HBOS (ICVC Name) ICVC Accounts - 31Mar17reference.scottishwidows.co.uk/docs/49134.pdf · HBOS...

HBOS International Investment Funds ICVC Annual Report and Financial Statements

for the year ended 31 March 2017

INVESTMENTS.

Investments

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49134

HBOS (SW)

HBOS International Investment Funds ICVC - 2016 Long Report

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HBOS International Investment Funds ICVCAnnual Report and Financial Statementsfor the year ended 31 March 2017

ContentsIntroduction* 1

Director's Report and Statement* 2

Independent Auditors' Report 9

Statement of the Authorised Corporate Director's (ACD's) Responsibilities 11

11

European Fund 12

Far Eastern Fund 34

International Growth Fund 60

Japanese Fund 85

North American Fund 104

Notes to the Financial Statements 124

Distribution Tables 150

Additional Information* 155

*Collectively, these comprise the Authorised Corporate Director's Report.

Statement of the Depositary's Responsibilities and Report of the Depositary

Investment markets overview*, Comparative table, Material portfolio changes*, Portfolio statement*, Securities FinancingTransactions (SFT) and Financial statements:


Introduction

Annual Report and Financial Statements

About the Company

The five Funds which were launched on 3 November 2000 following the conversion of five existing unit trusts, are:

European FundFar Eastern FundInternational Growth FundJapanese FundNorth American Fund

We are pleased to present the Annual Report and Financial Statements for the HBOS International Investment Funds ICVC (“the Company”) for the year ended31 March 2017. The financial statements have been prepared on an individual basis for all Funds as permitted by the Financial Conduct Authority's (''the FCA'')Collective Investment Schemes Sourcebook (“the COLL Sourcebook”).

As required by the COLL Sourcebook, information for each of the five Funds has also been included.

The HBOS International Investment Funds ICVC is an Open-Ended Investment Company (“OEIC”) with variable capital incorporated in England and Walessince 27 September 2000 and authorised by the Financial Conduct Authority “the FCA” (previously the Financial Services Authority “the FSA”) with effect from18 September 2000. The Company is managed by HBOS Investment Fund Managers Limited, the Authorised Corporate Director (“the ACD”), who isresponsible for the day to day running of the Company including the preparation of interim and annual reports. The property of the Company is entrusted toState Street Trustees Limited (“the Depositary”).

The objective of the Company is to invest the Scheme Property in transferable securities, money market instruments, cash and near cash, Derivatives andforward transactions, deposits and units (as defined in the COLL Sourcebook) of collective investment schemes in accordance with the COLL Sourcebook, withthe aim of spreading investment risk and giving its Shareholders the benefit of the results of the management of that property. The Shareholders are not liablefor the debts of the Company.

The Company is a UCITS scheme operating in accordance with the COLL Sourcebook and is structured as an umbrella company, as defined in theOpen-Ended Investment Company Regulations 2001 (“the OEIC Regulations”), in that it currently contains five Funds, each with different investmentobjectives. New Funds may be established from time to time by the ACD with the approval of the FCA. Within the financial statements there is an investmentreview for each Fund as at 31 March 2017, which includes details of the investment objectives.

1

Director's Report and Statement

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Director's Report

HBOS Investment Fund Managers Limited is the Authorised Corporate Director (“the ACD”) and Registrar for the HBOS International Investment FundsICVC. HBOS Investment Fund Managers Limited is authorised and regulated by the Financial Conduct Authority (“the FCA”). The ACD is the soledirector.

The HBOS International Investment Funds ICVC is an Open-Ended Investment Company with variable capital under Regulation 12 (Authorisation) of theOpen-Ended Investment Companies Regulations 2001. It is a UCITS scheme and is structured as an umbrella scheme with five Funds. The shareholdersare not liable for any debts of the Company.

The assets of each Fund are separate from those of every other Fund and are invested in accordance with the investment objective and investment policyapplicable to that Fund. The investment objective for each of the five Funds, together with the ACD's policy for achieving those objectives and a review ofthe investment activities during the year, is set out in the respective investment market overview in this report.

The assets of each Fund belong exclusively to that Fund and shall not be used or made available to discharge (directly or indirectly) the liabilities of, orclaims against, any other person or body, including the Company and any other Fund and shall not be available for such purpose.

Whilst the provisions of the OEIC Regulations provide for segregated liability between Funds, the concept of segregated liability is relatively new.Accordingly, where claims are brought by local creditors in foreign courts or under foreign law contracts, it is not yet known whether a foreign court wouldgive effect to the segregated liability and cross-investments provisions contained in the OEIC Regulations. Therefore, it is not possible to be certain thatthe assets of a Fund will always be completely insulated from the liabilities of another Fund of the Company in every circumstance.

New Funds may be established from time to time by the ACD with the approval of the FCA and Depositary.

The ultimate parent undertaking of the ACD is Lloyds Banking Group plc.

The statement of the ACD's Responsibilities is set out on page 11 of this report. The names and addresses of the ACD, the Depositary, the InvestmentAdviser, the Registrar and the Auditors can be found on page 155 of this report.

During the year there have been a number of changes to the Company. These changes are detailed below in the section Prospectus changes.

With effect from 17 August 2016, we have revised the investment objective and policy of the European Fund, Far Eastern Fund, International GrowthFund, Japanese Fund and North American Fund (each a Fund) in order to clarify each Fund’s investment strategy. The changes to the description ofthe investment objective and policy of the Funds are intended to give greater clarity to investors on how the Funds are managed.

European Fund

The investment objective of the Fund has been updated to make it clear that the Fund will invest predominantly in European companies excluding theU.K. while seeking to deliver performance over the long term, before deduction of management fees, in excess of the MSCI Europe ex UK Index with asimilar level of overall volatility.

Prospectus changes

During the year and up to the date of this report, the following changes were made to the Company and therefore the following changes were reflected inthe Prospectus of HBOS International Investment Funds ICVC:

A letter dated 19 February 2016 was sent from the ACD to the shareholders of the Company notifying them of the intention to close the ScottishWidows Share Class 1 and with effect from 26 May 2016 these Share Classes were removed from the Prospectus of the Company.

The investment policy of the Fund now makes it clear that the Fund will seek to achieve its objective by investing predominantly in a portfolio ofcompanies which are part of the MSCI AC Asia Pacific ex Japan Index, which will involve investing in equities and may also involve investing inequity-linked securities being depositary receipts and derivatives. The updated policy also makes it clear that there is limited scope for the Fund totake positions away from the MSCI AC Asia Pacific ex Japan Index, which means there are limitations on the extent to which the Fund’s investment invarious sectors may differ to the MSCI AC Asia Pacific ex Japan Index. These limited positions can be more than is held in the MSCI AC Asia Pacificex Japan Index (overweight) or less than is held in the MSCI AC Asia Pacific ex Japan Index (underweight).

Derivatives may also be used for effective portfolio management.

The investment policy of the Fund now makes it clear that the Fund will seek to achieve its objective by investing predominantly in a portfolio ofcompanies which are part of the MSCI Europe ex UK Index. The updated policy also makes it clear that there is limited scope for the Fund to takepositions away from the MSCI Europe ex UK Index, which means there are limitations on the extent to which the Fund’s investment in various sectorsmay differ to the MSCI Europe ex UK Index. These limited positions can be more than is held in the MSCI Europe ex UK Index (overweight) or lessthan is held in the MSCI Europe ex UK Index (underweight).

Far Eastern Fund

The investment objective of the Fund has been updated to make it clear that the Fund will invest predominantly in Far Eastern companies excludingJapanese companies while seeking to deliver performance over the long term, before deduction of management fees, in excess of the MSCI AC AsiaPacific ex Japan Index with a similar level of overall volatility.

2

Director's Report and Statement (continued)


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North American Fund

The Remuneration Policy is designed to ensure that the ACD’s remuneration practices are:

- consistent with and promote sound and effective risk management;- provide a clear link between pay and performance;

The investment objective of the Fund has been updated to make it clear that the Fund will invest predominantly in North American companies whileseeking to deliver performance over the long term, before deduction of management fees, in excess of the S&P 500 Index with a similar level ofoverall volatility.

The investment policy of the Fund now makes it clear that the Fund will seek to achieve its objective by investing predominantly in a portfolio ofcompanies which are part of the S&P 500 Index. The updated policy also makes it clear that there is limited scope for the Fund to take positions awayfrom the S&P 500 Index, which means there are limitations on the extent to which the Fund’s investment in various sectors may differ to the S&P 500Index. These limited positions can be more than is held in the S&P 500 Index (overweight) or less than is held in the S&P 500 Index (underweight).

We have also decided to reduce the annual management charge in respect of the Class C share class of all Funds from 1.5% to 1.35%. All of theabove changes to each Fund were implemented with effect from 17 August 2016.

The investment policy of the Fund now makes it clear that the Fund will seek to achieve its objective by investing predominantly in a portfolio ofcompanies which are part of the MSCI Japan Index, which will involve investing in equities and may also include derivatives. The updated policy alsomakes it clear that there is limited scope for the Fund to take positions away from the MSCI Japan Index, which means there are limitations on theextent to which the Fund’s investment in various sectors may differ to the MSCI Japan Index. These limited positions can be more than is held in theMSCI Japan Index (overweight) or less than is held in the MSCI Japan Index (underweight).

Derivatives may also be used for effective portfolio management.

- include fixed and variable components of remuneration including salaries and discretionary pension benefits (although the policy is not to offerdiscretionary pension benefits).

The ACD considers the Remuneration Policy to be appropriate to the size, internal organisation and the nature, scope and complexity of the ACD’sactivities.

With effect from 17 August 2016, the Prospectus was updated to include details of our Remuneration Policy in accordance with the requirements ofSYSC 19E of the FCA Handbook (UCITS Remuneration Code). These updates include a description of how remuneration and benefits are calculated,the identities of the persons responsible for awarding remuneration and benefits and the composition of the remuneration committee.

- attract and retain staff of the highest calibre;- do not encourage risk taking and are consistent with the risk profiles, the trust deed or Prospectus of the UCITS funds it manages;- do not impair the ACD’s compliance with its duty to act in the best interests of those funds; and

Japanese Fund

International Growth Fund

The investment objective of the Fund has been updated to make it clear that the Fund seeks to deliver performance over the long term, beforededuction of management fees, in excess of a blended return of the MSCI World Index and the MSCI Emerging Markets Index with a similar level ofoverall volatility.

The investment objective of the Fund has been updated to make it clear that the Fund seeks to deliver performance over the long term, beforededuction of management fees, in excess of the MSCI Japan Index with a similar level of overall volatility.

Director's Report (continued)

The investment policy of the Fund now makes it clear that the Fund will seek to achieve its objective by investing predominantly in a portfolio ofcompanies which are part of the MSCI World Index and the MSCI Emerging Markets Index. Of the two indices, the Fund will invest almost exclusivelyin companies that are part of the MSCI World Index. This will involve investing in equities and may also involve investing in equity-linked securitiesbeing depositary receipts, warrants and preference shares. The updated policy also makes it clear that there is limited scope for the Fund to takepositions away from the a the MSCI World Index and the MSCI Emerging Markets Index, which means there are limitations on the extent to which theFund’s investment in various sectors may differ to the MSCI World Index and the MSCI Emerging Markets Index. These limited positions can be morethan is held in the MSCI World Index and the MSCI Emerging Markets Index (overweight) or less than is held in the MSCI World Index and the MSCIEmerging Markets Index (underweight).

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Holdings in other Sub-Funds of the Company

Quantitative remuneration disclosure

Senior management

Risk takers Control staff Other members

of staff with material impact

Total

£1,616,468 £1,042,144 £1,408,088 £0 £4,066,700£958,761 £1,133,494 £1,041,628 £0 £3,133,883

n/a n/a n/a n/a n/a£2,575,229 £2,175,638 £2,449,716 £0 £7,200,583

7 6 9 0 22

As at 31 March 2017 there were no shares in sub-funds of the HBOS International Investment Funds ICVC held by other sub-funds of the Company.

With effect from 20 February 2017, the ACD created new Class P, Class Q and Class R share classes with a lower annual management charge to bemade available for (a) certain top-ups made by holders of shares in Classes C, F and G of the sub-funds of the Company; and (b) new subscriptionsinto such funds.

The Prospectus of the Company has been updated to explain that we will no longer produce short reports for the Funds which were previously issuedtwice a year.

The Instrument and Prospectus of the Company were updated to implement these changes with effect from 20 February 2017.

Remuneration disclosure

The Undertakings for Collective Investment in Transferable Securities V (UCITS V) Directive requires the annual report of UCITS funds to contain aremuneration disclosure. The requirements include disclosing the total amount of remuneration paid by the UCITS fund providers to its staff for thefinancial year, split into fixed and variable remuneration.

This section provides an analysis of remuneration awards made by Lloyds Banking Group (‘the Group’) to its UCITS Identified Staff, together with anexplanation of the Group’s remuneration policies, structure and governance.

Up-to-date details of the Remuneration Policy are available to be viewed at the following location:http://reference.scottishwidows.co.uk/docs/groupremun.pdf.

Aggregate Remuneration paid for the year ended 31 December 2016 to senior management and members of staff whose actions have a material

impact on the risk profile of the UCITS (Identified Staff)*1

Number of Identified Staff*2

TOTALCarried interestVariable remunerationFixed remuneration

* 1 Excludes contractors as well as colleagues who receive remuneration in respect of their normal professional Group activities only and do not receiveany remuneration specifically in relation to UCITS activities. There are 8 additional individuals falling into this category for 2016.

* 2 For the first year of disclosure additional remuneration detail regarding colleagues who have not been categorised as Identified Staff but haveresponsibilities relating to the investment of the UCITS funds is not provided. The detail will be included for the 2017 remuneration disclosure.

The Conversions only apply for certain impacted shareholders whose investment product(s) were arranged and advised via a Lloyds Banking Groupauthorised representative.

As part of its Smarter Consumer Communications initiative, the Financial Conduct Authority (FCA) has now removed the requirement for firms such asthe ACD to prepare and issue short reports. Investors in the Company will therefore no longer receive short reports and the references to shortreports have been removed from the Prospectus of the Company. You can contact us for copies of the interim or annual Long Reports. These areavailable free of charge and can also be downloaded from our website at www.scottishwidows.co.uk/reportandaccounts

A copy of the Prospectus is available on request.

Important information

For the purposes of backdating a reduction in charges for top-ups made to certain sub-funds of the Company between 1 October 2012 and 19February 2017, the Instrument and Prospectus of the Company will be amended with effect from 1 June 2017 to include a power to effect acompulsory conversion of certain shares issued between 1 October 2012 and 31 May 2017 in Classes C, F and G of the sub-funds of the Company, toshares in Classes P, Q and R respectively of such sub-funds (the Conversions).

Up-to-date details of the Remuneration Policy, including but not limited to a description of how remuneration benefits are calculated, are available athttp://reference.scottishwidows.co.uk/docs/groupremun.pdf. The identities of the members of the remuneration committee, together with informationabout membership, meetings and principal matters considered, as well as advice to the remuneration committee, are available in the most recentDirectors’ Remuneration Report, which is available from http://www.lloydsbankinggroup.com/Investors/annual-reports/. Paper copies of thesedocuments will be made available free of charge on request.


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Decision-making process for remuneration policy

External investment adviser fees

The table below is a summary of the annual management fees paid to external investment advisers for investment management services, for the year to31 December 2016, specifically highlighting the proportion of the fees related to the HBOS International Investment Funds ICVC. These fees are paid byHBOS Investment Fund Managers Limited.

62.08%

2.38%

25,6012,859,317HBOS International Investment Funds ICVC

100.00%Total: HBOS Investment Fund Managers Limited

HBOS UK Investment Funds ICVCHBOS Specialised Investment Funds ICVCHBOS Property Investment Funds ICVC

20.06%2.03%

15.41%408,752,926

% of total assetsNet asset value £

Some individuals are subject to more than one regulatory regime, e.g. AIFMD, UCITS V, Solvency II and CRD IV, therefore the enhanced CRD IVregulatory requirements such as clawback apply.

0.42%

Remuneration disclosure (continued)

Quantitative UCITS disclosure

The table below shows the total net asset value of all funds the Identified Staff are responsible for, specifically highlighting the proportion of the assetsrelated to the HBOS International Investment Funds ICVC.

As at 31 December 2016 the assets under management for all funds were as follows:

3,099,517,05183,971,516


Staff shown in the table above are employed by the Group in relation to activities relating to the management of UCITS funds and are subject to the Groupremuneration policy. They also perform other Group activities; no staff are directly employed by the UCITS. The investment management of the UCITS iscarried out by external investment advisers and the fees paid for these services are disclosed in the external investment adviser fees table.

HBOS International Investment Funds ICVCHBOS Actively Managed Portfolio Funds ICVC

20,114,690,152

12,487,670,4944,034,778,165

HBOS UK Investment Funds ICVCHBOS UK & Fixed Interest Investment Funds ICVC*HBOS Specialised Investment Funds ICVCHBOS Property Investment Funds ICVC

Annual management fees paid to external investment advisers for the year to 31 December 2016 were:% of total feesFees £

5,813,685327,935

9,086,793

538,396455,696

HBOS Global Investment Funds ICVC*HBOS Actively Managed Portfolio Funds ICVC

47.56%1.72%

30.43%0.13%

14.96%2.82%

100.00%19,107,423

*Fees are for the period 1 January 2016 to 26 May 2016 as Funds within the HBOS Global Investment Funds ICVC and HBOS UK & Fixed InterestInvestment Funds ICVC closed on 26 May 2016.

Qualitative remuneration disclosure

Total: HBOS Investment Fund Managers Limited

An essential component of the Group’s approach to remuneration is the governance process that underpins it. The Group’s remuneration governancearrangements provide clear oversight and effective management of any potential conflicts of interest, ensuring that remuneration decision processes areconsistent with the Group’s risk appetite. This ensures that the policy is robustly applied and risk is managed appropriately.

The overarching purpose of the Remuneration Committee is to consider, agree and recommend to the Board an overall remuneration policy andphilosophy for the Group that is defined by, supports and is closely aligned to its long-term business strategy, business objectives, risk appetite andvalues and recognises the interests of relevant stakeholders. The Group has a conservative business model characterised by a risk culture founded onprudence and accountability. The remuneration policy and philosophy covers the whole Group, but the Committee pays particular attention to the topmanagement population, including the highest paid employees in each division, those colleagues who perform significant influence functions for the Group and those who could have a material impact on the Group’s risk profile.

The Group has a robust governance framework, with the Remuneration Committee reviewing all compensation decisions for Executive Directors,Senior Management, senior risk and compliance officers, high earners and any other Material Risk Takers (for CRD IV) and Identified Staff (forUCITS/AIFMD and Solvency II). This approach to governance is cascaded through the Group with the Executive Compensation Committee havingoversight for all other employees. Divisional Remuneration Committees, which include independent representation from control functions, provide anadditional layer of governance. Control function employees themselves are assessed and their remuneration determined by the appropriate ControlFunction Director, and oversight is provided by a Functional Remuneration Committee.

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Composition of the Remuneration Committee

The members of the Committee during 2016 were Anita Frew (chair), Lord Blackwell, Alan Dickinson, Dyfrig John (until 11 May 2016), Stuart Sinclair(from 4 January 2016), Anthony Watson and Sara Weller.

For further information about meetings and principal matters considered as well as advice to the Committee please refer to the Directors’ RemunerationReport http://www.lloydsbankinggroup.com/Investors/annual-reports


The Group’s remuneration policy is based on principles which are applicable to all employees within the Group and in particular the principle that thereward package should support the delivery of our strategic aim to be the best bank for customers whilst delivering long-term superior and sustainablereturns to shareholders. It fosters a performance-driven and meritocratic culture, encourages effective risk disciplines and is in line with relevantregulations and codes of best practice. The Group places great importance on ensuring that there is a clear link between remuneration and the Group’sbusiness strategy.

The Remuneration Committee appoints independent consultants to provide advice on specific matters according to their particular expertise. During theyear, Deloitte LLP and Kepler, a brand of Mercer advised the Committee.

Role of the relevant stakeholders

During 2016, the Committee has consulted extensively with a number of shareholders and key stakeholders, such as the Group’s main regulators, thePrudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The Chair of the Remuneration Committee has also met with theGroup’s recognised unions. Formal consultation on the remuneration of Executive Directors is not undertaken with employees.

The Group conducts colleague surveys every six months to measure engagement and culture. The engagement survey includes specific questionsrelating to reward and discussions on the Group’s remuneration approach takes place with union representatives during the annual pay review cycle andon relevant employee reward matters.

Link between pay and performance

The Group’s approach to reward is intended to provide a clear link between remuneration and delivery of its key strategic objectives, supporting the aim ofbecoming the best bank for customers, and through that, for shareholders. To this end, the performance management process has been developed, withthe close participation of the Group’s Risk team, to embed performance measures across the Group’s reward structure which are challenging and reflectGroup and divisional achievement in addition to personal contribution.

The use of a balanced scorecard approach to measure long-term performance enables the Remuneration Committee to assess the performance of theCompany and its senior executives in a consistent and performance-driven way. The Group’s remuneration policy supports the business values andstrategy, based on building long-term relationships with customers and employees and managing the financial consequences of business decisionsacross the entire economic cycle.

The policy is intended to ensure that the Group’s remuneration proposition is both cost effective and enables us to attract and retain individuals of thehighest calibre, motivating them to perform to the highest standards. The objective is to align individual reward with the Group’s performance, the interestsof its shareholders, and a prudent approach to risk management. In this way, the requirements of the Group’s various stakeholders – its customers,shareholders, employees and regulators – are balanced. This approach is in line with the Investment Association’s principles on remuneration, ESMAguidance on remuneration, the PRA Rulebook and the FCA Handbook, as the policy seeks to reward long-term value creation whilst not encouragingexcessive risk-taking.

Long-term incentives are based on stretching performance objectives and targets in the Group Balanced Scorecard. This Balanced Scorecard is derivedfrom the Group’s operating plan which defines the financial and non-financial targets within the agreed risk appetite over a three year period.

In the implementation of the remuneration policy all conflicts of interest must be avoided. Effective remuneration design and independent oversight of boththe policy and related outcomes ensures that conflicts of interest are managed and that appropriate links exist between risk and reward.

Annual incentives are based on stretching financial targets and objectives in divisional/functional Balanced Scorecards which are aligned to the Group’sstrategy.

Design and structure of remuneration processes

Reward is delivered via a combination of fixed and variable remuneration. Taking into account the expected value of awards, the performance-relatedelements of pay make up a considerable proportion of the total remuneration package for Identified Staff, whilst maintaining an appropriate balancebetween the fixed and variable elements.

The overall policy objective is met by a focus on the particular aspects detailed below.

Base salary

Identified Staff receive base salaries which are reviewed annually, taking into account individual performance and market information.

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To ensure that the interests of Lloyds Banking Group and its employees are aligned with those of the shareholders, and that the approach to riskmanagement supports the interests of all stakeholders, a proportion of bonus above certain thresholds is deferred into Lloyds Banking Group Shares. Forall Identified Staff, bonus is deferred in line with the regulatory requirements. This deferred amount is subject to performance adjustment (malus) inaccordance with the Group’s Deferral and Performance Adjustment Policy. The application of performance adjustment will generally be considered when:


Fixed share award

The fixed share award, made annually, delivers Lloyds Banking Group shares over a period of five years. It ensures that total fixed remuneration iscommensurate with the role and provides a competitive reward package, with an appropriate balance of fixed and variable remuneration, in line withregulatory requirements.

Annual bonus

Identified Staff are eligible to be considered for an annual bonus. The annual bonus plan is designed to reflect specific goals linked to the performance ofthe business.

Awards are based upon individual contribution, overall Group results and divisional/functional Balanced Scorecard ratings. Opportunity is driven by Groupperformance based on Underlying Profit, together with divisional/functional achievement and individual performance. Stretching objectives relevant toimproving overall business performance and aligned with the Group’s strategy are contained in Balanced Scorecards and are grouped under the followingheadings: Customer, People, Control Environment, Building the Business and Finance.

The Remuneration Committee reviewed performance in depth to determine ratings for the Group and each division, including consideration of risk mattersarising in 2016. The overall rating for the Group was Strong plus. Collective performance adjustment consideration was given to items not factored into theGroup Underlying Profit or divisional/functional Balanced Scorecards. These included the provisions for legacy conduct-related matters relevant to theyear. As a result of these items, the Remuneration Committee approved an overall adjustment of approximately 19 per cent, resulting in a final bonusoutcome of £392.9 million.

To ensure fairness for our shareholders, the total bonus outcome is subject to a limit of 10 per cent of pre-bonus underlying profit. For 2016, the bonusoutcome of £392.9 million is significantly below the limit of 10 per cent of underlying profit.

Deferral, vesting and performance adjustment

– there is reasonable evidence of employee misbehaviour, misconduct or material error or that they participated in conduct which resulted in losses forthe Group or failed to meet appropriate standards of fitness and propriety;– there is material failure of risk management at a Group, business area, division and/or business unit level;– the Remuneration Committee determines that the financial results for a given year do not support the level of variable remuneration awarded; and/or– any other circumstances where the Remuneration Committee or a Division or Function Remuneration Committee acting on their behalf considersadjustments should be made.

For Identified Staff who are also Material Risk Takers under CRD IV vested variable remuneration can be recovered up to seven years after the date ofaward in the case of a material or severe risk event (clawback). This period may be extended to ten years where there is an ongoing internal or regulatoryinvestigation. The option is used alongside other performance adjustment processes.

The Remuneration Committee reserves the right to exercise its discretion in reducing any payment that otherwise would have been earned, if they deemthis appropriate.

Long-term incentives

From 2017, the long-term incentive plan will be known as the Group Ownership Share plan. It is a core part of the reward strategy and an important toolfor aligning the Group’s reward strategy to the performance of the business. Through the application of carefully considered, stretching target measures,the Group can ensure that awards are forfeited or restricted where performance does not meet the desired level. This directly connects the financialreward for the executive and senior management team with the growth and prosperity of the Group and motivates them to demonstrate appropriatebehaviours across all areas of the business. The Group Ownership Share plan pays out in shares based on performance against Group financial andother non-financial strategic targets over a three year period.

Group Ownership Share plan awards are subject to malus and clawback as outlined in the previous section.

Group Ownership Share plan performance measures

During 2016 the Remuneration Committee consulted widely with various shareholders on the topic of performance measures and sharing the growth inthe Group appropriately between shareholders and management. The awards made in 2017 are based on the Group’s performance against the followingkey measures: Economic Profit (25%), Total Shareholder Return (30%), Cost: Income ratio (10%) and strategic measures (35%). Any shares released aresubject to a further holding period in line with regulatory or market practice.

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Governance and risk management

In addition to setting the overall remuneration policy and philosophy for the Group, the Remuneration Committee ensures that colleagues who could havea material impact on the Group’s risk profile are provided with appropriate incentives and reward to encourage them to enhance the performance of theGroup and that they are recognised for their individual contribution to the success of the organisation, whilst ensuring that there is no reward for excessiverisk taking. The Remuneration Committee works closely with the Risk Committee in ensuring the bonus outcome is moderated. The two Committeesdetermine whether the proposed bonus outcome and performance assessments adequately reflect the risk appetite and framework of the Group; whetherit took account of current and future risks; and whether any further adjustment is required or merited. The Group and the Remuneration Committee aredetermined to ensure that the aggregate of the variable remuneration for all colleagues is appropriate and balanced with the interests of shareholders andall other stakeholders.

The Remuneration Committee’s terms of reference are available from the Company Secretary and are also displayed on the Group’s website,www.lloydsbankinggroup.com. These terms are reviewed each year to ensure continued compliance with the remuneration regulations.


In accordance with the rules in the Collective Investment Schemes Sourcebook as issued and amended by the Financial Conduct Authority, I herebyapprove the report and financial statements on behalf of the Authorised Corporate Director of the HBOS International Investment Funds ICVC.

Sean Lowther

27 July 2017

DirectorHBOS Investment Fund Managers Limited

Director's Statement


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Report on the financial statementsOur opinion

● give a true and fair view of the financial position of the Company and each of the sub-funds as at 31 March 2017 and of the net revenue and the netcapital gains of the scheme property of the Company and each of the sub-funds for the year then ended; and

● have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, the Statement of Recommended Practicefor Authorised Funds, the Collective Investment Schemes Sourcebook and the Instrument of Incorporation.

What we have audited

● the balance sheet as at 31 March 2017;● the statement of total return for the year then ended;● the statement of change in net assets attributable to shareholders for the year then ended;● the summary of significant accounting policies applicable to all sub-funds and notes to the financial statements of individual sub-funds, which include

other explanatory information; and● the distribution tables.

Opinions on matters prescribed by the Collective Investment Schemes Sourcebook

● we have obtained all the information and explanations we consider necessary for the purposes of the audit; and● the information given in the Authorised Corporate Director’s Report for the financial year for which the financial statements are prepared is consistent

with the financial statements.

● proper accounting records have not been kept; or● the financial statements are not in agreement with the accounting records and returns.

As explained more fully in the Statement of the Authorised Corporate Director's Responsibilities set out on page 11, the Authorised Corporate Director isresponsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

In our opinion:

Under the Collective Investment Schemes Sourcebook we are required to report to you if, in our opinion:

We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the auditOur responsibilities and those of the Authorised Corporate Director

Other matters on which we are required to report by exceptionPropriety of accounting records and information and explanations received

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing(UK and Ireland) (“ISAs (UK & Ireland)”). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the Company’s shareholders as a body in accordance with paragraph 4.5.12 of theCollective Investment Schemes Sourcebook as required by paragraph 67(2) of the Open-Ended Investment Companies Regulations 2001 and for noother purpose.

We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or intowhose hands it may come save where expressly agreed by our prior consent in writing.

The financial reporting framework that has been applied in their preparation is United Kingdom Generally Accepted Accounting Practice (United KingdomAccounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and applicable law), theStatement of Recommended Practice ‘Financial Statements of UK Authorised Funds’ issued by the Investment Management Association (the “Statementof Recommended Practice for UK Authorised Funds”), the Collective Investment Schemes Sourcebook and the Instrument of Incorporation.

In applying the financial reporting framework, the Authorised Corporate Director has made a number of subjective judgements, for example in respect ofsignificant accounting estimates. In making such estimates, they have made assumptions and considered future events.

Independent Auditors' Report to the shareholders of HBOS InternationalInvestment Funds ICVC ("the Company")

In our opinion, HBOS International Investment Funds ICVC's financial statements, (the ''financial statements of the Company''):

HBOS International Investment Funds ICVC (the “Company”) is an umbrella fund with a number of sub-funds. The financial statements of the Company,included within the Annual Report comprise the financial statements of each of the sub-funds, which are prepared by HBOS Investment Fund ManagersLimited (the "Authorised Corporate Director"), and comprise for each of the sub-funds:

9


What an audit of financial statements involves

● whether the accounting policies are appropriate to the Company’s and each of the Company’s sub-funds circumstances and have been consistentlyapplied and adequately disclosed;

● the reasonableness of significant accounting estimates made by the Authorised Corporate Director; and ● the overall presentation of the financial statements.

PricewaterhouseCoopers LLPChartered Accountants & Statutory AuditorsEdinburgh27 July 2017

We conducted our audit in accordance with ISAs (UK & Ireland). An audit involves obtaining evidence about the amounts and disclosures in the financialstatements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of:

We primarily focus our work in these areas by assessing the directors’ judgements against available evidence, forming our own judgements, andevaluating the disclosures in the financial statements.

We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for usto draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both.

In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financialstatements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us inthe course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for ourreport.

The maintenance and integrity of the Scottish Widows (www.scottishwidows.co.uk) website is the responsibility of the Authorised Corporate Director; thework carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changesthat may have occurred to the financial statements since they were initially presented on the website.Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Independent Auditors' Report to the shareholders of HBOS InternationalInvestment Funds ICVC ("the Company") (continued)

10


Statement of the Authorised Corporate Director's (ACD's) Responsibilities

● select suitable accounting policies and then apply them consistently;● make judgments and estimates that are reasonable and prudent;● comply with the requirements of the Statement of Recommended Practice relating to the Financial Statements of Authorised Funds issued by the

Investment Management Association in May 2014;● follow generally accepted UK accounting principles and applicable UK accounting standards; and● prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in operation.

● the Company’s cash flows are properly monitored and that cash of the Company is booked into the cash accounts in accordance with the Regulations;● the sale, issue, repurchase, redemption and cancellation of shares are carried out in accordance with the Regulations;● the value of shares of the Company are calculated in accordance with the Regulations;● any consideration relating to transactions in the Company’s assets is remitted to the Company within the usual time limits;● the Company’s income is applied in accordance with the Regulations; and● the instructions of the Authorised Fund Manager (“the AFM”) which is the UCITS Management Company, are carried out (unless they conflict with the

Regulations).

i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Company's shares and the application of theCompany's income in accordance with the Regulations and Scheme documents of the Company, and;

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

Statement and Reports

Statement of the Depositary's Responsibilities in respect of the Scheme and Reports of theDepositary to the Shareholders of the HBOS International Investment Funds ICVC (“theCompany”)

The rules in the Collective Investment Schemes Sourcebook issued by the Financial Conduct Authority ("the FCA") require the ACD to prepare financialstatements for each accounting period which give a true and fair view of the financial position of the Company and of the net revenue and net gains on theproperty of the Company for the year then ended. In preparing the financial statements the ACD is required to:

27 July 2017

The ACD is responsible for keeping proper accounting records and for the management of the Company in accordance with its Instrument ofIncorporation, the Prospectus and the FCA Rules.

The ACD has general responsibility for taking such steps as are reasonably open to it to prevent and detect fraud and other irregularities.

Statement of the Depositary's responsibilities in respect of the Scheme

The Depositary must ensure that the Company is managed in accordance with the Financial Conduct Authority's Collective Investment SchemesSourcebook, the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228), as amended, the Financial Services and Markets Act 2000, asamended, (together "the Regulations"), the Company's Instrument of Incorporation and Prospectus (together "the Scheme documents") as detailed below.

Reports of the Depositary to the shareholders of the HBOS International Investment Funds ICVC (''the Company'') for theyear to 31 March 2017

State Street Trustees Limited

The Depositary is responsible for the safekeeping of all custodial assets and maintaining a record of all other assets of the Company in accordance withthe Regulations.

The Depositary must ensure that:

The Depositary also has a duty to take reasonable care to ensure that Company is managed in accordance with the Regulations and Scheme documentsin relation to the investment and borrowing powers applicable to the Company.

The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the interest of the Company and its investors.

Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the Company, it is our opinion, based onthe information available to us and the explanations provided, that in all material respects the Company, acting through the AFM:

11


European FundInvestment markets overview

Investment objective

Investment policy

UCITS scheme

Synthetic risk and reward profile

1 2 3 4 5 6 7

Investment review

Performance 01/04/16 01/04/15 01/04/14 01/04/13 01/04/12to 31/03/17 to 31/03/16 to 31/03/15 to 31/03/14 to 31/03/13

% % % % %30.32 (4.94) 9.86 18.54 19.84

The Fund would qualify as a UCITS scheme operating under Chapter 5 of the COLL Sourcebook if it were in itself an Open-Ended Investment Companyin respect of which an authorisation order made by the FCA were in force. Not more than 10% of the scheme property may consist of units in collectiveinvestment schemes.

Typically lower rewards,lower risk

Typically higher rewards,higher risk

Source: Financial Express after 1 April 2013, Morningstar for previous years.Basis: Percentage growth, total return Share Class C (gross of annual management charge), published prices at 12.00pm.Past performance is not a guide to future performance. The value of an investment and the revenue from it may go up and down and you may get backless than invested.

The Fund is ranked at 5* because it has experienced medium to high levels of volatility over the past 5 years.

The investment objective of the European Fund is to achieve capital growth in the long term by investing predominantly in European companies excludingthe U.K. The Fund seeks to deliver performance, before deduction of management fees, in excess of the MSCI Europe ex UK Index (the “Index”) with asimilar level of overall volatility, over the long term.

To invest predominantly in a portfolio of companies which are part of the Index.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’sinvestment in various sectors* may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in theIndex (underweight).

Derivatives may be used for efficient portfolio management purposes only.

* A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectorsdepending on the company’s business.

There are several different ways of measuring risk. The table below uses an industry standard measure of fund risk based on measuring a fund's volatilityusing its returns over the past five years. Volatility is generated by both rising and falling prices. Volatility doesn't tell you how much a fund has lost orgained; it indicates how volatile its returns were historically. The Fund's ranking may change over time and may not be a reliable indication of its futurerisk profile.

This is a separate measure to the fund Risk Profiles we used to determine our investment portfolios (where we used our own methodology to take anoverall look at the funds' risks and aims and group our funds into Cautious/Medium, Medium, Medium/Adventurous, Adventurous Profiles).

* As disclosed in the key investor information document dated 14 March 2017.

European Fund

12


European FundInvestment markets overview (continued)

The continued strength of business surveys for Europe suggests that the healthy start to 2017 may stretch into the second quarter. The robust exportgrowth over the final months of 2016 appears to be on track to extend into 2017 and the labour market recovery continues. All this suggests that thesqueeze on household incomes from higher energy prices may result in a more gradual slowdown in consumer spending growth than we had previouslyexpected.

At an asset level, the Fund benefited from its relatively larger (in comparison to the benchmark) position in the Norwegian aluminium supplier, NorskHydro. The increase in the aluminium price over the reporting period caused Norsk Hydro’s share price to soar. The stock had a positive score accordingto our value metrics. The comparatively overweight position in AkzoNobel, the Dutch chemical manufacturer, also helped performance. The company’sshare price rose following an unsolicited takeover proposal from US rival PPG Industries. AkzoNobel scored highly according to our measures of trend.

On the downside, a relatively overweight position in E.ON, Germany’s largest energy company, had a negative influence on returns. Worries that thegroup might face another round of multi-billion euro writedowns due to the falling value of its fossil fuel spinoff caused the share price to fall. E.ON hadregistered a positive score according to our prudent management metrics.

While several countries in Europe were showing signs of discontent with centrist parties and policies at the beginning of the year, the first political event totruly stir up financial markets in 2016 was, of course, the UK’s decision to leave the European Union in June. In Italy, voters rejected constitutional reformin a referendum, forcing the resignation of Prime Minister Matteo Renzi. In mid-March investor sentiment was buoyed by the election results in theNetherlands which were hailed as a rejection of ‘populism’ in the Eurozone. Far-right challenger Geert Wilders was roundly defeated by the incumbentDutch prime minister, Mark Rutte, whose VVD party became the largest in the country’s parliament. Wilders’ downfall was deemed reassuring in the run-up to the French Presidential election.

In February, Germany was confirmed as the world’s fastest-growing advanced economy, publishing figures that showed it grew by 1.9% over 2016.Germany also posted its highest budget surplus since reunification in 1991, an enviable €23.7 billion. The figure was boosted by record lowunemployment and very cheap debt finance, a happy by-product of the European Central Bank’s extensive bond-buying programme.

European equities made gains over the 12 months. At the country level, Spain and Norway performed particularly well in local currency terms, whileGreece and Denmark lagged behind. In terms of sectors, oil & gas and industrials outpaced the other areas of the market, while telecoms and consumerservices disappointed. Returns for UK-based investors were boosted slightly by sterling’s decline against the euro in the aftermath of the Brexit vote.

April 2017Aberdeen Asset Investments Limited

Investment review (continued)

13

Annual Report and Financial Statementsfor the year ended 31 March 2017

Comparative table

Share Class A

Change in net assets per shareOpening net asset value per shareReturn before operating charges*Operating chargesReturn after operating charges*Distributions on income sharesClosing net asset value per share

*after direct transaction costs of:~

PerformanceReturn after charges

Other informationClosing net asset value (£’000)Closing number of sharesOperating charges#Direct transaction costs~

PricesHighest share priceLowest share price

Share Class C

Change in net assets per shareOpening net asset value per shareReturn before operating charges*Operating chargesReturn after operating charges*DistributionsRetained distributions on accumulation sharesClosing net asset value per share


PerformanceReturn after charges^



31/03/17(p)

31/03/16(p)

31/03/15(p)

60.63 55.99 54.30

~Direct transaction costs are stated after deducting the proportion of the amounts collected from dilution adjustments that relate to direct transaction costsas permitted by the IMA SORP 2014.#Operating charges are representative of the ongoing charges figure.^The return after charges figure is calculated as the return after operating charges per share divided by the opening net asset value per share. This isdifferent to the performance return stated in the Investment Market Review which is sourced from Financial Express and based on daily published prices.The annual management charge for Share Class C was reduced from 1.50% to 1.35% with effect from 17 August 2016.

0.03% 0.01% 0.01%

81.75 68.95 68.11

4,592,000 5,307,000 5,797,0001.42% 1.56% 1.57%

28.51% (5.98%) 8.62%

3,711 3,337 3,877

80.81 62.88 66.88

0.02 0.01 0.01

(1.61) (0.72) (1.33)1.61 0.72 1.33

(1.00) (0.99) (0.96)17.93 (4.00) 5.31

62.88 66.88 61.5718.93 (3.01) 6.27

HBOS International Investment Funds ICVC

286.40 243.70 247.40211.80 199.60 196.70

0.50% 0.50% 0.50%0.03% 0.01% 0.01%

10,528 11,76612,439

219.62 236.33

0.07 0.02 0.02

4,493,530 4,793,530 4,978,530

63.61 (11.80) 21.20

28.96% (4.99%) 9.56%

276.81

64.85 (10.67) 22.31(1.11)

~Direct transaction costs are stated after deducting the proportion of the amounts collected from dilution adjustments that relate to direct transaction costsas permitted by the IMA SORP 2014.#Operating charges are representative of the ongoing charges figure.

(1.24) (1.13)

European Fund

31/03/17(p)

31/03/16(p)

31/03/15(p)

(6.42) (4.91) (6.67)

219.62 236.33 221.80

14


Comparative table (continued)


European Fund

Share Class F






Share Class G





PricesHighest share priceLowest share price 31.17 28.74 27.73


0.03% 0.01% 0.01%

42.06 35.24 34.80

7,684,000 9,939,000 340,049,0001.04% 1.03% 1.05%

29.23% (5.97%) 9.00%

3,190 3,193 116,189

0.01 - -

1.03 0.36 0.7941.52 32.13 34.17

9.39 (2.04) 2.82(1.03) (0.36) (0.79)

32.13 34.17 31.359.77 (1.71) 3.16

(0.38) (0.33) (0.34)

31/03/17(p)

31/03/16(p)

31/03/15(p)

30.51 28.16 27.22


0.03% 0.01% 0.01%

40.97 34.59 34.17

6,024,000 6,639,000 6,989,0001.29% 1.29% 1.29%

28.07% (5.72%) 8.86%

2,440 2,100 2,345

40.51 31.63 33.55

0.01 - -

(0.67) (0.45) (0.74)0.67 0.45 0.74

(0.46) (0.41) (0.40)8.88 (1.92) 2.73

31.63 33.55 30.829.34 (1.51) 3.13

31/03/17(p)

31/03/16(p)

31/03/15(p)

15




European Fund

Share Class I




Other informationClosing net asset value (£’000)Closing number of sharesOperating charges#∆Direct transaction costs~


Share Class P□





PricesHighest share priceLowest share price 98.41

~Direct transaction costs are stated after deducting the proportion of the amounts collected from dilution adjustments that relate to direct transaction costsas permitted by the IMA SORP 2014.#Operating charges are representative of the ongoing charges figure.□Share class launched 21 February 2017.

0.03%

105.50

20,0000.88%

4.35%

21

0.03

0.34104.28

4.35(0.34)

99.935.30

(0.95)

31/03/17(p)

212.30 200.90 197.60

~Direct transaction costs are stated after deducting the proportion of the amounts collected from dilution adjustments that relate to direct transaction costsas permitted by the IMA SORP 2014.#Operating charges are representative of the ongoing charges figure.∆Fees are payable by institutional investors in this share class to the ACD outside the Fund.

0.03% 0.01% 0.01%

288.20 244.20 248.80

130,203,612 139,998,612 149,948,6120.00% 0.00% 0.00%

29.54% (4.53%) 10.00%

361,292 308,054 355,122

0.07 0.02 0.02

277.48 220.04 236.83

65.00 (10.74) 22.22(7.56) (6.05) (7.57)

220.04 236.83 222.1865.00 (10.73) 22.22

- (0.01) -

31/03/17(p)

31/03/16(p)

31/03/15(p)

16




European Fund

Share Class Q□






Share Class R□





PricesHighest share priceLowest share price 98.41


0.03%

105.50

25,0000.53%

4.39%

26

0.03

0.37104.32

4.39(0.37)

99.934.98

(0.59)

31/03/17(p)

98.41


0.03%

105.50

25,0000.78%

4.36%

26

0.03

0.35104.29

4.36(0.35)

99.935.23

(0.87)

31/03/17(p)

17




European Fund

Share Class SW1**

Change in net assets per shareOpening net asset value per shareReturn before operating charges*Operating chargesReturn after operating charges*DistributionsRetained distributions on accumulation sharesReturn to shareholder as a result of class closureClosing net asset value per share




PricesHighest share priceLowest share price 97.15 89.60 86.40

~Direct transaction costs are stated after deducting the proportion of the amounts collected from dilution adjustments that relate to direct transaction costsas permitted by the IMA SORP 2014.#Operating charges are representative of the ongoing charges figure.**Share class closed 26 May 2016.

0.03% 0.01% 0.01%

104.39 109.90 108.50

- 55,000 55,000- 1.06% 1.06%

- (5.50%) 9.06%

- 55 58

0.03 0.01 0.01

- 1.66 2.50(100.70) - -

- 100.69 106.55

0.01 (5.86) 8.85- (1.66) (2.50)

100.69 106.55 97.700.01 (4.80) 9.88

- (1.06) (1.03)

31/03/17(p)

31/03/16(p)

31/03/15(p)

18


European FundMaterial portfolio changes

Cost ProceedsMajor purchases £'000 Major sales £'000 Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊# 43,839 Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊# 48,121EURO STOXX 50 Index Futures September 2016 22,032 EURO STOXX 50 Index Futures June 2016 36,023EURO STOXX 50 Index Futures March 2017 20,268 EURO STOXX 50 Index Futures September 2016 23,065EURO STOXX 50 Index Futures December 2016 19,922 EURO STOXX 50 Index Futures March 2017 21,074EURO STOXX 50 Index Futures June 2016 18,601 EURO STOXX 50 Index Futures December 2016 20,552EURO STOXX 50 Index Futures June 2017 7,216 Heineken (Amsterdam Listing) 2,858Total 4,754 Actelion 2,721Bayer 3,567 SAP 2,373Repsol 3,286 Heineken (London Listing) 2,342Koninklijke DSM 3,073 TeliaSonera 2,259

Purchases and sales of Futures have been included at the value of their exposure.

#With effect from 18 July 2016 holding moved from Aberdeen Global Liquidity Sterling Fund Advisory to Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 ◊Asset managed by the Fund's Investment Adviser.

19


HoldingMarket Value

£'000% of

Net AssetsAUSTRIA (0.81%, 31/03/2016 0.76%)FinancialsImmoeast** 34,709 - 0.00

- 0.00

IndustrialsAndritz 33,127 1,357 0.36

1,357 0.36

Oil & GasOMV 54,816 1,735 0.45

1,735 0.45

TOTAL AUSTRIA 3,092 0.81

BELGIUM (1.24%, 31/03/2016 2.60%)Basic MaterialsSolvay 3,524 343 0.09Umicore 4,464 203 0.05

546 0.14

Consumer GoodsAnheuser-Busch InBev 22,238 1,947 0.51

1,947 0.51

Consumer ServicesColruyt 2,031 79 0.02

79 0.02

FinancialsAgeas 25,468 796 0.21KBC 21,875 1,153 0.30

1,949 0.51

TelecommunicationsProximus 8,620 217 0.06

217 0.06

TOTAL BELGIUM 4,738 1.24

DENMARK (3.21%, 31/03/2016 4.68%)Consumer GoodsCarlsberg 27,391 2,026 0.53Pandora 863 76 0.02

2,102 0.55

FinancialsDanske Bank 28,757 788 0.20

788 0.20

Health CareGenmab 124 19 0.00Novo Nordisk 'B' Shares 142,139 3,936 1.03Novozymes 'B' Shares 20,177 639 0.17

4,594 1.20

IndustrialsDSV 33 1 0.00ISS 65,818 1,993 0.52Vestas Wind Systems 31,384 2,058 0.54

4,052 1.06

European FundPortfolio statement as at 31 March 2017

20


HoldingMarket Value

£'000% of

Net Assets

European FundPortfolio statement (continued)as at 31 March 2017

DENMARK (continued)TelecommunicationsTDC 184,592 766 0.20

766 0.20

TOTAL DENMARK 12,302 3.21

FINLAND (2.25%, 31/03/2016 1.84%)Basic MaterialsStora Enso 110,296 1,041 0.27UPM-Kymmene 203,375 3,850 1.01

4,891 1.28

Health CareOrion 18,457 771 0.20

771 0.20

IndustrialsKone 160 5 0.00Metso 36,785 890 0.23

895 0.23

Oil & GasNeste 65,895 2,054 0.54

2,054 0.54

TOTAL FINLAND 8,611 2.25

FRANCE (23.14%, 31/03/2016 19.76%)Basic MaterialsAir Liquide 827 75 0.02Arkema 11,099 876 0.23Imerys 3,169 213 0.06

1,164 0.31

Consumer GoodsChristian Dior 24,756 4,575 1.19Cie Generale des Etablissements Michelin 45,290 4,341 1.13Danone 74,050 4,008 1.05Hermes International 125 47 0.01L'Oreal 19,036 2,919 0.76LVMH Moet Hennessy Louis Vuitton 10,974 1,906 0.50Pernod Ricard 2,359 222 0.06Peugeot 175,818 2,834 0.74Renault 34,235 2,370 0.62Valeo 43,639 2,320 0.61

25,542 6.67

Consumer ServicesCarrefour 13,976 263 0.07Casino Guichard Perrachon 21,594 958 0.25Eutelsat Communications 23,283 416 0.11Kering 13,474 2,785 0.73Lagardere 2,713 63 0.02Publicis 19,162 1,067 0.28Sodexo 17,565 1,647 0.43Vivendi 115,733 1,799 0.47

8,998 2.36

21


HoldingMarket Value

£'000% of

Net Assets


FRANCE (continued)FinancialsAXA 195,376 4,038 1.05BNP Paribas 93,499 4,928 1.29CNP Assurances 5,652 93 0.02Credit Agricole 108,841 1,175 0.31Gecina* 3,627 386 0.10SCOR 29,424 889 0.23Societe Generale 81,911 3,296 0.86Unibail-Rodamco* 2,531 470 0.12

15,275 3.98

Health CareEssilor International 17,057 1,654 0.43Sanofi 94,933 6,857 1.79

8,511 2.22

IndustrialsCie de Saint-Gobain 33,959 1,381 0.36Legrand 5,991 288 0.08Safran 40,289 2,392 0.62Schneider Electric 70,125 4,067 1.06Thales 15,833 1,222 0.32Vinci 38,284 2,416 0.63

11,766 3.07

Oil & GasTotal 181,554 7,296 1.90

7,296 1.90

TechnologyAtoS 35,179 3,456 0.90Capgemini 28,775 2,116 0.55Dassault Systemes 6,406 443 0.12Ingenico 10,587 796 0.21

6,811 1.78

TelecommunicationsOrange 255,350 3,158 0.82

3,158 0.82

UtilitiesElectricite de France 17,594 118 0.03Veolia Environnement 390 6 0.00

124 0.03

TOTAL FRANCE 88,645 23.14

GERMANY (19.97%, 31/03/2016 18.31%)Basic MaterialsBASF 37,640 3,004 0.78Bayer 95,199 8,773 2.29Covestro 40,276 2,461 0.64Evonik Industries 64,396 1,682 0.44Fuchs Petrolub Preference Shares 9,521 372 0.10LANXESS 33,648 1,811 0.47Linde 23,630 3,177 0.83

21,280 5.55

22


HoldingMarket Value

£'000% of

Net Assets


GERMANY (continued)Consumer Goodsadidas 19,731 3,007 0.78Bayerische Motoren Werke 22,001 1,607 0.42Bayerische Motoren Werke Preference Shares 15,572 980 0.26Continental 15,001 2,635 0.69Daimler 38,302 2,266 0.59Henkel 16,035 1,431 0.37Henkel Preference Shares 18,096 1,861 0.49Volkswagen Preference Shares 11,098 1,297 0.34

15,084 3.94

Consumer ServicesDeutsche Lufthansa 143,611 1,855 0.48METRO 36,776 941 0.25ProSiebenSat.1 Media 1,884 66 0.02

2,862 0.75

FinancialsAllianz 34,123 5,046 1.32Deutsche Bank 5,810 79 0.02Deutsche Bank Rights 06/04/2017 5,810 11 0.00Deutsche Wohnen 75,967 1,996 0.52Hannover Rück 15,617 1,441 0.38Muenchener Rueckversicherungs 13,172 2,073 0.54Vonovia 40,437 1,134 0.30

11,780 3.08

Health CareFresenius 40,799 2,621 0.68Fresenius Medical Care 17,889 1,212 0.32Merck 11,990 1,097 0.29

4,930 1.29

IndustrialsDeutsche Post 41,076 1,121 0.29Fraport AG Frankfurt Airport Services Worldwide 16,761 949 0.25GEA 11,889 401 0.10HeidelbergCement 1,634 122 0.03HOCHTIEF 5,319 700 0.18Siemens 69,823 7,594 1.98

10,887 2.83

TechnologyInfineon Technologies 118,574 1,949 0.51SAP 33,992 2,660 0.69

4,609 1.20

TelecommunicationsDeutsche Telekom 218,239 3,052 0.80Telefonica Deutschland 7,035 28 0.01

3,080 0.81

UtilitiesE.ON 292,002 1,852 0.48RWE 12,999 172 0.04

2,024 0.52

TOTAL GERMANY 76,536 19.97

23


HoldingMarket Value

£'000% of

Net Assets


IRELAND (0.20%, 31/03/2016 3.68%)Consumer ServicesPaddy Power Betfair 9,027 771 0.20

771 0.20

TOTAL IRELAND 771 0.20

ITALY (2.31%, 31/03/2016 3.83%)FinancialsAssicurazioni Generali 52,246 661 0.17Intesa Sanpaolo 1,237,989 2,678 0.70Intesa Sanpaolo Preferred Stock 94,415 192 0.05Mediobanca 63,924 461 0.12UniCredit 91,541 1,124 0.29

5,116 1.33

IndustrialsAtlantia 122,686 2,536 0.66Leonardo 13,177 150 0.04Prysmian 44,792 940 0.25

3,626 0.95

Oil & GasSaipem 36,835 14 0.00

14 0.00

TelecommunicationsTelecom Italia Preferred Stock 188,006 110 0.03

110 0.03

TOTAL ITALY 8,866 2.31

LUXEMBOURG (1.79%, 31/03/2016 0.17%)Basic MaterialsArcelorMittal 45,929 312 0.08

312 0.08

Consumer ServicesRTL 4,427 287 0.08

287 0.08

FinancialsAberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊ 6,251 6,251 1.63

6,251 1.63

TOTAL LUXEMBOURG 6,850 1.79

NETHERLANDS (10.80%, 31/03/2016 9.11%)Basic MaterialsAkzoNobel 51,400 3,400 0.89Koninklijke DSM 58,182 3,160 0.82

6,560 1.71

Consumer GoodsFerrari 11,502 683 0.18Fiat Chrysler Automobiles 260,166 2,285 0.60Unilever 111,999 4,438 1.16

7,406 1.94

24


HoldingMarket Value

£'000% of

Net Assets


NETHERLANDS (continued)Consumer ServicesKoninklijke Ahold Delhaize 268,197 4,536 1.18RELX 87,209 1,290 0.34

5,826 1.52

FinancialsABN AMRO 23,557 458 0.12Aegon 156,425 639 0.17EXOR 8,062 333 0.09ING 268,697 3,233 0.84NN 53,653 1,401 0.37

6,064 1.59

Health CareQIAGEN 30,151 702 0.18

702 0.18

IndustrialsAerCap 10,891 401 0.10CNH Industrial 215,768 1,663 0.43Koninklijke Boskalis Westminster 41,634 1,149 0.30Koninklijke Philips 136,038 3,486 0.91Koninklijke Vopak 33,173 1,157 0.30Randstad 36,343 1,678 0.44

9,534 2.48

TechnologyASML 6,220 660 0.17Gemalto 15,100 670 0.17NXP Semiconductor 23,717 1,976 0.52STMicroelectronics 76,547 940 0.25

4,246 1.11

TelecommunicationsAltice 'A' Shares 33 1 0.00Altice 'B' Shares‡ 11 0 0.00Koninklijke KPN 438,691 1,048 0.27

1,049 0.27

TOTAL NETHERLANDS 41,387 10.80

NORWAY (1.24%, 31/03/2016 1.25%)Basic MaterialsNorsk Hydro 698,601 3,282 0.86Yara International 9,112 280 0.07

3,562 0.93

Consumer GoodsMarine Harvest 29,195 352 0.09

352 0.09

Oil & GasStatoil 3,118 42 0.01

42 0.01

TelecommunicationsTelenor 61,149 811 0.21

811 0.21

TOTAL NORWAY 4,767 1.24

25


HoldingMarket Value

£'000% of

Net Assets


PORTUGAL (0.41%, 31/03/2016 0.32%)FinancialsBanco Espirito Santo** 5,726 - 0.00

- 0.00

Oil & GasGalp Energia 96,202 1,165 0.31

1,165 0.31

UtilitiesEDP - Energias de Portugal 146,211 394 0.10

394 0.10

TOTAL PORTUGAL 1,559 0.41

SPAIN (7.94%, 31/03/2016 6.58%)Consumer ServicesIndustria de Diseno Textil 39,431 1,099 0.29

1,099 0.29

FinancialsBanco Bilbao Vizcaya Argentaria 371,186 2,299 0.60Banco de Sabadell 495,044 721 0.19Banco Santander 1,378,037 6,724 1.75CaixaBank 222,982 765 0.20Mapfre 82,851 228 0.06

10,737 2.80

Health CareGrifols 14,626 288 0.07

288 0.07

IndustrialsAbertis Infraestructuras 10,764 139 0.04ACS Actividades de Construccion y Servicios 98,349 2,674 0.70Aena 15,285 1,913 0.50Amadeus IT 'A' Shares 91,561 3,704 0.96Ferrovial 11,835 188 0.05

8,618 2.25

Oil & GasRepsol 340,256 4,220 1.10

4,220 1.10

UtilitiesEndesa 158,365 2,952 0.77Iberdrola 444,607 2,527 0.66

5,479 1.43

TOTAL SPAIN 30,441 7.94

SWEDEN (7.31%, 31/03/2016 7.16%)Basic MaterialsBoliden 126,068 3,043 0.79

3,043 0.79

Consumer GoodsElectrolux 'B' Shares 69,347 1,546 0.40Husqvarna 50,433 353 0.09Svenska Cellulosa 'B' Shares 51,856 1,340 0.35Swedish Match 58,427 1,519 0.40

4,758 1.24

26


HoldingMarket Value

£'000% of

Net Assets


SWEDEN (continued)Consumer ServicesICA 51,152 1,393 0.36

1,393 0.36

FinancialsIndustrivarden 'C' Shares 4,388 76 0.02Investor 82,335 2,761 0.72Nordea Bank 255,251 2,339 0.61Svenska Handelsbanken 59,695 655 0.17Swedbank 160,635 2,995 0.78

8,826 2.30

Health CareGetinge 52,467 735 0.19

735 0.19

IndustrialsAlfa Laval 32,583 492 0.13Atlas Copco 'A' Shares 82,379 2,319 0.61Atlas Copco 'B' Shares 52,159 1,322 0.35Sandvik 88,761 1,054 0.28Skanska 'B' Shares 137,775 2,581 0.67SKF 40,198 637 0.17Volvo 7,960 94 0.03

8,499 2.24

TechnologyHexagon 22,995 743 0.19

743 0.19

TOTAL SWEDEN 27,997 7.31

SWITZERLAND (19.28%, 31/03/2016 20.02%)Basic MaterialsEMS-Chemie 256 119 0.03Givaudan 606 872 0.23Syngenta 6,204 2,190 0.57

3,181 0.83

Consumer GoodsAryzta 14,131 359 0.09Cie Financiere Richemont 9,262 579 0.15Nestlé OYJ 265,696 16,363 4.27

17,301 4.51

Consumer ServicesDufry 633 77 0.02

77 0.02

FinancialsBaloise 538 59 0.02Pargesa 4,453 253 0.07Partners Group 5,722 2,486 0.65Swiss Life 4,702 1,216 0.32Swiss Prime Site 21,057 1,475 0.38Swiss Re 39,355 2,825 0.74UBS 299,150 3,831 1.00Zurich Insurance 13,094 2,803 0.73

14,948 3.91

27


HoldingMarket Value

£'000% of

Net Assets


SWITZERLAND (continued)Health CareActelion 12,459 2,816 0.74Lonza 28,645 4,335 1.13Novartis 175,366 10,526 2.75Roche 43,456 8,975 2.34Sonova 2,563 282 0.07

26,934 7.03

IndustrialsABB 320,414 5,957 1.55Adecco 27,832 1,579 0.41LafargeHolcim 26,684 1,260 0.33Schindler 1,722 261 0.07Schindler Participation Certificate 4,762 736 0.19Sika 344 1,651 0.43

11,444 2.98

TOTAL SWITZERLAND 73,885 19.28

UNITED KINGDOM (0.13%, 31/03/2016 0.00%)Consumer GoodsCoca-Cola European Partners 16,300 493 0.13

493 0.13

TOTAL UNITED KINGDOM 493 0.13

DERIVATIVES (-0.06%, 31/03/2016 0.04%)Futures ContractsEURO STOXX 50 Index Futures June 2017 194 90 0.03Swiss Market Index Futures June 2017 31 8 0.00

98 0.03

Forward Currency ContractsBought CHF163,000 for GBP133,713 Settlement 22/06/2017 (3) 0.00Bought CHF2,470,150 for GBP2,013,553 Settlement 22/06/2017 (26) (0.01)Bought EUR155,000 for GBP136,176 Settlement 22/06/2017 (3) 0.00Bought EUR437,000 for GBP380,403 Settlement 22/06/2017 (5) 0.00Bought EUR7,672,017 for GBP6,735,755 Settlement 22/06/2017 (143) (0.04)Sold EUR604,000 for GBP529,054 Settlement 22/06/2017 10 0.00Sold EUR814,000 for GBP707,585 Settlement 22/06/2017 8 0.00Sold EUR369,000 for GBP318,645 Settlement 22/06/2017 2 0.00

(160) (0.05)

28


HoldingMarket Value

£'000% of

Net Assets


DERIVATIVES (continued)OptionsEURO STOXX 50 Index Options 3475 Call April 2017 (80) (24) (0.01)EURO STOXX 50 Index Options 3500 Call April 2017 (128) (26) (0.01)EURO STOXX 50 Index Options 3525 Call April 2017 (189) (25) (0.01)EURO STOXX 50 Index Options 3550 Call April 2017 (218) (18) 0.00EURO STOXX 50 Index Options 3575 Call April 2017 (80) (4) 0.00EURO STOXX 50 Index Options 3550 Call May 2017 (50) (15) 0.00EURO STOXX 50 Index Options 3575 Call May 2017 (165) (40) (0.01)EURO STOXX 50 Index Options 3600 Call May 2017 (80) (15) 0.00

(167) (0.04)

TOTAL DERIVATIVES (229) (0.06)

Portfolio of investments^ 390,711 101.97

Net other liabilities (7,566) (1.97)

Total net assets 383,145 100.00

*Real Estate Investment Trust.**Suspended securities.◊Asset managed by the Fund's Investment Adviser.‡The market value of the holding is below £500 and is therefore rounded down to £0.

All holdings are ordinary shares or stock units and admitted to official stock exchange listings unless otherwise stated.Holdings are denominated in Sterling unless otherwise stated.Derivatives can be exchange traded or Over the Counter (OTC) contracts.^Including derivative liabilities.

29


Securities Financing Transactions (SFT)

1) Global Data

Proportion of securities and commodities on loan as at 31 March 2017 £'000 % Total lendable assets excluding cash and cash equivalents: 358,449Securities and commodities on loan 22,883 6.38%

Assets engaged in SFTs and total return swaps as at 31 March 2017 £'000 % Fund assets under management (AUM) 393,375

Absolute value of assets engaged in:Securities lending 22,883 5.82%

2) Concentration Data

Top 10 collateral issuersName and value of collateral and commodities received as at 31 March 2017 £'000United States of America Treasury 2,971Royal Bank of Canada 2,006GlaxoSmithKline 1,357Republic of France 1,274Government of United Kingdom 1,035Federal Republic of Germany 602Kingdom of Netherlands 545UniCredit 543HSBC 487Sky 448

Top 10 counterpartiesName and value of outstanding transactions as at 31 March 2017 £'000Securities lendingUBS 10,418Credit Suisse Securities (Europe) 6,037ING 4,389Citigroup Global Markets (UK) 2,025Merrill Lynch International 14

3) Aggregate Transaction Data

Type, quality and currency of collateral as at 31 March 2017Type Quality Currencies £'000Securities lendingEquity Traded on recognised exchange Sterling 3,364Equity Traded on recognised exchange Australian dollar 210Equity Traded on recognised exchange Canadian dollar 1,205Equity Traded on recognised exchange Danish krone 401Equity Traded on recognised exchange Euro 2,863Equity Traded on recognised exchange Hong Kong dollar 797Equity Traded on recognised exchange Norwegian krone 79Equity Traded on recognised exchange Singapore dollar 118Equity Traded on recognised exchange Swedish krona 149Equity Traded on recognised exchange Swiss franc 822Equity Traded on recognised exchange US dollar 8,118Fixed Income Investment Grade Sterling 1,035Fixed Income Investment Grade Canadian dollar 3Fixed Income Investment Grade Euro 2,521Fixed Income Investment Grade US dollar 2,971Total collateral held 24,656

European Fund

as at 31 March 2017

30


Securities Financing Transactions (SFT) (continued)European Fund

as at 31 March 2017

Maturity tenor of collateral (remaining period to maturity) as at 31 March 2017

Type

Less than one day

£'000

One day to one week£'000

One week to one month

£'000

One to three

months£'000

Three months to

one year£'000

Above one year

£'000

Open maturity

£'000Total£'000

Securities lending - - 169 170 389 5,802 18,126 24,656- - 169 170 389 5,802 18,126 24,656

Counterparty details as at 31 March 2017 TotalType £'000Securities lending Switzerland Bi-lateral 3,172Securities lending United Kingdom Bi-lateral 550Securities lending Netherlands Tri-party 4,745Securities lending Switzerland Tri-party 8,021Securities lending United Kingdom Tri-party 8,168Total collateral held 24,656

Maturity tenor of SFTs and total return swaps (remaining period to maturity) as at 31 March 2017

Type

Less than one day

£'000



£'000

One to three

months£'000

Three months to

one year£'000

Above one year

£'000

Open maturity

£'000Total£'000

Securities lending - - - - - - 22,883 22,883- - - - - - 22,883 22,883

4) Re-use of Collateral

The Fund does not engage in re-use of collateral.

5) Safekeeping of Collateral Received

Names and value of custodians safekeeping collateral as at 31 March 2017 £'000JP Morgan 14,033Bank of New York 6,900State Street 3,723

Number of custodians safekeeping collateral 3

6) Safekeeping of Collateral Granted

The Fund does not borrow stock from counterparties; therefore, no collateral has been granted.

7) Return and Costfor the year ended 31 March 2017

Collective Investment Manager of Collective Third Parties Undertaking Investment Undertaking (e.g. lending agent) Total

£'000 £'000 £'000 £'000Securities lendingGross return 45 3 12 60% of total gross return 75% 5% 20% 100%Cost* - - - -

*All direct costs from securities lending are borne by lending agent.

Countries of counterparty establishment Settlement and clearing

31


European FundStatement of total returnfor the year ended 31 March 2017

01/04/16 to 31/03/17 01/04/15 to 31/03/16Notes £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 3 84,179 (37,849)

Revenue 4 12,326 13,608

Expenses 5 (172) (1,170)

Interest payable and similar charges (10) (10)

Net revenue before taxation 12,144 12,428

Taxation 6 (1,184) (1,378)

Net revenue after taxation 10,960 11,050

Total return before distributions 95,139 (26,799)

Distributions 7 (10,960) (11,050)

Change in net assets attributable to shareholdersfrom investment activities 84,179 (37,849)

Statement of change in net assets attributable to shareholdersfor the year ended 31 March 2017

01/04/16 to 31/03/17 01/04/15 to 31/03/16£'000 £'000 £'000 £'000

Opening net assets attributable to shareholders 327,267 489,357

Amounts receivable on creation of shares 16,703 14,728Amounts payable on cancellation of shares (45,245) (44,924)Assets transferred to Open-Ended Investment Companies - (94,200)

(28,542) (124,396)

Dilution adjustment 47 50

Change in net assets attributable to shareholders frominvestment activities (see Statement of total return above) 84,179 (37,849)

Retained distributions on accumulation shares 194 105

Closing net assets attributable to shareholders 383,145 327,267

Notes to the financial statements are on pages 124 to 149.

32


European FundBalance sheetas at 31 March 2017

31/03/17 31/03/16Notes £'000 £'000

ASSETSFixed assets:

Investments 391,058 327,739

Current assets:Debtors 8 2,577 3,341Cash and bank balances 9 1,423 6,654

Total assets 395,058 337,734

LIABILITIESInvestment liabilities 347 117

CreditorsBank overdrafts 9 - 122Distribution payable 10,137 8,709Other creditors 11 1,429 1,519

Total liabilities 11,913 10,467

Net assets attributable to shareholders 383,145 327,267


33


Far Eastern FundInvestment markets overview


Investment policy

UCITS scheme


1 2 3 4 5 6 7

Investment review


% % % % %40.38 (7.76) 19.03 (7.07) 18.10Far Eastern Fund


* As disclosed in the key investor information document dated 14 March 2017.



Source: Financial Express after 1 April 2013, Morningstar for previous years.Basis: Percentage growth, total return Share Class C (gross of annual management charge), published prices at 12.00pm.

The investment objective of the Far Eastern Fund is to achieve long term capital growth by investing predominantly in Far Eastern companies (excludingJapanese companies). The Fund seeks to deliver performance, before deduction of management fees, in excess of the MSCI AC Asia Pacific ex JapanIndex (the “Index”) with a similar level of overall volatility, over the long term.

To invest predominantly in a portfolio of companies which are part of the Index. This will involve investing in equities and may also include equity-linkedsecurities being depositary receipts and derivatives.


Derivatives may also be used for efficient portfolio management.





Past performance is not a guide to future performance. The value of an investment and the revenue from it may go up and down and you may get backless than invested.

34


Far Eastern FundInvestment markets overview (continued)

Equity markets in the Asia Pacific region were up over the 12-month reporting period. At the country level, Australia and China were among the bestperformers in local currency terms. Conversely, the Philippines and Malaysia lagged behind. Gains were magnified for sterling-based investors becausethe UK’s currency declined against its international peers in the aftermath of the vote to leave the European Union.


Aberdeen Asset Investments LimitedApril 2017

Early in the reporting period there were concerns over the health of China’s economy and the government’s devaluation of the country’s currency, therenminbi. More recently, however, it was revealed that China had met its full-year economic growth target of 6.7% in 2016. Investor optimism regardingrising oil and commodity prices also had a positive effect on the region’s equity markets in the latter months of the reporting period. Australia which is amajor exporter of commodities, was one of the biggest beneficiaries of this trend.

Elsewhere India appointed a new central bank governor. Urjit Patel, formerly the Reserve Bank of India’s deputy governor, succeeded Raghuram Rajanon 4 September 2016. The appointment underscores the Indian government’s commitment to inflation-targeting and continued adherence to monetarypolicy discipline. In March the landslide victory of Prime Minister Narendra Modi’s party in India’s biggest state election showed that there is support forhis programme of economic reforms.

At an asset level, the relatively larger (compared to the benchmark) position in the Hong Kong-based real estate company, Wheelock & Co, helpedperformance over the 12 months. The stock rose fuelled by speculation the company will sell down its non-rental assets through a spinoff, enablingWheelock to consolidate its land-bank. The company scored positively according to our measures of prudent management. Furthermore, the Fundbenefited from its active position in the Chinese automobile manufacturer Geely Automobile Holdings. The stock soared after the company increased itssales targets for 2016, driven by new models and an improving brand image. Geely Automobile scored highly according to our measures of analystsentiment.

In contrast, the comparatively overweight position in the Hong Kong-based airline, Cathay Pacific Airways had a negative influence on returns and thestock was subsequently sold. The share price underperformed the broader market during the year due to the economic slowdown in China. The stockregistered a positive score according to our proprietary value metrics.

While China has led the recent improvement in the region’s economic activity we think recent house purchase restrictions and tighter monetary policyconditions will moderate the country’s economic growth from now on. In Australia, while there have been signs of improved outlook for the banking sector,there are concerns about the health of the housing market. Domestic activity has been relatively weak, with a lot of demand coming from overseasbuyers, many of whom are based in China. The restrictions being imposed by Beijing on foreign investment could therefore have negative implications forthe market.

35


Comparative table

Share Class A






Share Class C







Far Eastern Fund

31/03/17(p)

31/03/16(p)

31/03/15(p)

241.43 (53.61) 112.34(3.69) (3.13) (3.16)

601.66 674.60 583.07

819.75 601.66 674.60(19.65) (16.20) (17.65)237.74 (56.74) 109.18

0.65 0.64 0.23

0.52% 0.52% 0.50%

14,715 11,732 13,8631,794,970 1,949,970 2,054,970

39.51% (8.41%) 18.73%


846.00 721.60 692.30561.60 513.40 576.40

0.09% 0.11% 0.04%

31/03/17(p)

31/03/16(p)

31/03/15(p)

(1.21) (1.10) (1.12)

68.83 75.98 64.5728.01 (6.05) 12.53

95.63 68.83 75.98

0.07 0.07 0.03

1.96 1.09 1.33

26.80 (7.15) 11.41(1.96) (1.09) (1.33)

38.94% (9.41%) 17.67%

1.49% 1.64% 1.61%

11,366 9,255 11,43311,886,000 13,446,000 15,046,000


96.37 81.23 76.0064.14 57.57 63.66

0.09% 0.11% 0.04%

36




Far Eastern Fund

Share Class F






Share Class G






31/03/17(p)

31/03/16(p)

31/03/15(p)

(0.55) (0.45) (0.46)

34.10 37.54 31.8313.65 (2.99) 6.17

47.20 34.10 37.54

0.04 0.04 0.01

0.81 0.63 0.73

13.10 (3.44) 5.71(0.81) (0.63) (0.73)

38.42% (9.16%) 17.94%

1.36% 1.37% 1.34%

7,491 6,017 7,17415,871,000 17,646,000 19,111,000


47.56 40.14 37.5531.79 28.48 31.40

0.09% 0.11% 0.04%

31/03/17(p)

31/03/16(p)

31/03/15(p)

(0.45) (0.38) (0.38)

34.80 38.21 32.3814.15 (3.03) 6.21

48.50 34.80 38.21

0.04 0.04 0.01

1.14 0.67 (0.82)

13.70 (3.41) 5.83(1.14) (0.67) 0.82

39.37% (8.92%) 18.00%

1.11% 1.11% 1.05%

4,226 3,831 183,0418,713,000 11,008,000 479,023,000


48.74 40.93 38.2832.50 29.07 31.97

0.09% 0.11% 0.04%

37




Far Eastern Fund

Share Class I






Share Class P□






31/03/17(p)

31/03/16(p)

31/03/15(p)

(0.12) (0.13) -

601.99 676.15 583.21241.95 (54.93) 113.18

820.77 601.99 676.15

0.65 0.64 0.23

241.83 (55.06) 113.18(23.05) (19.10) (20.24)

40.17% (8.14%) 19.41%

0.02% 0.02% 0.00%

176,056 139,090 170,28921,450,095 23,105,095 25,185,095


850.50 722.00 695.10562.30 514.60 576.80

0.09% 0.11% 0.04%

31/03/17(p)

(1.03)

99.764.34

103.07

0.10

0.40

3.31(0.40)

3.32%

0.96%

4342,000


103.9099.02

0.09%

38




Far Eastern Fund

Share Class Q□






Share Class R□






31/03/17(p)

(0.93)

99.764.25

103.08

0.10

0.41

3.32(0.41)

3.33%

0.86%

191185,000


103.9099.02

0.09%

31/03/17(p)

(0.65)

99.763.99

103.10

0.10

0.44

3.34(0.44)

3.35%

0.61%

4140,000


103.9099.02

0.09%

39




Far Eastern Fund

Share Class SW1**






31/03/17(p)

31/03/16(p)

31/03/15(p)

- (1.41) (1.42)

127.78 140.32 118.79(6.48) (11.13) 22.95

- 127.78 140.32

0.12 0.13 0.05

- 2.63 2.97(121.30) - -

(6.48) (12.54) 21.53- (2.63) (2.97)

- (8.94%) 18.12%

- 1.13% 1.11%

- 45 49- 35,000 35,000


131.03 150.10 140.40118.89 106.60 117.20

0.09% 0.11% 0.04%

40


Far Eastern FundMaterial portfolio changes

Cost ProceedsMajor purchases £'000 Major sales £'000 Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊# 43,461 Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊# 43,455Hang Seng Index Futures June 2016 14,417 Hang Seng Index Futures June 2016 14,978Hang Seng Index Futures May 2016 8,033 Hang Seng Index Futures May 2016 7,792Hang Seng Index Futures November 2016 7,426 Hang Seng Index Futures November 2016 7,272Hang Seng Index Futures August 2016 6,891 Hang Seng Index Futures August 2016 7,247Hang Seng Index Futures September 2016 5,823 Hang Seng Index Futures September 2016 6,062Hang Seng Index Futures October 2016 5,612 Hang Seng Index Futures October 2016 5,902Hang Seng Index Futures January 2017 5,378 Hang Seng Index Futures January 2017 5,352Hang Seng Index Futures July 2016 4,989 Hang Seng Index Futures July 2016 5,127Hang Seng Index Futures December 2016 4,922 Hang Seng Index Futures December 2016 4,878

◊Asset managed by the Fund's Investment Adviser.Purchases and sales of Futures have been included at the value of their exposure.

#With effect from 18 July 2016 holding moved from Aberdeen Global Liquidity Sterling Fund Advisory to Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3

41


HoldingMarket Value

£'000% of

Net AssetsAUSTRALIA (19.63%, 31/03/2016 20.29%) 19.63Basic MaterialsBHP Billiton 161,823 2,386 1.11Fortescue Metals 219,739 839 0.39Newcrest Mining 44,547 608 0.28Orica 21,604 233 0.11South32 527,275 890 0.42

4,956 2.31

Consumer GoodsCoca-Cola Amatil 203,284 1,350 0.63Treasury Wine Estates 68,468 514 0.24

1,864 0.87

Consumer ServicesAristocrat Leisure 46,821 516 0.24BGP 2,278,355 26 0.01Crown Resorts 18,477 134 0.06Flight Centre Travel 17,334 307 0.14Harvey Norman 144,561 401 0.19Qantas Airways 173,523 414 0.19Tabcorp 225,657 656 0.31Wesfarmers 50,175 1,387 0.65

3,841 1.79

FinancialsAustralia & New Zealand Banking 121,456 2,371 1.11Bank of Queensland 19,798 148 0.07Bendigo & Adelaide Bank 107,099 797 0.37Challenger 95,525 735 0.34Commonwealth Bank of Australia 66,666 3,514 1.64Dexus Property* 183,909 1,103 0.52Goodman* 9,330 44 0.02GPT* 162,286 513 0.24LendLease 213,411 2,040 0.95Macquarie 26,264 1,453 0.68Medibank Private 521,595 899 0.42Mirvac* 280,035 376 0.18National Australia Bank 156,379 3,199 1.49QBE Insurance 93,823 742 0.35Vicinity Centres* 18,808 33 0.02Westpac Banking 142,026 3,055 1.43

21,022 9.83

Health CareCochlear 13,779 1,143 0.53Ramsay Health Care 6,490 278 0.13Sonic Healthcare 20,319 276 0.13

1,697 0.79

IndustrialsAmcor 125,699 1,162 0.54Boral 120,911 433 0.20Brambles 6,208 36 0.02CIMIC 37,688 831 0.39Computershare 69,997 604 0.28SEEK 25,886 253 0.12

3,319 1.55

Far Eastern FundPortfolio statement as at 31 March 2017

42


HoldingMarket Value

£'000% of

Net Assets

Far Eastern FundPortfolio statement (continued)as at 31 March 2017

AUSTRALIA (continued) 19.63Oil & GasCaltex Australia 23,942 433 0.20Woodside Petroleum 41,569 818 0.38

1,251 0.58

TelecommunicationsTelstra 537,883 1,538 0.72

1,538 0.72

UtilitiesAGL Energy 157,676 2,550 1.19

2,550 1.19

TOTAL AUSTRALIA 42,038 19.63

CHINA (21.88%, 31/03/2016 18.87%#) 21.88Basic MaterialsChina Shenhua Energy 219,118 409 0.19Fosun International 248,000 299 0.14Sinopec Shanghai Petrochemical 1,360,492 606 0.28Yanzhou Coal Mining 76,224 48 0.02

1,362 0.63

Consumer GoodsBelle International 1,221,749 636 0.30Dongfeng Motor 660,171 596 0.28Geely Automobile 716,068 881 0.41Great Wall Motor 509,630 466 0.22Guangzhou Automobile 594,864 765 0.36Hengan International 79,990 478 0.22Tsingtao Brewery 4,356 16 0.01

3,838 1.80

Consumer ServicesAir China 635,436 413 0.19Alibaba ADR 58,490 5,111 2.39China Southern Airlines 490,034 272 0.13Ctrip.com International ADR 19,797 790 0.37JD.com ADR 18,631 472 0.22New Oriental Education & Technology ADR 13,851 662 0.31TAL Education ADR 4,313 356 0.17Vipshop ADR 24,424 263 0.12

8,339 3.90

FinancialsAgricultural Bank of China 6,942,117 2,561 1.20Bank of China 5,246,424 2,093 0.98Bank of Communications 1,437,938 898 0.42China Cinda Asset Management 313,064 97 0.05China CITIC Bank 1,911,819 1,018 0.47China Construction Bank 5,055,217 3,265 1.52China Everbright Bank 117,356 46 0.02China Merchants Bank 71,146 151 0.07China Vanke 39,931 87 0.04Chongqing Rural Commercial Bank 749,408 406 0.19Guangzhou R&F Properties 366,212 459 0.21Industrial & Commercial Bank of China 5,365,458 2,817 1.32

43


HoldingMarket Value

£'000% of

Net Assets


CHINA (continued) 21.88Financials (continued)Longfor Properties 13,884 18 0.01PICC Property & Casualty 319,007 395 0.18Ping An Insurance 101,182 455 0.21Shanghai Lujiazui Finance & Trade Zone Development 57,420 73 0.03

14,839 6.92

Health CareShandong Weigao Medical Polymer 1,071 1 0.00Sinopharm 339,047 1,263 0.59

1,264 0.59

IndustrialsAAC Technologies 37,500 352 0.16Anhui Conch Cement 10,146 28 0.01Beijing Capital International Airport 123,047 118 0.05China Communications Construction 201,372 228 0.11China Railway 1,063,097 764 0.36China Railway Construction 671,988 765 0.36Jiangsu Expressway 143,452 165 0.08Shanghai Electric 214,516 85 0.04Sinopec Engineering 342,236 282 0.13Sinotrans 134,481 50 0.02Sunny Optical Technology 39,000 229 0.11Weichai Power 165,870 235 0.11Yangzijiang Shipbuilding 743,346 483 0.23Zhejiang Expressway 513,166 539 0.25Zhuzhou CRRC Times Electric 20,690 88 0.04

4,411 2.06

Oil & GasChina Petroleum & Chemical 2,854,000 1,858 0.87

1,858 0.87

TechnologyBaidu ADR 12,804 1,772 0.83China Communications Services 791,308 415 0.19NetEase ADR 5,142 1,166 0.54SINA 7,157 418 0.20Tencent 221,111 5,091 2.38YY ADR 10,772 406 0.19ZTE 240,122 354 0.17

9,622 4.50

TelecommunicationsChina Telecom 1,464,210 572 0.27

572 0.27

UtilitiesENN Energy 56,624 256 0.12Huaneng Power International 893,641 479 0.22

735 0.34

TOTAL CHINA 46,840 21.88

44


HoldingMarket Value

£'000% of

Net Assets


HONG KONG (12.56%, 31/03/2016 13.37%#) 12.56Basic MaterialsNine Dragons Paper 635,896 549 0.26

549 0.26

Consumer GoodsFullshare 375,000 133 0.06Haier Electronics 251,928 463 0.22Techtronic Industries 106,355 344 0.16WH 1,245,811 859 0.40Yue Yuen Industrial 142,581 450 0.21

2,249 1.05

Consumer ServicesGalaxy Entertainment 135,701 597 0.28Sun Art Retail 80,173 60 0.03

657 0.31

FinancialsAIA 915,003 4,634 2.16BOC Hong Kong 602,975 1,979 0.92Cheung Kong Property 159,898 864 0.40China Everbright 100,136 162 0.07China Overseas Land & Investment 130,271 299 0.14China Resources Land 152,752 332 0.15Franshion Properties China 277,672 71 0.03Hang Lung 49,000 168 0.08Hang Seng Bank 3,700 60 0.03Henderson Land Development 124,940 621 0.29Hongkong Land 123,491 762 0.36Hysan Development 118,770 433 0.20Kerry Properties 206,422 575 0.27Sino Land 142,327 200 0.09Sun Hung Kai Properties 55,576 656 0.31Swire Properties 71,651 184 0.09Wharf 88,858 613 0.29Wheelock 220,642 1,401 0.65

14,014 6.53

Health CareSino Biopharmaceutical 67,080 44 0.02

44 0.02

IndustrialsBeijing Enterprises 47,500 197 0.09China Everbright International 15,790 17 0.01China State Construction International 16,334 23 0.01CK Hutchison 21,452 212 0.10COSCO Shipping Ports 114,491 101 0.05Jardine Matheson 14,817 765 0.36Jardine Strategic 12,500 422 0.20NWS 206,899 303 0.14Shanghai Industrial 158,000 372 0.17

2,412 1.13

Oil & GasHanergy Thin Film Power** 541,188 - 0.00Kunlun Energy 850,000 632 0.30

632 0.30

45


HoldingMarket Value

£'000% of

Net Assets


HONG KONG (continued) 12.56TechnologyASM Pacific Technology 64,100 697 0.33

697 0.33

TelecommunicationsChina Mobile 339,158 2,981 1.39HKT Trust and HKT 803,986 831 0.39PCCW 434,952 205 0.09

4,017 1.87

UtilitiesCheung Kong Infrastructure 47,306 298 0.14China Power International Development 232,302 69 0.03China Resources Power 70,707 102 0.05CLP 82,086 689 0.32HK Electric Investments & HK Electric Investments 165,243 122 0.06Power Assets 50,956 353 0.16

1,633 0.76

TOTAL HONG KONG 26,904 12.56

INDIA (7.68%, 31/03/2016 7.59%) 7.68Basic MaterialsHindalco Industries 220,843 531 0.25UPL 13,256 119 0.06Vedanta 287,670 981 0.47

1,631 0.78

Consumer GoodsBajaj Auto 5,854 203 0.09Bosch 398 112 0.05Dabur India 40,467 139 0.06Godrej Consumer Products 29,122 605 0.28Hero MotorCorp 7,059 281 0.13Hindustan Unilever 6,457 73 0.03ITC 153,238 532 0.25Marico 50,686 185 0.09Maruti Suzuki India 14,659 1,094 0.51Motherson Sumi Systems 42,136 194 0.09Nestlé India 612 50 0.02United Spirits‡ 11 0 0.00

3,468 1.60

Consumer ServicesZee Learn‡ 1 0 0.00

0 0.00

FinancialsAxis Bank 41,191 250 0.12Housing Development Finance 65,385 1,215 0.57ICICI Bank 222,005 759 0.35Indiabulls Housing Finance 19,993 247 0.12LIC Housing Finance 47,319 361 0.17Mahindra & Mahindra Financial Services 21,535 84 0.04Power Finance 205,188 370 0.17Shriram Transport Finance 10,993 147 0.07Yes Bank 12,727 243 0.11

3,676 1.72

46


HoldingMarket Value

£'000% of

Net Assets


INDIA (continued) 7.68Health CareCadila Healthcare 22,098 121 0.06Divi's Laboratories 6,058 47 0.02Dr Reddy's Laboratories 12,529 407 0.19Sun Pharmaceutical Industries 63,949 543 0.25

1,118 0.52

IndustrialsAshok Leyland 113,327 119 0.06Container Corp of India 1,334 21 0.01Havells India 11,722 67 0.03Mahindra & Mahindra 1,188 19 0.01Shree Cement 551 116 0.05Siemens 261 4 0.00Tata Motors 31,091 108 0.05Tata Motors (Partially Restricted) 120,053 693 0.32Ultratech Cement 3,112 153 0.07

1,300 0.60

Oil & GasBharat Petroleum 54,450 437 0.20Cairn India 76,703 290 0.14GAIL India 75,426 351 0.16Hindustan Petroleum 73,264 477 0.22Oil & Natural Gas 141,477 324 0.15Reliance Industries 5,428 89 0.04

1,968 0.91

TechnologyHCL Technologies 46,348 502 0.23Infosys 82,370 1,042 0.49Tata Consultancy Services 15,549 466 0.22Tech Mahindra 22,180 125 0.06Wipro 35,406 226 0.11

2,361 1.11

TelecommunicationsBharti Airtel 52,309 225 0.11Bharti Infratel 65,720 264 0.12

489 0.23

UtilitiesNTPC 155,789 319 0.15Tata Power 109,148 122 0.06

441 0.21

TOTAL INDIA 16,452 7.68

INDONESIA (2.28%, 31/03/2016 2.54%) 2.28Basic MaterialsAdaro Energy 3,385,018 357 0.17

357 0.17

Consumer GoodsAstra International 1,360,747 707 0.33Charoen Pokphand Indonesia 84,272 16 0.01Gudang Garam 89,780 355 0.17Indofood CBP Sukses Makmur 226,362 111 0.05

1,189 0.56

47


HoldingMarket Value

£'000% of

Net Assets


INDONESIA (continued) 2.28Consumer ServicesMatahari Department Store 148,953 118 0.05Media Nusantara Citra 91,854 10 0.00Surya Citra Media 108,163 18 0.01

146 0.06

FinancialsBank Danamon Indonesia 498,690 141 0.07Bank Negara Indonesia Persero 1,475,685 574 0.27Bank Rakyat Indonesia Persero 1,170,118 913 0.43

1,628 0.77

Health CareKalbe Farma 189,817 18 0.01

18 0.01

IndustrialsUnited Tractors 247,512 395 0.18

395 0.18

TelecommunicationsTelekomunikasi Indonesia Persero 4,551,705 1,133 0.53

1,133 0.53

TOTAL INDONESIA 4,866 2.28

IRELAND (1.36%, 31/03/2016 0.28%) 1.36FinancialsiShares MSCI AC Far East ex-Japan UCITS ETF USD 75,730 2,910 1.36

2,910 1.36

TOTAL IRELAND 2,910 1.36

0.22LUXEMBOURG (0.22%, 31/03/2016 0.00%) FinancialsAberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊ 479 479 0.22

479 0.22

TOTAL LUXEMBOURG 479 0.22

MACAO (0.00%, 31/03/2016 0.24%) 0.00

MALAYSIA (2.45%, 31/03/2016 3.15%) 2.45Basic MaterialsPetronas Chemicals 630,646 881 0.41

881 0.41

Consumer GoodsBritish American Tobacco Malaysia 13,236 108 0.05IOI 916,544 773 0.36Kuala Lumpur Kepong 58,755 263 0.12PPB 27,819 84 0.04

1,228 0.57

Consumer ServicesAirAsia 531,987 301 0.14Astro Malaysia 214,000 106 0.05

407 0.19

48


HoldingMarket Value

£'000% of

Net Assets


MALAYSIA (continued) 2.45FinancialsAlliance Financial 116,580 86 0.04AMMB 322,539 272 0.13CIMB 67,528 68 0.03Hong Leong Financial 19,501 56 0.03IOI Properties 172,086 64 0.03Malayan Banking 32,060 52 0.03

598 0.29

IndustrialsMISC 242,370 321 0.15Westports 71,072 52 0.03

373 0.18

Oil & GasPetronas Dagangan 84,363 366 0.17Petronas Gas 1,800 6 0.00

372 0.17

TelecommunicationsMaxis 2,073 2 0.00

2 0.00

UtilitiesTenaga Nasional 388,518 967 0.45YTL 962,531 259 0.12YTL Power International 557,389 154 0.07

1,380 0.64

TOTAL MALAYSIA 5,241 2.45

NEW ZEALAND (0.20%, 31/03/2016 0.51%) 0.20IndustrialsAuckland International Airport 24,512 93 0.04Fletcher Building 43,303 201 0.10

294 0.14

UtilitiesContact Energy 47,699 135 0.06

135 0.06

TOTAL NEW ZEALAND 429 0.20

PHILIPPINES (1.19%, 31/03/2016 1.41%) 1.19Basic MaterialsDMCI 251,098 46 0.02

46 0.02

Consumer GoodsJG Summit 155,081 202 0.09Universal Robina 55,004 144 0.07

346 0.16

Consumer ServicesJollibee Foods 26,967 85 0.04SM Investments 15,184 169 0.08

254 0.12

49


HoldingMarket Value

£'000% of

Net Assets


PHILIPPINES (continued) 1.19FinancialsAyala Land 451,195 239 0.11Bank of the Philippine Islands 48,767 79 0.04BDO Unibank 121,500 229 0.11GT Capital 4,635 85 0.04Megaworld 941,444 51 0.02Metropolitan Bank & Trust 36,645 47 0.02Robinsons Land 104,290 38 0.02Security Bank 13,400 43 0.02SM Prime 512,924 232 0.11

1,043 0.49

IndustrialsAboitiz Equity Ventures 122,530 146 0.07Alliance Global 156,599 32 0.01Ayala 15,270 204 0.09International Container Terminal Services 38,711 56 0.03

438 0.20

TelecommunicationsGlobe Telecom 1,970 64 0.03PLDT 6,017 158 0.07

222 0.10

UtilitiesAboitiz Power 108,490 72 0.03Energy Development 590,885 57 0.03Metro Pacific Investments 849,809 82 0.04

211 0.10

TOTAL PHILIPPINES 2,560 1.19

SINGAPORE (3.69%, 31/03/2016 4.33%) 3.69Consumer GoodsWilmar International 538,216 1,092 0.51

1,092 0.51

Consumer ServicesComfortDelGro 448,869 660 0.31Genting Singapore 1,310,400 768 0.36Jardine Cycle & Carriage 7,300 184 0.09

1,612 0.76

FinancialsCapitaLand 278,478 581 0.27CapitaLand Mall Trust* 28,312 32 0.01City Developments 20,600 121 0.06DBS 116,402 1,296 0.61Oversea-Chinese Banking 228,151 1,273 0.59Singapore Exchange 1,089 5 0.00United Overseas Bank 112,277 1,426 0.67

4,734 2.21

IndustrialsHutchison Port Holdings Trust 575,979 192 0.09SATS 37,100 104 0.05Singapore Technologies Engineering 4,901 11 0.01

307 0.15

50


HoldingMarket Value

£'000% of

Net Assets


SINGAPORE (continued) 3.69TelecommunicationsSingapore Telecommunications 58,100 131 0.06

131 0.06

TOTAL SINGAPORE 7,876 3.69

SOUTH KOREA (14.31%, 31/03/2016 15.04%) 14.31Basic MaterialsHanwha Chemical 2,713 51 0.02Hyundai Steel 1,525 64 0.03LG Chem Preference Shares 483 65 0.03Lotte Chemical 2,134 568 0.27POSCO 8,931 1,863 0.87

2,611 1.22

Consumer GoodsAmore Pacific 2,036 175 0.08CJ 2,540 317 0.15Hankook Tire 9,642 377 0.18Hanssem 140 22 0.01Hyundai Mobis 868 150 0.07Hyundai Motor 4,042 457 0.22Hyundai Motor Preference Shares 2,682 190 0.09Kia Motors 26,223 697 0.33KT&G 13,354 935 0.44LG Electronics 4,448 217 0.10LG Household & Health Care 563 327 0.15LG Household & Health Care Preference Shares 80 29 0.01NCSoft 1,017 223 0.10Ottogi 76 41 0.02Samsung Electronics 5,746 8,500 3.97Samsung Electronics Preference Shares 1,656 1,906 0.89

14,563 6.81

Consumer ServicesBGF Retail 4,392 330 0.15Cheil Worldwide 1,121 15 0.01E-Mart 71 10 0.00Kangwon Land 10,437 286 0.13

641 0.29

FinancialsHana Financial 16,522 438 0.20Hyundai Marine & Fire Insurance 11,286 283 0.13Industrial Bank of Korea 97,630 852 0.40KB Financial 20,491 721 0.34Samsung Life Insurance 1,902 148 0.07Samsung Securities 744 18 0.01Shinhan Financial 16,694 559 0.26Woori Bank 78,854 733 0.34

3,752 1.75

Health CareYuhan 4 1 0.00

1 0.00

IndustrialsDaelim Industrial 3,294 191 0.09GS Engineering & Construction 1,116 25 0.01Hanwha 5,435 140 0.07

51


HoldingMarket Value

£'000% of

Net Assets


SOUTH KOREA (continued) 14.31Industrials (continued)Hyosung 1,653 161 0.08Hyundai Development Co-Engineering & Construction 21,905 639 0.30Hyundai Engineering & Construction 18,183 646 0.30Hyundai Glovis 105 11 0.01Hyundai Heavy Industries 231 27 0.01LG 9,890 497 0.23LG Innotek 4,177 409 0.19S-1 468 30 0.01Samsung C&T 1,110 101 0.05

2,877 1.35

Oil & GasSK Innovation 14,557 1,740 0.81

1,740 0.81

TechnologyNAVER 1,751 1,075 0.50SK Holdings 1,333 233 0.11SK Hynix 33,404 1,211 0.57

2,519 1.18

TelecommunicationsKT 10,572 242 0.11LG Uplus 42,289 434 0.20SK Telecom 596 108 0.05

784 0.36

UtilitiesKorea Electric Power 34,829 1,161 0.54

1,161 0.54

TOTAL SOUTH KOREA 30,649 14.31

TAIWAN (11.33%, 31/03/2016 11.60%) 11.33Basic MaterialsFormosa Chemicals & Fibre 516,726 1,290 0.60

1,290 0.60

Consumer GoodsFeng TAY Enterprise 22,023 71 0.03Formosa Taffeta 87,906 75 0.03Largan Precision 5,080 641 0.30Standard Foods 458 1 0.00Uni-President Enterprises 933,152 1,405 0.66

2,193 1.02

Consumer ServicesRuentex Development 619 1 0.00

1 0.00

FinancialsChang Hwa Commercial Bank 59,878 29 0.01China Life Insurance 213,292 169 0.08CTBC Financial 346,808 172 0.08First Financial 752,348 368 0.17Highwealth Construction 206,336 291 0.14

52


HoldingMarket Value

£'000% of

Net Assets


TAIWAN (continued) 11.33Financials (continued)Mega Financial 649,280 420 0.20SinoPac Financial 1,916,645 480 0.22Taiwan Business Bank 329,970 73 0.03

2,002 0.93

IndustrialsCatcher Technology 91,000 721 0.34Foxconn Technology 356,597 873 0.41Hon Hai Precision Industry 1,203,070 2,898 1.35Lite-On Technology 470,795 648 0.30

5,140 2.40

Oil & GasFormosa Petrochemical 454,363 1,275 0.59

1,275 0.59

TechnologyAU Optronics 2,166,000 679 0.32Compal Electronics 495,447 259 0.12Innolux 881,330 293 0.14Inventec 198,816 119 0.06MediaTek 13,728 78 0.04Novatek Microelectronics 126,250 391 0.18Pegatron 313,814 745 0.35Phison Electronics 3,819 27 0.01Powertech Technology 179,363 419 0.20Quanta Computer 186,000 304 0.14Siliconware Precision Industries 42,000 55 0.03Synnex Technology International 17,182 15 0.01Taiwan Semiconductor Manufacturing 1,329,171 6,649 3.11Transcend Information 27,000 71 0.03Vanguard International Semiconductor 110,727 169 0.08Wistron 941,479 692 0.32WPG 453,000 456 0.21

11,421 5.35

TelecommunicationsFar EasTone Telecommunications 1,637 3 0.00Taiwan Mobile 317,000 936 0.44

939 0.44

TOTAL TAIWAN 24,261 11.33

THAILAND (2.15%, 31/03/2016 2.12%) 2.15Basic MaterialsBanpu Public 158,845 74 0.03Indorama Ventures 131,759 109 0.05Indorama Ventures Call Warrants 2017 13,176 1 0.00Indorama Ventures Call Warrants 2018 10,136 1 0.00IRPC 1,120,488 135 0.06

320 0.14

Consumer GoodsCharoen Pokphand Foods 287,908 185 0.09

185 0.09

53


HoldingMarket Value

£'000% of

Net Assets


THAILAND (continued) 2.15Consumer ServicesBEC World 101,922 41 0.02CP ALL 258,181 356 0.17

397 0.19

FinancialsCentral Pattana 133,283 177 0.08Kasikornbank 31,700 140 0.06Kasikornbank Foreign Shares 64,589 285 0.13Krung Thai Bank 363,764 173 0.08Land & Houses‡ 1,013 0 0.00Siam Commercial Bank 115,752 440 0.21TMB Bank 41,052 2 0.00

1,217 0.56

Health CareBangkok Dusit Medical Services 312,518 155 0.07

155 0.07

IndustrialsAirports of Thailand 273,870 251 0.12Siam Cement 30,173 381 0.18

632 0.30

Oil & GasPTT 59,401 537 0.25PTT Exploration & Production 118,987 259 0.12PTT Global Chemical 158,191 271 0.13Thai Oil 82,540 146 0.07

1,213 0.57

TelecommunicationsAdvanced Info Service 64,627 269 0.13True 629,989 99 0.05

368 0.18

UtilitiesGlow Energy 60,707 116 0.05

116 0.05

TOTAL THAILAND 4,603 2.15

UNITED KINGDOM (0.65%, 31/03/2016 0.27%) 0.65Basic MaterialsRio Tinto 37,678 1,397 0.65

1,397 0.65

TOTAL UNITED KINGDOM 1,397 0.65

UNITED STATES (0.23%, 31/03/2016 0.00%) 0.23Consumer ServicesYum China 23,612 503 0.23

503 0.23

TOTAL UNITED STATES 503 0.23

54


HoldingMarket Value

£'000% of

Net Assets


DERIVATIVES (0.00%, 31/03/2016 0.03%) 0.00Futures ContractsHang Seng Index Futures April 2017 4 (5) 0.00SPI 200 Index Futures June 2017 16 22 0.01

17 0.01

Forward Currency ContractsBought AUD223,000 for GBP138,326 Settlement 21/06/2017 - (2) 0.00Bought AUD5,245,624 for GBP3,228,653 Settlement 21/06/2017 - (20) (0.01)Bought HKD4,807,255 for GBP491,954 Settlement 05/07/2017 - 5 0.01Bought HKD1,171,000 for GBP120,108 Settlement 06/04/2017 - 1 0.01Bought HKD69,000 for GBP7,083 Settlement 05/07/2017‡ - 0 0.00Bought HKD2,376,000 for GBP251,358 Settlement 06/04/2017 - (6) 0.00Bought HKD4,340,000 for GBP456,656 Settlement 06/04/2017 - (8) 0.00Bought HKD7,954,000 for GBP833,846 Settlement 06/04/2017 - (12) (0.01)Bought HKD36,382,400 for GBP3,817,405 Settlement 06/04/2017 - (57) (0.03)Sold AUD3,185,000 for GBP1,987,280 Settlement 21/06/2017 - 39 0.02Sold HKD5,360,000 for GBP560,497 Settlement 06/04/2017 - 7 0.00Sold HKD2,297,000 for GBP243,502 Settlement 06/04/2017 - 6 0.00Sold HKD2,358,000 for GBP249,645 Settlement 06/04/2017 - 6 0.00Sold HKD2,168,000 for GBP229,456 Settlement 06/04/2017 - 5 0.00Sold HKD2,364,000 for GBP248,907 Settlement 06/04/2017 - 5 0.00Sold HKD2,180,000 for GBP229,146 Settlement 06/04/2017 - 4 0.00Sold HKD2,294,000 for GBP240,435 Settlement 06/04/2017 - 3 0.00Sold HKD2,312,000 for GBP241,950 Settlement 06/04/2017 - 3 0.00Sold HKD2,213,000 for GBP231,686 Settlement 06/04/2017 - 3 0.00Sold HKD2,440,000 for GBP254,312 Settlement 06/04/2017 - 2 0.00Sold HKD1,151,000 for GBP120,464 Settlement 06/04/2017 - 2 0.00Sold HKD3,590,000 for GBP372,439 Settlement 06/04/2017 - 1 0.00Sold HKD3,578,550 for GBP370,630 Settlement 06/04/2017 - 1 0.00Sold HKD373,000 for GBP39,226 Settlement 06/04/2017 - 1 0.00Sold HKD1,198,000 for GBP124,485 Settlement 06/04/2017 - 1 0.00Sold HKD106,000 for GBP11,203 Settlement 06/04/2017‡ - 0 0.00Sold HKD2,407,000 for GBP248,738 Settlement 06/04/2017‡ - 0 0.00Sold HKD2,410,000 for GBP248,899 Settlement 06/04/2017‡ - 0 0.00Sold HKD3,434,000 for GBP354,607 Settlement 06/04/2017‡ - 0 0.00Sold HKD835,595 for GBP85,546 Settlement 06/04/2017 - (1) 0.00Sold HKD2,347,000 for GBP240,643 Settlement 06/04/2017 - (2) 0.00Sold HKD4,807,255 for GBP492,099 Settlement 06/04/2017 - (6) 0.00

(19) (0.01)

TOTAL DERIVATIVES (2) 0.00




*Real Estate Investment Trust.**Suspended securities.◊Asset managed by the Fund's Investment Adviser.‡The market value of the holding is below £500 and is therefore rounded down to £0.

^Including derivative liabilities.

#Since the previous report the classification headings have been updated by data providers. Comparative figures have been updated where appropriate.

Stocks shown as ADR's represent American Depositary Receipts.Derivatives can be exchange traded or Over the Counter (OTC) contracts.

Holdings are denominated in Sterling unless otherwise stated.All holdings are ordinary shares or stock units and admitted to official stock exchange listings unless otherwise stated.

55


1) Global Data





Top 10 collateral issuersName and value of collateral and commodities received as at 31 March 2017 £'000United States of America Treasury 1,211Republic of France 794Federal Republic of Germany 483Goverment of United Kingdom 343Goverment of Canada 148Kingdom of Netherlands 148Kingdom of Belgium 129HSBC 116Reynolds American 106UniCredit 106

Top 10 counterpartiesName and value of outstanding transactions as at 31 March 2017 £'000Securities lendingUBS 4,252Merrill Lynch International 911Credit Suisse Securities (Europe) 294Citigroup Global Markets (UK) 264Morgan Stanley International 47Deutsche Bank 43ING 24


Type, quality and currency of collateral as at 31 March 2017Type Quality Currencies £'000Securities lendingEquity Traded on recognised exchange Sterling 600Equity Traded on recognised exchange Australian dollar 68Equity Traded on recognised exchange Canadian dollar 26Equity Traded on recognised exchange Danish krone 69Equity Traded on recognised exchange Euro 521Equity Traded on recognised exchange Hong Kong dollar 185Equity Traded on recognised exchange Norwegian krone 8Equity Traded on recognised exchange Singapore dollar 1Equity Traded on recognised exchange Swedish krona 44Equity Traded on recognised exchange Swiss franc 130Equity Traded on recognised exchange US dollar 1,376Fixed Income Investment Grade Sterling 342Fixed Income Investment Grade Canadian dollar 148Fixed Income Investment Grade Euro 1,555Fixed Income Investment Grade US dollar 1,211Total collateral held 6,284

Far Eastern FundSecurities Financing Transactions (SFT) as at 31 March 2017

56


Securities Financing Transactions (SFT) (continued)Far Eastern Fund

as at 31 March 2017


Type

Less than one day

£'000



£'000

One to three

months£'000

Three months to

one year£'000

Above one year

£'000

Open maturity

£'000Total£'000

Securities lending - - 79 120 298 2,759 3,028 6,284- - 79 120 298 2,759 3,028 6,284

Counterparty details as at 31 March 2017 TotalType £'000Securities lending Germany Bi-lateral 45Securities lending Switzerland Bi-lateral 1,996Securities lending United Kingdom Bi-lateral 904Securities lending Netherlands Tri-party 26Securities lending Switzerland Tri-party 2,573Securities lending United Kingdom Tri-party 740Total collateral held 6,284


Type

Less than one day

£'000



£'000

One to three

months£'000

Three months to

one year£'000

Above one year

£'000

Open maturity

£'000Total£'000





Names and value of custodians safekeeping collateral as at 31 March 2017 £'000State Street 2,945JP Morgan 2,573Bank of New York 766









57


Far Eastern FundStatement of total returnfor the year ended 31 March 2017

01/04/16 to 31/03/17 01/04/15 to 31/03/16Notes £'000 £'000 £'000 £'000

Income


Revenue 4 6,991 11,247

Expenses 5 (376) (2,002)



Taxation 6 (397) (606)



Distributions 7 (6,216) (8,634)



01/04/16 to 31/03/17 01/04/15 to 31/03/16£'000 £'000 £'000 £'000



(17,764) (173,311)






58


Far Eastern FundBalance sheetas at 31 March 2017

31/03/17 31/03/16Notes £'000 £'000

ASSETSFixed assets:


Current assets:Debtors 8 1,049 1,539Cash and bank balances 9 756 965

Total assets 219,930 175,433

LIABILITIESInvestment liabilities 119 177

CreditorsBank overdrafts 9 84 171Distribution payable 5,296 4,729Other creditors 11 302 386




59


International Growth FundInvestment markets overview


Investment policy

UCITS scheme


1 2 3 4 5 6 7

Investment review


% % % % %32.93 (2.37) 18.68 8.25 21.24International Growth Fund


* As disclosed in the key investor information document dated 24 February 2017.




The investment objective of the International Growth Fund is to achieve capital growth in the long term by investing in a diversified global portfolio. TheFund seeks to deliver performance, before deduction of management fees, in excess of a blended return of the MSCI World Index and the MSCIEmerging Markets Index (the “Indices”) with a similar level of overall volatility, over the long term.

To invest predominantly in a portfolio of companies which are part of the Indices. Of the two Indices, the fund will invest almost exclusively in companiesthat are part of the MSCI World Index.

This will involve investing in equities and may also include equity-linked securities being depositary receipts, warrants and preference shares.

The Investment Adviser may only take limited positions away from the Indices. This means there are limitations on the extent to which the Fund’sinvestment in various sectors* may differ to the Indices. These limited positions can be more than is held in the Indices (overweight) or less than is held inthe Indices (underweight).







60


International Growth FundInvestment markets overview (continued)

Equity markets around the world made gains over the year to 31 March 2017. At the regional level, the best performers in local currency terms were theUK and Europe. In contrast, emerging markets and Japan made smaller gains over the period. Returns for sterling-based investors were boosted by thepound’s decline against a variety of its international peers in the aftermath of the Brexit vote.



The backlash after the Leave result in the Brexit referendum was swift, global stock markets sold off, sterling fell to a 30-year low against the US dollarand David Cameron announced that he would step down as UK prime minister. Theresa May took over, bringing a relatively quick resolution to thepolitical situation. The recovery, at least among large cap equities in the UK was nearly as quick. For example, the companies that make up the FTSE100 Index benefited from the pound’s decline because many of them generate the bulk of their profits overseas. Recently, economic data showed UKinflation at its highest level since September 2013.

In Europe, Spain and Norway performed particularly well in local currency terms, while Greece and Denmark lagged behind. In terms of sectors, oil & gasand industrials outpaced the other areas of the market, while telecoms and consumer services disappointed. In mid-March investor sentiment was buoyedby the election results in the Netherlands which were hailed as a rejection of ‘populism’ in the Eurozone.

After Donald Trump’s seemingly improbable victory in the country’s presidential election, US markets reached a series of record highs. At one point, allfour of the major US equity indices reached new peaks - the first time this has happened since the middle of the dotcom boom. More recently, shareprices were held back by concerns that the Trump administration might not have adequate support in Congress to push through its economic stimulus

While Japanese equities made a positive return over the 12-month reporting period, they lagged behind other developed equity markets in local currencyterms. At the sector level, the best performers included energy resources and machinery. Conversely, real estate and electric power & gas lagged behind.Among emerging markets, Brazil and China were among the strongest performers. In contrast, South Africa and the Philippines lagged behind.

A number of the Fund’s holdings within the oil and mining sectors performed particularly well over the period. These stocks had strong valuecharacteristics. In summer, the positions in Cognizant and Apple, the US technology companies, had a negative effect on returns. The share prices ofboth companies suffered from their exposure to sterling-denominated revenue. Later in the year, investors viewed President Trump’s election as apositive for economic growth and economically sensitive sectors such as financials rallied. In early 2017, this trend reversed, as it seemed less likely thathis promised tax cuts would be implemented very quickly. This had a negative effect on the portfolio’s value-related holdings but was positive for thosewhich were rated highly according to our financial strength metrics.

Surveys continue to point to buoyant global activity, driven by a manufacturing upturn in several countries. This, in turn, is helping to pull up global tradegrowth. There are several reasons for caution, however. China, a key driver of the recent global improvement, is now seeing tighter monetary conditions.It is also increasingly likely that the fiscal stimulus promised by President Trump will be delayed and could be smaller than hoped.

61


Comparative table

Share Class A






Share Class C








31/03/17(p)

31/03/16(p)

31/03/15(p)

101.09 (7.80) 52.76(1.83) (1.55) (1.51)

313.46 328.55 282.98

405.46 313.46 328.55(7.26) (5.74) (5.68)99.26 (9.35) 51.25

0.07 0.02 0.09

0.50% 0.50% 0.50%

19,650 16,132 17,7794,846,449 5,146,449 5,411,449

31.67% (2.85%) 18.11%


421.30 339.30 336.70305.90 280.20 276.30

0.02% 0.01% 0.03%

31/03/17(p)

31/03/16(p)

31/03/15(p)

(1.01) (0.95) (0.92)

62.58 65.09 55.6920.55 (1.56) 10.32

82.12 62.58 65.09

0.01 - 0.02

1.21 0.49 0.50

19.54 (2.51) 9.40(1.21) (0.49) (0.50)

31.22% (3.86%) 16.88%

1.39% 1.55% 1.55%

385,644 330,227 384,300469,639,000 527,704,000 590,369,000


83.86 67.20 65.5961.00 55.01 54.35

0.02% 0.01% 0.03%

62





Share Class F






Share Class G






31/03/17(p)

31/03/16(p)

31/03/15(p)

(0.58) (0.49) (0.47)

39.70 41.18 35.1312.76 (0.99) 6.52

51.88 39.70 41.18

0.01 - 0.01

0.57 0.42 0.42

12.18 (1.48) 6.05(0.57) (0.42) (0.42)

30.68% (3.59%) 17.22%

1.26% 1.27% 1.27%

263,749 215,593 227,741508,340,000 543,060,000 553,060,000


52.98 42.52 41.5038.71 34.88 34.29

0.02% 0.01% 0.03%

31/03/17(p)

31/03/16(p)

31/03/15(p)

(0.48) (0.40) (0.39)

40.49 41.88 35.6413.03 (0.99) 6.63

53.04 40.49 41.88

0.01 - 0.01

0.70 0.53 0.52

12.55 (1.39) 6.24(0.70) (0.53) (0.52)

31.00% (3.32%) 17.51%

1.01% 1.02% 1.02%

41,987 29,782 127,60979,155,000 73,560,000 304,730,000


54.16 43.25 42.2139.49 35.56 34.80

0.02% 0.01% 0.03%

63





Share Class I






Share Class P□






31/03/17(p)

31/03/16(p)

31/03/15(p)

- - -

313.86 328.95 283.19101.27 (7.76) 52.91

406.18 313.86 328.95

0.07 0.02 0.09

101.27 (7.76) 52.91(8.95) (7.33) (7.15)

32.27% (2.36%) 18.68%

0.00% 0.00% 0.00%

1,221,670 1,030,080 1,165,686300,772,551 328,197,551 354,367,551


423.70 339.70 338.60306.50 281.70 276.50

0.02% 0.01% 0.03%

31/03/17(p)

(0.90)

99.951.83

100.88

0.02

0.26

0.93(0.26)

0.93%

0.86%

316313,000


103.0099.16

0.02%

64





Share Class Q□






Share Class R□






31/03/17(p)

(0.80)

99.951.74

100.89

0.02

0.27

0.94(0.27)

0.94%

0.76%

845838,000


103.0099.16

0.02%

31/03/17(p)

(0.52)

99.951.49

100.92

0.02

0.29

0.97(0.29)

0.97%

0.51%

278275,000


103.0099.17

0.02%

65





Share Class SW1**






31/03/17(p)

31/03/16(p)

31/03/15(p)

- (1.76) (1.70)

109.07 113.57 97.26(0.67) (2.74) 18.01

- 109.07 113.57

0.02 0.01 0.03

- 0.74 0.76(108.40) - -

(0.67) (4.50) 16.31- (0.74) (0.76)

- (3.96%) 16.77%

- 1.65% 1.65%

- 55 57- 50,000 50,000


112.74 117.20 114.50106.34 95.89 94.92

0.02% 0.01% 0.03%

66


International Growth FundMaterial portfolio changes

Cost ProceedsMajor purchases £'000 Major sales £'000 iShares MSCI World UCITS ETF USD 118,283 iShares MSCI World UCITS ETF USD 108,722Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊# 77,834 Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊# 77,836S&P 500 E Mini Index Futures December 2016 61,956 S&P 500 E Mini Index Futures December 2016 63,224S&P 500 E Mini Index Futures September 2016 60,854 S&P 500 E Mini Index Futures September 2016 63,033S&P 500 E Mini Index Futures March 2017 56,282 S&P 500 E Mini Index Futures June 2016 59,306S&P 500 E Mini Index Futures June 2016 52,708 S&P 500 E Mini Index Futures March 2017 58,569S&P 500 E Mini Index Futures June 2017 38,886 General Electric 11,464Texas Instruments 11,381 Scottish Widows Emerging Markets Fund X Acc† 10,850JM Smucker 10,355 Microsoft 10,391Valero Energy 9,738 American International 10,077

◊Asset managed by the Fund's Investment Adviser.

†This investment is a related party (see note 14).Purchases and sales of Futures have been included at the value of their exposure.


67


HoldingMarket Value

£'000% of

Net AssetsAUSTRALIA (1.92%, 31/03/2016 1.83%) 1.92Basic MaterialsBHP Billiton 865,294 12,759 0.66Fortescue Metals 1,149,931 4,389 0.23Newcrest Mining 157,732 2,152 0.11

19,300 1.00

Consumer ServicesQantas Airways 929,730 2,219 0.11

2,219 0.11

FinancialsCommonwealth Bank of Australia 31,717 1,672 0.08National Australia Bank 84,257 1,724 0.09QBE Insurance 923,033 7,301 0.38Westpac Banking 79,515 1,710 0.09

12,407 0.64

IndustrialsCIMIC 93,778 2,067 0.11

2,067 0.11

Oil & GasWoodside Petroleum 60,482 1,191 0.06

1,191 0.06

TOTAL AUSTRALIA 37,184 1.92

AUSTRIA (0.22%, 31/03/2016 0.38%) 0.22FinancialsVienna Insurance 61,909 1,197 0.06

1,197 0.06

IndustrialsAndritz 74,455 3,050 0.16

3,050 0.16

TOTAL AUSTRIA 4,247 0.22

BELGIUM (0.00%, 31/03/2016 0.14%) 0.00

BERMUDA (0.19%, 31/03/2016 0.00%) 0.19FinancialsEverest Re 19,946 3,761 0.19

3,761 0.19

TOTAL BERMUDA 3,761 0.19

BRAZIL (0.08%, 31/03/2016 0.10%) 0.08Basic MaterialsVale ADR 211,800 1,534 0.08

1,534 0.08

TOTAL BRAZIL 1,534 0.08

International Growth FundPortfolio statement as at 31 March 2017

68


HoldingMarket Value

£'000% of

Net Assets

International Growth FundPortfolio statement (continued)as at 31 March 2017

CANADA (3.39%, 31/03/2016 3.22%) 3.39Basic MaterialsBarrick Gold 403,360 6,091 0.31Cameco 374,475 3,365 0.17Kinross Gold 838,215 2,334 0.12West Fraser Timber 31,630 1,060 0.05

12,850 0.65

Consumer GoodsLululemon athletica 31,969 1,303 0.07Saputo 111,774 3,100 0.16

4,403 0.23

Consumer ServicesRestaurant Brands International 98,367 4,411 0.23

4,411 0.23

FinancialsCI Financial 74,373 1,184 0.06Royal Bank of Canada 181,711 10,689 0.55Toronto-Dominion Bank 45,630 1,817 0.10

13,690 0.71

IndustrialsCanadian National Railway 161,178 9,557 0.49

9,557 0.49

Oil & GasCrescent Point Energy 279,704 2,439 0.13Inter Pipeline 234,161 3,976 0.21Suncor Energy 312,770 7,746 0.40

14,161 0.74

UtilitiesFortis 173,524 4,598 0.24Pembina Pipeline 75,151 1,906 0.10

6,504 0.34

TOTAL CANADA 65,576 3.39

CHINA (0.16%, 31/03/2016 0.16%) 0.16IndustrialsYangzijiang Shipbuilding 1,723,149 1,119 0.06

1,119 0.06

TechnologyTencent 81,566 1,878 0.10

1,878 0.10

TOTAL CHINA 2,997 0.16

DENMARK (0.45%, 31/03/2016 0.53%) 0.45Health CareNovo Nordisk 'B' Shares 64,443 1,784 0.09

1,784 0.09

UtilitiesVestas Wind Systems 105,708 6,930 0.36

6,930 0.36

TOTAL DENMARK 8,714 0.45

69


HoldingMarket Value

£'000% of

Net Assets


FINLAND (0.72%, 31/03/2016 0.63%) 0.72Basic MaterialsStora Enso 424,592 4,006 0.21UPM-Kymmene 260,419 4,930 0.26

8,936 0.47

FinancialsSampo 129,207 4,911 0.25

4,911 0.25

TOTAL FINLAND 13,847 0.72

FRANCE (3.26%, 31/03/2016 2.89%) 3.26Basic MaterialsArkema 60,300 4,759 0.25

4,759 0.25

Consumer GoodsPeugeot 599,042 9,654 0.50Renault 19,376 1,342 0.07

10,996 0.57

Consumer ServicesCasino Guichard Perrachon 41,088 1,823 0.09

1,823 0.09

FinancialsAXA 285,919 5,909 0.31BNP Paribas 89,747 4,730 0.24Klepierre* 54,433 1,686 0.09

12,325 0.64

Health CareSanofi 91,777 6,629 0.34

6,629 0.34

IndustrialsEiffage 45,581 2,851 0.15Safran 48,127 2,858 0.15Schneider Electric 95,335 5,528 0.28

11,237 0.58

TelecommunicationsOrange 610,283 7,548 0.39

7,548 0.39

UtilitiesEngie 684,756 7,685 0.40

7,685 0.40

TOTAL FRANCE 63,002 3.26

GERMANY (2.63%, 31/03/2016 2.54%) 2.63Basic MaterialsBayer 81,573 7,518 0.39Covestro 34,590 2,114 0.11Linde 22,671 3,048 0.16

12,680 0.66

70


HoldingMarket Value

£'000% of

Net Assets


GERMANY (continued) 2.63Consumer Goodsadidas 17,634 2,688 0.14Bayerische Motoren Werke 39,497 2,885 0.15Continental 43,283 7,603 0.39Henkel Preference Shares 79,497 8,175 0.42

21,351 1.10

FinancialsAllianz 32,339 4,782 0.25Hannover Rück 10,929 1,008 0.05

5,790 0.30

Health CareFresenius 89,139 5,726 0.30Fresenius Medical Care 77,805 5,270 0.27

10,996 0.57

TOTAL GERMANY 50,817 2.63

HONG KONG (1.71%, 31/03/2016 1.48%) 1.71Consumer ServicesMTR 420,826 1,898 0.10

1,898 0.10

FinancialsAIA 1,825,308 9,243 0.47Hang Lung Properties 742,269 1,546 0.08Wheelock 207,000 1,315 0.07

12,104 0.62

IndustrialsJardine Matheson 105,216 5,429 0.28NWS 1,181,000 1,728 0.09Swire Pacific 'A' Shares 508,537 4,078 0.21

11,235 0.58

TelecommunicationsChina Mobile 196,985 1,731 0.09

1,731 0.09

UtilitiesPower Assets 895,847 6,199 0.32

6,199 0.32

TOTAL HONG KONG 33,167 1.71

IRELAND (3.96%, 31/03/2016 3.27%) 3.96FinancialsiShares MSCI World UCITS ETF USD 1,552,561 49,076 2.54

49,076 2.54

Health CareMedtronic 84,571 5,501 0.29Shire 65,969 3,120 0.16

8,621 0.45

71


HoldingMarket Value

£'000% of

Net Assets


IRELAND (continued) 3.96IndustrialsEaton 82,337 4,905 0.25Experian 360,400 5,817 0.30Ingersoll-Rand 126,071 8,190 0.42

18,912 0.97

TOTAL IRELAND 76,609 3.96

ISRAEL (0.44%, 31/03/2016 0.19%) 0.44Health CareTeva Pharmaceutical Industries 33,794 890 0.05

890 0.05

TechnologyCheck Point Software Technologies 90,971 7,533 0.39

7,533 0.39

TOTAL ISRAEL 8,423 0.44

ITALY (0.10%, 31/03/2016 0.45%) 0.10FinancialsUniCredit 156,078 1,917 0.10

1,917 0.10

TOTAL ITALY 1,917 0.10

JAPAN (7.49%, 31/03/2016 7.98%) 7.49Basic MaterialsMitsubishi Gas Chemical 88,500 1,469 0.08Mitsui Chemicals 448,000 1,766 0.09Shin-Etsu Chemical 14,779 1,023 0.05Teijin 208,171 3,136 0.16

7,394 0.38

Consumer GoodsAisin Seiki 100,365 3,935 0.20Bandai Namco 177,897 4,247 0.22Bridgestone 177,459 5,738 0.30Daiwa House Industry 63,900 1,466 0.07Japan Tobacco 213,645 5,549 0.29Mazda Motor 183,100 2,108 0.11Panasonic 372,515 3,365 0.17Sekisui House 159,592 2,098 0.11Toyota Motor 227,121 9,852 0.51

38,358 1.98

Consumer ServicesEast Japan Railway 66,309 4,615 0.24Seven & I 128,512 4,025 0.21

8,640 0.45

FinancialsDaito Trust Construction 56,694 6,227 0.32Iida 84,848 1,041 0.05Mitsubishi UFJ Financial 753,500 3,786 0.20Mizuho Financial 1,148,900 1,682 0.09ORIX 541,127 6,399 0.33Sumitomo Mitsui Financial 145,629 4,230 0.22

23,365 1.21

72


HoldingMarket Value

£'000% of

Net Assets


JAPAN (continued) 7.49Health CareAstellas Pharma 1,050,982 11,063 0.57Daiichi Sankyo 116,600 2,099 0.11

13,162 0.68

IndustrialsAmada 1,293,949 11,809 0.61Asahi Glass 1,139,285 7,379 0.38Daikin Industries 44,877 3,603 0.19Mitsubishi Heavy Industries 1,176,385 3,771 0.19Mitsubishi Materials 93,996 2,271 0.12Nabtesco 99,530 2,108 0.11Sumitomo 579,800 6,233 0.32

37,174 1.92

TechnologyFujifilm 45,999 1,436 0.07Konica Minolta 152,104 1,086 0.06Seiko Epson 81,359 1,369 0.07

3,891 0.20

TelecommunicationsNippon Telegraph & Telephone 102,445 3,495 0.18NTT DOCOMO 212,800 3,961 0.21

7,456 0.39

UtilitiesChubu Electric Power 508,830 5,448 0.28

5,448 0.28

TOTAL JAPAN 144,888 7.49

0.00LUXEMBOURG (0.00%, 31/03/2016 0.18%) FinancialsAberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊ 1 1 0.00

1 0.00

TOTAL LUXEMBOURG 1 0.00

MEXICO (0.10%, 31/03/2016 0.10%) 0.10Consumer GoodsFomento Economico Mexicano ADR 26,177 1,902 0.10

1,902 0.10

TOTAL MEXICO 1,902 0.10

NETHERLANDS (2.20%, 31/03/2016 1.51%) 2.20Basic MaterialsKoninklijke DSM 82,156 4,462 0.23LyondellBasell Industries 51,078 3,743 0.19

8,205 0.42

Consumer ServicesKoninklijke Ahold Delhaize 258,691 4,375 0.23

4,375 0.23

FinancialsING 566,213 6,814 0.35

6,814 0.35

73


HoldingMarket Value

£'000% of

Net Assets


NETHERLANDS (continued) 2.20IndustrialsKoninklijke Vopak 136,810 4,771 0.25Randstad 148,052 6,837 0.35

11,608 0.60

Oil & GasRoyal Dutch Shell 'A' Shares 259,742 5,490 0.28

5,490 0.28

TelecommunicationsKoninklijke KPN 2,570,470 6,142 0.32

6,142 0.32

TOTAL NETHERLANDS 42,634 2.20

NORWAY (0.00%, 31/03/2016 0.15%) 0.00

PORTUGAL (0.00%, 31/03/2016 0.07%) 0.00

SINGAPORE (0.68%, 31/03/2016 0.70%) 0.68Consumer ServicesGenting Singapore 2,472,800 1,450 0.07

1,450 0.07

FinancialsCity Developments 1,203,036 7,045 0.36Oversea-Chinese Banking 847,694 4,731 0.25

11,776 0.61

TOTAL SINGAPORE 13,226 0.68

SOUTH KOREA (0.10%, 31/03/2016 0.10%) 0.10TechnologyNAVER 3,134 1,924 0.10

1,924 0.10

TOTAL SOUTH KOREA 1,924 0.10

SPAIN (1.41%, 31/03/2016 0.86%) 1.41FinancialsCaixaBank (Frankfurt listing) 604,601 2,074 0.11Mapfre 1,574,405 4,336 0.23

6,410 0.34

IndustrialsACS Actividades de Construccion y Servicios 93,458 2,542 0.13Amadeus IT 'A' Shares 334,923 13,549 0.70

16,091 0.83

UtilitiesEndesa 251,223 4,682 0.24

4,682 0.24

TOTAL SPAIN 27,183 1.41

74


HoldingMarket Value

£'000% of

Net Assets


SWEDEN (1.62%, 31/03/2016 1.36%) 1.62Consumer GoodsElectrolux 'B' Shares 117,421 2,618 0.14Swedish Match 374,481 9,737 0.50

12,355 0.64

FinancialsInvestor 222,258 7,454 0.39Nordea Bank 471,545 4,322 0.22

11,776 0.61

Health CareGetinge 128,121 1,795 0.09

1,795 0.09

IndustrialsAtlas Copco 'A' Shares 191,673 5,396 0.28

5,396 0.28

TOTAL SWEDEN 31,322 1.62

SWITZERLAND (2.72%, 31/03/2016 3.61%) 2.72Consumer GoodsNestlé 269,115 16,573 0.86

16,573 0.86

FinancialsUBS 222,977 2,856 0.15Zurich Insurance 9,203 1,970 0.10

4,826 0.25

Health CareNovartis 206,135 12,372 0.64Roche 76,409 15,782 0.81

28,154 1.45

IndustrialsAdecco 54,239 3,077 0.16

3,077 0.16

TOTAL SWITZERLAND 52,630 2.72

TAIWAN (0.09%, 31/03/2016 0.10%) 0.09TechnologyTaiwan Semiconductor Manufacturing 359,000 1,796 0.09

1,796 0.09

TOTAL TAIWAN 1,796 0.09

UNITED KINGDOM (12.15%, 31/03/2016 13.84%) 12.15Basic MaterialsJohnson Matthey 79,783 2,440 0.12Rio Tinto 402,794 12,889 0.67

15,329 0.79

Consumer GoodsBritish American Tobacco 205,482 10,868 0.56Fiat Chrysler Automobiles 395,421 3,473 0.18GKN 461,884 1,679 0.09Tate & Lyle 462,122 3,561 0.18

19,581 1.01

75


HoldingMarket Value

£'000% of

Net Assets


UNITED KINGDOM (continued) 12.15Consumer ServicesCompass 204,089 3,059 0.16WM Morrison Supermarkets 1,881,955 4,490 0.23WPP 345,526 5,971 0.31

13,520 0.70

Financials3i 474,680 3,513 0.18Aon 97,857 9,310 0.48Hargreaves Lansdown 127,284 1,646 0.08HSBC 266,382 1,741 0.09Legal & General 610,957 1,507 0.08Lloyds Banking† 4,076,510 2,701 0.14Scottish Widows Emerging Markets Fund X Acc† 63,964,759 141,170 7.30Standard Chartered 201,120 1,534 0.08

163,122 8.43

IndustrialsBAE Systems 529,691 3,430 0.18Pentair 110,800 5,595 0.29Rolls-Royce 380,054 2,873 0.15

11,898 0.62

Oil & GasRoyal Dutch Shell 'B' Shares 155,750 3,444 0.18

3,444 0.18

TechnologySage 565,403 3,579 0.18

3,579 0.18

TelecommunicationsVodafone 752,676 1,567 0.08

1,567 0.08

UtilitiesCentrica 1,409,173 3,047 0.16

3,047 0.16

TOTAL UNITED KINGDOM 235,087 12.15

UNITED STATES (52.09%, 31/03/2016 52.74%) 52.09Basic MaterialsArconic 207,013 4,414 0.23Celanese 8,758 632 0.03Ecolab 51,736 5,207 0.27Praxair 64,810 6,173 0.32

16,426 0.85

Consumer GoodsArcher Daniels Midland 204,397 7,567 0.39Coca-Cola 17,439 596 0.03Electronic Arts 28,170 2,042 0.11General Mills 40,797 1,935 0.10General Motors 70,634 2,009 0.10Harley-Davidson 42,179 2,066 0.11JM Smucker 94,115 9,916 0.51Lear 38,645 4,386 0.23PepsiCo 197,656 17,806 0.92Philip Morris International 178,594 16,280 0.84

76


HoldingMarket Value

£'000% of

Net Assets


UNITED STATES (continued) 52.09Consumer Goods (continued)Procter & Gamble 151,240 10,954 0.57PVH 51,152 4,256 0.22Tyson Foods 143,686 7,112 0.37

86,925 4.50

Consumer ServicesAmazon.com 21,778 15,324 0.79Best Buy 196,126 7,651 0.40Cardinal Health 17,813 1,168 0.06Comcast 'A' Shares 499,238 15,038 0.78Costco Wholesale 27,365 3,689 0.19CVS Health 187,109 11,848 0.61Delta Air Lines 101,447 3,769 0.20Discovery Communications 'A' Shares 111,465 2,568 0.13Hilton Worldwide 47,932 2,262 0.12Home Depot 108,692 12,826 0.66Liberty Interactive 72,160 1,153 0.06Lowe's 142,152 9,394 0.49McDonald's 17,372 1,804 0.09McKesson 53,218 6,388 0.33Ross Stores 30,717 1,643 0.09Target 140,207 6,219 0.32Thomson Reuters 212,594 7,406 0.38Time Warner 133,471 10,508 0.54TJX 107,782 6,904 0.36Wal-Mart Stores 185,955 10,689 0.55Wyndham Worldwide 39,714 2,714 0.14Yum! Brands 58,230 2,993 0.15

143,958 7.44

FinancialsAGNC Investment* 409,202 6,552 0.34American Express 152,498 9,699 0.50American International 67,250 3,379 0.18American Tower* 45,969 4,463 0.23AvalonBay Communities* 58,114 8,552 0.44Bank of America 694,916 13,321 0.69Bank of New York Mellon 54,808 2,092 0.11Berkshire Hathaway 35,750 4,805 0.25Charles Schwab 153,362 5,068 0.26Citigroup 159,918 7,771 0.40Eaton Vance 55,388 1,996 0.10Goldman Sachs 9,093 1,687 0.09Intercontinental Exchange 156,770 7,557 0.39JPMorgan Chase 265,119 18,955 0.98KeyCorp 611,942 8,841 0.46Kimco Realty* 163,867 2,888 0.15Liberty Property Trust* 71,707 2,195 0.11M&T Bank 55,274 6,953 0.36Moody's 31,263 2,802 0.14Morgan Stanley 194,738 6,792 0.35National Retail Properties* 39,552 1,384 0.07Navient 170,711 2,037 0.11Prudential Financial 90,124 7,766 0.40S&P Global 55,640 5,781 0.30SL Green Realty* 33,203 2,804 0.14SunTrust Banks 117,080 5,272 0.27US Bancorp 167,346 7,003 0.36Visa 89,400 6,389 0.33

77


HoldingMarket Value

£'000% of

Net Assets


UNITED STATES (continued) 52.09Financials (continued)Wells Fargo 378,151 17,079 0.88Welltower* 63,424 3,604 0.19Western Union 82,679 1,361 0.07

186,848 9.65

Health CareAbbVie 103,869 5,459 0.28Aetna 21,929 2,235 0.11Allergan 16,460 3,170 0.16Amgen 66,828 8,822 0.46Anthem 22,528 3,022 0.16Baxter International 281,559 11,812 0.61Biogen 5,499 1,188 0.06Cigna 13,003 1,541 0.08Edwards Lifesciences 16,213 1,222 0.06Express Scripts 19,131 1,023 0.05Gilead Sciences 328,068 17,791 0.92HCA 22,137 1,586 0.08Hologic 48,964 1,679 0.09Humana 7,939 1,319 0.07Johnson & Johnson 225,616 22,582 1.17Merck 115,221 5,872 0.30Pfizer 516,893 14,254 0.74Quest Diagnostics 55,470 4,381 0.23Thermo Fisher Scientific 54,259 6,706 0.35United Therapeutics 46,303 5,068 0.26UnitedHealth 122,741 16,260 0.84Waters 8,938 1,122 0.06

138,114 7.14

IndustrialsArrow Electronics 25,859 1,534 0.08Danaher 105,477 7,259 0.38Flex 201,846 2,722 0.14General Electric 226,991 5,445 0.28Honeywell International 102,356 10,309 0.53Illinois Tool Works 46,293 4,929 0.26Jacobs Engineering 160,802 7,142 0.37L3 Technologies 32,789 4,387 0.23Northrop Grumman 10,476 2,011 0.10Packaging Corp of America 60,134 4,399 0.23Union Pacific 17,659 1,516 0.08United Technologies 129,075 11,655 0.60Verisk Analytics 25,496 1,654 0.09Waste Management 111,124 6,505 0.34Xerox 850,488 5,040 0.26

76,507 3.97

Oil & GasApache 77,468 3,241 0.17Chevron 175,076 15,148 0.78EOG Resources 158,453 12,386 0.64Exxon Mobil 233,522 15,689 0.81Kinder Morgan 182,434 3,138 0.16Marathon Petroleum 28,095 1,131 0.06National Oilwell Varco 25,905 834 0.04Occidental Petroleum 44,938 2,318 0.12

78


HoldingMarket Value

£'000% of

Net Assets


UNITED STATES (continued) 52.09Oil & Gas (continued)Phillips 66 25,569 1,613 0.08Schlumberger 140,545 8,782 0.45Valero Energy 196,983 10,481 0.54

74,761 3.85

TechnologyAlphabet Non-Voting Rights 24,775 16,540 0.86Alphabet Voting Rights 20,728 14,138 0.73ANSYS 54,964 4,713 0.24Apple 385,833 44,593 2.31Applied Materials 212,341 6,630 0.34Cisco Systems 593,247 16,074 0.83Cognizant Technology Solutions 'A' Shares 240,079 11,423 0.59Corning 474,446 10,493 0.54F5 Networks 35,000 4,004 0.21Facebook 117,539 13,442 0.69Hewlett Packard Enterprise 66,408 1,260 0.07HP 588,313 8,334 0.43Intel 188,277 5,405 0.28International Business Machines 46,239 6,456 0.33Lam Research 69,414 7,174 0.37Microsoft 375,827 19,829 1.03NetApp 54,949 1,849 0.10Nvidia 68,382 6,006 0.31Oracle 429,969 15,424 0.80Qualcomm 132,589 6,090 0.32Seagate Technology 18,372 695 0.04Skyworks Solutions 90,688 7,147 0.37Texas Instruments 240,461 15,649 0.81Western Digital 15,498 1,042 0.05Xilinx 88,183 4,098 0.21

248,508 12.86

TelecommunicationsAT&T 263,088 8,823 0.46CenturyLink 208,635 3,919 0.20Verizon Communications 362,114 14,266 0.74

27,008 1.40

UtilitiesConsolidated Edison 90,683 5,660 0.29FirstEnergy 110,470 2,782 0.14

8,442 0.43

TOTAL UNITED STATES 1,007,497 52.09

DERIVATIVES (-0.06%, 31/03/2016 0.00%) (0.06)Futures ContractsS&P 500 E Mini Index Futures June 2017 313 (62) (0.01)

(62) (0.01)

Forward Currency ContractsBought USD9,637,334 for GBP7,713,261 Settlement 21/06/2017 - 12 0.00Bought USD957,000 for GBP787,071 Settlement 21/06/2017 - (20) 0.00Bought USD2,134,000 for GBP1,750,185 Settlement 21/06/2017 - (39) 0.00Bought USD7,798,230 for GBP6,399,404 Settlement 21/06/2017 - (149) (0.01)Bought USD26,898,570 for GBP22,091,013 Settlement 21/06/2017 - (530) (0.03)

79


HoldingMarket Value

£'000% of

Net Assets


DERIVATIVES (continued) (0.06)Forward Currency Contracts (continued)Sold USD2,240,000 for GBP1,833,869 Settlement 21/06/2017 - 38 0.00Sold USD1,895,000 for GBP1,549,298 Settlement 21/06/2017 - 30 0.00Sold USD2,113,000 for GBP1,689,394 Settlement 21/06/2017 - (4) 0.00Sold USD4,280,000 for GBP3,426,914 Settlement 21/06/2017 - (4) 0.00

(666) (0.04)

OptionsEURO STOXX 50 PR Options 3475 Call April 2017 (63) (19) 0.00EURO STOXX 50 PR Options 3500 Call April 2017 (99) (20) 0.00EURO STOXX 50 PR Options 3525 Call April 2017 (144) (19) 0.00EURO STOXX 50 PR Options 3550 Call April 2017 (166) (14) 0.00EURO STOXX 50 PR Options 3575 Call April 2017 (61) (3) 0.00EURO STOXX 50 PR Options 3550 Call May 2017 (38) (12) 0.00EURO STOXX 50 PR Options 3575 Call May 2017 (123) (30) 0.00EURO STOXX 50 PR Options 3600 Call May 2017 (60) (11) 0.00FTSE 100 Index Options 7450 Call April 2017 (18) (2) 0.00FTSE 100 Index Options 7500 Call April 2017 (15) (1) 0.00FTSE 100 Index Options 7525 Call May 2017 (29) (8) 0.00FTSE 100 Index Options 7550 Call May 2017 (61) (13) 0.00FTSE 100 Index Options 7600 Call May 2017 (51) (7) 0.00FTSE 100 Index Options 7650 Call May 2017 (30) (3) 0.00FTSE 100 Index Options 7600 Call June 2017 (29) (8) 0.00FTSE 100 Index Options 7600 Call June 2017 (15) (2) 0.00FTSE 100 Index Options 7775 Call June 2017 (16) (1) 0.00S&P 500 Index Options 2400 Call May 2017 (33) (42) 0.00S&P 500 Index Options 2410 Call May 2017 (33) (32) 0.00S&P 500 Index Options 2420 Call May 2017 (119) (91) (0.01)S&P 500 Index Options 2450 Call May 2017 (128) (41) 0.00S&P 500 Index Options 2450 Call June 2017 (36) (28) 0.00S&P 500 Index Options 2455 Call June 2017 (66) (47) 0.00S&P 500 Index Options 2475 Call June 2017 (66) (30) 0.00

(484) (0.01)

TOTAL DERIVATIVES (1,212) (0.06)

Portfolio of investments^ 1,930,673 99.82

Net other assets 3,466 0.18

Total net assets 1,934,139 100.00

*Real Estate Investment Trust.†This investment is a related party (see note 14).◊Asset managed by the Fund's Investment Adviser.


Stocks shown as ADR's represent American Depositary Receipts.Derivatives can be exchange traded or Over the Counter (OTC) contracts.

Holdings are denominated in Sterling unless otherwise stated.All holdings are ordinary shares or stock units and admitted to official stock exchange listings unless otherwise stated.

80



1) Global Data

Proportion of securities and commodities on loan as at 31 March 2017 £'000 % Total lendable assets excluding cash and cash equivalents: 1,682,341Securities and commodities on loan 53,874 3.20%

Assets engaged in SFTs and total return swaps as at 31 March 2017 £'000 % Fund assets under management (AUM) 1,961,809



Top 10 collateral issuersName and value of collateral and commodities received as at 31 March 2017 £'000United States of America Treasury 17,212Republic of France 6,166Federal Republic of Germany 4,984Government of United Kingdom 1,519Banco Bilbao Vizcaya Argentaria 1,082Danske Bank 1,062Kingdom of Netherlands 1,005Paddy Power Betfair 801Kingdom of Belgium 798Reynolds American 583

Top 10 counterpartiesName and value of outstanding transactions as at 31 March 2017 £'000Securities lendingUBS 34,019Credit Suisse Securities (Europe) 13,083Citigroup Global Markets (UK) 4,523HSBC Bank 2,249


Type, quality and currency of collateral as at 31 March 2017Type Quality Currencies £'000Securities lendingEquity Traded on recognised exchange Sterling 5,633Equity Traded on recognised exchange Australian dollar 385Equity Traded on recognised exchange Canadian dollar 126Equity Traded on recognised exchange Danish krone 1,209Equity Traded on recognised exchange Euro 6,735Equity Traded on recognised exchange Hong Kong dollar 925Equity Traded on recognised exchange Norwegian krone 337Equity Traded on recognised exchange Singapore dollar 5Equity Traded on recognised exchange Swedish krona 235Equity Traded on recognised exchange Swiss franc 653Equity Traded on recognised exchange US dollar 9,637Fixed Income Investment Grade Sterling 1,519Fixed Income Investment Grade Euro 12,954Fixed Income Investment Grade US dollar 17,211

Total collateral held 57,564


as at 31 March 2017

81


Securities Financing Transactions (SFT) (continued)International Growth Fund

as at 31 March 2017


Type

Less than one day

£'000



£'000

One to three

months£'000

Three months to

one year£'000

Above one year

£'000

Open maturity

£'000Total£'000

Securities lending - - 915 1,398 2,999 26,372 25,880 57,564- - 915 1,398 2,999 26,372 25,880 57,564

Counterparty details as at 31 March 2017 TotalType £'000Securities lending Switzerland Bi-lateral 23,283Securities lending United Kingdom Bi-lateral 5,692Securities lending Switzerland Tri-party 13,143Securities lending United Kingdom Tri-party 15,446Total collateral held 57,564


Type

Less than one day

£'000



£'000

One to three

months£'000

Three months to

one year£'000

Above one year

£'000

Open maturity

£'000Total£'000





Names and value of custodians safekeeping collateral as at 31 March 2017 £'000State Street 28,974JP Morgan 21,916Bank of New York 4,302Crest 2,372









82


International Growth FundStatement of total returnfor the year ended 31 March 2017

01/04/16 to 31/03/17 01/04/15 to 31/03/16Notes £'000 £'000 £'000 £'000

Income


Revenue 4 51,386 46,092

Expenses 5 (8,523) (9,301)



Taxation 6 (4,620) (4,627)



Distributions 7 (38,221) (32,157)



01/04/16 to 31/03/17 01/04/15 to 31/03/16£'000 £'000 £'000 £'000

Opening net assets attributable to shareholders 1,621,869 1,923,172


(155,171) (214,703)



Retained distributions on accumulation shares 9,130 5,241

Closing net assets attributable to shareholders 1,934,139 1,621,869


83


International Growth FundBalance sheetas at 31 March 2017

31/03/17 31/03/16Notes £'000 £'000

ASSETSFixed assets:

Investments 1,931,965 1,640,125

Current assets:Debtors 8 62,623 5,209Cash and bank balances 9 21,305 4,746

Total assets 2,015,893 1,650,080

LIABILITIESInvestment liabilities 1,292 180

CreditorsBank overdrafts 9 76 127Distribution payable 27,257 24,360Other creditors 11 53,129 3,544


Net assets attributable to shareholders 1,934,139 1,621,869


84


Japanese FundInvestment markets overview


Investment policy

UCITS scheme


1 2 3 4 5 6 7

Investment review


% % % % %34.46 (3.73) 27.68 (3.11) 15.63Japanese Fund

The Fund is ranked at 6* because it has experienced high levels of volatility over the past 5 years.

* As disclosed in the key investor information document dated 13 January 2017.




The investment objective of the Japanese Fund is to achieve long term capital growth from investments in a broad range of Japanese companies. TheFund seeks to deliver performance, before deduction of management fees, in excess of the MSCI Japan Index (the “Index”) with a similar level of overallvolatility, over the long term.

To invest predominantly in a portfolio of companies which are part of the Index. This will involve investing in equities and may also include derivatives.


Derivatives may also be used for efficient portfolio management.






85


Japanese FundInvestment markets overview (continued)

While Japanese equities made a positive return over the 12-month reporting period, they lagged behind other developed equity markets in local currencyterms. Nevertheless, returns for sterling-based investors were magnified by the pound’s decline against the yen in the aftermath of the vote to leave theEuropean Union. At the sector level, the best performers included energy resources and machinery. Conversely, real estate and electric power & gaslagged behind.



In November, Japanese Prime Minister Shinzo Abe called for companies to raise 2017 wages after the pace of wage increases in 2016 slowed for the firsttime since he came to power. Mr Abe became the second world leader to make an official visit to President Trump in Washington in February 2017. MrTrump was keen to emphasise the benefits of the close ties between the two countries and the duo are said to have discussed Japanese companies’plans for US investment.

Japan’s consumer inflation rose for a second consecutive month in February, after a year of contraction, while industrial output recovered from a surprisedrop the month before. Meanwhile, the unemployment rate reached the lowest level since 1994.

Over the period, the Fund benefited from its comparatively smaller (in relation to the benchmark) position in ONO Pharmaceutical. The company’s shareprice slumped over the 12-month period, after a lung cancer drug the company was working on with partner Bristol-Myers Squibb failed a late-stage study.The company registered a negative score based on the team’s analyst sentiment metrics.

Additionally, the relatively overweight position in Brother Industries, a communications and office equipment manufacturer, helped performance over theperiod. The stock soared as investors become increasingly confident that the company’s management can deliver on their cost control targets. BrotherIndustries scored highly according to team’s financial strength metrics.

In contrast, the comparatively bigger position in Mazda Motor had a negative influence on returns. The stock underperformed the broader market becauseof concerns about President Trump’s comments on free trade. Approximately one third of Mazda’s global sales are exports to the US market. Thecompany registered a positive score based our measures of value.

We expect Japanese gross domestic product growth of 1.4% in 2017, as improving global demand and a weak yen lead to robust growth in exports.Moreover, fiscal and monetary policy should remain supportive, with government infrastructure spending set to rise. The recent improvement in consumerconfidence, government cash hand-outs and solid employment growth should support household spending. However, sluggish wage growth could act asa drag.

86


Comparative table

Share Class A






Share Class C







Japanese Fund

31/03/17(p)

31/03/16(p)

31/03/15(p)

12.38 (1.36) 8.30(0.22) (0.19) (0.17)

36.53 38.60 30.96

47.87 36.53 38.60(0.82) (0.52) (0.49)12.16 (1.55) 8.13

- - -

0.50% 0.50% 0.50%

292 223 236611,155 611,155 611,155

33.29% (4.02%) 26.26%


50.36 40.44 40.0035.47 33.15 29.57

0.01% 0.00% 0.00%

31/03/17(p)

31/03/16(p)

31/03/15(p)

(0.75) (0.70) (0.63)

43.77 46.10 36.8915.08 (1.63) 9.84

58.10 43.77 46.10

- - -

0.78 0.13 0.17

14.33 (2.33) 9.21(0.78) (0.13) (0.17)

32.74% (5.05%) 24.97%

1.44% 1.58% 1.59%

1,523 1,311 1,4872,621,000 2,996,000 3,226,000


60.15 48.25 47.1842.52 39.24 35.13

0.01% 0.00% 0.00%

87




Japanese Fund

Share Class F






Share Class G






31/03/17(p)

31/03/16(p)

31/03/15(p)

(0.52) (0.44) (0.39)

33.33 35.00 27.9411.30 (1.23) 7.45

44.11 33.33 35.00

- - -

0.47 0.19 0.21

10.78 (1.67) 7.06(0.47) (0.19) (0.21)

32.34% (4.77%) 25.27%

1.31% 1.30% 1.30%

1,019 804 9892,311,000 2,411,000 2,826,000


45.63 36.65 35.8332.37 29.87 26.63

0.01% 0.00% 0.00%

31/03/17(p)

31/03/16(p)

31/03/15(p)

(0.40) (0.36) (0.35)

34.21 35.82 28.5311.56 (1.25) 7.64

45.37 34.21 35.82

- - -

0.43 0.30 0.28

11.16 (1.61) 7.29(0.43) (0.30) (0.28)

32.62% (4.49%) 25.55%

1.06% 1.04% 1.05%

839 4,606 5,1151,849,000 13,464,000 14,280,000


47.00 37.53 36.6733.20 30.63 27.21

0.01% 0.00% 0.00%

88




Japanese Fund

Share Class I






Share Class P□






31/03/17(p)

31/03/16(p)

31/03/15(p)

- - -

36.56 38.65 30.9812.41 (1.38) 8.31

47.94 36.56 38.65

- - -

12.41 (1.38) 8.31(1.03) (0.71) (0.64)

33.94% (3.57%) 26.82%

0.00% 0.00% 0.00%

96,302 80,232 92,860200,887,612 219,432,612 240,287,612


50.64 40.49 40.1935.49 33.33 29.59

0.01% 0.00% 0.00%

31/03/17(p)

(0.98)0.20

99.16

99.94

0.01

0.81

(0.78)(0.81)

(0.78%)

0.91%

2020,000


102.6099.26

0.01%

89




Japanese Fund

Share Class Q□






Share Class R□






31/03/17(p)

(0.86)

99.940.08

99.16

0.01

0.81

(0.78)(0.81)

(0.78%)

0.81%

2020,000


102.6099.27

0.01%

31/03/17(p)

(0.58)

99.94(0.18)

99.18

0.01

0.83

(0.76)(0.83)

(0.76%)

0.56%

2525,000


102.6099.29

0.01%

90




Japanese Fund

Share Class SW1**






31/03/17(p)

31/03/16(p)

31/03/15(p)

- (0.86) (0.76)

80.49 84.32 67.15(0.45) (2.97) 17.93

- 80.49 84.32

- - -

- 0.69 0.67(80.04) - -

(0.45) (3.83) 17.17- (0.69) (0.67)

- (4.54%) 25.57%

- 1.05% 1.06%

- 36 38- 45,000 45,000


85.51 88.30 86.2978.16 72.09 64.03

0.01% 0.00% 0.00%

91


Japanese FundMaterial portfolio changes

Cost ProceedsMajor purchases £'000 Major sales £'000 Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊# 19,894 Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊# 17,499TOPIX Index Futures December 2016 9,352 TOPIX Index Futures September 2016 9,710TOPIX Index Futures September 2016 9,345 TOPIX Index Futures March 2017 9,332TOPIX Index Futures March 2017 8,677 TOPIX Index Futures December 2016 9,162TOPIX Index Futures June 2017 5,078 TOPIX Index Futures June 2016 6,941TOPIX Index Futures June 2016 4,569 NTT DOCOMO 1,103Sumitomo 1,300 Toyota Motor 1,035Daito Trust Construction 1,093 Nippon Telegraph & Telephone 710ORIX 633 KDDI 679Fuji Heavy Industries 606 SoftBank 660



92


HoldingMarket Value

£'000% of

Net AssetsBASIC MATERIALS (5.86%, 31/03/2016 4.72%) 5.86ChemicalsAsahi Kasei 102,872 798 0.80Daicel 672 6 0.01Hitachi Chemical 7,938 175 0.17Kaneka 14,000 83 0.08Kuraray 31,430 381 0.38Mitsubishi Chemical 165,935 1,026 1.03Mitsubishi Gas Chemical 38,593 640 0.64Mitsui Chemicals 191,000 753 0.75Nitto Denko 6,486 401 0.40Shin-Etsu Chemical 4,054 281 0.28Sumitomo Chemical 144,558 646 0.65Teijin 22,951 346 0.35

5,536 5.54

Forestry & PaperOji 35,000 131 0.13

131 0.13

Industrial Metals & MiningHitachi Metals 2,082 23 0.02Nippon Steel & Sumitomo Metal 9,500 175 0.17

198 0.19

TOTAL BASIC MATERIALS 5,865 5.86

CONSUMER GOODS (26.43%, 31/03/2016 24.94%) 26.43Automobiles & PartsAisin Seiki 2,200 86 0.09Bridgestone 45,904 1,484 1.48Denso 8,392 295 0.30Fuji Heavy Industries 46,841 1,373 1.37Honda Motor 97,500 2,345 2.35JTEKT 26,065 323 0.32Koito Manufacturing 500 21 0.02Mazda Motor 96,100 1,106 1.11Mitsubishi Motors 77,400 372 0.37Nissan Motor 19,347 149 0.15NOK 22,000 408 0.41NSK 65,000 743 0.74Sumitomo Electric Industries 62,487 828 0.83Sumitomo Rubber Industries 47,053 641 0.64Suzuki Motor 18,782 623 0.62Toyota Industries 10,790 428 0.43Toyota Motor 86,725 3,762 3.76Yokohama Rubber 5,100 80 0.08

15,067 15.07

BeveragesAsahi 16,514 499 0.50Coca-Cola Bottlers Japan 5,100 131 0.13Kirin 38,918 587 0.59Suntory Beverage & Food 4,724 159 0.16

1,376 1.38

Food ProducersAjinomoto 25,458 402 0.40MEIJI 1,900 126 0.13NH Foods 24,177 519 0.52Nisshin Seifun 8,100 97 0.10

Japanese FundPortfolio statement as at 31 March 2017

93


HoldingMarket Value

£'000% of

Net Assets

Japanese FundPortfolio statement (continued)as at 31 March 2017

CONSUMER GOODS (continued) 26.43Food Producers (continued)Toyo Suisan Kaisha 21,036 625 0.62Yakult Honsha 400 18 0.02Yamazaki Baking 25,432 418 0.42

2,205 2.21

Household Goods & Home ConstructionCasio Computer 12,773 142 0.14Daiwa House Industry 37,600 863 0.86Makita 4,000 112 0.11Nikon 25,876 300 0.30Panasonic 96,344 870 0.87Rinnai 85 5 0.00Sekisui Chemical 38,872 522 0.52Sony 45,271 1,222 1.22

4,036 4.02

Leisure GoodsBandai Namco 20,075 479 0.48Konami 2,100 71 0.07Nintendo 3,100 575 0.57Sega Sammy 18,700 200 0.20Shimano 1,600 187 0.19Yamaha 4,800 106 0.11

1,618 1.62

Personal GoodsKao 9,856 432 0.43Kose 2,300 166 0.17Lion 10,000 144 0.14Unicharm 6,900 132 0.13

874 0.87

TobaccoJapan Tobacco 48,533 1,261 1.26

1,261 1.26

TOTAL CONSUMER GOODS 26,437 26.43

CONSUMER SERVICES (8.60%, 31/03/2016 9.95%) 8.60Food & Drug RetailersFamilyMart 7,091 338 0.34Lawson 9,443 512 0.51Sundrug 13,800 370 0.37Tsuruha 1,500 111 0.11

1,331 1.33

General RetailersBenesse 12,625 315 0.32DeNA 4,300 70 0.07Fast Retailing 900 225 0.23J Front Retailing 100 1 0.00Kakaku.com 100 1 0.00Nitori 2,200 222 0.22Ryohin Keikaku 900 158 0.16Seven & I 37,160 1,164 1.16Shimamura 3,300 348 0.35

94


HoldingMarket Value

£'000% of

Net Assets


CONSUMER SERVICES (continued) 8.60General Retailers (continued)Start Today 2,900 51 0.05Takashimaya 36,000 252 0.25Yamada Denki 43,120 172 0.17

2,979 2.98

MediaDai Nippon Printing 42,972 370 0.37Hakuhodo DY 51,600 489 0.49Toho 3,900 83 0.08

942 0.94

Travel & LeisureANA 693 2 0.00Central Japan Railway 9,973 1,298 1.30East Japan Railway 11,484 799 0.80Japan Airlines 23,500 595 0.59McDonald's (Tokyo Listing) 276 6 0.01Oriental Land 5,500 252 0.25Sankyo 11,460 306 0.31West Japan Railway 1,714 89 0.09

3,347 3.35

TOTAL CONSUMER SERVICES 8,599 8.60

FINANCIALS (19.87%, 31/03/2016 19.24%) 19.87BanksAozora Bank 47,694 140 0.14Chiba Bank 21,217 109 0.11Concordia Financial 49,600 184 0.18Fukuoka Financial 67,358 233 0.23Hiroshima Bank‡ 145 0 0.00Japan Post Bank 16,300 162 0.16Mebuki Financial 41,100 131 0.13Mitsubishi UFJ Financial 499,238 2,508 2.51Mizuho Financial 831,015 1,217 1.22Resona 86,004 369 0.37Seven Bank‡ 7 0 0.00Shinsei Bank 78,944 116 0.12Sumitomo Mitsui Financial 53,358 1,550 1.55Sumitomo Mitsui Trust 13,154 365 0.37Suruga Bank 300 5 0.00Yamaguchi Financial 14,686 127 0.13

7,216 7.22

Financial ServicesAeon Financial Services 5,157 78 0.08Credit Saison 14,496 207 0.21Daiwa Securities 84,735 413 0.41Japan Exchange 17,000 193 0.19Mitsubishi UFJ Lease & Finance 21,570 86 0.09Nomura 114,825 570 0.57ORIX 89,590 1,060 1.06SBI 9,315 104 0.10

2,711 2.71

95


HoldingMarket Value

£'000% of

Net Assets


FINANCIALS (continued) 19.87Life InsuranceDai-ichi Life Insurance 37,100 532 0.53Japan Post 19,100 192 0.19Sony Financial 7,010 90 0.09

814 0.81

Non-Equity Investment Instruments Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊δ 3,514 3,514 3.51

3,514 3.51

Non-Life InsuranceMS&AD Insurance 21,452 545 0.55Sompo 16,925 496 0.50Tokio Marine 29,928 1,009 1.01

2,050 2.06

Real Estate Investment & ServicesDaito Trust Construction 11,500 1,263 1.26Iida 33,700 413 0.41Mitsubishi Estate 4,117 60 0.06Mitsui Fudosan 28,745 490 0.49Nomura Real Estate 9,690 123 0.12Sumitomo Realty & Development 16,231 336 0.34Tokyo Tatemono 30,700 323 0.32Tokyu Fudosan 22,600 98 0.10

3,106 3.10

Real Estate Investment TrustDaiwa House REIT Investment 59 122 0.12Japan Prime Realty Investment 7 22 0.02Japan Retail Fund Investment 113 177 0.18Nippon Building Fund 9 39 0.04Nomura Real Estate Master Fund 83 103 0.10

463 0.46

TOTAL FINANCIALS 19,874 19.87

HEALTH CARE (8.12%, 31/03/2016 8.73%) 8.12Health Care Equipment & ServicesTerumo 4,700 130 0.13

130 0.13

Pharmaceuticals & BiotechnologyAlfresa 45,500 630 0.63Astellas Pharma 162,600 1,712 1.71Daiichi Sankyo 68,548 1,234 1.23Eisai 2,210 91 0.09Hisamitsu Pharmaceutical 11,569 528 0.53Medipal 31,412 394 0.39Miraca 7,900 290 0.29Mitsubishi Tanabe Pharma 32,723 544 0.54Ono Pharmaceutical 500 8 0.01Otsuka 19,703 710 0.71Santen Pharmaceutical 2,300 27 0.03Shionogi 12,926 533 0.53Sumitomo Dainippon Pharma 14,000 185 0.19

96


HoldingMarket Value

£'000% of

Net Assets


HEALTH CARE (continued) 8.12Pharmaceuticals & Biotechnology (continued)Suzuken 18,500 485 0.49Taisho Pharmaceutical 7,002 454 0.45Takeda Pharmaceutical 4,391 165 0.17

7,990 7.99

TOTAL HEALTH CARE 8,120 8.12

INDUSTRIALS (20.27%, 31/03/2016 17.89%) 20.27Construction & MaterialsAsahi Glass 37,000 240 0.24Kajima 48,622 253 0.25LIXIL 17,600 357 0.36Obayashi 64,272 480 0.48Shimizu 38,000 272 0.27Taiheiyo Cement 52,572 140 0.14Taisei 89,000 518 0.52TOTO 100 3 0.00

2,263 2.26

Electronic & Electrical EquipmentAlps Electric 14,000 317 0.32Fuji Electric 72,131 342 0.34Hirose Electric 3,100 343 0.34Hitachi 29,903 129 0.13Hoya 14,823 570 0.57Keyence 1,400 448 0.45Kyocera 18,300 814 0.81Minebea 15,000 160 0.16Murata Manufacturing 5,100 580 0.58NGK Insulators 54 1 0.00Nippon Electric Glass 10,547 51 0.05Omron 6,801 238 0.24Yokogawa Electric 33,284 418 0.42

4,411 4.41

General IndustrialsIHI 389 1 0.00Mitsubishi Materials 5,754 139 0.14Toyota Tsusho 15,450 373 0.37

513 0.51

Industrial EngineeringAmada 76,472 698 0.70Daikin Industries 700 56 0.06FANUC 4,813 789 0.79Hitachi Construction Machinery 13,749 274 0.27Hoshizaki Electric 2,200 138 0.14Isuzu Motors 11,400 120 0.12Komatsu 34,037 709 0.71Kubota 20,722 249 0.25MISUMI 1,900 27 0.03Mitsubishi Electric 63,787 731 0.73Mitsubishi Heavy Industries 158,099 507 0.51Nabtesco 7,369 156 0.16Shimadzu 11,318 144 0.14Sumitomo Heavy Industries 122,361 682 0.68THK 8,550 172 0.17

5,452 5.46

97


HoldingMarket Value

£'000% of

Net Assets


INDUSTRIALS (continued) 20.27Industrial TransportationKamigumi 36,600 251 0.25Nippon Express 99,334 408 0.41Nippon Yusen 88,795 150 0.15Yamato 8,600 144 0.14

953 0.95

Support ServicesITOCHU 143,121 1,624 1.62Marubeni 99,100 488 0.49Mitsubishi 41,327 714 0.71Mitsui 39,618 459 0.46Recruit 16,400 669 0.67Secom 8,345 477 0.48Sohgo Security Services 2,700 80 0.08Sumitomo 138,600 1,490 1.49Toppan Printing 83,904 683 0.68

6,684 6.68

TOTAL INDUSTRIALS 20,276 20.27

OIL & GAS (0.06%, 31/03/2016 0.08%) 0.06Oil & Gas ProducersIdemitsu Kosan 2,200 61 0.06TonenGeneral Sekiyu 177 2 0.00

63 0.06

TOTAL OIL & GAS 63 0.06

TECHNOLOGY (5.69%, 31/03/2016 4.92%) 5.69Software & Computer ServicesMixi 3,700 142 0.14NTT Data 4,700 178 0.18Oracle 1,795 82 0.08Otsuka 6,200 269 0.27

671 0.67

Technology Hardware & EquipmentBrother Industries 20,889 349 0.35Canon 55,754 1,390 1.39Fujifilm 37,148 1,159 1.16Fujitsu 87,351 427 0.43Hitachi High-Technologies 11,700 381 0.38Konica Minolta 43,200 309 0.31NEC 219,000 420 0.42Ricoh 18,772 123 0.12Seiko Epson 15,100 254 0.25Tokyo Electron 2,400 209 0.21

5,021 5.02

TOTAL TECHNOLOGY 5,692 5.69

TELECOMMUNICATIONS (4.51%, 31/03/2016 6.70%) 4.51Fixed Line TelecommunicationsNippon Telegraph & Telephone 35,900 1,225 1.22

1,225 1.22

98


HoldingMarket Value

£'000% of

Net Assets


TELECOMMUNICATIONS (continued) 4.51Mobile TelecommunicationsKDDI 76,300 1,601 1.60NTT DOCOMO 22,800 424 0.42SoftBank 22,448 1,267 1.27

3,292 3.29

TOTAL TELECOMMUNICATIONS 4,517 4.51

UTILITIES (1.69%, 31/03/2016 3.32%) 1.69ElectricityChubu Electric Power 58,995 632 0.63Kansai Electric Power 24,422 240 0.24Tokyo Electric Power 77,427 242 0.24

1,114 1.11

Gas, Water & MultiutilitiesOsaka Gas 144,369 438 0.44Tokyo Gas 37,101 135 0.14

573 0.58

TOTAL UTILITIES 1,687 1.69

DERIVATIVES (-0.09%, 31/03/2016 -0.03%) (0.09)Futures ContractsTOPIX Index Futures June 2017 41 (78) (0.08)

(78) (0.08)

Forward Currency ContractsBought JPY22,244,000 for GBP159,927 Settlement 14/06/2017‡ - 0 0.00Bought JPY541,393,674 for GBP3,897,428 Settlement 14/06/2017 - (6) (0.01)Sold JPY15,115,000 for GBP109,666 Settlement 14/06/2017 - 1 0.00Sold JPY30,130,000 for GBP217,328 Settlement 14/06/2017 - 1 0.00Sold JPY15,315,000 for GBP110,147 Settlement 14/06/2017‡ - 0 0.00Sold JPY15,455,000 for GBP111,033 Settlement 14/06/2017‡ - 0 0.00

(4) (0.01)





◊Asset managed by the Fund's Investment Adviser.‡The market value of the holding is below £500 and is therefore rounded down to £0.


δAberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc is domiciled in Luxembourg.

Derivatives can be exchange traded or Over the Counter (OTC) contracts.Holdings are denominated in Sterling unless otherwise stated.All holdings are ordinary shares or stock units and admitted to official stock exchange listings unless otherwise stated.

99



1) Global Data





Top 10 collateral issuersName and value of collateral and commodities received as at 31 March 2017 £'000Government of United Kingdom 2,242United States of America Treasury 455UniCredit 358HSBC 311Republic of France 255Sky 206United Continental 205Netflix 188Tencent 183Goverment of Canada 171

Top 10 counterpartiesName and value of outstanding transactions as at 31 March 2017 £'000Securities lendingUBS 3,445Credit Suisse Securities (Europe) 2,356Merrill Lynch International 856Deutsche Bank 83Citigroup Global Markets 59Morgan Stanley International 20


Type, quality and currency of collateral as at 31 March 2017Type Quality Currencies £'000Securities lendingEquity Traded on recognised exchange Sterling 856Equity Traded on recognised exchange Australian dollar 122Equity Traded on recognised exchange Canadian dollar 76Equity Traded on recognised exchange Danish krone 239Equity Traded on recognised exchange Euro 691Equity Traded on recognised exchange Hong Kong dollar 521Equity Traded on recognised exchange Norwegian krone 9Equity Traded on recognised exchange Swedish krona 3Equity Traded on recognised exchange Swiss franc 7Equity Traded on recognised exchange US dollar 1,489Fixed Income Investment Grade Sterling 2,242Fixed Income Investment Grade Canadian dollar 171Fixed Income Investment Grade Euro 409Fixed Income Investment Grade US dollar 509

Total collateral held 7,344

Japanese Fund

as at 31 March 2017

100


Securities Financing Transactions (SFT) (continued)Japanese Fund

as at 31 March 2017


Type

Less than one day

£'000



£'000

One to three

months£'000

Three months to

one year£'000

Above one year

£'000

Open maturity

£'000Total£'000

Securities lending 54 - 15 16 41 3,205 4,013 7,34454 - 15 16 41 3,205 4,013 7,344

Counterparty details as at 31 March 2017 TotalType £'000Securities lending Switzerland Bi-lateral 276Securities lending United Kingdom Bi-lateral 2,500Securities lending Germany Tri-party 90Securities lending Switzerland Tri-party 3,442Securities lending United Kingdom Tri-party 1,036Total collateral held 7,344


Type

Less than one day

£'000



£'000

One to three

months£'000

Three months to

one year£'000

Above one year

£'000

Open maturity

£'000Total£'000





Names and value of custodians safekeeping collateral as at 31 March 2017 £'000JP Morgan 3,703State Street 2,776Bank of New York 865









101


Japanese FundStatement of total returnfor the year ended 31 March 2017

01/04/16 to 31/03/17 01/04/15 to 31/03/16Notes £'000 £'000 £'000 £'000

Income


Revenue 4 2,488 1,952

Expenses 5 (54) (87)



Taxation 6 (234) (201)






01/04/16 to 31/03/17 01/04/15 to 31/03/16£'000 £'000 £'000 £'000


Amounts receivable on creation of shares 10,305 5,420Amounts payable on cancellation of shares (23,838) (13,776)

(13,533) (8,356)






102


Japanese FundBalance sheetas at 31 March 2017

31/03/17 31/03/16Notes £'000 £'000

ASSETSFixed assets:


Current assets:Debtors 8 955 813Cash and bank balances 9 195 414

Total assets 102,282 88,868

LIABILITIESInvestment liabilities 84 29Provisions for liabilities 10 1 -

CreditorsBank overdrafts 9 54 -Distribution payable 2,081 1,554Other creditors 11 22 73




103


North American FundInvestment markets overview


Investment policy

UCITS scheme


1 2 3 4 5 6 7

Investment review


% % % % %35.20 2.61 30.40 11.77 21.07North American Fund


* As disclosed in the key investor information document dated 13 January 2017.




After Donald Trump’s seemingly improbable victory in the country’s presidential election, US markets reached a series of record highs. At one point, allfour of the major US equity indices reached new peaks - the first time this has happened since the middle of the dotcom boom. More recently, shareprices were held back by concerns that the Trump administration might not have adequate support in Congress to push through its economic stimulusplans. However, there was also evidence that the country’s economy is continuing to perform well for the time being, with consumer confidence reachinga 16-year high.

The investment objective of the North American Fund is to achieve capital growth in the long term by investing predominantly in North Americancompanies. The Fund seeks to deliver performance, before deduction of management fees, in excess of the S&P 500 Index (the “Index”) with a similarlevel of overall volatility, over the long term.

To invest predominantly in a portfolio of companies which are part of the Index.








US equity markets performed well over the 12 months to 31 March 2017. At the sector level the best performers were financials and technology.Conversely, telecoms and consumer staples lagged behind. Gains were magnified for sterling-based investors because the UK’s currency declinedagainst its international peers in the aftermath of the vote to leave the European Union.

104


North American FundInvestment markets overview (continued)

Turning to monetary policy, the Federal Reserve (Fed) increased US interest rates twice over the period. The second of these hikes was made in March,raising the main rate by 25 percentage points to a range between 0.75% and 1%. The move was widely expected and the Fed attributed it to progressbeing made “in exactly the way we anticipated”. There have been improvements in both the US jobs market and economic growth, while inflation has alsobeen rising.

At an asset level, the relatively smaller (in comparison to the benchmark) position in the pharmaceutical company Bristol-Myers Squibb boostedperformance. The share price underperformed the broader market over the year after the company announced an important cancer therapy drug failed alate-stage study. The company scored poorly based on our measures of prudent management. The position in this stock was subsequently sold.

In addition, the comparatively overweight position in the hard-drive manufacturer Western Digital, helped performance. After the microchip-producer Intelissued upbeat guidance citing “improving PC demand” and “replenishment of PC supply chain inventory”, share prices in the sector were driven higher.The company scored highly according to the team’s measures of analyst sentiment. The position in this stock was subsequently sold.

Conversely, the relatively larger position in the discount retailer Target had a negative effect on returns. The stock fell over the period, partly because ofsluggish holiday traffic in its stores. Target had a positive score based on our value metrics.

We expect the US economy to grow by 2.1% over 2017 as a whole. Improving business and residential investment should help to offset a moderation inconsumer spending. We anticipate stronger growth in 2018 as the full effects of expansionary fiscal policy come into play. Meanwhile we think that theFed will raise rates twice more this year.



105


Comparative table

Share Class A






Share Class C







North American Fund

31/03/17(p)

31/03/16(p)

31/03/15(p)

151.34 11.54 102.76(2.59) (2.09) (1.91)

440.45 436.76 341.16

581.60 440.45 436.76(7.60) (5.76) (5.25)

148.75 9.45 100.85

0.03 0.01 -

0.50% 0.50% 0.50%

4,536 3,677 3,821779,885 834,885 874,885

33.77% 2.16% 29.56%


606.50 450.50 444.40427.90 371.80 331.90

0.01% 0.00% 0.00%

31/03/17(p)

31/03/16(p)

31/03/15(p)

(1.02) (0.91) (0.83)

63.18 62.46 48.6122.11 1.63 14.68

84.27 63.18 62.46

- - -

0.87 0.23 0.30

21.09 0.72 13.85(0.87) (0.23) (0.30)

33.38% 1.15% 28.49%

1.38% 1.53% 1.53%

2,843 2,419 2,5733,374,000 3,829,000 4,119,000


86.78 63.79 62.8261.30 52.96 47.27

0.01% 0.00% 0.00%

106




North American Fund

Share Class F






Share Class G






31/03/17(p)

31/03/16(p)

31/03/15(p)

(0.82) (0.66) (0.60)

55.62 54.84 42.5919.11 1.44 12.85

73.91 55.62 54.84

- - -

0.53 0.34 0.36

18.29 0.78 12.25(0.53) (0.34) (0.36)

32.88% 1.42% 28.76%

1.26% 1.26% 1.26%

3,295 2,668 2,8704,458,000 4,798,000 5,233,000


76.11 56.16 55.1553.98 46.55 41.42

0.01% 0.00% 0.00%

31/03/17(p)

31/03/16(p)

31/03/15(p)

(0.68) (0.54) (0.53)

56.83 55.91 43.3319.96 1.46 13.11

76.11 56.83 55.91

- - -

1.07 0.46 0.47

19.28 0.92 12.58(1.07) (0.46) (0.47)

33.93% 1.65% 29.03%

1.01% 1.01% 1.01%

4,800 2,490 70,1846,306,000 4,381,000 125,540,000


78.39 57.39 56.2355.18 47.51 42.14

0.01% 0.00% 0.00%

107




North American Fund

Share Class I






Share Class P□






31/03/17(p)

31/03/16(p)

31/03/15(p)

- - -

441.13 437.36 341.42151.52 11.56 102.74

582.79 441.13 437.36

0.03 0.01 -

151.52 11.56 102.74(9.86) (7.79) (6.80)

34.35% 2.64% 30.09%

0.00% 0.00% 0.00%

472,424 402,609 449,74881,062,087 91,267,087 102,832,087


609.90 453.10 446.50428.80 373.00 332.20

0.01% 0.00% 0.00%

31/03/17(p)

(0.91)

99.961.28

100.33

0.01

0.07

0.37(0.07)

0.37%

0.85%

4747,000


103.3098.17

0.01%

108




North American Fund

Share Class Q□






Share Class R□






31/03/17(p)

(0.77)

99.961.14

100.33

0.01

0.08

0.37(0.08)

0.37%

0.75%

4545,000


103.3098.18

0.01%

31/03/17(p)

(0.54)

99.960.94

100.36

0.01

0.11

0.40(0.11)

0.40%

0.51%

5555,000


103.3098.20

0.01%

109




North American Fund

Share Class SW1**






31/03/17(p)

31/03/16(p)

31/03/15(p)

- (1.44) (1.31)

145.56 143.24 111.05(1.96) 3.76 33.50

- 145.56 143.24

0.01 - -

- 1.16 1.16(143.60) - -

(1.96) 2.32 32.19- (1.16) (1.16)

- 1.62% 28.99%

- 1.05% 1.05%

- 124 122- 85,000 85,000


149.38 147.00 144.10141.30 121.70 108.00

0.01% 0.00% 0.00%

110


North American FundMaterial portfolio changes

Cost ProceedsMajor purchases £'000 Major sales £'000 Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊# 51,272 Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊# 53,132S&P 500 E Mini Index Futures March 2017 33,634 S&P 500 E Mini Index Futures March 2017 34,283S&P 500 E Mini Index Futures September 2016 26,731 S&P 500 E Mini Index Futures June 2016 33,604S&P 500 E Mini Index Futures December 2016 25,012 S&P 500 E Mini Index Futures September 2016 27,967S&P 500 E Mini Index Futures June 2016 19,277 S&P 500 E Mini Index Futures December 2016 25,960S&P 500 E Mini Index Futures June 2017 11,852 Berkshire Hathaway 4,769Goldman Sachs 3,822 Nvidia 4,637Welltower* 3,137 American International 3,931Becton Dickinson 3,123 S&P 500 E Mini Index Futures June 2017 3,891Ingersoll-Rand 3,005 NextEra Energy 3,742


#With effect from 18 July 2016 holding moved from Aberdeen Global Liquidity Sterling Fund Advisory to Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 * Real Estate Investment Trust.

111


HoldingMarket Value

£'000% of

Net AssetsBASIC MATERIALS (3.15%, 31/03/2016 3.51%) 3.15ChemicalsAvery Dennison 15,170 980 0.20Dow Chemical 48,577 2,504 0.51Eastman Chemical 30,639 1,995 0.41International Flavors & Fragrances 12,996 1,381 0.28LyondellBasell Industries 41,043 3,008 0.62PPG Industries 8,511 720 0.15

10,588 2.17

Forestry & PaperInternational Paper 13,215 543 0.11

543 0.11

Industrial Metals & MiningNucor 65,546 3,162 0.65

3,162 0.65

MiningNewmont Mining 40,203 1,063 0.22

1,063 0.22

TOTAL BASIC MATERIALS 15,356 3.15

CONSUMER GOODS (8.67%, 31/03/2016 9.51%) 8.67Automobiles & PartsBorgWarner‡ 6 0 0.00Ford Motor 498,322 4,674 0.96

4,674 0.96

BeveragesDr Pepper Snapple 30,384 2,375 0.49PepsiCo 82,258 7,410 1.52

9,785 2.01

Food ProducersArcher Daniels Midland 43,288 1,603 0.33Campbell Soup 40,626 1,863 0.38Conagra Brands 2,527 82 0.02General Mills 16,803 797 0.16Hormel Foods 43,936 1,207 0.25JM Smucker 23,434 2,469 0.50Mondelez International 2,266 79 0.02Monsanto 13,538 1,232 0.25Tyson Foods 62,384 3,088 0.63

12,420 2.54

Household Goods & Home ConstructionChurch & Dwight 54,210 2,178 0.45DR Horton 53,608 1,439 0.29Leggett & Platt 12,197 494 0.10Lennar 632 26 0.01Procter & Gamble 54,375 3,938 0.81Snap-on 1,793 242 0.05Stanley Black & Decker 11,637 1,240 0.25

9,557 1.96

Personal GoodsMichael Kors 15,478 474 0.10PVH 10,612 883 0.18

1,357 0.28

North American FundPortfolio statement as at 31 March 2017

112


HoldingMarket Value

£'000% of

Net Assets

North American FundPortfolio statement (continued)as at 31 March 2017

CONSUMER GOODS (continued) 8.67TobaccoPhilip Morris International 38,727 3,530 0.72Reynolds American 19,028 960 0.20

4,490 0.92

TOTAL CONSUMER GOODS 42,283 8.67

CONSUMER SERVICES (14.26%, 31/03/2016 16.91%) 14.26Food & Drug RetailersCardinal Health 19,370 1,270 0.26CVS Health 101,038 6,398 1.31McKesson 15,714 1,886 0.39Safeway* 29 - 0.00Safeway Casa Ley‡ 29 0 0.00Sysco 61,510 2,569 0.53

12,123 2.49

General RetailersAmazon.com 8,896 6,260 1.28AutoNation 916 32 0.01Bed Bath & Beyond 26,434 848 0.17Best Buy 56,878 2,219 0.45Dollar General 9,475 539 0.11eBay 109,974 2,975 0.61Foot Locker 1,678 101 0.02Home Depot 21,527 2,540 0.52Kohl's 36,947 1,199 0.24Lowe's 33,699 2,227 0.46Netflix 4,264 507 0.10Ross Stores 24,979 1,336 0.27Signet Jewelers 3,615 205 0.04Staples 17,037 120 0.02Target 70,108 3,109 0.64TJX 20,094 1,287 0.26Wal-Mart Stores 88,339 5,078 1.04

30,582 6.24

MediaComcast 'A' Shares 215,464 6,490 1.33Discovery Communications 'A' Shares 31,008 714 0.15Discovery Communications 'C' Shares 47,182 1,063 0.22Dun & Bradstreet 6,301 534 0.11Interpublic 45,797 904 0.18News 'A' Shares 50,689 539 0.11News 'B' Shares 6,782 75 0.02Omnicom 21,770 1,502 0.31Scripps Networks Interactive 14,776 933 0.19TEGNA 7,212 150 0.03Time Warner 22,883 1,802 0.37Twenty-First Century Fox 'A' Shares 34,161 888 0.18Twenty-First Century Fox 'B' Shares 58,887 1,497 0.31

17,091 3.51

113


HoldingMarket Value

£'000% of

Net Assets


CONSUMER SERVICES (continued) 14.26Travel & LeisureAlaska Air 24,848 1,869 0.38Carnival 3,129 149 0.03Darden Restaurants 19,574 1,302 0.27Delta Air Lines 67,956 2,525 0.52Marriott International 1,324 101 0.02Southwest Airlines 53,823 2,327 0.48United Continental 23,813 1,353 0.28Wyndham Worldwide 2,791 191 0.04

9,817 2.02

TOTAL CONSUMER SERVICES 69,613 14.26

FINANCIALS (17.81%, 31/03/2016 16.11%) 17.81BanksBank of America 279,643 5,360 1.10BB&T 2,855 104 0.02Citigroup 79,410 3,859 0.79Citizens Financial 7,167 201 0.04Fifth Third Bancorp 29,953 619 0.13Huntington Bancshares 12,410 135 0.03JPMorgan Chase 103,419 7,394 1.52KeyCorp 55,953 808 0.17M&T Bank 14,165 1,782 0.37People's United Financial 4,800 71 0.01PNC Financial Services 9,503 927 0.19Regions Financial 108,800 1,282 0.26SunTrust Banks 2,763 124 0.03US Bancorp 28,297 1,184 0.24Wells Fargo 95,985 4,335 0.89

28,185 5.79

Financial ServicesAmerican Express 4,093 260 0.05Bank of New York Mellon 20,272 774 0.16BlackRock 1,718 528 0.11Capital One Financial 16,259 1,138 0.23Charles Schwab 35,531 1,174 0.24CME 12,455 1,189 0.24Discover Financial Services 15,164 836 0.17E*TRADE Financial 56,019 1,569 0.32Goldman Sachs 30,326 5,627 1.15Intercontinental Exchange 48,194 2,323 0.48Moody's 1,096 98 0.02Morgan Stanley 53,732 1,874 0.38Navient 58,085 693 0.14S&P Global 22,809 2,370 0.49Synchrony Financial 10,809 299 0.06Visa 20,579 1,471 0.30Western Union 103,302 1,701 0.35

23,924 4.89

Life InsuranceAflac 12,666 735 0.15MetLife 31,021 1,324 0.27Principal Financial 1,282 65 0.01Prudential Financial 37,237 3,209 0.66Unum 14,238 535 0.11

5,868 1.20

114


HoldingMarket Value

£'000% of

Net Assets


17.81FINANCIALS (continued)Non-Equity Investment Instruments Aberdeen Liquidity Fund (Lux) - Sterling Fund Z-3 Inc◊ 1,196 1,196 0.25

1,196 0.25

Non-Life InsuranceBerkshire Hathaway 24,500 3,293 0.67Chubb 23,782 2,617 0.54Cincinnati Financial 18,931 1,100 0.23Marsh & McLennan 22,270 1,325 0.27Travelers 27,780 2,699 0.55Willis Towers Watson 893 94 0.02XL 45,031 1,452 0.30

12,580 2.58

Real Estate Investment TrustsAvalonBay Communities 8,734 1,285 0.26GGP 11,760 216 0.04HCP 33,187 826 0.17Kimco Realty 51,852 914 0.19Macerich 1,347 69 0.01Mid-America Apartment Communities 23,780 1,943 0.40Public Storage 1,069 188 0.04Realty Income 8,165 386 0.08SL Green Realty 21,564 1,821 0.37Ventas 62,923 3,258 0.67Welltower 75,063 4,265 0.87

15,171 3.10

TOTAL FINANCIALS 86,924 17.81

HEALTH CARE (14.32%, 31/03/2016 14.56%) 14.32Health Care Equipment & ServicesAetna 41,708 4,251 0.87Anthem 18,009 2,416 0.50Baxter International 102,361 4,294 0.88Becton Dickinson 21,442 3,163 0.65Boston Scientific 68,596 1,347 0.28Cigna 7,545 894 0.18CR Bard 7,772 1,551 0.32Express Scripts 46,661 2,494 0.51HCA 4,603 330 0.07Hologic 10,027 344 0.07Humana 2,549 423 0.09Intuitive Surgical 1,697 1,044 0.21Medtronic 6,209 404 0.08Quest Diagnostics 10,251 810 0.17UnitedHealth 42,139 5,582 1.14Varian Medical Systems 3,033 222 0.05Waters 2,841 357 0.07

29,926 6.14

115


HoldingMarket Value

£'000% of

Net Assets


HEALTH CARE (continued) 14.32Pharmaceuticals & BiotechnologyAbbVie 41,709 2,192 0.45Allergan 6,148 1,184 0.24Amgen 46,154 6,093 1.25Biogen 7,711 1,666 0.34Gilead Sciences 118,985 6,453 1.32Johnson & Johnson 98,148 9,824 2.01Mallinckrodt 22,208 809 0.17Merck 86,309 4,398 0.90Mylan 5,221 166 0.03Pfizer 174,904 4,823 0.99Walgreens Boots Alliance 35,178 2,353 0.48

39,961 8.18

TOTAL HEALTH CARE 69,887 14.32

INDUSTRIALS (10.30%, 31/03/2016 8.66%) 10.30Aerospace & DefenseBoeing 36,088 5,158 1.06General Dynamics 24,144 3,660 0.75L3 Technologies 1,755 235 0.05Lockheed Martin 6,802 1,478 0.30Northrop Grumman 13,512 2,594 0.53Raytheon 15,448 1,900 0.39United Technologies 26,273 2,372 0.49

17,397 3.57

Construction & MaterialsFluor 22,841 966 0.20Jacobs Engineering 25,204 1,119 0.23Masco 6,593 179 0.04Quanta Services 30,851 920 0.19

3,184 0.66

Electronic & Electrical EquipmentAgilent Technologies 31,076 1,330 0.27Emerson Electric 34,703 1,661 0.34TE Connectivity 1,086 65 0.01

3,056 0.62

General Industrials3M 5,287 812 0.17Danaher 14,676 1,010 0.21Eaton 30,719 1,830 0.36General Electric 171,244 4,108 0.84Honeywell International 9,405 947 0.19Parker-Hannifin 27,075 3,479 0.71WestRock 12,685 535 0.11

12,721 2.59

Industrial EngineeringCummins 12,234 1,493 0.31Dover 25,032 1,610 0.33Illinois Tool Works 1,177 125 0.02Ingersoll-Rand 53,688 3,488 0.71Pentair 8,424 425 0.09Rockwell Automation 1,472 184 0.04

7,325 1.50

116


HoldingMarket Value

£'000% of

Net Assets


INDUSTRIALS (continued) 10.30Industrial TransportationExpeditors International of Washington 27,868 1,267 0.26

1,267 0.26

Support ServicesAccenture 15,329 1,484 0.30Alliance Data Systems 4,553 910 0.19PayPal 19,683 688 0.14Total System Services 28,139 1,204 0.25Xerox 177,911 1,054 0.22

5,340 1.10

TOTAL INDUSTRIALS 50,290 10.30

OIL & GAS (6.44%, 31/03/2016 6.62%) 6.44Oil & Gas ProducersApache 9,589 401 0.08Cabot Oil & Gas 36,060 673 0.14Chevron 43,744 3,785 0.78Cimarex Energy 2,165 210 0.04EOG Resources 21,134 1,652 0.34Exxon Mobil 103,328 6,942 1.42Marathon Petroleum 5,561 224 0.05Occidental Petroleum 16,414 847 0.17Phillips 66 2,103 133 0.03Pioneer Natural Resources 8,462 1,240 0.25Tesoro 12,605 817 0.17Valero Energy 72,677 3,867 0.79

20,791 4.26

Oil Equipment, Services & DistributionBaker Hughes 59,988 2,858 0.59Halliburton 11,413 449 0.09Helmerich & Payne 22,881 1,222 0.25Kinder Morgan 12,728 219 0.04National Oilwell Varco 3,918 126 0.03Schlumberger 64,638 4,039 0.83TechnipFMC 47,615 1,230 0.25Transocean 47,536 471 0.10

10,614 2.18

TOTAL OIL & GAS 31,405 6.44

TECHNOLOGY (20.34%, 31/03/2016 17.62%) 20.34Software & Computer ServicesAlphabet Non-Voting Rights 8,587 5,733 1.17Alphabet Voting Rights 7,858 5,360 1.10CA 66,364 1,693 0.35Citrix Systems 23,905 1,615 0.33Cognizant Technology Solutions 'A' Shares 45,136 2,148 0.44Electronic Arts 14,516 1,052 0.22Facebook 59,399 6,793 1.39Hewlett Packard Enterprise 66,458 1,261 0.26International Business Machines 18,260 2,549 0.52Microsoft 197,161 10,402 2.13Oracle (New York Listing) 140,581 5,043 1.03Teradata 27,005 678 0.14

44,327 9.08

117


HoldingMarket Value

£'000% of

Net Assets


TECHNOLOGY (continued) 20.34Technology Hardware & EquipmentApple 156,526 18,091 3.71Applied Materials 42,711 1,334 0.27Broadcom 9,124 1,612 0.33Cisco Systems 192,625 5,219 1.07Corning 58,016 1,283 0.26F5 Networks 3,590 411 0.08Garmin 25,270 1,037 0.21HP 114,531 1,622 0.33Intel 149,680 4,297 0.88Juniper Networks 41,250 917 0.19KLA-Tencor 28,001 2,150 0.44Lam Research 33,435 3,455 0.71NetApp 57,928 1,949 0.40Nvidia 6,214 546 0.11Qualcomm 51,916 2,385 0.49Seagate Technology 8,142 308 0.06Skyworks Solutions 38,387 3,025 0.62Texas Instruments 79,943 5,203 1.07Xilinx 3,339 155 0.03

54,999 11.26

TOTAL TECHNOLOGY 99,326 20.34

TELECOMMUNICATIONS (1.87%, 31/03/2016 2.34%) 1.87Fixed Line TelecommunicationsAT&T 131,918 4,424 0.91CenturyLink 48,034 902 0.18Verizon Communications 97,240 3,831 0.78

9,157 1.87

TOTAL TELECOMMUNICATIONS 9,157 1.87

UTILITIES (3.17%, 31/03/2016 4.51%) 3.17ElectricityAES 135,069 1,201 0.25American Electric Power 12,249 661 0.14Consolidated Edison 27,996 1,747 0.36Edison International 58,160 3,712 0.76Exelon 29,780 853 0.17FirstEnergy 83,647 2,107 0.43NRG Energy 61,167 902 0.18PG&E 14,263 760 0.16Public Service Enterprise 14,177 500 0.10

12,443 2.55

Gas, Water & MultiutilitiesCenterPoint Energy 73,032 1,613 0.33ONEOK 11,026 486 0.10WEC Energy 18,784 911 0.19

3,010 0.62

TOTAL UTILITIES 15,453 3.17

DERIVATIVES (-0.07%, 31/03/2016 0.02%) (0.07)Futures ContractsS&P 500 E Mini Index Futures June 2017 81 (10) 0.00

(10) 0.00

118


HoldingMarket Value

£'000% of

Net Assets


DERIVATIVES (continued) (0.07)Forward Currency ContractsBought USD532,000 for GBP437,536 Settlement 21/06/2017 - (11) 0.00Bought USD13,870,825 for GBP11,391,705 Settlement 21/06/2017 - (273) (0.06)Sold USD1,909,000 for GBP1,546,761 Settlement 21/06/2017 - 17 0.00Sold USD476,000 for GBP381,124 Settlement 21/06/2017‡ - 0 0.00Sold USD1,526,000 for GBP1,220,074 Settlement 21/06/2017 - (3) 0.00Sold USD930,000 for GBP736,269 Settlement 21/06/2017 - (9) 0.00

(279) (0.06)

OptionsS&P 500 Index Option 2400 Call May 2017 (12) (15) 0.00S&P 500 Index Option 2410 Call May 2017 (12) (12) 0.00S&P 500 Index Option 2420 Call May 2017 (44) (34) (0.01)S&P 500 Index Option 2450 Call May 2017 (47) (15) 0.00S&P 500 Index Option 2450 Call June 2017 (13) (10) 0.00S&P 500 Index Option 2455 Call June 2017 (24) (17) 0.00S&P 500 Index Option 2475 Call June 2017 (24) (11) 0.00

(114) (0.01)





*Delisted securities.◊Asset managed by the Fund's Investment Adviser.‡The market value of the holding is below £500 and is therefore rounded down to £0.

^Including derivative liabilities.Derivatives can be exchange traded or Over the Counter (OTC) contracts.Holdings are denominated in Sterling unless otherwise stated.All holdings are ordinary shares or stock units and admitted to official stock exchange listings unless otherwise stated.

119



1) Global Data





Top 10 collateral issuersName and value of collateral and commodities received as at 31 March 2017 £'000United States of America Treasury 1,056Reynolds American 531HSBC 427Baxter 425United Continental 402Norfolk 391Royal Dutch Shell 390Charter Communications 283Syngenta 264Banco Santander 254

Top 10 counterpartiesName and value of outstanding transactions as at 31 March 2017 £'000Securities lendingUBS 12,798Credit Suisse Securities (Europe) 901Merrill Lynch International 32


Type, quality and currency of collateral as at 31 March 2017Type Quality Currencies £'000Securities lendingEquity Traded on recognised exchange Sterling 2,708Equity Traded on recognised exchange Australian dollar 555Equity Traded on recognised exchange Canadian dollar 79Equity Traded on recognised exchange Danish krone 72Equity Traded on recognised exchange Euro 2,391Equity Traded on recognised exchange Hong Kong dollar 696Equity Traded on recognised exchange Japanese yen 1Equity Traded on recognised exchange Norwegian krone 38Equity Traded on recognised exchange Singapore dollar 11Equity Traded on recognised exchange Swedish krona 48Equity Traded on recognised exchange Swiss franc 391Equity Traded on recognised exchange US dollar 6,810Fixed Income Investment Grade Sterling 22Fixed Income Investment Grade Canadian dollar 8Fixed Income Investment Grade Euro 20Fixed Income Investment Grade US dollar 1,056Total collateral held 14,906

North American Fund

as at 31 March 2017

120


Securities Financing Transactions (SFT) (continued)North American Fund

as at 31 March 2017


Type

Less than one day

£'000



£'000

One to three

months£'000

Three months to

one year£'000

Above one year

£'000

Open maturity

£'000Total£'000

Securities lending - - 1 - 21 1,084 13,800 14,906- - 1 - 21 1,084 13,800 14,906

Counterparty details as at 31 March 2017 TotalType £'000Securities lending United Kingdom Bi-lateral 924Securities lending Switzerland Tri-party 13,946Securities lending United Kingdom Tri-party 36Total collateral held 14,906


Type

Less than one day

£'000



£'000

One to three

months£'000

Three months to

one year£'000

Above one year

£'000

Open maturity

£'000Total£'000





Names and value of custodians safekeeping collateral as at 31 March 2017 £'000JP Morgan 13,946State Street 924Bank of New York 36









121


North American FundStatement of total returnfor the year ended 31 March 2017

01/04/16 to 31/03/17 01/04/15 to 31/03/16Notes £'000 £'000 £'000 £'000

Income

Net capital gains 3 128,233 125

Revenue 4 10,322 10,554

Expenses 5 (135) (703)



Taxation 6 (1,431) (1,489)


Total return before distributions 136,983 8,483


Change in net assets attributable to shareholdersfrom investment activities 128,206 125


01/04/16 to 31/03/17 01/04/15 to 31/03/16£'000 £'000 £'000 £'000



(54,295) (115,526)


Change in net assets attributable to shareholders frominvestment activities (see Statement of total return above) 128,206 125




122


North American FundBalance sheetas at 31 March 2017

31/03/17 31/03/16Notes £'000 £'000

ASSETSFixed assets:


Current assets:Debtors 8 427 8,121Cash and bank balances 9 6,925 2,838

Total assets 497,063 426,723

LIABILITIESInvestment liabilities 420 261Provisions for liabilities 10 1 -

CreditorsDistribution payable 8,054 7,158Other creditors 11 543 5,317




123


Notes to the Financial Statements for the year ended 31 March 2017

1.

a)

b)

●

●

●●

●

●●●●

●

c)

d)

e)

f)

g)

All management expenses, other than those relating to the purchase and sale of investments and Stamp Duty Reserve Tax, for the year have beencharged against revenue. Transaction charges are charged to the relevant Fund and are included in note 3 - net capital gains/(losses) on investments.

Special dividends are treated as repayments of capital or revenue depending on the facts of each particular case.

Accounting and distribution policies

Basis of accounting

Recognition of revenueRevenue is included in the Statement of total return on the following basis:

Treatment of management expenses

Allocation of revenue and expenses to share classes

Revenue is allocated when earned in the proportion of the net asset value of each share class to the total net asset value of the Fund. Expensesincurred solely in respect of a share class are allocated directly to that class. Expenses incurred in respect of, or attributable to, the Fund as a wholeare allocated when incurred in the proportion of the net asset value of each share class to the total net asset value of the Fund.

Revenue from unquoted securities is recognised when it is declared. Interest on bank deposits and other interest is recognised on an accrual basis.

Dividends from Real Estate Investment Trusts ('REITs') are recognised as distributable revenue when the securities are quoted ex-dividend.

Where stocks are received in lieu of cash dividends, the value of that dividend is recognised in the gross revenue of the Funds and included within netrevenue available for distribution. Where enhanced scrip dividends are received the value of the enhancement is not recognised as revenue within theFunds but is treated as part of the capital return on the stock.

Interest on debt securities is accounted for on an effective yield basis.

The financial statements have been prepared on a going concern basis, under the historical cost convention, as modified by the revaluation ofinvestments, and in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UK GAAP) and the Statement ofRecommended Practice (SORP) for UK Authorised Funds issued by the Investment Management Association (IMA) in May 2014.

Provision is made for corporation tax at the current rate on the excess of taxable income over allowable expenses. UK dividend revenue is disclosednet of any related tax credit. Overseas dividends continue to be disclosed gross of any foreign tax suffered, the tax element being separatelydisclosed in the taxation note.Deferred taxation is provided on all timing differences that have originated but not reversed by the Balance Sheet date other than those differencesregarded as permanent. Any liability to deferred tax is provided at the average rate of tax expected to apply. Deferred tax assets and liabilities are notdiscounted to reflect the time value of money.Deferred tax assets are only recognised to the extent that it is regarded more likely than not that there will be taxable profits against which the reversalof underlying timing differences can be offset.

Exchange ratesForeign currency assets and liabilities have been translated into Sterling at the exchange rates prevailing at the Balance Sheet date. All transactionsin foreign currencies are translated into Sterling at the exchange rates prevailing at the dates of such transactions.

Dilution Adjustment

In certain circumstances (as detailed in the Prospectus) the ACD may charge a dilution adjustment on the creation or cancellation of shares, which ispaid into the capital of the relevant Fund on an accruals basis. The adjustment is intended to cover certain dealing charges not included in the mid-market value of the Fund used in calculating the share price, which could have a diluting effect on the Fund.

Taxation

Dividends on quoted ordinary shares and preference shares and distributions on collective investment schemes are recognised when the securitiesare quoted ex-dividend. Non-dividend revenue from offshore reporting funds is recognised when declared, and treated as revenue for taxation anddistribution purposes.

The Fund early adopted the FRS102 update made in March 2016, relating to the fair value hierarchy classifications.

Dividends received from UK REITs are split into PID (Property Income Distributions) and Non-PID components for tax purposes. Revenue arising fromUK REITs tax-exempt rental business is colloquially known as PID revenue and is taxable in the hands of the Fund. A UK REIT may also carry outactivities that give rise to taxable profits and gains. It is from these that the REIT will make a Non-PID distribution. These are treated for tax purposesin the same way as dividends from normal UK companies.

All distributions from accumulation holdings in collective investment schemes are treated as revenue. Equalisation on distributions received fromcollective investment schemes is treated as capital.

For dividends received from US Real Estate Investment Trusts ("REITs"), the capital/revenue split is based on historical trend and the allocation isadjusted within the Financial Statements once the actual capital/revenue split has been published.

124


Notes to the Financial Statements (continued)for the year ended 31 March 2017

1.

h)

i)

j)

k)

Final distribution - 31 May (all Funds)

It is the policy of all Funds to make dividend distributions.

Distributions which have remained unclaimed by shareholders for over six years are credited to the capital of the Fund.

Some of the Funds may enter into permitted transactions such as derivative contracts or forward foreign currency transactions. The treatment of thereturns from derivatives depends upon the nature of the transaction. Both motives and circumstances are used to determine whether returns shouldbe treated as capital or revenue. Where positions are undertaken to protect or enhance capital, and the circumstances support this, the returns arecapital and included within gains/losses on investments in the Statement of Total Return. Similarly where they are for generating or protectingrevenue, and the circumstances support this, the returns are revenue and included within net revenue in the Statement of Total Return. Wherepositions generate total returns it will generally be appropriate to apportion such returns between capital and revenue to properly reflect the nature ofthe transaction.

Open Forward Currency Contracts are shown in the Portfolio Statement and are valued using contracted forward rates. Open Futures Contracts areshown in the Portfolio Statement and are valued using market prices.

Revenue accumulates during the distribution period. If, at the end of the accounting year, revenue exceeds expenses, the net revenue of the Fundswill be distributed (or re-invested) at share class level to the shareholders in accordance with the OEIC regulations. If expenses exceed revenue duringthe year, the net revenue shortfall may be funded from capital. Interim distributions will be at the ACD's discretion up to a maximum of the distributablenet revenue available for the interim period.

The distribution pay dates of the five Funds are as follows:

Basis of valuation of investmentsThe investments of the Company are valued at market value, defined as fair value, as at 12pm UK time on 31 March 2017. For fair value purposesequity investments are valued at bid, contracts for differences ('CFDs') are valued at fair value per the counterparty, exchange traded futures andoptions are valued using market prices. Where applicable, illiquid, unlisted, delisted, unapproved or suspended securities are based on the ACD'sassessment of their fair value. Investments in other collective investment schemes are valued at bid price for dual priced funds and at the single price for single priced funds.

Investment asset prices are reviewed regularly by the ACD to identify those assets where the price has not moved since the previous review period.This review provides an initial indication that the market for each identified asset may be inactive. These assets are then reviewed by an internalcommittee who may identify an alternative price source for them. On conclusion that a particular asset is illiquid, the ACD will identify an alternativepricing method. The ACD will first identify if an appropriate price can be obtained from a recognised independent broker. Where this is the case, thebroker will be approved as a price source for the asset.

Distribution of net revenue

Derivatives and forward currency transactions

Under the IMA SORP 2014 section 3.71, it is now acceptable not to take into account marginal tax relief in determining the distribution.

Accounting and distribution policies (continued)

Equalisation

Equalisation only applies to shares purchased during the distribution period (group 2 shares). It is the average amount of revenue included in thepurchase 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 butmust be deducted from the cost of the shares for capital gains tax purposes.

125



2.

European

Fund

Far Eastern

Fund

International Growth

FundJapanese

FundNorth American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

3,907 2,180 19,307 1,010 4,893

31 March 2016 £'000 £'000 £'000 £'000 £'0003,276 1,728 16,399 876 4,155

Assets of the Company may need to be sold if insufficient cash is available to finance redemptions. The Funds hold cash and cash deposits whichpotentially exposes them to counterparty risk. The manager constantly reviews the banks at which cash is deposited.As the Funds' assets are held with a custodian, these assets are exposed to credit risk. These assets are ring-fenced by the custodian. The custodianused by the ACD is subject to regular review.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Thisincludes counterparty and issuer risk.

In general the Investment Adviser manages the Company's cash to ensure it can meet its liabilities. Where investments cannot be realised in time tomeet any potential liability, the Fund may borrow up to 10% of its value to ensure settlement.

Credit Risk

Certain transactions in securities that the Company enters into expose it to the risk that the counterparty will not deliver the investment for a purchase,or cash for a sale after the Company has fulfilled its responsibilities. The Company only buys and sells investments through brokers which have beenapproved by the ACD as an acceptable counterparty and these are reviewed on an ongoing basis.

Market Price RiskMarket price risk, being the risk that the value of the Company's investment holdings will fluctuate as a result of changes in market prices caused byfactors other than interest rate or currency movement, arise mainly from uncertainty about future prices of financial instruments the Company holds.

The ACD regularly reviews the asset allocation of each portfolio in order to minimise the risk associated with particular sectors whilst continuing tofollow the investment objectives. The ACD has responsibility for monitoring the existing portfolio selected in accordance with the overall assetallocation parameters described above and seeks to ensure that individual stocks also meet the risk reward profile that is acceptable.

Further fluctuations could occur as a result of foreign currency movements. Details of the Fund's foreign currency exposure can be found in theForeign Exchange Risk section.

Liquidity Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with its financial liabilities.

The Company holds assets comprising mainly readily realisable securities and has no significant unlisted securities so therefore has limited exposureto liquidity risk. The main liability of the Company is the cancellation of shares by shareholders. The Company is also exposed to liquidity risk throughits commitments under derivative contracts, whereby additional margin payments or collateral payments may need to be posted with the counterpartyor clearing house. This risk is minimised by holding readily realisable securities and cash to meet the liabilities of the Funds.

The main risks arising from the financial instruments are market price risk, liquidity risk, credit risk, interest rate risk and foreign exchange risk. TheACD's policies for managing these risks are summarised below and have been applied throughout the year.

Risk management policies, derivatives and other financial instruments

General

In pursuing their investment objectives, the Funds hold a number of financial instruments. The Company's financial instruments, other thanderivatives, comprise securities and other investments, cash balances, debtors and creditors that arise directly from its operations, for example, inrespect of sales and purchase awaiting settlement, amounts receivable for share issues and payable for share cancellations and debtors for accruedrevenue.

Change in net assets attributable to shareholders


Market price risk represents the potential loss the Company might suffer through holding market positions in the face of price movements. Theinvestment assets of the Funds are listed on stock exchanges, as such their prices are subject to movements that would result in an appreciation ordepreciation in the fair value of that asset. As at 31 March 2017, if the price of investments held by the Funds increased or decreased by 1%, theresulting change in net assets attributable to shareholders would have been an increase or decrease of approximately 1%; which would equate to thefollowing:

We do not consider these liquidity risks to be significant and therefore no numerical analysis is being presented.

126



2.

Net Foreign Currency Exposures Net Foreign Currency Exposures

MonetaryNon-

Monetary Total MonetaryNon-

Monetary Total£'000 £'000 £'000 £'000 £'000 £'000

172 12,302 12,474 102 15,330 15,432

6,662 263,361 270,023 18,896 207,614 226,51067 4,767 4,834 34 4,092 4,126

270 27,997 28,267 35 23,533 23,5683,215 73,885 77,100 2,467 65,535 68,002

4 2,377 2,381 1 918 919

1,929 43,409 45,338 2,168 34,898 37,066

- 26 26 - - -575 59,823 60,398 1,595 49,559 51,15433 16,452 16,485 5 12,859 12,86442 4,866 4,908 18 4,312 4,3304 5,241 5,245 1 5,379 5,3809 429 438 28 850 8788 2,560 2,568 15 2,393 2,4089 8,167 8,176 - 7,568 7,568

493 30,649 31,142 658 25,555 26,21360 24,261 24,321 7 19,830 19,83739 4,603 4,642 46 3,604 3,65041 14,133 14,174 99 5,406 5,505

The Company does not engage in Securities Lending, another form of efficient portfolio management.

31 March 2017 31 March 2016

Australian dollar

EuroHong Kong dollarIndian rupeeIndonesian rupiahMalaysian ringgitNew Zealand dollarPhilippine peso

All Funds with the exception of the Far Eastern and Japanese Funds may use financial derivative instruments for the purposes of efficient portfoliomanagement only. The Japanese and Far Eastern Funds may use derivative instruments for the purposes of investment as well as efficient portfoliomanagement.

We do not consider these interest rate risks to be significant and therefore no numerical analysis is being presented.

Singapore dollarSouth Korean wonTaiwanese dollarThai bahtUS dollar

Interest Rate RiskInterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Risk management policies, derivatives and other financial instruments (continued)

Interest bearing assets held by the Company are cash and bank balances shown in note 9. The Company has no fixed rate financial assets and nosignificant borrowings.

The net foreign currency monetary assets at the balance sheet date, analysed by Fund, were as follows:

31 March 2017European Fund 31 March 2016

Danish krone

EuroNowegian kroneSwedish kronaSwiss francUS dollar

Far Eastern Fund

Foreign Exchange RiskForeign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchangerates.

The Company invests significantly in assets denominated in Foreign Currencies and, as a result, the capital value of investments and the revenuederiving from them can be significantly affected by currency movements. The ACD has identified three principal areas where foreign currency risk could impact the Company, namely where movements in exchange ratesaffect the sterling value of investments, short-term timing differences and revenue received. It may be subject to short-term exposure to exchange ratemovements, for instance where there is a difference between the date an investment purchase or sale is entered into and the date the requisite foreignexchange transaction occurs. When the scheme enters into such a transaction which will involve the buying or selling of foreign currency in order tocomplete, the ACD will instigate the necessary foreign exchange transactions in order to minimise exchange rate risk.

127



2. Risk management policies, derivatives and other financial instruments (continued)

Net Foreign Currency Exposures Net Foreign Currency Exposures

MonetaryNon-

Monetary Total MonetaryNon-

Monetary Total£'000 £'000 £'000 £'000 £'000 £'000

1,678 37,184 38,862 411 29,699 30,110

2,426 71,679 74,105 223 57,349 57,572308 8,714 9,022 41 8,510 8,551

6,802 197,759 204,561 346 156,742 157,0881,016 29,616 30,632 - 23,250 23,2506,413 144,888 151,301 1,589 129,375 130,964

30 890 920 - 1,361 1,36135 - 35 16 2,357 2,373

469 14,345 14,814 - 12,367 12,36765 1,924 1,989 45 1,602 1,647

1,084 31,322 32,406 - 22,146 22,1462,552 52,630 55,182 702 58,497 59,199

87 1,796 1,883 - 1,647 1,647- - - 29 - 29

66,449 1,058,424 1,124,873 7,411 878,266 885,677

4,572 97,615 102,187 2,267 86,521 88,788

8,750 488,499 497,249 21,941 412,390 434,331

European

Fund

Far Eastern

Fund


FundJapanese

FundNorth American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

3,951 2,179 17,406 1,022 4,972

31 March 2016 £'000 £'000 £'000 £'000 £'0003,386 1,769 13,940 888 4,343

As at 31 March 2017, if the value of Sterling increased or decreased by 1% against all currencies, the resulting change in the net assets attributable toshareholders would have been an approximate increase or decrease of:



North American Fund 31 March 2017 31 March 2016

US dollar

South Korean wonSingapore dollar

Danish kroneEuroHong Kong dollarJapanese yenNew Israeli shekel

Swedish kronaSwiss francTaiwanese dollar

Japanese Fund 31 March 2017 31 March 2016

Japanese Yen

US dollar

International Growth Fund 31 March 2017 31 March 2016

Australian dollar

Canadian dollar

Thai baht

Norwegian krone

The Company receives revenue in foreign currencies, and the Sterling value of this revenue can be affected by movement in exchange rates.Arrangements are in place for the conversion of all revenue receipts into Sterling on the date of receipt.

128



2.

European Fund

Far Eastern

Fund


FundJapanese

FundNorth American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

98 22 - - -20 95 80 2 17

31 March 2016 £'000 £'000 £'000 £'000 £'000- 28 96 - 277

195 216 52 1 41

European

Fund

Far Eastern

Fund


FundJapanese

FundNorth American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

7,777 1,934 29,635 4,453 7,66910,178 - 25,899 - 5,6997,684 1,900 29,575 3,505 7,664

25,639 3,834 85,109 7,958 21,032

31 March 2016 £'000 £'000 £'000 £'000 £'00018,423 2,723 5,632 2,165 13,832

10 - - - 9219,356 2,621 3,849 1,318 13,37937,789 5,344 9,481 3,483 27,303

European

Fund

Far Eastern

Fund


FundJapanese

FundNorth American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

3,834 85,109 7,958 21,032

31 March 2016 £'000 £'000 £'000 £'000 £'00037,789 5,344

Exchange traded derivativesOver the counter derivativesForward currency contractsTotal financial derivative instruments exposure

Exchange traded derivativesOver the counter derivativesForward currency contractsTotal financial derivative instruments exposure

The financial derivative instruments exposure represents the value of what is "economically commanded" by the instrument and is calculated as the sum of the notional value of the instrument, i.e. the number of contracts multiplied by the relevant index or spot price.


There is no material difference between the value of the financial assets and liabilities, shown in the balance sheet, and their fair value. The mainliability of the Company is its obligation to redeem shares on demand.

Fair value of financial assets and financial liabilities

9,481 3,483 27,303

Exchange traded derivativesForward currency contracts

Exchange traded derivativesForward currency contracts

Efficient portfolio management techniques

25,639

Financial derivative instruments exposure - fair value

Financial derivative instruments exposure - notional

Underlying exposure obtained through efficient portfolio management techniques

Underlying exposure obtained through efficient portfolio management techniques

129



2.

European

Fund

Far Eastern

Fund


FundJapanese

FundNorth American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

- 9 - - -(175) 26 (547) (6) (288)

8 3 - - -98 17 (62) (78) (10)

(167) - (484) - -10 (4) - - -(3) (53) (119) 2 7

31 March 2016 £'000 £'000 £'000 £'000 £'000- - 24 - -

BNP Paribas - Forward currency contracts 105 70 (35) (10) (128)Deutsche Bank - Forward currency contracts - (27) (21) - -HSBC Bank - Forward currency contracts (12) 13 14 - 4Merrill Lynch - Futures (66) 11 96 (18) 277Merrill Lynch - Options (10) - - - (92)Royal Bank of Canada - Forward currency contracts 63 5 (110) - (4)State Street Bank - Forward currency contracts (2) (5) - - -

European

Fund

Far Eastern

Fund


FundJapanese

FundNorth American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

- 150 - - -CHF cash - Merrill Lynch 169 - - - -EUR cash - Merrill Lynch 168 - (76) - -GBP cash - Merrill Lynch 530 (84) 17,450 (12) 5,636HKD cash - Merrill Lynch - 2 - - -JPY cash - Merrill Lynch - - - 171 -USD cash - Merrill Lynch - - 902 - 381

31 March 2016 £'000 £'000 £'000 £'000 £'000AUD cash - Merrill Lynch - 168 - - -CHF cash - Merrill Lynch (122) - - - -EUR cash - Merrill Lynch 561 - - - -GBP cash - Merrill Lynch 1,406 (171) (127) 21 1,168HKD cash - Merrill Lynch - 214 - - -JPY cash - Merrill Lynch - - - 43 -USD cash - Merrill Lynch - - 307 - 553

The type and amount of collateral received or (posted) to reduce counterparty exposure:


Bank of New York - Forward currency contracts

Bank of New York - Forward currency contracts

The counterparty exposure represents the amount that the Fund could lose (or gain) if the counterparty defaulted. This is calculated as the unrealisedprofit (or loss) on this trade. It is therefore a different amount to the value of the sum of the notionals.

Collateral

AUD cash - Merrill Lynch

HSBC Bank - Forward currency contracts

State Street Bank - Forward currency contracts

Merrill Lynch - OptionsRoyal Bank of Canada - Forward currency contracts

Counterparties to financial derivative instruments and efficient portfolio management techniques

BNP Paribas - Forward currency contracts

Merrill Lynch - Futures

130



3. Net capital gains/(losses)

The net gains/(losses) on investments during the year comprise:

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

Non-derivative securities 82,183 59,370 455,317 25,365 125,223Derivative contracts 1,320 1,209 1,689 612 1,251Forward currency contracts 1,289 1,130 3,214 370 1,666Transaction fees (1) (8) (5) (1) 0Currency losses (612) (386) (2,025) (54) (137)US REIT's capital gains - - - - 230

Net capital gains 84,179 61,315 458,190 26,292 128,233

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2016 £'000 £'000 £'000 £'000 £'000

Non-derivative securities (37,080) (42,654) (89,908) (5,233) 385Derivative contracts (1,128) (622) (755) (102) (265)Forward currency contracts 231 (54) (34) 131 99Transaction fees (2) (17) (3) - (1)Currency gains/(losses) 130 316 (1,274) (19) (93)

Net capital gains/ (losses) (37,849) (43,031) (91,974) (5,223) 125

131



4. Revenue

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

UK dividends 4 - 3,959 - -Stock dividends 130 31 151 - -Overseas dividends 12,079 6,860 42,252 2,449 10,220Distributions from Regulated Collective Investment Schemes:

Franked investment income - - 2,504 - -Offshore distributions 47 25 423 14 31Property income distributions - - 9 - -Bank interest 3 2 8 1 3Stock lending revenue 45 17 212 16 55Income compensation* 18 56 1,868 8 13

12,326 6,991 51,386 2,488 10,322

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2016 £'000 £'000 £'000 £'000 £'000

UK dividends - - 4,200 - 5Stock dividends 199 106 744 - -Overseas dividends 13,360 11,111 37,683 1,949 10,495Distributions from Regulated Collective Investment Schemes:

Franked investment income - - 2,831 - -Unfranked investment income - - 110 - -

Offshore distributions 42 26 421 1 50Property income distributions - - 73 - -Bank interest 5 4 19 2 4Interest on French tax withheld 2 - 11 - -

13,608 11,247 46,092 1,952 10,554

*Monies received from HBOS Investment Fund Managers Limited to reflect the reduction in annual management charge of C Accumulation which wasbackdated to 1 October 2012 when we made similar reductions to other funds at that time.

132



5. Expenses

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

Payable to the ACD, associates of the ACD and agents of either of them:ACD's periodic charge 164 328 8,336 52 134Registration fees 1 3 115 1 1

165 331 8,451 53 135

Payable to the Depositary, associates of the Depositary, and agents of either of them:Depositary fees 1 2 11 - -Safe custody fees 1 9 43 1 -ADR issuance fee - - 3 - -

2 11 57 1 -

Other expenses:Audit fee - 1 3 - -Professional fees 5 33 8 - -Legal Costs - - 4 - -

5 34 15 - -

Total expenses 172 376 8,523 54 135

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund£'000 £'000 £'000 £'000 £'000

Payable to the ACD, associates of the ACD and agents of either of them:ACD's periodic charge 1,121 1,798 9,051 83 696

2 3 124 1 11,123 1,801 9,175 84 697

Payable to the Depositary, associates ofthe Depositary, and agents of either ofthem:Depositary fees 4 8 8 1 2Safe custody fees 15 105 58 1 2ADR issuance fee - - 16 - -

19 113 82 2 4

Other expenses:Audit fee 2 4 3 1 1Professional fees 20 72 21 - -Legal Costs 6 12 20 - 1

28 88 44 1 2

Total expenses 1,170 2,002 9,301 87 703

Registration fees

The audit fee in total for the Company was £42,600 (2016: £42,600), of which £33,586 (2016: £31,600) was payable by the ACD.

A proportion of depositary fees and safe custody fees have been charged to Share Classes C, F, G, P, Q and R in accordance with the Prospectus.The remaining costs attributable to Share Classes A and I continue to be borne by the ACD.

Fees are inclusive of VAT.

31 March 2016

133



6. Taxation

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

a) Analysis of tax charge

Current tax:

Corporation tax - - - 2 -Irrecoverable overseas tax 1,184 397 4,620 231 1,430Total current tax 1,184 397 4,620 233 1,430

Deferred tax:

Deferred taxation - - - 1 1Total deferred tax - - - 1 1

Total taxation (note 6b) 1,184 397 4,620 234 1,431

b) Factors affecting tax charge

Net revenue before taxation 12,144 6,613 42,841 2,432 10,181

Net revenue multiplied by the rate of corporation tax applicable to UK open-ended investment companies of 20% 2,429 1,323 8,568 486 2,036

Effects of:UK dividends (1) - (1,289) - -Other non-taxable revenue (26) (6) (30) - -Overseas non-taxable dividend revenue (2,302) (1,213) (7,892) (461) (1,950)Double taxation relief - - (2) (2) (51)Movement in excess management expenses (100) (100) 683 (20) (80)Irrecoverable overseas tax 1,184 397 4,620 231 1,430Taxable income taken to capital - - - - 46Non taxable property revenue from UK REITS- non PID - - (4) - -Overseas tax expensed - (4) (34) - -

Total taxation (note 6a) 1,184 397 4,620 234 1,431

c) Factors affecting future tax charges

Unrecognised deferred tax asset 133 197 8,768 - -

No deferred tax assets have been recognised on the above excess expenses because the sub-funds are not expected to generate taxable income ina future period in excess of the deductible expenses of that future period. Accordingly, it is unlikely that the sub-funds will be able to reduce future taxliabilities through the use of existing excess expenses.

Any excess management expenses, or non trade loan relationship deficit, brought forward are available to be used against future taxable income inthe Funds of the Company, where appropriate.

The tax assessed for the year is different from the rate of corporation tax applicable to UK open-ended investment companies (20%). The differencesare explained below:

134



6. Taxation (continued)

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2016 £'000 £'000 £'000 £'000 £'000

a) Analysis of tax charge

Current tax:

Irrecoverable overseas tax 1,378 606 4,627 201 1,490Total current tax 1,378 606 4,627 201 1,490

Deferred tax:

Deferred taxation - - - - (1)Total deferred tax - - - - (1)

Total taxation (note 6b) 1,378 606 4,627 201 1,489

b) Factors affecting tax charge

Net revenue before taxation 12,428 9,240 36,784 1,864 9,847

Net revenue multiplied by the rate of corporation tax applicable to UK open-ended investment companies of 20% 2,486 1,848 7,357 373 1,969

Effects of:UK dividends - - (1,406) - (1)Other non-taxable revenue (40) (21) (149) - -Overseas non-taxable dividend revenue (2,679) (2,114) (7,416) (389) (2,045)Double taxation relief - - - - 3Movement in excess management 233 297 1,647 16 80Irrecoverable overseas tax 1,378 606 4,627 201 1,490Overseas tax expensed - (10) (33) - (7)

Total taxation (note 6a) 1,378 606 4,627 201 1,489

c) Factors affecting future tax charges

Unrecognised deferred tax asset 233 297 8,085 20 80

Any excess management expenses, or non trade loan relationship deficit, brought forward are available to be used against future taxable income inthe Funds of the Company, where appropriate.

No deferred tax assets have been recognised on the above excess expenses because the sub-funds are not expected to generate taxable income ina future period in excess of the deductible expenses of that future period. Accordingly, it is unlikely that the sub-funds will be able to reduce future taxliabilities through the use of existing excess expenses.

The tax assessed for the year is different from the rate of corporation tax applicable to UK open-ended investment companies (20%). The differencesare explained below:

135



7. Distributions

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

Distributions

Final distribution 10,331 5,758 36,387 2,121 8,17510,331 5,758 36,387 2,121 8,175

Add: Revenue deducted on the cancellation of shares 909 659 2,315 161 676Deduct: Revenue received on the issue of shares (280) (201) (481) (84) (74)Net distributions for the year 10,960 6,216 38,221 2,198 8,777

Movement between net revenue after taxation and distributions

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000Net revenue after taxation 10,960 6,216 38,221 2,198 8,750Undistributed income b/fwd - - (1) - -Undistributed income c/fwd - - 1 - -Notional tax charge transferred to capital - - - - 27Net distributions for the year 10,960 6,216 38,221 2,198 8,777

The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares and comprise:

Details of the distributions per share are set out in the tables on pages 150 to 154.As a result of the rounding down of distribution rates to four decimal places of a penny, a small amount of income will typically be carried forward fordistribution in the following year. This may result in the total revenue distributed for a year marginally exceeding the total net revenue earned duringthe year.

136



7. Distributions (continued)

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2016 £'000 £'000 £'000 £'000 £'000

Distributions

Final distribution 8,814 5,060 29,601 1,604 7,2048,814 5,060 29,601 1,604 7,204

Add: Revenue deducted on the cancellation of shares 2,498 3,697 3,063 77 1,325Deduct: Revenue received on the issue of shares (262) (123) (507) (18) (171)Net distributions for the year 11,050 8,634 32,157 1,663 8,358

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2016 £'000 £'000 £'000 £'000 £'000Net revenue after taxation 11,050 8,634 32,157 1,663 8,358Undistributed income b/fwd - - (1) - -Undistributed income c/fwd - - 1 - -Net distributions for the year 11,050 8,634 32,157 1,663 8,358

The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares and comprise:

Details of the distributions per share are set out in the tables on pages 150 to 154.As a result of the rounding down of distribution rates to four decimal places of a penny, a small amount of income will typically be carried forward fordistribution in the following year. This may result in the total revenue distributed for a year marginally exceeding the total net revenue earned duringthe year.

Movement between net revenue after taxation and distributions

137


Notes to the Financial Statements (continued)as at 31 March 2017

8. Debtors

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

Amounts receivable for issue of shares 214 10 357 5 20Sales awaiting settlement - - 56,883 - -Accrued revenue 908 1,039 4,225 950 405Overseas tax recoverable 1,455 - 1,158 - 2

2,577 1,049 62,623 955 427

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2016 £'000 £'000 £'000 £'000 £'000

Amounts receivable for issue of shares 13 10 200 13 493Sales awaiting settlement 1,653 1 69 - 7,171Accrued revenue 201 1,528 3,932 800 456Overseas tax recoverable 1,474 - 1,008 - 1

3,341 1,539 5,209 813 8,121

9. Cash and bank balances

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

Cash and bank balances 556 604 2,953 24 908Amounts held at futures brokers 867 152 18,352 171 6,017

1,423 756 21,305 195 6,925

Overdraft bank balances - - - (42) -Overdraft amounts held at futures brokers - (84) (76) (12) -

1,423 672 21,229 141 6,925

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2016 £'000 £'000 £'000 £'000 £'000

Cash and bank balances 4,687 583 4,439 350 1,117Amounts held at futures brokers 1,967 382 307 64 1,721

6,654 965 4,746 414 2,838

Overdraft amounts held at futures brokers (122) (171) (127) - -6,532 794 4,619 414 2,838

138



10. Provisions for liabilities

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000Deferred taxation - - - 1 1

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2016 £'000 £'000 £'000 £'000 £'000Deferred taxation - - - - -

11. Creditors

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

Amounts payable for cancellation of shares 278 200 2,059 - 514Purchases awaiting settlement - - 49,296 - -Accrued expenses 50 102 840 20 29Corporation tax payable 1,101 - 934 2 -

1,429 302 53,129 22 543

European Fund

Far Eastern Fund


Japanese Fund

North American

Fund31 March 2016 £'000 £'000 £'000 £'000 £'000

Amounts payable for cancellation of shares 276 122 1,764 44 5,274Purchases awaiting settlement 52 - - - -Accrued expenses 90 264 846 29 43Corporation tax payable 1,101 - 934 - -

1,519 386 3,544 73 5,317

139



12. Provision for deferred tax

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000Provision at start of year - - - - -Deferred tax charge in profit & loss account for the year (note 6a) - - - 1 1Provision at end of year - - - 1 1

31 March 2016 £'000 £'000 £'000 £'000 £'000Provision at start of year - - - - 1Deferred tax charge in profit & loss account for the year (note 6a) - - - - (1)Provision at end of year - - - - -

13. Capital commitments and contingent liabilities

14. Related party transactions

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

15 31 774 4 13

9,849 4,944 26,905 2,076 7,995

9,849 4,944 26,905 2,076 7,995

- - 143,871 - -

- - 2,631 - -

85.06% 35.76% 22.05% 96.42% 84.33%

The balance due to the ACD at the year end in respect of management charges was as follows:

At the balance sheet date the provision for deferred tax was £2,020 (31/03/2016: Nil).

At the balance sheet date there were no capital commitments (31/03/2016: Nil) and no contingent liabilities (31/03/2016: Nil).

HBOS Investment Fund Managers Limited, ("the ACD") is a related party and is regarded as a controlling party by virtue of having the ability to act inrespect of the operations of the Fund. Lloyds Banking Group, as the parent company of the ACD is the ultimate controlling party of the Fund. As suchany member company of Lloyds Banking Group is also a related party.

Fees paid to HBOS Investment Fund Managers Limited ("the ACD") are shown in Note 5. The aggregate monies received through issue and paid oncancellation of shares are disclosed in the Statement of change in net assets attributable to shareholders. Any amounts due to or from the ACD at theend of the year are disclosed in Notes 8 and 11.

The amounts of distributions payable to companies in the Lloyds Banking Group which were outstanding at the year end were as follows:

Distributions payable to the Lloyds Banking Group, parent company of the ACD during the year were as follows:

The Fund has related party holdings within Lloyds Banking Group with value as follows:

Income received from Lloyds Banking Group during the year was as follows:

Percentage of shares in issue owned by Lloyds Banking Group and its subsidiaries at the year end:

140



14. Related party transactions (continued)

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2016 - Restated £'000 £'000 £'000 £'000 £'000

34 112 732 7 23

8,474 4,413 24,064 1,551 7,110

8,474 4,413 24,064 1,551 7,110

- - 115,050* - -

- - 2,941* - -

83.97% 34.39% 22.21% 91.83% 86.76%

15. Shareholder funds

Class A Class C* Class F Class G Class I Class P*** Class Q*** Class R*** Class SW1**

European Fund 0.50% 1.35% 1.25% 1.00% 0.00% 0.85% 0.75% 0.50% 1.00%Far Eastern Fund 0.50% 1.35% 1.25% 1.00% 0.00% 0.85% 0.75% 0.50% 1.00%International Growth Fund 0.50% 1.35% 1.25% 1.00% 0.00% 0.85% 0.75% 0.50% 1.50%Japanese Fund 0.50% 1.35% 1.25% 1.00% 0.00% 0.85% 0.75% 0.50% 1.00%North American Fund 0.50% 1.35% 1.25% 1.00% 0.00% 0.85% 0.75% 0.50% 1.00%

***Share class launched 21 February 2017.

Where a Fund has more than one share class, each class may have a different charging structure. Consequently, the level of net revenue attributableto each share class may differ.

The annual management charge on each share class is as follows (2016: same):

*Prior year balances have been reanalysed to present the balances consistently across both years.

Income received from Lloyds Banking Group during the year was as follows:

Percentage of shares in issue owned by Lloyds Banking Group and its subsidiaries at the year end:

The balance due to the ACD at the year end in respect of management charges was as follows:

The amounts of distributions payable to companies in the Lloyds Banking Group which were outstanding at the year end were as follows:

Distributions payable to the Lloyds Banking Group, parent company of the ACD during the year were as follows:

The Fund has related party holdings within Lloyds Banking Group with value as follows:

*The annual management charge has changed from 1.50% to 1.35% during the year.**Share class closed on 26 May 2016.

141



15. Shareholder funds (continued)

Fund / Share Class

European FundShare Class AShare Class CShare Class FShare Class GShare Class IShare Class P** -Share Class Q** -Share Class R** -Share Class SW1*

Fund / Share Class

Far Eastern FundShare Class AShare Class CShare Class FShare Class GShare Class IShare Class P**Share Class Q**Share Class R**Share Class SW1*

Fund / Share Class

International Growth FundShare Class AShare Class CShare Class FShare Class GShare Class IShare Class P**Share Class Q**Share Class R**Share Class SW1*

Fund / Share Class

Japanese FundShare Class AShare Class CShare Class FShare Class GShare Class IShare Class P**Share Class Q**Share Class R**Share Class SW1*

**Share class launched 21 February 2017.

130,203,612

31 March 20171 April 2016

6,024,000

25,000- 25,000

-

31 March 2017

5,275,000 (7,530,000) 7,684,000

20,0006,730,000 (16,525,000)

1,949,970

70,000 (370,000)

4,493,530

-

(55,000)-

17,646,000 840,000 (2,615,000)

1 April 2016

-

Opening shares Creations Cancellations

35,000 (190,000)

Closing shares

Closing shares

185,000

-- 40,000 - 40,000

1,794,970

(850,000) 4,592,000280,000 (895,000)135,000

Opening shares Creations Cancellations

85,000 (385,000)

15,871,000

4,846,449

Opening shares Creations Cancellations Closing shares

1 April 2016

5,146,449

31 March 2017

- 42,00042,000 -

35,000 - (35,000)

- 185,000 -

13,446,000 35,000 (1,595,000) 11,886,000

23,105,095 3,290,000 (4,945,000) 21,450,095(7,870,000) 8,713,00011,008,000 5,575,000

508,340,000527,704,000 12,460,000 (70,525,000) 469,639,000

328,197,551 9,050,000 (36,475,000) 300,772,55173,560,000 19,915,000 (14,320,000) 79,155,000

543,060,000 12,215,000 (46,935,000)

- 838,000 - 838,000- 313,000 - 313,000

50,000 - (50,000) -- 275,000 - 275,000

1 April 2016 31 March 2017

611,155 - - 611,155


2,411,000 300,000 (400,000) 2,311,0002,996,000 30,000 (405,000) 2,621,000

219,432,612 22,395,000 (40,940,000) 200,887,61213,464,000 860,000 (12,475,000) 1,849,000

- 20,000 - 20,000

45,000 - (45,000)- 25,000 - 25,000- 20,000 - 20,000

*Share class closed 26 May 2016.

20,00025,00025,000

4,793,5305,307,0006,639,0009,939,000

139,998,612

55,000

-

142



15. Shareholder funds (continued)

Fund / Share Class

North American FundShare Class AShare Class CShare Class FShare Class GShare Class IShare Class P**Share Class Q**Share Class R**Share Class SW1*

**Share class launched 21 February 2017.

16. Securities on loan

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

Citigroup Global Markets (UK) 2,025 264 4,523 59 -Credit Suisse Securities (Europe) 6,037 294 13,083 2,356 901Deutsche Bank - 43 - 83 -HSBC - - 2,249 - -ING 4,389 24 - - -Merrill Lynch International 14 911 - 856 32Morgan Stanley International - 47 - 20 -UBS 10,418 4,252 34,019 3,445 12,798Total securities on loan 22,883 5,835 53,874 6,819 13,731

Collateral heldBonds 6,530 3,256 31,684 3,331 1,106Equities 18,126 3,028 25,880 4,013 13,800Total collateral held 24,656 6,284 57,564 7,344 14,906

The gross earnings and fees paid for the year are included in the table below (31 March 2016: £nil):

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000Gross earnings 60 23 283 21 73Net earnings 45 17 212 16 55

*Share class closed 26 May 2016.

The aggregate value of securities on loan at 31 March 2017 is £103,142k (31 March 2016: £nil). The identities of these counterparties are listed in thecounterparties table below. Securities on loan are included in the portfolio statement and no account is taken of any collateral held. The aggregatevalue of collateral held at 31 March 2017 is £110,754k (31 March 2016: £nil). This collateral is listed in the collateral held table below.

- 55,000 (10,000) 45,000- 47,000 - 47,000

85,000 - (85,000) -- 55,000 - 55,000

91,267,087 2,685,000 (12,890,000) 81,062,0874,381,000 3,360,000 (1,435,000) 6,306,0004,798,000 510,000 (850,000) 4,458,0003,829,000 100,000 (555,000) 3,374,000

834,885 - (55,000) 779,885


1 April 2016 31 March 2017

143



17. Portfolio transaction costs

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

Analysis of total purchase costs:43,839 47,094 196,116 19,894 51,272

Equities 107,607 74,321 464,256 24,895 136,284Options 1,163 - 4,414 - 1,529Trades in the year before transaction costs 152,609 121,415 664,786 44,789 189,085

CommissionsEquities 4 12 16 1 4Futures 4 2 5 1 2Options 10 - 10 - -Total commissions 18 14 31 2 6

TaxesEquities 64 32 247 - -Total taxes 64 32 247 - -

Total purchase costs 82 46 278 2 6Total net purchases after transaction costs 152,691 121,461 665,064 44,791 189,091

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

Analysis of total sale costs:48,121 44,136 197,407 17,500 53,132

Equities 121,642 91,423 618,911 39,167 182,684Options 1,365 - 3,767 - 1,336Trades in the year before transaction costs 171,128 135,559 820,085 56,667 237,152

CommissionsEquities (5) (17) (26) (2) (7)Futures (5) (2) (5) (1) (2)Options (11) - (12) - (3)Total commissions (21) (19) (43) (3) (12)

TaxesEquities - (116) (19) - (4)Total taxes - (116) (19) - (4)

Total sale costs (21) (135) (62) (3) (16)Total net sales after transaction costs 171,107 135,424 820,023 56,664 237,136

Collective Investment Schemes

Collective Investment Schemes

144



17. Portfolio transaction costs (continued)

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 % % % % %

Commissions (%) - PurchasesEquities 0.00% 0.02% 0.00% 0.00% 0.00%Options 0.86% - 0.23% - -

Taxes (%) - PurchasesEquities 0.06% 0.04% 0.05% - -

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 % % % % %

Commissions (%) - SalesEquities 0.00% 0.02% 0.00% 0.01% 0.00%Options 0.81% - 0.32% - 0.22%

Taxes (%) - SalesEquities - 0.13% 0.00% - 0.00%

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 % % % % %

Commissions 0.01% 0.01% 0.00% 0.00% 0.00%Taxes 0.02% 0.08% 0.01% 0.00% 0.00%

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 % % % % %

0.05% 0.19% 0.05% 0.21% 0.02%

Average portfolio dealing spread

Total transaction costs expressed as a percentage of asset class trades

The average portfolio dealing spread at the balance sheet

Total transaction cost expressed as a percentage of net asset value

145




European Fund

Far Eastern

Fund


FundJapanese

Fund

North American


Analysis of total purchase costs:Collective Investment Schemes 36,792 35,036 137,534 1,110 47,491Equities 119,596 112,399 224,216 20,759 136,825Options 3 - - - 28Trades in the year before transaction costs 156,391 147,435 361,750 21,869 184,344

CommissionsEquities 5 22 32 1 6 Futures 4 2 3 0 3Options 0 - - - 0Total commissions 9 24 35 1 9

TaxesEquities 65 48 74 - -Total taxes 65 48 74 - -

Total purchase costs 74 72 109 1 9Total net purchases after transaction costs 156,465 147,507 361,859 21,870 184,353

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American


Analysis of total sale costs:Collective Investment Schemes 29,470 42,087 150,706 - 52,426Equities 243,704 277,490 420,562 28,135 249,013Options 54 - - - 58Trades in the year before transaction costs 273,228 319,635 571,268 28,135 301,497

CommissionsEquities (6) (34) (35) (1) (8)Futures (3) (2) (3) 0 (2)Options (1) (0) - - (0)Total commissions (10) (36) (38) (1) (10)

TaxesEquities - (328) (57) - (3)Total taxes - (328) (57) - (3)

Total sale costs (10) (364) (95) (1) (13)Total net sales after transaction costs 273,218 319,271 571,173 28,134 301,484

*Prior year comparatives have been updated to be in line with current year disclosure.

*Prior year comparatives have been updated to be in line with current year disclosure.

146




European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2016 % % % % %

Commissions (%) - PurchasesEquities 0.00% 0.02% 0.01% 0.00% 0.00%Options 0.00% - - - 0.00%

Taxes (%) - PurchasesEquities 0.05% 0.04% 0.03% - -

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2016 % % % % %

Commissions (%) - SalesEquities 0.00% 0.01% 0.01% 0.00% 0.00%Options 1.85% - - - 0.24%

Taxes (%) - SalesEquities - 0.12% 0.01% - 0.00%

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2016 % % % % %

0.00% 0.02% 0.00% 0.00% 0.00%Taxes 0.01% 0.12% 0.01% 0.00% 0.00%

Total transaction costs expressed as a percentage of asset class trades

Total transaction cost expressed as a percentage of net asset value

Commissions

147




European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2016 % % % % %

0.06% 0.29% 0.06% 0.22% 0.03%

18. Fair Value

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2017 £'000 £'000 £'000 £'000 £'000

Assets391,038 218,004 1,790,715 101,130 489,694

20 95 141,250 2 17

- 26 - - -

Liabilities(167) (5) (546) (78) (124)

(180) (114) (746) (6) (296)

- - - - -

Total Fair Value 390,711 218,006 1,930,673 101,048 489,291

The average portfolio dealing spread at the balance sheet

Average portfolio dealing spread

Level 2

Level 3

Level 1

Level 2

Level 3

Level 1

Level 1 - Quoted prices for identical instruments in an active market. A financial instrument is regarded as quoted in an active market if quoted pricesare readily and regularly available from an exchange, dealer, broker, pricing service etc. These include active listed equities, exchange tradedderivatives etc.

Level 2 - Valuation techniquies with inputs other than quoted prices within level 1 that are observable. This category includes instruments valued usingquoted market prices in active markets that are considered less than active; or other valuation techniques where all significant inputs are directly orindirectly observable from market data. This category will typically include debt securities and collective investment schemes.

Level 3 - Prices using valuation techniques where Inputs are unobservable. This category may include single or broker priced securities andsuspended or unlisted securities.

Direct transaction costs are expenses incurred when buying and selling financial investments. In the case of equities and collective investmentschemes, broker commissions and transfer taxes may be paid on each transaction.

148



18. Fair Value (continued)

European Fund

Far Eastern

Fund


FundJapanese

Fund

North American

Fund31 March 2016 £'000 £'000 £'000 £'000 £'000

Assets327,544 172,713 1,528,071 87,640 415,723

195 216 112,054 1 41

- - - - -

Liabilities(66) (17) - (18) (92)

(51) (160) (180) (11) (169)

- - - - -

Total Fair Value 327,622 172,752 1,639,945 87,612 415,503

The Fund early adopted the FRS102 update made in March 2016.

Level 1 - Quoted prices for identical instruments in an active market. A financial instrument is regarded as quoted in an active market if quoted pricesare readily and regularly available from an exchange, dealer, broker, pricing service etc. These include active listed equities, exchange tradedderivatives etc.

Level 2

Level 3

Level 1

Level 2

Level 3

Level 1

Level 2 - Valuation techniquies with inputs other than quoted prices within level 1 that are observable. This category includes instruments valued usingquoted market prices in active markets that are considered less than active; or other valuation techniques where all significant inputs are directly orindirectly observable from market data. This category will typically include debt securities and collective investment schemes.

Level 3 - Prices using valuation techniques where Inputs are unobservable. This category may include single or broker priced securities andsuspended or unlisted securities.

149


Distribution tables

Distribution DistributionNet revenue Equalisation payable paid31 Mar 2017 31 Mar 2017 31 Mar 2017 31 Mar 2016

pence per share pence per share pence per share pence per share

European Fund

Final Distribution

Share Class AGroup 1 6.4224 - 6.4224 4.9132Group 2 2.5128 3.9096 6.4224 4.9132

Share Class CGroup 1 1.6091 - 1.6091 0.7206Group 2 0.5221 1.0870 1.6091 0.7206

Share Class FGroup 1 0.6727 - 0.6727 0.4484Group 2 0.1973 0.4754 0.6727 0.4484

Share Class GGroup 1 1.0265 - 1.0265 0.3617Group 2 0.5471 0.4794 1.0265 0.3617

Share Class IGroup 1 7.5640 - 7.5640 6.0527Group 2 3.5767 3.9873 7.5640 6.0527

Share Class P**Group 1 0.3385 - 0.3385 n/aGroup 2 0.2261 0.1124 0.3385 n/a

Share Class Q**Group 1 0.3489 - 0.3489 n/aGroup 2 0.1991 0.1498 0.3489 n/a

Share Class R**Group 1 0.3736 - 0.3736 n/aGroup 2 0.2224 0.1512 0.3736 n/a

Share Class SW1*Group 1 n/a n/a n/a 1.6600Group 2 n/a n/a n/a 1.6600

The above distributions for share classes A and I are payable on or before 31 May 2017.The above distributions for share classes C, F, G, P, Q and R will be accumulated to the capital of the Fund on or before 31 May 2017.

*Share class closed 26 May 2016.**Share class launched 21 February 2017.

Corporate Tax (Unaudited)

A shareholder liable to corporation tax receives this distribution, excluding equalisation, as follows:

Group 2: Shares purchased between 1 April 2016 and 31 March 2017

100.00% of the dividend together with the tax credit is received as franked investment income.

0.00% of the dividend is received as an annual payment (non foreign element) received after the deduction of income tax at the lower rate and is liable tocorporation tax. The tax deemed to be deducted is treated as income tax.

0.00% of the dividend is received as an annual payment (foreign element) received after the deduction of income tax at the lower rate and is liable tocorporation tax. It is treated as foreign income in the hands of the corporate investor and is liable to corporation tax. The associated deemed tax is treatedas foreign tax in the hands of the investor, who may be able to claim double tax relief. Investors cannot reclaim any of this deemed tax on the foreignelement from HM Revenue & Customs.

Group 1: Shares purchased prior to 1 April 2016

150


Distribution tables (continued)



Far Eastern Fund

Final Distribution















Group 1: Shares purchased prior to 1 April 2016Group 2: Shares purchased between 1 April 2016 and 31 March 2017



151






Final Distribution


















152





Japanese Fund

Final Distribution


















153





North American Fund

Final Distribution







Share Class Q**Group 1 0.0814 - 0.0814 n/aGroup 2 0.0814 0.0814 n/a











-

154


Additional Information

Investment Adviser*

* Authorised and regulated by the Financial Conduct Authority.

HBOS International Investment Funds ICVC is an Open-Ended Investment Company with variable capital and the Shareholders are not liable for thedebts of the Company.

Where applicable, Scottish Widows Share Class 1 is referenced as SW1.

In the future there may be other Funds launched.

This Report and Financial Statements should not be regarded as an offer to sell or an invitation to buy investment products.

The Prospectus and the Instrument of Incorporation of the Company are available from the ACD upon request.

The value of an investment and the revenue from it may go up and down and you may get back less than invested.

Past performance is not a guide to future performance.

Address of Register of Shareholders

15 Dalkeith RoadEdinburghEH16 5WL

Trinity RoadHalifaxWest Yorkshire HX1 2RG

The CompanyHBOS International Investment Funds ICVC HBOS Investment Fund Managers Limited

Investment Adviser*

Authorised Corporate Director (ACD) and Registrar* Depositary*HBOS Investment Fund Managers LimitedTrinity RoadHalifaxWest Yorkshire HX1 2RG

Regulatory Body Independent AuditorsThe Financial Conduct Authority25 The North ColonnadeCanary WharfLondon E14 5HS

PricewaterhouseCoopers LLPLevel 4Atria One 144 Morrison Street Edinburgh EH3 8EX

State Street Trustees LimitedRegistered Office:20 Churchill PlaceCanary WharfLondonE14 5HJ

Correspondence Address:525 Ferry RoadEdinburghEH5 2AW

Aberdeen Asset Investments LimitedBow Bells House1 Bread StreetLondonEC4M 9HH

€ -

155

HBOS Investment Fund Managers Limited (Registered in England No. 941082). Registered Office: Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority.

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