Weighted Price Growth: Weighted Total Return: Yield: H2 2015 -3.32% -3.38% 3.62% FY 2015 -2.24% +0.58%

Second Half Review 2015

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

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

The Collective Portfolio experienced a modest decline of 3.38% over the second half of 2015 whilst over the year as a whole it appreciated by 0.58% on a total return basis. To put this in perspective the FTSE100 share index declined by 1.03% over the year although it appreciated by 2.65% over the second half. It is difficult making comparisons for this portfolio as it is not purely UK equity oriented, given it includes overseas equities, bonds and gold. The portfolio also comprises of unit trusts, investment trusts and an exchange traded fund, all of which respond to market conditions in different ways. It has, however, been designed with the intention of outperforming cash and keeping volatility under a degree of control.The biggest contributor to H2 performance came from RIT Capital Partners, which delivered a total return of 9.75%. Over the year as a whole, the company’s unique objective of achieving capital growth, regardless of the environment, allowed it to achieve a total return of 22.69%. We visited the company in November and were provided with a detailed overview of the way in which the managers operate. The Rothschild family still takes an active role in the management of the business which is not surprising as it owns around 25% of the share capital. This remains a core constituent of the Collective Portfolio. A respectable performance was also recorded by the Sarasin International Global Higher Dividend Fund, which grew by 3.77%, benefitting from its focus on high quality, repeatable businesses with embedded long term growth.

The largest detractor from the portfolio’s performance during the period was the Templeton Emerging Markets Investment Trust, which fell in value by 20.47%. The general weakness in emerging markets throughout 2015 was the result of several factors; most notably the uncertainty over the timing of the rise of US interest rates, along with the overall decline of the global commodities markets, upon which many emerging economies depend.

In 2016, we will be introducing the Fundsmith Equity Fund as the ninth constituent of the Collective Portfolio. The fund’s investment strategy involves the adoption of a long-term approach to stock selection with a focus on, among other things, businesses whose advantages are difficult to replicate and do not require significant leverage to generate returns. This also increasingly dove-tails the strategy behind the Collective Portfolio into our other Pound a Day Portfolios.

Total Return: 30 June 2015 - 31 December 2015

Shaded area reflects the contribution from reinvestment of dividends

Gold Bullion Sec(3.72%)

Templeton (20.47%)

RIT Cap9.75%

Muzinich (1.84%)

Caledonia0.01%

Sarasin 3.77%

M&G(9.96%) Royal London

(0.20%)

-40%

-20%

0%

20%

40%

60%

80%

Weighted Average Return

Sarasin

Gold Bullion Sec

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

Total Return Since Inception31 December 2011 - 30 June 2015

Holdings / Performance All data is provided in GBP figures

*Benchmark figures used

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

Edited by Michael Craine

Fund Established In October 2010

Fund Established In April 2003

Fund Established In May 2006

Fund Established In June 1988

Fund Established In March 2004

Fund Established In June 1989

Fund Established In 1951

Fund Established In May 1969

Total Return Muzinich Short Duration High Yield Fund Yield 5.17%2015 2014 2013 2012 2011 2010 2009 2008 2007 Compound

0.30% (0.10%) 4.07% 7.14% 3.54% 15.68%

• The market has favoured higher quality bonds over lower rated ones towards the end of the year. • The fund benefitted from superior credit selection and sector allocation, with cash holdings helping to protect the overall performance. • Continues to maintain a defensive position within the fund. • Actively reduced exposure to energy, with anticipation that this will continue as sentiment in the sector remains negative.

Top 3 Holdings • Sprint Communications Inc, 1.93%; Chrysler Group Llc, 1.81%; Novelis Inc, 1.8%

Total Return RLAM Sterling Extra Yield Bond Fund Yield 6.44%2015 2014 2013 2012 2011 2010 2009 2008 2007 Compound

2.40% 8.14% 11.80% 22.71% 4.16% 19.01% 26.24% (33.05%) 1.91% 62.21%

• Maintained an average duration of 5 years, resulting in a low sensitivity to the decline in inflation during the year to 30th April. • Holdings in the offshore oil sector weakened in price as investor sentiment to the sector fell. • Performance toward the end of the year reflects a combination of recovery in sentiment in corporate bond markets and an increase in government bond yields.

Top 3 Holdings • 6.175% Premiertel Plc 08/05/2032, 2.49%, 13.000% Annington Finance No.5 Plc 15/01/2023, 2.42%, 6.375% Enterprise Inns Plc 21/06/2021, 2.81%.

Total Return Sarasin Global Higher Dividend Fund Yield 7.45%2015 2014 2013 2012 2011 2010 2009 2008 2007 Compound

6.24% 10.70% 17.77% 11.04% (6.16%) 15.45% 17.76% (14.14%) 8.51% 82.80%

• Third quarter followed strong Q2 results, with excellent revenue growth and pricing power, Altria was one of the fund’s best performers. • Switched out of Sunrise Communications in favour of a position in Drillisch, and also exited positions in Mr Price and Life Healthcare over concerns for the sub-Saharan economic outlook.• Remains weighted towards high quality, repeatable businesses, with sustainable competitive advantages and embedded long term growth.

Top 3 Holdings • Vodafone Group plc, 3.6%, Kimberly-Clark Group, 3.5%, General Electric Corp, 3.1%

Total Return RIT Capital Partners PLC Yield 2.02%2015 2014 2013 2012 2011 2010 2009 2008 2007 Compound

22.69% 13.30% 13.97% (5.37%) 2.42% 15.17% 19.24% (14.21%) 6.20% 92.14%

• Continued emphasis on US Dollar and more recently Sterling, while adopting a negative exposure to Asian currencies.• Took advantage of fixed interest private placement market to raise £151 million in long dated notes with a 3.45% coupon. • Capitalised on strong performances from Japanese and Eurozone markets through the first half of the year by reducing exposure to US equities. ‘Looking to the future, we are particularly mindful of our principle of capital preservation at a time of diminishing growth forecasts for world economies, while stock market valuations remain higher.’ – Lord Rothschild, 10th August 2015.

Top 3 Holdings • HCIF Offshore, 4.9%, BlackRock European Hedge, 3.6%, Gaoling, 3.0%

Total Return Gold Bullion Securities Yield 0.00%2015 2014 2013 2012 2011 2010 2009 2008 2007 Compound

(6.78%) 5.63% (29.38%) 0.67% 11.17% 31.95% 14.92% 40.02% 29.22% 113.51%

• Gold dropped to 5 year low in Q3 after investors sold their holdings in anticipation of a September/October interest rate rise. • The resulting low price caused demand for jewellery, bars and coins to rise by the end of the quarter. • Central banks building holdings of gold, adding 175t to official reserves in Q3, while the Peoples Bank of China has increased its gold reserve by 50% since 2009.

Total Return Templeton Emerging Markets PLC Yield 2.37%2015 2014 2013 2012 2011 2010 2009 2008 2007 Compound

(23.96%) 4.96% (8.86%) 7.95% (17.82%) 29.41% 96.71% (40.81%) 51.81% 47.59%

• Cause for the difficult conditions in emerging markets include the uncertainty over the timing of interest rate rises in the US and concerns about slowing growth in China. • Pakistani market was one of the best performing EM economies (despite declining), supported by positive corporate results, potential substantial investment growth from the proposed China-Pakistani Economic Corridor, additional IMF funding and the Central Bank’s Interest rate cut.• Overweight UK exposure via Unilever, underweight exposure to the Malaysian ringgit and good stock selection in South Korea all contributed to the fund’s performance for the 6 months to the end of September.

Top 3 Holdings • Unilever, 4.7% Brilliance China Automotive, 8.8% Siam Commercial Bank, 4.3%

Total Return M&G Recovery Fund Yield 0.94%2015 2014 2013 2012 2011 2010 2009 2008 2007 Compound

(5.18%) (9.59%) 14.14% 8.72% (6.29%) 16.49% 40.87% (27.53%) 12.48% 33.34%

• Performance detracted by overweight exposure to oil & gas, with the fund’s holdings in the sector falling by 25% to the end of June. • Strong contribution achieved from an overweight exposure to industrials and stock picking in healthcare and consumer services. • Pick-up in M&A activity continues to gather momentum. M&A resurgence has historically been good for the fund, both directly and indirectly.

Top 3 Holdings • BP, 6.70%, Lloyds Banking Group, 4.10%, Prudential, 3.90%

• Increased activity in unquoted portfolio, with the belief that this is where quality earning streams have been available for purchase at reasonable prices. • Income for the second half increased by 6.9% compared to the same period in 2014.‘Despite challenging global equity markets, our portfolio has delivered a resilient performance and continues to benefit from strong income generation.’ – Will Wyatt, Chief Executive.

Top 3 Holdings • Park Holidays, 7.3%, Cobehold, 6.2%, Capital Today China, 5.8%

Total Return Caledonia Investments Yield 2.30%2015 2014 2013 2012 2011 2010 2009 2008 2007 Compound

4.58% 24.75% 26.83% 15.93% (26.49%) 21.50% 11.50% (26.26%) (1.10%) 39.31%