis

continues to show that mine costs in Australia are still quite high and would impact negatively on the Fund. We

have seen some very positive gains with Oceana Gold in particular showing terrific performance. Recent switches

into TMAC and Torex Gold have proved to provide positive contributors to the Fund. For the first half of the

reporting period we saw a little negativity return to the Gold & Silver markets during the reporting period with

both Gold and Silver spot prices going down but calendar year 2016 has shown positivity return, especially to the

Gold markets which are now in positive territory for the reporting period. We remain fully committed to NOT

investing in any South African domiciled gold mining companies as we much prefer the reduced political risk

associated with Canada. There continues to be much more focus from gold and silver mining companies on giving

returns to investors. A great deal of money has been focused on capital expenditure which has not benefitted

shareholders. The management of these companies are now much more focused on delivering shareholder value.

34


Investment Manager’s Report (continued)


Performance of the Fund

The Institutional Accumulation class of this Fund went up 14.56%1 for the reporting period.

Outlook

Throughout the Fund’s existence, it has always been volatile but our global macro over-view of the world, how it’s

investing and the part gold, silver and precious metals have to play, has not changed very much. The Fund will

continue to have an overweight position in Silver mining equities. We still firmly believe that Gilts and fixed income

is a crowded trade and the real bubble investors need to be worried about. The long term bull market in the

precious metals space is still nowhere near its peak.

Source: 1 Financial Express as at 31/03/16 on a Total Return basis.

Investment Manager

Charteris Treasury Portfolio Managers Limited

5 April 2016

35


Performance record

As at 31 March 2016

31/03/16 31/03/15 31/03/14 31/03/16 31/03/15

(p) (p) (p) (p) (p)


Opening net asset value per Share 71.26 98.63 98.18 62.92 100.00

Return before operating charges* 12.49 (25.19) 2.99 11.03 (35.31)

Operating charges (1.53) (2.18) (2.54) (1.35) (1.77)

Return after operating charges* 10.96 (27.37) 0.45 9.68 (37.08)

Distributions on income Shares - - - 0.00 0.00

Closing net asset value per Share 82.22 71.26 98.63 72.60 62.92 Retained distributions on accumulation 0.00 0.00 0.00 - -

* after direct transaction costs of: 0.18 0.18 0.43 0.18 0.18

Performance

Return after operating charges 15.38% (27.75%) 0.46% 15.38% (37.08%)

Other information

Closing net asset value 15,993 11,935 7,870 18,622 15,020

Closing number of Shares 19,452 16,748 7,980 25,652 23,871

Operating charges 2.41% 2.34% 2.33% 2.41% 2.34%

Direct transaction costs 0.18% 0.18% 0.43% 0.18% 0.18%

Prices

Highest Share price 85.13 118.31 119.05 75.16 100.61

Lowest Share price 48.16 67.92 98.18 42.52 59.97

Share Class E Elite Institutional Income was launched on 31 December 2012. However, the first dealing was on 21 August 2014.

31/03/16 31/03/15 31/03/14 31/03/16 31/03/15 31/03/14

(p) (p) (p) (p) (p) (p)



Return before operating charges* 5.47 (10.96) (27.48) 5.46 (10.96) (27.51)


Return after operating charges* 4.87 (11.81) (28.48) 4.86 (11.81) (28.51)

Distributions on income shares - - - 0.00 0.00 0.00

Closing net asset value per Share 35.90 31.03 42.84 35.90 31.04 42.85 Retained distributions on accumulation 0.00 0.00 0.00 - - -


Performance

Return after operating charges 15.69% (27.57%) (39.93%) 15.66% (27.56%) (39.95%)

Other information

Closing net asset value 3,987,901 1,743,548 1,570,019 493,139 405,755 753,192

Closing number of Shares 11,109,450 5,618,342 3,664,503 1,373,644 1,307,322 1,757,617

Operating charges 2.16% 2.09% 2.08% 2.16% 2.09% 2.08%


Prices



E Elite Institutional Accumulation

Elite Institutional Accumulation Elite Institutional Income

E Elite Institutional Income

36


Performance record (continued)

As at 31 March 2016

31/03/16 31/03/15 31/03/14 31/03/16 31/03/15 31/03/14

(p) (p) (p) (p) (p) (p)



Return before operating charges* 5.19 (10.56) (26.88) 5.20 (10.59) (26.74)


Return after operating charges* 4.42 (11.67) (28.20) 4.43 (11.71) (28.07)

Distributions on income shares - - - 0.00 0.00 0.00

Closing net asset value per Share 34.28 29.86 41.53 34.37 29.94 41.65 Retained distributions on accumulation 0.00 0.00 0.00 - - -


Performance

Return after operating charges 14.80% (28.10%) (40.44%) 14.80% (28.12%) (40.26%)

Other information

Closing net asset value 186,653 213,716 410,107 267,967 114,601 156,415

Closing number of Shares 544,511 715,754 987,398 779,626 382,729 375,542

Operating charges 2.91% 2.84% 2.83% 2.91% 2.84% 2.83%


Prices



31/03/16 31/03/15 31/03/14 31/03/16 31/03/15 31/03/14

(p) (p) (p) (p) (p) (p)


Opening net

Documents

Annual Report & Financial Statements · 3/31/2016 · WAY MA Portfolio Certification of Financial Statements by Directors of the ACD For the year ended 31 March 2016 Directors' Certification