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RBS Investment Funds ICVC

Annual Report & Financial Statementsfor the year ended28 February 2018

2 RBS Investment Funds ICVC Annual Report & Financial Statements 2018

RBS Investment Funds ICVCTable of Contents

Report of the Authorised Corporate Director 3

Economic and Market Overview 5

Notes applicable to the Financial Statements of all Sub-funds 6

Royal Bank of Scotland Balanced Fund 9

Royal Bank of Scotland Equity Income Fund 62

Royal Bank of Scotland Extra Income Fund 81

Royal Bank of Scotland Growth Fund 99

Royal Bank of Scotland High Yield Fund 118

Royal Bank of Scotland International Growth Fund 137

Statement of the Authorised Corporate Director's Responsibilities 156

Report of the Depositary 157

Independent Auditor’s Report to the Shareholders of RBS Investment Funds ICVC 158

Investor Information 160


RBS Investment Funds ICVCReport of the Authorised Corporate Director

The CompanyRBS Investment Funds ICVC ('the Company') is an Open Ended Investment Company ('OEIC') with variable share capital incorporated in Englandand Wales on 21 May 2003. The property of the Company ('Scheme Property') is entrusted to JP Morgan Europe Limited ('the Depositary') for safekeeping. The Shareholders are not liable for the debts of the Company.The objective of the Company is to invest the Scheme Property mainly in transferable securities, deposits and units in collective investmentschemes, as permitted by the Collective Investment Schemes Sourcebook ('the Regulations') published by the Financial Conduct Authority ('FCA'),with the aim of spreading investment risk and giving its shareholders the benefit of the results of the management of the property.The Company may enter into derivative transactions. For each Sub-fund, such transactions are used for efficient portfolio management and thederivatives are used to reduce the risk profile of that Sub-fund.The Company has an umbrella structure, which means that it contains many Sub-funds, each with a different investment objective. In the financialstatements you will find an investment review for each Sub-fund, which includes details of the investment objectives. There are six Sub-funds inthe Company, as at 28 February 2018, which are classed as UCITS (Undertakings for Collective Investments in Transferable Securities) Schemesfor the purposes of the Regulations.Under the Protected Cell Regime, each Sub-fund represents a segregated portfolio of assets and accordingly, the assets of a Sub-fund belongexclusively to that Sub-fund and shall not be used or made available to discharge (directly or indirectly) the liabilities of, or claims against, anyother person or body, including any other Sub-fund and shall not be available for any such purpose.

UCITS V DirectiveDirective 2014/91/EU (the ‘UCITS V Directive’) introduced changes to the existing framework for UCITS with the aim of increasing the protectionof assets held by a UCITS and reducing risks to investors in UCITS. In the UK, these changes were implemented by way of secondary legislationand changes to the FCA’s Handbook (the ‘UK implementing Legislation’) which were effective from 18 March 2016. The primary impact is torequire depositaries of UCITS to comply with enhanced requirements.

As part of the UCITS V Directive, the Authorised Corporate Director (‘ACD’) is required to have a Remuneration Policy in place that complies withit. The up-to-date Remuneration Policy, which includes a description of how remuneration and benefits are calculated and the identities of thepersons responsible for awarding remuneration and benefits, is available athttp://personal.natwest.com/personal/investments/existing-customers/Key_Customer_Documents.html and http://personal.rbs.co.uk/personal/investments/existing-customers/Key_Customer_Documents.html.

A paper copy will be made available free of charge on request to the ACD, at the contact details shown on p159.

Securities Financing Transactions RegulationThe Securities Financing Transactions Regulation, as published by the European Securities and Markets Authority, aims to improve the transparencyof the securities financing markets. Disclosures regarding exposure to Securities Financing Transactions (SFTs) or total return swaps is required.During the year to 28 February 2018 and at the balance sheet date, the Company did not use SFTs or total return swaps, as such no disclosure is required.

MiFID IIMiFID (Markets in Financial Instruments Directive) is the framework of EU legislation that applies to (i) the provision of investment services andactivities in relation to instruments such as shares, bonds, funds and derivatives; and (ii) the trading of these instruments. Following the financialcrisis, there has been a desire within the EU to address risks in the wholesale financial markets and also strengthen some of the protections inthe retail industry. MiFID has therefore been revised and the new EU framework, known as MiFID II, was implemented in the UK through changesto FCA rules with effect from 3 January 2018.

The impact on the ACD is limited as it is a Non-MiFID firm. However there are a number of key areas of impact as a result of specific requirementsand ‘Gold plating’ by the FCA. These extend to Best Execution, Inducements & Research, Recording of telephone and electronic communications,and some elements of the Product Governance requirements around ongoing product monitoring and costs and charges disclosures. Therequirements are based upon the ACD also being a product manufacturer. Under MiFID II, the distributor of the products including the sub-fundsare Royal Bank of Scotland, National Westminster Bank and Ulster Bank and all top ups flow through these distribution channels. Disclosure ofthe costs and charges incurred on the sub-funds will be included in half-yearly annual statements with effect from those as at 28 February 2018.

Changes to ProspectusThe Prospectus was amended during the period to effect a number of drafting improvements which, in particular, includes a Target Market updatefor each sub-fund to reflect the requirements of MiFID II which was effective from 3 January 2018.

Authorised StatusFrom 21 May 2003, the Company was authorised as an Open-Ended Investment Company under Regulation 12 of the Open-Ended InvestmentCompanies Regulation 2001.

The Financial StatementsWe are pleased to present the financial statements of the Company for the year ended 28 February 2018, as required by the Regulations.Information for each of the six Sub-funds has also been included in these financial statements. On the following pages, we review the performanceof each of those Sub-funds during the year. We hope that you find our review useful and informative.

The DepositaryThe Depositary, JP Morgan Europe Limited, provides its services under an agreement dated 18 March 2016 between the Company, RBS CollectiveInvestment Funds Limited ('the ACD') and the Depositary which took effect on 18 March 2016. The agreement replaced a previous Agreementbetween the parties to facilitate compliance with the UCITS V Directive.


RBS Investment Funds ICVCReport of the Authorised Corporate Director(continued)

Going ConcernThe Directors are of the opinion that it is appropriate to continue to adopt the going concern basis in the preparation of the financial statementsas the assets of the Sub-funds consist predominantly of securities that are readily realisable and, accordingly, the Sub-funds have adequatefinancial resources to continue in operational existence for the foreseeable future.

Holdings in other Sub-funds of the CompanyAs at 28 February 2018, no Sub-funds held any shares in any other Sub-fund of the Company.

Post balance sheet eventsThere were no events that occurred after 28 February 2018 which would require disclosure or adjustments to the financial statements of any ofthe Sub-funds of the Company.

In accordance with COLL 4.5.8BR the Annual Report and Financial Statements were approved by the ACD of the Company and authorised forissue on 18 June 2018.

Ben Huntfor and on behalf of RBS Collective Investment Funds Limited Authorised Corporate Director18 June 2018


RBS Investment Funds ICVCEconomic and Market Overview

EquitiesEquity markets performed well during the review period, supported by an acceleration in economic growth rates globally. There was an unusuallylow level of volatility, with several share markets rising to all-time highs. In spite of the improvement in economic conditions, inflation appearedto remain under control in key regions, helping to support investor sentiment. We also saw an encouraging amount of merger and acquisitionactivity, which is often a sign that companies are feeling optimistic about their future prospects. Against this background, investors typicallyfavoured equities ahead of other investment types. Dividends paid by listed companies tend to provide a reasonable level of income and shareshave the additional benefit of potentially generating capital growth. These characteristics compare favourably to bonds, for example, where yieldsremained close to record lows.

Fixed Income Government fixed income markets posted disappointing returns over the review period. Investors were concerned about the impact of the maincentral banks winding down the supportive monetary policies that had been central to bonds’ strong performance since the financial crisis.Indeed, the year saw interest rate rises in the US and the UK and a sharp reduction in the European Central Bank’s bond purchasing programme.Corporate bonds outperformed as improving economic conditions supported company profitability and made debt servicing costs morecomfortable for most issuers. With government bond yields remaining close to historic lows, the higher yields available in the corporate bondmarket appealed to many investors.

Aviva Investors Global Services Limited18 June 2018

*Source: Lipper, a Thomson Reuters Company; Basis: Total return, net of fees & net income re-invested.

Important information:Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as at 28/02/2018. Unless statedotherwise any views and opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investmentmanaged by Aviva Investors nor as advice of any nature.

The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. Past performance is not a guide to future returns.

Issued by Aviva Investors Global Services Limited, the Investment Manager to the Sub-fund registered in England No. 1151805. Registered Office: St. Helens, 1 Undershaft, London EC3P 3DQ.


RBS Investment Funds ICVC Notes applicable to the Financial Statements of all Sub-fundsfor the year ended 28 February 2018

1 Accounting Policies

(a) The financial statements of the Company comprise the financial statements of each of the Sub-funds and have been prepared on a goingconcern basis in accordance with FRS 102 and the Statement of Recommended Practice ‘Financial Statements of UK Authorised Funds’ issued bythe IMA (now known as the Investment Association) in May 2014 (the “SORP”).

(b) Where appropriate, certain permitted transactions such as derivatives are used for efficient portfolio management. Where such transactionsare used to protect or enhance capital, the gains and losses derived there from are included in ‘Net capital gains on investments’ in the Statementof Total Return. Any positions on such transactions open at the period end are reflected in the Balance Sheet at their marked to market value.When positions generate total returns, it will generally be appropriate to apportion such returns between capital and revenue to properly reflectthe nature of the transaction.

(c) Dividends on equities and revenue from shares held in underlying funds are recognised when the security is quoted ex-dividend. Interest ondeposits is accounted for on an accruals basis.

Any reported revenue from an offshore fund with reporting status from HMRC, in excess of any distribution received in the reporting period, isrecognised as revenue no later than the date on which the reporting fund makes this information available. The equalisation element is treatedas capital.

All distributions from Collective Investment Schemes (“CIS”) are recognised when the securities are quoted ex-dividend. All distributions fromholdings in CIS are treated as revenue with the exception of the equalisation element, which is treated as capital.

Returns from bond futures are apportioned into revenue and capital components in order to reflect the nature of the financial instrument.

Revenue on debt securities takes account of the amortisation of any discounts or premiums arising on the purchase price, compared to the finalmaturity value, over the remaining life of the security. Accrued interest purchased or sold is excluded from the cost of the security and is treatedas revenue. The Extra Income and High Yield Sub-funds distribute on an effective interest rate basis.

(d) Stock dividends: Ordinary stock dividends are recognised wholly as revenue and are based on the market value of the shares on the dates theyare quoted ex-dividend.

(e) Special dividends and share buy-backs are examined on a case by case basis to determine whether they should be treated as capital or revenue.

(f) The listed investments of the Sub-funds have been valued at bid market prices at midday on 28 February 2018 in line with the last dealingvaluations in the year. The valuations of unlisted investments are based on the Authorised Corporate Director's assessment of their estimatedrealisable value. Suspended securities are valued initially at the suspended price but are subject to constant review.

For over-the-counter (“OTC”) derivatives (e.g. forward currency contracts), market value is determined based on valuation pricing models whichtake into account relevant market inputs as well as the time values, liquidity and volatility factors underlying the positions. Amounts due to andfrom an individual counterparty which falls under a legally enforceable master netting agreement are netted.

(g) All transactions in foreign currencies are translated into sterling at the rates of exchange ruling at the date of such transactions. Foreigncurrency assets and liabilities at the end of the accounting period are translated at the exchange rate at midday on 28 February 2018.

(h) Underwriting, sub-underwriting contracts and placings may also, subject to certain conditions set out in the Regulations, be entered into forthe Sub-funds. Commission earned on these transactions is accounted for on a receipts basis as revenue, to the extent that any shares are takenup, the commission is accounted for as capital.

(i) Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactionsor events have occurred at that date that will result in an obligation to pay less or receive more tax. Deferred tax assets are recognised only to theextent that the ACD considers that it is more likely than not that there will be taxable profits from which underlying timing differences can bededucted.

(j) Capital gains on investments in offshore funds without reporting fund status per HMRC guidelines are subject to corporation tax when thegain is realised. The tax liability is charged to the capital property of the Sub-fund. A provision for the liability that may arise on gains in the eventof the holding being sold and the gain crystallised is recorded to the capital property of the Sub-fund.


RBS Investment Funds ICVC Notes applicable to the Financial Statements of all Sub-funds(continued)

1 Accounting Policies (continued)

(k) The ACD may charge a dilution levy or dilution adjustment on the purchase and/or sale of shares.

For each of the Sub-funds, the dilution levy which, if charged, is added to the purchase cost or deducted from the sale proceeds, as appropriate,and becomes a part of the scheme property of the relevant Sub-fund.

A dilution levy may be charged on all Sub-funds, in the following circumstances:

I. where a Sub-fund is experiencing large levels of net purchases relative to its size;

II. where a Sub-fund is experiencing large levels of net sales relative to its size;

III. where a “large deal” is placed on a Sub-fund. For these purposes a large deal is defined as a deal exceeding £250,000 or 2% of the Net AssetValue of the Sub-fund whichever is the lesser; and,

IV. in any other circumstances where the ACD believes it will be in the interests of shareholders to charge a dilution adjustment.

(l) Expenses are recognised on an accruals basis and initially charged against revenue.

2 Distribution Policies

(a) All Sub-funds, with the exception of the High Yield and Extra Income Funds, are not more than 60% invested in qualifying investments (asdefined by s468L ICTA 1988) and will pay a dividend distribution. The High Yield and Extra Income Funds are more than 60% invested in qualifyinginvestments and will pay an interest distribution.

(b) The annual Authorised Corporate Director fees are charged to the income property of the Sub-fund except in the case of Equity Income wherethe ACD's annual fee is deducted from the capital account for the purpose of distributions. All other expenses are charged to the income propertyof the respective Sub-funds except those relating to the purchase and sale of investments (including activity charges) for all Sub-funds.

(c) The ordinary element of a stock dividend is treated as revenue and forms part of the distribution.

(d) All distributions, including those from accumulation holdings, on collective investment schemes are treated as revenue with the exception ofthe equalisation element, which is treated as capital.

(e) The allocation of revenue and expenses to each share class is based upon the proportion of the Sub-fund's assets attributable to each shareclass on the day the revenue is earned or the expense is suffered except the ACD’s fee.

3 Derivatives and other financial instruments

In pursuing its investment objectives, as stated within each Sub-fund’s profile, the Sub-funds hold a number of financial instruments. Thesefinancial instruments, other than derivatives, comprise securities and other investments, cash balances, debtors and creditors that arise directlyfrom its operations, for example, in respect of sales and purchases awaiting settlement, amounts receivable for issue and payable for redemptionsand debtors for accrued revenue.

The main risks arising from these financial instruments and the Authorised Corporate Director’s policies for managing these risks are summarisedbelow. These policies have been applied throughout the year.

Market Price RiskMarket price risk is the risk that the value of Sub-funds’ investment holdings will fluctuate as a result of changes in market prices caused by factorsother than interest rate or foreign currency movement. Market price risk arises mainly from uncertainty about future prices of financial instrumentseach Sub-fund holds. It represents the potential loss each Sub-fund might suffer through holding market positions in the face of price movements.Each Sub-funds’ investment portfolio is exposed to market price fluctuations which are monitored by the Authorised Corporate Director inpursuance of the investment objective and policy as set out in the Prospectus.

Adherence to investment guidelines and to investment and borrowing powers set out in the Instrument of Incorporation and in the rules of theCollective Investment Schemes Sourcebook of the Financial Conduct Authority mitigates the risk of excessive exposure to any particular type ofsecurity or issuer.

To help protect against this risk collateral will be used to reduce exposure to counterparties in respect of OTC derivatives other than forwardforeign currency contracts. Collateral will be deposited with an independent custodian and can be called upon if the counterparty fails to deliver.

Foreign Currency RiskForeign currency risk is the risk that the value of the Sub-funds’ investment holdings will fluctuate as a result of changes in foreign currency exchange rates.

A proportion of the Sub-fund’s assets are invested in overseas securities and movements in foreign exchange rates can affect the balance sheet.The ACD may seek to manage exposure to currency movements by using forward exchange contracts or by hedging the sterling value ofinvestments that are priced in other currencies. Revenue received in other currencies is converted to sterling on or near the date of receipt.

See the financial statements of each Sub-fund for its foreign currency risk profile.


RBS Investment Funds ICVC Notes applicable to the Financial Statements of all Sub-funds(continued)

3 Derivatives and other financial instruments (continued)

Interest Rate RiskInterest rate risk is the risk that the value of the Sub-funds’ investment holdings will fluctuate as a result of changes in interest rates.

Some of the Sub-funds may invest in fixed and floating rate securities. The revenue of each Sub-fund may be affected by changes to interest ratesrelevant to particular securities or as a result of the ACD being unable to secure similar returns on the expiry of contracts or sale of securities. Thevalue of the fixed interest securities may be affected by interest rate movements or the expectation of such movements in the future. Interestreceivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates.

Some of the Sub-funds’ investment portfolios are exposed to interest rate fluctuations which are monitored by the Authorised Corporate Directorin pursuance of the investment objective and policy as set out in the Prospectus. Adherence to investment guidelines and to investment andborrowing powers set out in the Instrument of Incorporation and in the rules of the Collective Investment Schemes Sourcebook of the FinancialConduct Authority mitigates the risk of excessive exposure to any particular type of security or issuer.

See the financial statements of each Sub-fund for its interest rate risk profile.

Liquidity RiskThe Sub-fund’s assets comprise mainly readily realisable securities. The main liability of the Sub-funds is the redemption of any shares thatinvestors wish to sell. Assets of the Sub-funds may need to be sold if insufficient cash is available to finance such redemptions.

Counterparty liquidity can be reduced by lower credit ratings or large cash outflows and margin calls can increase a Sub-fund’s liquidity risk.Liquidity risk tends to compound other risks. If a Sub-fund has a position in an illiquid asset, its limited ability to liquidate that position at shortnotice will compound its market risk.

Credit RiskCertain transactions in securities that the Sub-funds enters into expose it to the risk that the counterparty will not deliver the investment for apurchase, or cash for a sale after the Sub-fund has fulfilled its responsibilities. The Sub-funds only buy and sell investments through brokers, whichhave been approved by the ACD as an acceptable counterparty. In addition, limits are set to the exposure to any individual broker that may existat any time and changes in brokers’ financial ratings are reviewed.

In order to trade derivative instruments the ACD enters into an agreement with an approved counterparty. The ACD assesses the credit worthinessof the counterparty, however the Sub-fund remains at risk that the counterparty will not settle its obligations under the contract. Any collateraldue to or from the Sub-funds under the terms of the contract may not be settled. The Sub-funds restrict their exposure to credit losses on derivativeinstruments other than forward foreign currency contracts by trading via International Swap and Derivative Association (ISDA) MasterArrangements with each counterparty. For forward foreign currency contracts, given the short maturity of the transactions, the ACD believes therobust approval and monitoring procedures in place for the counterparties are sufficient to mitigate the counterparty risk associated with the contracts.

Derivatives Risk and Efficient Portfolio ManagementThe Sub-funds also enter into derivative transactions in the form of forward foreign currency, futures and options contracts. For all Sub-funds thepurpose of these financial instruments is Efficient Portfolio Management. Forward currency contracts are used to manage currency risk arisingfrom holdings of overseas securities. Futures and options are used to manage market price risk. The purpose of undertaking these contracts is toprotect the portfolio as far as possible from a downturn in the markets. Sensitivity analysis is required where the exposure to a Sub-fund is deemedto be significant. Entering into derivative contracts gives rise to Credit Risk as set out above.

See the financial statements of each Sub-fund for its derivative risk profile.

Fair value of financial assets and financial liabilitiesThere is no material difference between the value of the financial assets and liabilities, as shown in the balance sheet, and their fair value.

4 Commitments and contingent liabilities

There were no contingent liabilities as at the balance sheet date (28/02/17: £nil).

5 Related party transactions

RBS Collective Investment Funds Limited acts as principal on all the transactions of shares in the Sub-funds. The aggregated monies receivedthrough the creation and cancellation of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders and note 7.

For each Sub-fund amounts paid to RBS Collective Investment Funds Limited in respect of the ACD’s, associates and agents periodic fees aredisclosed in note 4. Any amounts due to or from the ACD at the end of the accounting period are disclosed in notes 8 and 10.

On 1 December 2008, the UK Government through HM Treasury became the ultimate controlling party of The Royal Bank of Scotland Group plc,and therefore the ultimate parent company of the ACD, RBS Collective Investment Funds Limited. The UK Government’s share holding is managedby UK Financial Investments Limited, a company wholly owned by the UK Government. Some of the Sub-funds had transactions with UKGovernment bodies on an arms' length basis and direct investments in government securities at the period end are shown in each portfoliostatement where appropriate. The volume and diversity of such transactions in the Sub-funds are such that disclosure of their amounts in theperiod 1 March 2017 to 28 February 2018 is impractical.

Royal Bank of Scotland Balanced Fund

Audited Report for the year ended28 February 2018


RBS Investment Funds ICVC - Royal Bank of Scotland Balanced FundFund Reportfor the year ended 28 February 2018

Investment Objective & PolicyTo achieve long term capital appreciation and income. The Sub-fund will invest in a mixed portfolio of equities and bonds. Allocation to bonds,equities and cash will vary over time. The ACD intends to place equal emphasis on the generation of income and capital growth. The ACDdoes not intend to pursue any particular geographic emphasis in investing the property.

For liquidity management purposes the Sub-fund may also invest in other transferable securities, deposits and units or shares in collectiveinvestment schemes.

PerformanceThe Sub-fund returned 5.21 per cent (after charges) in the 12 months to the end of February 2018, compared with a net return of 5.38 percent for its peer group, the Investment Association’s Mixed Investment 40-85% Shares Sector*.

Portfolio SummaryEquity markets generally performed well during the year, as encouraging economic growth data worldwide helped support investor sentimenttowards risk assets. These positive returns were the primary driver of performance. The Sub-fund’s tactical overweight positions in emergingmarket, Japanese and Continental European equities were rewarded, as these were among the strongest performing equity regions.

There were a number of changes within the equity component of the portfolio during the year, as the manager responded to changing marketconditions and valuations. Investment in emerging markets was increased, for example, partly reflecting an improvement in global trade.Manufacturers in emerging regions are typically among the primary beneficiaries of higher trade volumes. The political background has alsobeen relatively calm in most emerging regions; markets have not been hampered by political instability that has often been the case historically.Investment in Japan was also increased. It appeared that economic reforms were starting to bear fruit and the re-election of incumbent PrimeMinister Shinzo Abe in October’s election was perceived to be positive for the equity market.

These moves were funded by reducing exposure to UK and US equity markets. In the UK, encouraging economic indicators were offset byongoing concerns over Brexit and how the economy might fare following the UK’s withdrawal from the EU. US equities also benefited fromimproving economic conditions, but valuations started to appear a little stretched and there were some concerns about the impact of risinginterest rates.

The bond sub-portfolio had a more modest influence on overall performance. Valuations were little changed from February 2017 levels, withgains in overseas bond markets offset by weakness in UK government bonds. Corporate bonds made steady positive progress as improvingeconomic conditions supported corporate profitability and made debt servicing costs more comfortable for most issuers. With governmentbond yields remaining close to historic lows, the higher yields available in the corporate bond market appealed to many investors. Corporatebond valuations have become less attractive following recent gains, however, prompting the manager to slightly reduce investment in thisarea of the bond market. On the whole, underweight exposure to fixed income markets supported relative performance.

OutlookWe believe ongoing buoyant economic conditions worldwide will continue to support equity markets. The broad-based, synchronised upswingin economic growth rates shows no signs of easing up and above-trend growth is anticipated in both developed and emerging markets.Corporate earnings growth typically holds up well when economic activity is picking up, suggesting equities can make further progress in themonths ahead. As a result, equities continue to be favoured ahead of bonds. The prospects for equities in Europe, Japan and emerging regionsappear particularly encouraging and overweight exposure to these markets is maintained.

The outlook for bonds is less compelling and underweight exposure towards the asset class is maintained. Fixed income nonetheless has animportant defensive role to play in a well-diversified portfolio. Bonds can help preserve capital in the event of a significant pull back in equitymarkets. With this in mind, the Sub-fund maintains some exposure to a diverse range of bond markets both in the UK and overseas.






RBS Investment Funds ICVC - Royal Bank of Scotland Balanced FundComparative table

*Direct transaction costs comprise commission and taxes, principally applicable to equity investment purchases and sales. Shareholders shouldnote that additionally there are other transaction costs such as dealing spread and underlying costs with regard to Collective Investment Schemeholdings which will also have reduced the Sub-fund and share class returns before operating charges.

**The charges you pay are used to pay the costs of running this Sub-fund, including the costs of marketing and distributing it, but not the costsof any advice you have been given. These charges reduce the growth of your investment.

The Operating Charges figure is based on the expenses for year ending 28 February 2018, and this figure may vary from period to period. The Operating Charges figure shown in the KIID may be calculated at a different point in time and therefore there could be immaterial differencesbetween the two.†Performance per comparative table based on bid market price portfolio valuation at midday on the last day of the accounting period andwith related accounting adjustments.

For the year ending: Income Shares

28/02/2018pence

per share

28/02/2017pence

per share

28/02/2016pence

per share

Change in net assets per shareOpening net asset value per shareReturn before operating charges*Operating chargesReturn after operating chargesDistributions Retained distributions on accumulation shares

Closing net asset value per share*After direct transaction costs of

Performance†

Return after charges

Other informationClosing net asset valueClosing number of sharesOperating charges**Direct transaction costs

PricesHighest share priceLowest share price

321.3622.06 (5.23)16.83 (2.79)

–

335.40(0.11)

5.24%

10,313,245 3,074,932

1.56%0.03%

348.9321.0

275.3853.91 (4.67)49.24 (3.26)

–

321.36(0.17)

17.88%

10,621,115 3,305,009

1.56%0.06%

322.7276.5

291.55(6.17)(4.45)

(10.62)(5.55)

–

275.38(0.19)

(3.64)%

9,641,0263,501,043

1.56%0.06%

303.7263.1


RBS Investment Funds ICVC - Royal Bank of Scotland Balanced FundComparative table (continued)




For the year ending: Accumulation Shares

28/02/2018pence

per share

28/02/2017pence

per share

28/02/2016pence

per share

Change in net assets per shareOpening net asset value per shareReturn before operating charges*Operating chargesReturn after operating chargesDistributionsRetained distributions on accumulation shares


Performance†




408.7328.06 (6.68)21.38 (3.55)

3.55

430.11(0.14)

5.23%

503,641,087 117,096,723

1.56%0.03%

447.4408.2

346.5968.04 (5.90)62.14 (4.12)

4.12

408.73(0.21)

17.93%

508,637,871 124,443,708

1.56%0.06%

409.2348.0

359.70(7.60)(5.51)

(13.11)(6.86)

6.86

346.59(0.24)

(3.64)%

464,225,915133,939,422

1.56%0.06%

374.6327.3


RBS Investment Funds ICVC - Royal Bank of Scotland Balanced FundStatistics

Synthetic Risk and Reward Indicator

These ratings indicate how this Sub-fund may perform and the risk of losing some or all of your capital. Generally the potential for highergains also means a higher risk of losses. The lowest rating does not mean a risk free investment.

This Sub-fund is ranked at 4 because funds of this type have experienced average rises and falls in value in the past. The risk and rewardcategory for this Sub-fund is not guaranteed to remain unchanged, and may shift over time.

Historical data, such as is used for calculating the rating, may not be a reliable indication of the future risk profile of this Sub-fund.

More information on the Synthetic Risk and Reward Indicator is contained in the Risk and Reward Profile of the Key Investor InformationDocument (KIID), which is available from the ACD on request. Full information on the risks applicable to the Sub-fund is detailed in theProspectus.

Lower risk

Typically lower rewards

Higher risk

Typically higher rewards

1 2 3 4 5 6 7


RBS Investment Funds ICVC - Royal Bank of Scotland Balanced FundPortfolio Statementas at 28 February 2018 (28 February 2017)

Market Total NetInvestments Holding Value (£) Assets (%)

UK Government Bonds† 0.97% (0.82%)UK Treasury 2% 07/9/2025 £900,000 943,209 0.18UK Treasury 4% 07/3/2022 £1,300,000 1,455,987 0.28UK Treasury 4.25% 07/6/2032 £600,000 786,000 0.15UK Treasury 4.25% 07/3/2036 £800,000 1,090,376 0.21UK Treasury 4.5% 07/12/2042 £300,000 450,882 0.09UK Treasury 4.75% 07/12/2038 £200,000 297,510 0.06

Sterling Denominated Corporate Bonds 7.64% (8.10%)AA Bond 2.75% 31/7/2043 £845,000 785,580 0.15ABN AMRO 1% 16/4/2025 £400,000 396,212 0.08America Movil 4.375% 07/8/2041 £320,000 376,129 0.07America Movil 6.375% FRN 06/9/2073 £455,000 498,339 0.10Anheuser-Busch InBev 2.85% 25/5/2037 £433,000 417,217 0.08Annington Funding 2.646% 12/7/2025 £126,000 124,543 0.03Annington Funding 3.935% 12/7/2047 £134,000 140,114 0.03AT&T 5.5% 15/3/2027 £500,000 601,097 0.12AT&T 7% 30/4/2040 £500,000 736,312 0.14AXA 6.6862% FRN Perpetual £498,000 593,834 0.12Bank of America 7% 31/7/2028 £500,000 697,764 0.14Barclays 3.25% 12/2/2027 £500,000 504,235 0.10Barclays 4.25% 12/1/2022 £400,000 442,636 0.09Barclays 10% 21/5/2021 £475,000 582,993 0.11Barclays 14% Perpetual £300,000 343,086 0.07BAT International Finance 2.25% 09/9/2052 £324,000 254,473 0.05BAT International Finance 7.25% 12/3/2024 £500,000 632,538 0.12Canary Wharf Finance II 6.455% 22/10/2033 £420,995 530,128 0.10Centrica 6.375% 10/3/2022 £625,000 743,705 0.14Channel Link Enterprises Finance 3.043% 30/6/2050 £156,000 153,119 0.03Citigroup 5.875% 01/7/2024 £547,000 644,706 0.13Co-Operative Bank 4.75% 11/11/2021 £839,000 907,130 0.18CPUK Finance 2.666% 28/2/2042 £580,000 590,086 0.11Credit Suisse 2.125% 12/9/2025 £249,000 242,715 0.05DS Smith 2.875% 26/7/2029 £400,000 385,552 0.08E.ON International Finance 6.75% 27/1/2039 £200,000 303,806 0.06Électricité de France 5.125% 22/9/2050 £500,000 619,219 0.12Électricité de France 5.5% 17/10/2041 £200,000 253,074 0.05ELM 6.3024% FRN Perpetual £700,000 734,388 0.14Enel 6.625% FRN 15/9/2076 £600,000 681,846 0.13European Investment Bank 5.375% 07/6/2021 £1,300,000 1,477,255 0.29European Investment Bank 5.625% 07/6/2032 £560,000 806,952 0.16Eversholt Funding 6.697% 22/2/2035 £610,000 794,374 0.15Gatwick Funding 2.625% 07/10/2048 £497,000 431,734 0.09GE Capital Funding 8% 14/1/2039 £100,000 166,441 0.03GE Capital UK Funding 5.875% 18/1/2033 £100,000 130,107 0.03GlaxoSmithKline Capital 4.25% 18/12/2045 £400,000 498,679 0.10Great Rolling Stock 6.5% 05/4/2031 £364,000 457,919 0.09Greene King Finance 4.0643% 15/3/2035 £176,936 189,031 0.04Heathrow Funding 6.45% 10/12/2031 £300,000 413,060 0.08


Sterling Denominated Corporate Bonds (continued)Heathrow Funding 7.125% 14/2/2024 £700,000 861,073 0.17HSBC 6.75% 11/9/2028 £450,000 587,144 0.11Imperial Brands Finance 4.875% 07/6/2032 £400,000 468,894 0.09Imperial Brands Finance 9% 17/2/2022 £510,000 645,119 0.13Innogy Finance 6.125% 06/7/2039 £300,000 427,133 0.08Juturna Euro Loan 5.0636% 10/8/2033 £426,565 510,231 0.10KfW 5.75% 07/6/2032 £500,000 735,121 0.14Land Securities Capital Markets 5.391% FRN 31/3/2027 £653,000 791,588 0.16LCR Finance 5.1% 07/3/2051 £465,000 796,062 0.15Lloyds Bank 5.125% 07/3/2025 £400,000 485,131 0.09Lloyds Bank 9.625% 06/4/2023 £700,000 927,092 0.18Lloyds Banking 2.25% 16/10/2024 £495,000 487,204 0.09Marstons Issuer 5.1576% FRN 15/10/2027 £865,000 863,270 0.17McDonald's 4.125% 11/6/2054 £300,000 360,339 0.07Motability Operations 3.625% 10/3/2036 £498,000 552,158 0.11National Grid Gas Finance 2.125% 22/9/2028 £299,000 282,947 0.06Network Rail 4.75% 29/11/2035 £350,000 485,500 0.10NGG Finance 5.625% FRN 18/6/2073 £248,000 278,585 0.05Orange 5.375% 22/11/2050 £250,000 345,854 0.07Orange 5.75% Perpetual £293,000 323,347 0.06Prudential 5.7% FRN 19/12/2063 £376,000 424,542 0.08Santander UK 5.125% 14/4/2021 £674,000 751,264 0.15Segro 2.375% 11/10/2029 £500,000 481,825 0.09SNCF Réseau 5.25% 07/12/2028 £800,000 1,033,778 0.20Southern Gas Network 6.375% 15/5/2040 £365,000 555,456 0.11SSE 3.875% Perpetual £975,000 1,004,673 0.20Telefónica Emisiones 5.445% 08/10/2029 £450,000 549,510 0.11Tesco Property Finance 4 5.8006% 13/10/2040 £392,239 451,596 0.09Thames Water Utilities Cayman Finance 2.875% 03/5/2027 £300,000 288,414 0.06Thames Water Utilities Cayman Finance 7.738% 09/4/2058 £258,000 507,780 0.10Unite Usaf II 3.921% 30/6/2030 £320,000 353,056 0.07Verizon Communications 3.375% 27/10/2036 £431,000 417,971 0.08Western Power Distribution 5.75% 16/4/2032 £550,000 718,945 0.14

Non-Sterling Denominated Corporate Bonds 0.51% (0.76%)Bank of America 2.881% 24/4/2023 USD 700,000 496,475 0.10Citigroup 2.9% 08/12/2021 USD 700,000 499,502 0.10Goldman Sachs 3% 26/4/2022 USD 800,000 569,384 0.11HSBC 3.262% 13/3/2023 USD 750,000 538,458 0.11JPMorgan Chase 4.25% 15/10/2020 USD 600,000 448,191 0.09

United Kingdom Equities 27.73% (35.45%)

Airlines 0.24% (0.11%)easyJet 72,801 1,225,605 0.24

Apparel Retailers 0.00% (0.02%)

Asset Managers 0.00% (0.07%)

RBS Investment Funds ICVC - Royal Bank of Scotland Balanced FundPortfolio Statement(continued)



Automobiles 0.00% (0.21%)

Banks 1.54% (1.30%)Barclays 1,290,051 2,762,644 0.54HSBC 714,874 5,154,956 1.00

Beverages 0.00% (0.09%)

Biotechnology 0.67% (0.72%)Abcam 40,071 505,295 0.10Avacta 117,901 61,309 0.01BTG 219,802 1,468,277 0.29Circassia Pharmaceuticals 403,619 375,769 0.07Faron Pharmaceuticals 34,008 297,570 0.06Horizon Discovery 84,680 152,424 0.03Immupharma 202,170 236,539 0.05Motif Bio 205,321 74,121 0.01ReNeuron 18,287 17,556 0.00Silence Therapeutics 76,629 146,361 0.03Vernalis 477,283 20,905 0.01Verona Pharma 40,889 50,293 0.01

Broadcasting & Entertainment 0.34% (0.43%)ITV 1,103,470 1,772,725 0.34

Broadline Retailers 0.42% (0.21%)B&M European Value Retail 517,451 2,145,352 0.42

Building Materials & Fixtures 0.00% (0.09%)

Business Support Services 1.69% (1.63%)Ashtead 158,460 3,329,245 0.65Bunzl 58,036 1,138,376 0.22Digital Barriers 177,949 17,795 0.00G4S 135,648 357,297 0.07Rentokil Initial 944,098 2,744,493 0.53Sanne 174,488 1,113,233 0.22

Clothing & Accessories 0.23% (0.24%)Ted Baker 39,254 1,193,322 0.23

Computer Services 0.00% (0.61%)

Consumer Finance 0.00% (0.32%)

Containers & Packaging 1.01% (0.91%)DS Smith 805,454 3,872,623 0.75RPC 168,215 1,356,822 0.26

Electrical Components & Equipment 0.14% (0.26%)Halma 58,811 711,025 0.14




Equity Investment Instruments 3.47% (9.39%)Aviva Investors UK Gilts MoM 1 Fund 10,655,893 12,791,334 2.49Aviva Investors UK Smaller Companies Fund 692,803 4,319,352 0.84Crystal Amber Fund 229,345 431,169 0.08Electra Investment Trust 32,285 290,242 0.06

Exploration & Production 0.29% (0.38%)Cairn Energy 470,317 892,191 0.17Faroe Petroleum 575,654 607,891 0.12

Fixed Line Telecommunications 0.17% (0.23%)BT 355,362 863,530 0.17

Food Producers & Processors 0.64% (0.60%)Unilever 87,602 3,283,761 0.64

Food Retailers & Wholesalers 0.00% (0.33%)

Gambling 0.04% (0.06%)Sportech 258,461 204,184 0.04

Health 0.41% (0.45%)Smith & Nephew 164,954 2,109,762 0.41

Healthcare Providers 0.00% (0.02%)

Home Improvement Retailers 0.42% (0.52%)Berkeley 6,010 233,008 0.05Countryside Properties 597,335 1,905,499 0.37

Industrial Machinery 0.52% (0.50%)Melrose Industries 1,174,651 2,657,060 0.52

Investment Services 1.18% (1.10%)4D Pharma 41,357 72,375 0.02Haversham Holdings 1,447,356 2,428,663 0.47London Stock Exchange 72,194 2,932,520 0.57Numis 179,248 630,057 0.12

Life Assurance 0.86% (0.92%)Prudential 238,903 4,406,566 0.86

Life Insurance 0.49% (0.48%)Aviva 497,721 2,512,496 0.49

Media Agencies 0.49% (0.51%)M&C Saatchi 122,944 483,170 0.10Moneysupermarket.com 566,975 1,492,845 0.29Next Fifteen Communications 115,726 509,194 0.10

Medical Supplies 0.15% (0.10%)Advanced Medical Solutions 238,004 774,703 0.15Venture Life 61,175 24,470 0.00




Mining 1.28% (1.11%)Rio Tinto 167,376 6,584,572 1.28

Multiutilities 0.18% (0.23%)National Grid 122,233 916,136 0.18

Mobile Telecommunications 0.68% (0.63%)Vodafone 1,726,240 3,516,351 0.68

Nondurable Household Products 0.40% (0.52%)Reckitt Benckiser 35,154 2,034,714 0.40

Oil & Gas 2.75% (2.30%)BP 1,088,500 5,213,915 1.01Lansdowne Oil & Gas 545,054 6,813 0.00Royal Dutch Shell 'B' (UK Regd.) 385,052 8,952,459 1.74

Pharmaceuticals 1.28% (1.45%)AstraZeneca 68,037 3,266,797 0.64Dechra Pharmaceuticals 56,703 1,413,039 0.27Oncimmune 49,839 71,270 0.01Oxford Biomedica 3,720,381 444,213 0.09Redx Pharma 222,163 29,992 0.01Shield Therapeutics 82,186 13,972 0.00Shire 44,120 1,360,440 0.26

Publishing 0.62% (1.08%)RELX 205,951 3,065,581 0.60Trinity Mirror 113,991 87,431 0.02

Real Estate 1.01% (0.95%)Big Yellow 45,381 373,032 0.07Helical Bar 133,276 437,145 0.09McCarthy & Stone 85,034 117,942 0.02PRS REIT 819,718 832,014 0.16St. Modwen Properties 263,653 1,009,264 0.20Tritax Big Box Reit 1,694,070 2,392,027 0.47

Recreational Services 0.33% (0.11%)Cineworld 710,295 1,687,661 0.33

Restaurants & Bars 0.56% (0.00%)Compass 186,623 2,892,657 0.56

Retail 0.00% (0.33%)

Software 0.61% (0.62%)Sage 450,066 3,127,959 0.61

Speciality Chemicals 0.00% (0.15%)




Speciality Finance 0.80% (1.16%)Intermediate Capital 132,350 1,406,880 0.27Redde 504,024 852,809 0.17Sherborne Investors C 1,380,043 1,449,045 0.28Sherborne Investors B 1,779,007 409,172 0.08

Speciality Retailers 0.19% (0.31%)Zoopla Property 293,220 988,738 0.19

Tobacco 1.06% (1.15%)British American Tobacco 125,382 5,467,282 1.06

Transportation 0.33% (0.20%)BBA Aviation 496,667 1,720,454 0.33

Travel & Tourism 0.24% (0.34%)Merlin Entertainments 356,313 1,213,958 0.24

Overseas Equities 55.98% (48.85%)

Australia 0.97% (0.79%)Aurizon 58,273 149,881 0.03Australia & New Zealand Banking 31,765 520,130 0.10BHP Billiton 89,697 1,336,306 0.26BHP Billiton 31,065 534,425 0.10Commonwealth Bank of Australia 17,803 766,988 0.15Crown 21,560 164,050 0.03Lend Lease 8,423 84,757 0.02Macquarie 5,143 300,678 0.06Rio Tinto 9,512 435,441 0.08Sky Network Television 23,221 30,387 0.01Sonic Healthcare 12,977 179,258 0.03Star Entertainment 32,429 97,311 0.02Westpac Banking 23,564 408,971 0.08

Belgium 0.45% (0.38%)Ablynx 34,404 1,328,183 0.26Ontex 46,180 975,772 0.19

Canada 0.68% (0.87%)Agnico Eagle Mines 959 26,713 0.01Alimentation Cuche-Tard 'B' 1,700 60,393 0.01ARC Resources 1,524 11,009 0.00Bank of Montreal 2,658 147,654 0.03Bank of Nova Scotia 4,936 222,822 0.04Barrick Gold 4,832 40,974 0.01BCE 1,716 55,293 0.01BlackBerry 2,163 19,284 0.00Brookfield Asset Management 'A' 3,412 97,279 0.02Canadian Imperial Bank of Commerce 1,803 121,577 0.02Canadian National Railway 3,065 175,569 0.03Canadian Natural Resources 4,909 114,967 0.02




Canada (continued)Canadian Pacific Railway 606 80,591 0.02Canadian Tire 'A' (non-voting) 261 25,838 0.01Canadian Utilities 'A' 460 8,736 0.00Cenovus Energy 5,090 28,131 0.01CGI 'A' 1,014 42,906 0.01CI Financial 873 14,045 0.00Constellation Software 84 39,449 0.01Crescent Point Energy 2,462 13,328 0.00Dollarama 440 37,794 0.01Enbridge 4,695 111,788 0.02Encana 3,988 31,155 0.01Fairfax Financial 110 39,949 0.01Fortis 1,697 40,031 0.01Franco Nevada 760 38,999 0.01George Weston 194 11,478 0.00Goldcorp 3,504 31,715 0.01Great-West Lifeco 1,118 21,630 0.00Husky Energy 1,190 11,605 0.00Hydro One 1,265 14,892 0.00IGM Financial 170 3,805 0.00Imperial Oil 1,066 21,257 0.00Intact Financial 545 30,491 0.01Inter Pipeline 1,569 19,970 0.00Loblaw 882 32,940 0.01Magna International 'A' 1,382 56,570 0.01Manulife Financial 8,202 114,417 0.02Metro 'A' 932 21,379 0.00National Bank of Canada 1,397 50,332 0.01Nutrien 2,646 94,300 0.02Pembina Pipeline 2,084 49,726 0.01Power Corporation of Canada 1,604 27,448 0.01Power Financial 938 17,670 0.00Restaurant Brands International 922 39,164 0.01RioCan Real Estate Investment Trust 1,323 17,528 0.00Rogers Communications 'B' 1,495 49,601 0.01Royal Bank of Canada 5,941 344,916 0.07Saputo 883 20,600 0.00Shaw Communications 'B' 1,748 24,948 0.00SNC-Lavalin 718 22,611 0.00Sun Life Financial 2,518 76,747 0.01Suncor Energy 6,828 168,522 0.03Teck Resources 'B' 1,924 40,815 0.01Thomson Reuters 1,157 33,340 0.01Toronto-Dominion Bank 7,666 326,285 0.06Tourmaline Oil 1,008 11,062 0.00TransCanada 3,572 115,541 0.02




Canada (continued)Turquoise Hill Resources 4,348 9,150 0.00Valeant Pharmaceuticals 1,369 18,315 0.00Waste Connections 1,065 55,047 0.01Wheaton Precious Metals 1,790 24,677 0.00

Denmark 0.47% (0.30%)Novozymes 21,955 822,088 0.16Pandora 21,132 1,598,072 0.31

Finland 0.00% (0.32%)

France 5.80% (4.63%)Abivax 5,870 41,810 0.01Air Liquide 17,614 1,602,050 0.31Amplitude Surgical 43,531 139,084 0.03Amundi 27,160 1,601,793 0.31AXA 94,213 2,157,420 0.42BNP Paribas 42,354 2,441,430 0.48Essilor International 20,259 1,933,814 0.38Iliad 5,271 905,561 0.18Legrand 41,314 2,343,193 0.46Orange 145,437 1,792,610 0.35Pernod Ricard 19,427 2,313,922 0.45Publicis 25,160 1,375,028 0.27Rexel 69,842 893,213 0.17Schneider Electric 38,376 2,414,335 0.47Sodexo 18,810 1,666,005 0.32SPIE 78,188 1,391,236 0.27Thales 19,676 1,591,446 0.31Total 41,067 1,700,312 0.33Worldline 38,542 1,423,979 0.28

Germany 2.91% (2.72%)Bayer (Regd.) 29,436 2,467,376 0.48Continental 11,310 2,250,021 0.44Curetis 21,567 124,491 0.02Deutsche Boerse 25,688 2,482,644 0.48Fresenius 31,343 1,866,195 0.36Infineon Technologies 73,944 1,447,553 0.28MediGene 25,807 400,430 0.08Probiodrug 15,839 175,445 0.03SAP 50,431 3,810,590 0.74

Hong Kong 1.03% (1.08%)AAC Technologies 16,500 237,271 0.05Bank of China 'H' 418,821 164,676 0.03BOC Hong Kong 38,000 138,540 0.03China Construction Bank 'H' 643,000 483,090 0.09China Medical System 114,000 165,406 0.03China Mobile 59,445 402,447 0.08




Hong Kong (continued)China Petroleum & Chemical 346,619 201,552 0.04CK Asset Holdings 35,000 218,539 0.04CK Hutchison 25,991 234,974 0.05CNOOC 179,000 188,013 0.04Hang Seng Bank 19,600 351,678 0.07Hengan International 25,000 176,405 0.03Industrial and Commercial Bank of China 'H' 923,493 575,348 0.11Link REIT 62,783 387,379 0.08PICC Property and Casualty 144,000 206,010 0.04Ping An Insurance 61,500 473,407 0.09Power Assets 22,000 135,134 0.03Sands China 56,400 229,568 0.04Yue Yuen Industrial 43,000 132,956 0.03Zhejiang Expressway 'H' 186,000 146,782 0.03

India 0.34% (0.36%)Infosys ADR 22,292 282,314 0.05Lyxor Exchange Traded Funding MSCI India 108,462 1,498,652 0.29

Indonesia 0.09% (0.09%)Bank Rakyat Indonesia 903,000 179,360 0.03Telekomunikasi Indonesia 'B' 1,503,005 315,912 0.06

Ireland 1.23% (1.36%)Glanbia 93,082 1,187,966 0.23Kerry 'A' 23,608 1,707,569 0.33Malin 57,873 416,297 0.08Paddy Power Betfair 12,393 1,058,273 0.21Ryanair 136,703 1,939,542 0.38

Italy 1.24% (0.70%)Anima 282,905 1,544,367 0.30Cerved Information Solutions 115,902 1,083,320 0.21Intesa Sanpaolo 900,034 2,463,376 0.48Pirelli & C SpA 200,536 1,295,608 0.25

Japan 5.56% (4.22%)77th Bank 800 14,505 0.00ABC-Mart 300 13,740 0.00Acom 3,900 12,785 0.00Adastria 200 3,138 0.00Advantest 1,900 29,053 0.01AEON 7,500 91,388 0.02AEON Financial Service 1,200 20,252 0.00AEON Mall 1,170 17,646 0.00Aica Kogyo 600 16,492 0.00Aiful 3,400 8,371 0.00Ain Pharmaciez 200 9,646 0.00Air Water 1,600 23,052 0.00




Japan (continued)Aisin Seiki 1,800 76,004 0.01Ajinomoto 5,300 69,943 0.01Alfresa 1,900 30,848 0.01Alps Electric 2,000 39,850 0.01Amada 3,400 32,910 0.01ANA 1,200 34,821 0.01Aoyama Trading 500 15,008 0.00Aozora 1,200 35,574 0.01Ariake Japan 200 11,413 0.00Asahi Breweries 4,000 148,123 0.03Asahi Glass 2,000 60,032 0.01Asahi Intecc 1,000 25,598 0.00Asahi Kasei 12,900 120,295 0.02ASICS 1,900 21,902 0.00ASKUL 200 5,234 0.00Astellas Pharma 21,000 223,804 0.04Autobacs Seven 700 9,845 0.00Awa Bank 2,000 9,281 0.00Azbil 700 22,475 0.00Bank of Kyoto 700 28,141 0.01Benesse 800 20,802 0.00Bic Camera 1,600 17,397 0.00Bridgestone 6,500 209,659 0.04Brother Industries 2,600 47,088 0.01Calbee 800 19,318 0.00Canon 10,800 298,311 0.06Canon Marketing Japan 500 9,811 0.00Capcom 400 11,642 0.00Casio Computer 2,300 24,605 0.00Central Japan Railway 1,900 255,675 0.05Century Tokyo Leasing 500 20,438 0.00Chiba Bank 7,000 41,881 0.01Chiyoda 2,000 14,259 0.00Chubu Electric Power 7,300 71,890 0.01Chugai Pharmaceutical 2,300 85,947 0.02Chugoku Bank 1,800 16,111 0.00Chugoku Electric Power 3,100 26,137 0.01Citizen 2,800 15,506 0.00Coca-Cola West Japan 1,250 34,274 0.01COLOPL 400 2,663 0.00Comsys 1,100 20,960 0.00Concordia Financial 12,300 51,853 0.01Cosmo Energy 700 17,753 0.00Cosmos Pharmaceutical 100 13,679 0.00Credit Saison 1,700 21,190 0.00CyberAgent 1,000 31,163 0.01Dai Nippon Printing 3,200 48,565 0.01Daicel 3,000 24,890 0.00




Japan (continued)Daido Steel 400 15,703 0.00Daifuku 1,000 47,486 0.01Dai-ichi Life 11,900 171,090 0.03Daiichi Sankyo 6,800 174,616 0.03Daiichikosho 400 15,352 0.00Daikin 2,800 238,913 0.05Daikyo 300 4,612 0.00Dainippon Ink & Chemicals 900 23,433 0.00Daishi Bank 300 9,885 0.00Daito Trust Construction 700 83,785 0.02Daiwa House 6,800 182,367 0.04Daiwa Securities 17,000 82,182 0.02Dena 1,200 15,816 0.00Denka 900 24,100 0.00Denso 5,100 216,171 0.04Dentsu 2,300 76,638 0.01Disco 300 50,993 0.01DMG Mori Seiki 1,200 17,645 0.00Don Quijote 1,300 52,700 0.01Dowa Mining 500 13,406 0.00East Japan Railway 3,900 264,639 0.05Ebara 1,100 29,642 0.01Eisai 2,800 107,558 0.02Electric Power Development 1,700 31,212 0.01Exedy 300 7,072 0.00Ezaki Glico 500 17,639 0.00FamilyMart 876 47,743 0.01Fanuc 2,000 368,420 0.07Fast Retailing 500 143,537 0.03FP 200 8,499 0.00Fuji Electric 7,000 38,623 0.01Fuji Heavy Industries 6,400 163,135 0.03Fuji Oil 500 10,725 0.00Fujifilm 4,100 123,757 0.02Fujikura 3,000 15,925 0.00Fujitsu 20,000 86,850 0.02Fujitsu General 600 8,284 0.00Fukuoka Financial 8,000 29,733 0.01Fukuyama Transporting 400 12,586 0.00Furukawa Electric 700 27,716 0.01GLORY 600 16,370 0.00GMO Payment Gateway 200 12,087 0.00GREE 800 3,637 0.00GS Yuasa 4,000 16,107 0.00GungHo Online Entertainment 3,800 9,637 0.00Gunma Bank 4,500 20,124 0.00H.I.S. 300 8,054 0.00H2O Retailing 800 11,375 0.00




Japan (continued)Hachijuni Bank 4,300 18,824 0.00Hakuhodo DY Holdings 2,500 26,171 0.01Hamamatsu Photonics 1,500 43,304 0.01Hankyu 2,300 61,978 0.01Haseko 2,800 29,765 0.01Heiwa 500 7,808 0.00Hikari Tsushin 200 20,869 0.00Hino Motors 2,800 26,705 0.01Hirose Electric 300 32,255 0.01Hiroshima Bank 3,200 18,088 0.00Hisamitsu Pharmaceutical 800 41,766 0.01Hitachi 49,000 267,517 0.05Hitachi Capital 500 9,393 0.00Hitachi Chemical 1,100 17,800 0.00Hitachi Construction Machinery 1,100 34,056 0.01Hitachi High-Technologies 700 24,741 0.00Hitachi Kokusai Electric 200 4,195 0.00Hitachi Metals 2,100 19,477 0.00Hitachi Transport System 500 8,947 0.00Hokkaido Electric Power 2,100 9,051 0.00Hokuhoku Financial 1,300 13,363 0.00Hokuriku Electric Power 2,000 11,237 0.00Honda Motor 18,700 489,905 0.10Horiba 400 21,396 0.00Hoshizaki Electric 500 32,613 0.01House Foods 800 19,399 0.00Hoya 3,900 149,155 0.03Hulic 3,800 30,578 0.01Ibiden 1,200 14,076 0.00Ichigo 1,800 5,366 0.00Idemitsu Kosan 1,500 41,736 0.01IHI 1,400 34,562 0.01Iida 1,500 20,468 0.00Inpex 9,600 84,859 0.02Isetan Mitsukoshi 3,900 33,172 0.01Isuzu Motors 5,700 64,841 0.01Ito En 600 18,232 0.00ITOCHU 14,800 206,195 0.04Itochu Techno-Solutions 500 14,822 0.00Itoham Yonekyu 1,500 9,157 0.00Iyo Bank 2,800 16,091 0.00Izumi 400 18,913 0.00J Front Retailing 2,700 35,513 0.01JAFCO 300 10,947 0.00Japan Airlines 1,200 33,073 0.01Japan Airport Terminal 500 13,659 0.00Japan Display 2,900 4,538 0.00Japan Exchange 5,600 70,069 0.01




Japan (continued)Japan Petroleum Exploration 300 5,118 0.00Japan Post 13,900 120,947 0.02Japan Post Bank 4,400 43,479 0.01Japan Post Insurance 700 12,796 0.00Japan Steel Works 600 13,416 0.00Japan Tobacco 12,500 256,906 0.05JFE 5,400 90,586 0.02JGC 2,300 38,164 0.01JSR 2,000 34,913 0.01JTEKT 2,400 26,921 0.01Juroku Bank 400 7,800 0.00JX 33,350 147,545 0.03Kagome 800 19,723 0.00Kajima 10,000 68,868 0.01Kakaku.com 1,600 19,653 0.00Kaken Pharmaceutical 400 16,323 0.00Kamigumi 1,000 15,838 0.00Kandenko 1,000 8,094 0.00Kaneka 3,000 22,057 0.00Kansai Electric Power 7,600 66,898 0.01Kansai Paint 2,000 36,410 0.01Kao 5,000 264,781 0.05Kawasaki Heavy Industries 1,500 39,661 0.01Kawasaki Kisen Kaisha 1,000 17,477 0.00KDDI 18,900 335,918 0.07Keihan Electric Railway 1,000 22,596 0.00Keikyu 2,700 34,912 0.01Keio 1,200 37,962 0.01Keisei Electric Railway 1,500 35,412 0.01Keiyo Bank 3,000 10,219 0.00Kewpie 1,200 23,716 0.00Keyence 900 396,169 0.08Kikkoman 1,900 54,531 0.01Kinden 1,300 15,459 0.00Kintetsu 1,900 52,737 0.01Kirin 8,800 164,895 0.03Kissei Pharmaceutical 400 7,878 0.00Kobayashi Pharmaceutical 600 28,289 0.01Kobe Steel 3,100 24,883 0.00Koei Tecmo 600 8,948 0.00Koito Manufacturing 1,200 60,221 0.01Komatsu 9,600 253,510 0.05Komeri 300 6,253 0.00Konami 1,000 38,043 0.01Konica Minolta 4,700 31,385 0.01Kose 300 40,734 0.01K's 900 18,103 0.00Kubota 11,700 153,614 0.03




Japan (continued)Kuraray 3,800 48,008 0.01Kurita Water Industries 1,200 26,670 0.01Kusuri no Aoki 200 8,566 0.00Kyocera 3,300 141,367 0.03Kyorin 400 5,580 0.00Kyowa Hakko Kogyo 2,600 39,792 0.01Kyudenko 400 13,369 0.00Kyushu Electric Power 4,800 38,852 0.01Kyushu Financial 4,010 16,202 0.00Kyushu Railway 1,700 37,783 0.01Lawson 500 23,574 0.00Leopalace21 2,300 13,109 0.00LINE 400 11,723 0.00Lintec 600 12,627 0.00Lion 2,700 36,697 0.01LIXIL 2,800 49,482 0.01M3 2,200 62,028 0.01Mabuchi Motor 600 22,340 0.00Maeda 1,400 12,135 0.00Maeda Road Construction 1,000 15,885 0.00Makita 2,500 85,495 0.02Marubeni 16,400 90,664 0.02Marui 2,300 31,974 0.01Maruichi Steel Tube 700 15,888 0.00Matsui Securities 1,300 9,295 0.00Matsumotokiyoshi 800 24,363 0.00Mazda Motor 6,000 60,544 0.01Mebuki Financial 11,100 32,344 0.01MediPal 1,700 25,078 0.00Megmilk Snow Brand 500 9,780 0.00Meiji Holdings 1,400 73,846 0.01Minebea 4,600 76,297 0.01Miraca 500 13,507 0.00Misumi 3,000 62,730 0.01Mitsubishi 13,500 274,544 0.05Mitsubishi Chemical 13,400 98,836 0.02Mitsubishi Electric 20,700 253,558 0.05Mitsubishi Estate 12,200 154,295 0.03Mitsubishi Gas Chemical 1,900 34,333 0.01Mitsubishi Heavy Industries 3,000 88,672 0.02Mitsubishi Logistics 700 11,894 0.00Mitsubishi Materials 1,300 29,507 0.01Mitsubishi Motors 6,600 37,796 0.01Mitsubishi Shokuhin 200 4,189 0.00Mitsubishi Tanabe Pharma 2,400 37,136 0.01Mitsubishi UFJ Financial 134,500 691,575 0.13Mitsubishi UFJ Lease & Finance 4,500 20,731 0.00Mitsui 17,600 231,672 0.05




Japan (continued)Mitsui Chemicals 1,900 42,100 0.01Mitsui Engineering & Shipbuilding 700 9,160 0.00Mitsui Fudosan 9,800 170,379 0.03Mitsui Mining & Smelting 600 21,814 0.00Mitsui O.S.K Lines 1,300 29,550 0.01Miura 1,100 22,370 0.00Mizuho Financial 265,620 357,075 0.07Mochida Pharmaceutical 100 5,194 0.00Monotaro 600 13,942 0.00Morinaga 400 13,194 0.00MS&AD Insurance 5,202 116,879 0.02Murata Manufacturing 2,000 202,152 0.04Nabtesco 1,200 37,557 0.01Nagase 1,200 15,104 0.00Nagoya Railroad 1,900 35,026 0.01Namco Bandai 2,100 49,010 0.01Nankai Electric Railway 1,200 22,081 0.00NEC 2,600 57,084 0.01NEC Electronics 5,200 43,352 0.01Nexon 2,200 57,502 0.01NGK Insulators 2,800 37,829 0.01NGK Spark Plug 2,000 36,855 0.01NH Foods 2,000 32,431 0.01NHK Spring 1,700 12,946 0.00Nichirei 1,200 22,129 0.00Nidec 2,436 283,602 0.06Nifco 400 20,721 0.00Nihon Kohden 900 18,273 0.00Nihon M&A Center 700 32,815 0.01Nikon 3,800 55,902 0.01Nintendo 1,100 364,083 0.07Nippon Electric Glass 900 19,760 0.00Nippon Express 800 38,798 0.01Nippon Kayaku 1,700 15,824 0.00Nippon Paint 1,600 42,144 0.01Nippon Paper Industries 1,100 15,655 0.00Nippon Shinyaku 500 20,303 0.00Nippon Shokubai 300 15,379 0.00Nippon Steel & Sumitomo Metal 8,200 141,373 0.03Nippon Telegraph & Telephone 7,000 235,183 0.05Nippon Television Network 600 8,232 0.00Nippon Yusen KK 1,800 28,301 0.01Nipro 1,400 14,967 0.00Nishi-Nippon Financial 1,800 16,124 0.00Nishi-Nippon Railroad 800 15,390 0.00Nissan Chemical Industries 1,500 43,051 0.01Nissan Motor 20,200 153,283 0.03Nissan Shatai 700 5,132 0.00




Japan (continued)Nisshin Seifun 2,670 38,198 0.01Nisshin Steel 100 964 0.00Nisshinbo Industries 1,500 16,522 0.00Nissin Food Products 700 34,515 0.01Nitori 800 97,184 0.02Nitto Denko 1,600 96,072 0.02NOF 700 13,967 0.00NOK 1,200 18,584 0.00Nomura 34,160 151,958 0.03Nomura Real Estate 1,300 22,685 0.00Nomura Research Institute 1,068 34,722 0.01North Pacific Bank 2,400 6,054 0.00NS Solutions 400 7,714 0.00NSK 4,800 52,062 0.01NTN 4,000 12,708 0.00NTT Data 6,600 49,459 0.01NTT DOCOMO 13,800 255,513 0.05NTT Urban Development 1,100 9,853 0.00Obayashi 7,000 57,273 0.01OBIC 700 42,164 0.01OBIC Business Consultants 100 4,256 0.00Odakyu Electric Railway 3,200 47,076 0.01Oji 9,000 42,616 0.01Okuma 300 13,780 0.00Olympus 2,900 84,112 0.02Omron 2,100 89,947 0.02Ono Pharmaceutical 4,600 97,117 0.02Oracle Japan 300 16,816 0.00Orient 6,700 7,728 0.00Oriental Land 2,000 140,434 0.03Orix 13,400 172,590 0.03Osaka Gas 4,100 58,532 0.01OSG 800 13,679 0.00Otsuka 500 33,591 0.01Otsuka 4,400 159,760 0.03Paltac 300 11,231 0.00Panasonic 22,350 252,890 0.05Park 24 1,200 20,826 0.00PeptiDream 900 29,837 0.01Persol 1,800 33,388 0.01Pigeon 1,100 32,276 0.01Pilot 300 11,595 0.00Pola Orbis 800 24,336 0.00Rakuten 8,700 57,345 0.01Recruit 12,500 218,332 0.04Relo 1,000 20,303 0.00Rengo 2,300 14,428 0.00Resona 22,900 94,516 0.02




Japan (continued)Resorttrust 700 11,412 0.00Ricoh 7,100 55,314 0.01Rinnai 400 25,928 0.01ROHM 900 69,023 0.01Rohto Pharmaceutical 1,000 20,188 0.00Ryohin Keikaku 200 49,442 0.01San-In Godo Bank 1,800 12,311 0.00Sankyo 600 15,520 0.00Sankyu 400 14,030 0.00Sanrio 500 6,526 0.00Santen Pharmaceutical 3,900 45,246 0.01Sanwa 2,200 22,185 0.00Sapporo 600 12,323 0.00Sawai Pharmaceutical 400 13,382 0.00SBI Holdings 2,180 36,438 0.01SCREEN 400 27,062 0.01SCSK 400 11,871 0.00Secom 2,000 103,605 0.02Sega Sammy 2,200 23,120 0.00Seibu 2,300 28,328 0.01Seiko Epson 3,000 41,564 0.01Seino 1,600 19,760 0.00Sekisui Chemical 3,800 51,878 0.01Sekisui House 6,000 76,025 0.01Senshu Ikeda Holdings 3,140 8,896 0.00Seven & I 8,100 243,730 0.05Seven Bank 6,800 16,971 0.00Sharp 1,600 40,471 0.01Shiga Bank 3,000 11,332 0.00Shikoku Electric Power 1,800 14,655 0.00Shimachu 400 9,592 0.00Shimadzu 2,800 52,013 0.01Shimamura 200 17,187 0.00Shimano 800 83,532 0.02Shimizu 5,900 39,677 0.01Shin-Etsu Chemical 4,300 329,777 0.06Shinsei Bank 1,700 19,448 0.00Shionogi 3,000 113,136 0.02Shiseido 4,100 178,624 0.03Shizuoka Bank 5,000 36,660 0.01Shochiku 100 10,145 0.00Showa Denko 1,300 46,562 0.01Showa Shell Sekiyu 2,000 18,792 0.00SKY Perfect JSAT 1,300 4,235 0.00Skylark 1,500 14,873 0.00SMC 600 182,240 0.04Softbank 8,900 533,923 0.10Sohgo Security Services 700 23,844 0.00




Japan (continued)Sojitz 13,600 32,290 0.01Sompo Japan Nipponkoa 3,750 104,718 0.02Sony 13,200 484,177 0.09Sony Financial 1,800 24,270 0.00Sotetsu Holdings 800 15,309 0.00Square-Enix 800 24,687 0.00Stanley Electric 1,600 45,435 0.01Start Today 1,900 35,666 0.01Sugi 400 15,865 0.00SUMCO 2,400 46,655 0.01Sumitomo 11,700 148,998 0.03Sumitomo Chemical 16,000 72,092 0.01Sumitomo Dainippon 1,700 18,828 0.00Sumitomo Electric 7,900 90,454 0.02Sumitomo Forestry 1,500 18,232 0.00Sumitomo Heavy Industries 1,200 34,157 0.01Sumitomo Metal Mining 2,500 84,820 0.02Sumitomo Mitsui Financial 14,000 442,509 0.09Sumitomo Mitsui Trust 3,886 113,496 0.02Sumitomo Osaka Cement 4,000 13,328 0.00Sumitomo Realty & Development 5,000 131,092 0.03Sumitomo Rubber Industries 1,900 26,362 0.01Sundrug 700 23,325 0.00Suntory Beverage & Food 1,300 43,668 0.01Suruga Bank 1,800 21,405 0.00Suzuken 800 23,608 0.00Suzuki Motor 4,300 178,230 0.03Sysmex 1,500 90,048 0.02T&D 5,900 70,798 0.01TADANO 1,300 14,819 0.00Taiheiyo Cement 1,200 32,377 0.01Taisei 2,200 80,726 0.02Taisho Pharmaceutical 500 32,950 0.01Taiyo Nippon Sanso 1,500 15,895 0.00Taiyo Yuden 1,200 15,314 0.00Takara 1,800 15,990 0.00Takashimaya 3,000 22,016 0.00Takeda Pharmaceutical 8,000 329,541 0.06TDK 1,300 85,670 0.02Teijin 1,900 27,118 0.01Terumo 3,200 124,327 0.02THK 1,200 37,840 0.01TIS 900 24,070 0.00Tobu Railway 2,100 46,815 0.01Toda 2,000 11,062 0.00Toho 1,200 28,087 0.01Toho Gas 1,000 21,146 0.00Tohoku Electric Power 4,900 46,371 0.01




Japan (continued)Tokai Rika 600 9,442 0.00Tokai Tokyo Financial 2,700 14,551 0.00Tokio Marine 7,300 244,474 0.05Tokyo Broadcasting System 500 8,148 0.00Tokyo Electric Power 16,200 44,910 0.01Tokyo Electron 1,600 227,230 0.04Tokyo Gas 4,400 79,687 0.02Tokyo Tatemono 2,200 24,633 0.00Tokyu 5,200 60,083 0.01Tokyu Fudosan 5,500 29,382 0.01Topcon 1,000 16,195 0.00Toppan Forms 400 3,273 0.00Toppan Printing 5,000 30,994 0.01Toray 15,700 114,953 0.02Toshiba 40,000 85,259 0.02Tosoh 2,900 43,993 0.01Toto 1,500 57,266 0.01Toyo Seikan Kaisha 1,700 18,278 0.00Toyo Suisan Kaisha 900 25,436 0.00Toyo Tire & Rubber 1,100 14,862 0.00Toyobo 1,000 14,212 0.00Toyoda Gosei 800 14,068 0.00Toyota Boshoku 700 10,841 0.00Toyota Industries 1,700 77,515 0.02Toyota Motor 27,142 1,324,377 0.26Toyota Tsushu 2,300 61,900 0.01Trend Micro 1,200 49,213 0.01TS Tech 500 14,688 0.00Tsumura 700 16,927 0.00Tsuruha Holdings 400 41,874 0.01TV Asahi 200 2,942 0.00UBE Industries 1,100 24,930 0.00ULVAC 500 22,360 0.00Unicharm 4,000 80,996 0.02Ushio Electric 1,100 11,011 0.00USS 2,300 34,301 0.01Wacoal 500 10,725 0.00Welcia 500 15,986 0.00West Japan Railway 1,900 95,349 0.02Yahoo Japan 14,100 47,173 0.01Yakult Honsha 1,100 56,835 0.01Yamada Denki 7,900 36,022 0.01Yamaguchi Financial 2,000 17,497 0.00Yamaha 1,800 57,367 0.01Yamaha Motor 2,900 66,605 0.01Yamato 3,900 70,435 0.01Yamato Kogyo 300 6,344 0.00Yamazaki Baking 1,300 18,353 0.00




Japan (continued)Yaskawa Electric 2,300 77,569 0.02Yokogawa Electric 2,800 41,116 0.01Yokohama Rubber 1,100 19,662 0.00Zenkoku Hosho 500 15,935 0.00Zensho 1,000 15,042 0.00Zeon 1,600 17,419 0.00

Luxembourg 15.11% (7.98%)Aviva Investors Emerging Markets Equity Income Fund GBP** 27,586 40,174,200 7.82Aviva Investors Global Investment Grade Corporate Bond Fund** 33,043 36,178,363 7.04Stabilus 18,541 1,270,705 0.25

Malaysia 0.03% (0.06%)Malayan Banking Berhad 91,000 175,221 0.03

Netherlands 2.09% (2.29%)ABN AMRO 94,982 2,146,945 0.42ASML 24,904 3,560,854 0.69IMCD 21,249 984,618 0.19ING 67,947 875,695 0.17Unilever 83,509 3,180,418 0.62

Philippines 0.02% (0.02%)Globe Telecom 3,365 80,380 0.02

Russia 0.01% (0.00%)Yandex 'A' 996 30,250 0.01

Singapore 0.11% (0.10%)Ascendas Real Estate Investment Trust 160,000 230,618 0.04ComfortDelGro 63,800 70,014 0.01DBS 12,505 195,399 0.04Yangzijiang Shipbuilding 110,700 90,658 0.02

South Korea 0.57% (0.71%)Coway 2,232 128,951 0.03Hyundai Motor 3,269 352,209 0.07KB Financial 5,300 225,938 0.04Korea Electric Power 6,329 139,547 0.03KT&G 2,733 181,963 0.04Samsung Electronics 908 1,425,347 0.28Samsung Fire & Marine 1,000 192,802 0.04SK Telecom 1,256 200,682 0.04

Spain 0.69% (0.59%)Amadeus IT 35,793 1,896,113 0.37Bankinter 206,582 1,652,291 0.32




Switzerland 1.60% (2.42%)Compagnie Financiere Richemont 17,663 1,125,811 0.22Evolva 16,485 3,548 0.00GeNeuro 11,738 72,521 0.01Newron Pharmaceuticals 29,621 235,035 0.05Roche Holding 19,352 3,274,122 0.64Sonova 8,781 993,003 0.19Temenos 29,827 2,519,755 0.49

Taiwan 0.54% (0.71%)Catcher Technology 36,000 315,349 0.06Cheng Shin Rubber 139,000 172,665 0.03Fubon Finance rights 06/3/2018* 13,163 – 0.00Fubon Financial 285,230 368,427 0.07Hon Hai Precision 185,017 403,341 0.08Taiwan Semiconductor Manufacturing 249,861 1,520,964 0.30

Thailand 0.09% (0.11%)Delta Electronics (Alien Market) 93,000 145,546 0.03Krung Thai Bank 330,675 153,731 0.03Thai Beverage 378,000 172,325 0.03

United States of America 14.35% (16.04%)21st Century Fox America 'A' 4,247 115,456 0.0221st Century Fox America 'B' 1,770 47,492 0.013M 2,363 410,939 0.08Abbott Laboratories 6,908 302,481 0.06AbbVie 6,505 555,712 0.11Accenture 2,533 297,493 0.06Activision Blizzard 3,016 158,165 0.03Acuity Brands 172 18,080 0.00Adient 381 17,492 0.00Adobe Systems 2,034 306,849 0.06Advance Auto Parts 287 22,766 0.00Advanced Micro Devices 3,500 31,657 0.01AerCap 578 21,050 0.00AES 2,688 21,827 0.00Aetna 1,294 164,615 0.03Affiliated Managers 231 31,741 0.01Aflac 1,581 102,784 0.02Agilent Technologies 1,318 65,710 0.01AGNC Investment 1,628 21,617 0.00AIG 3,717 156,312 0.03Air Products & Chemicals 883 104,375 0.02Akamai Technologies 668 32,922 0.01Alaska Air 125 5,860 0.00Albemarle 460 37,050 0.01Alcoa 792 26,452 0.01Alexandria Real Estate Equities 400 34,908 0.01Alexion Pharmaceuticals 896 76,602 0.01Align Technology 330 62,908 0.01




United States of America (continued)Alkermes 650 26,968 0.01Alleghany 58 25,634 0.00Allegion 418 26,260 0.01Allergan 1,389 160,414 0.03Alliance Data Systems 195 34,134 0.01Alliant Energy 922 25,838 0.01Allstate 1,502 102,021 0.02Ally Financial 1,791 36,087 0.01Alphabet 'A' 1,213 978,988 0.19Alphabet 'C' 1,234 996,935 0.19Altria 7,779 359,614 0.07Amazon 1,627 1,777,194 0.35Amdocs 620 29,741 0.01Ameren 990 39,251 0.01American Airlines 526 20,611 0.00American Electric Power 2,010 95,679 0.02American Express 2,941 211,577 0.04American Tower 1,718 174,506 0.03American Water Works 732 42,285 0.01Ameriprise Financial 602 69,464 0.01AmerisourceBergen 666 46,974 0.01AMETEK 954 53,538 0.01Amgen 3,001 402,822 0.08Amphenol 'A' 1,233 81,906 0.02Anadarko Petroleum 2,229 94,139 0.02Analog Devices 1,515 100,967 0.02Andeavor 597 40,369 0.01Annaly Capital Management 4,748 34,816 0.01Ansys 349 40,679 0.01Antero Resources 987 13,555 0.00Anthem 1,044 178,804 0.03Aon ‘A’ 1,002 103,124 0.02Apache 1,613 40,552 0.01Apple 21,031 2,709,933 0.53Applied Materials 4,364 181,723 0.04Aramark 1,000 30,184 0.01Arch Capital 491 31,584 0.01Archer Daniels Midland 2,288 68,828 0.01Arconic 1,597 28,520 0.01Arista Networks 220 41,180 0.01Arrow Electronics 354 21,063 0.00Arthur J Gallagher 722 36,502 0.01Ashland Global 252 13,192 0.00Assurant 224 14,136 0.00AT&T 25,188 670,916 0.13Autodesk 860 72,145 0.01Autoliv 357 37,768 0.01Automatic Data Processing 1,847 155,398 0.03




United States of America (continued)AutoNation 248 9,060 0.00AutoZone 114 53,901 0.01AvalonBay Communities 572 64,494 0.01Avangrid 229 8,060 0.00Avery Dennison 349 29,981 0.01Avnet 506 15,686 0.00Axis Capital 336 11,950 0.00Baker Hughes 1,752 34,162 0.01Ball 1,438 41,565 0.01Bank of America 39,596 924,822 0.18Bank of New York Mellon 4,045 169,404 0.03Baxter International 2,028 100,667 0.02BB&T 3,281 130,249 0.03Becton Dickinson 1,073 174,477 0.03Bed Bath & Beyond 601 9,270 0.00Bemis 373 11,962 0.00Berkshire Hathaway 'A' 2 455,122 0.09Berkshire Hathaway 'B' 4,826 731,117 0.14Best Buy 1,078 55,668 0.01Biogen Idec 861 180,398 0.04BioMarin Pharmaceutical 727 43,598 0.01Bioverativ 435 32,900 0.01BlackRock 512 204,467 0.04Boeing 3,179 836,985 0.16Booking Holdings 200 274,668 0.05BorgWarner 869 31,446 0.01Boston Properties 633 54,648 0.01Boston Scientific 5,646 111,925 0.02Brighthouse Financial 343 13,780 0.00Bristol-Myers Squibb 6,724 329,448 0.06Broadcom 1,646 299,424 0.06Broadridge Financial Solutions 471 34,289 0.01Brown & Brown 469 18,036 0.00Brown-Forman 'B' 715 36,075 0.01Bunge 572 30,927 0.01C.H. Robinson Worldwide 574 38,756 0.01CA 1,334 33,972 0.01Cabot Oil & Gas 1,901 33,290 0.01Calpine 1,442 15,856 0.00Campbell Soup 729 23,141 0.00Capital One 1,957 140,279 0.03Cardinal Health 1,286 65,053 0.01CarMax 749 33,565 0.01Carnival 1,673 81,559 0.02Caterpillar 2,310 269,116 0.05CBOE 460 36,619 0.01CBRE ‘A’ 1,171 39,820 0.01CBS 'B' 1,389 54,328 0.01




United States of America (continued)CDK Global 512 25,611 0.00CDW 630 33,448 0.01Celanese 'A' 554 41,168 0.01Celgene 3,199 221,286 0.04Centene 683 50,473 0.01CenterPoint Energy 1,828 35,960 0.01CenturyLink 4,152 54,202 0.01Cerner 1,202 55,532 0.01CF Industries 938 28,299 0.01Charles Schwab 4,882 189,750 0.04Charter Communications 751 190,517 0.04CheckPoint Software Technologies 513 38,432 0.01Cheniere Energy 869 34,221 0.01Chevron 7,724 633,957 0.12Chipotle Mexican Grill 104 23,974 0.00Chubb 1,900 197,975 0.04Church & Dwight 1,054 37,661 0.01Cigna 975 138,615 0.03Cimarex Energy 392 27,728 0.01Cincinnati Financial 630 34,531 0.01Cintas 360 44,473 0.01Cisco Systems 20,291 660,095 0.13CIT 549 21,409 0.00Citigroup 10,802 595,819 0.12Citizens Financial 2,056 64,983 0.01Citrix Systems 639 42,646 0.01Clorox 531 49,950 0.01CME 1,401 168,703 0.03CMS Energy 1,167 36,050 0.01CNA Financial 153 5,705 0.00Coca-Cola 15,701 494,782 0.10Coca-Cola European Partners 737 20,318 0.00Cognizant Technology 2,403 143,187 0.03Colgate-Palmolive 3,513 177,477 0.03Comcast 'A' 18,949 501,583 0.10Comerica 720 51,293 0.01Commerce Bancshares 375 15,886 0.00ConAgra Foods 1,579 41,294 0.01Concho Resources 603 66,691 0.01ConocoPhillips 4,881 196,869 0.04Consolidated Edison 1,252 68,425 0.01Constellation Brands 'A' 666 104,938 0.02Continental Resources 386 13,681 0.00Cooper 200 33,549 0.01Core Laboratories 162 12,711 0.00Corning 3,496 74,102 0.01Costco Wholesale 1,796 246,655 0.05Coty 1,946 27,892 0.01




United States of America (continued)Crown Castle International 1,633 130,126 0.03CSRA 658 19,262 0.00CSX 3,473 138,298 0.03Cummins 652 80,094 0.02CVS Health 4,150 204,592 0.04Danaher 2,530 181,936 0.04Darden Restaurants 506 33,953 0.01DaVita 620 32,984 0.01Deere 1,294 152,977 0.03Dell Technologies - VMware 842 44,229 0.01Delphi Automotive 1,119 74,859 0.01Delphi Technologies 373 13,050 0.00Delta Air Lines 745 28,838 0.01Dentsply Sirona 921 38,145 0.01Devon Energy 2,173 50,016 0.01Digital Realty Trust 848 61,447 0.01Discover Financial Services 1,472 84,607 0.02Discovery Communications 'A' 610 11,476 0.00Discovery Communications 'C' 934 16,687 0.00DISH Network 'A' 884 27,870 0.01Disney (Walt) 6,296 476,908 0.09Dollar General 1,117 77,057 0.01Dollar Tree 918 68,920 0.01Dominion Resources 2,611 140,076 0.03Domino's Pizza 170 27,809 0.01Dover 642 47,271 0.01DowDuPont 9,533 498,413 0.10DR Horton 1,402 43,897 0.01Dr Pepper Snapple 746 62,679 0.01DST Systems 190 11,430 0.00DTE Energy 743 54,751 0.01Duke Energy 2,856 157,491 0.03Duke Realty 1,480 26,548 0.01Dun & Bradstreet 153 13,846 0.00DXC Technology 1,173 87,361 0.02E*TRADE Financial 1,123 43,088 0.01Eastman Chemical 612 45,235 0.01Eaton 1,849 109,455 0.02eBay 3,986 124,228 0.02Ecolab 1,041 98,565 0.02Edgewell Personal Care 224 8,153 0.00Edison International 1,301 57,183 0.01Edwards Lifesciences 876 85,600 0.02Electronic Arts 1,232 111,968 0.02Eli Lilly 4,034 229,328 0.04Emerson Electric 2,620 138,344 0.03Enbridge 2,186 52,068 0.01Entergy 726 39,882 0.01




United States of America (continued)EOG Resources 2,373 183,178 0.04EQT 979 36,318 0.01Equifax 491 40,491 0.01Equinix 308 87,024 0.02Equity Residential 1,442 58,161 0.01Essex Property Trust 267 42,793 0.01Estee Lauder 'A' 880 88,852 0.02Everest Re 168 29,517 0.01Eversource Energy 1,311 54,346 0.01Exelon 3,914 105,329 0.02Expedia 499 37,380 0.01Expeditors International of Washington 740 35,022 0.01Express Scripts 2,311 131,160 0.03Extra Space Storage 515 31,576 0.01Exxon Mobil 17,314 969,644 0.19F5 Networks 264 28,750 0.01Facebook 9,530 1,249,324 0.24Fastenal 1,170 46,785 0.01Federal Realty Investment Trust 295 24,185 0.00FedEx 1,009 181,215 0.04Fidelity National Information Services 1,360 96,719 0.02Fifth Third Bancorp 2,935 70,502 0.01First Republic Bank 630 43,047 0.01FirstEnergy 1,885 44,790 0.01Fiserv 873 90,952 0.02Fleetcor Technologies 357 51,923 0.01Flextronics International 2,190 28,510 0.01Flowserve 532 16,895 0.00Fluor 565 23,593 0.00FMC 533 31,790 0.01FNF 1,073 31,185 0.01Foot Locker 547 18,783 0.00Ford Motor 15,898 121,859 0.02Fortive 1,252 70,315 0.01Fortune Brands Home & Security 624 28,171 0.01Franklin Resources 1,422 40,229 0.01Freeport McMoRan 'B' 5,633 77,646 0.02Gap 970 21,871 0.00Garmin 489 21,274 0.00Gartner 360 30,151 0.01General Electric 35,517 372,054 0.07General Mills 2,307 84,633 0.02General Motors 5,254 152,397 0.03Gentex 1,136 18,966 0.00Genuine Parts 584 39,051 0.01GGP 2,465 37,504 0.01Gilead Sciences 5,308 308,119 0.06Global Payments 610 50,327 0.01




United States of America (continued)Goldman Sachs 1,439 278,600 0.05Goodyear Tire & Rubber 992 21,127 0.00H&R Block 832 15,586 0.00Halliburton 3,534 121,553 0.02Hanesbrands 1,525 21,979 0.00Harley-Davidson 722 23,748 0.00Harris 489 56,174 0.01Hartford Financial Services 1,438 55,912 0.01Hasbro 465 32,666 0.01HCA 1,158 84,955 0.02HCP 1,912 30,030 0.01Helmerich & Payne 417 20,043 0.00Henry Schein 652 31,658 0.01Herbalife 270 16,906 0.00Hershey Foods 561 39,795 0.01Hess 1,148 38,540 0.01Hewlett Packard Enterprise 6,579 89,403 0.02Hilton Worldwide 854 49,252 0.01Hollyfrontier 711 22,801 0.00Hologic 1,177 33,638 0.01Home Depot 4,814 643,293 0.13Honeywell International 3,116 346,380 0.07Hormel Foods 1,118 26,444 0.01Hospitality Properties 650 12,082 0.00Host Hotels & Resorts 2,934 39,171 0.01HP 6,837 116,173 0.02Humana 585 116,882 0.02Huntington Bancshares 4,453 50,893 0.01IAC 284 30,579 0.01IBM 3,458 391,042 0.08IDEXX Laboratories 366 49,704 0.01IHS Markit 1,588 53,908 0.01Illinois Tool Works 1,243 146,552 0.03Illumina 607 100,741 0.02Incyte 691 43,216 0.01Ingersoll-Rand 1,042 67,818 0.01Ingredion 300 28,400 0.01Intel 19,292 695,610 0.14Intercontinental Exchange 2,420 128,343 0.02International Flavors & Fragrances 320 32,964 0.01International Paper 1,714 74,494 0.01Interpublic 1,621 27,848 0.01Intuit 999 122,923 0.02Intuitive Surgical 438 136,374 0.03Invesco 1,677 39,993 0.01IQVIA 658 47,332 0.01Iron Mountain 1,116 25,018 0.00J.M. Smucker 449 41,079 0.01




United States of America (continued)Jabil Circuit 657 12,962 0.00Jacobs Engineering 485 21,636 0.00Janus Henderson 820 20,894 0.00Jazz Pharmaceuticals 250 25,945 0.01JB Hunt Transport Services 354 30,840 0.01Johnson & Johnson 11,016 1,047,403 0.20Johnson Controls International 3,814 104,787 0.02JPMorgan Chase 14,105 1,195,899 0.23Juniper Networks 1,552 29,264 0.01Kansas City Southern 427 32,653 0.01Kellogg 993 48,144 0.01KeyCorp 4,479 68,470 0.01Keysight Technologies 762 26,121 0.01Kimberly-Clark 1,448 117,528 0.02Kimco Realty 1,676 17,968 0.00Kinder Morgan 7,915 95,206 0.02KLA-Tencor 642 52,619 0.01Kohl's 656 30,805 0.01Kraft Heinz Foods 2,473 121,238 0.02Kroger 3,728 73,445 0.01L Brands 1,021 35,531 0.01Laboratory Corporation of America 417 52,795 0.01Lam Research 658 91,964 0.02Lamb Weston 593 23,310 0.00Lao Feng Xiang 35,000 93,303 0.02Las Vegas Sands 1,489 78,559 0.02Lear 280 38,094 0.01Leggett & Platt 558 17,653 0.00Lennar 'A' 796 33,158 0.01Leucadia National 1,320 23,411 0.01Liberty Broadband 'A' 100 6,461 0.00Liberty Broadband 'C' 409 26,540 0.01Liberty Global 'A' 869 20,203 0.00Liberty Global 'B' 2,367 53,181 0.01Liberty Interactive 'A' 1,681 34,368 0.01Liberty Property Trust 589 16,706 0.00Liberty SiriusXM 352 10,581 0.00Liberty SiriusXM 725 21,642 0.01Lincoln National 878 49,596 0.01LKQ 1,259 35,764 0.01Loews 1,149 41,654 0.01Lowe's 3,402 236,115 0.05Lululemon Athletica 386 22,434 0.00Lyondellbasell Industries 'A' 1,349 106,832 0.02M&T Bank 593 82,348 0.02Macerich 543 22,698 0.00Macy's 1,325 27,185 0.01Mallinckrodt Pharmaceuticals 394 5,309 0.00




United States of America (continued)Manpower 271 23,507 0.01Marathon Oil 3,461 37,480 0.01Marathon Petroleum 1,961 92,922 0.02Markel 55 44,675 0.01Marriott International 'A' 1,239 123,631 0.02Marsh & McLennan 2,093 127,482 0.02Martin Marietta Materials 260 38,718 0.01Marvell Technology 1,628 27,498 0.01Masco 1,306 39,523 0.01MasterCard 'A' 3,848 489,076 0.10Mattel 1,391 16,038 0.00Maxim Integrated Products 1,146 51,455 0.01McCormick 472 36,350 0.01McDonald's 3,261 378,495 0.07McKesson 857 95,129 0.02MDU Resources 769 14,772 0.00Medtronic 5,530 324,481 0.06Mercadolibre 160 43,396 0.01Merck & Co 11,174 441,568 0.09MetLife 3,734 127,380 0.03Mettler-Toledo 100 45,194 0.01MGM Resorts International 2,022 50,031 0.01Michael Kors 578 26,557 0.01Microchip Technology 885 56,590 0.01Micron Technology 4,459 156,493 0.03Microsoft 30,631 2,084,776 0.41Mid-America Apartment Communities 468 28,938 0.01Mohawk Industries 254 45,242 0.01Molson Coors Brewing 'B' 733 40,553 0.01Mondelez International 6,050 192,357 0.04Monsanto 1,795 159,141 0.03Monster Beverage 1,711 79,320 0.02Moody's 672 81,764 0.02Morgan Stanley 5,267 215,672 0.04Mosaic 1,460 28,278 0.01Motorola Solutions 684 52,671 0.01Murphy Oil 639 11,887 0.00Mylan 2,169 64,402 0.01Nasdaq 463 27,321 0.01National Oilwell Varco 1,544 40,435 0.01Navient 1,185 11,180 0.00NCR 477 11,417 0.00NetApp 1,123 49,002 0.01NetEase ADR 1,050 224,724 0.04Netflix 1,675 351,614 0.07New York Community Bancorp 1,927 19,518 0.00Newell Rubbermaid 2,003 38,998 0.01Newfield Exploration 798 13,980 0.00




United States of America (continued)Newmont Mining 2,177 60,425 0.01News Corp 'A' 1,548 18,307 0.00News Corp 'B' 437 5,257 0.00NextEra Energy 1,908 209,092 0.04Nielsen 1,523 36,485 0.01Nike 'B' 5,320 261,503 0.05Nisource 1,297 21,851 0.01Noble Energy 1,761 38,395 0.01Nordstrom 499 18,393 0.00Norfolk Southern 1,177 121,416 0.02Nortel Networks* 2,439 — 0.00Northern Trust 854 66,379 0.01Northrop Grumman 919 234,756 0.05Norwegian Cruise Line 724 29,427 0.01NRG Energy 1,193 22,400 0.01Nuance Communications 1,219 14,126 0.00Nucor 1,312 63,761 0.01Nvidia 2,329 413,994 0.08NVR 14 29,432 0.01NXP Semiconductors 1,414 127,334 0.03Occidental Petroleum 3,139 151,371 0.03Old Republic International 946 13,675 0.00Omnicom 975 54,181 0.01ONEOK 1,460 60,090 0.01Oracle 11,910 436,838 0.08O'Reilly Automotive 339 58,427 0.01Paccar 1,419 73,000 0.01Packaging Corporation of America 390 33,872 0.01Palo Alto Networks 373 46,683 0.01Park Hotels & Resorts 553 10,487 0.00Parker-Hannifin 537 70,556 0.01Patterson 329 7,568 0.00Paychex 1,334 63,529 0.01PayPal 4,628 265,670 0.05Pentair 704 35,882 0.01People's United Financial 1,230 17,283 0.00PepsiCo 5,837 467,609 0.09Perrigo 536 31,745 0.01Pfizer 24,154 641,454 0.13PG&E 2,102 61,092 0.01Philip Morris International 6,342 476,864 0.09Phillips 66 1,788 118,967 0.02Pinnacle West 446 25,113 0.01Pioneer Natural Resources 690 87,045 0.02PNC Financial Services 1,997 231,151 0.04Polaris Industries 235 19,480 0.00PPG Industries 1,056 87,939 0.02PPL 2,827 59,554 0.01




United States of America (continued)Praxair 1,166 129,707 0.03Principal Financial 1,094 50,242 0.01Procter & Gamble 10,463 608,565 0.12Progressive 2,389 101,035 0.02Prologis 2,174 94,738 0.02Prudential Financial 1,743 136,826 0.03Public Service Enterprise 2,105 74,181 0.01Public Storage 608 84,769 0.02Pulte Homes 1,152 23,711 0.01PVH 307 32,760 0.01Qorvo 509 29,852 0.01Qualcomm 6,049 289,908 0.06Quest Diagnostics 557 42,171 0.01Ralph Lauren 228 17,770 0.00Range Resources 1,044 9,926 0.00Raymond James Financial 546 36,956 0.01Raytheon 1,660 262,875 0.05Realty Income 1,156 41,206 0.01Red Hat 744 79,248 0.02Regency Centers 609 25,483 0.00Regeneron Pharmaceuticals 327 75,823 0.02Regions Financial 4,919 69,723 0.01RenaissanceRe 158 14,744 0.00Republic Services 960 46,523 0.01ResMed 570 39,330 0.01Robert Half International 502 20,824 0.01Rockwell Automation 525 69,992 0.01Rockwell Collins 918 91,303 0.02Roper Industries 410 83,004 0.02Ross Stores 1,541 86,324 0.02Royal Caribbean Cruises 703 65,440 0.01S&P Global 1,055 147,176 0.03Safeway Casa Ley* 276 – 0.00Safeway PDC* 276 – 0.00Salesforce.com 2,788 234,468 0.05Santander Consumer USA 510 6,068 0.00SBA Communications 485 57,179 0.01SCANA 536 15,466 0.00Schlumberger 5,682 274,453 0.05Scripps Networks Interactive 361 23,396 0.01Seagate 1,170 44,672 0.01Sealed Air 719 21,889 0.00SEI Investments 566 29,989 0.01Sempra Energy 1,038 82,548 0.02Sensata 691 26,802 0.01Servicenow 693 81,756 0.02Sherwin-Williams 330 95,212 0.02Signet Jewelers 250 9,150 0.00




United States of America (continued)Simon Property 1,265 140,684 0.03Sirius XM 5,961 27,088 0.01Skyworks Solutions 763 60,800 0.01SL Green Realty 378 26,186 0.01Snap-on 230 26,292 0.01Southern 4,066 127,485 0.02Southern Copper 305 11,764 0.00Southwest Airlines 644 27,208 0.01Splunk 563 38,127 0.01Sprint 2,671 10,130 0.00Stanley Black & Decker 622 72,648 0.02Starbucks 5,761 235,443 0.05State Street 1,537 119,000 0.02Stericycle 328 14,812 0.00Stryker 1,405 166,596 0.03SunTrust Banks 1,939 98,799 0.02Symantec 2,576 48,963 0.01Synchrony Financial 3,192 84,862 0.02Synopsys 603 36,994 0.01Sysco 1,959 84,717 0.02T Rowe Price 966 78,434 0.02Tapestry 1,170 42,820 0.01Targa Resources 903 29,963 0.01Target 2,282 124,569 0.03TD Ameritrade 1,052 44,255 0.01TE Connectivity 1,425 107,467 0.02Tesla Motors 540 136,892 0.03Texas Instruments 4,047 316,755 0.06Thermo Fisher Scientific 1,633 248,548 0.05Tiffany 442 32,698 0.01Time Warner 3,201 217,979 0.04TJX 2,592 144,786 0.03T-Mobile 1,198 51,877 0.01Toll Brothers 550 17,924 0.00Torchmark 468 29,411 0.01Total System Services 735 46,722 0.01Tractor Supply 498 23,385 0.01Transdigm 280 58,919 0.01Travelers 1,122 114,713 0.02Trimble Navigation 1,021 28,287 0.01TripAdvisor 452 12,967 0.00Twitter 2,840 64,240 0.01Tyson Foods 1,133 61,013 0.01UDR 1,089 26,411 0.01Ulta Salon Cosmet 240 35,204 0.01Under Armour ‘A’ 743 8,991 0.00Under Armour ‘C’ 899 9,807 0.00Union Pacific 3,214 310,533 0.06




United States of America (continued)United Continental 308 15,091 0.00United Parcel Service 'B' 2,813 214,785 0.04United Rentals 342 44,073 0.01United Technologies 4,259 411,962 0.08UnitedHealth 3,917 657,757 0.13Universal Health Services 'B' 365 31,007 0.01Unum 948 35,572 0.01US Bancorp 6,367 253,033 0.05Valero Energy 1,779 119,178 0.02Varian Medical Systems 374 32,839 0.01Ventas 1,468 51,871 0.01VEREIT 4,193 20,568 0.01VeriSign 355 29,855 0.01Verisk Analytics 639 47,567 0.01Verizon Communications 16,722 580,474 0.11Vertex Pharmaceuticals 1,046 125,351 0.03VF 1,359 73,566 0.02Viacom 'B' 1,433 34,370 0.01Visa 7,432 662,609 0.13VMware 303 28,216 0.01Vornado Realty Trust 700 33,574 0.01Voya Financial 724 27,094 0.01Vulcan Materials 547 46,970 0.01Wabtec 360 21,347 0.00Walgreens Boots Alliance 3,565 178,070 0.04Wal-Mart Stores 5,858 387,359 0.08Waste Management 1,763 110,757 0.02Waters 314 46,742 0.01Weatherford 3,588 7,310 0.00WEC Energy 1,315 57,523 0.01Weingarten Realty Investors 487 9,520 0.00Wells Fargo 18,074 773,257 0.15Welltower 1,513 57,090 0.01Western Digital 1,207 76,020 0.02Western Union 1,979 28,566 0.01Westlake Chemical 130 10,430 0.00WestRock 1,029 49,554 0.01Weyerhaeuser 3,104 79,091 0.02Whirlpool 282 33,656 0.01Williams 3,370 69,021 0.01Willis Towers Watson 533 61,995 0.01Workday 538 49,832 0.01Worldpay 1,190 67,040 0.01WR Berkley 377 18,932 0.00WW Grainger 217 41,509 0.01Wyndham Worldwide 425 35,601 0.01Wynn Resorts 332 40,475 0.01Xcel Energy 2,100 66,283 0.01




United States of America (continued)Xerox 935 20,433 0.01Xilinx 1,026 52,953 0.01XL 1,035 31,913 0.01Xylem 716 39,173 0.01Yum China 1,567 49,199 0.01Yum! Brands 1,369 79,329 0.02Zimmer 829 70,748 0.01Zions Bancorporation 812 32,698 0.01Zoetis 2,003 118,195 0.02

Derivatives (0.20)% (0.12%)

Futures (0.12)% (0.12%)EURO STOXX 50 Expiry March 2018 331 (376,183) (0.07)FTSE 100 Index Future (Lif) Expiry March 2018 173 (176,730) (0.03)Long Gilt Future Expiry June 2018 19 (766) 0.00MSCI Emerging Market Index Future Expiry March 2018 143 471,742 0.09S&P 500 E–mini Index Future (CME) Expiry March 2018 (107) (391,182) (0.08)Topix Index Future Expiry March 2018 71 (158,555) (0.03)

EUR Forward Foreign Currency Contracts 0.00% (0.00%)Forward Currency Contracts 15/03/18 EUR2,200 1,942 0.00Forward Currency Contracts 15/03/18 £(1,941) (1,941) 0.00Forward Currency Contracts 20/03/18 EUR(1,769,498) (1,562,688) (0.30)Forward Currency Contracts 20/03/18 £1,554,155 1,554,155 0.30Forward Currency Contracts 20/03/18 EUR(3,538,995) (3,125,374) (0.61)Forward Currency Contracts 20/03/18 £3,108,402 3,108,402 0.60Forward Currency Contracts 20/03/18 EUR(3,538,995) (3,125,374) (0.61)Forward Currency Contracts 20/03/18 £3,112,373 3,112,373 0.61Forward Currency Contracts 20/03/18 EUR(3,538,995) (3,125,374) (0.61)Forward Currency Contracts 20/03/18 £3,135,401 3,135,401 0.61Forward Currency Contracts 20/03/18 EUR(5,308,493) (4,688,062) (0.91)Forward Currency Contracts 20/03/18 £4,704,609 4,704,609 0.92

JPY Forward Foreign Currency Contracts (0.07)% (0.00%)Forward Currency Contracts 20/03/18 JPY(189,105,222) (1,276,108) (0.25)Forward Currency Contracts 20/03/18 £1,242,411 1,242,410 0.24Forward Currency Contracts 20/03/18 JPY(378,210,445) (2,552,216) (0.50)Forward Currency Contracts 20/03/18 £2,480,962 2,480,962 0.48Forward Currency Contracts 20/03/18 JPY(378,210,444) (2,552,216) (0.50)Forward Currency Contracts 20/03/18 £2,481,517 2,481,517 0.48Forward Currency Contracts 20/03/18 JPY(378,210,444) (2,552,216) (0.50)Forward Currency Contracts 20/03/18 £2,508,679 2,508,679 0.49Forward Currency Contracts 20/03/18 JPY(567,315,667) (3,828,324) (0.74)Forward Currency Contracts 20/03/18 £3,763,348 3,763,348 0.73




USD Forward Foreign Currency Contracts (0.01)% (0.00%)Forward Currency Contracts 20/03/18 USD 6,962,335 5,025,170 0.98Forward Currency Contracts 20/03/18 £(5,190,454) (5,190,454) (1.01)Forward Currency Contracts 21/05/18 USD (3,955,600) (2,847,283) (0.55)Forward Currency Contracts 21/05/18 £2,944,279 2,944,279 0.57Forward Currency Contracts 21/05/18 USD 58,000 41,749 0.01Forward Currency Contracts 21/05/18 £(41,699) (41,699) (0.01)

Portfolio of investments 92.63% (94.10%) 476,089,790 92.63

Net current assets 7.37% (5.90%) 37,864,542 7.37

Total net assets 513,954,332 100.00

The figures in brackets represent the proportion of the total net assets of the Sub-fund represented by the holdings as at 28 February 2017.

Unless otherwise stated, all investments are approved securities being either officially listed in a member state or traded on or under the rules ofan eligible securities market.

Unless otherwise indicated, the holdings in the Portfolio Statement represent the ordinary shares, ordinary stock units or common shares of therelevant companies or issuers.

†Related party investment.

*This security is suspended and therefore priced at the ACD's fair valuation.

**This Security has been re-categorised to Luxembourg equities. This was previously shown under Equity Investment Instruments.




RBS Investment Funds ICVC - Royal Bank of Scotland Balanced Fund

Statement of Total Returnfor the year ended 28 February 2018

Statement of Change in Net Assets Attributable to Shareholdersfor the year ended 28 February 2018

Balance Sheetas at 28 February 2018

Notes

28/02/2018 £ £

28/02/2017 £ £

IncomeNet capital gainsRevenue

ExpensesInterest payable and similar chargesNet revenue before taxationTaxationNet revenue after taxationTotal return before distributionsDistributionsChange in net assets attributable toShareholders from investment activities

2346

5

7

22,796,127 12,883,783 (8,034,530) (9,228) 4,840,025 (594,756) 4,245,269 27,041,396 (4,465,431)

22,575,965

76,359,653 13,482,894 (7,574,382) (13,390) 5,895,122 (496,486) 5,398,636 81,758,289 (5,432,617)

76,325,672

Notes

28/02/2018 £ £

28/02/2017 £ £

Opening net assets attributableto Shareholders

Amounts received on issue of sharesAmounts paid on cancellation of shares

Change in net assets attributableto Shareholders from investment activities (see above)Retained distributions on accumulation shares 7Unclaimed distributionsClosing net assets attributable to Shareholders

519,258,986 4,779,903 (36,937,431) (32,157,528)

22,575,965 4,276,308 601 513,954,332

473,866,941

5,939,883 (42,108,610) (36,168,727)

76,325,672 5,234,044 1,056 519,258,986

Notes

28/02/2018 £ £

28/02/2017 £ £

ASSETSFixed assets

Investment assetsCurrent assets

Debtors Cash and bank balances

Total other assets Total assets

LIABILITIES Investment liabilitiesCreditors

Bank overdraftsAmounts due to futures clearing houses and brokersDistribution payableOther creditors

Total other liabilitiesTotal liabilitiesNet assets attributable to Shareholders

89

10

513,662,535 2,128,407 36,917,080 39,045,487 552,708,022 (37,572,745) (50,628)

(194,869) – (935,448) (1,180,945) (38,753,690) 513,954,332

495,837,720 2,602,236 29,284,426 31,886,662 527,724,382 (7,223,534)

–

(78,029) (32,980) (1,130,853) (1,241,862) (8,465,396) 519,258,986


RBS Investment Funds ICVC - Royal Bank of Scotland Balanced Fund

Distribution Statementfor the year ended 28 February 2018

Final Distribution for Income Shares(in pence per share)

Group 1: Shares purchased prior to 1 September 2017Group 2: Shares purchased from 1 September 2017 to 28 February 2018

Percentage of (F)ranked/(U)nfranked revenue; F=100.00%, U=0.00%

Final Distribution for Accumulation Shares(in pence per share)

Group 1: Shares purchased prior to 1 September 2017Group 2: Shares purchased from 1 September 2017 to 28 February 2018


Interim Distribution for Income Shares(in pence per share)

Group 1: Shares purchased prior to 1 March 2017Group 2: Shares purchased from 1 March 2017 to 31 August 2017


Interim Distribution for Accumulation Shares(in pence per share)

Group 1: Shares purchased prior to 1 March 2017Group 2: Shares purchased from 1 March 2017 to 31 August 2017


Dividend Distribution

Net

Revenue

Equalisation

Amountpayable on

30/04/2018

Amountpaid on

28/04/2017

Group 1

Group 2

0.0000

0.0000

–

0.0000

0.0000

0.0000

0.9979

0.9979


Net

Revenue

Equalisation

Amountpayable on

30/04/2018

Amountpaid on

28/04/2017

Group 1

Group 2

0.0000

0.0000

–

0.0000

0.0000

0.0000

1.2674

1.2674


Net

Revenue

Equalisation

Amountpaid on

31/10/2017

Amountpaid on

31/10/2016

Group 1

Group 2

2.7913

0.7476

–

2.0437

2.7913

2.7913

2.2650

2.2650


Net

Revenue

Equalisation

Amountpaid on

31/10/2017

Amountpaid on

31/10/2016

Group 1

Group 2

3.5518

1.5267

–

2.0251

3.5518

3.5518

2.8481

2.8481


RBS Investment Funds ICVC - Royal Bank of Scotland Balanced FundNotes to the Financial Statementsfor the year ended 28 February 2018

1 Accounting and distribution policies

The Sub-fund’s accounting and distribution policies are set out on pages 6 to 7.

2 Net capital gains

The net capital gains on investments during the year comprise: 28/02/2018 28/02/2017 £ £

Non-derivative securities 24,102,333 78,267,213

Derivative securities (817,723) (1,110,974)

Forward currency contracts (412,528) (1,138,360)

Currency exchange (73,707) 279,341

Rebate on ACD’s charge 78,968 136,467

Activity charges (81,216) (74,034)

Net capital gains 22,796,127 76,359,653

3 Revenue

28/02/2018 28/02/2017 £ £

Bank interest 2,422 5,209

Interest on debt securities 1,692,773 2,691,659

Rebate on ACD’s charge 35,207 210,482

Overseas dividends 6,839,258 5,371,266

Property income dividends 152,235 201,398

Returns from bond futures 20,086 36,125

Non-taxable stock dividends 1,592 5,339

UK dividends 4,140,210 4,953,864

Underwriting commission – 7,552

Total revenue 12,883,783 13,482,894


RBS Investment Funds ICVC - Royal Bank of Scotland Balanced FundNotes to the Financial Statements(continued)

4 Expenses

28/02/2018 28/02/2017 £ £

Payable to the ACD or Associate of the ACD:ACD’s periodic charge 7,903,663 7,419,217

7,903,663 7,419,217

Payable to the Depositary or Associate of the Depositary:Depositary’s fees 71,415 66,120

Safe custody charges 48,281 41,332

119,696 107,452

Other expenses:Audit fee 9,962 14,039

Printing costs 3,687 13,360

Professional service fees (2,478) –

Tax compliance fee* – 20,314

11,171 47,713

Total expenses 8,034,530 7,574,382 The Audit fee for the year, excluding VAT, was £10,000 (2017 – £10,000).

*Tax compliance fee was paid to Deloitte, who were the previous auditors until 28/02/16.



5 Taxation

28/02/2018 28/02/2017 £ £

a) Analysis of tax charge in year:

Corporation tax - prior year adjustment – (6,333)

Overseas tax withheld 594,756 501,622

Irrecoverable UK income tax – 1,197

Total tax charge (note 5b) 594,756 496,486

b) Factors affecting tax charge for the year: The tax assessed for the year is lower than the standard rate of corporation tax in the UK for an ICVC (20%) (2017: 20%). The differences are explained below:

Net revenue before taxation 4,840,025 5,895,122

Corporation tax @ 20% 968,005 1,179,024

Effects of:

Capitalised income subject to tax 15,794 –

Capitalised rebate subject to tax – 33,981

Dividends not subject to corporation tax (2,035,344) (1,963,713)

Excess expenses not utilised 1,054,289 757,725

Excess management expenses - prior year adjustment 1,761 (2,389)

Irrecoverable UK income tax – 1,197


Relief of expenses against offshore gains (4,505) (4,628)

Corporation tax - prior year adjustment – (6,333)

Total tax charge (see note 5a) 594,756 496,486

c) Deferred taxAfter claiming relief against accrued revenue taxable on receipt, the Sub-fund has unrelieved excess expenses of £12,249,550 (28/02/2017:£6,978,105). These unrelieved excess management fees represent an unrecognised deferred tax asset of £2,449,910 (28/02/2017: £1,395,621).It is unlikely that the Sub-fund will generate sufficient taxable profits in the future to utilise these expenses and therefore no deferred taxasset has been recognised (28/02/2017: £nil).



6 Interest payable and similar charges

28/02/2018 28/02/2017 £ £

Interest 9,228 13,390

Total interest 9,228 13,390

7 Distributions

The distributions take account of amounts added on the issue of shares and amounts deducted on the cancellation of shares and comprise:

28/02/2018 28/02/2017 £ £

Income DistributionsInterim distribution 31 August - Income shares 89,198 77,772

Final distribution 28 February - Income shares – 32,981

89,198 110,753

Accumulation DistributionsInterim distribution 31 August - Accumulation shares 4,276,308 3,656,802

Final distribution 28 February - Accumulation shares – 1,577,242

4,276,308 5,234,044

Amounts received on creations and deducted on cancellationsAmounts added on issue of shares (11,706) (10,670)

Amounts deducted on cancellation of shares 111,631 98,490

99,925 87,820

Net distributions for the year 4,465,431 5,432,617

The distributable amount has been calculated as follows:

Net revenue after taxation 4,245,269 5,398,636

Corporation tax plus tax relief paid from capital – 27,293

Corporation tax offshore – 6,688

Shortfall of income taken to capital 220,162 –




8 Debtors

28/02/2018 28/02/2017 £ £

Accrued revenue 1,745,387 2,208,001

Income tax recoverable 50,251 46,526

Overseas tax recoverable 330,732 151,160

Sales awaiting settlement 2,037 196,549

Total debtors 2,128,407 2,602,236

9 Cash and bank balances

28/02/2018 28/02/2017 £ £

Amounts held at futures clearing houses and brokers 2,970,744 463,291

Amounts held in Aviva Investors Sterling Liquidity Fund 32,000,735 26,100,735

Cash held at bank 1,945,601 2,720,400

Total cash and bank balances 36,917,080 29,284,426

10 Creditors

28/02/2018 28/02/2017 £ £

Other creditorsAccrued expenses 641,901 609,802

Amount payable for cancellation of shares 293,547 486,074

Purchases awaiting settlement – 34,977

Total other creditors 935,448 1,130,853



11 Financial instruments

a) Credit riskThe Sub-fund enters into derivative transactions in the form of futures and forward currency contracts. The purpose of these financial instrumentsis Efficient Portfolio Management. Futures are used to manage market price risk. Forward currency contracts are used to manage currency riskarising from holdings of overseas securities. The purpose of undertaking these contracts is to protect the portfolio as far as possible from adownturn in the markets.

The Sub-fund’s use of exchange traded derivatives are considered to be free of counterparty risk if the derivative is traded on an exchange wherethe clearing house is backed by an appropriate performance guarantee and is characterised by a daily mark-to-market valuation of the derivativeposition and at least daily margining.

At 28 February 2018, the Sub-fund held non exchange traded derivatives in the form of forward currency contracts. The counterparty exposureis shown below:

No collateral is held or pledged for forward currency contracts. Given the short maturity of the transactions, the ACD believes the robust approvaland monitoring procedures in place for the counterparties are sufficient to mitigate the counterparty risk associated with the contracts.Margin interest is paid or received on futures contracts to cover any exposure by the counterparty to the Sub-fund or by the Sub-fund to thecounterparty. Cash and bank balances consist primarily of cash and margin receivable from the Sub-fund’s clearing brokers and JP Morgan Chaseand UBS. It is included in "Cash and bank balances" on the Balance Sheet.

Margin amounts held at futures clearing houses and brokers are disclosed in notes 9 and overdrafts in the liabilities section of the balance sheet.

b) Interest rate riskThe interest rate risk profile of financial assets and liabilities as at 28 February 2018 was as follows:

The interest rate risk profile of financial assets and liabilities as at 28 February 2017 was as follows:

Counterparty Details of OTC Financial Derivative Transactions

Forwards28/02/2018

£

Goldman SachsJPMorgan ChaseRoyal Bank of ScotlandSociété Générale CowenStandard Chartered Bank

(156,871)(42,230)

(165,283)1

50

Floating Rate

Investments£

Fixed Rate

Investments£

Non-interest Bearing

Investments£

Total£

Investment assetsInvestment liabilities

– 46,610,704 467,051,831 513,662,535– – (37,572,745) (37,572,745)

Floating Rate

Investments£

Fixed Rate

Investments£


Investments£

Total£


– 50,241,249 445,596,471 495,837,720– – (7,223,534) (7,223,534)



11 Financial instruments (continued)

c) Currency exposure riskThe currency risk as at 28 February 2018 was as follows:

The currency risk as at 28 February 2017 was as follows:

Currency

Monetary exposures

£

Net currency assetsNon- monetary

exposures£

Total£

Australian dollarCanadian dollarDanish kroneEuroHong Kong dollarIndonesian rupiahJapanese yenKorean wonMalaysian ringgitNorwegian kronePhillipine pesoSingapore dollarSwedish kronaSwiss francTaiwan dollarThai bahtUS dollarTotal

811 3,699,950 3,700,76138,143 3,680,349 3,718,492

248,234 2,439,435 2,687,669684,902 61,159,720 61,844,622

– 5,249,173 5,249,173– 495,272 495,272

129,561 17,602,518 17,732,079– 2,897,851 2,897,851– 175,221 175,221– 95 95– 81,123 81,123

(514) 759,529 759,0152 – 2

6,319 8,231,827 8,238,146– 2,780,746 2,780,746– 299,278 299,278

600,471 77,496,494 78,096,9651,707,929 187,048,581 188,756,510

Currency

Monetary exposures

£


exposures£

Total£

Australian dollarCanadian dollarDanish kroneEuroHong Kong dollarIndonesian rupiahJapanese yenKorean wonMalaysian ringgitNorwegian kronePhilippine pesoSingapore dollarSwedish kronaSwiss francTaiwan dollarThai bahtUS dollarTotal

222 4,157,250 4,157,47254,789 4,493,892 4,548,681

147,406 1,587,598 1,735,004719,227 68,607,663 69,326,890

74 5,616,954 5,617,028– 478,616 478,616

434 21,964,962 21,965,396– 3,762,099 3,762,099– 288,486 288,486– 95 95– 99,113 99,113

180 509,073 509,2532 – 2

248,938 12,508,498 12,757,436– 3,666,189 3,666,189– 577,188 577,188

780,286 84,514,006 85,294,2921,951,558 212,831,682 214,783,240




d) Valuation of financial investmentsThe categorisation of financial investments in the tables below reflects the methodology used to measure their fair value.

Level 1: The unadjusted quoted price in an active market for identical assets or liabilities the entity can access at measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability,either directly or indirectly.

Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

e) Sensitivity analysis

Interest rate sensitivityAn increase of 100 basis points (1%) as at the reporting date will cause net capital gains to decrease by £7,604,785 and the net asset value todecrease by £7,604,785 (28/02/2017 will cause net capital gains to increase by £7,973,465 and the net asset value to increase by £7,973,465).

A decrease would have had an equal but opposite effect. The analysis assumes all other variables remain constant.

Currency sensitivityThe tables below sets out the effect of a reasonably possible strengthening of:

A weakening of the GBP against the above currencies of the same rates will have resulted in an equal but opposite effect. The analysis assumesall other variables remain constant.

28 February 2018 Assets

£ Liabilities

£

Level 1: QuotedLevel 2: ObservableLevel 3: Unobservable

430,946,835 82,715,700

– 513,662,535

(1,103,416) (36,469,329)

– (37,572,745)

Currencies 28/02/2018

% 28/02/2017

%

GBP against EURGBP against all currencies

55

55

Effect in GBP 28/02/2018

£ 28/02/2017

£

EURDecrease in net capital gains/(increase in net capital losses) and decrease in net asset valueAll currenciesDecrease in net capital gains/(increase in net capital losses) and decrease in net asset value

(2,491,908)

(11,221,229)

(3,401,368)

(12,340,385)


£ Liabilities

£


424,079,844 71,757,876

–495,837,720

(350,250) (6,873,284)

– (7,223,534)




e) Sensitivity analysis continued

Equity market price sensitivityThe table below sets out the effect of a reasonably possible strengthening in equity market prices by 5% as at the reporting date:

A weakening in equity market prices of the same 5% will have resulted in an equal but opposite effect. The analysis assumes all other variablesremain constant.

f) LeverageThe Sub-fund did not employ significant leverage during the year.

12 Portfolio transaction costs

For the year ended 28 February 2018

TransactionValue Commissions Taxes

Purchases (excluding derivatives) £ £ % £ %Equity instruments (direct) 48,419,226 21,478 0.04 98,428 0.20 Debt instruments (direct) 19,427,555 – – – –Collective investment schemes 9,350,193 45 0.00 1,437 0.02 Total purchases 77,196,974 21,523 99,865

Total purchases including transaction costs 77,318,362


Sales (excluding derivatives) £ £ % £ %Equity instruments (direct) 80,494,439 33,457 0.04 9,249 0.01 Debt instruments (direct) 21,758,862 – – – –Collective investment schemes 7,868,443 188 0.00 9,566 0.12 Total purchases 110,121,744 33,645 18,815


Derivative transaction costs 5,884 –

Total transaction costs 61,052 118,680

Total transaction costsas a % of average net assets 0.01% 0.02%

28/02/2018

£ 28/02/2017

£

Increase in net capital gains and increase in net asset value 20,058,691 19,994,694



12 Portfolio transaction costs (continued)



Purchases (excluding derivatives) £ £ % £ %Equity instruments (direct) 55,987,306 48,743 0.09 149,093 0.27 Debt instruments (direct) 64,682,414 – – – –Collective investment schemes 56,436,856 – – – –Total purchases 177,106,576 48,743 149,093



Sales (excluding derivatives) £ £ % £ %Equity instruments (direct) 81,568,215 56,153 0.07 4,478 0.01 Debt instruments (direct) 103,670,903 – – – –Collective investment schemes 37,885,395 681 – 1,343 –Total sales 223,124,513 56,834 5,821

Total sales net of transaction costs 223,061,858

Derivative transaction costs 17,545 –



The above analysis covers any direct transaction costs suffered by the Sub-fund during the year. However it is important to understand the natureof other transaction costs associated with different investment asset classes and instruments types.

Separately identifiable direct transaction costs (commissions and taxes etc.) are attributable to the Sub-fund's purchase and sale of equity shares.Additionally for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be suffered onpurchase and sale transactions.

For the Sub-fund's investment transactions in debt and money market instruments any applicable transaction charges form part of the dealing spread for these instruments. Transactions in money market instruments to manage the Sub-fund's daily liquidity position are excludedfrom the analysis.

For the Sub-fund's investment in collective investment scheme holdings there will potentially be dealing spread costs applicable to purchases andsales. However additionally there are indirect transaction costs suffered in those underlying funds, throughout the holding period for theinstruments, which are not separately identifiable and do not form part of the analysis above.

During the year the Sub-fund utilised derivative instruments including futures covering different underlying asset classes. The settlement valuesfor opening and closing derivative positons are not comparable to principal values for transactions in direct holding investments and thereforepurchase and sale amounts for derivative transactions are not quantified in the analysis above. Transaction costs for derivatives positions will beeither suffered as direct costs or form part of the dealing spread for the instruments. Any direct costs are identified in the analysis above.

Dealing spread costs suffered by the Sub-fund vary considerably for the different asset/instrument types depending on a number of factorsincluding transaction value and market sentiment.

At the balance sheet date the average portfolio dealing spread (difference between bid and offer prices of all investments expressed as a percentageof the offer price value) was 0.15% (2017 - 0.20%).




RBS Collective Investment Funds Limited acts as principal on all the transactions of shares in the Sub-fund. The aggregate monies receivedthrough the creation and cancellation of shares are disclosed in the Statement of change in net assets attributable to Shareholders.

Amounts paid to RBS Collective Investment Funds Limited in respect of the ACD’s, associates and agents periodic fees are disclosed in note 4.The balance outstanding as at the year end was £608,398 (£585,489 as at 28 February 2017).

Details of related party investments are disclosed within the portfolio statement.

14 Contingent liabilities

There were no contingent liabilities at the balance sheet date (28/02/2017: nil).

15 Share movement


16 Post balance sheet events

There have been no significant events subsequent to the year end, which, in the opinion of the Manager, may have had an impact on thefinancial statements for the year ended 28 February 2018.

Income

shares Accumulation

shares

Opening sharesShares issuedShares redeemedClosing shares

3,305,00942,107

(272,184)3,074,932

124,443,7081,090,569

(8,437,554)117,096,723

Royal Bank of Scotland Equity Income Fund

Audited Report for the year ended28 February 2018


RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income FundFund Reportfor the year ended 28 February 2018

Investment Objective & PolicyTo achieve a yield higher than the yield on the FTSE Actuaries All-Share Index, with the prospect of rising income and growth in the value ofshares. The Sub-fund will be invested in UK securities, principally in UK equities judged to offer high yields and long term growth prospects,with a small exposure to international equity and bond markets.


PerformanceThe Sub-fund returned 4.24 per cent (after charges) for the year to the end of February 2018, compared with a return of 4.40 per cent for thebenchmark FTSE All Share Index and an average return of 4.21 per cent for its peer group, the Investment Association UK Equity Income sector.

Portfolio SummaryThe Sub-fund marginally underperformed the FTSE All Share Index over the reporting year but was in line with its peer group. Exposure toconsumer stocks detracted from performance, particularly holdings in Imperial Tobacco, ITV and WPP. Shares in Imperial Tobacco, along withother companies in the sector, sold off following an announcement from the US Food and Drug Administration (FDA) extending the deadlinefor registering next generation tobacco products, while the FDA declared their intention to undertake a consultation on reducing nicotine contentto non-addictive levels. Declining sales in Germany, one of the company’s largest markets, also weakened the shares while more generallytobacco stocks were impacted by weakness in bond markets over the reporting year, as with other consumer staples they are viewed as a bondproxy for income seeking investors. Broadcaster ITV reported a fall in annual earnings for 2017, as political and economic uncertainty ledcompanies to reduce advertising expenditure. However, the company reported strong revenue growth from its studios business and forecastadvertising revenues should return to growth this year with the FIFA World Cup being held this summer. Lower spending on advertising bymultinational brands also led to a decline in sales revenues at advertising group WPP, while the company cautioned that trading conditionswould remain challenging throughout 2018.

Amongst telecoms, our holding in BT underperformed on concerns about the company’s pension fund liabilities and the uncertainty that remainsaround its Openreach business. This outweighed a positive contribution from our holding in telecom group KCOM. The company is focused onthe Hull and East Yorkshire region and has been investing heavily in building a fibre optic network. KCOM recently announced that annualearnings for the year ending in March should be above previous forecasts.

The main contributors to performance relative to the FTSE All Share Index during the reporting year were holdings in Intermediate Capital, BBAAviation and Ibstock. Intermediate Capital, a specialist investor in alternative assets such as real estate and mezzanine capital, a higher risk formof debt. The company announced that it had raised €5.2 billion for its latest debt fund, focusing on the European direct lending market asinvestment companies have moved into the mid-cap and smaller company lending space previously the preserve of the banking sector. Thecompany’s interim results highlighted record inflows as the popularity of alternative assets continued amongst institutional investors lookingfor higher yielding assets. Flight support services group BBA Aviation recently reported a return to profitability in 2017, with a strong reboundin performance in both its flight support and aftermarket services businesses. Ibstock is the UK’s largest brick manufacturer, and opened a newplant in the midlands during the fourth quarter of 2017 which will reduce the company’s dependency on imports. Ibstock is benefiting fromgrowth in the new build housing sector, which we continue to favour and are encouraged by the government making it a priority for investmentand initiatives. In the November budget, the Chancellor pledged to fix the housing market with a target of 300,000 new homes being built bythe middle of the next decade, aided by stamp duty changes and planning reforms.

Main portfolio adjustmentsAdditions were made to the Sub-fund’s position in Intermediate Capital where we continue to believe in the success of their building of assetmanagement, their expansion of their product suite, and their switch to an asset light model. We believe them to be cash generative, to be de-risking their balance sheet, and growing fixed management fees. We participated in the Cineworld rights issue relating to their purchase ofRegal in the US as we are positive on the potential for a turnaround that Cineworld’s management can implement at Regal. We also started aposition in Ibstock, the largest clay brick and concrete material manufacturer in the UK. We believe in their accelerating growth in housing base,new facilities coming online, and margin development with better volumes. They have strong free cash flow, robust operational leverage, anddeclining debt levels. We believe Ibstock operate in an almost oligopolistic market requiring high capital requirements to enter. We also addedto our holdings within financials (Prudential and HSBC) as we seek to benefit from the rising rate environment.

We exited our position in Centrica. We feel there is continued pressure on the UK retail market with political pricing pressures, the US business has seen heightened competition, and the development of smart strategy has been tougher than expected. We also sold out of ourposition in Northgate (the UK's largest commercial vehicle rental provider). We have concerns over the competitive 2-3 years lease length spacethey’re trying to enter. We trimmed our position in River and Mercantile (the asset management and pension advisory services company) onvaluation grounds.


RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income FundFund Reportfor the year ended 28 February 2018

Outlook The UK’s prospects over the next few years are deeply coloured by Brexit and the deal that is struck with the EU. The spectre of a “cliff edge”departure from the EU in March 2019 remains a possibility despite the indisputable fact that it is in both parties’ interests to reach a compromise.Our central view is that a deal will be reached, but it would be wrong to disregard the downside scenario. The main initial adverse macro-economic consequence of a “no deal” outcome would be the disruption to trade as we revert to World Trade Organisation (WTO) rules andregulations. Overall, for 2018 we expect UK economic growth to remain relatively modest, while inflation should fall meaningfully and interestrates will not need to move much higher at this stage. Looking at the prospects for UK equities, it is significant that the market includes a broadspread of world-leading global companies whose earnings prospects in many cases are largely detached from the domestic economy. In viewof positive global economic data, encouraging earnings momentum and broadly supportive historic and relative valuations, we believe UKequities can make further progress.






RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income FundComparative table





28/02/2018pence

per share

28/02/2017pence

per share

28/02/2016pence

per share



Performance†




350.0819.73 (4.68)15.05

(15.10)–

350.03(0.29)

4.30%

66,213,631 18,916,400

1.30%0.08%

372.9343.6

315.0553.24 (4.27)48.97

(13.94)–

350.08(0.18)

15.54%

69,802,222 19,938,726

1.29%0.05%

352.9299.4

337.00(3.14)(4.22)(7.36)

(14.59)–

315.05(0.45)

(2.18)%

65,326,10820,735,067

1.29%0.14%

349.0295.0


RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income FundStatistics



This Sub-fund is ranked at 5 because funds of this type have experienced medium to high rises and falls in value in the past. The risk andreward category for this Sub-fund is not guaranteed to remain unchanged, and may shift over time.



Lower risk


Higher risk


1 2 3 4 5 6 7


RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income FundPortfolio Statementas at 28 February 2018 (28 February 2017)



Asset Managers 3.85% (4.28%)Rathbone Brothers 38,572 1,023,701 1.54 River & Mercantile 248,092 788,932 1.19 Schroders 21,394 739,163 1.12

Auto Parts 2.05% (0.00%)GKN 312,256 1,355,503 2.05

Banks 1.94% (0.00%)HSBC 177,714 1,281,496 1.94

Broadcasting & Entertainment 1.51% (3.43%)ITV 621,287 998,098 1.51

Building Materials & Fixtures 2.13% (0.60%)Ibstock 348,466 917,163 1.39 Volution 238,091 492,848 0.74

Business Support Services 0.03% (0.69%)Northgate 6,931 22,706 0.03


Containers & Packaging 1.80% (1.75%)DS Smith 248,509 1,194,831 1.80

Defence 2.03% (1.26%)BAE Systems 232,713 1,346,012 2.03

Equity Investment Instruments 3.39% (3.83%)GCP Student Living 221,972 307,209 0.46 Greencoat UK Wind 840,390 1,030,318 1.56 P2P Global Investments 114,471 907,755 1.37

Financial Services 5.09% (3.26%)Intermediate Capital 316,769 3,367,254 5.09

Fixed Line Telecommunications 4.01% (4.29%)BT 538,613 1,308,830 1.97 KCOM 1,350,500 1,349,149 2.04

Food Products 3.91% (4.37%)Unilever 69,069 2,589,051 3.91

Furnishings 0.84% (0.83%)Headlam 98,421 553,126 0.84

Gas Distribution 0.00% (2.76%)

General Mining 7.16% (4.80%)BHP Billiton 129,570 1,930,334 2.92 Rio Tinto 71,353 2,807,027 4.24

Home Improvement Retailers 0.72% (0.94%)DFS Furniture 259,064 479,787 0.72

Industrial Machinery 2.59% (2.31%)Melrose Industries 757,003 1,712,341 2.59

Integrated Oil & Gas 7.37% (7.43%)BP 373,788 1,790,445 2.70 Royal Dutch Shell 'B' 133,018 3,092,668 4.67

Investment Services 2.05% (2.57%)BCA Marketplace 285,863 479,678 0.72 Close Brothers 55,542 879,230 1.33

Life Insurance 12.13% (10.95%)Aviva 403,067 2,034,682 3.07 Legal & General 580,916 1,535,361 2.32 Phoenix 235,020 1,851,958 2.80 Prudential 141,382 2,607,791 3.94

Media Agencies 1.30% (1.50%)UBM 94,067 862,124 1.30

Mobile Telecommunications 2.98% (3.23%)Vodafone 968,045 1,971,908 2.98

Multi-utilities 1.93% (2.60%)National Grid 170,663 1,279,119 1.93

Pharmaceuticals 3.64% (5.28%)AstraZeneca 22,597 1,084,995 1.64 GlaxoSmithKline 100,846 1,322,293 2.00

Property & Casualty Insurance 1.28% (1.34%)Beazley 161,306 849,276 1.28


RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income FundPortfolio Statement(continued)


Publishing 1.99% (3.33%)Informa 48,943 338,490 0.51 RELX 65,861 980,341 1.48

Recreational Services 1.99% (0.00%)Carnival 13,550 650,806 0.98 Cineworld 280,165 665,672 1.01

Reinsurance 2.20% (2.52%)Hiscox 103,998 1,453,892 2.20


Software 2.06% (2.86%)Sage 196,670 1,366,856 2.06

Speciality Finance 0.56% (0.00%)Sherborne Investors 352,005 369,605 0.56

Speciality Retailers 0.00% (0.03%)

Telecommunications Equipment 0.39% (0.30%)Laird 221,961 258,585 0.39

Tobacco 5.91% (7.92%)British American Tobacco 61,651 2,688,292 4.06 Imperial Brands 46,850 1,225,362 1.85

Transporation Services 4.24% (5.31%)BBA Aviation 811,151 2,809,827 4.24

Portfolio of Investments 98.29% (99.17%) 65,083,109 98.29

Net Current Assets 1.71% (0.83%) 1,130,522 1.71

Total Net Assets 66,213,631 100.00





RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income FundPortfolio Statement(continued)



RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income Fund




Notes

28/02/2018 £ £

28/02/2017 £ £



2346

5

7

912,832 2,965,193 (896,747) (661) 2,067,785 – 2,067,785 2,980,617 (2,918,710)

61,907

7,912,634 2,855,771 (859,854) – 1,995,917 – 1,995,917 9,908,551 (2,830,610)

7,077,941

28/02/2018 £ £

28/02/2017 £ £

Opening net assets attributable to Shareholders

Amounts received on issue of sharesAmounts paid on cancellation of shares Dilution adjustment Change in net assets attributable to Shareholders from investment activities (see above)Unclaimed distributionsClosing net assets attributable to Shareholders

69,802,222 2,737,463 (6,389,452) (3,651,989) 1,491

61,907 – 66,213,631

65,326,108

2,712,123 (5,314,917) (2,602,794) –

7,077,941 967 69,802,222

Notes

28/02/2018 £ £

28/02/2017 £ £

ASSETSFixed assets




LIABILITIES Creditors

Distribution payableOther creditors


89

1010

65,083,109 635,145 1,118,551 1,753,696 66,836,805 (426,337) (196,837) (623,174) (623,174)

66,213,631

69,225,406 403,217 768,661 1,171,878 70,397,284 (458,843) (136,219) (595,062) (595,062) 69,802,222


RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income Fund



Group 1: Shares purchased prior to 1 December 2017Group 2: Shares purchased from 1 December 2017 to 28 February 2018



Group 1: Shares purchased prior to 1 September 2017Group 2: Shares purchased from 1 September 2017 to 30 November 2017



Group 1: Shares purchased prior to 1 June 2017Group 2: Shares purchased from 1 June 2017 to 31 August 2017



Group 1: Shares purchased prior to 1 March 2017Group 2: Shares purchased from 1 March 2017 to 31 May 2017



Net

Revenue

Equalisation

Amountpayable on

30/04/2018

Amountpaid on

28/04/2017

Group 1

Group 2

2.2538

1.4993

–

0.7545

2.2538

2.2538

2.3013

2.3013


Net

Revenue

Equalisation

Amountpaid on

31/01/2018

Amountpaid on

31/01/2017

Group 1

Group 2

3.4308

1.9398

–

1.4910

3.4308

3.4308

3.1737

3.1737


Net

Revenue

Equalisation

Amountpaid on

31/10/2017

Amountpaid on

31/10/2016

Group 1

Group 2

4.2937

2.1667

–

2.1270

4.2937

4.2937

3.4241

3.4241


Net

Revenue

Equalisation

Amountpaid on

31/07/2017

Amountpaid on

31/07/2016

Group 1

Group 2

5.1194

2.3714

–

2.7480

5.1194

5.1194

5.0372

5.0372


RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income FundNotes to the Financial Statementsfor the year ended 28 February 2018



2 Net capital gains


Non-derivative securities 916,690 7,916,586

Currency exchange – (305)


Net capital gains 912,832 7,912,634

3 Revenue

28/02/2018 28/02/2017 £ £


Rebate on ACD’s charge – 823

Overseas dividends 169,502 132,592

UK dividends 2,784,739 2,701,673

UK REIT PID dividends 8,303 11,205

Underwriting commission – 6,638

Total revenue 2,965,193 2,855,771


RBS Investment Funds ICVC - Royal Bank of Scotland Equity Income FundNotes to the Financial Statements(continued)

4 Expenses

28/02/2018 28/02/2017 £ £

Payable to the ACD or Associate of the ACD:ACD’s periodic charge 869,059 834,693

869,059 834,693


Safe custody charges 1,031 983

18,626 17,425


Printing costs 499 1,822

Professional service fees 76 –

9,062 7,736

Total expenses 896,747 859,854 The Audit fee for the year, excluding VAT, was £6,000 (2017 – £6,000).



5 Taxation

28/02/2018 28/02/2017 £ £


Overseas tax – –

Total tax charge (note 5b) – –



Corporation tax @ 20% 413,557 399,183

Effects of:

Dividends not subject to corporation tax (569,234) (547,125)

Movement in excess management expenses 155,677 148,550

Excess management expenses - prior year adjustment – (608)

Total tax charge (see note 5a) – –

c) Deferred taxAfter claiming relief against accrued revenue taxable on receipt, the Sub-fund has unrelieved excess expenses of £14,408,155(28/02/2017: £13,629,769). These unrelieved excess management fees represent an unrecognised deferred tax asset of £2,881,631(28/02/2017: £2,725,954). It is unlikely that the Sub-fund will generate sufficient taxable profits in the future to utilise these expenses andtherefore no deferred tax asset has been recognised (28/02/2017: £nil).




28/02/2018 28/02/2017 £ £

Interest 661 –

Total interest 661 –

7 Distributions


28/02/2018 28/02/2017 £ £

Income DistributionsInterim distribution 31 May - Income shares 993,782 1,029,673

Interim distribution 31 August - Income share 824,876 694,514

Interim distribution 30 November - Income shares 653,365 637,250

Final distribution 28 February - Income shares 426,337 458,843

2,898,360 2,820,280



20,350 10,330




Authorised Corporate Director's periodic charge taken to capital 869,059 834,693

Tax relief on capitalised expenses (18,134) –




8 Debtors

28/02/2018 28/02/2017 £ £

Accrued revenue 261,234 307,186

Income tax recoverable – 21,452



Total debtors 635,145 403,217


28/02/2018 28/02/2017 £ £

Cash held at bank 1,118,551 768,661

Total cash and bank balances 1,118,551 768,661

10 Creditors

28/02/2018 28/02/2017 £ £

a) Distribution payableNet distribution payable 426,337 458,843

Total distribution payable 426,337 458,843

b) Other creditorsAccrued expenses 77,671 72,154


Total other creditors 196,837 136,219




a) Interest rate riskAt the year end date, 28 February 2018, 1.69% (28/02/2017: 1.10%) of the Sub-fund’s net asset value was interest bearing. Further disclosurewould be required if the exposure of the Sub-fund was deemed significant.

b) Foreign currency riskAt the year end date, 28 February 2018, 0.09% (28/02/2017: 0.13%) of the Sub-fund’s net asset value was denominated in foreign currencies.

c) Credit riskThe Sub-fund enters into derivative transactions in the form of futures and forward currency contracts. The purpose of these financialinstruments is Efficient Portfolio Management. Futures are used to manage market price risk. Forward currency contracts are used to managecurrency risk arising from holdings of overseas securities. The purpose of undertaking these contracts is to protect the portfolio as far aspossible from a downturn in the markets.

The Sub-fund’s use of exchange traded derivatives are considered to be free of counterparty risk if the derivative is traded on an exchangewhere the clearing house is backed by an appropriate performance guarantee and is characterised by a daily mark-to-market valuation of thederivative position and at least daily margining. For forward foreign currency contracts, given the short maturity of the transactions, the ACDbelieves the robust approval and monitoring procedures in place for the counterparties are sufficient to mitigate the counterparty riskassociated with the contracts.

At 28 February 2018, no derivatives were held by the Sub-fund (28/02/17: nil).






£ Liabilities

£


65,083,109 ––

65,083,109

––––


£ Liabilities

£


69,225,406––

69,225,406

––––





Interest rate sensitivity

At the year end date, 28 February 2018, 1.69% (28/02/2017: 1.10%) of the Sub-fund’s net asset value was interest bearing, hence no interest ratesensitivity has been carried out.

Currency sensitivityAt the year end date, 28 February 2018, 0.09% (28/02/2017: 0.13%) of the Sub-fund’s net asset value was denominated in foreign currencies,hence no currency sensitivity has been carried out.







Purchases (excluding derivatives) £ £ % £ %Equity instruments (direct) 9,811,461 5,190 0.05 40,716 0.41 Collective investment schemes 5,134,593 – – – – Total purchases 14,946,054 5,190 40,716



Sales (excluding derivatives) £ £ % £ %Equity instruments (direct) 14,959,409 7,785 0.05 132 0.00Collective investment schemes 5,413,883 1,468 0.03 2 0.00 Total sales 20,373,292 9,253 134


Derivative transaction costs – –



28/02/2018

£ 28/02/2017

£





For the year ended 28 February 2017Transaction

Value Commissions Taxes

Purchases (excluding derivatives) £ £ % £ %Equity instruments (direct) 5,657,203 4,643 0.08 21,877 0.39 Collective investment schemes 80,890 – – – – Total purchases 5,738,093 4,643 21,877



Sales (excluding derivatives) £ £ % £ %Equity instruments (direct) 7,392,244 9,084 0.12 74 0.00 Total sales 7,392,244 9,084 74


Derivative transaction costs – –



The above analysis covers any direct transaction costs suffered by the Sub-fund during the year. However it is important to understand the natureof other transaction costs associated with different investment asset classes and instruments types.Separately identifiable direct transaction costs (commissions and taxes etc.) are attributable to the Sub-fund's purchase and sale of equity shares.Additionally for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be suffered onpurchase and sale transactions.

For the Sub-fund's investment transactions in debt and money market instruments any applicable transaction charges form part of the dealingspread for these instruments. Transactions in money market instruments to manage the Sub-fund's daily liquidity position are excluded from the analysis.

For the Sub-fund's investment in collective investment scheme holdings there will potentially be dealing spread costs applicable to purchases andsales. However additionally there are indirect transaction costs suffered in those underlying funds, throughout the holding period for theinstruments, which are not separately identifiable and do not form part of the analysis above.






RBS Collective Investment Funds Limited acts as principal on all the transactions of shares in the Sub-fund. The aggregate monies received throughthe creation and cancellation of shares are disclosed in the Statement of change in net assets attributable to Shareholders.Amounts paid to RBS Collective Investment Funds Limited in respect of the ACD’s, associates and agents periodic fees are disclosed in note 4. The balance outstanding as at the year end was £65,980 (£64,413 as at 28 February 2017).




15 Share movement




Income

shares


19,938,726762,179

(1,784,505)18,916,400

Royal Bank of Scotland Extra Income Fund

Audited Reportfor the year ended28 February 2018


RBS Investment Funds ICVC - Royal Bank of Scotland Extra Income FundFund Reportfor the year ended 28 February 2018

Investment Objective & PolicyTo provide a high and stable level of income. The Sub-fund will invest in UK and European fixed income securities.


PerformanceThe Sub-fund returned 0.39 per cent (after charges) in the 12 months to 28 February 2018, compared with a net return of 1.81 per cent for itspeer group, the Investment Association £ Corporate Bond sector.*

Portfolio SummaryDuring the period, the challenge was to maintain a stable and predictable income in the face of generally expensive corporate bond valuations.We continued to believe that there was little compensation for adding significant credit risk into the Sub-fund. We therefore focused on ensuringthe Sub-fund had enough yield without significantly increasing the levels of risk. The Sub-fund underperformed its peer group as, unlike manyof its competitor Funds, it is restricted from holding high-yield bonds. These outperformed over the period. Among the positions that addedvalue was insurance group RSA, which tendered a bond. RSA was part of our long-term, conviction-led theme of holding financial sector bondsthat were issued at favourable yields during the financial crisis. Supermarket Tesco’s similar decision to buy back bonds also boosted performance.Credits issued by European companies were helpful as Eurozone economic growth surpassed most expectations. Among the most notablebeneficiaries of the improving outlook were banks and insurers and the Sub-fund had overweight exposure to both sectors. Later in the period,we became less risk-averse as global growth accelerated and the UK economy steadied after its early-year slowdown. As risk appetite recovered,holdings of international companies started to add value. These included long-dated bonds of US companies, which were seen as key beneficiariesof President Trump’s tax-cutting plans. Holding corporate hybrids (securities blending debt and equity) was also helpful as global growthmomentum continued to build.

OutlookDespite recent weakness in the market, valuations for corporate bonds remain rich. We remain cautious on the outlook, with the risk thatincreased volatility could lead to excess returns for corporate bonds falling relative to government bonds. Moreover, the “reach for yield”environment has seen increased issuance of riskier credit, such as covenant-lite bonds and leveraged loans. While these segments of the marketdo not currently pose a significant risk to the broader credit market, they do increase the vulnerability to future shocks. While we are cognisantof rich valuations, we are optimistic that the strong performance of the global economy will allow corporate bonds to generate excess returns,at least over the short term.






RBS Investment Funds ICVC - Royal Bank of Scotland Extra Income FundComparative table





28/02/2018pence

per share

28/02/2017pence

per share

28/02/2016pence

per share



Performance†




110.011.71

(1.17)0.54

(2.45)–

108.100.00

0.49%

81,927,651 75,789,165

1.05%0.00%

113.0108.1

102.7111.50 (1.14)10.36 (3.06)

–

110.010.00

10.09%

86,328,424 78,472,607

1.04%0.00%

116.3103.2

108.31(1.14)(1.10)(2.24)(3.36)

–

102.710.00

(2.07)%

84,626,75082,396,468

1.04%0.00%

110.6103.1


RBS Investment Funds ICVC - Royal Bank of Scotland Extra Income FundStatistics



This Sub-fund is ranked at 4 because funds of this type have experienced average rises and falls in value in the past. The risk and rewardcategory for this Sub-fund is not guaranteed to remain unchanged, and may shift over time.



Lower risk


Higher risk


1 2 3 4 5 6 7


RBS Investment Funds ICVC - Royal Bank of Scotland Extra Income FundPortfolio Statementas at 28 February 2018 (28 February 2017)


UK Government Stocks† 15.64% (14.51%)UK Treasury 2% 07/9/2025 £3,800,000 3,982,438 4.86UK Treasury 3.5% 22/1/2045 £696,000 921,560 1.13UK Treasury 4% 07/3/2022 £2,300,000 2,575,977 3.14UK Treasury 4.25% 07/6/2032 £180,000 235,800 0.29UK Treasury 4.25% 07/3/2036 £363,267 495,122 0.60UK Treasury 4.75% 07/12/2038 £900,000 1,338,795 1.63UK Treasury 5% 07/3/2025 £2,190,000 2,734,434 3.34UK Treasury 6% 07/12/2028 £370,000 531,716 0.65

Sterling Denominated Corporate Bonds 78.45% (82.36%)AA Bond 6.269% 02/7/2043 £1,115,000 1,204,853 1.47ABN AMRO 1% 16/4/2025 £700,000 693,371 0.85America Movil 4.375% 07/8/2041 £500,000 587,702 0.72Anheuser-Busch InBev 2.85% 25/5/2037 £487,000 469,249 0.57Annington Funding 2.646% 12/7/2025 £479,000 473,463 0.58Annington Funding 3.935% 12/7/2047 £600,000 627,378 0.77AT&T 4.25% 01/6/2043 £900,000 959,860 1.17AT&T 4.375% 14/9/2029 £799,000 880,130 1.07Aviva 6.875% 20/5/2058 £820,000 1,089,788 1.33AXA 5.625% FRN 16/1/2054 £850,000 983,543 1.20Bank Nederlandse Gemeenten 1% 17/6/2022 £1,000,000 985,410 1.20Bank of America 7% 31/7/2028 £900,000 1,255,975 1.53Bank of America 7.75% 30/4/2018 £850,000 859,682 1.05Barclays 3.25% 12/2/2027 £916,000 923,759 1.13Barclays 4.25% 12/1/2022 £500,000 553,295 0.67Barclays 10% 21/5/2021 £1,000,000 1,227,354 1.50Barclays 14% Perpetual £200,000 228,724 0.28BAT International Finance 2.25% 09/9/2052 £432,000 339,297 0.41Broadgate Financing 4.999% 05/10/2033 £700,000 838,546 1.02Canary Wharf Finance II 6.455% 22/10/2033 £303,209 381,810 0.47Cattles 6.875% 17/1/2014* £1,300,000 – 0.00Channel Link Enterprises Finance 3.043% 30/6/2050 £312,000 306,237 0.37Citigroup 4.5% 03/3/2031 £1,000,000 1,115,856 1.36Credit Suisse 2.125% 12/9/2025 £417,000 406,475 0.50DS Smith 2.875% 26/7/2029 £600,000 578,328 0.71E.ON International Finance 6.375% 07/6/2032 £500,000 685,690 0.84Électricité de France 6.125% 02/6/2034 £1,300,000 1,726,765 2.11European Investment Bank 5% 15/4/2039 £1,200,000 1,791,619 2.19European Investment Bank 5.375% 07/6/2021 £1,200,000 1,363,620 1.66Eversholt Funding 6.697% 22/2/2035 £712,000 927,204 1.13FirstGroup 8.75% 08/4/2021 £870,000 1,042,977 1.27

Sterling Denominated Corporate Bonds (continued)Gatwick Funding 2.625% 07/10/2048 £784,000 681,045 0.83Gatwick Funding 5.25% 23/1/2026 £774,000 891,542 1.09GE Capital Funding 8% 14/1/2039 £100,000 166,441 0.20GE Capital UK Funding 5.875% 18/1/2033 £100,000 130,107 0.16GlaxoSmithKline Capital 4.25% 18/12/2045 £750,000 935,024 1.14Goodman Australia Finance 9.75% 16/7/2018 £1,000,000 1,032,510 1.26Great Rolling Stock 6.5% 05/4/2031 £527,800 663,983 0.81Greene King Finance 5.702% 15/12/2034 £1,100,000 1,035,833 1.26Heathrow Funding 7.125% 14/2/2024 £1,200,000 1,476,125 1.80HSBC 6.75% 11/9/2028 £750,000 978,573 1.19Imperial Brands Finance 9% 17/2/2022 £1,400,000 1,770,914 2.16ING Bank 6.875% FRN 29/5/2023 £850,000 861,059 1.05Innogy Finance 5.5% 06/7/2022 £300,000 345,915 0.42Investec Bank 9.625% 17/2/2022 £700,000 859,288 1.05JPMorgan Chase 1.875% 10/2/2020 £900,000 911,992 1.11Juturna Euro Loan 5.0636% 10/8/2033 £606,901 725,938 0.89KfW 6% 07/12/2028 £600,000 841,404 1.03Legal & General 10% 23/7/2041 £800,000 998,840 1.22Lloyds Bank 2.25% 16/10/2024 £557,000 548,227 0.67Lloyds Bank 5.125% 07/3/2025 £500,000 606,414 0.74Lloyds Bank 7.625% 22/4/2025 £900,000 1,173,996 1.43Lloyds Bank 9.625% 06/4/2023 £600,000 794,650 0.97Meadowhall Finance 4.988% 12/7/2037 £722,454 867,434 1.06Mitchells & Butlers Finance 6.469% 15/9/2032 £900,000 1,053,196 1.29National Grid Gas Finance 2.125% 22/9/2028 £300,000 283,893 0.35Network Rail 4.75% 29/11/2035 £700,000 971,000 1.19NGG Finance 5.625% FRN 18/6/2073 £350,000 393,164 0.48Notting Hill Housing Trust 3.75% 20/12/2032 £620,000 671,029 0.82Orange 5.375% 22/11/2050 £600,000 830,050 1.01Prudential 11.375% FRN 29/5/2039 £900,000 1,007,341 1.23RAC 4.565% 06/5/2046 £800,000 831,912 1.01RCI Banque 3.25% 25/4/2018 £900,000 903,537 1.10RELX 2.75% 01/8/2019 £1,000,000 1,016,289 1.24Santander UK 5.125% 14/4/2021 £800,000 891,708 1.09Segro 2.375% 11/10/2029 £835,000 804,648 0.98Southern Gas Networks 2.5% 03/2/2025 £800,000 807,370 0.99Standard Chartered 4.375% 18/1/2038 £700,000 774,787 0.95Telefónica Emisiones 5.445% 08/10/2029 £750,000 915,850 1.12Tesco Property Finance 6 5.4111% 13/7/2044 £909,668 1,012,251 1.24Thames Water Utilities Cayman Finance 2.875% 03/5/2027 £600,000 576,828 0.70Thames Water Utilities Cayman Finance 7.738% 09/4/2058 £258,000 507,780 0.62Unite Usaf II 3.921% 30/6/2030 £470,000 518,551 0.63


RBS Investment Funds ICVC - Royal Bank of Scotland Extra Income FundPortfolio Statement(continued)


Sterling Denominated Corporate Bonds (continued)Verizon Communications 3.375% 27/10/2036 £719,000 697,265 0.85Verizon Communications 4.073% 18/6/2024 £423,000 466,092 0.57Wellcome Trust 2.517% 07/2/2118 £510,000 496,001 0.61Wells Fargo 2% 28/7/2025 £615,000 598,598 0.73Western Power Distribution 5.75% 16/4/2032 £900,000 1,176,456 1.44White City Property Finance 5.1202% 17/4/2035 £1,034,536 1,260,046 1.54







†Related party investment. *This security is suspended and has been priced at £nil.


RBS Investment Funds ICVC - Royal Bank of Scotland Extra Income FundPortfolio Statement(continued)



RBS Investment Funds ICVC - Royal Bank of Scotland Extra Income Fund




Notes

28/02/2018 £ £

28/02/2017 £ £

IncomeNet capital (losses)/gainsRevenue


2346

5

7

(1,421,649) 2,789,745 (896,701) (5,437) 1,887,607 — 1,887,607

465,958 (1,887,607) (1,421,649)

5,965,435 3,384,017 (915,747) (135) 2,468,135 – 2,468,135 8,433,570 (2,468,135)

5,965,435

28/02/2018 £ £

28/02/2017 £ £



Change in net assets attributable to Shareholders from investment activities (see above)Unclaimed distributionsClosing net assets attributable to Shareholders

86,328,424 2,453,250 (5,432,374) (2,979,124)

(1,421,649) –

81,927,651

84,626,750

2,876,784 (7,141,674) (4,264,890)

5,965,435 1,129 86,328,424

Notes

28/02/2018 £ £

28/02/2017 £ £

ASSETSFixed assets





Distribution payableOther creditors


89

1010

77,086,698 1,418,730 4,004,309 5,423,039 82,509,737

(451,694) (130,392) (582,086) (582,086) 81,927,651

83,624,673 1,886,056 1,556,636 3,442,692 87,067,365

(591,311) (147,630) (738,941) (738,941) 86,328,424


RBS Investment Funds ICVC - Royal Bank of Scotland Extra Income Fund




Percentage of (F)ranked/(U)nfranked revenue; F=0%, U=100%










Interest Distribution

Net

Revenue

Equalisation

Amountpayable on

30/04/2018

Amountpaid on

28/04/2017

Group 1

Group 2

0.5960

0.2667

–

0.3293

0.5960

0.5960

0.7121

0.7121


Net

Revenue

Equalisation

Amountpaid on

31/01/2018

Amountpaid on

31/01/2017

Group 1

Group 2

0.5928

0.2644

–

0.3284

0.5928

0.5928

0.5840

0.5840


Net

Revenue

Equalisation

Amountpaid on

31/10/2017

Amountpaid on

31/10/2016

Group 1

Group 2

0.5918

0.2734

–

0.3184

0.5918

0.5918

0.6241

0.6241


Net

Revenue

Equalisation

Amountpaid on

31/07/2017

Amountpaid on

31/07/2016

Group 1

Group 2

0.6646

0.3060

–

0.3586

0.6646

0.6646

0.6741

0.6741

90 RBS Investment Funds ICVC Annual Report & Financial Statements 201890 RBS Investment Funds ICVC Annual Report & Financial Statements 2017

RBS Investment Funds ICVC - Royal Bank of Scotland Extra Income FundNotes to the Financial Statementsfor the year ended 28 February 2018



2 Net capital (losses)/gains

The net capital (losses)/gains on investments during the year comprise: 28/02/2018 28/02/2017 £ £

Non-derivative securities (1,513,952) 6,039,192

Derivative securities 94,812 (71,093)


Net capital (losses)/gains (1,421,649) 5,965,435

3 Revenue

28/02/2018 28/02/2017 £ £



Rebate on ACD’s charge – 817

Returns from bond futures 1,197 (13,736)

Taxable overseas dividends 3,541 4,110

Total revenue 2,789,745 3,384,017


RBS Investment Funds ICVC - Royal Bank of Scotland Extra Income FundNotes to the Financial Statements(continued)

4 Expenses

28/02/2018 28/02/2017 £ £


859,932 879,148



28,002 27,861




8,767 8,738




5 Taxation

28/02/2018 28/02/2017 £ £


Corporation Tax – –

Total tax charge (note 5b) – –



Corporation tax @ 20% 377,521 493,627

Effects of:

Tax deductible interest distributions (377,521) (493,627)

Total tax charge (see note 5a) – –

c) Deferred taxNo deferred tax asset has been recognised in the accounts. The Sub-fund has no excess management expenses (28/02/2017: Nil).




28/02/2018 28/02/2017 £ £

Interest 5,437 135

Total interest 5,437 135

7 Distributions


28/02/2018 28/02/2017 £ £

Income DistributionsInterim distribution 31 May - Income shares 517,802 549,623

Interim distribution 31 August - Income shares 456,597 503,253



Tax deducted on interest distributions* – 380,843

1,880,291 2,457,078



7,316 11,057





*All interest distributions after 6 April 2017 were paid gross.



8 Debtors

28/02/2018 28/02/2017 £ £


Amounts receivable on issue of shares 35,722 8,694

Sales awaiting settlement – 138,264

Total debtors 1,418,730 1,886,056


28/02/2018 28/02/2017 £ £

Cash held at bank 1,804,309 1,256,546

Amounts held in Aviva Investors Sterling Liquidity Fund 2,200,000 300,090


10 Creditors

28/02/2018 28/02/2017 £ £


Income tax – 32,478








a) Interest rate riskThe interest rate risk profile of financial assets and liabilities as at 28 February 2018 was as follows:


Credit quality 28/02/2018 28/02/2017

Investment grade 73,987,879 78,022,315 Below investment grade 2,294,171 2,279,161 Not rated 804,648 3,323,197 77,086,698 83,624,673 A fixed income security is deemed to be of investment grade if it is rated BBB- or above.

b) Foreign currency riskAt the year end date, 28 February 2018, nil% (28/02/2017: nil%) of the Sub-fund’s net asset value was denominated in foreign currencies.

c) Credit riskThe Sub-fund enters into derivative transactions in the form of futures and forward currency contracts. The purpose of these financialinstruments is Efficient Portfolio Management. Futures are used to manage market price risk. Forward currency contracts are used to managecurrency risk arising from holdings of overseas securities. The purpose of undertaking these contracts is to protect the portfolio as far aspossible from a downturn in the markets.

The Sub-fund’s use of exchange traded derivatives are considered to be free of counterparty risk if the derivative is traded on an exchangewhere the clearing house is backed by an appropriate performance guarantee and is characterised by a daily mark-to-market valuation of thederivative position and at least daily margining. For forward foreign currency contracts, given the short maturity of the transactions, the ACDbelieves the robust approval and monitoring procedures in place for the counterparties are sufficient to mitigate the counterparty riskassociated with the contracts.

At 28 February 2018, no derivatives were held by the Sub-fund (28/02/17: nil).

Floating Rate

Investments£

Fixed Rate

Investments£


Investments£

Total£


5,562,459 71,524,239 – 77,086,698– – – —

Floating Rate

Investments£

Fixed Rate

Investments£


Investments£

Total£


8,783,138 74,841,535 – 83,624,673– – – –









Interest rate sensitivityAn increase of 100 basis points (1%) as at the reporting date will cause net capital losses to increase by £6,265,685 and the net asset value todecrease by £6,265,685 (28/02/2017 will cause net capital gains to increase by £6,756,849 and the net asset value to increase by £6,756,849).


Currency sensitivityAt the year end date, 28 February 2018, nil% (28/02/2017: nil%) of the Sub-fund’s net asset value was denominated in foreign currencies,hence no currency sensitivity has been carried out.

Equity market price sensitivityAt the year end date, 28 February 2018, nil% (28/02/2017: nil%) of the Sub-fund’s net asset value was invested in equity shares, hence noequity market sensitivity has been carried out.



£ Liabilities

£


–83,624,673

–83,624,673

––––


£ Liabilities

£


– 77,086,698

–77,086,698

––––





Value Commissions Taxes Purchases (excluding derivatives) £ £ % £ %Debt instruments (direct) 29,436,632 – – – –Total purchases 29,436,632 – –



Sales (excluding derivatives) £ £ % £ %Debt instruments (direct) 33,486,989 – – – –Total sales 33,486,989 – –


Derivative transaction costs 130 –

Total transaction costs 130 –



Value Commissions Taxes Purchases (excluding derivatives) £ £ % £ %Debt instruments (direct) 23,597,784 – – – –Total purchases 23,597,784 – –









For the Sub-fund's investment transactions in debt and money market instruments any applicable transaction charges form part of the dealingspread for these instruments. Transactions in money market instruments to manage the Sub-fund's daily liquidity position are excluded from the analysis.







RBS Collective Investment Funds Limited acts as principal on all the transactions of shares in the Sub-fund. The aggregate monies receivedthrough the creation and cancellation of shares are disclosed in the Statement of change in net assets attributable to Shareholders.

Amounts paid to RBS Collective Investment Funds Limited in respect of the ACD’s, associates and agents periodic fees are disclosed in note 4.The balance outstanding as at the year end was £64,249 (£66,645 as at 28 February 2017).




15 Share movement




Income

shares


78,472,6072,217,781

(4,901,223)75,789,165

Royal Bank of Scotland Growth Fund



RBS Investment Funds ICVC - Royal Bank of Scotland Growth FundFund Reportfor the year ended 28 February 2018

Investment Objective & PolicyTo achieve long term capital appreciation. The Sub-fund will invest principally in UK equities based on price and prospects of above averageearnings growth. The Sub-fund may have a small exposure to international equity and bond markets.


PerformanceThe Sub-fund returned 5.87 per cent (after charges) for the year to the end of February 2018, compared with a return of 4.40 per cent for theFTSE All Share Index and an average return of 6.56 per cent for its peer group, the Investment Association UK All Companies sector*.

Portfolio SummaryThe Sub-fund outperformed the FTSE All Share Index over the reporting year but under-performed its peer group. Overall, stock selection madea positive contribution to performance relative to the Index. Several of our holdings in the industrials sector performed well over the year.Equipment hire group Ashtead, which generates around 90% of its earnings from the US, forecast that the clear up and reconstruction workrequired in the aftermath of last autumn’s hurricane season would boost rental demand for the company’s construction equipment. Flightsupport services group BBA Aviation recently reported a return to profitability in 2017, with a strong rebound in performance in both its flightsupport and aftermarket services businesses. Pest control group Rentokil Initial has been expanding through acquisitions and reported anincrease in free cash flows and a reduction in net debt levels in its recent annual results. Our holding in Worldpay was a key contributor. TheUK’s leading payment processor agreed to a takeover bid from US group Vantiv, which valued Worldpay at over £9 billion. The shift from chequesand cash to digital and card payments, fuelled by the rise of online retailing and contactless payment, has been the key driver behind the growthof the payments business.

Elsewhere, key contributors included Intermediate Capital and Fevertree Drinks. Intermediate Capital, is a specialist investor in alternative assetssuch as real estate and mezzanine capital, a higher risk form of debt. The company announced that it had raised €5.2 billion for its latest debtfund, focusing on the European direct lending market as investment companies have moved into the mid-cap and smaller company lendingspace previously the preserve of the banking sector. The company’s interim results highlighted record inflows as the popularity of alternativeassets continued amongst institutional investors looking for higher yielding assets. Amongst consumer stocks, our holding in premium mixerdrinks company Fevertree Drinks outperformed its sector and the wider market. The company is benefiting from very strong growth in its coremarket of the UK and its expansion into the United States.

The main detractors from performance during the reporting year were holdings in Reckitt Benckiser, Compass and BT. Consumer goods groupReckitt Benckiser cautioned that pricing pressures would continue to impact on profit margins. Last autumn, the company announced plans tosplit into two divisions, one focused on health and the other on home and hygiene products. Despite solid annual results from catering groupCompass, investors were discouraged by a relatively cautious trading outlook as management does not expect to see any revenue growth ormargin improvements until the second half of the 2018 financial year. Our holding in BT underperformed on concerns about the company’spension fund liabilities and the uncertainty that remains around its Openreach business.

Main portfolio adjustmentsAdditions were made to the Sub-fund’s positions in Melrose Industries and Intermediate Capital. Our overweight position in Melrose Industriesis influenced by our trust in their management team’s track record of improving businesses. For Intermediate Capital, we continue to believe inthe success of their building of asset management, their expansion of their product suite, and their switch to asset light model. We believethem to be cash generative, to be de-risking their balance sheet, and growing fixed management fees. We participated in the Cineworld rightsissue relating to their purchase of Regal in the US as we are positive on the potential for a turnaround that Cineworld’s management canimplement at Regal. We also started a position in Ibstock, the largest clay brick and concrete material manufacturer in the UK. We believe intheir accelerating growth in housing base, new facilities coming online, and margin development with better volumes. They have strong freecash flow, robust operational leverage, and declining debt levels. We believe Ibstock operate in an almost oligopolistic market requiring highcapital requirements to enter. We also added to our holdings within financials (Prudential, HSBC and Phoenix) as we seek to benefit from therising rate environment.

We continued to exit our positions in Daily Mail and General Trust and McCarthy & Stone. We believe it to be a tough trading environment forDaily Mail given decelerating advertising spending and competition from social media. We exited our position in Moneysupermarket.com onvaluation grounds. We also reduced our position in Northgate (the UK's largest commercial vehicle rental provider) as we have concerns overthe competitive 2-3 years lease length space they’re trying to enter.


RBS Investment Funds ICVC - Royal Bank of Scotland Growth FundFund Report(continued)

OutlookThe UK’s prospects over the next few years are deeply coloured by Brexit and the deal that is struck with the EU. The spectre of a “cliff edge”departure from the EU in March 2019 remains a possibility despite the indisputable fact that it is in both parties’ interests to reach a compromise.Our central view is that a deal will be reached, but it would be wrong to disregard the downside scenario. The main initial adverse macro-economic consequence of a “no deal” outcome would be the disruption to trade as we revert to World Trade Organisation (WTO) rules andregulations. Overall, for 2018 we expect UK economic growth to remain relatively modest, while inflation should fall meaningfully and interestrates will not need to move much higher at this stage. Looking at the prospects for UK equities, it is significant that the market includes a broadspread of world-leading global companies whose earnings prospects in many cases are largely detached from the domestic economy. In viewof positive global economic data, encouraging earnings momentum and broadly supportive historic and relative valuations, we believe UKequities can make further progress.






RBS Investment Funds ICVC - Royal Bank of Scotland Growth FundComparative table





28/02/2018pence

per share

28/02/2017pence

per share

28/02/2016pence

per share



Performance†




374.5627.08 (5.10)21.98 (7.72)

7.72

396.54(0.40)

5.87%

236,032,199 59,523,194

1.28%0.10%

419.1376.8

318.7660.20 (4.40)55.80 (8.23)

8.23

374.56(0.40)

17.51%

237,159,421 63,316,940

1.28%0.12%

375.4308.6

322.130.76

(4.13)(3.37)(6.26)

6.26

318.76(0.47)

(1.05)%

203,526,08463,849,040

1.28%0.15%

340.1294.6


RBS Investment Funds ICVC - Royal Bank of Scotland Growth FundStatistics






Lower risk


Higher risk


1 2 3 4 5 6 7


RBS Investment Funds ICVC - Royal Bank of Scotland Growth FundPortfolio Statementas at 28 February 2018 (28 February 2017)



Apparel Retailers 0.00% (0.55%)

Asset Managers 2.78% (2.51%)Rathbone Brothers 155,335 4,122,591 1.75Schroders 70,613 2,439,679 1.03

Automobiles 2.04% (0.00%)GKN 1,111,365 4,824,435 2.04

Banks 3.83% (3.58%)HSBC 1,254,733 9,047,880 3.83

Broadcasting & Entertainment 2.73% (3.68%)ITV 2,083,537 3,347,202 1.42Sky 232,546 3,094,025 1.31

Building Materials & Fixtures 2.27% (0.99%)Ibstock 988,670 2,602,179 1.10Volution 1,337,902 2,769,457 1.17

Business Support Services 5.08% (5.95%)Ashtead 338,465 7,111,150 3.01Northgate 31,755 104,029 0.04Rentokil Initial 1,647,596 4,789,562 2.03


Containers & Packaging 2.17% (2.31%)DS Smith 1,065,717 5,123,967 2.17

Fixed Line Telecommunications 1.88% (2.54%)BT 1,829,454 4,445,573 1.88

Food Products 3.91% (4.32%)Unilever 246,329 9,233,643 3.91

General Mining 7.50% (3.26%)BHP Billiton 456,759 6,804,796 2.88Rio Tinto 276,914 10,893,797 4.62

Home Construction 0.00% (0.63%)

Industrial Machinery 2.64% (1.73%)Melrose Industries 2,756,703 6,235,662 2.64


Integrated Oil & Gas 4.91% (6.85%)Royal Dutch Shell 'B' (UK Regd.) 498,641 11,593,403 4.91

Investment Services 4.15% (5.16%)BCA Marketplace 1,931,339 3,240,787 1.37Close Brothers 214,193 3,390,675 1.44Tritax Big Box Reit 2,243,006 3,167,124 1.34

Life Insurance 7.60% (5.80%)Aviva 779,892 3,936,895 1.67Legal & General 1,369,401 3,619,327 1.53Phoenix 137,469 1,083,256 0.46Prudential 504,231 9,300,541 3.94

Media Agencies 0.00% (0.91%)

Medical Equipment 1.98% (2.55%)Smith & Nephew 365,013 4,668,516 1.98

Mobile Telecommunications 2.80% (2.95%)Vodafone 3,246,759 6,613,648 2.80

Multiutilities 1.00% (1.41%)National Grid 314,458 2,356,863 1.00

Nondurable Household Products 2.79% (3.97%)Reckitt Benckiser 113,830 6,588,480 2.79

Pharmaceuticals 1.98% (3.22%)GlaxoSmithKline 355,499 4,661,303 1.98

Publishing 4.39% (4.70%)Informa 349,128 2,414,569 1.02RELX 534,044 7,949,245 3.37

Recreational Services 2.96% (1.18%)Carnival 95,586 4,590,996 1.95Cineworld 999,260 2,374,242 1.01

Reinsurance 1.50% (0.00%)Hiscox 253,674 3,546,363 1.50


RBS Investment Funds ICVC - Royal Bank of Scotland Growth FundPortfolio Statement(continued)



Soft Drinks 1.00% (0.91%)Fevertree Drinks 93,096 2,349,743 1.00

Software 5.00% (3.95%)Alfa Financial Software 368,828 1,687,388 0.72Sage 1,454,769 10,110,645 4.28

Speciality Chemicals 0.00% (1.18%)

Speciality Finance 5.32% (3.13%)Intermediate Capital 902,042 9,588,706 4.06Sherborne Investors B 1,845,907 424,559 0.18Sherborne Investors C 2,416,810 2,537,650 1.08

Tobacco 3.84% (5.34%)British American Tobacco 207,733 9,058,197 3.84

Transportation Services 4.15% (3.90%)BBA Aviation 2,824,035 9,782,457 4.15

Travel & Tourism 0.88% (0.97%)Merlin Entertainments 607,113 2,068,434 0.88







RBS Investment Funds ICVC - Royal Bank of Scotland Growth FundPortfolio Statement(continued)



RBS Investment Funds ICVC - Royal Bank of Scotland Growth Fund




Notes

28/02/2018 £ £

28/02/2017 £ £



2346

5

7

9,171,736 7,913,125 (3,117,167) – 4,795,958 – 4,795,958

13,967,694 (4,795,958)

9,171,736

30,738,873 8,268,520 (2,840,535) – 5,427,985 (2,971) 5,425,014 36,163,887 (5,430,895)

30,732,992

Notes

28/02/2018 £ £

28/02/2017 £ £



Dilution adjustmentChange in net assets attributable to Shareholders from investment activities (see above)Retained distributions on accumulation shares 7Closing net assets attributable to Shareholders

237,159,421

1,764,937 (16,661,031) (14,896,094) – 9,171,736 4,597,136 236,032,199

203,526,084

16,250,986 (18,707,395) (2,456,409) 145,566

30,732,992 5,211,188 237,159,421

Notes

28/02/2018 £ £

28/02/2017 £ £

ASSETSFixed assets





Other creditors Total other liabilitiesTotal liabilitiesNet assets attributable to Shareholders

89

10

229,726,805 1,572,829 6,093,645 7,666,474 237,393,279

(1,361,080) (1,361,080) (1,361,080) 236,032,199

231,125,377 1,226,150 5,347,391 6,573,541 237,698,918 (539,497) (539,497) (539,497) 237,159,421


RBS Investment Funds ICVC - Royal Bank of Scotland Growth Fund


Final Distribution for Accumulation Shares

(in pence per share)

Group 1: Shares purchased prior to 1 March 2017Group 2: Shares purchased from 1 March 2017 to 28 February 2018



Net

Revenue

Equalisation

Amountpayable on

30/04/2018

Amountpaid on

28/04/2017

Group 1

Group 2

7.7233

2.6749

–

5.0484

7.7233

7.7233

8.2303

8.2303


RBS Investment Funds ICVC - Royal Bank of Scotland Growth FundNotes to the Financial Statementsfor the year ended 28 February 2018



2 Net capital gains


Non-derivative securities 9,176,815 30,750,245

Currency exchange – (5,230)


Net capital gains 9,171,736 30,738,873

3 Revenue

28/02/2018 28/02/2017 £ £


Rebate on ACD’s charge – 2,207


UK dividends 7,812,050 8,071,422

UK REIT PID dividends 70,719 –

Underwriting commission 1,095 14,956

Total revenue 7,913,125 8,268,520


RBS Investment Funds ICVC - Royal Bank of Scotland Growth FundNotes to the Financial Statements(continued)

4 Expenses

28/02/2018 28/02/2017 £ £

Payable to the ACD or Associate of the ACD:ACD’s periodic charge 3,057,563 2,785,753

3,057,563 2,785,753



49,308 42,987


Printing costs 1,733 5,881


10,296 11,795

Total expenses 3,117,167 2,840,535

The Audit fee for the year, excluding VAT, was £6,000 (2017 – £6,000).



5 Taxation

28/02/2018 28/02/2017 £ £


Overseas tax withheld – 2,971

Total tax charge (note 5b) – 2,971



Corporation tax @ 20% 959,192 1,085,597

Effects of:

Dividends not subject to corporation tax (1,555,208) (1,631,065)


Overseas tax withheld – 2,971

Total tax charge (see note 5a) – 2,971

c) Deferred taxAfter claiming relief against accrued revenue taxable on receipt, the Sub-fund has unrelieved excess expenses of £40,305,064 (28/02/2017: £37,324,983). These unrelieved excess management fees represent an unrecognised deferred tax asset of £8,061,013 (28/02/2017: £7,464,997). It is unlikely that the Sub-fund will generate sufficient taxable profits in the future to utilise these expenses and thereforeno deferred tax asset has been recognised (28/02/2017: £nil).




28/02/2018 28/02/2017 £ £

Interest – –

Total interest – –

7 Distributions


28/02/2018 28/02/2017 £ £

Accumulation DistributionsFinal distribution 28 February - Accumulation shares 4,597,136 5,211,188

4,597,136 5,211,188



198,822 219,707




Accounts printing and postage taken to capital – 5,881




8 Debtors

28/02/2018 28/02/2017 £ £

Accrued revenue 754,613 1,062,279

Prepaid expenses 565 –


Total debtors 1,572,829 1,226,150


28/02/2018 28/02/2017 £ £

Cash held at bank 4,993,467 4,747,213

Amounts held in Aviva Investors Liquidity Fund 1,100,178 600,178


10 Creditors

28/02/2018 28/02/2017 £ £

Other creditorsAccrued expenses 255,099 228,834


Purchases awaiting settlement 882,199 159,016

Total other creditors 1,361,080 539,497


a) Interest rate riskAt the year end date, 28 February 2018, 2.12% (28/02/2017: 2.00%) of the Sub-fund’s net asset value was interest bearing. Further disclosurewould be required if the exposure of the Sub-fund was deemed significant.

b) Currency exposure riskAt the year end date, 28 February 2018, 0.09% (28/02/2017: 0.14%) of the Sub-fund’s net asset value was denominated in foreign currencies.

c) Derivatives risk and Efficient Portfolio ManagementThe Sub-fund did not enter into any derivative transactions during the year.









Interest rate sensitivity

At the year end date, 28 February 2018, 2.12% (28/02/2017: 2.00%) of the Sub-fund’s net asset value was interest bearing, hence no interestsensitivity has been carried out.

Currency sensitivityAt the year end date, 28 February 2018, 0.09% (28/02/2017: 0.14%) of the Sub-fund’s net asset value was denominated in foreign currencies,hence no currency sensitivity has been carried out.




28/02/2018

£ 28/02/2017

£



£ Liabilities

£


229,726,805 ––

229,726,805

––––


£ Liabilities

£


231,125,377––

231,125,377

––––






Purchases (excluding derivatives) £ £ % £ %Equity instruments (direct) 44,726,419 24,359 0.05 187,406 0.42Collective investment schemes 50,100,178 – – – –Total purchases 94,826,597 24,359 187,406



Sales (excluding derivatives) £ £ % £ %Equity instruments (direct) 53,610,546 34,723 0.06 137 0.00Collective investment schemes 49,600,000 – – – – Total sales 103,210,546 34,723 137









Purchases (excluding derivatives) £ £ % £ %Equity instruments (direct) 40,861,169 29,603 0.07 201,207 0.49 Total purchases 40,861,169 29,603 201,207



Sales (excluding derivatives) £ £ % £ %Equity instruments (direct) 33,557,123 34,205 0.10 121 – Total sales 33,557,123 34,205 121




The above analysis covers any direct transaction costs suffered by the Sub-fund during the year. However it is important to understand the natureof other transaction costs associated with different investment asset classes and instruments types.Separately identifiable direct transaction costs (commissions and taxes etc.) are attributable to the Sub-fund's purchase and sale of equity shares.Additionally for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be suffered onpurchase and sale transactions.

For the Sub-fund's investment in collective investment scheme holdings there will potentially be dealing spread costs applicable to purchasesand sales. However additionally there are indirect transaction costs suffered in those underlying funds, throughout the holding period for theinstruments, which are not separately identifiable and do not form part of the analysis above.







As at the balance sheet date there were no related party investments.



15 Share movement




Accumulation

shares


63,316,940451,079

(4,244,825)59,523,194

Royal Bank of Scotland High Yield Fund



RBS Investment Funds ICVC - Royal Bank of Scotland High Yield FundFund Reportfor the year ended 28 February 2018

Investment Objective & PolicyTo provide a high level of income. The Sub-fund will invest in a portfolio of fixed interest securities, principally in securities issued by corporatesand supranationals, preference shares and convertibles. The Sub-fund will not be restricted to any particular geographic regions.


PerformanceThe Sub-fund returned 1.38 per cent (after charges) in the 12 months to 28 February 2018, compared with a net return of 2.35 per cent forits peer group, the Investment Association £ Strategic Bond sector.

Portfolio SummaryDuring the period, the challenge was to maintain a stable and predictable income in the face of generally expensive corporate bond valuations.We continued to believe that there was little compensation for adding credit risk into the Sub-fund. We therefore focused on ensuring theSub-fund had enough yield without significantly increasing the levels of risk. The Sub-fund underperformed its peer group as, unlike many ofits competitor Funds, it has a restriction on the amount of high-yield bonds it can hold. These outperformed over the period. One area ofweakness for the Sub-fund was holding companies exposed to a less confident UK consumer. The biggest disappointment was the fashionretailer New Look. Although the company’s debt offered good value, its trading deteriorated steadily over the period as heavy discountingtook its toll. Owning bonds of the owner of Odeon Cinemas, AMC Entertainment, also detracted as the summer box-office season failed tomeet expectations. Among the positions that added value was insurance group RSA, which tendered a bond. RSA was part of our long-term,conviction-led theme of holding financial sector bonds that were issued at favourable yields during the financial crisis. Supermarket Tesco’ssimilar decision to buy back bonds also boosted performance. Credits issued by European companies were helpful as Eurozone economicgrowth surpassed most forecasts. Among the most notable beneficiaries of the improving outlook were banks and insurers and the Sub-fundprofited from having overweight exposure to both sectors. Later in the period, we became less risk-averse as global growth accelerated andthe UK economy steadied after its early-year slowdown. As risk appetite recovered, holdings of international companies started to add value.These included long-dated bonds of US companies, which were seen as key beneficiaries of President Trump’s tax-cutting plans. Holdingcorporate hybrids (securities blending debt and equity) was also helpful as the global growth momentum continued to build.

OutlookDespite recent weakness in the market, valuations for corporate bonds remain rich. We remain cautious on the outlook, with the risk thatincreased volatility could lead to excess returns for corporate bonds falling relative to government bonds. Moreover, the “reach for yield”environment has seen increased issuance of riskier credit, such as covenant-lite bonds and leveraged loans. While these segments of themarket do not currently pose a significant risk to the broader credit market, they do increase the vulnerability to future shocks. While we arecognisant of rich valuations, we are optimistic that the strong performance of the global economy will allow corporate bonds to generateexcess returns, at least over the short term.

Source: Lipper, a Thomson Reuters Company; Basis: Total return, net of fees & net income re-invested.

Important information:Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as at 16/03/2018. Unless statedotherwise any views and opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investmentmanaged by Aviva Investors nor as advice of any nature. .


Issued by Aviva Investors Global Services Limited, the Investment Manager to the Fund registered in England No. 1151805. Registered Office: St. Helens, 1 Undershaft, London EC3P 3DQ.


RBS Investment Funds ICVC - Royal Bank of Scotland High Yield FundComparative table





28/02/2018pence

per share

28/02/2017pence

per share

28/02/2016pence

per share



Performance†




127.853.29

(1.35)1.94

(3.75)–

126.040.00

1.52%

86,540,595 68,662,958

1.04%0.00%

131.3126.6

118.1315.42 (1.33)14.09 (4.37)

–

127.850.00

11.93%

93,836,204 73,395,362

1.05%0.00%

134.1118.8

125.39(1.57)(1.28)(2.85)(4.41)

–

118.130.00

(2.27)%

91,164,82377,172,893

1.04%0.00%

127.6118.7


RBS Investment Funds ICVC - Royal Bank of Scotland High Yield FundStatistics



This Sub-fund is ranked at 3 because funds of this type have experienced low to medium rises and falls in value in the past. The risk and rewardcategory for this Sub-fund is not guaranteed to remain unchanged, and may shift over time.


More information on the Synthetic Risk and Reward Indicator is contained in the Risk and Reward Profile of the Key Investor InformationDocument (KIID), which is available from the ACD on request. Full information on the risks applicable to the Sub-fund is detailed in the Prospectus.

Lower risk


Higher risk


1 2 3 4 5 6 7


RBS Investment Funds ICVC - Royal Bank of Scotland High Yield FundPortfolio Statementas at 28 February 2018 (28 February 2017)


UK Government Stocks† 10.50% (8.40%)UK Treasury 4.25% 07/6/2032 £2,600,000 3,406,000 3.94UK Treasury 4.5% 07/12/2042 £1,300,000 1,953,822 2.26UK Treasury 4.75% 07/12/2038 £650,000 966,908 1.12UK Treasury 5% 07/3/2025 £2,000,000 2,497,200 2.89UK Treasury 6% 07/12/2028 £175,000 251,487 0.29

Sterling Denominated Corporate Bonds 75.27% (75.05%)AA Bond 5.5% 31/7/2043 £850,000 753,228 0.87America Movil 4.375% 07/8/2041 £700,000 822,783 0.95Anheuser-Busch InBev 2.85% 25/5/2037 £542,000 522,244 0.60Annington Funding 2.646% 12/7/2025 £769,000 760,110 0.88Anglian Water Osprey Financing 4% 08/3/2026 £885,000 850,724 0.98AT&T 4.25% 01/6/2043 £1,200,000 1,279,813 1.48AT&T 4.375% 14/9/2029 £899,000 990,284 1.14Aviva 5.9021% Perpetual £800,000 851,400 0.98Aviva 6.875% 20/5/2058 £1,100,000 1,461,910 1.69AXA 5.625% FRN 16/1/2054 £800,000 925,688 1.07Bank of America 7.75% 30/4/2018 £750,000 758,543 0.88Barclays 10% 21/5/2021 £1,357,000 1,665,519 1.92Barclays 14% Perpetual £700,000 800,534 0.93BAT International Finance 6% 24/11/2034 £300,000 404,551 0.47Broadgate Financing 4.999% 05/10/2033 £700,000 838,546 0.97Canary Wharf Finance II 6.455% 22/10/2033 £349,857 440,550 0.51Cattles 6.875% 17/1/2014* £1,300,000 – –Citigroup 4.5% 03/3/2031 £1,200,000 1,339,026 1.55Credit Suisse 2.125% 12/9/2025 £443,000 431,819 0.50Debenhams 5.25% 15/7/2021 £290,000 268,372 0.31DS Smith 2.875% 26/7/2029 £650,000 626,522 0.72Eastern Power Networks 4.75% 30/9/2021 £1,000,000 1,106,901 1.28Électricité de France 6.125% 02/6/2034 £1,300,000 1,726,765 2.00Enel 6.625% FRN 15/9/2076 £900,000 1,022,769 1.18Enel Finance International 5.75% 14/9/2040 £400,000 537,872 0.62E.ON International Finance 6.375% 07/6/2032 £450,000 617,121 0.71European Investment Bank 1.5% 01/2/2019 £1,700,000 1,712,954 1.98European Investment Bank 5% 15/4/2039 £1,000,000 1,493,016 1.73Eversholt Funding 6.697% 22/2/2035 £712,000 927,204 1.07FirstGroup 6.125% 18/1/2019 £1,100,000 1,144,935 1.32Gatwick Funding 5.25% 23/1/2026 £900,000 1,036,677 1.20GE Capital UK Funding 8% 14/1/2039 £100,000 166,441 0.19GE Capital UK Funding 5.875% 18/1/2033 £200,000 260,215 0.30GlaxoSmithKline Capital 4.25% 18/12/2045 £600,000 748,019 0.86Great Rolling Stock 6.5% 05/4/2031 £773,500 973,078 1.12Greene King Finance 5.702% 15/12/2034 £1,200,000 1,130,000 1.31Heathrow Finance 3.875% 01/3/2027 £1,000,000 972,410 1.12Heathrow Funding 7.125% 14/2/2024 £1,100,000 1,353,113 1.56HSBC 6.75% 11/9/2028 £750,000 978,572 1.13Imperial Brands Finance 9% 17/2/2022 £1,250,000 1,581,173 1.83ING Bank 6.875% FRN 29/5/2023 £700,000 709,107 0.82


Sterling Denominated Corporate Bonds (continued)Innogy Finance 5.5% 06/7/2022 £300,000 345,915 0.40Jaguar Land Rover Automotive 5% 15/2/2022 £1,000,000 1,071,910 1.24JPMorgan Chase 1.875% 10/2/2020 £634,000 642,448 0.74Juturna Euro Loan 5.0636% 10/8/2033 £754,291 902,237 1.04Kelda Finance 3 5.75% 17/2/2020 £700,000 740,131 0.86KPN 6.875% 14/3/2073 £650,000 702,371 0.81Legal & General 10% 23/7/2041 £1,100,000 1,373,405 1.59Lloyds Banking 2.25% 16/10/2024 £557,000 548,227 0.63Meadowhall Finance 4.988% 12/7/2037 £1,094,739 1,314,428 1.52Mitchells & Butlers Finance 6.469% 15/9/2032 £1,000,000 1,170,218 1.35National Grid Gas Finance 2.125% 22/9/2028 £350,000 331,209 0.38New Look 6.5% 01/7/2022 £1,253,000 615,499 0.71Orange 5.875% FRN Perpetual £446,000 493,109 0.57Prudential 11.375% FRN 29/5/2039 £980,000 1,096,882 1.27RCI Banque 3.25% 25/4/2018 £800,000 803,144 0.93RELX 2.75% 01/8/2019 £1,100,000 1,117,918 1.29Saga 3.375% 12/5/2024 £500,000 471,135 0.54Segro 2.875% 11/10/2037 £900,000 872,334 1.01Southern Gas Networks 2.5% 03/2/2025 £1,000,000 1,009,213 1.17Spirit Issuer 5.472% 28/12/2028 £1,000,000 1,049,122 1.21Standard Chartered 4.375% 18/1/2038 £900,000 996,155 1.15Telefonica Europe 6.75% Perpetual £900,000 992,088 1.15Telecom Italia 5.875% 19/5/2023 £1,100,000 1,254,781 1.45Tesco Property Finance 6 5.4111% 13/7/2044 £973,949 1,083,781 1.25THPA Finance 8.241% 15/3/2028 £922,000 1,020,811 1.18Travis Perkins 4.375% 15/9/2021 £400,000 416,616 0.48Unite Usaf II 3.921% 30/6/2030 £196,000 216,247 0.25Varsity Funding 8.7915% 24/7/2026 £224,035 232,996 0.27Veolia Environnement 6.125% 29/10/2037 £250,000 355,881 0.41Verizon Communications 3.375% 27/10/2036 £791,000 767,088 0.89Virgin Media Secured Finance 5% 15/4/2027 £1,100,000 1,100,792 1.27Wells Fargo 3.5% 12/9/2029 £800,000 864,407 1.00Western Power Distribution 5.75% 16/4/2032 £1,200,000 1,568,607 1.81William Hill 4.25% 05/6/2020 £608,000 625,693 0.72

Non-Sterling Denominated Corporate Bonds 9.59% (11.37%)Adient Global 3.5% 15/8/2024 EUR 489,000 442,159 0.51Altice 7.25% 15/5/2022 EUR 600,000 510,122 0.59Bank of America 2.881% 24/4/2023 USD 1,200,000 851,101 0.98Citigroup 2.9% 08/12/2021 USD 1,200,000 856,289 0.99Diamond 1 Finance 5.875% 15/6/2021 USD 679,000 502,750 0.58ERC Ireland Finance 5.349% FRN 15/8/2016* EUR 600,000 – –Fiat Chrysler Finance Europe 4.75% 15/7/2022 EUR 800,000 794,071 0.92Goldman Sachs 3% 26/4/2022 USD 1,400,000 996,421 1.15Hellas Telecommunications II 0% FRN 15/1/2015* EUR 1,200,000 – –HSBC 3.262% 13/3/2023 USD 1,200,000 861,534 1.00JPMorgan Chase 4.25% 15/10/2020 USD 1,100,000 821,684 0.95

RBS Investment Funds ICVC - Royal Bank of Scotland High Yield FundPortfolio Statement(continued)



Non-Sterling Denominated Corporate Bonds (continued)Telecom Italia 2.375% 12/10/2027 EUR 585,000 509,255 0.59Unitymedia Hessen 4.625% 15/2/2026 EUR 1,191,000 1,148,868 1.33Waterford Wedgwood 9.875% 01/12/2010* EUR 1,179,000 – –

Irish Equities 0.19% (0.18%)Independent News & Media 1,765,904 163,654 0.19

Derivatives 0.23% (0.02%)

Futures 0.02% ((0.01%))Euro-bund Future March 2018 (4) 13,095 0.02Long Gilt Future Expiry June 2018 (2) 923 0.00

EUR Forward Currency Contracts (0.02%) (0.00%)Forward Currency Contracts 15/3/2018 EUR 2,800,000 2,472,351 2.86Forward Currency Contracts 15/3/2018 £(2,481,340) (2,481,340) (2.87)Forward Currency Contracts 15/3/2018 EUR 87,800 77,526 0.09Forward Currency Contracts 15/3/2018 £ (77,808) (77,808) (0.09)Forward Currency Contracts 15/3/2018 EUR (7,290,000) (6,436,943) (7.44)Forward Currency Contracts 15/3/2018 £6,433,243 6,433,243 7.43

US Forward Currency Contracts 0.23% (0.03%)Forward Currency Contracts 15/3/2018 USD (8,060,000) (5,801,673) (6.70)Forward Currency Contracts 15/3/2018 £5,999,315 5,999,315 6.93







†Related party investment.*This security is suspended and therefore priced at the ACD's fair valuation.

RBS Investment Funds ICVC - Royal Bank of Scotland High Yield FundPortfolio Statement(continued)



RBS Investment Funds ICVC - Royal Bank of Scotland High Yield Fund




Notes

28/02/2018 £ £

28/02/2017 £ £

IncomeNet capital (losses)/gainsRevenue


2346

5

7

(1,197,342) 3,610,336 (955,421) (2,584) 2,652,331 – 2,652,331

1,454,989 (2,652,331) (1,197,342)

7,430,211 4,272,850 (991,476) (1,116) 3,280,258 1,089 3,281,347 10,711,558 (3,281,347)

7,430,211

28/02/2018 £ £

28/02/2017 £ £


Amounts received on issue of sharesAmounts paid on cancellation of shares Dilution adjustment Change in net assets attributable to Shareholders from investment activities (see above)Unclaimed distributionsClosing net assets attributable to Shareholders

93,836,204

2,012,183 (8,111,739) (6,099,556) 1,289

(1,197,342) – 86,540,595

91,164,823

2,196,419 (6,957,017) (4,760,598) –

7,430,211 1,768 93,836,204

Notes

28/02/2018 £ £

28/02/2017 £ £

ASSETSFixed assets





Amounts due to futures clearing housesand brokersDistribution payableOther creditors


89

1010

97,687,084 1,450,496 3,014,576 4,465,072 102,152,156

(14,797,764)

(5,000) (605,376) (203,421) (813,797) (15,611,561) 86,540,595

102,681,042 1,814,528 3,954,428 5,768,956 108,449,998

(13,518,786)

– (803,587) (291,421) (1,095,008) (14,613,794) 93,836,204


RBS Investment Funds ICVC - Royal Bank of Scotland High Yield Fund















Net

Revenue

Equalisation

Amountpayable on

30/04/2018

Amountpaid on

28/04/2017

Group 1

Group 2

0.8817

0.3177

–

0.5640

0.8817

0.8817

1.0281

1.0281


Net

Revenue

Equalisation

Amountpaid on

31/01/2018

Amountpaid on

31/01/2017

Group 1

Group 2

0.9347

0.3614

–

0.5733

0.9347

0.9347

0.8685

0.8685


Net

Revenue

Equalisation

Amountpaid on

31/10/2017

Amountpaid on

31/10/2016

Group 1

Group 2

0.9728

0.3489

–

0.6239

0.9728

0.9728

0.8968

0.8968


Net

Revenue

Equalisation

Amountpaid on

31/07/2017

Amountpaid on

31/07/2016

Group 1

Group 2

0.9641

0.3823

–

0.5818

0.9641

0.9641

0.9110

0.9110


RBS Investment Funds ICVC - Royal Bank of Scotland High Yield FundNotes to the Financial Statementsfor the year ended 28 February 2018



2 Net capital (losses)/gains

The net capital (losses)/gains on investments during the year comprise: 28/02/2018 28/02/2017 £ £

Non-derivative securities (1,585,661) 7,996,314

Derivative securities (4,075) 22,236

Forward currency contracts 499,204 (652,222)

Currency exchange (losses)/gains (103,101) 67,593


Net capital (losses)/gains (1,197,342) 7,430,211

3 Revenue

28/02/2018 28/02/2017 £ £

Bank interest 1 2,402


Rebate on ACD’s charge – 1,902


Returns from bond futures 41 (4,867)

Total revenue 3,610,336 4,272,850


RBS Investment Funds ICVC - Royal Bank of Scotland High Yield FundNotes to the Financial Statements(continued)

4 Expenses

28/02/2018 28/02/2017 £ £


918,976 949,881



29,992 30,317




6,453 11,278

Total expenses 955,421 991,476The Audit fee for the year, excluding VAT, was £6,000 (2017 – £6,000).



5 Taxation

28/02/2018 28/02/2017 £ £


Overseas tax – (1,089)

Total tax charge (note 5b) – (1,089)

b) Factors affecting tax charge for the year:

The tax assessed for the year is lower than the standard rate of corporation tax in the UK for an ICVC (20%) (2017: 20%). The differences are explained below:


Corporation tax @ 20% 530,466 656,052

Effects of:

Tax deductible interest distributions (530,466) (656,052)

Overseas tax – (1,089)

Total tax charge (see note 5a) – (1,089) Authorised investment companies with variable capital are exempt from tax on capital gains. Therefore any capital return is not included inthe above reconciliation.

c) Deferred taxNo deferred tax asset has been recognised in the accounts. The Sub-fund has no excess management expenses (28/02/2017: Nil).




28/02/2018 28/02/2017 £ £

Interest 2,584 1,116

Total interest 2,584 1,116

7 Distributions


28/02/2018 28/02/2017 £ £

Income DistributionsInterim distribution 31 May - Income shares 691,779 692,056

Interim distribution 31 August - Income shares 687,953 671,051



Tax deducted in interest distributions* – 504,415

2,635,037 3,266,739



17,294 14,608



Net revenue after taxation for the year 2,652,331 3,281,347


*All interest distributions after 6 April 2017 were paid gross.



8 Debtors

28/02/2018 28/02/2017 £ £


Amounts receivable for issue of shares 20,075 –

Sales awaiting settlement – 276,529

Debtors 1,450,496 1,814,528


28/02/2018 28/02/2017 £ £

Cash held at bank 2,213,526 1,641,558

Amounts held at futures clearing houses and brokers 1,050 12,870

Amounts held in Aviva Investors Liquidity Fund 800,000 2,300,000


10 Creditors

28/02/2018 28/02/2017 £ £


Income tax payable – 49,013








a) Credit riskThe Sub-fund enters into derivative transactions in the form of futures and forward currency contracts. The purpose of these financial instrumentsis Efficient Portfolio Management. Futures are used to manage market price risk. Forward currency contracts are used to manage currency riskarising from holdings of overseas securities. The purpose of undertaking these contracts is to protect the portfolio as far as possible from adownturn in the markets.

The Sub-fund’s use of exchange traded derivatives are considered to be free of counterparty risk if the derivative is traded on an exchange wherethe clearing house is backed by an appropriate performance guarantee and is characterised by a daily mark-to-market valuation of the derivativeposition and at least daily margining.

At 28 February 2018, the Sub-fund held non exchange traded derivatives in the form of forward currency contracts. The counterparty exposureis shown below:

No collateral is held or pledged for forward currency contracts. Given the short maturity of the transactions, the ACD believes the robust approvaland monitoring procedures in place for the counterparties are sufficient to mitigate the counterparty risk associated with the contracts.Margin is paid or received on futures contracts to cover any exposure by the counterparty to the Sub-fund or by the Sub-fund to the counterparty. Cash and bank balances consist primarily of cash and margin receivable from the Sub-fund’s clearing brokers and JP Morgan Chase. It is includedin "Cash and bank balances" on the Balance Sheet.

Margin amounts held at futures clearing houses and brokers are disclosed in notes 9 and overdrafts in the liabilities section of the balance sheet.

b) Interest rate riskThe interest rate risk profile of financial assets and liabilities as at 28 February 2018 was as follows:


Credit quality 28/02/2018 28/02/2017

Investment grade 60,581,133 62,981,644Below investment grade 17,534,183 21,716,907Not rated 4,411,664 4,463,705 82,526,980 89,162,256

A fixed income security is deemed to be of investment grade if it is rated BBB- or above.

Counterparty Details of OTC Financial Derivative Transactions

Forwards28/02/2018

£

Goldman SachsSociété Générale CowenRBC Dominion

197,642(3,700)(9,271)

Floating Rate

Investments£

Fixed Rate

Investments£


Investments£

Total£


– 82,526,979 15,160,105 97,687,084– – (14,797,764) (14,797,764)

Floating Rate

Investments£

Fixed Rate

Investments£


Investments£

Total£


– 88,976,822 13,704,220 102,681,042– – (13,518,786) (13,518,786)




c) Foreign currency riskAt the year end date, 28 February 2018, (0.04)% (28/02/2017: 0.06%) of the Sub-fund’s net asset value was denominated in foreign currencies.






Interest rate sensitivityAn increase of 100 basis points (1%) as at the reporting date will cause net capital losses to increase by £5,865,609 and the net asset value todecrease by £5,865,609 (28/02/2017 will cause net capital gains to increase by £6,470,606 and net asset value to increase by £6,470,606).


Currency sensitivityAt the year end date, 28 February 2018, (0.04)% (28/02/2017: 0.06%) of the Sub-fund’s net asset value was denominated in foreign currencies,hence no currency sensitivity has been carried out.

Equity market price sensitivityAt the year end date, 28 February 2018, 0.19% (28/02/2017: 0.18%) of the Sub-fund’s net asset value was invested in equity shares, hence noequity market price sensitivity has been carried out.



£ Liabilities

£


177,671 97,276,417

232,996 97,687,084

– (14,797,764)

– (14,797,764)


£ Liabilities

£


165,537 102,185,819

329,686 102,681,042

(5,283)(13,513,503)

–(13,518,786)






Purchases (excluding derivatives) £ £ % £ %Debt instruments (direct) 26,490,674 – – – –Collective investment schemes 17,100,000 – – – –Total purchases 43,590,674 – –



Sales (excluding derivatives) £ £ % £ %Debt instruments (direct) 30,724,596 – – – –Collective investment schemes 18,600,000 – – – –Total sales 49,324,596 – –


Total transaction costs – –







Purchases (excluding derivatives) £ £ % £ %Debt instruments (direct) 22,343,893 – – – –Total purchases 22,343,893 – –








The above analysis covers any direct transaction costs suffered by the Sub-fund during the year. However it is important to understand the natureof other transaction costs associated with different investment asset classes and instruments types.For the Sub-fund's investment transactions in debt and money market instruments any applicable transaction charges form part of the dealingspread for these instruments. Transactions in money market instruments to manage the Sub-fund's daily liquidity position are excluded from the analysis.











15 Share movement




Income

shares


73,395,3621,561,776

(6,294,180)68,662,958

Royal Bank of Scotland International Growth Fund



RBS Investment Funds ICVC - Royal Bank of Scotland International Growth FundFund Reportfor the year ended 28 February 2018

Investment Objective & PolicyTo achieve long term capital appreciation. The Sub-fund will invest in a well diversified portfolio of global shares. The Sub-fund may be investedin any recognised stock exchange worldwide. There is no limit to the amount of the portfolio which may be invested in any one market.


PerformanceThe Sub-fund returned 2.60 per cent (after charges) for the year to the end of February 2018, compared with a return of 6.57 per cent for theMSCI World Index and an average return of 8.40 per cent for its peer group, the Investment Association Global sector.

Portfolio SummaryThe Sub-fund underperformed the MSCI World Index over the reporting year and also underperformed its peer group. The main factor thatdetracted from performance relative to the Index was stock selection in the consumer staples and healthcare sectors.

Amongst the former, Amazon’s entry into the grocery market last summer, with the acquisition of natural and organic grocery chain WholeFoods, has had a significant impact on share prices throughout the food retailing sector. The prospect of intensified competition and thepotential erosion of profit margins saw share prices of our holdings in Dutch food retailer Ahold, which has a significant presence in the USmarket, and Kroger, which also issued a profit warning, fall sharply in response to this development. We exited the Kroger position, as webelieve there will continue to be pressure to invest in prices and also their online offering which will further pressure margins. Exposure totobacco stocks Altria and Imperial Brands also detracted from performance. Shares in tobacco companies sold off following an announcementfrom the US Food and Drug Administration (FDA) extending the deadline for registering next generation tobacco products, while the FDAdeclared their intention to undertake a consultation on reducing nicotine content to non-addictive levels. More generally tobacco stocks wereimpacted by weakness in bond markets over the reporting year, as with other consumer staples they are viewed as a bond proxy for incomeseeking investors.

In the healthcare sector, our holding in UK pharmaceutical group Shire underperformed following the acquisition of US biotech group Baxalta,which specialises in drugs for rare diseases. The acquisition has more than doubled Shire’s group revenues but the share price has been heldback by on ongoing concerns about the company’s high debt levels. As the reporting year ended, Shire announced better than expectedrevenues for 2017 but gave a cautious trading outlook for this year due to the impact of competition from new generic drugs. Our holding inMerck & Co weakened on concerns that the US pharmaceutical group’s new lung cancer drug, used in combination with traditionalchemotherapy, would not be able to replicate the success it had as a standalone treatment. However, results from subsequent patient trialshave been encouraging.

Amongst industrials, the performance of our holding in conglomerate General Electric was particularly disappointing. The company downgradedits full-year earnings forecast after disappointing third quarter results and subsequently announced it planned a restatement of its earningsfor 2016 and 2017 as it applies a new accounting standard. We sold our holding as a result, given the lack of visibility in the business. In thetelecoms sector, our holding in BT underperformed on concerns about the company’s pension fund liabilities and the uncertainty that remainsaround its Openreach business.

In terms of new additions to the Sub-fund, we initiated a position in US semiconductor manufacturer Broadcom. They have a strong competitivemarket position selling chips for a variety of end markets such as mobile phones, data centres and automotives and allied with strong freecash flow generation we see significant upside potential. We also added European banking names ING and BNP Paribas to the portfolio; weview them both as well-capitalised banks that should benefit from the improving macro outlook in Europe.

The main contributor to performance relative to the index during the reporting year was our holding in US aircraft manufacturer Boeing, whichposted fourth quarter results ahead of market estimates as airliner orders hit record levels while the company also forecast higher aircraftdeliveries in 2018. Stock selection in the financial sectors also contributed to performance. Quarterly results from Dutch banking group INGrevealed that loan growth in Germany and other international markets more than offset a decline in Dutch consumer lending. Looking ahead,we expect the gradual shift to more fee-based products to help support net interest margins in the prevailing low interest rate environment.The continuing improvement in economic conditions in the euro area should also be positive for ING’s earnings growth prospects. Fourthquarter results from US investment bank JPMorgan Chase came in ahead of market expectations, despite an increase in debt provisions, whilethe prospect of a lower-tax regime, higher interest rates and lighter regulation on the US banking sector should underpin earnings growth in2018. Legal & General reported strong growth in new annuity business, while the insurance group’s asset management division benefitedfrom the popularity of liability-driven and multi-asset investment strategies amongst its pension fund clients.


RBS Investment Funds ICVC - Royal Bank of Scotland International Growth FundFund Report(continued)

OutlookLooking at the investment outlook for 2018, we expect robust earnings growth to continue, supported by the positive global outlook. In termsof valuations, it's worth noting that European and Japanese equities still trade at a discount to their US counterparts. Whilst we expect themomentum in earnings provide further support for equity markets going forward there are reasons for investors to adopt a more cautiousapproach. The low-interest rate environment has led to increased levels of leverage, and with signs central banks are looking to withdrawstimulus and/or increase interest rates, companies with stretched balance sheets may come under increasing pressure. There has been a lotof focus of late on the US tax reforms and potential implications for corporates. There are elements that could provide a significant boost forearnings, with implications for corporate balance sheets. Whilst the proposed changes to individual taxes should be net positive forconsumption, the reduction in the corporate tax rate to 21% should provide a more meaningful boost to earnings. Domestic companies withhigh effective tax rates would see the most benefit, which from a sector perspective would be telecoms, financials and consumer discretionarystocks. However, we do not expect companies to retain all the benefit of a lower tax rate as some will likely be competed away or passed onto end consumers, particularly in industries with less pricing power.






RBS Investment Funds ICVC - Royal Bank of Scotland International Growth FundComparative table





28/02/2018pence

per share

28/02/2017pence

per share

28/02/2016pence

per share



Performance†




512.4521.36 (8.11)13.25 (6.26)

6.26

525.70(0.00)

2.59%

26,816,187 5,101,066

1.56%0.06%

550.8494.7

410.23109.47 (7.25)

102.22 (6.02)

6.02

512.45(0.66)

24.92%

27,840,711 5,432,906

1.58%0.14%

513.8405.3

419.34(2.60)(6.51)(9.11)(2.52)

2.52

410.23(0.03)

(2.17)%

24,048,7385,862,322

1.58%0.01%

446.7370.7


RBS Investment Funds ICVC - Royal Bank of Scotland International Growth FundStatistics






Lower risk


Higher risk


1 2 3 4 5 6 7


RBS Investment Funds ICVC - Royal Bank of Scotland International Growth FundPortfolio Statementas at 28 February 2018 (28 February 2017)


United Kingdom 15.32% (10.99%)BT 136,215 331,002 1.23Imperial Brands 14,306 374,173 1.39Legal & General 300,555 794,367 2.96Prudential 47,525 876,599 3.27RELX 32,733 487,231 1.82Rio Tinto 18,849 741,520 2.76Unilever 13,536 507,397 1.89

Overseas Equities 81.35% (87.03%)

Australia 0.00% (1.07%)

Canada 0.00% (0.00%)Nortel Networks* 1,336 - -

Denmark 3.01% (2.46%)Danske Bank 27,921 806,863 3.01

Finland 0.00% (1.90%)

France 8.01% (7.84%)BNP Paribas 2362 136,154 0.51Orange 37,370 460,611 1.72Total 15,702 650,115 2.42Vinci 12,511 900,174 3.36

Germany 3.36% (3.57%)Deutsche Telekom (Regd.) 32,569 382,319 1.42ProSiebenSat.1 Media 8,312 238,722 0.89SAP 3,729 281,765 1.05

Ireland 0.00% (2.46%)

Netherlands 7.89% (5.91%)ING 68,668 884,987 3.30Koninklijke Ahold Delhaize 34,785 565,771 2.11Royal Dutch Shell 'B' (UK Regd.) 28,555 663,904 2.48

Singapore 0.03% (0.02%)Keppel Real Estate Investment Trust 11,400 7,344 0.03

Switzerland 1.91% (2.15%)Roche 3,033 513,146 1.91

United States Of America 57.14% (59.65%)Accenture 5,247 616,244 2.30Altria 11,402 527,102 1.97Amgen 4,014 538,796 2.01Apple 6,488 836,006 3.12Becton Dickinson 3,400 552,862 2.06Boeing 3,154 830,403 3.10Broadcom 4,900 891,360 3.32Cisco Systems 27,097 881,504 3.29Comcast 'A' 16,729 442,819 1.65Home Depot 6,562 876,877 3.27Honeywell International 7,863 874,064 3.26Johnson & Johnson 5,615 533,875 1.99JPMorgan Chase 13,434 1,139,007 4.25Lyondellbasell Industries 'A' 8,860 701,657 2.62McDonald's 5,554 644,636 2.40Merck & Co 9,977 394,265 1.47Microsoft 12,236 832,794 3.11Pfizer 24,899 661,239 2.47Schlumberger 6,278 303,242 1.13Shire 11,578 357,008 1.33Texas Instruments 10,619 831,139 3.10TJX 9,028 504,295 1.88Wells Fargo 12,792 547,278 2.04


Net current assets 3.33% (1.98%) 893,551 3.33



Unless otherwise stated, all investments are approved securities being either officially listed in a member state or traded on or under therules of an eligible securities market.

Unless otherwise indicated, the holdings in the Portfolio Statement represent the ordinary shares, ordinary stock units or common shares ofthe relevant companies or issuers.

*This security is suspended and therefore priced at the ACD's fair valuation.


RBS Investment Funds ICVC - Royal Bank of Scotland International Growth FundPortfolio Statement(continued)



RBS Investment Funds ICVC - Royal Bank of Scotland International Growth Fund




Notes

28/02/2018 £ £

28/02/2017 £ £



2346

5

7

363,988 835,179 (423,612) (129) 411,438 (78,572) 332,866

696,854 (332,866)

363,988

5,429,064 828,631 (405,383) (210) 423,038 (80,590) 342,448 5,771,512 (342,448)

5,429,064

Notes

28/02/2018 £ £

28/02/2017 £ £



Change in net assets attributable to Shareholders from investment activities (see above) Retained distributions on accumulation shares 7Closing net assets attributable to Shareholders

27,840,711 192,650 (1,900,493) (1,707,843)

363,988 319,331 26,816,187

24,048,738

160,498 (2,124,516) (1,964,018)

5,429,064 326,927 27,840,711

Notes

28/02/2018 £ £

28/02/2017 £ £

ASSETSFixed assets





Other creditors Total other liabilitiesTotal liabilitiesNet assets attributable to Shareholders

89

10

25,922,636 84,332 865,841 950,173 26,872,809 (56,622) (56,622) (56,622) 26,816,187

27,290,398 98,951 547,806 646,757 27,937,155

(96,444) (96,444) (96,444) 27,840,711


RBS Investment Funds ICVC - Royal Bank of Scotland International Growth Fund


Final Distribution for Accumulation Shares(in pence per share)

Group 1: Shares purchased prior to 1 March 2017Group 2: Shares purchased from 1 March 2017 to 28 February 2018



Net

Revenue

Equalisation

Amountpayable on

30/04/2018

Amountpaid on

28/04/2017

Group 1

Group 2

6.2601

1.7387

0.0000

4.5214

6.2601

6.2601

6.0175

6.0175


RBS Investment Funds ICVC - Royal Bank of Scotland International Growth FundNotes to the Financial Statementsfor the year ended 28 February 2018



2 Net capital gains


Non-derivative securities 352,058 5,438,763

Currency exchange 13,849 (7,967)


Net capital gains 363,988 5,429,064

3 Revenue

28/02/2018 28/02/2017 £ £

Bank interest 574 676


Property income dividends 343 390

UK dividends 190,438 136,559

Total revenue 835,179 828,631


RBS Investment Funds ICVC - Royal Bank of Scotland International Growth FundNotes to the Financial Statements(continued)

4 Expenses

28/02/2018 28/02/2017 £ £


408,942 385,645



9,463 9,596


Printing costs 189 684

Professional service fees (2,115) –

Tax compliance fee* – 2,191

5,207 10,142


*Tax compliance fee was paid to Deloitte, who were the previous auditors until 28/02/16.



5 Taxation

28/02/2018 28/02/2017 £ £



Total tax charge (note 5b) 78,572 80,590


Net revenue before taxation 411,438 423,038

Corporation tax @ 20% 82,288 84,608

Effects of:

Dividends not subject to corporation tax (166,822) (165,517)



Total tax charge (see note 5a) 78,572 80,590

c) Deferred taxAfter claiming relief against accrued revenue taxable on receipt, the Sub-fund has unrelieved excess expenses of £4,426,521 (28/02/2017:£4,003,849). These unrelieved excess management fees represent an unrecognized deferred tax asset of £885,304 (28/02/2017: £800,770).It is unlikely that the Sub-fund will generate sufficient taxable profits in the future to utilise these amounts and therefore no deferred tax assethas been recognised (28/02/2017: £nil).




28/02/2018 28/02/2017 £ £

Interest 129 210

Total interest 129 210

7 Distributions


28/02/2018 28/02/2017 £ £

Accumulation DistributionsFinal distribution 28 February - Accumulation shares 319,331 326,927

319,331 326,927



13,535 15,521

Net distributions for the year 332,866 342,448


Net revenue after taxation 332,866 342,448

Net distributions for the year 332,866 342,448



8 Debtors

28/02/2018 28/02/2017 £ £

Accrued revenue 53,214 83,013


Total debtors 84,332 98,951


28/02/2018 28/02/2017 £ £

Cash held at bank 865,841 547,806

Total cash and bank balances 865,841 547,806

10 Creditors

28/02/2018 28/02/2017 £ £







a) Interest rate riskAt the year end date, 28 February 2018, nil% (28/02/2017: nil%) of the Sub-fund’s net asset value was interest bearing. Further disclosurewould be required if the exposure of the Sub-fund was deemed significant.

b) Currency exposure riskThe currency risk as at 28 February 2018 was as follows:

The currency risk as at 28 February 2017 was as follows:

c) Derivatives risk and Efficient Portfolio ManagementThe Sub-fund did not enter into any derivative transactions during the year.

Currency

Monetary exposures

£


exposures£

Total£

Canadian dollarDanish kroneEuroSingapore dollarSwiss francUS dollarTotal

1 – 1– 810,127 810,127

31,978 4,519,969 4,551,947244 7,344 7,588

8,716 520,018 528,734542,195 14,993,850 15,536,045583,134 20,851,308 21,434,442

Currency

Monetary exposures

£


exposures£

Total£

Australian dollarCanadian dollarDanish KroneEuroSingapore dollarSwiss francUS dollarTotal

– 297,411 297,4111 – 1– 683,767 683,7671 4,843,292 4,843,293

253 6,746 6,999– 603,047 603,0471 16,661,331 16,661,332

256 23,095,594 23,095,850









Interest rate sensitivityAt the year end date, 28 February 2018, nil% (28 February 2017: nil%) of the Sub-fund’s net asset value was invested in interest bearing investments,hence no interest rate sensitivity has been carried out.

Currency sensitivityThe tables below sets out the effect of a reasonably possible strengthening of:

A weakening of the GBP against the above currencies of the same rates will have resulted in an equal but opposite effect. The analysis assumesall other variables remain constant.


£ Liabilities

£


25,922,636––

25,922,636

––––

Currencies 28/02/2018

% 28/02/2017

%

GBP against EURGBP against all currencies

55

55

Effect in GBP 28/02/2018

£ 28/02/2017

£

EURDecrease in net capital gains/(increase in net capital losses) and decrease in net asset valueAll currenciesDecrease in net capital gains/(increase in net capital losses) and decrease in net asset value

(226,960)

(1,068,469)

(243,055)

(1,154,483)


£ Liabilities

£


27,290,398––

27,290,398

––––




e) Sensitivity analysis (continued)







Purchases (excluding derivatives) £ £ % £ %Equity instruments (direct) 2,976,930 2,783 0.09 6,993 0.23Total purchases 2,976,930 2,783 6,993



Sales (excluding derivatives) £ £ % £ %Equity instruments (direct) 4,710,813 4,579 0.10 74 0.00Total sales 4,710,813 4,579 74




28/02/2018

£ 28/02/2017

£







Purchases (excluding derivatives) £ £ % £ %Equity instruments (direct) 10,511,551 10,214 0.10 13,135 0.12 Total purchases 10,511,551 10,214 13,135



Sales (excluding derivatives) £ £ % £ %Equity instruments (direct) 12,383,024 13,477 0.11 178 0.00 Total sales 12,383,024 13,477 178





Separately identifiable direct transaction costs (commissions and taxes etc.) are attributable to the Sub-fund's purchase and sale of equity shares.Additionally for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be suffered onpurchase and sale transactions.










15 Share movement




Accumulation

shares


5,432,90637,234

(369,074)5,101,066


RBS Investment Funds ICVCStatement of the Authorised Corporate Director's Responsibilities

The Authorised Corporate Director (“ACD”) of RBS Investment Funds ICVC (“the Company”) is responsible for preparing the Annual Reportand the financial statements in accordance with the Open-Ended Investment Companies Regulations 2001 (“the OEIC Regulations”), theFinancial Conduct Authority’s Collective Investment Schemes’ Sourcebook (“COLL”) and the Company’s Instrument of Incorporation.

The OEIC Regulations and COLL require the ACD to prepare financial statements for each annual accounting period which:

• are in accordance with United Kingdom Generally Accepted Accounting Practice (“United Kingdom Accounting Standards and applicablelaw”) and the Statement of Recommended Practice: “Financial Statements of Authorised Funds” issued by the Investment Association(formerly the “IMA”) in May 2014 (“the IMA SORP 2014”); and

• give a true and fair view of the financial position of the Company and each of its Sub-funds as at the end of that period and the net revenueand the net capital gains or losses on the property of the Company and each of its Sub-funds for that period.

In preparing the financial statements, the ACD is responsible for:

• electing suitable accounting policies and then applying them consistently;

• making judgments and estimates that are reasonable and prudent;

• stating whether applicable UK Accounting Standards and the IMA SORP have been followed, subject to any material departures disclosedand explained in the financial statements; and

• preparing the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue inoperation.

The ACD is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position ofthe Company, for safeguarding the assets, for taking reasonable steps for the prevention and detection of fraud and other irregularities andfor the preparation of an ACD’s report which complies with the requirements of the Company’s Instrument of Incorporation and the CollectiveInvestment Schemes Sourcebook of the Financial Conduct Authority.

In accordance with COLL 4.5.8BR, the Annual Report and the audited financial statements were approved by the ACD of the Company andauthorised for issue on 18 June 2018.

Ben Hunt, DirectorFor and on behalf of RBS Collective Investment Funds LimitedAuthorised Corporate Director18 June 2018


RBS Investment Funds ICVC Report of the Depositary

Statement of the Depositary's Responsibilities in Respect of the Scheme and Report of the Depositary to the Shareholders of the RBSInvestment Funds ICVC ("the Company") for the Year Ended 28th February 2018

'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 Act2000, as amended, (together "the Regulations"), the Company's Instrument of Incorporation and Prospectus (together "the Schemedocuments") as detailed below.

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

The Depositary is responsible for the safekeeping of al! custodial assets and maintaining a record of all other assets of the Company inaccordance with the Regulations.

The Depositary must ensure that:

• the Company's cash flows are properly monitored and that cash of the Company is booked into the cash accounts in accordance withthe 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).

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

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

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

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

JP Morgan Europe LimitedBournemouth

18 June 2018


RBS Investment Funds ICVC Independent Auditor's Report to the Shareholders of RBS Investment Funds ICVC

Opinion

We have audited the financial statements of RBS Investment Funds ICVC (”the Company”) for the year ended 28 February 2018 which compriseof The Statement of Total Return and Statement of Change in Net Assets Attributable to Shareholders together with the Balance Sheet foreach of the Company’s sub-funds, the accounting policies of the Company, the related notes for each sub-fund and the Distribution Table,including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation isapplicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘TheFinancial Reporting Standard applicable to the UK and Republic of Ireland’.

In our opinion, the financial statements:

• give a true and fair view of the financial position of the Company comprising each of its sub-funds as at 28 February 2018 and of the netrevenue and the net capital gains or losses on the scheme property of the Company comprising each of its sub-funds for the year thenended; and

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice including FRS 102 ‘The FinancialReporting standard applicable in the UK and Republic of Ireland’.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities underthose standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report below.We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements inthe UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Use of our report

This report is made solely to the company’s members, as a body, pursuant to Paragraph 4.5.12 of the rules of the Collective InvestmentSchemes Sourcebook of the Financial Conduct Authority. Our audit work has been undertaken so that we might state to the company’smembers those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted bylaw, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work,for this report, or for the opinions we have formed.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the ACD’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the ACD have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about thecompany’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date whenthe financial statements are authorised for issue.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s reportthereon. The ACD is responsible for the other information.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in thisreport, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whetherthe other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whetherthere is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work wehave performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.


RBS Investment Funds ICVC Independent Auditor's Report to the Shareholders of RBS Investment Funds ICVC

Opinions on other matters prescribed by the rules of the Collective Investment Schemes Sourcebook of the Financial Conduct Authority

In our opinion:

• the financial statements have been properly prepared in accordance with the Statement of Recommended Practice relating to AuthorisedFunds, the rules of the Collective Investment Schemes Sourcebook of the Financial Conduct Authority and the Instrument of Incorporation;

• the information given in the ACD’s report for the financial year for which the financial statements are prepared is consistent with thefinancial statements; and

• there is nothing to indicate that proper accounting records have not been kept or that the financial statements are not in agreement withthose records.

Matters on which we are required to report by exception

We have nothing to report in respect of the follow matter in relation to which the Collective Investment Schemes Sourcebook of the FinancialConduct Authority rules requires us to report to you if, in our opinion:

• we have not received all the information and explanations which, to the best of our knowledge and belief, are necessary for the purposesof our audit

Responsibilities of authorised corporate director (ACD)

As explained more fully in the ACD responsibilities statement set out on page 156, the ACD is responsible for the preparation of the financialstatements and for being satisfied that they give a true and fair view, and for such internal control as the ACD determine is necessary to enablethe preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the ACD is responsible for assessing the Company’s ability to continue as a going concern, disclosing, asapplicable, matters related to going concern and using the going concern basis of accounting unless the ACD either intends to liquidate theCompany or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expectedto influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Ernst & Young LLPStatutory AuditorEdinburgh, United Kingdom

18 June 2018


Authorised Corporate Director and Registered OfficeRBS Collective Investment Funds Limited24-25 St Andrew Square, Edinburgh EH2 1AF(Authorised and regulated by the Financial Conduct Authority)Registered in Scotland No SC46694

Client Enquiries: 0345 300 2585Dealing: 0345 300 2585

Directors of RBS Collective Investment Funds LimitedIan Michael Brian McLaughlinBrian McCrindle (Resigned 31 December 2017)Benjamin HuntDickson Anderson

DepositaryJP Morgan Europe Limited1 ChasesideBournemouthBH7 7DA

(Authorised by the Prudential Regulation Authority and regulated by theFinancial Conduct Authority and the Prudential Regulation Authority)

Investment ManagerAviva Investors Global Services LimitedSt Helen's1 UndershaftLondonEC3P 3DQ

(Authorised and regulated by the Financial Conduct Authority)

Registrar and AdministrationAviva Life Services UK Limited who sub-delegates this responsibility to DST Financial Services International Ltd at:PO Box 9908ChelmsfordEssexCM99 2AF

(Authorised and regulated by the Financial Conduct Authority)

AuditorErnst & Young LLPAtria One144 Morrison Street EdinburghEH3 8EX

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