Baring Institutional Funds...The Directors took the decision on 19 December 2017 to close Baring Institutional Funds (“the Unit Trust via ”) an in-specie transfer to the Baring

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Baring Institutional Funds Annual Report & Audited Termination Financial Statements for the period 1 November 2017 to 30 April 2018

Table of Contents Management and administration ...................................................................................................... 1

Introduction ...................................................................................................................................... 2 Independent Auditors’ report to the unitholders of Baring Institutional Funds .................................. 4 Report of the Alternative Investment Fund Manager ........................................................................ 6 Report of the Depositary to the unitholders ...................................................................................... 8 Key changes during the period ......................................................................................................... 9 Investment Manager's report – Unaudited ..................................................................................... 10 Balance sheet ................................................................................................................................ 11 Statement of changes in equity ...................................................................................................... 12 Profit and loss account ................................................................................................................... 13 Notes to the financial statements ................................................................................................... 14 Portfolio statement ......................................................................................................................... 29 Appendix 1 – Securities financing transaction regulation – Unaudited ........................................... 31 Appendix 2 – Remuneration disclosure – Unaudited ................................................................... 32

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Management and administration Alternative Investment Fund Manager (“AIFM”) Baring International Fund Managers (Ireland) Limited Registered office (from 7 December 2017)

70 Sir John Rogerson’s Quay Dublin 2 D02 R296 Ireland Telephone: + 353 1 542 2930 Facsimile: + 353 1 670 1185 Registered office (to 7 December 2017)

Georges Court 54-62 Townsend Street Dublin 2 D02 R156 Ireland Investment Manager Baring Asset Management Limited 155 Bishopsgate London EC2M 3XY United Kingdom Telephone: + 44 20 7628 6000 Facsimile: + 44 20 7638 7928 Depositary Northern Trust Fiduciary Services (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2 D02 R156 Ireland Administrator and Registrar Northern Trust International Fund Administration Services (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2 D02 R156 Ireland

Independent Auditors PricewaterhouseCoopers One Spencer Dock North Wall Quay Dublin 1 D01 X9R7 Ireland Sponsoring Broker and Legal Advisers Matheson 70 Sir John Rogerson’s Quay Grand Canal Dock Dublin 2 D02 R296 Ireland Directors of the AIFM Peter Clark (British) Jim Cleary† (Irish) David Conway† (Irish) Barbara Healy† (Irish) Timothy Schulze (United States) Julian Swayne (British) † Non-executive Directors independent of the Investment Manager.

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Introduction The Directors took the decision on 19 December 2017 to close Baring Institutional Funds (“the Unit Trust ”) via an in-specie transfer to the Baring Dynamic Asset Allocation Fund on 18 January 2018, and thus the Unit Trust’s financial statements have been prepared on a basis other than going concern.

The Unit Trust was a unit trust managed by Baring International Fund Managers (Ireland) Limited (“the Alternative Investment Fund Manager (“AIFM”)”) and authorised by the Central Bank of Ireland (“the CBI”) as a unit trust pursuant to the Unit Trusts Act, 1990. With effect from 17 July 2015, the AIFM was authorised by the CBI as an AIFM pursuant to the European Union (AIFM) Regulations 2013. Therefore, from 17 July 2015 onwards, the Unit Trust was classified as a Qualifying Investor Alternative Investment Fund (“QIAIF”) in accordance with the AIF Rulebook issued by the CBI. The Unit Trust was established pursuant to a Trust Deed dated 27 August 2012 made between the AIFM and Northern Trust Fiduciary Services (Ireland) Limited as Depositary (“the Depositary”).

The Unit Trust was an umbrella unit trust, in that different funds might have been created from time to time by the AIFM in accordance with the requirements of the CBI. There was one fund in existence prior to closure, Baring Dynamic Growth Fund (“the Fund”). The assets of the Fund were invested in accordance with the investment objective and policy applicable to the Fund. Further details of the Fund are contained in a supplement to the Prospectus. The Fund could have created more than one class of units, and these separate classes of units could have had different characteristics, which could have included, but would not have been limited to: fee structure, currency of denomination, dividend policy or hedging strategy. Each unit in the Unit Trust constituted a beneficial interest in the Unit Trust and represented one undivided unit in the property of the relevant Fund.

The year-end accounting date of the Unit Trust changed from from 31 October to 30 April due to the closure and the period has been shortened to make these the closing accounts.

The trade receipt and valuation deadline for the annual accounts was 5pm on 18 January 2018 for the Fund.

Investment objective and policy The investment objective of the Fund was to achieve an absolute return of 4% in excess of cash based on the 3-month sterling London Interbank Offered Rate (“LIBOR”). There was no guarantee that the investment objective of the Fund would be achieved. The Fund could tactically allocate assets across a range of asset classes, including equities, fixed income, currencies, commodities and property (indirect exposure), money market instruments and/or cash. The Fund might gain market and/or economic exposure to these asset classes either directly and/or indirectly such as through the use of derivatives, exchange-traded funds (“ETFs”), exchange-traded certificates (“ETCs”) or Investment Funds. Please refer to the Prospectus for the full investment objective and policy.

How the Fund was managed The AIFM appointed Baring Asset Management Limited as the Investment Manager. The Investment Manager used the ideas generated by the Strategic Policy Group, its global macro research asset allocation group, to choose what the Investment Manager believed were the best investments to achieve the investment objectives of the Fund. This means the Investment Manager constructed a portfolio of stocks or bonds from a mix of companies, countries and sectors to suit the asset allocation policy current at that point in time. The Investment Manager believes that asset allocation is the most important driver of returns. It is important to be in the right market at the right time, and to be able to retreat to a more defensive position to help manage risk. The Investment Manager followed a two-stage investment process that accessed both long-term return opportunities, driven by slowly evolving macroeconomic factors, and shorter-term opportunities generated by market volatility. The Investment Manager used its wide investment universe to avoid over-diversification and focus on assets that the Investment Manager believed were appropriate for the prevailing economic and market cycle.

Risk profile Please see detailed below some of the key risks applicable to the Fund prior to closure:

• Changes in some of the exchange rates between the currency of the Fund and the currencies in which the assets of the Fund were valued could have had the effect of increasing or decreasing the value of the Fund and any income generated.

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Introduction (continued) Risk profile (continued)

• The rating of a bond is subject to change. There was no guarantee that a bond issuer would pay the interest due or repay the loan, and if not, this would have resulted in a loss of income to the Fund, along with its initial investment. Bond values were likely to fall if interest rates rose.

• Derivative instruments can make a profit or a loss and there was no guarantee that a financial derivative contract would achieve its intended outcome. The use of derivatives could have increased the amount by which the Fund’s value rose and fell and could have exposed the Fund to losses that were significantly greater than the cost of the derivative, as a relatively small movement may have a larger impact on derivatives than the underlying assets.

• Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. Coupled with less developed regulation, this means your money was at greater risk.

• Investing in other funds may have exposed investors to increased risk due to restrictions on withdrawals, less strict regulations and the use of derivatives.

Please refer to the Prospectus for the full risk profile.

Independent auditors' report to the unitholders of Baring Institutional Funds

Report on the audit of the financial statements

Opinion

In our opinion, Baring Institutional Funds' financial statements:

• give a true and fair view of the Trust's assets, liabilities and financial position as at 30 April 2018 and of its results for the 6 month period ("period") then ended; and

• have been properly prepared in accordance with Generally Accepted Accounting Practice in Ireland (accounting standards issued by the Financial Reporting Council of the UK, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", and promulgated by the Institute of Chartered Accountants in Ireland and Irish law).

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

• the Balance Sheet as at 30 April 2018;

• the Profit and loss account for the period then ended;

• the Statement of changes in equity for the period then ended; and

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

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 Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in Ireland, which includes IAASA's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Emphasis of matter - Basis of preparation

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 1 t the financial statements concerning the going concern basis of accounting. During the period, the AIFM took the decision to close the Trust. Accordingly, the going concern basis of accounting is no longer appropriate and the financial statements have been prepared on a basis other than going concern as described in note 1 to the financial statements. No adjustments were necessary in these financial statements to provide for liabilities arising from the decision.

Reporting on other information

The other information comprises all of the information in the Annual Report & Audited Termination Financial Statements other than the financial statements and our auditors' report thereon. The Alternative Investment Fund Manager ("AIFM") is 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.

Responsibilities for the financial statements and the audit

Responsibilities of the AIFM for the financial statements

As explained more fully in the Statement of Alternative Investment Fund Manager's responsibilities set out on page 6, the AIFM is responsible for the preparation of the financial statements in accordance with the applicable framework giving a true and fair view.

The AIFM is also responsible for such internal control as the AIFM determines 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 AIFM is responsible for assessing the Trust's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the AIFM intends to cease operations, or has no realistic alternative but to do so.

Auditors responsibthties 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: / /w.iaasa.ic/getmedia/b28go1.-1cf6-4ç8b-gb8f- a98202dc9c3a/Description of auditors responsibilities for auclit.pdf.

This description forms part of our auditors' report.

Use of this report

This report, including the opinion, has been prepared for and only for the unitholders as a body in accordance with the European Union (Alternative Investment Fund Managers) Regulations 2013 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers Chartered Accountants and Registered Auditors Dublin 20 August 2018

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Report of the Alternative Investment Fund Manager Statement of Alternative Investment Fund Manager’s responsibilities Baring International Fund Managers (Ireland) Limited (“the Alternative Investment Fund Manager (“AIFM”)”) is required by the Alternative Investment Fund Managers Directive (“the AIFMD”) to prepare financial statements for each financial year. These financial statements are prepared in accordance with applicable Irish Law and Financial Reporting Standard 102 (“FRS 102”), “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, issued by the Financial Reporting Council, to give a true and fair view of the state of affairs of the Baring Institutional Funds (“the Unit Trust ”) at the period-end and the Unit Trust ’s results for the period then ended. In preparing these financial statements, the AIFM must:

• select and consistently apply suitable accounting policies;

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

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

The AIFM is responsible for keeping proper books of account which disclose with reasonable accuracy at any time the financial position of the Unit Trust and enable it to ensure that the financial statements are prepared in accordance with FRS 102 and comply with the provisions of the Trust Deed and the Unit Trusts Act, 1990. The AIFM is also responsible for taking reasonable steps for the prevention and detection of fraud, error and non-compliance with law or regulations. Under the Central Bank of Ireland’s (“the CBI”) AIF Rulebook, the assets of the Unit Trust shall be entrusted to Northern Trust Fiduciary Services (Ireland) Limited (“the Depositary”) for safekeeping and therefore custody of Baring Dynamic Growth Fund’s (“the Fund’s”) assets rests with the Depositary. The financial statements are published at www.barings.com. The Directors, together with the AIFM and Baring Asset Management Limited (“the Investment Manager”), are responsible for the maintenance and integrity of the website as far as it relates to Barings funds. Legislation in the Republic of Ireland governing the presentation and dissemination of the financial statements may differ from legislation in other jurisdictions.

Transactions with connected parties The CBI’s AIF Rulebook requires that any transaction carried out with the Unit Trust by a Promoter, the AIFM, the Depositary, the Investment Manager and/or an associate or group of companies of these (“connected parties”) is carried out as if negotiated at arm’s length and is in the best interests of the unitholders. The Directors of the AIFM are satisfied that there are arrangements evidenced by written procedures in place to ensure that this requirement is applied to all transactions with connected parties, and that all transactions with connected parties during the period complied with the requirement.

Remuneration policy As part of its authorisation as an AIFM, the AIFM has implemented a remuneration policy consistent with the European Securities and Markets Authority’s (“ESMA's”) remuneration guidelines and, in particular, the provisions of Annex II of Directive 2011/61/EU. See Appendix 2 for the remuneration disclosure of the AIFM.

http://www.barings.com/

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Key changes during the period

Registered office of the AIFM

As of 7 December 2017, the registered address for Baring International Fund Managers (Ireland) Limited changed from: Baring International Fund Managers (Ireland) Limited Georges Court Townsend Street Dublin 2 D02 R156 Ireland to: Baring International Fund Managers (Ireland) Limited 70 Sir John Rogerson’s Quay Dublin 2 D02 R296 Ireland

Soft commissions Barings have terminated soft commission arrangements from 2 January 2018. Please see note 5 on page 21 for details.

Privacy statement In compliance with data privacy law, including the General Data Protection Regulation (Regulation (EU) 2016/679), the Barings Investor Privacy Notice is available at www.barings.com, where you may obtain a copy, should you require one. Financial report The year-end accounting date of the Unit Trust changed from from 31 October to 30 April due to the closure and the period has been shortened to make these the closing accounts. Hard copies of the annual and semi-annual financial statements will no longer be sent to unitholders. Copies of the annual and semi-annual financial statements (available in English only) will be available at www.barings.com and will also be available on request for inspection.

The Directors took the decision on 19 December 2017 to close Baring Institutional Funds via an in-specie transfer to Baring Dynamic Asset Allocation Fund on 18 January 2018.

Baring International Fund Managers (Ireland) Limited in its capacity as the AIFM of Baring Institutional Funds (“the Unit Trust”) applied to the Irish Stock Exchange (“ISE”) to remove Baring Dynamic Growth Fund (“the Fund”), a sub-fund of the Unit Trust, from the official list and from trading on the Global Exchange Market (“GEM”) of the ISE. The ISE approved to de-listing on 9 February 2018.

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Baring Dynamic Growth Fund ─ Investment Manager’s report ─ Unaudited Performance The Baring Dynamic Growth Fund (“the Fund”) generated a gross return of 3.86% for the reporting period vs the relevant index return of +0.93% between 1 November 2017 until the 18 January 2018, when the Fund closed.

The largest contribution came from Japanese equities. Japan has seen a continuation of earnings upgrades and has been benefitting from global synchronised growth. Due to positive earnings growth and cheap valuations, we still remain positive on Japan, and this continues to be one of our favoured equity regions.

The second largest contribution came from European equities. Economic strength in Europe has been accelerating over the last year, which has fed through to good earnings growth for some European companies.

The largest detractor was constituted by Emerging market bonds. The majority of the detraction came from our exposure to Mexican bonds as tensions increased regarding the potential withdrawal from the North American Free Trade Agreement (NAFTA).

Baring Asset Management Limited

May 2018 Baring Asset Management Limited (“the Investment Manager”) gives its portfolio managers full authority to manage their funds as they see fit, within the established guidelines set down. This includes the views that managers may take of the markets and sectors they invest in, which may differ from the views of other Barings portfolio managers.

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Balance sheet As at 30 April 2018

Baring Dynamic Baring DynamicGrowth Fund Growth Fund

30/04/2018 31/10/2017Assets Notes £ £Financial assets at fair value through profit or loss 1 - 49,750,934Dividends and interest receivable 1 - 157,059Management fee rebate 2 3,072 4,002Other receivables 1 - 1,442Margin cash 1 - 555,198Cash 1 103,018 1,107,512Total assets 106,090 51,576,147

LiabilitiesFinancial liabilities at fair value through profit or loss 1 - (50,960)Bank interest payable - (24)Securities purchased payable 1 - (131,254)Management fees payable 2 - (23,896)Administration fees payable 2 - (1,699)Depositary fees payable 2 - (942)Units purchased payable (89,267) (51,062)Other payables 2 (16,823) (74,384)Total liabilities (excluding net assets attributableto equity holders) (106,090) (334,221)

Net assets attributable to equity holders - 51,241,926

Units in issue (note 4)- 380,292Class I GBP Acc

The accompanying notes form an integral part of these financial statements

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Statement of changes in equity For the period 1 November 2017 to 30 April 2018


30/04/2018* 31/10/2017†Notes £ £

Net assets attributable to equity holders of redeemable participating units at the beginning of the period/year 51,241,926 48,233,434

Increase in net assets for the period/year from operations attributable to equity holders 459,051 4,063,228

Issue of redeemable units for the period/year 4 21,686 56,710Redemption of redeemable units for the period/year 4 (51,722,663) (1,111,446)Net assets attributable to equity holders at the end of the period/ year - 51,241,926

* For the period 1 November 2017 to 30 April 2018.

† For the year ended 31 October 2017.


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Profit and loss account For the period 1 November 2017 to 30 April 2018


For the period ended For the year ended30/04/2018* 31/10/2017†

Notes £ £Investment incomeDividend income 1 19,415 442,462Interest income 1 91,195 444,535Management fee rebate 2 9,018 44,621Net fair value gain on financial assets at fair value through profit or loss 3 366,359 3,519,793

Total investment income 485,987 4,451,411

ExpensesManagement fees 2 (43,017) (273,488)Administration fees 2 (4,328) (20,163)Depositary fees 2 (1,620) (10,442)General expenses** 2 22,409 (28,186)Total operating expenses (26,556) (332,279)

Net income before finance costs & tax 459,431 4,119,132

Finance costsBank interest expense 1 (380) (941)Total finance costs (380) (941)

TaxWithholding tax on dividends - (54,963)Total tax - (54,963)

Increase in net assets for the period/year from operationsattributable to equity holders 459,051 4,063,228

There were no gains or losses other than those dealt with in the profit and loss account.


† For the year ended 31 October 2017.

** £22,409 positive general expenses due to over accrual in prior periods.


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Notes to the financial statements 1. Principal accounting policies

The principal accounting policies adopted by Baring Institutional Funds (“the Unit Trust ”) are as follows: Basis of preparation In preparing the financial statements for the period 1 November 2017 to 30 April 2018, the Directors of Baring International Fund Managers (Ireland) Limited (“the Alternative Investment Fund Manager (“AIFM”)”) have applied Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (“FRS 102”), and these financial statements comply with that standard. The Unit Trust has been authorised by the Central Bank of Ireland (“the CBI”) pursuant to the Unit Trusts Act, 1990, and the Trust Deed. The report has been prepared in accordance with FRS 102 and Irish Statute comprising the Unit Trusts Act, 1990. Accounting standards generally accepted in Ireland in preparing financial statements giving a true and fair view are those issued by the Financial Reporting Council (“FRC”). The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of the judgements made about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The Unit Trust has availed of the exemption under Section 7 of FRS 102 not to prepare a cash flow statement. The financial statements were prepared on a basis other than going concern. The Directors took the decision on 19 December 2017 to close Baring Institutional Funds via an in-specie transfer to Baring Dynamic Asset Allocation Fund on 18 January 2018. Historical cost convention The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities, including derivative financial instruments held at fair value through profit or loss. Fair value measurement By fully adopting FRS 102, in accounting for its financial instruments, a reporting entity is required to apply either: a) the full requirements of FRS 102 relating to Basic Financial Instruments and Other Financial Instruments, b) the recognition and measurement provisions of IAS 39 Financial Instruments: Recognition and Measurement and only the disclosure requirements of FRS 102 relating to Basic Financial Instruments and Other Financial Instruments, or c) the recognition and measurement provisions of IFRS 9 Financial Instruments and only the disclosure requirements of FRS 102 relating to Basic Financial Instruments and Other Financial Instruments. The Unit Trust has chosen to implement (b) the recognition and measurement provisions of IAS 39 Financial Instruments: Recognition and Measurement and only the disclosure requirements of FRS 102 relating to Basic Financial Instruments and Other Financial Instruments. The use of IAS 39 recognition and measurement provisions is in line with the pricing policy set out in the Trust Deed, which outlines that the fair value of financial assets and financial liabilities be valued at the last traded prices. Foreign exchange translation (a) Functional and presentation currency Items included in the Unit Trust’s financial statements are measured using the currency of the primary economic environment in which it operates (“the functional currency”). The functional and presentation currency of the Unit Trust is the Pound sterling, as the majority of redeemable participating units were subscribed in Pound sterling.

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Notes to the financial statements (continued) 1. Principal accounting policies (continued)

Foreign exchange translation (continued) (b) Transactions and balances Foreign currency transactions are translated into the functional and presentation currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account. Proceeds from subscriptions and amounts paid on redemption of redeemable participating units are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Financial assets and financial liabilities at fair value through profit or loss (a) Classification Baring Dynamic Growth Fund (“the Fund”) classified (prior to closure) its investments in equities, Investment Funds, debt instruments, forward foreign currency contracts and futures as financial assets or financial liabilities at fair value through profit or loss. Financial assets or financial liabilities held for trading were those acquired or incurred principally for the purposes of selling or repurchasing in the short term. Financial assets and financial liabilities designated at fair value through profit or loss at inception were those that were managed and whose performance was evaluated on a fair value basis in accordance with the Fund’s documented investment strategy. The Fund’s policy was for Baring Asset Management Limited (“the Investment Manager”) and the Directors of the AIFM to evaluate the information about these financial assets on a fair value basis together with other related financial information. (b) Recognition/derecognition Purchases and sales of investments were recognised on the trade date — the date on which the Fund commited to purchase or sell the investment. The financial statements include all the trades received up until the valuation point, which was 5pm on 18 January 2018 for the Fund. Investments were derecognised when the rights to receive cash flows from the investments had expired or the Fund had transferred substantially all risks and rewards of ownership. Realised gains and losses on disposals of financial assets and financial liabilities classified as 'at fair value through profit or loss' were calculated using the First In First Out (“FIFO”) method. They represent the difference between an instrument's initial carrying amount and disposal amount, or cash payments or receipts made on derivative contracts (excluding payments or receipts on collateral margin accounts for such instruments). (c) Measurement Financial assets and financial liabilities at fair value through profit or loss were initially recognised at fair value. Transaction costs were expensed in the profit and loss account. Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss were measured at fair value at the Fund’s valuation point as disclosed above. Gains and losses arising from changes in the fair value of the ‘financial assets or financial liabilities at fair value through profit or loss’ category are presented in the profit and loss account in the period in which they arise.

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Financial assets and liabilities at fair value through profit or loss (continued) (d) Fair value estimation Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Under the recognition and measurement provisions of IAS 39 Financial Instruments: Recognition and Measurement, the fair value of financial assets and liabilities traded in active markets (such as publicly traded derivatives and trading securities) were based on quoted market prices at the Fund's valuation point on the reporting date. The Unit Trust fair value input utilised the last traded market price for both financial assets and financial liabilities where the last traded price fell within the bid-ask spread. In circumstances where the last traded price was not within the bid-ask spread, management would determine the point within the bid-ask spread that was most representative of fair value. When the Fund held derivatives with offsetting market risks, it used mid-market prices as a basis for establishing fair values for the offsetting risk positions and applied this bid or asking price to the net open position, as appropriate. The fair value of financial instruments that were not traded in an active market (for example, over-the-counter derivatives) was determined by using valuation techniques. The Fund used a variety of methods and made assumptions that were based on market conditions existing at each balance sheet date. Unquoted investments were valued in accordance with the most recent valuation made by the AIFM. In the absence of a price being available for a security, the Directors of the AIFM could determine such a valuation where appropriate. Valuation techniques used included the use of comparable recent arm’s length transactions, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants. Investments in other Investment Funds which were not publicly traded were normally valued at the underlying unaudited Net Asset Value as advised by the managers or administrators of these Investment Funds, unless the Investment Manager was aware of good reasons why such a valuation would not be the most appropriate indicator of fair value. Such values might have differed significantly from values that would have been used had ready markets existed, and the differences could have been material. The valuation of the investments was done on a regular basis. (e) Forward foreign currency transactions Forward foreign currency transactions (“FFCTs”) were measured at fair value based on the closing prices of the FFCTs’ contract rates on the relevant foreign exchange market on a daily basis. Realised and unrealised gains and/or losses are reported in the profit and loss account. (f) Futures contracts A futures contract is an agreement between two parties to buy or sell a security, index or currency at a specific price or rate at a future date. Upon entering into a futures contract, the Fund was required to deposit with a broker an amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is known as an “initial cash margin”. Subsequent payments (“variation margin”) were made or received by the Fund each day, depending upon the daily fluctuation in the value of the contract. The daily changes in contract value were recorded as unrealised gains or losses, and the Fund recognised a realised gain or loss when the contract was closed. Unrealised gains and losses on futures contracts were recognised in the profit and loss account.

(g) Options When the Fund purchased an option, an amount equal to fair value and based on the premium paid was recorded as an asset. When the Fund had written an option, an amount equal to fair value and based on the premium received by the Fund was recorded as a liability. When options were closed, the difference between the premium and the amount paid or received, net of brokerage commissions, or the full amount of the premium if the option expired worthless, was recognised as a gain or loss and was presented in the profit and loss account within the net fair value gain/(loss) on financial assets and liabilities at fair value through profit or loss account. As at 30 April 2018, there were no open option positions on the Fund.

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Income from investments and interest expense Interest income and expense was recognised in the profit and loss account for all debt instruments and cash using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts throughout the expected life of the financial instrument, or a shorter period where appropriate, to the net carrying amount of the financial asset or financial liability.

Once a financial asset or a group of similar financial assets had been written down as a result of an impairment loss, interest income was recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Dividends were credited to the profit and loss account on the dates on which the relevant securities were listed as "ex-dividend". Dividend income was shown gross of any irrecoverable withholding taxes, which was disclosed separately in the profit and loss account, and net of any tax credits. Operating expenses The Fund was responsible for all normal operating expenses including audit fees, stamp and other duties and charges incurred on the acquisition and realisation of investments. Expenses were accounted for on an accruals basis. The AIFM met all other expenses incurred by the Unit Trust in connection with its services. Transaction costs Transaction costs are costs incurred to acquire financial assets or liabilities at fair value through profit or loss. They include fees and commissions paid to agents, advisers, brokers or dealers. Transaction costs, when incurred, were included as part of the cost of such purchases. Transaction costs were included in the ‘net fair value gain/(loss) on financial assets at fair value through profit or loss’ in the profit and loss account for each individual Fund. See note 2, ‘Fees and related party disclosures’, for further information on transaction costs. Distributions The unit classes were accumulating and therefore did not pay any distributions. Cash and other liquid assets Cash and other liquid assets were valued at their face value together with interest accrued, where applicable. Receivables Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables were recognised initially at fair value plus transaction costs that were directly attributable to their acquisition origination. They were subsequently measured at amortised cost using the effective interest method, less provision for impairment. Payables Payables were initially recognised at fair value and subsequently stated at amortised cost using the effective interest method. The difference between the proceeds and the amounts payable were recognised over the period of the payable using the effective interest method.

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Offsetting financial instruments Financial assets and liabilities were offset and the net amount was reported in the balance sheet when there was a legally enforceable right to offset the recognised amounts and there was an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. Redeemable participating units Redeemable participating units were redeemable at the unitholder’s option and were classified as financial liabilities. The participating unit could be put back into the Fund on any business day of the Fund for cash equal to a proportionate unit of the Fund’s Net Asset Value. The participating unit was carried at the redemption amount that was payable at the balance sheet date if the unitholder exercised his or her right to put the unit back into the Fund. In accordance with the provisions of the Trust Deed, listed investments and investments with prices quoted in over-the-counter markets or by market makers were stated at the last traded price on the valuation day for the purpose of determining the Net Asset Value per unit for subscriptions and redemptions and for various fee calculations. Net assets attributable to holders of redeemable participating units represented a liability in the balance sheet, carried at the redemption amount that would be payable at the balance sheet date if the unitholder exercised the right to redeem the unit to the Fund.

2. Fees and related party disclosures

Management fees The AIFM was entitled to receive, as remuneration for its services, management fees as set out in the Fund’s Supplementary Prospectus. The investment management fee payable was a percentage of the Net Asset Value of each class and will have been accrued daily and paid monthly in arrears. Any increase in the maximum permitted rate of management fee of 2.50% of Net Asset Value of the relevant Fund would only be implemented with the approval of unitholders of the relevant Fund. The AIFM might have appointed third-party distributors in jurisdictions where the Fund was sold. Such third-party distributors will have been compensated for their fees and expenses out of the management fee, preliminary charge or realisation charge. The AIFM was also be entitled to be repaid all of its out-of-pocket expenses out of the Net Asset Value of the relevant Fund, which will have included legal fees, couriers’ fees and telecommunication costs and expenses. The AIFM fee is 0.55% per annum of the Net Asset Value of Class I GBP Acc. There was no investment management fee on Class X GBP Acc (The Fund has closed and the Class X GBP Acc will not be launched), which was subject to a separate agreement with the Investment Manager. The assets of the Fund were managed by the Investment Manager, an investment management company incorporated in London on 6 April 1994. The Investment Manager is part of the Barings LLC group and is a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company (“MassMutual”). Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. Peter Clark, Timothy Schulze and Julian Swayne are connected to the Investment Manager through employment with Barings LLC group, its subsidiaries and affiliates.

19

Notes to the financial statements (continued) 2. Fees and related party disclosures (continued)

Administration fee In respect of Class I GBP Acc, the AIFM was entitled to receive an administration fee (in addition to the investment management fee) for providing administration and registration services out of which the AIFM will then have paid Northern Trust International Fund Administration Services (Ireland) Limited (“the Administrator”). This fee was calculated on a sliding scale, as set out below, and was calculated daily based on the Net Asset Value of the Fund and paid monthly in arrears. The administration fee for the Fund was subject to a charge of a minimum of £20,000.

Fee charges to the Fund % of total assetsFunds under management £0 to £100 million 0.025%Funds under management £100 million to £500 million 0.020%Excess 0.015% In addition, the Administrator will also have been paid transfer agency fees per transaction as well as annual fees per unitholder account, both at normal commercial rates. The Administrator was also entitled to be repaid out of the Net Asset Value of the Fund all of its reasonable out-of-pocket expenses incurred on behalf of the Fund, which would have included legal fees, couriers' fees and telecommunication costs and expenses.

Depositary fees The Depositary, Northern Trust Fiduciary Services (Ireland) Limited, was entitled to receive an annual fee of up to 0.025% based on the Net Asset Value of the Fund. The fee will have been accrued daily and paid monthly in arrears. In addition, the Depositary will have charged account maintenance fees as well as transaction and safekeeping fees per security transaction, both at normal commercial rates. Whilst the Depositary could have borne the sub-custodian fees for any sub-custodians appointed by it from time to time, it was entitled to seek reimbursement from the Fund in respect of such sub-custodian’s registration and out-of-pocket expenses at normal commercial rates.

Legal fee The fees paid to Dillon Eustace during the period were £nil (31 October 2017: £2,884). The fees paid to Matheson during the period amounted to £nil (31 October 2017: £nil).

Other expenses The Depositary will have paid out of the assets of the Fund the following fees and expenses: stamp duties, taxes, brokerage or other expenses of acquiring and disposing of investments, the fees and expenses of the auditors, listing fees and legal expenses of the Investment Manager, and the cost of establishing, maintaining and registering the Unit Trust and the units with any governmental or regulatory authority or with any regulated market deemed appropriate by the Investment Manager from time to time. The costs of printing and distributing reports, accounts and any prospectus and of publishing prices, and any costs incurred as a result of a change in law or the introduction of any new law (including any costs incurred as a result of compliance with any code relating to the Unit Trust, whether or not having the force of law) will also have been paid out of the assets of the Unit Trust . Expenses will have been charged to the Fund in respect of when they were incurred, or, where an expense was not considered by the Depositary to be attributable to any one fund, the expense will normally have been allocated by the Depositary to all Funds pro rata to the Net Asset Value of the relevant Funds.

20

Notes to the financial statements (continued) 2. Fees and related party disclosures (continued)

Rebate from Investment Funds The Investment Manager will have entered into a number of agreements with the investment managers of the Investment Funds where the Fund will have received a rebate of management fees charged in the Investment Funds. This rebate will have been received by the Fund on a monthly, quarterly or yearly basis depending on the agreement in place with the Investment Manager. The purpose of the rebates was to reduce the costs to the Fund to a level that would typically be the case with direct investments. Rebates were recognised on an accruals basis. The Fund invested in other Barings-managed funds throughout the period, and these were deemed to be related parties. The Fund received management fee rebates from these other Barings funds. Details of the rebates and the amounts received are disclosed separately in the profit and loss account. Transaction costs The transaction costs incurred by the Fund for the period 1 November 2017 to 30 April 2018 and the year ended 31 October 2017 were as follows:

30/04/2018* 31/10/2017 £ £

Baring Dynamic Growth Fund 9,407 22,276


Significant unitholdings The following table details significant concentrations in unitholdings of the Fund or instances where the units were beneficially held by other Investment Funds managed by the Investment Manager or one of its affiliates, as at 30 April 2018 and 31 October 2017. All units were redeemed on 18 January 2018.

Fund name

Number of unitholders with

beneficial interest greater than 20% of

the units in issue

Total % of unitholders with

beneficial interest greater than 20% of

the units in issue

Total % of units held by Investment Funds managed by

Baring International Fund Managers (Ireland) Limited or

affiliatesBaring Dynamic Growth Fund N/A (31/10/2017: 2) N/A (31/10/2017:

100.00%) N/A (31/10/2017: 22.32%)

In-specie transfer – Barings Dynamic Asset Allocation Fund

The Directors took the decision on 19 December 2017 to close Baring Institutional Funds (“the Unit Trust ”) via an in-specie transfer to the Barings Dynamic Asset Allocation Fund on 18 January 2018. On the 18 January 2018, following the final valuation of the Unit Trust, all investment assets and cash held by the Unit Trust were transferred to the portfolio of Barings Dynamic Asset Allocation Fund.

There were no transactions with connected parties, other than as disclosed above, during the period ended 30 April 2018.

21

Notes to the financial statements (continued) 3. Net gains on investments

The following table analyses the realised and unrealised gains and losses on investments and currencies from the profit and loss account on page 13. This analysis complies with the CBI’s AIF Rulebook.

30/04/2018* 31/10/2017£ £

Realised gains on sale of investments 5,737,547 3,221,829Realised losses on sale of investments 792,081 (1,105,156)Realised currency gains 1,020,283 2,980,371Realised currency losses (190,272) (4,256,108)Unrealised gains on investments 589,284 2,962,773Unrealised losses on investments (6,502,821) (3,507,583)Unrealised currency gains 11,160 3,251,079Unrealised currency losses (1,090,903) (27,412)

366,359 3,519,793* For the period 1 November 2017 to 30 April 2018.

4. Units issued and redeemed

Baring Dynamic Growth Fund - Class I GBP Acc 30/04/2018 31/10/2017Units Units

By number:Units in issue at beginning of the period/year 380,292 388,433Units issued during the period/year 160 444Units redeemed during the period/year (380,452) (8,585)Units in issue at the end of the period/year - 380,292

By value: £ £Value of units issued during the period/year 21,686 56,710Value of units redeemed during the period/year (51,722,663) (1,111,446)Net value of units redeemed during the period/year (51,700,977) (1,054,736)

5. Soft commission arrangements

As of 2 January 2018, Barings no longer operates soft commission arrangements. Barings will continue to consume external research by paying for it from its own account. The Fund did not engage in such activities during the period (31 October 2017: nil).

6. Comparative statistics 30/04/2018 31/10/2017 31/10/2016

Total Net Asset Value £ £ £Baring Dynamic Growth Fund - Class I GBP Acc - 51,241,926 48,233,434

Net Asset Value per unitBaring Dynamic Growth Fund - Class I GBP Acc - 134.74 124.17

22

Notes to the financial statements (continued) 7. Exchange rates

The exchange rates used at the period/year-end date were: Exchange rate to £ Exchange rate to £

30/04/2018 31/10/2017Australian dollar 1.8247 1.7261Brazilian real 4.8038 4.3442Canadian dollar 1.7657 1.7119Euro 1.1400 1.1399Hong Kong dollar 10.8098 10.3604Indonesian rupiah 19,162.3838 18,010.3219Japanese yen 150.7165 150.8950Mexican peso 25.8696 25.4040South Korean won 1,471.0788 1,487.7688Turkish lira 5.5993 5.0416US dollar 1.3774 1.3280

8. Financial risk management

Strategy in using financial instruments The Fund was exposed to a variety of financial risks in pursuing its stated investment objective and policy. These risks included, but were not limited to, credit risk, liquidity risk and market risk (which in turn includes foreign currency risk, interest rate risk and price risk). The Fund took exposure to some of these risks to generate investment returns on its portfolio, although these risks could have also potentially resulted in a reduction in the Fund’s equity. The Investment Manager will have used its best endeavors to minimise the potentially adverse effects of these risks on the Fund’s performance where it could do so, while still managing the investments of the Fund in a way that was consistent with the Fund’s investment objective and policy. The investment objective of the Fund was disclosed in the Prospectus and the Investment Manager’s report. The risks and the measures adopted by the Fund for managing these risks are detailed below. The main risks arising from the Fund’s financial instruments were market, foreign currency, interest rate, credit and liquidity risk. The AIFM reviews and agrees policies for managing each of these risks and they are summarised below. (a) Market price risk Market price risk is defined in FRS 102 as “the risk that the fair value of a financial instrument or its future cash flows will fluctuate because of changes in market prices”. The Fund assets consisted principally of Investment Funds, bonds, equities, forward foreign currency exchange contracts, futures and options. The values of these instruments were determined by market forces and there was accordingly a risk that market prices could change in a way that was adverse to the Fund’s performance. The Fund adopted a number of investment restrictions, which were set out in the Unit Trust’s Prospectus, which limited the exposure of the Fund to adverse changes in the price of any individual financial asset. In accordance with the Fund’s policy, the Investment Manager monitored the Fund’s position on a daily basis and reported regularly to the Board of Directors of the AIFM, which reviewed the information on the Fund’s overall market exposures provided by the Investment Manager at its periodic meetings. The Investment Manager used three techniques to help in the risk management process: monitoring of compliance with quantitative limits, prevention of limit breaches and trade monitoring. These techniques allowed the Investment Manager to ensure that the Fund remained in compliance with the restrictions in the Prospectus by which the Fund was governed. In addition, the Investment Manager managed the exposure of the portfolio to the risk of adverse changes in the general level of market prices through adhering to its formal risk management process, which includes the use of systems and technology to monitor overall market and position risk on a daily basis.

23

Notes to the financial statements (continued) 8. Financial risk management (continued)

Strategy in using financial instruments (continued) (a) Market price risk (continued) The maximum risk arising from an investment was determined by the fair value of its financial instruments. The overall market exposures and concentration of risk could be seen in the portfolio statement and on the balance sheet of the Fund. The Fund’s market price risk will have been affected by two components: changes in market prices and currency exchange rates. The method used to determine the global exposure was the absolute Value at Risk (“VaR”) method. VaR was calculated daily using RiskMetrics (one of the leading suppliers of risk management software). Where relative VaR was used, the calculation used a Monte Carlo methodology and utilised a 99% confidence interval, a ten-day holding period and one year of daily returns. Any positions in the Fund with a shorter history had the missing returns backfilled using the appropriate local market sector index returns. The Fund’s VaR is shown as a percentage of the VaR of the performance comparator or reference portfolio fund for the underlying fund to ensure that the relative figure is within an internal limit. This limit is set lower than a multiple of two (or 200%) of the performance comparator or reference portfolio VaR. The Fund’s VaR is shown as a percentage of the Fund’s Net Asset Value and is monitored against an internal limit. This limit is set lower than 20%. There is no VaR data as at 30/04/2018 as Baring Dynamic Growth Fund closed via an in-specie transfer to the Dynamic Asset Allocation Fund on 18 January 2018. Fund name

30/04/2018 31/10/2017 Lowest Highest Mean

(a) Market price risk (continued)

Composition of reference portfolio As at 30/04/2018

As at 31/10/2017

Barclay Capital US High Yield N/A 12.50%FTSE Property N/A 7.00%Gold N/A 3.00%JPM EMBI Global Diversified Index N/A 10.00%Merrill Lynch Sterling Non Gilt N/A 2.50%MSCI Emerging Markets Asia N/A 13.00%MSCI Europe N/A 7.50%MSCI United Kingdom N/A 27.00%MSCI USA N/A 12.50%US 10 Year T-Bond N/A 5.00%Cash GBP N/A 23.50%Cash USD N/A -16.00%Cash EUR N/A -7.50%

Fund name30/04/2018 31/10/2017 Lowest Highest Mean

Baring Dynamic Growth Fund N/A 1.70% N/A N/A N/A

VaR for Baring Dynamic Growth Fund - reference portfolio N/A 2.80% N/A N/A N/A

Absolute VaR over the past financial period/year

Fund relative VaR over the past financial period/year

Baring Dynamic Growth Fund N/A 62.30% N/A N/A N/A

24


Strategy in using financial instruments (continued)

(a) Market price risk (continued) Some limitations of VaR analysis: • the methodology is based on historical data and cannot take account of the fact that future market price

movements, correlations between markets, and levels of market liquidity in conditions of market stress may bear no relation to historical patterns; and

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

(b) Foreign currency risk Foreign currency risk is defined in FRS 102 as “the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates”. The Fund was exposed to foreign currency risk as assets and liabilities of the Fund may have been denominated in a currency other than the functional currency of the Fund, which was the Pound sterling. Fluctuations in the rate of exchange between the currency in which the asset or liability was denominated and the functional currency could have resulted in an appreciation or depreciation in the fair value of those assets and liabilities. The Investment Manager was permitted but not obliged to use hedging techniques to attempt to offset market and foreign currency risk. In accordance with the Unit Trust’s policy, the Investment Manager monitored the Fund’s currency exposures on a daily basis and reported regularly to the Directors of the AIFM, which reviewed the information provided by the Investment Manager on any significant exposures at its periodic meetings. The Investment Manager did not use FFCTs on the Fund at a share class level as a tool and technique to hedge its currency exposure. (c) Interest rate risk This risk is defined in FRS 102 as “the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates”. The Fund held fixed-interest-rate debt securities which were exposed to fair value interest rate risk, where the value of these securities may have fluctuated as a result of a change in market interest rates. All other financial assets and financial liabilities, with the exception of cash at bank balances and cash at broker (margin cash), held by the Fund were not directly exposed to interest rate risk. The Fund was exposed to interest rate risk on the interest earned on its cash and bank balances. This exposure was not considered to be significant. Interest rate risks were managed by the Investment Manager, whose management of interest rate risk was monitored through regular performance reviews with senior managers as well as through monthly peer reviews of their positioning held with senior managers. Individual managers were authorised to initiate fixed- income trades within pre-set limits. Other assets were not directly exposed to interest rate risk as there was no re-pricing carried out on these assets. Duration was a measure of the sensitivity of a bond price to interest rates. The duration was covered within the VAR calculations. The percentage change in the price was equal to the change in interest rates multiplied by the modified duration.

(d) Liquidity risk Liquidity risk is defined in FRS 102 as “the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset”. The Fund was exposed to daily cash redemptions of units. However, the AIFM was entitled, with the approval of the Depositary, to limit the number of units of any class realised on any dealing day to 10% of the total number of units of that class in issue.

25


Strategy in using financial instruments (continued) (d) Liquidity risk (continued) There were also a number of circumstances when the AIFM might, with the approval of the Depositary, temporarily suspend the right of unitholders to require the realisation of units of any class and/or might delay the payment of any monies in respect of any such realisation. The Fund invested the majority of its assets in securities and other instruments that were traded on an active market and which were considered to be liquid as they could be readily disposed of in the event that cash needed to be raised to meet redemptions or to pay expenses. In accordance with the Unit Trust’s policies, the Investment Manager monitored the Fund’s liquidity on a daily basis and reported regularly to the Directors of the AIFM, which reviewed the information provided by the Investment Manager on significant exposures at its periodic meetings. At 30 April 2018 and 31 October 2017, the Fund’s financial liabilities, as disclosed on the balance sheet, were all due within one month. The table below analyses the Fund’s financial derivative instruments that will be settled on a gross basis into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. As at 30 April 2018, there were no open forward foreign currency positions.

<1 month 1-3 months >3 months <1 month 1-3 months >3 months30/04/2018 30/04/2018 30/04/2018 31/10/2017 31/10/2017 31/10/2017

Forward foreign currency exchange £ £ £ £ £ £Inflow - - - 66,471 33,643,942 - Outflow - - - (66,033) (32,471,233) -

(e) Credit risk Credit risk is defined in FRS 102 as “the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation”. The Fund will have been exposed to a credit risk on parties with whom it traded and will have borne the risk of settlement default. All transactions in listed securities were settled/paid for upon delivery using approved brokers. The risk of default was considered minimal, as delivery of securities sold was only made once the broker had received payment. Payment was made on a purchase once the securities had been received by the broker. The trade will have failed if either party failed to meet its obligation. The Fund was exposed to credit risk on cash and investment balances held with the Depositary. Credit risk statement Northern Trust Fiduciary Services (Ireland) Limited (“NTFSIL”) was the appointed Depositary of the Fund, responsible for the safe-keeping of assets. NTFSIL appointed The Northern Trust Company (“TNTC”) as its global sub-custodian. Both NTFSIL and TNTC are wholly owned subsidiaries of Northern Trust Corporation (“NTC”). As at the period-end date, 30 April 2018, NTC had a long-term credit rating from Standard & Poor’s (“S&P’s”) of (A+). TNTC (as global sub-custodian of NTFSIL) does not appoint external sub-custodians within the US, the UK, Ireland and Canada. However, in all other markets, TNTC appoints local external sub-custodians. NTFSIL, in the discharge of its Depositary duties, verifies the Fund’s ownership of Other Assets, (as defined under Art 21 (8)(b) of Directive 2011/61/EU), by assessing whether the Fund holds the ownership, based on information or documents provided by the Fund or, where available, on external evidence. TNTC, in the discharge of its delegated Depositary duties, holds in custody (i) all financial instruments that may be registered in a financial instruments account opened on the books of TNTC and (ii) all financial instruments that could be physically delivered to TNTC. TNTC ensures all financial instruments (held in a financial instruments account on the books of TNTC) were held in segregated accounts in the name of the Fund, clearly identifiable as belonging to the Fund, and distinct and separate from the proprietary assets of TNTC, NTFSIL and NTC.

26


(e) Credit risk (continued) In addition, TNTC, as banker, holds cash of the Fund on deposit. Such cash is held on the Statement of Financial Position of TNTC. In the event of the insolvency of TNTC, in accordance with standard banking practice, the Fund would rank as an unsecured creditor of TNTC in respect of any cash deposits. The insolvency of NTFSIL and or one of its agents or affiliates may cause the Fund’s rights with respect to its assets to be delayed. The Responsible Party manages risk by monitoring the credit quality and financial position of the Depositary, and such risk is further managed by the Depositary monitoring the credit quality and financial positions of sub-custodian appointments. The Fund was exposed to counterparty risk through the organisations with which it trades. Many of the Fund’s financial assets were Investment Funds. The Investment Funds themselves were also exposed to credit risk through their investments in corporate bonds, loans and other instruments, and counterparty risk through the organisations with which the Fund traded. The Investment Manager reviewed concentrations of credit risk on a fortnightly basis. All exposures to counterparty credit risk were monitored by Baring Asset Management Limited’s Counterparty Credit Committee and were subject to Baring Asset Management Limited’s Counterparty Credit Policy (“CCP”). Baring Asset Management Limited required a minimum credit rating of Dunn and Bradstreet (“D&B”) 3, but also actively avoided exposure to entities having an S&P rating of less than AA-, even where the D&B rating was 3 or better. Adherence to the CCP was very rigidly enforced. Any changes to ratings which caused divergence from CCP were acted on immediately without exception. Application for Initial Public Offerings (“IPOs”), for example, was subject to the credit rating of the entity to whose balance sheet the application was to expose the investing fund. Where no satisfactory rating was applied, Baring Asset Management Limited insisted that monies were paid into a ring-fenced 'Client Money' account, hence avoiding exposure not permitted by the CCP. The Fund minimised concentrations of credit risk by undertaking transactions with a large number of regulated counterparties on recognised and reputable exchanges. Investments into Investment Funds exposed the Fund to the variability of the underlying funds. This was monitored by understanding the investment objectives of the underlying funds as well as their internal control policies and regular risk and performance reporting. The Fund had regular access to the management of these underlying funds. To manage the risk, the Investment Manager performed extensive initial and ongoing due diligence on the underlying funds. The managers of the underlying funds were required to provide the Investment Manager with reports on a regular basis monitoring their internal controls and operational infrastructure. The Fund will have had counterparty risk in relation to transactions it entered into with brokers, banks and other third parties if the counterparty was to fail to complete any transaction to which the Fund was a party. Credit risk arising from receivables relating to unsettled trades was considered small due to the short settlement period involved. The maximum exposure related to unsettled trades equals the amounts shown on the balance sheet. There were no past due or impaired assets as of 30 April 2018 (31 October 2017: nil). The net assets (fair value of investments, cash and receivables relating to securities) exposed to credit risk at the period-end amounted to:

30/04/2018 31/10/2017Fund name £ £Baring Dynamic Growth Fund 103,018 51,570,703

All bonds held by Baring Dynamic Growth Fund were investment grade bonds, i.e. had a Standard and Poor’s rating of BBB- and above (2017: same).

27


(f) Fair value hierarchy

FRS 102 (as amended) requires the Fund to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability,

either directly (that is, as prices) or indirectly (that is, derived from prices). • Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable

inputs). The level in the fair value hierarchy within which the fair value measurement was categorised in its entirety was determined on the basis of the lowest input that was significant to the fair value measurement in its entirety. For this purpose, the significance of an input was assessed against the fair value measurement in its entirety. If a fair value measurement used observable inputs that required significant adjustment based on unobservable inputs, that measurement was a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constituted ‘observable’ required significant judgement by the AIFM. The AIFM considered observable data to be market data that was readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that were actively involved in the relevant market. The table below sets out fair value measurements using the FRS 102 fair value hierarchies:

The Fund closed via an in-specie transfer to Baring Dynamic Asset Allocation Fund on 18 January 2018. Thus there were no investments at 30 April 2018. As at 30 April 2018 Total Level 1 Level 2 Level 3

£ £ £ £Baring Dynamic Growth FundFinancial assetsInvestment Funds - - - - Debt instruments - - - - Equities and exchange-traded funds - - - - Futures - - - - Open forward foreign currency transactions - - - - Total financial assets - - - -

Financial liabilitiesFutures - - - - Open forward foreign currency transactions - - - - Total financial liabilities - - - -

28


(f) Fair value hierarchy (continued)

As at 31 October 2017 Total Level 1 Level 2 Level 3£ £ £ £

Baring Dynamic Growth FundFinancial assetsInvestment Funds 24,294,733 - 24,294,733 - Debt instruments 10,773,353 - 10,773,353 - Equities 13,237,212 13,237,212 - - Futures 230,993 230,993 - - Open forward foreign currency contracts 1,214,643 - 1,214,643 - Total financial assets 49,750,934 13,468,205 36,282,729 -

Financial liabilitiesFutures (9,464) (9,464) - - Open forward foreign currency transactions (41,496) - (41,496) - Total financial liabilities (50,960) (9,464) (41,496) -

There were no transfers during 2018 or 2017 from level 1 to level 2 or from level 2 to level 1.

9. Bank facilities

There was a bank overdraft facility in place with The Northern Trust Company (“TNTC”). An “uncommitted” multi-currency loan facility was made available by TNTC to the Fund. As at 30 April 2018, the Fund had not drawn down on this facility (31 October 2017: same).

10. Taxation

Under current law and practice, the Unit Trust qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended (“the TCA”). On that basis, it is not chargeable to Irish tax on its income or capital gains. However, Irish tax could arise on the happening of a chargeable event in the Unit Trust . A chargeable event includes any distribution payments to unitholders or any encashment, redemption, transfer or cancellation of units and any deemed disposal of units for Irish tax purposes arising as a result of holding units in the Unit Trust for a period of eight years or more. No Irish tax will arise in respect of chargeable events in respect of a unitholder who is an Exempt Irish Investor (as defined in Section 739D of the TCA) or who is neither Irish resident nor ordinarily resident in Ireland for tax purposes at the time of the chargeable event, provided, in each case, that an appropriate valid declaration in accordance with Schedule 2B of the TCA is held by the Unit Trust, or the Unit Trust has been authorised by Irish Revenue to make gross payments in the absence of appropriate declarations. Capital gains, dividends, and interest received on investments made by the Unit Trust may be subject to withholding taxes imposed by the country of origin, and such taxes may not be recoverable by the Unit Trust or its unitholders.

11. Significant events

Please refer to the key changes during the period on page 9.

12. Subsequent events

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

13. Approval of financial statements The financial statements were approved by the Directors of the AIFM on 20 August 2018.

29

Portfolio statement* As at 30 April 2018

Financial assets at fair value through profit or loss

Nominal Fair value % ofCurrency holdings £ NAV

Investment Funds: 0.00% (31 Oct 2017: 47.41%) - - - -

Europe: 0.00% (31 Oct 2017: 15.59%) - - - -

Global Emerging Markets: 0.00% (31 Oct 2017: 0.06%) - - - -

Japan: 0.00% (31 Oct 2017: 6.71%) - - - -

North American Institutions: 0.00% (31 Oct 2017: 8.41%) - - - -

United Kingdom: 0.00% (31 Oct 20147: 7.30%) - - - -

United States: 0.00% (31 Oct 2017: 8.17%) - - - -

World: 0.00% (31 Oct 2017: 1.17%) - - - -

Debt instruments: 0.00% (31 Oct 2017: 21.03%)

Belgium: 0.00% (31 Oct 2017: 0.14%) - - - -

Brazil: 0.00% (31 Oct 2017: 2.45%) - - - -

Canada: 0.00% (31 Oct 2017: 0.27%) - - - -

Hungary: 0.00% (31 Oct 2017: 3.11%) - - - -

Mexico: 0.00% (31 Oct 2017: 4.56%) - - - -

Poland: 0.00% (31 Oct 2017: 2.99%) - - - -

Turkey: 0.00% (31 Oct 2017: 2.51%) - - - -



Equities and exchange-traded funds: 0.00% (31 Oct 2017: 25.80%)

Australia: 0.00% (31 Oct 2017: 0.15%) - - - -

Belgium: 0.00% (31 Oct 2017: 1.63%) - - - -

Canada: 0.00% (31 Oct 2017: 0.13%) - - - -

Europe: 0.00% (31 Oct 2017: 3.07%) - - - -

Finland: 0.00% (31 Oct 2017: 0.78%) - - - -

30

Portfolio statement* (continued) As at 30 April 2018

Financial assets at fair value through profit or loss

Nominal Fair value % ofCurrency holdings £ NAV

France: 0.00% (31 Oct 2017: 2.33%) - - - -

Germany: 0.00% (31 Oct 2017: 3.58%) - - - -

Global Emerging Markets: 0.00% (31 Oct 2017: 2.36%) - - - -

Japan: 0.00% (31 Oct 2017: 5.89%) - - - -

Netherlands: 0.00% (31 Oct 2017: 0.29%) - - - -

South Korea: 0.00% (31 Oct 2017: 0.46%) - - - -

Spain: 0.00% (31 Oct 2017: 0.67%) - - - -



World: 0.00% (31 Oct 2017: 2.78%) - - - -

Futures contracts: 0.00% (31 Oct 2017: 0.45%) - - - -

- - - -

Futures contracts: 0.00% (31 Oct 2017: (0.02%)) - - - -

- - - -

Net financial assets and liabilities at fair value through profit or loss - -Cash 103,018 -Margin cash - -Other net liabilities (103,018) -Total net assets attributable to equity holders - -

Equities and exchange-traded funds: 0.00% (31 Oct 2017: 25.80%) (continued)

Open forward foreign currency transactions: 0.00% (31 Oct 2017: 2.36%)

Open forward foreign currency transactions: 0.00% (31 Oct 2017: (0.07%))

* The were no portfolio holdings as at 30 April 2018. Baring Institutional Funds (“the Unit Trust ”) closed on 18 January 2018.


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Appendix 1 ─ Securities financing transactions regulation ─ Unaudited

The securities financing transactions regulation requires Baring International Fund Managers (Ireland) Limited (“the AIFM”) to comply with a series of obligations. In particular, the AIFM is required to provide investors with information on the use of securities financial transactions (“SFTs”) and total return swaps (“TRSs”) by the Baring Institutional Funds (“the Unit Trust ”) in all interim and annual reports published from 13 January 2017.

During the period 1 November 2017 to 30 April 2018, the Unit Trust did not enter into SFTs and TRSs.

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Appendix 2 ─ Remuneration disclosure ─ Unaudited

Baring Dynamic Growth Fund (“the Fund”) — Unaudited

The Alternative Investment Fund Manager’s (“the AIFM’s”) remuneration policy ensures that the remuneration arrangements of “Identified Staff” as defined in “ESMA’s Guidelines on Sound Remuneration Policies under the Alternative Investment Fund Managers Directive (“AIFMD”), ESMA 2013/201 (the 'ESMA Guidelines') (as amended) are:

(i) consistent with and promote sound and effective risk management and do not encourage risk-taking which is inconsistent with the risk profile, rules or instruments of incorporation of the AIFM or the Company; and

(ii) consistent with the AIFM’s business strategy, objectives, values and interests and include measures to avoid conflicts of interest.

The AIFM complies with the AIFMD remuneration principles in a way and to the extent that is appropriate to its size and business.

The AIFM has appointed Baring Asset Management Limited (“BAML”) as the delegate to carry out investment management (“the Investment Manager”). The Investment Manager is authorised in the UK by the Financial Conduct Authority (“FCA”).

Remuneration committee

Due to the size and nature of the AIFM, the Board of Directors of the AIFM (the “AIFM Board”) considers it appropriate to dis-apply the requirement to appoint a remuneration committee.

The AIFM is part of the Barings LLC group of companies (together “Barings”). Barings has two remuneration committees to take remuneration decisions, namely the Remunerations Committee and the Senior Compensation Committee.

The remuneration committees ensure the fair and proportionate application of the remuneration rules and requirements and ensure that potential conflicts arising from remuneration are managed and mitigated appropriately.

AIFMD remuneration Identified Staff

The AIFM must determine its Identified Staff, whose professional activities have a material impact on its risk profile. Identified Staff includes senior managers, controlled functions and risk takers.

a) Senior managers and controlled functions

i) The AIFM Board: the independent directors receive a fixed director’s fee (they did not receive any variable remuneration or performance-based pay. The other directors, waived their entitlement to receive a director’s fee from the AIFM.

ii) Designated persons performing the managerial functions of risk management and monitoring investment performance. The designated persons were seconded from Duff & Phelps Financial Services (Ireland) Limited, were not employed by the AIFM and did not receive a salary from the AIFM.

There are no other controlled functions or senior management or Identified Staff employed by the AIFM.

b) Risk takers Portfolio managers: the portfolio managers are remunerated by the Investment Manager under an equivalent remuneration regime (the Investment Manager and its subsidiaries are subject to remuneration rules contained in the Capital Requirements Directive (“CRD”) and these are considered to be equally as effective as those contained in the AIFMD).

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Appendix 2 ─ Remuneration disclosure ─ Unaudited (continued)

Remuneration disclosure: the Fund The table below summarises the fixed and variable remuneration paid to Identified Staff as well as other Barings staff (remunerated by the Investment Manager) that carry out activities for the AIFM. The disclosures below show remuneration relevant to the Company, apportioned using total Barings Assets under Management (“AUM”). Number of

beneficiaries Total fixed

remuneration for the period

Total variable remuneration for the period

Total remuneration

Barings Dynamic Growth Fund

AIFM staff 322 €46,395 €164,054 €210,449

Identified Staff 8 €23,055 €122,797 €145,852 Notes:

1. AIFM staff: this includes all relevant staff managing the AIFM’s funds. Remuneration is apportioned based on the relevant AUM. Other than the Identified Staff noted above, none of the staff are considered to be senior managers or others whose actions may have a material impact on the risk profile of the Company.

2. Identified Staff: these are as defined in the AIFM’s remuneration policy.

3. Variable remuneration consists of a cash bonus and deferred awards awarded in the period.

4. The Company does not pay either performance-related fees or carried interests to any person.

Registered address: Baring International Fund Managers (Ireland) Limited 70 Sir John Rogerson’s Quay Dublin 2 D02 R296 Ireland Contact: Tel: +353 1 542 2930 Fax: +353 1 670 1185 www.barings.com

Important information: This document is approved and issued by Baring International Fund Managers (Ireland) Limited.

Disclosure: Baring International Fund Managers (Ireland) Limited Authorised and regulated by the Central Bank of Ireland 70 Sir John Rogerson’s Quay, Dublin 2, D02 R296, Ireland

http://www.barings.com/

Documents

Baring Institutional Funds...The Directors took the decision on 19 December 2017 to close Baring Institutional Funds (“the Unit Trust via ”) an in-specie transfer to the Baring