INTERIM REPORT AND AUDITED FINANCIAL STATEMENTS - allchurches investment... · INTERIM REPORT AND AUDITED FINANCIAL STATEMENTS. Contents ... Allchurches Amity Fund 6 ... the current

30 June 2007

allchurches investment fundsINTERIM REPORT AND AUDITED FINANCIAL STATEMENTS

Contents

Introduction 3

Report of the Authorised Corporate Director – Investment environment 4

Allchurches Amity Fund 6

Allchurches Higher Income Fund 8

Allchurches UK Equity Growth Fund 10

Allchurches European Growth Fund 12

Allchurches International Growth Fund 14

Authorised Status 16

Certification of Accounts 16

Statement of Total Return 17

Statement of Change in Shareholders' Net Assets 18

Portfolio Statements 19

Balance Sheet 37

Summaries of Material Portfolio Changes 38

Notes to the Financial Statements 42

Management contact details

Authorised Corporate Director

The Authorised Corporate Director (ACD) is

Allchurches Investment Management Services

Limited (AIMS). The investments of Allchurches

Investment Funds (AIF) are managed by the

ACD. The ACD has prepared financial statements

that comply with the Statement of Recommended

Practice for Open-Ended Investment Companies

issued by the Investment Management Association

in December 2005 (revised in 2006).

Constitution

AIF is an Open-Ended Investment Company (OEIC). It has

variable capital and was incorporated with limited liability

under the Open-Ended Investment Companies

Regulations 2001 (OEIC Regulations) in Great Britain

under registered number IC 00037. It is authorised and

regulated by the Financial Services Authority.

AIF is an ‘umbrella’ company and comprises five

authorised investment securities sub-funds.

Allchurches Investment

Management Services Limited

Beaufort House, Brunswick Road,

Gloucester GL1 1JZ.

Tel 0845 777 3322

Email [email protected]

www.ecclesiastical.com

Authorised and Regulated by the

Financial Services Authority

Directors of Allchurches Investment

Management Services Limited (AIMS)

N J E Sealy, FCA (Chairman)

M H Tripp, BSc, A.R.C.S., FIA

G A Prescott, BA, FCA

Ultimate Parent Company of the ACD

Allchurches Trust Limited

Beaufort House, Brunswick Road,

Gloucester GL1 1JZ.

Depositary

The Bank of New York Trust and

Depositary Company Limited

One Canada Square,

London E14 5AL.

Authorised and Regulated by the

Financial Services Authority

Registrar

Northern Trust International Fund

Administration Services (UK) Limited

50 Bank Street, Canary Wharf,

London E14 5NT.

Auditors

Deloitte & Touche LLP

Stonecutter Court,

One Stonecutter Street,

London EC4A 4TR.

ALLCHURCHES INVESTMENT FUNDS SHORT REPORT 3

Introduction

Allchurches Investment

Funds – with its five

investment sub-funds, is

offered by Allchurches

Investment Management

Services Limited (AIMS).

The philosophy behind the Allchurches

Investment Funds is one of performance

and personal client service.

This Report is for the period from

1 January 2006 to 31 December 2006.

Included in the Report by the Authorised

Corporate Director (ACD), you will find

information on the performance of the

sub-funds and the funds’ prospects,

as well as information on the performance

record and major holdings of each

sub-fund.

The ACD will send a copy of the interim

and annual Short Report to any shareholder

whose name appears on the share register

at the relevant accounting reference

date or interim accounting reference date

as permitted by the Financial Services

Authority regulations.

Further copies of the interim and annual

Long and Short Reports will be available

on request from the ACD and to download

from www.ecclesiastical.com/longreport

Copies of all reports to shareholders will

be available for inspection by the general

public at the ACD’s offices:

4 SHORT REPORT ALLCHURCHES INVESTMENT FUNDS

Global equity markets generally

produced solid positive returns over

the course of the first half of 2007,

and many markets traded at all-time

highs. The underlying reason for the

strength was the enduring broad

based global economic expansion

which continued to outweigh rising

doubts about inflationary pressures.

Looking forward, there is little to suggest that

the current rate of progress cannot be

maintained for the rest of the year, though

shrinking spare capacity may yet mean that

fears of higher inflation and attendant tighter

interest rate policies are realised. Under such

circumstances, it is likely that strength in share

prices will be accompanied by greater volatility.

The United Kingdom

The FTSE All Share Index rose by 5.7% over the

period, its performance led by the 6.2% rise of

the FTSE 100 Index of larger companies which

was ahead of Mid Cap and Smaller companies

which rose 3.1% and 3.0% respectively. The

improvement in the fortunes of the larger

companies reflected a belated acknowledgement

that they were attractively valued, a greater

number of larger companies featuring as bid

targets, and a rising level of caution from

investors regarding the prospects of the

domestic economy to which medium and smaller

companies are more exposed.

Among the best performing sectors were mining,

chemicals and engineering, all reflecting buoyant

trading conditions in the global economy.

Sectors at the bottom of the performance table

generally reflected rising interest rates and the

prospect of slowing UK consumer demand, and

included real estate, general retailers and banks.

Corporate takeover activity continued at the

frenetic levels seen in late 2006. Notable names

to attract predatory interest were Alliance Boots,

Hanson, ICI, and Reuters. UK companies were

not just targets, however, with Barclays and

Royal Bank of Scotland squaring up to each

other in a tussle over the ownership of the Dutch

bank ABN Amro.

The economic variable subject to the most

comment was the rate of inflation. After several

months on a rising trend the Consumer Price

Index (CPI) registered an annual gain of 3.1% in

March, more than one percentage point over its

target of 2.0%. In accordance with its terms of

reference the Monetary Policy Committee (MPC)

was obliged to write a letter to the Chancellor of

the Exchequer. The MPC had been attempting

to dampen domestic demand, with interest rates

increased twice in the first six months of the

year, but its efforts were undermined by external

factors such as high food price inflation.

Rising inflation and interest rates bore down on

fixed interest issues which meant that the FTA

All Stocks Index fell 5.6%.

Europe

Over the first six months of 2007 the

FTSEurofirst 300 Index rose 8.2%. The core

economies of the region continued their strong

performance of recent months. Strong global

growth continued to provide good demand for

exports and the knock-on effect was falling

unemployment and buoyant consumer

confidence, so providing extra demand at the

domestic level. Under these conditions it was no

surprise to see the stock markets of Germany

and France close to the top of the regional

performance table.

In contrast, some of the more peripheral

economies such as Ireland and Spain, where

much of their recent growth had been fuelled by

very buoyant property and construction sectors,

suffered as rising interest rates curtailed activity.

The European Central Bank (ECB) remained

vigilant regarding inflationary pressures – noting

elevated energy and producer prices – and

raised its core borrowing rate twice to leave it at

5.0% by the period end, and retained a bias to

further increases.

United States of America

The Dow Jones Industrial Average rose 7.6%

and the 6.0% rise of the broader S&P 500 Index

pushed it close to a new all-time high. Despite

negative news from the housing market,

Report of the Authorised Corporate Director Investment environment

1 January 2007 to 30 June 2007


economic conditions in the wider economy

generally remained encouraging.

The main negative was the state of the housing

market. Reflecting previous interest rate rises,

activity and prices in this sector dropped sharply,

and these developments highlighted several

cases of lax lending criteria over recent years,

with defaults reported at several lenders to the

sub-prime market.

In light of the conflicting economic signals,

therefore, the Federal Reserve (Fed) elected to

keep its key interest rates unchanged at 5.25%

over the period.

The economic factor to attract most attention

was the declining value of the US Dollar which

fell to its lowest level for a quarter of a century.

The slightly lower pace of domestic economic

expansion and the fact that interest rates

remained unchanged when many other regions

of the world increased theirs may have played a

part in its decline, but there was also evidence

that sovereign lenders were beginning to look

beyond US instruments for their reserve

requirements.

Japan & Asia Pacific

The outstanding story in the region over the first

part of 2007 was the rise of the Chinese stock

market. Shanghai A shares for domestic investors

rose 96.0%, and the Shanghai B share index for

foreign investors rose 42.4%. Though economic

conditions for Chinese companies remained very

encouraging, with growth in excess of 11.0%,

there were real fears that share prices were

being driven to unsustainable levels by frantic

dealing on the part of domestic day traders,

many of whom were first-time investors.

Large gains were not restricted to Chinese

stocks, however, with the markets in Singapore,

Korea and Malaysia rising by 18.7%, 21.6% and

23.6% respectively.

In Japan, the slow and steady rehabilitation of

the Japanese economic and financial system

continued. The Nikkei Index rose 5.3% over

the six months to 30 June 2007.

Outlook

The extended and broad based expansion of

the world economy continues to provide a very

supportive environment for equity investors, and

the immediate outlook would suggest that this

trend can be maintained. This benign

assessment does not come without risks,

however. There are signs that spare capacity is

becoming increasingly hard to find and there is a

chance that price inflation may prove to be more

elevated and enduring than has been the case in

recent years. This in turn will probably require

interest rates at levels above those currently

anticipated by many investors. The effects of

higher interest rates on, for example, the US

housing market have, to date, remained relatively

self-contained, but there can be no guarantee

that this will remain the case indefinitely.

All told, further upward progress in share prices

is likely to be accompanied by greater stock

market volatility. Any dislocation in the relative

prices of differing assets will offer long-term

investors attractive investment opportunities.

Key Points

■ First half of 2007 Summary

Global equity markets

have produced positive

returns and despite

inflationary pressures

strong market

performances were

seen over the first half

of the year.

■ UK

FTSE All Share Index

rose 5.7% and FTSE

100 Index rose 6.2%.

Inflation and interest

rates also rose.

■ Europe

FTSEurofirst 300 Index

rose 8.2% and ECB

core borrowing rate

rose to 5.0%.

■ US

Whilst the Dow Jones

Industrial Average rose

7.6% and S&P 500 Index

rose 6.0% the value of

the US Dollar fell to its

lowest level for a quarter

of a century.

■ Japan/Asia Pacific

Economies in the region

enjoyed strong

performance particularly

China where the Shanghai

A share index rose 96.0%

and Shanghai B share

index rose 42.4%.

■ Outlook

The strong market

performances of the year

so far are likely to continue

for the remainder of 2007

however this is likely to be

accompanied by greater

stock market volatility

along with uncertainty over

interest and inflation rates.


Investment objective

To provide long term capital appreciation and a reasonable level of income.

Investment policy

Allchurches Amity Fund seeks to invest in companies which make a positive

contribution to the quality of individual and community life and to the environment.

Allchurches Amity Fund will invest principally in companies incorporated and/or

listed in the United Kingdom.

This Fund is marketable to all retail investors.

The Fund seeks to avoid investment in companies which have a material involvement

in the production of alcohol and the Fund also avoids companies with material

interests in tobacco; gambling; the production of magazines or other media of an

explicit or violent nature; the manufacturing of armaments; countries which threaten

the individual’s right to liberty; and companies where animals are experimented on

for cosmetic purposes.

The portfolio will consist primarily of transferable securities but the Manager may also

invest in units in collective investment schemes, money-market instruments, derivatives

and forward transactions, deposits, nil and partly paid securities, bonds, convertible bonds,

cash and near cash as deemed economically appropriate to meet the Fund’s objective.

The Manager does not currently intend to use derivatives for any purpose other than

the efficient portfolio management of the Fund, although it may, subject to obtaining and

maintaining the requisite permissions from the FSA under the Financial Services and

Markets Act 2000 and on giving not less than 60 days’ notice to shareholders in the

Fund, use derivatives in pursuit of its investment objective in the future.

If derivatives are used for the purpose of meeting the investment objective of the Fund it

is not intended that the use of derivatives would cause the Net Asset Value of the Fund

to have higher volatility or otherwise cause the existing risk profile of the Fund to change.

The Fund will be managed in line with the requirements for inclusion in an ISA or PEP.

What risks are associated with this Fund?

■ Most of the assets will be invested in the UK stockmarket, and so could

be affected by any change in this market.

■ Selecting stocks due to our ethical criteria means that the choice of stocks is

limited to a sub-set of the stockmarket and this could lead to greater volatility.

Report of the Authorised Corporate Director

This review covers the period from 1 January 2007 to 30 June 2007.

■ During the period the share price of the Allchurches Amity Fund rose by 4.9%

on an offer-to-offer basis with income reinvested, underperforming the FTSE All

Share Index total return of 7.2% and IMA UK All Companies Sector Average rise

of 5.8% measured on a similar basis.

■ At 30 June 2007, the Allchurches Amity Fund held 79.8% of its investment

portfolio in the UK, 11.0% in Europe, with the balance of 9.2% in other countries.

■ The performance of the Fund was adversely affected by its lack of exposure to

the mining sector which performed strongly. Its overweight position in smaller

companies was also a negative factor after many months of positive contribution.

■ At a stock level, the Fund benefited from strong trading at SIG (building materials)

and food retailers Sainsbury (J) and Morrison (Wm). Bids for Alliance Boots

(retailing) and Reuters (media) were also positive contributors.

■ There were profit warnings from McAlpine (A) and Zenith Hygiene (both support

services) which detracted from performance, while real estate companies British

Land and Land Securities underperformed as investor interest in the sector cooled.

■ Holdings were top-sliced in Getinge (healthcare) and Dolphin Capital (real estate)

after good performance. New holdings included AssetCo and Rexam (both

support services) and Carbone Lorraine (industrial materials).

■ No derivatives were held during the period under review.

Prospects

Despite some worries about rising interest rates and lower consumer activity in the

UK, equity markets generally remain underpinned by beneficial trading conditions and

high levels of corporate activity. The risks to the current environment are rising,

however, and with them comes the likelihood of a greater divergence in share price

performance; stock selection will remain focused on companies expected to deliver

sustainable growth.

Allchurches Amity Fund

Asset allocation by sector

at 30 June 2007

Utlities1.5% (1.2%)

Other1.4% (1.9%)

Cash and Equivalents4.8% (8.6%)

Industrials26.3% (23.9%)

Consumer Services16.7% (15.4%)

Financials21.1% (22.7%)

Healthcare10.3% (9.6%)

Consumer Goods4.7% (5.2%)

Telecommunications4.6% (4.2%)

Oil & Gas4.4% (3.5%)

Basic Materials1.7% (1.5%)

Technology2.5% (2.3%)

Growth

19.4%

17.4%

14.0%

19.6%

-9.6%

Rank

87

180

235

71

173

Growth

18.0%

19.0%

16.3%

17.3%

-7.8%

Number

297

292

288

275

255

30/06/06 – 29/06/07

30/06/05 – 30/06/06

30/06/04 – 30/06/05

30/06/03 – 30/06/04

28/06/02 – 30/06/03

40

60

80

100

120

140

160

180

Jun 02

Dec 02

Jun 03

Dec 03

Jun 04

Dec 04

Jun 05

Dec 05

Jun 06

Dec 06

Jun 07

Allchurches Amity Fund

IMA UK All Companies Sector Average

200

Performance and ranking

Graph showing the growth of the Allchurches Amity Fund compared to IMA UK All Companies Sector Average from 28 June 02 to 29 June07, offer-to-offer, with income reinvested, based in UK Sterling. Pricesre-based to 100. Source: Morningstar.

Table showing % growth and ranking of the Allchurches Amity Fundagainst IMA UK All Companies Sector Average and total. Figures compared on an offer-to-offer basis with income reinvested.Source: Morningstar. This chart contains historic data.

Allchurches

Amity Fund

UK All

Companies

Sector

Performance

The figures in brackets show allocation at 31 December 2006

Figures exclude cash.


Share Class A Share Class B Share Class C

170.90

172.00

261.70

154.40

155.20

236.30

27,487,500

806,861

39,023,177

161.64

162.70

248.48

17,005,428

495,935

15,704,525

30 June 2007


157.00

158.40

237.20

130.70

131.20

196.20

26,455,387

774,358

37,342,172

153.26

153.78

234.37

17,002,224

495,935

15,696,669

31 December 2006


131.70

132.70

195.90

113.40

101.00

167.40

21,082,753

654,959

30,609,906

131.02

132.07

194.93

16,091,862

495,935

15,702,963

31 December 2005


114.80

115.70

167.30

100.80

101.00

145.40

16,584,893

564,112

26,244,226

113.28

113.75

167.20

14,640,943

495,935

15,696,669

31 December 2004


101.90

102.60

145.30

72.48

72.59

102.60

13,345,195

717,344

22,230,779

101.46

101.62

144.44

13,153,734

705,935

15,391,169

31 December 2003

Share prices and Fund size

Number of shares in issue

Net asset value (pence per share)

Net asset value (£)

Lowest for the year (pence)

Highest for the year (pence)

Fund size Share price range


0.5000

0.6200

0.7200

4.5872

5.6881

4.7872

2007*


2.3102

3.3217

4.1832

21.1945

30.4743

27.8138

2006


1.6453

2.4476

3.1334

15.0945

22.4550

20.8338

2005


1.9664

2.6793

3.4834

18.0404

24.5807

23.1609

2004


1.6859

2.3732

2.6847

15.4670

21.7725

17.8504

2003

1.66%

Please note: Stocks and shares should be viewed as a medium to long-term investment, usually for a period of 5 years or more. The value of investments can fall as well as rise. Past performanceshould not be seen as an indication of future performance.

*In respect of period from 1 January 2007 to 30 June 2007

0.97% 1.31%



1.5026

2.4073

2.3607

13.7853

22.0853

15.6961

2002

Net income distribution /accumulation

Per £1,000 Investedat 2 January 2002 (£)

Pence per share Net incomedistribution /accumulation

Major holdings

Percentage of total net assets at 30 June 2007

Top ten holdings

1

2

3

4

5

6

7

8

9

10

Morrison (Wm) Supermarkets

SIG

Tesco

Fugro

Provident Financial

GlaxoSmithKline

BPP Holdings

Legal & General Group

British Land

Wolseley

2.62

2.23

2.16

2.11

1.96

1.91

1.89

1.85

1.78

1.58

Total expense ratio at 30 June 2007

8 SHORT REPORT ALLCHURCHES INVESTMENT FUNDS8 SHORT REPORT ALLCHURCHES INVESTMENT FUNDS

Allchurches Higher Income Fund


To provide an above average and growing level of income together with capital

growth over the longer term.

Investment policy

The Manager will seek to achieve the investment objective by investing in a mix

of equities, fixed interest securities and such other investments that the Manager

considers suitable.


The portfolio will consist primarily of transferable securities but the Manager may also

invest in units in collective investment schemes, money-market instruments, derivatives

and forward transactions, deposits, nil and partly paid securities, bonds, convertible bonds,

cash and near cash as deemed economically appropriate to meet the Fund’s objective.






If derivatives are used for the purpose of meeting the investment objective of the Fund it

is not intended that the use of derivatives would cause the Net Asset Value of the Fund

to have higher volatility or otherwise cause the existing risk profile of the Fund to change.



■ Most of the assets will be invested in the UK stockmarket, and so could be

affected by any change in this market.

■ The annual management charge is taken from capital not income so the

capital value of the Fund could be reduced over time.

■ An issuer of fixed interest stock may default, so causing a reduction in the

capital value of the Fund.

■ The investment’s value may be affected by changes in exchange rates and

interest rates.



■ During the period the share price of the Allchurches Higher Income Fund rose by

7.3% on an offer-to-offer basis with income reinvested, outperforming the rise in the

IMA UK Equity & Bond Income Sector Average of 2.3% measured on a similar basis.

The FTSE All Share Index rose by 7.2% on a total return basis over the same period.

■ At 30 June 2007, the Allchurches Higher Income Fund held 21.7% of its

investments in overseas equities.

■ The Fund’s holdings in fixed interest securities proved to be a drag on performance

as investors became more concerned about the likelihood of higher interest rates.

However, the Fund’s equity holdings, particularly those in Asia, performed well

reflecting strong and sustained global economic growth.

■ Top contributors to performance were China Infrastructure Machinery (capital goods),

Datang International (power generation), and Hop Fung (paper), all reflecting good

trading and high investor interest. Negative contributors after profit warnings were

McAlpine (A) (support services) and DSG International (retailing).

■ After strong performance, profits were taken in Chinese Infrastructure (capital

goods) and China Mobile (telecoms). Dechra (pharmaceuticals) and e2v

(electronics) were sold as they looked fully valued.

■ Additions to the Fund were larger UK issues such as BP (oil), GlaxoSmithKline

(pharmaceuticals) and Rentokil (support services), and further Asian stocks such

as Singapore Petroleum (oil), and Kiatnakin and Krung Thai (both banks in Thailand).


Prospects

Led by Asia, but increasingly supported by Europe, the global economy continues to

provide a strong background for the Fund’s equity investments, and on a stock by

stock basis many pockets of value continue to be identified.

However, after a four year bull market share prices may prove to be more vulnerable

to investor caution. Should there be a stumble, the cash and short-dated bonds will

provide a safety net.

Cash and other Net Assets2.9% (9.1%)

Equity67.2% (62.0%)

Fixed Interest29.9% (28.9%)

Growth

17.7%

12.5%

12.7%

15.4%

-0.7%

Rank

3

13

28

4

10

Growth

11.7%

12.0%

16.1%

10.6%

-2.4%

Number

31

32

35

34

32

30/06/06 – 29/06/07

30/06/05 – 30/06/06

30/06/04 – 30/06/05

30/06/03 – 30/06/04

28/06/02 – 30/06/03

40

60

80

100

120

140

160

180

Jun 02

Dec 02

Jun 03

Dec 03

Jun 04

Dec 04

Jun 05

Dec 05

Jun 06

Dec 06

Jun 07

Allchurches Higher Income Fund

IMA UK Equity & Bond income Sector Average


Graph showing the growth of the Allchurches Higher Income Fundcompared to IMA UK Equity & Bond Income Sector Average from 28 June 02 to 29 June 07, offer-to-offer, with income reinvested,based in UK Sterling. Prices re-based to 100. Source: Morningstar.

Table showing % growth and ranking of the Allchurches Higher Income Fund against IMA UK Equity Bond Income Sector Average and total. Figures compared on an offer-to-offer basis with income reinvested.Source: Morningstar. This chart contains historic data.

Allchurches

Higher

Income Fund

UK Equity &

Bond Income

Sector

Asset allocation at 30 June 2007


Performance



109.80

110.70

180.70

30 June 2007


104.60

105.20

166.10

31 December 2006


96.41

96.49

146.20

31 December 2005


85.14

85.44

125.10

31 December 2004


80.31

80.14

112.50

31 December 2003









2007*


2006


2005


2004


2003

1.45%


0.64% 1.09%



2002


Per £1,000 investedat 2 January 2002 (£)


Major holdings


Top ten holdings


10.1324

11.2056

10.3622

57.7466

59.4883

70.0144

43.3126

42.9283

52.2694

44.0313

42.5651

50.6833

45.4553

45.4665

52.8152

32.5209

34.6645

35.5966

0.7500

0.8300

1.0100

4.2744

4.4063

6.8243

3.2060

3.1797

5.0947

3.2592

3.1528

4.9401

3.3646

3.3677

5.1479

2.4072

2.5676

3.4696

101.00

101.70

166.20

92.55

92.88

145.60

82.66

83.59

125.20

78.51

77.52

112.60

63.79

63.83

88.09

27,467,539

11,107,151

4,066,179

23,379,118

1,267,627

3,534,766

17,347,997

1,166,778

2,654,065

11,762,094

968,799

1,947,872

8,100,027

910,588

1,384,317

107.17

108.06

177.73

100.82

101.40

165.66

93.30

93.33

142.47

82.48

82.67

124.69

78.05

78.00

108.99

25,630,248

10,278,268

2,287,894

23,188,583

1,250,129

2,132,894

18,593,451

1,250,129

1,862,894

14,260,448

1,171,881

1,562,144

10,378,328

1,167,385

1,270,144

1

2

3

4

5

6

7

8

9

10

Treasury 4% 07/03/2009

Treasury 4.75% 07/09/2015

Royal Dutch Shell 'B'

BT Group

GlaxoSmithKline

Aviva

Coats International 6% Pref 2011

Fenner

Petrochina

Huaneng Power International 'H'

6.27

2.23

1.70

1.55

1.44

1.40

1.39

1.38

1.37

1.33



Allchurches UK Equity Growth Fund


To achieve long-term capital growth with a reasonable level of income.

Investment policy

The Allchurches UK Equity Growth Fund is designed to invest primarily in a range

of UK incorporated and/or listed companies which the Manager believes offer good

potential for long-term capital growth.


The portfolio will consist primarily of transferable securities but the Manager may

also invest in units in collective investment schemes, money-market instruments,

derivatives and forward transactions, deposits, nil and partly paid securities, bonds,

convertible bonds, cash and near cash as deemed economically appropriate to

meet the Fund’s objective.


the efficient portfolio management of the Fund, although it may, subject to obtaining

and maintaining the requisite permissions from the FSA under the Financial Services

and Markets Act 2000 and on giving not less than 60 days’ notice to shareholders

in the Fund, use derivatives in pursuit of its investment objective in the future.

If derivatives are used for the purpose of meeting the investment objective of the

Fund it is not intended that the use of derivatives would cause the Net Asset Value

of the Fund to have higher volatility or otherwise cause the existing risk profile of

the Fund to change.



■ Most of the assets will be invested in the UK stockmarket, and so could be

affected by any change in this market.



■ During the period the share price of the Allchurches UK Equity Growth Fund

rose by 5.6% on an offer-to-offer basis with income reinvested, compared with

the IMA UK All Companies Sector Average gain of 5.8% and a rise in the FTSE

All Share Index of 7.2% (both measured on the same basis).

■ At 30 June 2007 the Fund held 58.9% of its investments in FTSE 100 companies,

14.6% in mid cap companies, and 26.5% in smaller UK and overseas companies.

■ Positive contributors to performance included Dolphin Capital (real estate),

Rio Tinto (mining), Babcock International (support services), and Lamprell (oil

services), all of whom reported strong trading conditions. Bids for ICI (chemicals)

and Reuters (media) helped too.

■ Lenders Northern Rock and Barclays underperformed, the former on fears

about the quality of its loan book, the latter as investors reacted to its bid for

ABN Amro.

■ Support services companies McAlpine (A) and Zenith Hygiene had profit warnings.

■ New holdings included AssetCo (support services), Cape (support services),

Elementis (chemicals), and Pace Micro Technology (electronics) – all companies

which were perceived to offer sustainable growth or self-help recovery.

■ Disposals were made in real estate stocks including British Land and Land Securities

where the sector valuation was believed to have peaked. Holdings in retailers

Marks & Spencer and Mothercare were sold over concerns about future earnings.


Prospects

Despite some worries about rising interest rates and lower consumer activity in the

UK, equity markets generally remain underpinned by beneficial trading conditions

and high levels of corporate activity. The risks to the current environment are rising,

however, and with them come the likelihood of a greater divergence in share price

performance; stock selection will remain focused on companies providing sustainable

growth or self-help recovery.

Utlities4.2% (4.3%)

Other0.2% (1.1%)


Industrials24.8% (21.6%)

Financials18.9% (24.6%)

Consumer Services16.3% (16.0%)

Healthcare4.2% (4.1%)

Consumer Goods9.2% (10.0%)

Telecommunications4.4% (4.0%)

Oil & Gas6.6% (5.8%)

Basic Materials5.6% (3.6%)

Technology1.9% (1.8%)

y

Growth

19.6%

16.1%

13.4%

19.3%

-8.8%

Rank

85

219

245

74

137

Growth

18.0%

19.0%

16.3%

17.3%

-7.8%

Number

297

292

288

275

255

30/06/06 – 29/06/07

30/06/05 – 30/06/06

30/06/04 – 30/06/05

30/06/03 – 30/06/04

28/06/02 – 30/06/03

40

60

80

100

120

140

160

180

Jun 02

Dec 02

Jun 03

Dec 03

Jun 04

Dec 04

Jun 05

Dec 05

Jun 06

Dec 06

Jun 07

Allchurches UK Equity Growth Fund

IMA UK All Companies Sector Average

200


Graph showing the growth of the Allchurches UK Equity Growth Fund compared to IMA UK All Companies Sector Average from 29 June 02 to 29 June 07, offer-to-offer, with income reinvested, based in UK Sterling. Prices re-based to 100. Source: Morningstar.

Table showing % growth and ranking of the Allchurches UK EquityGrowth Fund against IMA UK All Companies Sector Average and total. Figures compared on an offer-to-offer basis with income reinvested.Source: Morningstar. This chart contains historic data.

Allchurches

UK Equity

Growth Fund

UK All

Companies

Sector

Asset allocation by sector

at 30 June 2007


Performance









2007*

1.73%


0.82% 1.31%



Per £1,000 investedat 2 January 2002(£)


Major holdings


Top ten holdings




2006


2005


2004


2003


2002

7.4810

10.1426

6.9402

26.4989

38.2916

34.8071

14.7109

26.1479

22.1310

16.4048

26.6815

22.7934

19.1237

28.2705

20.7293

19.4432

29.1611

22.0719

0.7000

0.9600

0.6800

2.4795

3.6243

3.4104

1.3765

2.4749

2.1684

1.5350

2.5254

2.2333

1.7894

2.6758

2.3250

1.8193

2.7601

2.1626


145.90

148.90

173.20

30 June 2007


134.40

137.50

157.20

31 December 2006


115.90

118.60

133.50

31 December 2005


99.24

101.60

112.10

31 December 2004


88.50

90.30

97.16

31 December 2003

130.65

133.00

154.90

114.20

116.60

132.50

98.12

99.92

112.00

96.86

89.57

97.22

64.36

65.26

69.60

8,142,937

55,119,916

13,895,999

7,666,392

52,338,729

13,123,900

6,406,473

45,306,602

11,351,651

5,316,498

38,942,945

9,388,367

4,666,464

34,638,586

7,829,782

138.84

141.60

165.72

132.06

134.29

156.51

114.91

116.25

135.38

98.27

99.92

111.96

87.65

88.84

95.78

5,864,900

38,927,667

8,385,254

5,805,148

38,974,952

8,385,254

5,575,041

38,974,952

8,385,254

5,409,848

38,974,952

8,385,254

5,323,865

38,992,015

8,174,754

1

2

3

4

5

6

7

8

9

10

Vodafone Group

BP

GlaxoSmithKline

Rio Tinto

HBOS

Reuters Group

Lloyds TSB Group

Royal Dutch Shell 'B'

Barclays

SPI Lasers

2.46

2.13

2.00

1.95

1.89

1.80

1.77

1.77

1.77

1.75



Allchurches European Growth Fund



Investment policy

The Allchurches European Growth Fund is designed to invest primarily in European

and UK companies which the Manager believes offer good potential for long-term

growth.








the efficient portfolio management of the Fund, although it may, subject to obtaining

and maintaining the requisite permissions from the FSA under the Financial Services

and Markets Act 2000 and on giving not less than 60 days’ notice to shareholders in

the Fund, use derivatives in pursuit of its investment objective in the future.




the Fund to change.



■ The investment’s value may be affected by changes in exchange rates.

■ The entire market of European stocks and shares might decline thus affecting

the prices and values of the assets.



■ During the period the share price of the Allchurches European Growth Fund

rose by 9.2% on an offer-to-offer basis with income reinvested, underperforming

both the IMA Europe (including UK) Sector Average return of 9.6% and the

FTSEurofirst 300 Index return of 10.6% (both measured on the same basis).

■ Strong trading conditions were reflected in good contributions from chemicals

companies BASF, Tessenderlo, and Bayer. The share price of Siemens (electrical

equipment) was also boosted by management changes.

■ A drug failure at Sanofi-Aventis (pharmaceuticals) had a negative impact on

performance, as did lacklustre trading at Q-Med (healthcare). Shares in Land

Securities (real estate) suffered as investor interest in the sector cooled.

■ The strategy of further shifting the emphasis from the UK into mainland Europe

was continued. To this end, disposals were made in BAT (tobacco), EMAP

(media), and Marks & Spencer (retailing). Sales were also made in financial

stocks Anglo Irish Bank and Irish Life in light of their slowing domestic economy.

■ New holdings in mainland Europe included Akzo Nobel (chemicals), Amer (sports

goods), and Munich Re (insurance). Holdings in Carbone Lorraine (industrial

materials) and Nokia (mobile telecoms) were topped up for their earnings

potential and valuation.


Prospects

Though some of the peripheral economies may show further vulnerability to monetary

tightening, the core markets, led by Germany, are enjoying good momentum in a

strong global economy. In view of the possibility of relatively slower growth in the

UK, new investments will be focussed on mainland Europe.

Asset allocation by geographical

area at 30 June 2007

Italy2.1% (0.9%) Other

3.5% (5.9%)


United Kingdom26.5% (31.7%)

France17.4% (15.7%)

Germany9.0% (6.7%)

Finland8.1% (5.7%)

Sweden7.6% (8.1%)

Netherlands7.3% (6.1%)

Spain5.6% (5.4%)

Portugal3.8% (3.6%)

Switzerland3.9% (4.3%)

Growth

22.9%

19.0%

13.1%

17.8%

-7.3%

Rank

8

13

15

5

3

Growth

22.0%

21.5%

15.7%

15.3%

-11.1%

Number

16

16

16

16

14

30/06/06 – 29/06/07

30/06/05 – 30/06/06

30/06/04 – 30/06/05

30/06/03 – 30/06/04

28/06/02 – 30/06/03

40

60

80

100

120

140

160

180

Jun 02

Dec 02

Jun 03

Dec 03

Jun 04

Dec 04

Jun 05

Dec 05

Jun 06

Dec 06

Jun 07

Allchurches European Growth Fund

IMA Europe Including UK Sector Average

200


Graph showing the growth of the Allchurches European Growth Fund compared to IMA Europe (including UK) Sector Average from 28 June 02 to 29 June 07, offer-to-offer, with income reinvested,based in UK Sterling. Prices re-based to 100. Source: Morningstar.

Table showing % growth and ranking of the Allchurches EuropeanGrowth Fund against IMA Europe (including UK) Sector Average and total. Figures compared on an offer-to-offer basis with incomereinvested. Source: Morningstar. This chart contains historic data.

Allchurches

European

Growth Fund

Europe

(including

UK) Sector


Performance









1.77%


0.86% 1.34%





Major holdings


Top ten holdings


2007*



2006


2005


2004


2003


2002

3.0522

5.8877

3.3348

12.0531

24.8239

18.8161

8.7059

20.7268

15.6736

8.4637

19.3016

14.5431

8.7801

18.2144

12.1954

9.6938

18.6702

11.7319

0.3000

0.5800

0.3000

1.1847

2.4454

1.6927

0.8557

2.0418

1.4100

0.8319

1.9014

1.3083

0.8630

1.7943

1.0971

0.9528

1.8392

1.0554


161.70

165.90

167.80

30 June 2007


149.70

151.70

146.40

31 December 2006


129.10

130.80

124.90

31 December 2005


107.90

109.40

103.20

31 December 2004


97.94

98.98

92.16

31 December 2003

136.30

146.70

148.00

125.40

126.70

122.10

106.10

107.20

102.20

93.20

94.15

88.94

70.23

70.55

65.61

2,781,827

31,551,899

394,464

2,480,635

28,795,312

360,138

2,034,598

24,742,397

277,630

1,593,089

20,728,181

211,811

1,381,206

18,806,561

162,168

162.36

163.97

160.16

148.60

149.65

146.22

126.85

128.58

122.82

106.91

107.72

102.42

97.35

97.74

91.34

1,713,403

19,242,265

246,300

1,669,298

19,242,265

246,300

1,603,956

19,242,265

226,050

1,490,062

19,242,265

206,800

1,418,792

19,242,265

177,550

1

2

3

4

5

6

7

8

9

10

Kone Corporation 'B'

Roche-Genussscheine

Getinge 'B'

Smith & Nephew

Credit Agricole

Reckitt Benckiser

Vodafone Group

Societe Generale

Fugro

Gas Natural

2.53

2.52

2.49

2.47

2.43

2.32

2.27

2.21

2.18

2.06



Allchurches International Growth Fund



Investment policy

The Allchurches International Growth Fund is designed to invest primarily in a range

of equities which the Manager believes offer good potential for long-term capital

growth. The Fund will tend to focus on larger companies that are primarily in the

more developed countries.















the Fund to change.



■ The investment’s value may be affected by changes in exchange rates.

■ The equity markets invested in might decline thus affecting the prices and

values of the assets.

■ Some of the investments may be in emerging markets, which can be more

volatile and carry risks associated with changes in their economies and political

states. Also they may not offer the same level of investor protection as would

apply in more developed jurisdictions.



■ During the period the share price of the Allchurches International Growth Fund

rose by 15.8% on an offer-to-offer basis with income reinvested, outperforming

both the IMA Global Growth Sector Average and the FTSE World Index which

rose 7.7% and 7.4% respectively, both measured on a similar basis.

■ The strong performance of the Fund was notably helped by its relatively high

exposure to Asian markets.

■ Positive contributions to note included Fugro (oil services), Noble Group (general

industrials), and Yanzhou Coal (mining), all of whom reported strong trading

conditions. Strong trading and management changes boosted the share price of

Siemens (electrical equipment).

■ Negative contributions came from lenders Allied Irish Bank and Banco Santander,

both of whom were exposed to those European economies most vulnerable to

the impact of rising interest rates in the Euro zone.

■ After good performance the shares in China Special Steel (metals), China Mobile

(telecoms), and Peace Mark (watch manufacturing & retailing) were sold. The

proceeds were invested in other Asian issues such as Singapore Petroleum (oil),

Kiatnakin and Krung Thai (both banks in Thailand).


Prospects

The extended and broad based expansion of the world economy continues to

provide a very supportive environment for equities. Asian, and increasingly European,

companies have been prime beneficiaries of this phase of the cycle and remain the

focus of the Fund’s investment strategy.

Other15.7% (12.8%)

Hong Kong14.6% (15.7%)

China11.9% (11.4%)

United Kingdom10.1% (12.7%)

United States9.6% (9.6%)Singapore

9.5% (7.3%)

France7.5% (7.3%)

Netherlands5.0% (5.0%)

Spain3.9% (4.5%)

Thailand3.7% (1.8%)

Sweden3.8% (7.1%)

Finland4.7% (4.8%)

Growth

30.3%

18.8%

11.9%

15.9%

-6.8%

Rank

3

41

81

45

21

Growth

16.0%

16.7%

13.4%

14.4%

-10.4%

Number

155

149

152

146

134

30/06/06 – 29/06/07

30/06/05 – 30/06/06

30/06/04 – 30/06/05

30/06/03 – 30/06/04

28/06/02 – 30/06/03

40

60

80

100

120

140

160

180

Jun 02

Dec 02

Jun 03

Dec 03

Jun 04

Dec 04

Jun 05

Dec 05

Jun 06

Dec 06

Jun 07

Allchurches International Growth Fund

IMA Global Growth Sector Average


Graph showing the growth of the Allchurches International GrowthFund compared to IMA Global Growth Sector Average from 28 June 02 to 29 June 07, offer-to-offer, with income reinvested,based in UK Sterling. Prices re-based to 100. Source: Morningstar.

Table showing % growth and ranking of the Allchurches International Growth Fund against IMA Global Growth Companies Sector Averageand total. Figures compared on an offer-to-offer basis with incomereinvested. Source: Morningstar. This chart contains historic data.

Allchurches

International

Growth Fund

Global

Growth

Sector

Asset allocation by geographical

area at 30 June 2007


Performance

Figures exclude cash.









1.80%


0.89% 1.37%


Net income distribution /accumulation Major holdings


Top ten holdings




2007*



2006


2005


2004


2003


2002

0.3288

2.9544

0.7575

11.8029

25.2971

18.8398

8.9117

21.2726

16.4121

7.3597

18.2679

13.6359

7.1887

17.2656

11.0718

6.7306

16.4723

9.5872

0.0300

0.2700

0.0600

1.0769

2.3119

1.4923

0.8131

1.9441

1.3000

0.6715

1.6695

1.0801

0.6559

1.5779

0.8770

0.6141

1.5054

0.7594


155.80

157.60

145.60

30 June 2007


133.30

135.20

123.20

31 December 2006


114.70

116.40

104.80

31 December 2005


93.88

95.05

84.59

31 December 2004


90.82

91.87

80.76

31 December 2003

131.70

132.90

123.00

109.60

110.90

101.10

92.66

93.33

84.21

83.86

94.82

75.53

64.30

64.57

56.90

1,689,023

32,058,508

410,953

1,392,443

27,618,711

353,791

1,055,239

23,702,311

263,258

870,859

19,373,537

198,294

764,337

18,828,813

164,007

152.72

154.33

142.82

131.96

132.95

122.95

113.57

114.10

102.81

92.70

93.26

83.85

90.27

90.64

80.00

1,105,928

20,773,269

287,750

1,055,235

20,773,269

287,750

929,184

20,773,269

256,750

939,413

20,773,260

236,500

846,726

20,773,270

205,000

1

2

3

4

5

6

7

8

9

10

Sinopec

Fugro

Kone Corporation 'B'

Vtech Holdings

Telefonica ADR

Sinotrans

Zodiac

Siemens

Banco Santander Central Hispano

Yanzhou Coal Mining 'H'

3.07

2.21

2.20

2.15

2.04

2.02

2.01

1.87

1.81

1.79


Allchurches Investment Funds16

If each sub-fund were an open-ended investment company in respect of which authorisation had been granted by the FsA, they would be securities companies. the Fund is marketable to all retail investors.

the assets of each sub-fund will generally be treated as separate from those of any other sub-fund and will be invested in accordance with the investment objective and policy applicable to that sub-fund. As each sub-fund is not a legal entity, if the assets attributable to any sub-fund were insufficient to meet the liabilities ascribed to it, the shortfall may have to be met out of the assets from other sub-funds.

m h tripp, director G A Prescott, director

For and on behalf of Allchurches Investment management services limited.Authorised corporate director of Allchurches Investment Funds.14th August 2007

Please note that shareholders are not liable for the debts of Allchurches Investment Funds.

Certification of Accounts

Authorised Status

Allchurches Investment Funds 17

Amity Higher UK Equity European International Total Income Growth Growth Growth 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Net gains on investments during the period 2 2,126 2,559 1,679 292 3,598 1,423 2,650 929 4,463 923 14,516 6,126

Other (losses)/gains 3 (3) 17 (11) (203) (1) 6 (11) 14 (16) (21) (42) (187)

Gross income 4 1,170 1,107 818 667 1,217 1,560 722 576 544 474 4,471 4,384

expenses 5 (489) (408) (222) (173) (386) (333) (157) (135) (152) (126) (1,406) (1,175)

Finance costs: Interest 7 - - - - - - - - - - - -

net income before taxation 681 699 596 494 831 1,227 565 441 392 348 3,065 3,209

Taxation 6 (22) (17) (51) (16) - (1) (66) (51) (64) (58) (203) (143)

net income after taxation 659 682 545 478 831 1,226 499 390 328 290 2,862 3,066

Total return beforedistributions 2,782 3,258 2,213 567 4,428 2,655 3,138 1,333 4,775 1,192 17,336 9,005

Finance costs: distributions/ AccumulationsInterims 7 (201) (195) 61 (164) (473) (472) (117) (117) (56) (56) (786) (1,004)

Change to net assets attributable to shareholders 2,581 3,063 2,274 403 3,955 2,183 3,021 1,216 4,719 1,136 16,550 8,001

Statement of Total Return

unaudited for the period 1 January 2007 to 30 June 2007



£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Shareholders’ net assets at the start of the period 64,572 52,348 28,181 21,169 73,129 63,065 31,636 27,055 29,365 25,022 226,883 188,659

movement due to sales andrepurchase of shares:

Amounts receivable on creation of shares 2,040 1,411 13,953 3,559 639 410 222 189 171 159 17,025 5,728

Amounts payable on cancellation of shares (1,988) (735) (1,790) (923) (621) (400) (152) (54) (97) (50) (4,648) (2,162)

52 676 12,163 2,636 18 10 70 135 74 109 12,377 3,566

change to net assets attributable to shareholders (see page 17) 2,581 3,063 2,274 403 3,955 2,183 3,021 1,216 4,719 1,136 16,550 8,001

retained distribution on accumulation shares 113 113 23 20 57 57 1 1 - - 194 191

unclaimed distribution - - - - - 1 - - - - - 1

Shareholders’ net assets at the end of the period 67,318 56,200 42,641 24,228 77,159 65,316 34,728 28,407 34,158 26,267 256,004 200,418

Statement of Change in Shareholders’ Net Assets

unaudited for the period 1 January 2007 to 30 June 2007


Portfolio Statement

Number of Market Percentage of Shares Held at Value Total Net Assets 30 June 2007 £ %

ALLCHURCHES AMITY FUNDat 30 June 2007

UNITED KINGDoM 75.35% (72.42%) 1,300,000 Advanced Fluid connections* (suspended 27/03/2006) - - 58,793 Alliance Boots 667,888 0.99 175,000 Assetco 381,500 0.57 95,863 Aviva 699,321 1.04 60,000 Barclays 409,800 0.61 125,000 BBI holdings 188,750 0.28 25,000 Bellway 313,750 0.47 45,000 Berkeley Group 804,150 1.19 113,725 BG Group 915,486 1.36 36,000 Biffa 97,920 0.15 25,504 Biocompatibles International 46,672 0.07 217,125 BPP holdings 1,271,267 1.89 70,000 Bradford & Bingley 270,375 0.40 90,000 British land 1,195,200 1.78 80,000 British Polythene 330,600 0.49 250,000 Bt Group 828,750 1.23 300,000 cable & Wireless 583,800 0.87 74,000 cadbury schweppes 492,100 0.73 200,000 camper & nicholson marina Investments 142,000 0.21 36,063 carillion 143,621 0.21 117,450 centrica 453,651 0.67 140,000 civica 375,900 0.56 200,000 cobra Bio-manufacturing 84,000 0.12 292,500 cOdA 541,125 0.80 250,000 dechra Pharmaceuticals 840,000 1.25 225,000 devro International 248,625 0.37 99,322 dignity 662,478 0.98 260,000 dolphin capital 435,500 0.65 217,142 dsG International 344,822 0.51 200,156 dunelm Group 388,803 0.58 125,000 Flomerics Group 97,500 0.14 126,000 Genus 856,800 1.27 45,000 Gibbs & dandy 180,000 0.27 100,000 GlaxosmithKline 1,289,000 1.91 67,512 Great Portland estates 437,140 0.65 250,000 G4s 526,250 0.78 402,961 halma 939,907 1.40 43,825 hansard Global 124,901 0.19 80,000 hBOs 777,200 1.15 82,000 holidaybreak 710,120 1.05 250,000 Impax environmental markets 320,000 0.48 50,000 Impax environmental Warrants 23,000 0.03 240,000 InG uK real estate Income trust 255,600 0.38 354,128 Inspace 605,559 0.90 220,000 Inspicio 378,400 0.56 96,096 Invensys 364,684 0.54 190,000 Itm Power 257,450 0.38 110,000 Jardine lloyd thompson 457,600 0.68 43,500 Johnson matthey 731,670 1.09 99,125 Johnson service Group 344,212 0.51 50,000 Keller Group 544,500 0.81 109,803 laird Group 590,191 0.88



Portfolio Statement


UNITED KINGDoM - continued 21,875 land securities 376,688 0.56 844,200 legal & General Group 1,245,194 1.85 135,000 lloyds tsB Group 739,125 1.10 102,000 marks & spencer Group 636,480 0.95 103,604 marshalls 357,434 0.53 110,000 mcAlpine (A) 470,800 0.70 96,000 menzies (J) 528,000 0.78 20,000 morgan sindall 302,200 0.45 590,078 morrison (Wm) supermarkets 1,764,332 2.62 60,000 national express Group 640,800 0.95 40,000 next Group 795,600 1.18 120,000 northern Foods 139,800 0.21 68,000 northern rock 569,840 0.85 25,000 Ocean Power technologies 186,250 0.28 95,000 Office2office 209,238 0.31 200,000 Oxford Instruments 578,500 0.86 133,190 Pinewood shepperton 339,635 0.50 74,074 Plethora solutions 100,000 0.15 190,000 Provident Financial 1,316,700 1.96 60,000 Prudential 418,800 0.62 65,000 Quadnetics Group 240,500 0.36 80,000 reed elsevier 511,600 0.76 100,000 reuters Group 616,000 0.92 70,000 rexam 343,875 0.51 100,625 sainsbury (J) 583,121 0.87 143,650 sales Activation solutions* 109,892 0.16 24,000 severn trent 329,040 0.49 112,500 shanks Group 279,844 0.42 115,000 sIG 1,501,900 2.24 100,000 smith & nephew 612,500 0.91 220,000 smith (ds) 507,650 0.75 20,000 smiths Group 235,000 0.35 25,920 smiths news 34,020 0.05 65,000 spectris 581,750 0.86 70,000 st James Place 291,900 0.43 30,000 standard chartered 478,800 0.71 165,750 standard life 543,660 0.81 11,500 surfcontrol 76,705 0.11 86,048 tandem Group 14,198 0.02 350,000 tesco 1,452,500 2.16 90,000 the royal Bank of scotland 557,550 0.83 37,325 thomas cook Group 115,428 0.17 2,433 thompson clive Investments 2,676 0.00 165,000 titan europe 359,700 0.53 50,000 trinity mirror 260,750 0.39 332,500 vodafone Group 549,290 0.82 280,000 volex Group 518,000 0.77 25,920 Wh smith Group 102,449 0.15 153,000 Wimpey (George) 767,295 1.14 90,000 Wolseley 1,062,900 1.58 70,000 Yell Group 322,175 0.48 170,834 Zenith hygiene 73,459 0.11

Total United Kingdom 50,721,081 75.35


Portfolio Statement



ARGENTINA 0.11% (0.09%) 6,000 telecom Argentina Adr 74,727 0.11 Total Argentina 74,727 0.11

AUSTRALIA 2.00% (1.50%) 85,090 Australian & new Zealand Banking Group 1,039,642 1.54 350,000 sigma Pharmaceuticals 311,817 0.46

Total Australia 1,351,459 2.00

CHINA 0.68% (0.00%) 1,955,000 sinotrans 460,426 0.68 Total China 460,426 0.68

FRANCE 0.75% (0.00%) 13,000 carbone lorraine 504,027 0.75

Total France 504,027 0.75

HoNG KoNG 1.18% (1.33%) 1,253,000 china shineway Pharmaceuticals 493,427 0.73 1,500,000 ta Yang Group 299,655 0.45

Total Hong Kong 793,082 1.18

IRELAND 2.34% (2.55%) 200,000 Boundary capital 141,403 0.21 21,500 crh 531,883 0.79 23,800 Irish life & Permanent 294,231 0.44 320,000 siteserv 176,686 0.26 175,000 veris 428,750 0.64

Total Ireland 1,572,953 2.34

NETHERLANDS 2.11% (1.94%) 45,000 Fugro 1,417,764 2.11

Total Netherlands 1,417,764 2.11

NoRwAY 0.89% (0.77%) 40,000 edB Business Partner 181,830 0.27 27,500 Yara International 414,563 0.62

Total Norway 596,393 0.89

PoRTUGAL 0.57% (0.56%) 55,488 Portugal telecom Adr 383,315 0.57

Total Portugal 383,315 0.57



Portfolio Statement


*unapproved securities (see note 1g).

unless otherwise stated, all investments are listed equities. comparative percentage holdings by market value at 31 december 2006 are shown in brackets.

SINGAPoRE 1.93% (1.56%) 31,100 creative technology 73,992 0.11 500,000 Ks energy services 615,595 0.91 228,000 sIA engineering 352,003 0.52 600,000 Yellow Pages (singapore) 265,781 0.39

Total Singapore 1,307,371 1.93

SPAIN 1.75% (1.86%) 100,000 Banco santander central hispanol 915,751 1.36 7,846 telefonica de espana Adr 260,594 0.39

Total Spain 1,176,345 1.75

SwEDEN 2.02% (2.94%) 90,000 Gentinge ‘B’ 972,984 1.44 56,000 Q-med 389,339 0.58

Total Sweden 1,362,323 2.02

THAILAND 0.55% (0.51%) 300,000 Advanced Information services 368,442 0.55

Total Thailand 368,442 0.55

UNITED STATES oF AMERICA 2.17% (2.33%) 8,000 Agilent technology 153,544 0.23 9,000 Autoliv 253,893 0.38 23,500 Ims health 375,784 0.56 40,000 Pfizer 511,347 0.76 979 verigy 14,468 0.02 5,000 Waters corporation 149,808 0.22

Total United States of America 1,458,844 2.17

oTHER 0.00 (0.28%) 0 0.00

Portfolio of Investments 94.40% (90.62%) 63,548,552 94.40 net current assets 3,768,986 5.60net current assets 3,768,986 5.60 3,768,986 5.60 Total net assets 67,317,538 100.00Total net assets 67,317,538 100.00 67,317,538 100.00


Portfolio Statement


ALLCHURCHES HIGHER INCoME FUNDat 30 June 2007

UNITED KINGDoM UK Corporate Bonds 12.52% (14.94%)

50,000 Bradford & Bingley 11.625% Perp 88,125 0.21 30,000 Bristol & West Building society 13.375% Perp 61,088 0.14 200,000 Britannia Building society 13% PIBs 395,250 0.93 200,000 Britannia Building society 5.5555% 184,685 0.43 150,000 cable & Wireless 8.75% 06/08/2012 157,125 0.37 50,000 clerical medical 7.375% Perp 53,165 0.12 50,000 compass Group 7% 12/08/2014 50,597 0.12 500,000 co-Op Group 5.875% 18/12/2013 479,000 1.13 100,000 coventry Building society 12.125% PIBs 184,625 0.43 250,000 egg Bank 7.5% 09/12/2013 260,943 0.61 40,000 First hydro Finance 9% 31/07/2021 48,258 0.11 150,000 GKn holdings 7% 14/05/2012 151,378 0.36 150,000 halifax 12% 30/01/2022 220,508 0.52 50,000 halifax 8.75% 14/09/2023 59,632 0.14 300,000 hBOs 6.3673% 17/06/2019 281,214 0.66 204,000 land securities 5.292% 28/11/2015 194,299 0.46 200,000 leeds & holbeck Building society 13.375% PIBs 408,000 0.96 500,000 marks & spencer 5.625% 24/03/2014 472,200 1.11 100,000 newcastle Building society 12.625% PIBs 194,500 0.46 70,000 northern rock 12.625% Perp 133,788 0.31 300,000 safeway 6% 10/01/2017 282,619 0.66 300,000 safeway 6.5% 05/08/2014 294,224 0.69 45,000 scarborough Building society 8.5% PIBs 59,625 0.14 200,000 skipton Building society 12.875% PIBs 394,000 0.92 250,000 telefonica 5.375% 02/02/2018 227,755 0.53

5,336,603 12.52

UK Corporate Preference Shares 5.38% (6.02%)

100,000 Aviva 8.375% cum Irred Pref 128,500 0.30 125,000 Aviva 8.75% Pref 166,875 0.39 200,000 Bellway 9.5% Pref 223,500 0.52 150,000 Bristol Water 8.75% Pref 203,250 0.48 175,000 coats International 6% Pref 2011 159,250 0.37 400,000 General Accident 7.875% Pref 488,000 1.15 250,000 General Accident 8.875% Pref 338,750 0.79 200,000 northern electric Pref 243,500 0.57 25,000 Premier Farnell ccrP 343,750 0.81

2,295,375 5.38

UK Government Bonds 11.30% (7.87%)

100,000 conversion 9% 12/07/2011 111,477 0.26 200,000 treasury 2.5% Index linked 26/07/2016 502,960 1.18 2,750,000 treasury 4% 07/03/2009 2,673,858 6.27 1,000,000 treasury 4.75% 07/09/2015 950,638 2.23 175,000 treasury 6.25% 25/11/2010 177,604 0.42 400,000 treasury 7.25% 07/12/2007 402,200 0.94

4,818,737 11.30



Portfolio Statement


UK EqUITIES 37.72% (35.04%) 10,086 Alliance Boots 114,577 0.27 82,000 Aviva 598,190 1.40 80,000 BP 479,200 1.12 28,000 British American tobacco 469,000 1.10 80,000 British energy 424,400 1.00 2,677 British energy Warrants 11,444 0.03 50,000 British Polythene 206,625 0.48 200,000 Bt Group 663,000 1.55 30,588 che hotel Group 7,953 0.02 11,000 citigroup 284,259 0.67 400,000 clinton cards 256,000 0.60 50,000 compass Group 171,500 0.40 40,000 cookson Group 281,400 0.66 60,820 drax Group 436,384 1.02 135,000 dsG International 214,380 0.50 375,000 elementis 360,000 0.84 33,600 enodis 66,108 0.16 250,000 Fenner 588,750 1.38 25,000 FKI 31,438 0.07 47,500 GlaxosmithKline 612,275 1.45 60,000 hsBc holdings 543,900 1.28 250,000 InG uK real estate Income trust 266,250 0.62 15,384 Kelda Group 143,148 0.34 20,000 Kelda Group ‘B’ 42,000 0.10 110,000 ladbrokes 474,100 1.11 43,920 laird Group 236,070 0.55 95,000 mcAlpine (A) 406,600 0.95 42,954 menzies (J) 236,247 0.55 75,000 morgan crucible 218,438 0.51 37,261 mothercare 145,504 0.34 60,000 national Grid 441,000 1.03 65,000 northern Foods 75,725 0.18 40,000 Pfizer 511,347 1.20 14,264 Premier Farnell 28,564 0.07 28,800 rank Group 53,280 0.12 170,000 rentokil Initial 271,150 0.64 29,545 rexam 145,140 0.34 8,000 rio tinto 300,880 0.71 61,760 rolls-royce Group 324,549 0.76 3,656,192 rolls-royce Group ‘B’ 3,656 0.01 35,000 royal dutch shell ‘B’ 723,800 1.71 42,000 sainsbury (J) 243,390 0.57 35,000 salvesen (christian) 20,912 0.05 55,000 scottish & newcastle 349,250 0.82 22,000 severn trent 301,620 0.71 55,000 sFI holdings* (litigation entitlement) 0 0.00 55,000 sFI holdings* A shares (suspended 12/11/2002) 0 0.00 33,333 smiths Group 391,663 0.92 25,000 spectris 223,750 0.52 350,000 spirent 266,000 0.62 30,000 standard chartered 478,800 1.12 110,500 standard life 362,440 0.85 11,114 thomas cook Group 34,370 0.08


Portfolio Statement



UNITED KINGDoM - continued 210,000 titan europe 457,800 1.07 55,000 united utilities 387,475 0.91 100,000 volex Group 185,000 0.43 18,000 Wh smith Group 71,145 0.17 200,000 Yule catto 444,000 1.04

16,085,846 37.72


AUSTRALIA 1.88% (0.95%) 40,000 Australia & new Zealand Banking Group 488,726 1.15 350,000 sigma Pharmaceuticals 311,817 0.73

Total Australia 800,543 1.88

CHINA 5.99% (6.76%) 600,000 datang International Power Generation 461,833 1.08 1,000,000 huaneng Power International 565,484 1.33 800,000 Petrochina 585,142 1.37 950,000 sinopec 525,083 1.23 1,776,000 sinotrans 418,269 0.98

Total China 2,555,811 5.99

FINLAND 0.99% (1.36%) 4,500 cargotech ‘B’ 139,958 0.33 9,000 Kone ‘B’ 282,159 0.66

Total Finland 422,117 0.99

FRANCE 0.96% (0.75%) 30,000 France telecom 409,462 0.96

Total France 409,462 0.96

GERMANY 0.60% (0.87%) 16,000 deutsche Post 254,686 0.60

Total Germany 254,686 0.60

HoNG KoNG 8.10% (8.46%) 520,000 china Infrastructure machinery 566,862 1.32 52,500 china mobile 281,465 0.66 400,000 china Oriental Group 82,206 0.19 895,000 china shineway Pharmaceuticals 352,448 0.83 640,000 dream International 16,339 0.04 2,500,000 hop Fung Group 494,639 1.16 1,648,000 lerado Group 102,027 0.24 620,000 Pacific Basin shipping 348,621 0.82 2,275,000 scud Group 389,137 0.91 2,000,000 ta Yang Group 399,540 0.94 100,000 vtech holdings 420,602 0.99

Total Hong Kong 3,453,886 8.10



Portfolio Statement


IRELAND 0.50% (0.87%) 15,000 Allied Irish Banks 203,418 0.48 318,181 Waterford Wedgwood (uK) uts 8,570 0.02

Total Ireland 211,988 0.50

ITALY 0.85% (0.61%) 20,000 enI 360,375 0.85

Total Italy 360,375 0.85

MALAYSIA 0.31% (1.14%) 125,000 Fraser & neave 132,814 0.31

Total Malaysia 132,814 0.31

PoRTUGAL 0.89% (0.00%) 55,000 Portugal telecom 379,599 0.89


SINGAPoRE 3.51% (3.04%) 575,000 china merchants holdings 171,365 0.40 200,000 Fraser & neave 355,026 0.83 193,000 Pan united marine 148,984 0.35 116,000 sIA engineering 179,089 0.42 200,000 singapore Petroleum 374,568 0.89 600,000 Yellow Pages (singapore) 265,781 0.62


SPAIN 0.59% (0.88%) 23,000 telefonica 253,676 0.59

Total Spain 253,676 0.59

THAILAND 3.13% (0.93%) 400,000 Advanced Information services 491,256 1.15 1,100,000 Kiatnakin Bank 508,594 1.19 2,000,000 Krung thai Bank 338,100 0.79

Total Thailand 1,337,950 3.13

Portfolio of Investments 95.22% (90.49%) 40,604,281 95.22

net current assets 2,036,588 4.78 Total Net Assets 42,640,869 100.00




Portfolio Statement


ALLCHURCHES UK EqUITY GRowTH FUNDat 30 June 2007

UNITED KINGDoM 93.91% (93.82%) 200,000 Aberdeen Asset management 384,000 0.50 225,714 Adept telecom 153,486 0.20 1,300,000 Advanced Fluid connections* (suspended 27/03/2006) 0 0.00 35,000 Alliance Boots 397,600 0.52 175,000 Assetco 381,500 0.49 115,785 Aviva 844,652 1.09 186,743 Babcock International 1,000,008 1.30 150,000 Balfour Beatty 664,125 0.86 222,350 Bango 102,281 0.13 200,000 Barclays 1,366,000 1.77 190,000 BBI holdings 286,900 0.37 37,500 Bellway 470,625 0.61 45,000 Berkeley Group 804,150 1.04 153,000 BG Group 1,231,650 1.60 50,000 Biffa 136,000 0.18 275,000 BP 1,647,249 2.14 59,079 BPP holdings 345,908 0.45 93,000 British Airways 386,648 0.50 80,000 British American tobacco 1,340,000 1.74 50,000 British land 664,000 0.86 320,000 Bt Group 1,060,800 1.37 150,000 cable & Wireless 291,900 0.38 135,000 cadbury schweppes 897,750 1.16 146,154 cape 420,924 0.55 225,000 centrica 869,062 1.13 175,000 cobra Bio-manufacturing 73,500 0.10 262,500 cOdA 485,625 0.63 240,000 compass Group 823,200 1.07 237,500 dechra Pharmaceuticals 798,000 1.03 149,022 dignity 993,977 1.29 82,500 diploma 765,188 0.99 720,000 dolphin capital 1,206,000 1.56 130,223 dsG International 206,794 0.27 125,175 dunelm Group 243,152 0.32 202,423 e2v technologies 750,483 0.97 2,000,000 electric Word 195,000 0.25 711,499 elementis 683,039 0.89 150,000 enodis 295,125 0.38 45,000 Gibbs & dandy 180,000 0.23 120,000 GlaxosmithKline 1,546,800 2.01 250,000 G4s 526,250 0.68 190,000 halma 443,175 0.57 109,585 hansard Global 312,317 0.40 48,900 hanson 526,653 0.68 150,000 hBOs 1,457,249 1.89 100,000 hsBc holdings 906,500 1.17 443,750 humberts Group 346,125 0.45 64,600 ImI 386,308 0.50 210,000 Imperial chemical Industries 1,289,400 1.67 54,000 Inchcape 273,240 0.35 140,000 Informa 781,900 1.01 400,000 InG uK real estate Income trust 426,000 0.55 354,127 Inspace 605,557 0.78



Portfolio Statement


UNITED KINGDoM - continued 330,000 Inspicio 567,600 0.74 225,000 Itm Power 304,875 0.40 325,000 Itv 367,575 0.48 60,000 Jardine lloyd thompson 249,600 0.32 47,000 Johnson matthey 790,540 1.02 250,000 lamprell 813,750 1.05 31,500 land securities 542,430 0.70 331,380 legal & General Group 488,786 0.63 250,000 lloyds tsB Group 1,368,750 1.77 103,604 marshalls 357,434 0.46 120,000 mcAlpine (A) 513,600 0.67 85,000 menzies (J) 467,500 0.61 105,000 metnor Group 443,100 0.57 212,500 morgan crucible 618,906 0.80 300,000 morrison (Wm) supermarkets 897,000 1.16 50,000 national express 534,000 0.69 170,000 national Grid 1,249,500 1.62 40,000 next Group 795,600 1.03 45,000 northern rock 377,100 0.49 115,000 Office2office 253,288 0.33 270,000 Oxford Instruments 780,975 1.01 493,922 Pace micro 432,182 0.56 49,454 Pearson 410,963 0.53 143,810 Pinewood shepperton 366,716 0.48 74,074 Plethora solutions 100,000 0.13 47,000 Provident Financial 325,710 0.42 157,500 Prudential 1,099,350 1.42 30,000 reckitt Benckiser 806,100 1.04 120,000 reed elsevier 767,400 0.99 300,000 regent Inns 255,000 0.33 300,000 rentokil Initial 478,500 0.62 225,000 reuters Group 1,386,000 1.80 100,454 rexam 493,480 0.64 100,000 ricardo 366,000 0.47 40,000 rio tinto 1,504,400 1.96 228,000 rolls-royce 1,198,140 1.55 13,497,600 rolls-royce ‘B’ 13,498 0.02 66,086 royal dutch shell ‘B’ 1,366,658 1.77 131,250 sainsbury (J) 760,594 0.99 183,000 sales Activation solutions* 139,995 0.18 85,000 scottish & newcastle 539,750 0.70 33,333 severn trent 456,995 0.59 175,000 sFI Group* (litigation entitlement) 0 0.00 175,000 sFI Group* (suspended 26/03/2003) 0 0.00 70,000 smith & nephew 428,750 0.56 36,666 smiths Group 430,826 0.56 100,000 spectris 895,000 1.16 614,218 sPI lasers 1,351,280 1.75 550,000 spirent 418,000 0.54 60,000 standard chartered 957,600 1.24 250,000 tesco 1,037,500 1.34 150,000 the royal Bank of scotland 929,250 1.20 50,000 trinity mirror 260,750 0.34 50,000 unilever 799,000 1.04


Portfolio Statement



UNITED KINGDoM - continued 98,333 united utilities 692,756 0.90 1,150,625 vodafone Group 1,900,832 2.47 190,000 volex Group 351,500 0.46 1,100,000 Walker Greenbank 517,000 0.67 75,000 Wimpey (George) 376,125 0.49 77,000 Wolseley 909,370 1.18 89,708 Yell Group 412,881 0.54 170,833 Zenith hygiene 73,458 0.10


IRELAND 1.82% (2.76%) 300,000 Boundary capital 212,104 0.27 815,000 datalex 458,229 0.60 540,000 siteserv 298,158 0.39 175,000 veris 428,750 0.56

Total Ireland 1,397,241 1.82


net current assets 3,296,618 4.27

Total net assets 77,158,852 100.00





Portfolio Statement

ALLCHURCHES EURoPEAN GRowTH FUNDat 30 June 2007

UNITED KINGDoM UK Equities 26.19% (31.66%)

450,000 Advanced Fluid connections* (suspended 27/03/2006) 0 0.00 7,000 AstraZeneca 184,450 0.53 26,000 Aviva 189,670 0.55 55,000 BP 329,450 0.95 50,000 British sky Broadcasting 315,500 0.91 150,000 Bt Group 497,250 1.43 66,188 dignity 441,474 1.27 150,000 dsG International 238,200 0.69 44,000 GKn 174,680 0.50 24,014 GlaxosmithKline 309,540 0.89 30,000 Johnson matthey 504,600 1.45 10,000 land securities 172,200 0.50 52,000 lloyds tsB Group 284,700 0.82 25,454 Pearson 211,523 0.61 35,000 Prudential 244,300 0.70 30,000 reckitt Benckiser 806,100 2.32 42,000 ricardo 153,720 0.44 14,366 royal dutch shell ‘B’ 297,089 0.86 140,000 smith & nephew 857,500 2.47 20,000 smiths Group 235,000 0.68 550,000 spirent 418,000 1.20 138,125 standard life 453,050 1.30 99,795 the royal Bank of scotland 618,230 1.78 476,702 vodafone Group 787,512 2.27 200,000 volex Group 370,000 1.07


BELGIUM 1.10% (0.86%) 12,500 tessenderlo chemie 382,461 1.10

Total Belgium 382,461 1.10

FINLAND 8.05% (5.73%) 40,000 Amer sports 486,425 1.40 14,000 cargotech ‘B’ 435,426 1.25 28,000 Kone ‘B’ 877,828 2.53 37,000 nokia 520,699 1.50 18,000 vaisala ‘A’ 476,446 1.37

Total Finland 2,796,824 8.05

FRANCE 17.15% (15.74%) 16,366 AXA 348,562 1.00 5,800 Bacou-dalloz 441,155 1.27 2,286 cap Gemini 83,629 0.24 14,000 carbone lorraine 542,798 1.56 42,099 crédit-Agricole 845,030 2.44 30,000 France telecom 409,462 1.18 12,000 sanofi-Aventis 483,274 1.39 5,942 schneider electric 409,225 1.18


Portfolio Statement



FRANCE - continued 8,411 société Générale 768,256 2.21 12,736 total sA 508,970 1.47 20,000 vivendi universal 427,306 1.23 18,000 Zodiac 686,611 1.98

Total France 5,954,278 17.15

GERMANY 8.91% (6.67%) 9,000 BAsF 581,165 1.67 10,000 Bayer 375,391 1.08 20,000 deutsche Post 318,358 0.92 35,000 Francotyp-Postalia 385,558 1.11 15,000 henkel n/v Pref 388,150 1.12 4,500 munich re 407,876 1.17 9,000 siemens 640,130 1.84

Total Germany 3,096,628 8.91

IRELAND 2.01% (4.64%) 35,000 Allied Irish Banks 474,642 1.37 9,000 crh 222,649 0.64

Total Ireland 697,291 2.01

ITALY 2.13% (0.92%) 20,000 enI 360,375 1.04 220,000 terna 377,007 1.09

Total Italy 737,382 2.13

NETHERLANDS 7.19% (6.08%) 16,000 ABn-Amro holdings 365,869 1.05 9,000 Akzo nobel 384,878 1.11 24,000 Fugro 756,140 2.18 21,666 Koninklijke Ahold 135,675 0.39 30,000 unilever 462,589 1.33 26,000 Wolters Kluwer 393,032 1.13


NoRwAY 0.39% (0.43%) 30,000 edB Business Partner 136,373 0.39

Total Norway 136,373 0.39

PoRTUGAL 3.76% (3.58%) 100,000 Brisa Auto-estrades 672,000 1.94 79,300 electricidade de Portugal 218,925 0.63 14,100 Portugal telecom 97,315 0.28 45,900 Portugal telecom Adr 317,081 0.91

Total Portugal 1,305,321 3.76



Portfolio Statement


SPAIN 5.56% (5.41%) 20,000 Banco Bilbao vizcaya Argenta 242,405 0.70 70,000 Banco santander central hispano 641,026 1.85 24,000 Gas natural 716,547 2.06 17,000 telefonica 187,500 0.54 4,300 telefonica Adr 142,819 0.41

Total Spain 1,930,297 5.56

SwEDEN 7.53% (8.07%) 18,050 electrolux ‘B’ 213,534 0.61 200,000 ericsson 399,531 1.15 80,000 Getinge ‘B’ 864,873 2.50 5,415 husqvarna ‘A’ 39,126 0.11 18,050 husqvarna ‘B’ 129,106 0.37 84,000 Q-med 584,009 1.68 40,000 swedish match 385,117 1.11


SwITzERLAND 3.82% (4.32%) 10,000 novartis 278,790 0.80 10,000 roche Genusscheine 876,023 2.52 1,132 Zurich Financial services 173,333 0.50

Total Switzerland 1,328,146 3.82







Portfolio Statement


ALLCHURCHES INTERNATIoNAL GRowTH FUNDat 30 June 2007

UNITED KINGDoM UK Equities 9.99% (12.72%)

7,000 AstraZeneca 184,450 0.54 101,185 Bt Group 335,428 0.98 66,188 dignity 441,474 1.29 25,380 GlaxosmithKline 327,148 0.96 27,000 lloyds tsB Group 147,825 0.43 25,500 marks & spencer Group 159,120 0.47 24,181 Pearson 200,944 0.59 14,366 royal dutch shell ‘B’ 297,089 0.87 66,795 the royal Bank of scotland 413,795 1.21 262,500 vodafone Group 433,650 1.27 40,000 Wolseley 472,400 1.38


AUSTRALIA 0.98% (0.20%) 300,000 sigma Pharmaceuticals 267,272 0.78 36,000 telstra 69,949 0.20

Total Australia 337,221 0.98

CHINA 11.02% (11.35%) 150,000 BYd company 420,762 1.23 50,000 BYd electronic company 0 0.00 550,000 datang International Power 423,347 1.24 1,000,000 huaneng Power International 565,484 1.66 1,900,000 sinopec 1,050,166 3.08 2,931,000 sinotrans 690,285 2.02 800,000 Yanzhou coal mining 610,671 1.79

Total China 3,760,715 11.02

FINLAND 4.69% (4.82%) 12,000 cargotech ‘B’ 373,222 1.09 24,000 Kone ‘B’ 752,424 2.21 18,000 vaisala ‘A’ 476,447 1.39

Total Finland 1,602,093 4.69

FRANCE 7.46% (7.35%) 16,366 AXA 348,562 1.02 2,285 cap Gemini 83,592 0.24 11,000 carbone lorraine 426,484 1.25 12,000 sanofi-Aventis 483,274 1.41 5,942 schneider electric 409,225 1.20 5,200 viviendi universal 111,099 0.33 18,000 Zodiac 686,611 2.01

Total France 2,548,847 7.46



Portfolio Statement


GERMANY 1.87% (1.55%) 9,000 siemens 640,130 1.87

Total Germany 640,130 1.87

HoNG KoNG 15.22% (15.70%) 610,000 Anhui tianda Oil Pipe company 269,415 0.79 90,000 china mobile 482,512 1.41 900,000 china Oriental Group 184,963 0.54 895,000 china shineway Pharmaceuticals 352,448 1.03 900,000 cnOOc 508,361 1.49 26,400 hong Kong Aircraft engineering 200,342 0.59 1,750,000 hop Fung Group 346,247 1.01 518,597 Kowloon development 515,022 1.51 3,000,000 lerado Group 185,729 0.54 350,000 Pacific Basin shipping 196,802 0.58 666,000 Peace mark holdings 452,275 1.32 1,776,000 scud Group 303,784 0.89 2,000,000 ta Yang Group 399,540 1.17 1,350,000 tcl International 53,421 0.16 675,000 tcl multimedia nil Paid 9,047 0.03 175,000 vtech holdings 736,055 2.16

Total Hong Kong 5,195,963 15.22

IRELAND 1.39% (1.82%) 35,000 Allied Irish Banks 474,642 1.39 Total Ireland 474,642 1.39

JAPAN 0.63% (0.68%) 12,000 IsB corporation 67,909 0.20 5,800 sony coporation 147,936 0.43

Total Japan 215,845 0.63

KoREA 0.82% (1.05%) 922 samsung electronics 281,204 0.82

Total Korea 281,204 0.82

MALAYSIA 1.55% (1.09%) 125,000 Fraser & neave 132,814 0.39 550,000 Pelikan International 397,539 1.16

Total Malaysia 530,353 1.55

MExICo 1.25% (1.09%) 22,400 telefonos de mexico Adr 427,130 1.25

Total Mexico 427,130 1.25


Portfolio Statement



NETHERLANDS 4.94% (4.97%) 24,000 Fugro 756,141 2.22 21,666 Koninklijke Ahold 135,675 0.40 14,500 Ordina 148,601 0.44 30,000 unilever 462,589 1.35 12,000 Wolters Kluwer 181,399 0.53


PoRTUGAL 1.21% (1.05%) 13,080 Portugal telecom 90,276 0.26 46,920 Portugal telecom Adr 324,127 0.95


SINGAPoRE 9.42% (7.25%) 26,810 creative technology 63,786 0.19 235,000 Fraser & neave 417,155 1.22 500,000 Goodpack 356,654 1.04 400,000 Ks energy services 492,476 1.44 1,000,000 noble 556,967 1.63 228,000 sIA engineering 352,003 1.03 200,000 singapore Petroleum 374,568 1.10 50,000 united Overseas Bank 356,654 1.04 50,000 venture corporation 250,799 0.73


SPAIN 3.85% (4.51%) 67,700 Banco santander central hispano 619,963 1.81 21,014 telefonica Adr 697,951 2.04 Total Spain 1,317,914 3.85

SwEDEN 3.73% (7.12%) 19,335 electrolux ‘B’ 228,736 0.67 40,000 Getinge ‘B’ 432,437 1.27 5,800 husqvarna ‘A’ 41,908 0.12 19,335 husqvarna ‘B’ 138,297 0.40 45,000 swedish match 433,256 1.27


SwITzERLAND 2.23% (2.72%) 10,000 novartis 278,790 0.82 5,500 roche-Genussscheine 481,813 1.41

Total Switzerland 760,603 2.23



Portfolio Statement


THAILAND 3.69% (1.82%) 300,000 Advanced Information services 368,442 1.08 670,000 hana microelectronics 273,478 0.80 600,000 Kiatnakin Bank 277,415 0.82 2,000,000 Krung thai Bank 338,100 0.99

Total Thailand 1,257,435 3.69

UNITED STATES 9.58% (9.62%) 5,000 chevron texaco corporation 209,911 0.61 11,000 citigroup 284,259 0.83 7,500 colgate Palmolive 244,501 0.72 13,656 conocoPhillips 522,700 1.53 305 Idearc 5,366 0.02 19,500 Ims health 311,821 0.91 8,000 merck & company 201,427 0.59 9,000 Pepsico 292,862 0.86 30,000 Pfizer 383,510 1.12 10,000 Proctor & Gamble 306,000 0.90 13,700 southern company 231,647 0.68 6,100 verizon communications 124,866 0.37 5,000 Waters corporation 149,808 0.44 8,000 Worldcom Inc Group* 0 0.00 320 Worldcom mcI Group* 0 0.00

Total United States 3,268,678 9.58







Balance Sheet

Amity Higher UK Equity European International Total Income Growth Growth Growth 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06

notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

ASSETSPortfolio of investments 63,549 58,518 40,604 25,499 73,862 70,629 32,572 29,773 32,627 28,917 243,214 213,336

debtors 8 271 87 380 233 325 181 73 53 161 93 1,210 647cash at bank 3,738 6,377 2,124 3,501 3,476 3,531 2,242 2,248 1,560 973 13,140 16,630

total other assets 4,009 6,464 2,504 3,734 3,801 3,712 2,315 2,301 1,721 1,066 14,350 17,277

total assets 67,558 64,982 43,108 29,233 77,663 74,341 34,887 32,074 34,348 29,983 257,564 230,613

LIABILITIEScreditors 9 (152) (89) (189) (190) (86) (70) (42) (64) (133) (183) (602) (596)Bank overdraft - - - - (3) - - - - - (3) -distribution payable on ‘A’ and ‘B’ shares 7 (88) (321) (278) (862) (415) (1,142) (117) (374) (57) (436) (955) (3,135)

total liabilities (240) (410) (467) (1,052) (504) (1,212) (159) (438) (190) (619) (1,560) (3,731)

Net assets attributable to shareholders 67,318 64,572 42,641 28,181 77,159 73,129 34,728 31,636 34,158 29,364 256,004 226,882

unaudited at 30 June 2007


Summary of Material Portfolio Changes

Yell Group 402carbone lorraine 399rexam 383sigma Pharmaceuticals 367ta Yang Group 357Assetco 356smiths Group 331st James Place 323Quadnetics Group 242dunelm Group 206Boundary capital 137camper & nicholsons marina 131Ks energy services 98Barclays 95BBI holdings 79titan europe 70Pfizer 67Alliance Boots 52marshalls 14 Total cost of all securities purchased: 4,110 17

Allchurches Amity Fundunaudited for the period 1 January 2007 to 30 June 2007

matalan 200ses Global Fdr 197Ordina 172Getinge ‘B’ 115smiths Group 110Berkeley Group 90linmark Group 84Amiad Filtration systems 72siteserv 68sinotrans 50dolphin capital 47

Total proceeds from all securities sold: 1,205

Sales Proceeds £’000

Purchases Cost Note £’000

the above statement identifies the value of purchases and sales of a security exceeding 2% of the net assets of the Fund at the start of the period. In any event, all of the purchases and all of the sales during the period have been shown.



treasury 4.75% 07/06/2010 2,643china Infrastructure machinery 536minth Group 318Jinhui holdings 278Pan united marine 276Arla Foods 249dechra Pharmaceuticals 224malaysian Oxygen 216cable & Wireless 183e2v technologies 183smiths Group 183china mobile 132datang International Power Generation 121scottish Power 96sinopec 91Biffa 83linmark Group 68morrison (Wm) supermarkets 54sinotrans 45crc Group 13 Total proceeds from all securities sold: 5,993

Allchurches higher Income Fundunaudited for the period 1 January 2007 to 30 June 2007

treasury 4% 07/03/2009 2,679treasury 4.75% 07/06/2010 2,650smiths Group 542Pfizer 535General Accident 7.875% Pref 508Kiatnakin Bank 475Aviva 470national Grid 467standard chartered 467ta Yang Group 459BP 451Pan united marine 390Portugal telecom 374sigma Pharmaceuticals 367ladbrokes 363singapore Petroleum 354Krung thai Bank 342hsBc holdings 323Pacific Basin shipping 318Bt Group 315 Total cost of all securities purchased: 19,401 17



the above statement identifies the value of purchases and sales of a security exceeding 2% of the net assets of the Fund at the start of the period. In any event, as a minimum, the 20 largest purchases and the 20 largest sales during the period have been shown.



the above statement identifies the value of purchases and sales of a security exceeding 2% of the net assets of the Fund at the start of the period. In any event, as a minimum, the 20 largest purchases and the 20 largest sales during the period have been shown.


Allchurches uK equity Growth Fundunaudited for the period 1 January 2007 to 30 June 2007

elementis 650Yell Group 547rentokil Initial 498Pace micro technology 455BPP holdings 420metnor Group 407Alliance Boots 365Assetco 356national Grid 351Balfour Beatty 276cape 391smiths Group 227Boundary capital 205electric Word 202sPI lasers 160compass Group 150Prudential 147BP 138BBI holdings 122Imperial chemical Industries 118

Total cost of all securities purchased: 6,384 17

Gallaher Group 794British land 713Irish life & Permanent 555mothercare 454Friends Provident 399derwent london 361shaftesbury 334Aberdeen Asset management 316ladbrokes 305marks & spencer Group 285land securities 278leo capital 246emAP 214smiths Group 201centrica 191crest nicholson 182Amiad Filtration systems 137dolphin capital 128mcAlpine (Alfred) 90Berkeley Group 90





Allchurches european Growth Fundunaudited for the period 1 January 2007 to 30 June 2007

British American tobacco 456Gallaher Group 456Anglo Irish Bank 327scottish Power 277Allied Irish Banks 225swedish match 219Irish life & Permanent 192marks & spencer Group 182Ordina 172emAP 126smiths Group 110land securities 107electrolux ‘A’ 26


Amer sports 437ericsson 385munich re 383enI 336Akzo nobel 292carbone lorraine 239Francotyp-Postalia 185nokia 168France telecom 138Bacou-dalloz 104terna 94Portugal telecom 93vivendi 84crédit-Agricole 68schneider electric 17




the above statement identifies the value of purchases and sales of a security exceeding 2% of the net assets of the Fund at the start of the period. In any event, as a minimum, all the purchases and all of the sales during the period have been shown.




Allchurches International Growth Fundunaudited for the period 1 January 2007 to 30 June 2007

Peace mark holdings 523cable & Wireless 493china special steel holdings 493swedish match 410minth Group 403Getinge ‘B’ 401vtech holdings 310china mobile 240malaysian Oxygen 216Ajisen china holdings 191sinopec 183Jinhui holdings 181datang International Power 121linmark Group 84BYd company ‘h’ 77sinotrans 75Anhui tianda Oil Pipe company 72electrolux ‘B’ 28


ta Yang Group 459singapore Petroleum 354Krung thai Bank 345Pelikan International 334sigma Pharmeceuticals 309citigroup 298Kiatnakin Bank 263Kowloon development 235Pacific Basin shipping 180carbone lorraine 168scud Group 158Ajisen china holdings 151Ks energy services 98Pfizer 94Portugal telecom 86Advanced Information services 56Goodpack 54datang International Power 48hop Fung Group 44schneider electric 17



the above statement identifies the value of purchases and sales of a security exceeding 2% of the net assets of the Fund at the start of the period. In any event, as a minimum, the 20 largest purchases and all of the sales during the period have been shown.


Notes to the Financial Statements

1. Accounting Policiesa. Basis of accountingthe financial statements have been prepared in accordance with applicable united Kingdom generally accepted accounting principles under the historical cost convention, as modified by the revaluation of investments. the financial statements reflect transactions in each of the Allchurches sub-funds – Allchurches Amity Fund, Allchurches higher Income Fund, Allchurches uK equity Growth Fund, Allchurches european Growth Fund and Allchurches International Growth Fund unaudited for the period 1 January 2007 to 30 June 2007. the Acd has prepared financial statements that comply with the statement of recommended Practice (sOrP): “Financial statements of Authorised Funds” issued by the Investment management Association (ImA) in december 2005.

b. Recognition of incomeAll dividends on investments declared ex-dividend up to the accounting date are shown as gross income. Bank and other interest receivable is included on an accruals basis. Accrued interest purchased and sold on interest bearing securities is excluded from the capital cost of these securities and dealt with as part of the income of the company. Income is allocated to the share classes of each sub-fund based on the proportion of assets held by each share class.

c. Treatment of stock and special dividendsthe ordinary element of stocks received in lieu of cash dividends is recognised as income of the Fund based on the market value of the investments on the day they are quoted ex-dividend. Any enhancement above the cash dividend is treated as a capital gain on the investment. special dividends are recorded as income or capital depending on the underlying substance of the transaction.

d. Treatment of management expensesthe Acd’s annual management fee is charged within the net income of the sub-funds. In respect of the Allchurches higher Income Fund, the annual management charge is taken from capital not income so the capital value of the Fund could be reduced over time.

e. Distribution policyIf at the end of the period income after tax exceeds expenses attributable to a sub-fund, the net income available of that sub-fund will be distributed to shareholders.

f. Basis of valuation of investmentsto comply with the new sOrP quoted investments have been valued at bid-market value at 12:00pm on the last business day of the accounting period net of any accrued interest which is included in the balance sheet as income. Prior period quoted investments have been valued at mid-market value. this change in valuation base constitutes a change in accounting policy. As restatement of the prior period comparatives is not required by the new sOrP, the value of investments for the prior period is shown at mid-market value. If comparative information had been restated, the adjustment required would be to reduce the value of investment by the spread between mid-market and bid-market values with an equal reduction in net gains on investments.

g. Unapproved, suspended and unlisted securitiesAny unlisted securities, suspended securities and unapproved securities are valued by the Acd at the balance sheet date.

h. Foreign currenciesthe values of assets and liabilities denominated in foreign currencies have been converted into sterling at the exchange rates prevailing at 12:00 pm on the last business day of the accounting period. Any exchange differences arising on translation of assets and liabilities other than investments are included in net income.

i. Taxationthe sub-funds are liable to corporation tax applied at a rate of 20.0% on interest, overseas dividend income and underwriting commission. deferred tax is provided for by the liability method on all short-term timing differences. uK dividend income is disclosed net of any related tax credit. Overseas dividends continue to be disclosed gross of any foreign tax suffered, the tax element being shown separately in the taxation note.

j. ExpensesAll expenses, other than those relating to the purchase and sale of investments and stamp duty reserve tax (sdrt) are charged against income, with the exception of the Allchurches higher Income Fund, where management expenses have been charged against capital with effect from 2 January 2003. expenses relating to each sub-fund are allocated to the share classes based on the proportion of assets held within each share class.



2. net gains on investmentsthe net gains on investments during the period comprise:


£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

non-derivative securities 2,126 2,559 1,679 292 3,598 1,423 2,650 929 4,463 923 14,516 6,126

Net gains on investments 2,126 2,559 1,679 292 3,598 1,423 2,650 929 4,463 923 14,516 6,126

3. Other (losses)/gains Amity Higher UK Equity European International Total Income Growth Growth Growth 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

currency (losses) /gains (3) 17 (11) (203) (1) 6 (11) 14 (16) (21) (42) (187)

4. Gross income Amity Higher UK Equity European International Total Income Growth Growth Growth 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Franked uK dividends 841 857 288 327 1,104 1,495 151 185 65 63 2,449 2,927

Overseas dividends 206 177 207 120 19 12 530 371 460 390 1,422 1,070

Interest on fixed interest stocks - - 240 181 - - - - - - 240 181

Bank interest 123 73 83 39 94 53 41 20 19 21 360 206

1,170 1,107 818 667 1,217 1,560 722 576 544 474 4,471 4,384



5. expenses Amity Higher UK Equity European International Total Income Growth Growth Growth 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Payable to the Authorised Corporate Director or associates of the Authorised Corporate Director:

Acd’s charge 445 370 185 142 347 300 134 116 125 104 1,236 1,032

Payable to the Depositary or associates of the Depositary:

depositary’s fee 20 16 10 7 22 19 10 8 9 8 71 58

safe custody fee 4 3 4 3 3 2 5 4 7 5 23 17

security transaction fees 2 2 5 4 2 2 2 1 6 3 17 12

26 21 19 14 27 23 17 13 22 16 111 87

other expenses:

registration fee 15 15 15 14 9 8 3 3 2 3 44 43

Audit fee 3 3 3 3 3 3 3 3 3 3 15 15

sundry expenses - (1) - - - (1) - - - - - (2)

18 17 18 17 12 10 6 6 5 6 59 56

Total expenses 489 408 222 173 386 333 157 135 152 126 1,406 1,175



6. taxation Amity Higher UK Equity European International Total Income Growth Growth Growth 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

a. Analysis of charge in period:

corporation tax - - 59 34 - - 65 51 77 57 201 142

double taxation relief - - (11) (27) - - (63) (51) (33) (36) (107) (114)

Overseas withholding tax 22 17 7 9 - 1 64 51 30 37 123 115

Total current tax 22 17 55 16 - 1 66 51 74 58 217 143

deferred tax - - (4) - - - - - (10) - (14) -

Total taxation 22 17 51 16 - 1 66 51 64 58 203 143



6. taxation continued Amity Higher UK Equity European International Total Income Growth Growth Growth 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

b. Factors affecting taxation charge for the period:

net income before taxation 681 699 596 494 831 1,227 565 441 392 348 3,065 3,209

Total return on ordinary activities before taxation 681 699 596 494 831 1,227 565 441 392 348 3,065 3,209

Net income multiplied by the standard rateof Corporation Tax of 20% (2006 – 20%) 136 140 120 99 166 245 113 88 78 70 613 642

effects of:

Franked investment income (168) (171) (58) (65) (221) (299) (30) (37) (13) (13) (490) (585)

Overseas withholding tax 22 17 7 9 - 1 64 51 30 37 123 115

tax relief on overseas withholding tax - - - - - - - - - - - -

double taxation relief - - (11) (27) - - (63) (51) (33) (36) (107) (114)

transaction charges - - 1 - - - - - 1 - 2 -

current year expenses not utilised 32 31 (8) - 55 54 (18) - 11 - 72 85

deferred tax - - - - - - - - (10) - (10) -

current tax charge (note 6a) 22 17 51 16 - 1 66 51 64 58 203 143

c. the Allchurches Amity Fund has not recognised a deferred tax asset of £486,823 (2006: £415,107) arising as a result of having unutilised management expenses. the Allchurches uK equity Growth Fund has not recognised a deferred tax asset of £350,367 (2006: £244,775) arising as a result of having unutilised management expenses. these are not expected to be utilised in the foreseeable future unless the nature of the Funds’ income or capital gains/(losses) changes. the Allchurches higher Income Fund, the Allchurches european Growth Fund and the Allchurches International Growth Fund have no deferred tax assets (2006: £nil).



7. Finance costs DISTRIBUTIoNSthe distributions take account of income received on the creation of units and income deducted on cancellation of units, and comprise:


£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Interim

share class A (distribution) 85 83 193 159 41 39 5 5 - - 324 286

share class B (distribution) 3 3 85 10 374 374 112 112 57 56 631 555

share class c (Accumulation) 113 113 23 20 57 57 1 1 - - 194 191

Net distribution/accumulation for the period 201 199 301 189 472 470 118 118 57 56 1,149 1,032

Income deducted on shares cancelled 18 6 40 13 6 4 - - - - 64 23

Income received on shares created (18) (10) (402) (38) (5) (2) (1) (1) (1) - (427) (51)

Net distribution/accumulation for the period 201 195 (61) 164 473 472 117 117 56 56 786 1,004

Interest - - - - - - - - - - - -

Total finance costs 201 195 (61) 164 473 472 117 117 56 56 786 1,004

reconciliation between net income and distributions

net income after taxation 659 682 545 478 831 1,226 499 390 328 290 2,862 3,066

Add: Investment transaction charges 2 2 5 4 2 2 2 1 6 3 17 12

Add: Acd’s fee charged to capital (net of tax relief) - - 148 114 - - - - - - 148 114

deduct: Income brought forward (460) (489) (759) (432) (360) (756) (384) (274) (278) (237) (2,241) (2,188)

Add: Income carried forward - - - - - - - - - - - -

201 195 (61) 164 473 472 117 117 56 56 786 1,004



7. Finance costs continueddistribution/Accumulation statementAllchurches Amity Fund

Share Class A Group 1: Shares purchased prior to 1 January 2007Interim distribution (pence per share) Group 2: Shares purchased on or after 1 January 2007

Group Gross Income Tax Credit Net Income Equalisation 2007 Distribution Payable 2006 Paid 1 0.5556 0.0556 0.5000 - 0.5000 0.5000 2 0.3690 0.0369 0.3321 0.1679 0.5000 0.5000

Share Class B Group 1: Shares purchased prior to 1 January 2007Interim distribution (pence per share) Group 2: Shares purchased on or after 1 January 2007

Group Gross Income Tax Credit Net Income Equalisation 2007 Distribution Payable 2006 Paid 1 0.7222 0.0722 0.6500 - 0.6500 0.6500 2 0.7222 0.0722 0.6500 - 0.6500 0.6500

Share Class C Group 1: Shares purchased prior to 1 January 2007Interim accumulation (pence per share) Group 2: Shares purchased on or after 1 January 2007

Group Gross Income Tax Credit Net Income Equalisation 2007 Accumulation Payable 2006 Paid 1 0.8000 0.0800 0.7200 - 0.7200 0.7200 2 0.6818 0.0681 0.6137 0.1063 0.7200 0.7200

A shareholder liable to uK corporation tax receives the distribution and associated tax credit as franked investment income to the extent that the gross income from which the distribution is made is itself franked investment income. Where the gross income from which the distribution is made is not wholly franked investment income, part of the distribution is received by the shareholder as an annual payment from the scheme from which income tax at the lower rate has been deducted.

Of the distribution:

i) 71.84% of the interim income distribution is received as franked investment income; and

ii) 28.16% of the interim income distribution is received as an annual payment from which income tax at the lower rate has been deducted. the gross amount of this portion of total income distribution is liable to uK corporation tax. It is not franked investment income.



7. Finance costs continueddistribution/Accumulation statementAllchurches higher Income Fund






Group Gross Income Tax Credit Net Income Equalisation 2007 Accumulation Payable 2006 Paid 1 1.1222 0.1122 1.0100 - 1.0100 1.0100 2 0.8913 0.0891 0.8022 0.2078 1.0100 1.0100

A shareholder liable to uK corporation tax receives the distribution and associated tax credit as franked investment income to the extent that the gross income from which the distribution is made is itself franked investment income. Where the gross income from which the distribution is made is not wholly franked investment income, part of the distribution is received by the shareholder as an annual payment from the scheme from which income tax at the lower rate has been deducted.






A shareholder liable to uK corporation tax receives the distribution and associated tax credit as franked investment income to the extent that the gross income from which the distribution is made is itself franked investment income. Where the gross income from which the dis-tribution is made is not wholly franked investment income, part of the distribution is received by the shareholder as an annual payment from the scheme from which income tax at the lower rate has been deducted.









Group Gross Income Tax Credit Net Income Equalisation 2007 Accumulation Payable 2006 Paid 1 0.7556 0.0756 0.6800 - 0.6800 0.6800 2 0.7556 0.0756 0.6800 - 0.6800 0.6800

7. Finance costs continueddistribution/Accumulation statementAllchurches uK equity Growth Fund









A shareholder liable to uK corporation tax receives the distribution and associated tax credit as franked investment income to the extent that the gross income from which the distribution is made is itself franked investment income.

Where the gross income from which the distribution is made is not wholly franked investment income, part of the distribution is received by the shareholder as an annual payment from the scheme from which income tax at the lower rate has been deducted.




7. Finance costs continueddistribution/Accumulation statementAllchurches european Growth Fund









A shareholder liable to uK corporation tax receives the distribution and associated tax credit as franked investment income to the extent that the gross income from which the distribution is made is itself franked investment income.

Where the gross income from which the distribution is made is not wholly franked investment income, part of the distribution is received by the shareholder as an annual payment from the scheme from which income tax at the lower rate has been deducted.




7. Finance costs continueddistribution/Accumulation statementAllchurches International Growth Fund



Equalisation equalisation applies only to shares purchased during the distribution period (Group 2 shares). It is the average amount of income included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital it is not liable to income tax. Instead, it must be deducted from the cost of income shares for capital Gains tax purposes.

Income allocated to accumulation shares the holders of accumulation shares must add the income accumulated (excluding equalisation) to the cost of such shares for capital gains tax purposes.

Income distribution to corporate shareholders A shareholder liable to uK corporation tax receives the dividend distribution and associated tax credit as franked investment income to the extent that the gross income from which the distribution is made is franked investment income.

the shares of class ‘A’ and ‘B’ are distribution shares, while the shares of class ‘c’ are accumulation shares.

7. Finance costs continuednotes for distribution/Accumulation statement



8. debtors Amity Higher UK Equity European International Total Income Growth Growth Growth 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Amounts receivable for creations of shares 49 4 71 5 21 - 2 - 4 - 147 9

Accrued income 213 79 304 227 304 180 39 33 37 87 897 606

Overseas tax recoverable 9 4 3 1 - 1 32 20 14 6 58 32

sales awaiting settlement - - 2 - - - - - 106 - 108 - 271 87 380 233 325 181 73 53 161 93 1,210 647

9. creditors Amity Higher UK Equity European International Total Income Growth Growth Growth 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Amounts payable for cancellation of shares - 2 12 22 - - - 13 - - 12 37

Accrued expenses 108 87 64 40 86 70 40 32 40 28 338 257

deferred tax - - 2 6 - - - - 3 13 5 19

corporation tax - - 111 63 - - 2 - 90 47 203 110

Purchases awaiting settlement 44 - - 59 - - - 19 - 95 44 173

152 89 189 190 86 70 42 64 133 183 602 596



10. Related partiesAllchurches Investment management services limited, together with the Bank of new York trust and depositary company limited are regarded as controlling parties by virtue of having the ability to act in concert in respect of the operations of the company.

Allchurches Investment management services limited, acts as principal on all the transactions of shares in the company. the aggregate monies received through creations and liquidations are disclosed in the statement of movements in shareholders’ funds and amounts due to/from Allchurches Investment management services limited in respect of share transactions at the period end are disclosed in notes 8 and 9.

Amounts paid to Allchurches Investment management services limited in respect of the Acd’s periodic charges are disclosed in note 5. £228,543 was due at the period end (2006: £171,290).

Amounts paid to the Bank of new York trust and depositary company limited in respect of depositary services and safe custody charges are disclosed in note 5. charges of £23,806 were due at the period end (2006: £14,787).

cash balances on deposit with the Bank of new York trust and depositary company limited are disclosed in the balance sheet together with interest due. Interest receivable is disclosed within accrued income in note 8.

neither Allchurches Investment management services limited nor the Bank of new York trust and depositary company limited entered into any other transactions with the company during the period under review.

11. Financial instrumentsIn pursuing its investment objectives set out on pages 6, 8, 10,12 and 14 the company may hold a number of financial instruments, these comprise:

equity and non-equity shares, fixed income securities, and floating rate securities. these are held in accordance with the company’s investment objectives and policies;

cash, liquid resources and short-term debtors and creditors that arise directly from its operations;

shareholders’ funds which represent investors’ monies which are invested on their behalf;

borrowings used to finance investment activity.

12. Risks of financial instrumentsthe main risks arising from the company’s financial instruments are market price, foreign currency, interest rate, liquidity and credit risks. the Acd reviews policies for managing each of these risks. these policies have remained unchanged since the beginning of the period to which these financial statements relate:

the Acd regularly considers the asset allocation of the portfolio in order to minimise the risk associated with particular countries or industry sectors whilst continuing to follow the investment objective. An individual fund manager has responsibility for monitoring the existing portfolio selected in accordance with the overall asset allocation parameters described above and seeks to ensure that individual stocks also meet the risk reward profile that is acceptable.

the Acd does not use derivative instruments to hedge the investment portfolio against market risk, because in its opinion the cost of such a process would result in an unacceptable reduction in the potential for capital growth. no derivatives were held during the period under review.



12. risks of financial instruments continuedCurrency Analysis


£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Australian dollars 1,373 967 811 270 - - - - 338 60 2,522 1,297

danish kroner - 514 241 342 - - - - - - 241 856

euro 4,067 4,016 2,295 1,514 967 1,599 19,234 16,227 7,707 6,781 34,270 30,137

hong Kong dollars 1,262 881 6,068 4,352 - - - - 9,339 8,108 16,669 13,341

Japanese yen - - - - - - - - 216 199 216 199

Korean won - - - - - - - - 281 310 281 310

malaysian ringgit - - 350 330 - - - - 748 331 1,098 661

norwegian kroner 597 498 145 139 - - 136 135 - - 878 772

singapore dollars 1,648 1,413 1,775 1,066 - - - - 3,162 2,156 6,585 4,635

sterling 54,268 51,723 28,804 19,904 76,192 71,530 10,943 10,906 3,948 3,723 174,155 157,786

swedish kronor 1,729 1,896 - - - - 2,616 2,552 1,605 2,089 5,950 6,537

swiss francs - - - - - - 1,339 1,375 766 803 2,105 2,178

thai baht 376 334 1,351 264 - - - - 1,258 535 2,985 1,133

us dollars 1,998 2,330 801 - - - 460 441 4,790 4,269 8,049 7,040 Net Assets 67,318 64,572 42,641 28,181 77,159 73,129 34,728 31,636 34,158 29,364 256,004 226,882

Interest rate risk profile of financial assets and liabilities:Financial assets with fixed interest rates:


£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Fixed rate financial assets - - 12,451 8,120 - - - - - - 12,451 8,120

Floating rate 3,769 6,377 2,037 3,501 3,297 3,531 2,156 2,248 1,531 972 12,790 16,629

nil interest bearing 63,549 58,195 28,153 16,560 73,862 69,598 32,572 29,388 32,627 28,392 230,763 202,133securities

Net assets 67,318 64,572 42,641 28,181 77,159 73,129 34,728 31,636 34,158 29,364 256,004 226,882

the liabilities of the Fund are the distributions to shareholders which do not carry interest.



12. risks of financial instruments continuedweighted average of fixed interest rates:

Amity Higher UK Equity European International Income Growth Growth Growth 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06

% % % % % % % % % %

sterling - 5.50 4.84 - - - - -

weighted average period for financial assets with fixed interest rates:

Amity Higher UK Equity European International Income Growth Growth Growth 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06 30/06/07 31/12/06

years years years years years years years years years years

sterling - 20.98 17.29 - - - - -



12. risks of financial instruments continuedMarket risk – arises mainly from uncertainty about future prices

of financial instruments held. It represents the potential loss the company might suffer through holding market positions in the face of price movements.

Foreign currency risk - the income and capital value of the company’s investments can be affected by foreign currency translation movements as some of the company’s assets and income are denominated in currencies other than sterling which is the company’s functional currency.

the Acd has identified three principal areas where foreign currency risk could impact on the company. these are movement in exchange rates affecting the value of investments, short-term timing differences such as exposure to exchange rate movement during the period between commencement of the investment transaction and the date when settlement of the investment occurs, and finally movements in exchange rates affecting income received by the company. the company converts all receipts of income, received in currency, into sterling on the day of receipt.

At the period end date a portion of the net monetary assets of the company was denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by exchange rate movement.

Interest rate risk - the company invests in both fixed rate and floating rate securities. Any change to the interest rates relevant for particular securities may result in either income increasing or decreasing, or the Acd being unable to secure similar returns on the expiry of contracts or the sale of securities. In addition changes to prevailing rates or changes in expectations of future rates may result in an increase or decrease in the value of the securities held.

In general, if interest rates rise the income potential of the company also rises but the value of fixed rate securities will decline (along with certain expenses calculated by reference to the assets of the company). A decline in interest rates will in general have the opposite effect.

Liquidity risk – the company’s assets comprise mainly readily realisable securities, which can be sold. the main liability of the company is the redemption of any shares that investors wish to sell.

Credit risk – certain transactions in securities that the company enters into expose it to the risk that the counterparty will not deliver the investment (purchase) or cash (sale) after the company has fulfilled its responsibilities.

Credit rating risk – the current fixed interest portfolio consists of a range of fixed interest instruments including government securities, preference shares, permanent interest bearing shares, overseas bonds and corporate loans and bonds. limits are imposed on the credit ratings of the corporate bond portfolio and exposures regularly monitored.

the company only buys and sells investments through brokers which have been approved by the Acd as an acceptable counterparty. In addition, limits are set as to the maximum exposure to any individual broker that may exist at any time. these limits are reviewed regularly.

13. Contingent liabilitiesthere were no contingent liabilities at the period end date.

14. Dilution levythe Acd reserves the right to charge a dilution levy of up to 1.0% of the price of a share on the sale and/or redemption of shares under certain circumstances. If charged, the dilution levy will be paid into the Fund in accordance with the Financial services Authority regulations.

15. Fair value of financial assets and financial liabilitiesthe market value of investments is taken to equal ‘fair value’. Given the activities of the Fund, none of the investments held fall within the definition of ‘investments held for trading’.



16. Shareholders’ Fundsthe company currently has three share classes; class A Income (retail), class B Income (Institutional) and class c Accumulation (Institutional). the annual management charge as a percentage of net assets of each share class is as follows:

Investment Fund Class

Allchurches Amity Fund A 1.50% B 0.75% c 1.25%

Allchurches higher Income Fund A 1.25% B 0.75% c 1.00%

Allchurches uK equity Growth Fund A 1.50% B 0.75% c 1.25%

Allchurches european Growth Fund A 1.50% B 0.75% c 1.25%

Allchurches International Growth Fund A 1.50% B 0.75% c 1.25%

the net asset values of each share class, the net asset value per share, and the number of shares in each class are given in the comparative tables in pages 7 to 15. the distribution per share class is given in the distribution tables in note 7. All classes have the same rights on winding up.



17. Portfolio transaction costs Amity Higher UK Equity European International Total Income Growth Growth Growth 30/06/07 30/06/06 30/06/07 30/06/06 30/06/07 30/06/06 30/06/07 30/06/06 30/06/07 30/06/06 30/06/07 30/06/06

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Analysis of total purchase costs:

Purchases in period before transaction costs 4,086 2,428 19,349 3,374 6,341 6,218 3,013 402 3,735 2,256 36,656 14,678 commissions 12 7 27 8 22 16 8 1 15 10 84 42 Other costs 12 10 25 12 21 30 - - 1 15 59 67 total purchase costs 24 - 52 - 43 - 8 - 16 - 143 - Gross purchase total 4,110 2,445 19,401 3,394 6,384 6,264 3,021 403 3,751 2,281 36,799 14,787

Analysis of total sale costs:

Gross sales before transaction costs 1,207 3,320 6,004 1,532 6,791 7,544 2,878 770 4,519 2,527 21,534 15,693 commissions (2) (4) (9) (2) (17) (14) (6) - (14) (9) (48) (29)

Other costs - (1) (2) (1) (25) - - - (3) (8) (30) (10) total sale costs (2) - (11) - (42) - (6) - (17) - (78) - total sales net of transaction costs 1,205 3,315 5,993 1,529 6,749 7,530 2,872 770 4,502 2,510 21,456 15,654

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Ecclesiastical Insurance Office plc. (EIO) Reg. No. 24869. Ecclesiastical Insurance Group plc. (EIG) Reg. No. 1718196. Ecclesiastical Life Ltd. (ELL) Reg. No. 243111. Ecclesiastical Group AssetManagement Ltd. (EGAM) Reg. No. 2170213. Allchurches Investment Management Services Ltd. (AIMS) Reg. No. 2170173. Allchurches Mortgage Company Ltd. (AMC) Reg. No. 1974218. All companies are registered in England at Beaufort House, Brunswick Road, Gloucester GL1 1JZ UK. Tel: 01452 528533. EIO, ELL, EGAM & AIMS are authorised and regulated by the Financial ServicesAuthority and are members of the Financial Ombudsman Service. EIO & ELL are members of the Association of British Insurers and AIMS is a member of the Investment Management Association.

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© Ecclesiastical Insurance Office plc 2007

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