First Half Review 2016

FIM Capital Limited. Licensed by the Financial Services Authority of the Isle of Man and authorised and regulated by the Financial Conduct Authority. A list of the names of directors and officers of the company is available for inspection at the registered office of the company. Company registered in the Isle of Man No 012651V.

Pound a Day Portfolio, IOMA House, Hope Street, Douglas, Isle of Man, IM1 1AP, British Isles+44 (0) 1624 681250enquiries@fim.co.imwww.poundadayportfolio.com@PAD_Portfolio

Unilever was the strongest contributor with the shares appreciating by 22.3% as strong sales growth offset the impact of price deflation and investors increasingly deemed the shares to be a true safe haven. PZ Cussons also attracted investors’ attention as it reported some decent returns from both its European and Asian markets. Although it has a relatively strong brand name the company commands a market capitalisation of just £1.4bn, a thirtieth of the size of Unilever. Once again Halma performed well as it, along with Sage Group, are the only two stocks held since inception that have appreciated every year, yet investors would struggle to name even one of its brands. Ongoing R&D expenditure along with bolt-on and acquisitions could be identified as a principle driver for its rising share price which, if it continues at the current rate, means it is only a matter of time before it is promoted to the FTSE100 Share Index.

The biggest detractor from the portfolio’s performance was Derwent London, which fell by 28.8% mainly over the last few days of the period, as investors panicked over the Brexit referendum result. Given it was the only UK property company to grow its dividend over the credit crisis and its focus is on central London, we have no concerns over its resilience. As a result of Sterling’s declines, UK commercial property is now some 30% cheaper than at the start of the year and this, we feel, will be enough to wet foreign investor’s appetites.

We made the decision to sell Weir Group when the group announced that it could do nothing more than maintain its full year dividend following an unsustainable strain on revenues due to an extended period of declining oil prices. After collecting the final dividend payment, we exited our position and purchased Whitbread PLC. Whitbread owns several well known international brands, such as Costa Coffee, Premier Inn, and Beefeater Grill, and has consistently grown its annual dividend each year since 1984. The shares have been impacted negatively by the Brexit referendum result but given its strong cash flow and innovative management, we simply see this as an opportunity to buy. Indeed it could even become a takeover candidate or spin–off some part of the group.

Years of Accumulated Dividend GrowthThe Selective Portfolio made modest progress during the first half of 2016, achieving a weighted total return of 1.9% whilst the FTSE 100 appreciated by 6.6% with it mainly being driven by the strong rally in commodity stocks which are absent from the portfolio. We expect periods of underperformance such as these but take considerable comfort that, when they do occur, the dividend flow remains uninterrupted.

Average H1 Price Growth: Average H1 Total Return: Average Yield: -0.15% 1.91% 2.81%

Price Performance: 31 December 2015 - 30 June 2016

(28.84%) (20.65%) (20.26%) (18.64%) (0.70%) (0.37%)

1.70% 3.01% 6.96%

15.41% 17.57% 22.30%

Derwent London Whitbread MITIE AB Foods WPP Croda

SSE Vodafone Sage

PZ Cussons HALMA

Unilever

Total Return Since Inception31 December 2011 - 30 June 2016

Weighted Average Return

HALMA

Serco WPP

-100%

-50%

0%

50%

100%

150%

200%

250%

300%

Dec 11 Feb 12 Apr 12 Jun 12 Aug 12 Oct 12 Dec 12 Feb 13 Apr 13 Jun 13 Aug 13 Oct 13 Dec 13 Feb 14 Apr 14 Jun 14 Aug 14 Oct 14 Dec 14 Feb 15 Apr 15 Jun 15 Aug 15 Oct 15 Dec 15 Feb 16 Apr 16 Jun 16

Whitbread (Interim)

SSE (Final)

Unilever (Interim)

January February March April May June July August September October November December

Vodafone(Interim)

Unilever (Final)

AB Foods (Final)

PZ Cussons(Interim)

Unilever (Interim)

Vodafone (Final)

PZ Cussons(Final)

Derwent London(Interim)

WPP(Interim)

WPP(Final)

Unilever (Interim)

Estimated Yearly Dividend Schedule - Selective

Whitbread (Final)

AB Foods (Interim)

MITIE (Final)

HALMA (Final)

Sage (Final)

HALMA (Interim)

Derwent London (Final)

Sage (Interim)

Croda (Final)

MITIE (Interim)

SSE(Interim)

Croda (Interim)

Full year results to 2nd April 2016 • 11% increase in revenue to £808m, with a favourable impact from currency. • Four acquisitions over the year, including Firetrace USA, a manufacturer of customised fire suppression systems for confined spaces, for £73m and CenTrak Inc, an American maker of digital means of monitoring people and assets in healthcare facilities, for £97m. This is Halma’s largest ever acquisition. • R&D grew by 19% with increased investment through the year, in particular in the Medical sector. Pipeline of new products and increased investment by its businesses reflects strategy to expand their range of products to drive growth. ‘The resilience and diversity of our markets, long-term growth drivers and business model give us confidence that we can continue to grow in today’s varied market conditions.’ – Andrew Williams, Chief Executive Increased final dividend by 7.11% to 7.83p

Price Performance H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound17.57% 25.82% 13.92% 31.37% 39.04% (7.97%) 47.74% 20.00% 327.16%

Past Dividend and Growth Uninterrupted dividend growth since 1973 (Yield 1.22%)2016 2015 2014 2013 2012 2011 2010 2009 Compound12.81p 11.96p 11.17p 10.43p 9.74p 9.1p 8.5p 7.93p 7.11% 7.07% 7.09% 7.08% 7.03% 7.06% 7.19% 5.03% 69.67%HALMA

Half year results to 27th February 2016 • Advertising campaigns helped Twinings Ovaltine grow its market share in the UK, Italy, the US and Australia, whilst Kingsmill also experienced growth in its UK market share supported by strong demand for alternative bakery products. • Reached agreement to buy the remaining 49% of Illovo, Africa’s leading sugar producer. • Primark sales 7% ahead, driven by increased retail selling space as trading was greatly weaker in the weeks leading up to Christmas as a result of unseasonably warm weather across northern Europe ‘These results demonstrate underlying progress for all of our businesses in the period despite currency.’ – George Weston, Chief Executive Increased interim dividend by 3.00% to 10.3p

Price PerformanceH1 2016 2015 2014 2013 2012 2011 2010 2009 Compound(18.64%) 5.99% 28.96% 56.33% 41.28% (6.27%) 43.67% 12.60% 357.81%

Past Dividend and Growth Uninterrupted dividend growth since 1984 (Yield 1.30%)2016 2015 2014 2013 2012 2011 2010 2009 Compound 35.3p 34.3p 32.35p 29.35p 25.35p 24.1p 21.7p 20.4p 2.92% 6.03% 10.22% 15.78% 5.19% 11.06% 6.37% 3.29% 78.73%

Founded in 1935

Founded in 1894

Full year results to 31st December 2015• Acquired two major properties in the Tech Belt for £232m, and invested £116.4m of capital in its projects. • Record year for the group, letting 523,800 sq ft in 79 transactions capturing £27.1m per annum of rental income.• In Q1 2016, began construction of 1 million sq ft development programme. 400,000 sq ft of this is due for completion by the second half of 2017, 57% of which is already pre-let. ‘We are seeing good occupier demand for our properties and our portfolio has significant reversionary potential.’ – John Burns, Chief Executive Increased final dividend by 10.00% to 30.8p

Price Performance H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound(28.84%) 21.67% 20.96% 18.47% 35.00% (0.06%) 18.26% 82.07% 406.48%

Past Dividend and Growth Uninterrupted dividend growth since 1986 (Yield 1.54%)H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound30.8p 40.6p 37.4p 34.5p 31.85p 29.75p 27.6p 24.5p 8.56% 8.41% 8.32% 7.06% 7.79% 12.65% 5.83% 75.38%

Founded in 1913

Full year results to 2nd April 2016 • Excellent growth in Life Sciences, which saw an underlying sales growth of 10.5%. This was driven by growth in high purity excipients for Health Care and excellent sales of Omega 3 active pharmaceutical ingredients. • Profit in Industrial Chemicals recovered after a challenging 2014 with underlying sales growth of 3.4% and a 150% increase in adjusted operating profit, reflecting improved pricing and growth at Croda’s China based industrial markets business, Sipo. • Sederma skin actives business was recognised by the personal care industry and won the ‘25 Years of Innovation’ award for Matrixyl, a popular anti-aging peptide. ‘Our strong innovation pipeline and the benefits of our customer-led investment in capacity mean that we are confident of delivering continued progress in 2016.’ – Steve Foots, Chief Executive. Increased interim dividend by 5.65% to 32.75p

Price PerformanceH1 2016 2015 2014 2013 2012 2011 2010 2009 Compound(0.37%) 14.27% 8.34% 3.41% 31.71% 11.63% 102.00% 53.99% 485.56%

Past Dividend and Growth Uninterrupted dividend growth since 1993 (Yield 2.13%)2016 2015 2014 2013 2012 2011 2010 2009 Compound70.75p 67p 65p 61.75p 57p 50p 24.75p 20.05p 5.60% 3.08% 5.26% 8.33% 14.00% 102.02% 23.44% 17.94% 316.18%

100p Special Dividends

Founded in 1925

Geographic Spread (Revenues)

Emerg

ing M

arkets

6.97

%

Europ

e Inc

. UK

63.58

%

Ameri

cas 1

5.46%

Rest

of W

orld 1

.78%

Asia

13.99

%

Full year results to 31st March 2016• Market leading integrated Facilities Management business accounts for one third of revenues. No major rebids until 2019, underpinning the company’s strong long term prospects. • Property Management Business, accounting for 13% of group revenues, delivered good growth and a substantial margin improvement. • Buoyant sales pipeline of £9.1bn. • Share buyback programme is now lending support to price. ‘Our business model is flexible, resilient, low risk and has proven to be responsive to client needs and market conditions over three decades.’ – Ruby McGregor Smith, Chief Executive Increased final dividend by 3.08% to 6.7p

Trading update for 2016 to 31st May • Performance in Europe and Asia offsetting more difficult trading conditions in Africa, whilst the Group’s financial position remains strong. • All business units in Nigeria, which accounts for 25% of group profits, are selling well despite a challenging macro environment where consumers are affected by inflationary pressures. • All brands in the UK washing and bathing division performed strongly, driven by a continuous programme of renovation and innovation. ‘The strength of our balance sheet gives us the flexibility to further evolve the Group’s portfolio into new areas of growth and to take advantage of new investment opportunities as they arise.’ – Richard Harvey. Increased final dividend by 2.04% to 5.5p

Price Performance H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound15.41% (6.93%) (18.73%) (1.34%) 9.03% (12.65%) 48.41% 66.41% 75.53%

Past Dividend and Growth Uninterrupted dividend growth since 1974 (Yield 2.45%) H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound2.61p 8p 7.76p 7.39p 6.717p 6.61p 5.9p 5.27p 3.09% 5.01% 10.02% 1.62% 12.03% 11.95% 12.13% 70.21%

Price Performance H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound6.96% 29.59% 15.36% 30.40% 0.03% 7.61% 24.27% 29.41% 237.47%

Past Dividend and Growth Uninterrupted dividend growth since 1990 (Yield 1.92%) H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound4.80p 13.10p 12.12p 11.13p 10.15p 9.75p 7.80p 7.43p 8.09% 8.89% 9.66% 4.10% 25.00% 4.98% 3.05% 81.69%

17.1p Special Dividends

Founded in 1987

Founded in 1879

Founded in 1981Half year results to 31st March 2016 • Accelerated software subscription growth to 35.3% (H1 2015: 25.4%).• Customers embracing closer relationships with a 50% increase in subscription contracts.• Increased paying subscriptions for Sage One, the cloud solution for small businesses, by 100% year-on-year to 230,000. ‘Our customers are the entrepreneurs who drive economic growth and prosperity. These entrepreneurs deserve awesome technology that is an enabler to their growth and success.’ –Stephen Kelly, Chief ExecutiveIncreased interim dividend by 7.87% to 4.8p

Price PerformanceH1 2016 2015 2014 2013 2012 2011 2010 2009 Compound(20.26%) 11.91% (12.58%) 20.92% 8.19% 3.76% 1.91% 11.69% 51.15%

Past Dividend and Growth Uninterrupted dividend growth since 1991 (Yield 4.93%) 2016 2015 2014 2013 2012 2011 2010 2009 Compound12.1p 11.7p 11p 10.3p 9.6p 9p 8.8p 6.9p 3.42% 6.36% 6.80% 7.29% 6.67% 2.27% 27.54% 15.00% 101.67%

Full year results to 31st March 2016 • With a continued focus on operational efficiency, SSE has also secured over £1bn from its asset disposal programmes. • Operating environment impacted by prevailing commodity prices and intense retail market competition. • Investment and capital expenditure of £1.62bn. This includes the continued progress of the Caithness-Moray electricity transmission link, the largest capital project undertaken by SSE, and the expansion of its renewables portfolio, with 67 MW of new onshore wind commissioned and a further 548 MW in construction, including the Galway Wind Park, Ireland’s largest wind farm. ‘SSE is well-placed to deliver for its customers and its investors alike in the year ahead, and to continue to meet its financial objective of annual dividend growth of at least RPI inflation.’ – Richard Gillingwater, Chairman Increased final dividend by 1.13% to 62.5p

Price PerformanceH1 2016 2015 2014 2013 2012 2011 2010 2009 Compound

1.70% (5.80%) 18.39% (3.39%) 9.84% 5.39% 5.51% (4.60%) 25.55%

Past Dividend and Growth Uninterrupted dividend growth since 1992 (Yield 5.50%)2016 2015 2014 2013 2012 2011 2010 2009 Compound89.4p 88.4p 86.7p 84.2p 80.1p 75p 70p 66p 1.13% 1.96% 2.97% 5.12% 6.80% 7.14% 6.06% 9.09% 47.77%

Founded in 1998

It should be noted that investment involves risk. The price (or value) of investments can go down as well as up (and the investor may not necessarily receive back the original amount invested). When investments are made in overseas securities, movements in exchange rates may have an effect that is unfavourable as well as favourable. Past performance is not necessarily a guide to future performance. Rates of tax are those prevailing at the current time. These are subject to change without prior notice. Any tax reliefs referred to are those currently available and their value depends on the individual circumstances of the investor. Clients should always seek appropriate tax advice from their financial adviser before committing funds for management. The opinions expressed are based on information that we believe to be accurate and reliable. However, these opinions may change without notice. IOMA Fund and Investment Management does not guarantee the timelines, accuracy or suitability of such information in any way and anyone who acts on this information does so entirely at their own risk.

Edited by Michael Craine

Interim

Final

Average year on year dividend growth since 2009: 21.58%

Dividend Per Share (Pence)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

AB Foods Croda Derwent London HALMA MITIE PZ Cussons Sage SSE Unilever Vodafone Whitbread WPP

10

.3p

31

p 12

.6p

4.9

8p

5.4

p

2.6

1p 4.8

p

26

.9p

0.6

40

2

3.6

8p

28

.5p

15

.91

p

25

p

38

p

30

.8p

7.8

3p

5.3

9p

8.6

5p

62

.5p

0.6

04

7.7

7p

61

.85

p

28

.78

p

6.7

p

Full year results to 31st December 2015 • Celebrated thirtieth birthday with a year of strong performance, despite strong currency headwinds in the second half.• Advertising and media investment management were the strongest performing sectors, with revenue up 9.9%. Media investment management delivered double digit growth in all regions and sub-regions, except the UK and the Middle East.• Completed 52 transactions over the year, with 18 of the acquisitions and investments being in new markets. A further 15 acquisitions were made during the first two months of 2016. • Revenue, net sales and profit in the first quarter of 2016 were well above budget and ahead of the same period last year. Increased final dividend by 8.28% to 28.78p

Price PerformanceH1 2016 2015 2014 2013 2012 2011 2010 2009 Compound(0.70%) 16.21% (2.54%) 55.41% 31.46% (14.44%) 29.53% 51.43% 288.32%

Past Dividend and Growth Uninterrupted dividend growth since 1988 (Yield 2.64%) H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound28.78p 42.49p 35.27p 30.27p 25.94p 19.28p 16.25p 15.47p 20.47% 16.52% 16.69% 34.54% 18.65% 5.04% 8.03% 196.72%

Founded in 1871

Full year results to 31st December 2015• Return to growth for Europe, with good volume growth more than offsetting price deflation across markets. Overall underlying sales growth of 4.1%. • Turnover increased by 10% to �53.3 billion, including a positive currency impact. • Weak performance in emerging markets, particularly those dependent on oil and other commodity exports. ‘Our priorities continue to be volume driven growth ahead of our markets, steady improvement in core operating margin and strong cash flow.’ ¬– Paul Polman, Chief ExecutiveIncreased first half dividend by 5.99% to �0.6402

Price Performance H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound22.30% 11.36% 5.88% 4.90% 9.39% 10.19% (1.55%) 26.28% 85.34%

Past Dividend and Growth Uninterrupted dividend growth since 1979 (Yield 2.79%) H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound€ 0.64 € 1.19 € 1.12 € 1.05 € 0.95 € 0.88 € 0.82 € 0.78 5.96% 7.05% 10.06% 8.04% 7.81% 5.00% 2.63% 56.71%

Full year results to 31st March 2016 • Completed Project Spring, delivering on almost all major targets initially outlined in 2013. This includes 87% 4G coverage in Europe, and 91% coverage for data sessions of 3Mbps or more. • Although take-up is rapid, only 27% of European customer base has taken a 4G service, provide substantial opportunity for future growth. • Announced 50:50 Joint Venture in the Netherlands with Ziggo. Combining Ziggo’s broadband network with Vodafone’s mobile operations will create a strong fixed and mobile competitor in the Dutch market. Expected cost of �3.5bn and will close around the end of 2016. ‘I am confident we will sustain positive momentum in the coming year, allowing us to maintain attractive returns for our shareholders.’ – Vittorio Colao, Chief ExecutiveIncreased final dividend by 1.97% to 7.77p

Full year results to 3rd March 2016• Premier Inn grew total sales by 12.9% and the number of rooms available by 9.8%, with a record 5,461 new UK rooms opened in the year. Total occupancy remained high at 80.9%. • Costa’s underlying profit grew 15.8% to £153.5 million, with total sales growth of 15.9%.• Good profit growth contributed to a strong uplift of 9.5% in cash from operations, supporting the company’s capital investment programme, which was £724.9 million for 2015/16. ‘I am especially keen to reinforce our relentless focus on our customers and on innovation to develop our brand propositions ensuring we stay ahead and become more productive.’ – Alison Brittain, Chief Executive Increased final dividend by 8.60% to 61.85p

Price Performance H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound(20.65%) (7.74%) 27.17% 53.29% 56.46% (12.63%) 26.86% 53.87% 379.93%

Past Dividend and Growth Uninterrupted dividend growth since 1984 (Yield 2.37%) 2016 2015 2014 2013 2012 2011 2010 2009 Compound90.35p 82.15p 68.8p 57.4p 51.25p 44.5p 38p 36.55p 9.98% 19.40% 19.86% 12.00% 15.17% 17.11% 3.97% 1.53% 150.97%

Founded in 1930

Founded in 1991

Founded in 1742

Price Performance H1 2016 2015 2014 2013 2012 2011 2010 2009 Compound3.01% (0.74%) (24.60%) 53.45% (13.67%) 7.90% 15.38% 3.38% 27.61%

Past Dividend and Growth Uninterrupted dividend growth since 1991 (Yield 4.92%) 2016 2015 2014 2013 2012 2011 2010 2009 Compound11.45p 11.22p 11p 10.19p 9.52p 8.9p 8.31p 7.77p 2.05% 2.00% 7.95% 7.04% 6.97% 7.10% 6.95% 3.46% 52.46%