Annual Report & Financial Statements€¦ · Stuart Buckingham (resigned 24 March 2017) Octopus Investments Limited Peter Davis 33 Holborn Philip Martin (resigned 31 December 2017)

Annual Report &Financial StatementsOmnis Managed Investments ICVC For the year ended 30 September 2017

PageOmnis Managed Investments ICVC

Directory* 03

Authorised Corporate Director’s (“ACD”) Report* 04

Certification of Financial Statements by Directors of the Authorised Corporate Director* 05

Statement of the ACD's Responsibilities 06

Statement of the Depositary's Responsibilities 07

Report of the Depositary to the Shareholders of the Company 07

Independent Auditor's Report to Shareholders 08

Accounting Policies and Financial Instruments 11

Fund Investment Commentaries andFinancial Statements*

Omnis Managed Adventurous Fund 18

Omnis Managed Balanced Fund 34

Omnis Managed Cautious Fund 50

Omnis Multi-Asset Income Fund 65

Omnis Multi-Manager Adventurous Fund 89

Omnis Multi-Manager Balanced Fund 107

Omnis Multi-Manager Cautious Fund 125

Omnis Multi-Manager Distribution Fund 142

General Information 160

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

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Omnis Managed Investments ICVC

Directory

The Company and Head Office Authorised Corporate Director (“ACD”)Omnis Managed Investments ICVC Omnis Investments LimitedWashington House Washington HouseLydiard Fields Lydiard FieldsSwindon SN5 8UB Swindon SN5 8UBIncorporated in England and Wales (Authorised and regulated by the FCA)under registration number IC000674

Website address: www.omnisinvestments.com(Authorised and regulated by the FCA)

Directors and Secretary of the ACD Investment ManagersStuart Buckingham (resigned 24 March 2017) Octopus Investments LimitedPeter Davis 33 HolbornPhilip Martin (resigned 31 December 2017) London EC1N 2HTDouglas Naismith (Authorised and regulated by the FCA)Dominic SheridanJudith Worthy (appointed 25 August 2017)

Newton Investment Management LimitedAndy Whipp (Secretary) 160 Queen Victoria Street

London EC4V 4LA(Authorised and regulated by the FCA)

RegistrarDST Financial Services International Limited Threadneedle Asset Management LimitedDST House, 78 Cannon StreetSt Nicholas Lane, London EC4N 6AGBasildon (Authorised and regulated by the FCA)Essex SS15 5FS

AuditorDeloitte LLPStatutory AuditorSaltire Court20 Castle TerraceEdinburgh EH1 2DB

Customer Service CentreOmnis Managed Investments ICVCPO BOX 10191Chelmsford CM99 2APTelephone: 0345 140 0070*

DepositaryState Street Trustees Limited20 Churchill PlaceLondon E14 5HJ(Authorised and regulated by the FCA)

* Please note that telephone calls may be recorded for monitoring and training purposes, and to confirm investorsinstructions.

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Authorised Corporate Director’s (“ACD”) Report

We are pleased to present the Annual Report & Audited Financial Statements for Omnis ManagedInvestments ICVC for the year ended 30 September 2017.

Authorised Status

Omnis Managed Investments ICVC (“the Company”) is an investment company with variable capitalincorporated in England and Wales under registered number IC000674 and authorised by theFinancial Conduct Authority (“FCA”) with effect from 20 May 2008. The Company has an unlimitedduration.

Shareholders are not liable for the debts of the Company.

Head office: Washington House, Lydiard Fields, Swindon, SN5 8UB

The Head Office is the address of the place in the UK for service on the Company of notices orother documents required or authorised to be served on it.

Structure of the Company

The Company is structured as an umbrella company, in that different Funds may be establishedfrom time to time by the ACD with the approval of the FCA. On the introduction of any new Fundor Class, a revised prospectus will be prepared setting out the relevant details of each Fund orClass.

The Company is a UCITS scheme.

The assets of each Fund will be treated as separate from those of every other Fund and will beinvested in accordance with the investment objective and investment policy applicable to that Fund.Investment of the assets of each of the Funds must comply with the FCA’s Collective InvestmentSchemes Sourcebook (“COLL”) and the investment objective and policy of the relevant Fund.

Cross Holdings

There were no shares in any sub-fund held by other sub-funds of the ICVC.

Base Currency

The base currency of the Company is Pounds Sterling. Each Fund and Class is designated in PoundsSterling.

Share Capital

The minimum share capital of the Company is £1 and the maximum is £100,000,000,000. Sharesin the Company have no par value. The share capital of the Company at all times equals the sumof the Net Asset Values of each of the Funds.


Certification of Financial Statements by Directors of the AuthorisedCorporate DirectorFor the year ended 30 September 2017

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Director’s Certification

This report has been prepared in accordance with the requirements of COLL, as issued and amendedby the FCA. We hereby certify the report on behalf of the Directors of Omnis Investments Limited.

The Directors are of the opinion that it is appropriate to continue to adopt the going concern basisin the preparation of the financial statements as the assets of the Funds consist predominately ofsecurities that are readily realisable and, accordingly, the Funds have adequate resources to continuein operational existence for the foreseeable future.

Dominic Sheridan

Judith Worthy

Director, for and on behalf of Omnis Investments Limited

23 January 2018


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Statement of the ACD’s ResponsibilitiesFor the year ended 30 September 2017

The Authorised Corporate Director (“ACD”) of Omnis Managed Investments ICVC (“Company”) isresponsible for preparing the Annual Report and the Financial Statements in accordance with theOpen-Ended Investment Companies Regulations 2001 (“the OEIC Regulations”) as amended, theFCA’s Collective Investment Schemes Sourcebook (“COLL”) and the Company’s Instrument ofIncorporation.

The OEIC Regulations and COLL require the ACD to prepare Financial Statements for each annualaccounting period which:

• are in accordance with United Kingdom Generally Accepted Accounting Practice (“UnitedKingdom Accounting Standards and applicable law”) including Financial ReportingStandards 102 (“FRS 102”) applicable in the UK and Republic of Ireland and the Statementof Recommended Practice: “Financial Statements of Authorised Funds” issued by theInvestment Association (formerly Investment Management Association) (“IMA SORP”) in May2014; and

• give a true and fair view of the financial position of the sub funds as at the end of that periodand the net revenue and the net capital gains or losses on the property of the sub-funds forthat period.

In preparing the Financial Statements, the ACD is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards and the IMA SORP have been followed,subject to any material departures disclosed and explained in the Financial Statements; and

• prepare the Financial Statements on the going concern basis unless it is inappropriate topresume that the Company will continue in operation.

The ACD is responsible for keeping proper accounting records that disclose with reasonable accuracyat any time the financial position of the Company and enable them to ensure that the FinancialStatements comply with the applicable IMA SORP and United Kingdom Accounting Standards andapplicable law. The ACD is also responsible for the system of internal controls, for safeguarding theassets of the Company and for taking reasonable steps for the prevention and detection of fraudand other irregularities.

In accordance with COLL 4.5.8BR, the Annual Report and the audited Financial Statements wereapproved by the board of directors of the ACD of the Company and authorised for issue on 23 January 2018.

Omnis Investments Limited

23 January 2018


Statement of Depositary’s ResponsibilitiesFor the year ended 30 September 2017

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The Depositary must ensure that the Company is managed in accordance with the Financial ConductAuthority’s Collective Investment Schemes Sourcebook, the Open-Ended Investment CompaniesRegulations 2001 (SI 2001/1228), as amended, the Financial Services and Markets Act 2000, asamended, (together “the Regulations”), the Company’s Instrument of Incorporation and Prospectus(together “the Scheme documents”) as detailed below.

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

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

The Depositary must ensure that:

• the Company’s cash flows are properly monitored1 and that cash of the Company is bookedinto the cash accounts in accordance with the Regulations;

• the sale, issue, repurchase, redemption and cancellation of shares are carried out inaccordance 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 Companywithin 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 ManagementCompany, are carried out (unless they conflict with the Regulations).

1 This requirement on the Depositary applied from 18 March 2016.

Report of the Depositary to the Shareholders of the CompanyFor the year ended 30 September 2017

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

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

(i) has carried out the issue, sale, redemption and cancellation, and calculation of the price ofthe Company’s shares and the application of the Company’s revenue in accordance with COLLand, where applicable, the OEIC Regulations and the Instrument of Incorporation andProspectus of the Company; and

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

State Street Trustees LimitedDepositaryLondon

23 January 2018


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Report on the audit of the financial statements

Opinion

In our opinion the financial statements:

• give a true and fair view of the financial position of the sub-funds as at 30 September 2017and of the net revenue and the net capital gains on the property of the sub-funds for theyear ended 30 September 2017; and

• have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting Practice including Financial Reporting Standard 102 “The Financial ReportingStandard applicable in the UK and Republic of Ireland”, the Statement of RecommendedPractice “Financial Statements of UK Authorised Funds”, the rules in the Collective InvestmentSchemes Sourcebook and the Instrument of Incorporation.

We have audited the financial statements of the Omnis Managed Investments ICVC (the ‘Company’)which comprise the Accounting Policies and Financial Instrument notes and for each sub-fund:

• the Statement of Total Return;

• the Statement of Change in Net Assets Attributable to Shareholders;

• the Balance Sheet;

• the related notes; and

• the distribution tables.

The financial reporting framework that has been applied in their preparation is applicable law andUnited Kingdom Accounting Standards, including Financial Reporting Standard 102 “The FinancialReporting Standard applicable in the UK and Republic of Ireland” (United Kingdom GenerallyAccepted Accounting Practice), the Statement of Recommended Practice: “Financial Statements ofUK Authorised Funds” issued by the Investment Association in May 2014, the Collective InvestmentSchemes Sourcebook and the Instrument of Incorporation.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK))and applicable law. Our responsibilities under those standards are further described in the auditor’sresponsibilities for the audit of the financial statements section of our report.

We are independent of the Company in accordance with the ethical requirements that are relevantto our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and wehave fulfilled our other ethical responsibilities in accordance with these requirements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Conclusions relating to going concern

We are required by ISAs (UK) to report in respect of the following matters where:

• the authorised corporate director’s (ACD’s) use of the going concern basis of accounting inpreparation of the financial statements is not appropriate; or

• the ACD has not disclosed in the financial statements any identified material uncertaintiesthat may cast significant doubt about the Company’s ability to continue to adopt the goingconcern basis of accounting for a period of at least twelve months from the date when thefinancial statements are authorised for issue.

We have nothing to report in respect of these matters.

Independent Auditor’s Report to ShareholdersFor the year ended 30 September 2017

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Other information

The ACD is responsible for the other information. The other information comprises the informationincluded in the Annual Report, other than the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and, except to theextent otherwise explicitly stated in our report, we do not express any form of assurance conclusionthereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated. If we identify such material inconsistencies or apparent materialmisstatements, we are required to determine whether there is a material misstatement in thefinancial 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 this other information, weare required to report that fact.

We have nothing to report in respect of these matters.

Responsibilities of Depositary and ACD

As explained more fully in the Statement of Depositary’s Responsibilities and the Statement of ACD’sResponsibilities, the Depositary is responsible for the safeguarding the property of the Companyand the ACD is responsible for the preparation of the financial statements and for being satisfiedthat they give a true and fair view, and for such internal control as the ACD determines is necessaryto enable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.

In preparing the financial statements, the ACD is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and usingthe going concern basis of accounting unless the ACD either intends to liquidate the Company orto cease operations, or have 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 awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with ISAs (UK) will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic 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 onthe Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This descriptionforms part of our auditor’s report.

Independent Auditor’s Report to Shareholders (continued)For the year ended 30 September 2017

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Independent Auditor’s Report to Shareholders (continued)For the year ended 30 September 2017

Use of our report

This report is made solely to the Company’s Shareholders, as a body, in accordance with Paragraph4.5.12R of the Collective Investment Schemes Sourcebook of the Financial Conduct Authority. Ouraudit work has been undertaken so that we might state to the Company’s Shareholders thosematters we are required to state to them in an auditor’s report and for no other purpose. To thefullest extent permitted by law, we do not accept or assume responsibility to anyone other than theCompany and the Company’s Shareholders as a body, for our audit work, for this report, or for theopinions we have formed.

Report on other legal and regulatory requirements

Opinion on other matters prescribed by the Collective Investment SchemesSourcebook

In our opinion:

• proper accounting records for the Company and the sub-funds have been kept and thefinancial statements are in agreement with those records;

• we have received all the information and explanations which, to the best of our knowledgeand belief, were necessary for the purposes of our audit; and

• the information disclosed in the Annual Report for the year ended 30 September 2017 for thepurpose of complying with Paragraph 4.5.9R of the Collective Investment SchemesSourcebook is consistent with the financial statements.

Deloitte LLPStatutory AuditorEdinburgh, United Kingdom

23 January 2018

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Accounting Policies and Financial InstrumentsFor the year ended 30 September 2017

1. Accounting Basis and Policies

(a) Basis of accountingThe Financial Statements have been prepared under the historical cost basis, as modified bythe revaluation of investments and in accordance with Financial Reporting Standard 102(“FRS 102”) and in accordance with the Statement of Recommended Practice (“SORP”) forFinancial Statements of Authorised Funds issued by the Investment Management Association(now known as the Investment Association) in May 2014.

As described in the Certification of Financial Statements by Directors of the ACD on page 5,the ACD continues to adopt the going concern basis in the preparation of the FinancialStatements of the Funds.

(b) Recognition of revenueDividends on quoted equities and preference shares are recognised when the securities arequoted ex-dividend and are recognised net of attributable tax credits.

Rebates of annual management charges (“AMC”) on underlying investments are accountedfor on an accruals basis and recognised as revenue or capital in line with the treatment ofthe charge on the underlying Fund.

Revenue from debt securities is accounted for on an effective yield basis. Accrued interest onpurchase and sale contracts is recognised as revenue and transferred to revenue or capitalas appropriate.

Distributions from Collective Investment Schemes are recognised when the schemes arequoted ex-distribution. Equalisation returned with the distribution is deducted from the costof the investment and does not form part of the distributable revenue.

Interest on bank and other cash deposits is recognised on an accruals basis.

All revenue includes withholding taxes but excludes irrecoverable tax credits.

Any reported revenue from an offshore fund, in excess of any distribution received in thereporting period, is recognised as revenue no later than the date on which the reporting fundmakes this information available.

Returns on derivative transactions have been treated as either revenue or capital dependingon the motives and circumstances on acquisition.

(c) Treatment of stock and special dividendsThe ordinary element of stock dividends received in lieu of cash dividends is credited to capitalin the first instance followed by a transfer to revenue of the cash equivalent being offeredand this forms part of the distributable revenue.

Special dividends are reviewed on a case by case basis in determining whether the dividendis to be treated as revenue or capital. Amounts recognised as revenue will form part of thedistributable revenue. The tax treatment follows the treatment of the principal amount.

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Accounting Policies and Financial Instruments (continued)For the year ended 30 September 2017

1. Accounting Basis and Policies (continued)

(d) Treatment of expensesExpenses of the Funds are charged against revenue except for costs associated with thepurchase and sale of investments which are allocated to the capital of the Funds with theexception of Omnis Multi-Manager Distribution Fund and Omnis Multi-Asset Income Fundwhich charges all expenses to capital.

Rebates on the fees payable to the ACD are accounted for on an accruals basis and recognisedas revenue or capital in line with the treatment of the ACD fee on each fund. Rebates on thefees payable to the ACD are netted off against the expense to which they relate.

(e) Allocation of revenue and expenses to multiple share classes and fundsAny revenue or expenses not directly attributable to a particular share class or fund willnormally be allocated pro-rata to the net assets of the relevant share classes and funds.

(f) TaxationTax is provided for using tax rates and laws which have been enacted or substantively enactedat the balance sheet date.

Corporation tax is provided for on the income liable to corporation tax less deductibleexpenses.

Corporation tax is provided for on realised gains on non-reporting offshore funds lessdeductible expenses. Deferred tax is provided for on unrealised gains on non-reportingoffshore funds less deductible expenses.

Where tax has been deducted from revenue that tax can, in some instances, be set off againstthe corporation tax payable, by way of double tax relief.

Deferred tax is provided using the liability method on all timing differences arising on thetreatment of certain items for taxation and accounting purposes, calculated at the rate atwhich it is anticipated the timing differences will reverse. Deferred tax assets are recognisedonly when, on the basis of available evidence, it is more likely than not that there will betaxable profits in the future against which the deferred tax asset can be offset.

(g) Distribution policyThe net revenue after taxation, as disclosed in the Financial Statements, after adjustmentfor items of a capital nature, is distributable to shareholders as dividend or interestdistributions. Any revenue deficit is deducted from capital at year end.

In addition, portfolio transaction charges will be charged wholly to the capital of all Funds.Accordingly, the imposition of such charges may constrain the capital growth of every Fund.

The ACD has elected to pay all revenue less expenses charged to revenue and taxation as afinal distribution at the end of the annual accounting period.

Interim distributions may be made at the ACD’s discretion and in line with the Prospectus.

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1. Accounting Basis and Policies (continued)

(h) Basis of valuation of investmentsListed investments are valued at close of business prices excluding any accrued interest inthe case of fixed interest securities, on the last business day of the accounting period.

Market value is defined by the SORP as fair value which is the bid value of each security.

Collective Investment Schemes are valued at quoted bid prices for dual priced funds and atquoted prices for single priced funds, on the last business day of the accounting period.

Unlisted or suspended investments are valued by the ACD, taking into account, whereappropriate, latest dealing prices, valuations from reliable sources, financial performance andother relevant factors.

The fair value of derivative instruments is marked to market value. The forward currencycontracts are valued at the prevailing forward exchange rates.

(i) Exchange ratesTransactions in foreign currencies are recorded in Sterling at the rates ruling at the dates ofthe transactions. Assets and liabilities expressed in foreign currencies at the end of theaccounting period are translated into Sterling at the closing mid market exchange rates rulingon that date.

(j) Dilution adjustmentThe ACD may require a dilution adjustment on the sale and redemption of shares if, in itsopinion, the existing shareholders (for sales) or remaining shareholders (for redemptions)might otherwise be adversely affected. In particular, the dilution adjustment may be chargedin the following circumstances: where the scheme property is in continual decline; on a Fundexperiencing large levels of net sales relative to its size; on ‘large deals’; in any case wherethe ACD is of the opinion that the interests of remaining shareholders require the impositionof a dilution adjustment.

(k) EqualisationEqualisation applies only to shares purchased during the distribution period (Group 2 shares).It represents the accrued revenue included in the purchase price of the shares.

After averaging it is returned with the distribution as a capital repayment. It is not liable toincome tax but must be deducted from the cost of the shares for Capital Gains Tax purposes.

(l) DerivativesSome of the Funds may enter into permitted transactions such as derivative contracts orforward foreign currency transactions. Where these transactions are used to protect orenhance revenue, the revenue and expenses are included within net revenue in the Statementof Total Return.

Where the transactions are used to protect or enhance capital, the gains/losses are treatedas capital and included within gains/losses on investments in the Statement of Total Return.Any open positions in these types of transactions at the period end are included in the BalanceSheet at their mark to market value.

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2. Derivatives and other financial instruments

In pursuing the investment objectives a number of financial instruments are held which maycomprise securities and other investments, cash balances and debtors and creditors that arisedirectly from operations. Derivatives, such as futures or forward currency contracts, may beutilised for hedging purposes.

The ACD maintains a detailed Risk Management Policy for identifying, measuring anddocumenting mitigation activities for those risks to which the Funds may be exposed.

Certain Funds are measured using the Value at Risk Methodology and the remainder usingthe Commitment Methodology.

RiskMeasurement Utilisation of the VaR Limit

Fund Method Used Lowest Highest Average

Omnis Managed Adventurous Fund Commitment N/A N/A N/AOmnis Managed Balanced Fund Commitment N/A N/A N/AOmnis Managed Cautious Fund Commitment N/A N/A N/AOmnis Multi-Asset Income Fund Value at Risk 4.89% 5.82% 5.42%Omnis Multi-Manager Adventurous Fund Commitment N/A N/A N/AOmnis Multi-Manager Balanced Fund Commitment N/A N/A N/AOmnis Multi-Manager Cautious Fund Commitment N/A N/A N/AOmnis Multi-Manager Distribution Fund Commitment N/A N/A N/A

None of the Funds using the commitment method employ significant leverage.

The Value at Risk Methodology is Absolute VaR which is the maximum expected loss for thePortfolio over a defined holding period, one month, at a confidence level of 99%. VaR iscalculated using a factor exposure model, based on two years’ historic price data.

(a) Foreign currency riskThe revenue and capital value of the assets of the Funds can be significantly affected bycurrency translation movements.

The ACD has identified three principal areas where foreign currency risk could impact the Funds:

• Movements in rates affect the value of investments

• Movements in rates affect the short term timing differences

• Movements in rates affect the revenue received

There is the risk that the value of such assets and/or the value of any distributions from suchassets may decrease if the underlying currency in which assets are traded falls relative to thebase currency in which Shares of the relevant Fund are valued and priced.

The Funds of the Company are not required to hedge their foreign currency risk, althoughthey may do so through foreign currency exchange contracts, forward contracts, currencyoptions and other methods. To the extent that the Funds of the Company do not hedge theirforeign currency risk or such hedging is incomplete or unsuccessful, the value of the Fundsof the Company’s assets and revenue could be adversely affected by currency exchange ratemovements. There may also be circumstances in which a hedging transaction may reducecurrency gains that would otherwise arise in the valuation of the Funds of the Company incircumstances where no such hedging transactions are undertaken.

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2. Derivatives and other financial instruments (continued)

(b) Interest rate risk profile of financial assets and liabilitiesThe interest rate risk is the risk that the value of the Funds of the Company’s investmentswill fluctuate due to changes in the interest rate. Cashflows from floating rate securities, bankbalances, or bank overdrafts will be affected by the changes in interest rates. As the Fundsof the Company’s objective is to seek capital growth, these cashflows are considered to be ofsecondary importance and are not actively managed. The details of each Funds’ interest raterisk profile is shown in notes 13 or 14 of the individual fund notes.

The Funds of the Company did not have any long term financial liabilities at the balance sheetdate.

(c) Credit riskThe Funds may invest in interest-bearing securities. If any individual company fails to performwell, then the credit rating of that company may fall and the bonds would fall in price as aresult of the perceived increased credit risk. Adhering to investment guidelines and avoidingexcessive exposure to one particular issuer can limit credit risk. The ACD closely monitors theratings of the bonds within the portfolio.

(d) Liquidity riskThe primary source of liquidity risk is the liability to shareholders for any cancellation of shares.The assets of the Funds comprise, in the main, of ready realisable securities, but, subject tothe Regulations, the Funds of the Company may invest up to and including 10% of theScheme Property of the Funds of the Company in transferable securities which are notapproved securities (essentially transferable securities which are admitted to official listing inan EEA state or traded on or under the rules of an eligible securities market). Such securitiesand instruments are generally not publicly traded, may be unregistered for securities lawpurposes and may only be able to be resold in privately negotiated transactions with a limitednumber of purchasers. The difficulties and delays associated with such transactions couldresult in the Funds of the Company’s inability to realise a favourable price upon disposal ofsuch securities, and at times might make disposition of such securities and instrumentsimpossible. To the extent that Funds of the Company invest in such securities and instrumentsthe terms of which are privately negotiated, the terms of these may contain restrictionsregarding resale and transfer.

In addition, certain listed securities and instruments, particularly securities and instrumentsof smaller capitalised or less seasoned issuers, may from time to time lack an active secondarymarket and may be subject to more abrupt or erratic price movements than securities oflarger, more established companies or stock market averages in general. In the absence ofan active secondary market the Funds of the Company’s ability to purchase or sell suchsecurities at a fair price may be delayed.

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(e) Market price riskThe Funds of the Company invest primarily in equities, bonds, units in Collective InvestmentSchemes and derivatives. The values of these investments are not fixed and may go down aswell as up. This may be the result of a specific factor affecting the value of an individualequity or be caused by general market factors (such as government policy or the health ofthe underlying economy) which can affect the entire portfolio. The Investment Manager seeksto minimise these risks by holding a diversified portfolio in line with the objectives of eachFund. In addition, the management of the Funds of the Company complies with the FCA’sCOLL sourcebook, which includes rules prohibiting a holding greater than 20% of assets inany one Fund.

If the market prices had increased or decreased by 10% as at the balance sheet date, thenet asset values of the Funds would have changed by the following amounts. Thesecalculations are applied to non-derivative securities only.

Increase Decrease Fund Name £’000 £’000

Omnis Managed Adventurous Fund 5,216 5,216 Omnis Managed Balanced Fund 20,533 20,533 Omnis Managed Cautious Fund 9,138 9,138 Omnis Multi-Asset Income Fund 17,190 17,190 Omnis Multi-Manager Adventurous Fund 6,392 6,392 Omnis Multi-Manager Balanced Fund 17,076 17,076 Omnis Multi-Manager Cautious Fund 10,332 10,332 Omnis Multi-Manager Distribution Fund 2,816 2,816

(f) Counterparty riskTransactions in securities entered into by the Funds of the Company give rise to exposure tothe risk that the counterparties may not be able to fulfil their responsibility by completingtheir side of the transaction. The Investment Managers minimise this risk by conducting tradesthrough only the most reputable counterparties.

The ACD monitors the Funds’ exposure to individual counterparties and applies limits which maynot be exceeded. The table below shows the counterparty risk as at the balance sheet date:

Exposure Collateral 2017 Counterparty Asset Class £’000 £’000

Omnis Multi-Asset Income Fund Royal Bank Forwards 110 –of Scotland

Omnis Multi-Asset Income Fund State Street Forwards 310 –Bank and Trust

Omnis Multi-Asset Income Fund UBS Forwards 3 –Omnis Multi-Asset Income Fund UBS Options 24 –

Exposure Collateral 2016 Counterparty Asset Class £’000 £’000

Omnis Multi-Asset Income Fund Royal Bank Forwards (126) –of Scotland

Omnis Multi-Asset Income Fund State Street Forwards (8) –Bank and Trust

Omnis Multi-Asset Income Fund UBS Forwards (55) –

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(g) Derivatives and forward transactionsAll of the Funds may use derivatives for the purposes of Efficient Portfolio Management and,where disclosed below, certain of the Funds’ of the Company utilise derivative instrumentsfor investment purposes.

Multi-Asset Income Fund

Forward Foreign Exchange – for the purpose of hedging against the potential negative effectof currency movements on the portfolio.

Future contracts – for the purpose of managing market risk.

(h) Fair value of financial assets and financial liabilitiesThere is no material difference between the value of the financial assets and liabilities, asshown in the balance sheet, and their fair value.

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Omnis Managed Adventurous Fund

Investment Manager’s ReportFor the year ended 30 September 2017

Investment Objective

To achieve capital growth.

Investment Policy

It is expected that exposure to equities will typically make up the majority of the Fund’s assets.However, investments will not be confined to any particular sector.

Exposure will be achieved primarily through investment in collective investment schemes managedby firms in the investment manager’s group of companies. The Fund may also invest in collectiveinvestment schemes managed by other managers, transferable securities, money marketinstruments, warrants and deposits.

Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives mayalso be used for the purposes of hedging and efficient portfolio management.

Investment Review

Over the period the Omnis Managed Adventurous Fund returned 12.49% and the benchmark (40%FTSE All-Share / 15% Russell 1000 / 25% MSCI EAFE Ex-UK / 15% MSCI Emerging Markets / 5%BoA ML Sterling Broad Market) returned 14.17% [source: Financial Express, bid to bid, net incomereinvested].

The Fund made a strong positive return over the year in review, but marginally trailed its compositebenchmark. Being slightly overweight in equities was advantageous in terms of relative performance.However, although the largest equity allocation – the UK – and our US allocation both outperformedtheir respective markets, the emerging market equity allocation lagged its benchmark significantly.Our large Europe ex UK equity exposure also lagged the European market.

The fixed-income holdings in aggregate outperformed the broad sterling bond market, helpingrelative performance, and the Fund also benefited from being underweight here versus thecomposite benchmark in a difficult period for the asset class. The allocation to high-yield bonds inparticular aided relative performance.

In terms of absolute returns, the UK, North American, and Europe ex UK equity allocations madethe strongest contributions, but all the allocations – including fixed income – contributed positively.

In terms of asset-allocation activity, the most significant moves over the period were a reduction inUS equities (chiefly via selling some of the holdings in the Threadneedle American and AmericanSelect fund) and an increase in exposure to European ex UK equities (notably by purchasing somemore of the European Fund). Following the very strong rally in US stocks that began when DonaldTrump won the presidential election, we felt that the market was factoring in reflationary policies thatmight be significantly delayed or indeed never enacted. European valuations appear relativelyattractive, economic activity and corporate earnings in the region have been strong, and interest ratesare not yet rising in the eurozone, unlike in the US.

We were also net buyers of emerging market equities (Global Emerging Markets Equity Fund), wherethe underperformance of the allocation versus other areas of the fund had led to a drop in exposureas a proportion of net asset value (NAV). The weighting here finished the year slightly above the levelat which it began. Emerging markets face challenges from potential US protectionism under DonaldTrump but should benefit from a recovery in commodity prices and signs that the Chinese economymay be stabilising. Aside from taking some profits in high-yield credit (High Yield Bond Fund), wherespreads have compressed, we made no other asset allocation adjustments to our fixed incomeexposure. Nevertheless, these allocations fell modestly as a percentage of NAV as a result of additionsand stronger performance in other areas of the portfolio.

Investment Manager’s Report (continued)For the year ended 30 September 2017

Market Overview

Global equities rose strongly over the year, while bonds weakened in aggregate. The primary driversof markets were political in nature. In late 2016 and early 2017, equities rallied sharply in responseto Trump’s shock election victory and the growing conviction that his policies would boost USeconomic growth. This was also the main reason for the weakness in bonds: increased appetite forriskier assets saw investors shun safe havens such as core government bonds, as did the expectationthat the Federal Reserve would quicken the pace of interest-rate rises to counter higher US inflation.

As 2017 progressed, optimism faded about president Trump’s ability to deliver on his reform agenda.Investors were also unsettled by increasing tensions between the US and North Korea, and morehawkish signals from the Bank of England and the European Central Bank. Overcoming this,however, risk assets continued to be supported by strong company earnings and broadlyencouraging global economic data, particularly from the eurozone. There was also growingconfidence about the EU’s political future, given eurosceptic defeats in key elections in theNetherlands and France. At the very end of the period, the so-called “Trump trade” resurfaced, ashopes of US tax reform buoyed investors’ appetite for risk.

Outlook

With electoral risks in the eurozone now diminished, the sea-change in corporate fundamentals ismore likely to be appreciated. Earnings reports for the first two quarters have been strong, andthe operational leverage attached to European firms looks likely to turn from a drag to anadvantage for investors amid the gentle reflation that we expect. The uncertainty over Brexitcontinues to present risks to the UK economy and companies.

Meanwhile, we have become more upbeat on China: domestic consumption continues to driveGDP, the property market is less troubling and the current account is also less of a concern.

The Fund continues to provide exposure to a mix of UK and international equity markets, and weremain overweight in emerging market, Asian and Japanese equities. A key development over theyear in review has been our move from an underweight to an overweight in European equities, forthe reasons described above.

The Fund has only modest exposure to fixed income and remains underweight here. We preferhigh-yield corporate and emerging market bonds as we feel the additional yield compared withcore government debt more than compensates for the extra risk.

Investment ManagerThreadneedle Asset Management Limited17 October 2017

19


20


B Income30/09/2017 30/09/16 30/09/15

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 129.16 107.86 107.70Return before operating charges* 19.93 24.39 2.93Operating charges (1.24) (1.07) (1.03)Return after operating charges 18.69 23.32 1.90

Distributions (2.23) (2.02) (1.74)Retained distributions on accumulation shares – – –

Closing net asset value per share 145.62 129.16 107.86

* after direct transaction costs of: 0.00 0.00 0.00

PerformanceReturn after operating charges 14.47% 21.62% 1.76%

Other informationClosing net asset value (£’000) 3,642 3,095 2,025Closing number of shares 2,500,760 2,396,231 1,877,505Operating charges 0.89% 0.91% 0.90%Direct transaction costs 0.00% 0.00% 0.00%

Prices (p)Highest share price 149.41 132.18 123.79Lowest share price 125.73 104.07 101.43

Share class A Accumulation closed on 5 August 2016 and were removed from the ComparativeTable. Therefore the sum of the Net Asset Values for 30 September 2016 will not equal the NetAsset Value on the Balance Sheet.

Comparative TableAs at 30 September 2017

B Accumulation30/09/17 30/09/16 30/09/15

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 262.99 216.09 212.49 Return before operating charges* 40.73 49.05 5.63 Operating charges (2.53) (2.15) (2.03)Return after operating charges 38.20 46.90 3.60

Distributions (4.55) (4.06) (3.44)Retained distributions on accumulation shares 4.55 4.06 3.44 Closing net asset value per share 301.19 262.99 216.09





Comparative Table (continued)As at 30 September 2017

21


22


Operating ChargeRebates

Synthetic from TotalOther expense underlying Transaction operating

AMC expenses ratio funds costs chargeDate (%) (%) (%) (%) (%) (%)

30/09/17Share Class B Income 0.75 0.06 1.06 (0.99) 0.01 0.89Share Class B Accumulation 0.75 0.06 1.06 (0.99) 0.01 0.89


The Operating Charge is the ratio of the Fund's total disclosable costs (excluding overdraft interest)to the average net assets of the Fund. When a Fund invests a substantial proportion of its assetsin other UCITS or Collective Investment Undertakings (CIU), the operating charge shall take accountof the ongoing charges incurred in the underlying CIUs and disclose as a Synthetic expense ratio.

• This indicator is based on historical data and may not be a reliable indication of the futurerisk profile of the Fund.

• The risk category shown is not guaranteed to remain unchanged and may shift over time.

• The risk and reward indicator table demonstrates where a Fund ranks in terms of its potentialrisk and return. The higher the rank the greater the potential reward but the greater the riskof losing money. The lowest category does not mean 'risk free'.

• The Fund appears as a “5” on the scale. This is because the Fund invests in assets that typicallycarry medium risk and offer medium rewards compared with other categories of assets.

Risk Warning

An investment in an Open Ended Investment Company should be regarded as a medium to longterm investment. Investors should be aware that the price of Shares and the income from themmay fall as well as rise and investors may not receive back the full amount invested. Pastperformance is not a guide to future performance. Investments denominated in currencies otherthan the base currency of a Fund are subject to fluctuation in exchange rates, which may befavourable or unfavourable.

Risk and Reward ProfileAs at 30 September 2017

Share Class B 1 2 3 4 5 6 7

Typically lower rewards Typically higher rewards

Higher riskLower risk5

Performance InformationAs at 30 September 2017

Holdingsor Nominal Market value % of TotalValue Investments £’000 Net Assets

Collective Investment Schemes 98.71% [99.40%]746,645 Threadneedle American 2,252 4.26 327,494 Threadneedle American Extended Alpha 1,204 2.28 899,426 Threadneedle American Select 2,835 5.36 763,066 Threadneedle Asia 1,785 3.38 62,119 Threadneedle Emerging Market Bond 167 0.32 245,612 Threadneedle Emerging Market Local 225 0.43 660,388 Threadneedle European 1,741 3.29

1,075,121 Threadneedle European Select 3,615 6.84 70,098 Threadneedle European Smaller Companies 654 1.24

6,729,302 Threadneedle Global Emerging Markets Equity 8,053 15.24 818,176 Threadneedle Global Equity Income 1,126 2.13 261,625 Threadneedle Global Extended Alpha 720 1.36 147,384 Threadneedle High Yield Bond 262 0.50

6,218,138 Threadneedle Japan 4,062 7.69 57,867 Threadneedle Latin America 145 0.27 8,546 Threadneedle Lux Asian Equity Income 501 0.95

739,785 Threadneedle Pan European Focus 2,026 3.83 4,722,945 Threadneedle UK 6,652 12.59

90,907 Threadneedle UK Corporate Bond 108 0.20 5,460,340 Threadneedle UK Equity Alpha Income 4,014 7.60 857,301 Threadneedle UK Extended Alpha 4,225 8.00 179,561 Threadneedle UK Mid 250 517 0.98

3,373,069 Threadneedle UK Select 4,425 8.37 247,863 Threadneedle UK Smaller Companies 844 1.60

52,158 98.71

Portfolio of investments 52,158 98.71 Net other assets 684 1.29 Net assets 52,842 100.00

The investments have been valued in accordance with note 1(h) of the Accounting Policies and Financial Instruments.

All investments are Collective Investment Schemes unless otherwise stated. They are Threadneedle Group Investments,made under standard commercial terms with no initial charge applied.

Comparative figures shown above in square brackets relate to 30 September 2016.

Gross purchases for the year: £6,956,000 [2016: £9,111,000].

Total sales net of transaction costs for the year: £6,611,000 [2016: £8,972,000].

23


Portfolio StatementAs at 30 September 2017

24


Statement of Total ReturnFor the year ended 30 September 2017

01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 5,897 7,649 Revenue 3 1,216 1,088

Expenses 4 (404) (349)Net revenue before taxation 812 739 Taxation 5 (31) (29)Net revenue after taxation 781 710Total return before distributions 6,678 8,359Distributions 6 (799) (733)Change in net assets attributable to Shareholders from investment activities 5,879 7,626

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000

Opening net assets attributable to Shareholders 45,953 38,130

Amounts receivable on issue of Shares 6,159 6,829 Amounts payable on cancellation of Shares (5,894) (7,305)

265 (476)Change in net assets attributable to Shareholders from investment activities (see above) 5,879 7,626

Retained distributions on accumulation Shares 745 673

Closing net assets attributable to Shareholders 52,842 45,953

Statement of Change in Net Assets Attributable to ShareholdersFor the year ended 30 September 2017

30/09/17 30/09/16Note £’000 £’000 £’000 £’000

Assets:Fixed assets:Investments 52,158 45,675

Current assets:Debtors 7 684 398 Cash and bank balances 8 128 105

Total current assets 812 503 Total assets 52,970 46,178 Liabilities:Creditors:Distribution payable (34) (30)Other creditors 9 (94) (195)

Total creditors (128) (225)Total liabilities (128) (225)Net assets attributableto Shareholders 52,842 45,953

25


Balance SheetAs at 30 September 2017

26


Notes to the Financial StatementsFor the year ended 30 September 2017


The Fund's Financial Statements have been prepared on the basis detailed on pages 11 to 16.

2. Net capital gains01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

The net capital gains during the year comprise:Currency gains/(losses) – (1)Non-derivative securities 5,842 7,604 Rebates received from underlying funds 58 51Transaction charges (3) (5)Net capital gains 5,897 7,649

3. Revenue01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Franked dividends from Collective Investment Schemes 712 670 Interest income from Collective Investment Schemes 40 26Offshore funds dividends 20 9Overseas dividends 13 25Rebates received from underlying funds 431 358Total revenue 1,216 1,088

Notes to the Financial Statements (continued)For the year ended 30 September 2017

4. Expenses01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Payable to the ACD, associates of the ACD,and agents of either of them

AMC fees 373 320373 320

Payable to the Depositary, associates of theDepositary and agents of either of them

Depositary fees 14 11Safe custody fees 3 2

17 13Other expensesAudit fees 9 9Professional fees 4 5Publication fees 1 2

14 16Total expenses 404 349

Audit fees are £7,700 ex VAT (2016: £7,550).

27


28



5. Taxation

(a) Analysis of the tax charge in the year01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Corporation tax 25 17Deferred tax (Note 5 (c)) 6 12Total taxation for the year (Note 5 (b)) 31 29

(b) Factors affecting the tax charge for the year

The tax assessed for the year is different from that calculated when the standard rate ofcorporation tax for an open ended investment company of 20% (2016: 20%) is applied tothe net revenue before taxation. The differences are explained below:

01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 812 739 Net revenue for the year multiplied by thestandard rate of corporation tax 162 148

Effects of:Capital income subject to taxation 6 12Rebated capital expenses deductible for tax purposes 12 10Revenue not subject to corporation tax (149) (141)Total tax charge for the year 31 29

OEICs are exempt from tax on capital gains in the UK. Therefore, any capital return is not included within thereconciliation above.

(c) Deferred tax01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Provision at start of the year 12 –Deferred tax charge in the year 6 12 Provision at the end of the year 18 12

29



6. Distributions

The distributions take account of revenue received on the creation of Shares and revenuededucted on the cancellation of Shares, and comprise:

01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Interim 306 275Final 494 444Add: Revenue paid on cancellation of Shares 23 37Deduct: Revenue received on creation of Shares (24) (23)Net distribution for the year 799 733Reconciliation of net revenue aftertaxation to distributions

Net revenue after taxation 781 710Equalisation on conversion of Shares – 1Tax relief from capital* 18 22Net distribution for the year 799 733

* Tax relief has arisen whereby excess revenue expenses have been utilised to reduce the tax arising on offshorecapital gains and capital rebates from underlying funds.

Details of the distributions per Share are set out in the distribution tables on page 33.

7. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 199 157 Amounts due for rebates from underlying funds 135 110 Amounts receivable for creation of Shares 349 88 Income tax recoverable 1 –Sales awaiting settlement – 43Total debtors 684 398

8. Cash and bank balances30/09/17 30/09/16

£’000 £’000

Cash and bank balances 128 105Total cash and bank balances 128 105

30



9. Other creditors30/09/17 30/09/16

£’000 £’000

Amounts payable for cancellation of Shares – 41 Corporation tax payable 25 17 Deferred tax payable 18 12 Purchases awaiting settlement – 85

43 155Accrued expensesManager and AgentsAMC fees 33 28

33 28 Depositary and AgentsDepositary fees 2 1Safe custody fees 2 –Transaction charges 4 1

8 2Other accrued expensesAudit fees 9 9Publication fees 1 1

10 10Total other creditors 94 195

10. Related party transactions

Management fees paid to the ACD, are disclosed in note 4 and amounts due at the year endare disclosed in note 9.

Monies received and paid by the ACD through the creation and cancellation of Shares aredisclosed in the Statement of Change in Net Assets Attributable to Shareholders and amountsdue at the year end are disclosed in notes 7 and 9.

The ACD and its associates (including other authorised investment funds managed by theACD) have no Shareholdings in the Company at the year end.

Significant Shareholdings

As at the balance sheet date, the following had significant Shareholdings within the Fund:

Shareholders 30/09/17 (%)

Sterling ISA Managers (Nominees) Limited 38.70%Scottish Equitable Plc 28.50%


11. Share Classes

The Share Classes and ACD’s Annual Management Charges applicable to each Share Classare as follows:

%

Share Class B Income 0.75Share Class B Accumulation 0.75

Each Share Class has equal rights in the event of the wind up of any fund.

The reconciliation of the opening and closing numbers of shares of each class is shown below:

30/09/16 Issued Cancelled Converted 30/09/17

Share Class B Income 2,396,231 571,151 (466,622) – 2,500,760Share Class B Accumulation 16,296,356 1,874,102 (1,835,455) – 16,335,003

12. Capital commitments and contingent liabilities

There were no contingent liabilities or outstanding commitments at the balance sheet date(2016: nil).


The main risks from the Fund’s holding of financial instruments, together with the ACD’s policyfor managing these risks, are disclosed in note 2 on page 14 of the report.

(a) Foreign currency risk

A proportion of the financial net assets of the Fund are denominated in currencies other thanSterling with the effect that the balance sheet and total return can be affected bycurrency movements.

The Fund holds an insignificant foreign currency exposure at 30 September 2017 therefore acurrency table has not been disclosed.

Changes in exchange rates would have no material impact on the valuation of foreign currencyfinancial assets or liabilities as at the balance sheet date. Consequently, no sensitivity analysishas been presented.

(b) Interest rate risk profile of financial assets and liabilities

The Fund does not invest in either fixed or floating rate securities and interest rate riskexposure is restricted to interest receivable on bank deposits or payable on bank overdraftpositions which will be affected by fluctuations in interest rates.

As at 30 September 2017, 0.24% of the Fund’s assets were interest bearing (2016: 0.23%).

Changes in interest rates would have no material impact on the valuation of floating ratefinancial assets or liabilities as at the balance sheet date. Consequently, no sensitivity analysishas been presented.


31

32



14. Portfolio transaction costs

As the Fund only invests in Collective Investment Schemes, there are no associated brokertransaction costs.

At the balance sheet date the average portfolio dealing spread was 0.00% (2016: 0.08%).

15. Post balance sheet events

There are no post balance sheet events which require adjustments at the year end.

16. Fair value disclosure30/09/17 30/09/16

Assets Liabilities Assets Liabilities Valuation technique £’000 £’000 £’000 £’000

Level 1: The unadjusted quotedprice in an active market foridentical assets or liabilities – – 903 –

Level 2: Inputs other than quotedprices included within Level 1that are observable for theasset or liability, either directlyor indirectly 52,158 – 44,772 –

Level 3: Inputs are unobservable(ie for which market data isunavailable) for the assetor liability – – – –

52,158 – 45,675 –

33


Interim Distribution in pence per Share

Group 1 Shares purchased prior to 1 October 2016Group 2 Shares purchased on or after 1 October 2016 to 31 March 2017

Distribution DistributionNet paid paid

revenue Equalisation 31/05/17 31/05/16(p) (p) (p) (p)

Share Class B IncomeGroup 1 0.8532 – 0.8532 0.7573Group 2 0.4677 0.3855 0.8532 0.7573

Share Class B AccumulationGroup 1 1.7373 – 1.7373 1.5174Group 2 1.0497 0.6876 1.7373 1.5174

Final Distribution in pence per Share

Group 1 Shares purchased prior to 1 April 2017Group 2 Shares purchased on or after 1 April 2017 to 30 September 2017

Distribution DistributionNet payable paid




Distribution TableAs at 30 September 2017

34

Omnis Managed Balanced Fund



Investment Policy

It is expected that there will be an emphasis on exposure to equities and fixed interest investments.However, investments will not be confined to any particular sector.



Investment Review

Over the period the Omnis Managed Balanced Fund returned 8.72% and the benchmark (30% FTSEAll-Share / 20% BoA ML Sterling Broad Market / 15% Russell 1000 / 15% MSCI EAFE Ex-UK / 10%MSCI Emerging Markets / 5% GBP LIBOR 3-month / 5% BoA ML Global Broad Market) returned10.56% [source: Financial Express, bid to bid, net income reinvested].

The Fund made a positive return over the year in review. Being slightly overweight in equities wasadvantageous in terms of relative performance. Further, the two largest equity allocations – the UKand US – outperformed their respective markets, as did the Japanese equity allocation. Theemerging market equity allocation lagged its benchmark significantly, and European ex UK equitiesalso underperformed in relative terms.

Our UK fixed income holdings in aggregate outperformed the broad sterling bond market, helpingrelative performance, and the Fund also benefited from being underweight here versus thecomposite benchmark in a difficult period for the asset class. The allocation to high-yield bonds inparticular aided relative returns.

In terms of absolute returns, all the equity allocations added value, with the strongest contributionscoming from the UK and North America. Fixed income holdings detracted in aggregate, largelybecause of exposure to developed government bonds.

In terms of asset allocation activity, significant moves over the period included a reduction in exposureto US equities (notably via selling some of the holding in the Threadneedle American Fund) and anincrease in exposure to European ex UK equities (by adding to the European Fund). Following thevery strong rally in US stocks that began when Donald Trump won the presidential election, we feltthat the market was factoring in reflationary policies that might be significantly delayed or indeednever enacted.

European valuations appear relatively attractive, economic activity and corporate earnings in theregion have been strong, and interest rates are not yet rising in the eurozone, unlike in the US.Within the UK, we reduced exposure to a strategy focused on quality brands (UK Select Trust) andchannelled the proceeds into a more growth-oriented strategy (UK Fund) fund.


Investment Review (continued)

We were also net buyers of emerging market equities (Global Emerging Market Equity Fund), wherethe underperformance of the allocation versus other areas of the fund had led to a drop in exposureas a proportion of net asset value (NAV). The proportional weighting here finished the year aroundthe level at which it began. We also added modestly to Asian ex Japan equities (Asia Fund). Asianand emerging markets face challenges from potential US protectionism under Trump but shouldbenefit from a recovery in commodity prices and signs that the Chinese economy may be stabilising.Aside from taking some profits in high-yield credit (High Yield Bond Fund), where spreads havecompressed, we made no other asset allocation adjustments to the fixed income exposure.Nevertheless, these allocations fell modestly as a percentage of NAV as a result of additions andstronger performance in other areas of the portfolio.

Market Overview

Global equities rose strongly over the year, while bonds weakened in aggregate. The primary driversof markets were political in nature. In late 2016 and early 2017, equities rallied sharply in responseto Trump’s shock election victory and the growing conviction that his policies would boost USeconomic growth. This was also the main reason for the weakness in bonds: increased appetite forriskier assets saw investors shun safe havens such as core government bonds, as did the expectationthat the Federal Reserve would quicken the pace of interest-rate rises to counter higher US inflation.

As 2017 progressed, optimism faded about president Trump’s ability to deliver on his reform agenda.Investors were also unsettled by increasing tensions between the US and North Korea, and morehawkish signals from the Bank of England and the European Central Bank. Overcoming this,however, risk assets continued to be supported by strong company earnings and broadlyencouraging global economic data, particularly from the eurozone. There was also growingconfidence about the EU’s political future, given eurosceptic defeats in key elections in theNetherlands and France. At the very end of the period, the so-called “Trump trade” resurfaced, ashopes of US tax reform buoyed investors’ appetite for risk.

Outlook

With electoral risks in the eurozone now diminished, the sea-change in corporate fundamentals ismore likely to be appreciated. Earnings reports for the first two quarters have been strong, and theoperational leverage attached to European firms looks likely to turn from a drag to an advantagefor investors amid the gentle reflation that we expect. The uncertainty over Brexit continues topresent risks to the UK economy and companies.

Meanwhile, we have become more upbeat on China: domestic consumption continues to drive GDP,the property market is less troubling and the current account is also less of a concern.

The Fund is overweight in emerging market, Asian and Japanese equities. However, the largestregional overweight is the exposure to European equities, for the reasons described above.Meanwhile, we remain underweight fixed income. Here, we are most optimistic about the outlookfor high-yield corporate and emerging market bonds as we feel the additional yield compared withcore government debt more than compensates for the extra risk.


35



36


B Income30/09/17 30/09/16 30/09/15

(p) (p) (p)


Distributions (1.83) (1.69) (1.73)Retained distributions

on accumulation shares – – –Closing net asset value per share 135.53 124.71 106.16


PerformanceReturn after

operating charges 10.15% 19.07% 2.05%





B Accumulation30/09/17 30/09/16 30/09/15

(p) (p) (p)


Distributions (3.54) (3.22) (3.26)Retained distributions on accumulation shares 3.54 3.22 3.26Closing net asset value per share 264.77 240.33 201.76





37



38


Operating ChargeSynthetic Rebates from Total

Other expense underlying Transaction operatingAMC expenses ratio funds costs charge

Date (%) (%) (%) (%) (%) (%)



The Operating Charge is the ratio of the Fund’s total disclosable costs (excluding overdraft interest)to the average net assets of the Fund. When a Fund invests a substantial proportion of its assetsin other UCITS or Collective Investment Undertakings (CIU), the operating charge shall take accountof the ongoing charges incurred in the underlying CIUs and disclose as a Synthetic expense ratio.

• This indicator is based on historical data and may not be a reliable indication of the future riskprofile of the Fund.


• The risk and reward indicator table demonstrates where a Fund ranks in terms of its potentialrisk and return. The higher the rank the greater the potential reward but the greater the risk oflosing money. The lowest category does not mean ‘risk free’.


Risk WarningAn investment in an Open Ended Investment Company should be regarded as a medium to longterm investment. Investors should be aware that the price of Shares and the income from themmay fall as well as rise and investors may not receive back the full amount invested. Pastperformance is not a guide to future performance. Investments denominated in currencies otherthan the base currency of a Fund are subject to fluctuation in exchange rates, which may befavourable or unfavourable.








Collective Investment Schemes 98.67% [98.52%]4,266,344 Threadneedle American 12,866 6.18

34,631 Threadneedle American Absolute Alpha 822 0.39 1,104,122 Threadneedle American Extended Alpha 4,061 1.95 3,071,989 Threadneedle American Select 9,683 4.65 2,271,114 Threadneedle Asia 5,313 2.55 625,531 Threadneedle Emerging Market Bond 1,679 0.81 686,321 Threadneedle Emerging Market Local 1,196 0.58

2,350,598 Threadneedle European 6,197 2.98 1,690,408 Threadneedle European Select 5,683 2.73

52,708 Threadneedle European Smaller Companies 492 0.24 6,750,521 Threadneedle Global Bond 6,939 3.33

18,364,634 Threadneedle Global Emerging Markets Equity 21,977 10.56 3,165,858 Threadneedle Global Equity Income 4,355 2.09

78,607 Threadneedle Global Opportunities Bond 1,205 0.58 1,182,349 Threadneedle High Yield Bond 2,105 1.01

16,449,341 Threadneedle Japan 10,745 5.16 12,452 Threadneedle Lux Asian Equity Income 731 0.35 26,282 Threadneedle Lux Global Smaller Companies 904 0.44

5,870,630 Threadneedle Navigator Income Trust 6,880 3.31 2,978,037 Threadneedle Pan European Focus 8,155 3.92 5,501,130 Threadneedle Sterling 5,490 2.64

33,693,635 Threadneedle Sterling Bond 19,054 9.16 5,102,410 Threadneedle Sterling Short Dated Corporate Bond 5,480 2.63

18,056,472 Threadneedle UK 25,431 12.22 888,889 Threadneedle UK Absolute Alpha 1,240 0.60 369,551 Threadneedle UK Corporate Bond 438 0.21

7,526,510 Threadneedle UK Equity Income 8,247 3.96 2,327,496 Threadneedle UK Extended Alpha 11,469 5.51 555,229 Threadneedle UK Mid 250 1,598 0.77

9,860,319 Threadneedle UK Select 12,936 6.22 575,404 Threadneedle UK Smaller Companies 1,959 0.94

205,330 98.67

Portfolio of investments 205,330 98.67 Net other assets 2,778 1.33Net assets 208,108 100.00






39


40


Statement of Change in Net Assets Attributable to Shareholders For the year ended 30 September 2017

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000

Opening net assetsattributable to Shareholders 184,163 160,715

Amounts receivable on issue of Shares 28,678 17,941

Amounts payable on cancellation of Shares (23,581) (24,636)

5,097 (6,695)Change in net assets attributable

to Shareholders from investment activities (see above) 16,298 27,846

Retained distributions on accumulation Shares 2,550 2,297


01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 16,389 27,948Revenue 3 4,470 4,006

Expenses 4 (1,566) (1,378)Interest payable and similar charges 5 – (2)Net revenue before taxation 2,904 2,626Taxation 6 (234) (217)Net revenue after taxation 2,670 2,409Total return before distributions 19,059 30,357Distributions 7 (2,761) (2,511)Change in net assets attributable to Shareholdersfrom investment activities 16,298 27,846


30/09/17 30/09/16Note £’000 £’000 £’000 £’000

Assets:Fixed assets:

Investments 205,330 181,433

Current assets:Debtors 8 1,737 2,292Cash and bank balances 9 1,538 1,115

Total current assets 3,275 3,407Total assets 208,605 184,840Liabilities:

Creditors:Distribution payable (149) (128)Other creditors 10 (348) (549)

Total creditors (497) (677)Total liabilities (497) (677)Net assets attributable to Shareholders 208,108 184,163

41



42



The Fund’s Financial Statements have been prepared on the basis detailed on pages 11 to 16.


£’000 £’000

The net capital gains during the year comprise:Currency gains/(losses) – (15)Non-derivative securities 15,966 27,584Rebates received from underlying funds 426 382Transaction charges (3) (3)Net capital gains 16,389 27,948

3. Revenue01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Bank interest – 1Franked dividends from Collective Investment Schemes 2,098 1,904Interest income from Collective Investment Schemes 843 765Offshore funds dividends 63 19Overseas dividends 60 119Rebates received from underlying funds 1,406 1,198Total revenue 4,470 4,006



4. Expenses01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Payable to the ACD, associates of the ACD, and agents of either of them

AMC fees 1,482 1,3051,482 1,305

Payable to the Depositary, associates of the Depositary and agents of either of them



18 19Total expenses 1,566 1,378


5. Interest payable and similar charges01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Interest – 2Total interest payable and similar charges – 2

43


44



6. Taxation01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

(a) Analysis of the tax charge in the year

Corporation tax 228 197Deferred tax (Note 6 (c)) 6 20Total taxation for the year (Note 6 (b)) 234 217



01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 2,904 2,626Net revenue for the year multiplied by

the standard rate of corporation tax 581 525Effects of:Capital income subject to taxation 6 20Rebated capital expenses deductible for tax purposes 85 76Revenue not subject to corporation tax (438) (404)Total tax charge for the year 234 217



£’000 £’000

Provision at start of the year 20 –Deferred tax charge in the year 6 20Provision at the end of the year 26 20


7. Distributions


01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Interim 1,072 926Final 1,717 1,571Add: Revenue paid on cancellation of Shares 46 67Deduct: Revenue received on creation of Shares (74) (53)Net distribution for the year 2,761 2,511

Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 2,670 2,409Equalisation on conversion of Shares – 6Tax relief from capital* 91 96Net distribution for the year 2,761 2,511



8. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 894 760Amounts due for rebates from underlying funds 502 437Amounts receivable for creation of Shares 310 82Income tax recoverable 30 83Sales awaiting settlement – 929Prepaid expenses 1 1Total debtors 1,737 2,292


£’000 £’000

Cash and bank balances 1,538 1,115Total cash and bank balances 1,538 1,115

45


46



10. Other creditors30/09/17 30/09/16

£’000 £’000

Amounts payable for cancellation of Shares 17 191Corporation tax payable 148 174Deferred tax payable 26 20Purchases awaiting settlement – 35


128 113Depositary and AgentsDepositary fees 10 4Safe custody fees 7 1Transaction charges 2 1





Monies received and paid by the ACD through the creation and cancellation of Shares aredisclosed in the Statement of Change in Net Assets Attributable to shareholders and amountsdue at the year end are disclosed in notes 8 and 10.





Sterling ISA Managers (Nominees) Limited 40.50%


12. Share Classes


%





Share Class B Income 11,919,558 2,920,103 (1,651,216) – 13,188,445Share Class B Accumulation 70,444,399 9,819,900 (8,416,596) – 71,847,703






A proportion of the financial net assets of the Fund are denominated in currencies other thanSterling with the effect that the balance sheet and total return can be affected by currencymovements.







47


48








Assets Liabilities Assets LiabilitiesValuation technique £’000 £’000 £’000 £’000

Level 1: The unadjusted quoted price in an active market foridentical assets or liabilities – – 3,990 –

Level 2: Inputs other than quoted prices included within Level 1that are observable for theasset or liability, either directlyor indirectly 205,330 – 177,443 –

Level 3: Inputs are unobservable (ie for which market data isunavailable) for the assetor liability – – – –

205,330 – 181,433 –


49















50

Omnis Managed Cautious Fund



Investment Policy

It is expected that exposure to cash, cash equivalents and fixed income investments will make upthe majority of the Fund’s assets. However, investments will not be confined to any particular sector.



Investment Review

Over the period the Omnis Managed Cautious Fund returned 3.72% and the benchmark (35% BoAML Sterling Broad Market / 20% FTSE All-Share / 15% BoA ML Global Broad Market / 10% Russell1000 / 10% MSCI EAFE Ex-UK / 10% GBP LIBOR 3-month) returned 4.69% [source: FinancialExpress, bid to bid, net income reinvested].

The Fund made a solid positive return over the year in review. Being slightly overweight in equitieswas advantageous in terms of relative performance. Further, the two largest equity allocations –namely the UK and US – outperformed their respective markets, as did Japan. European ex UKequity and Asia ex Japan equity holdings lagged their regional markets.

The fixed income holdings in aggregate outperformed the composite benchmark, helping relativeperformance, and the Fund also benefited from being underweight here in a difficult period for theasset class. The allocation to high-yield bonds in particular aided relative returns.

In terms of absolute returns, UK and North American equities made the strongest contributions,but all the equity allocations contributed positively. Our fixed income allocations detracted inaggregate, largely because of exposure to developed government bonds.

In terms of asset allocation activity, significant moves over the period included a reduction inexposure to US equities (chiefly by trimming the holdings in the American and American Selectfunds) and an increase in exposure to European ex UK (where we added to the European Fund).Following the very strong rally in US stocks that began when Donald Trump won the US presidentialelection, we felt that the market was factoring in reflationary policies that might be significantlydelayed or indeed never enacted.

European valuations appear relatively attractive - economic activity and corporate earnings in theregion have been strong and interest rates are not yet rising in the eurozone, unlike in the US. Inthe UK, we reduced exposure to strategies focused on income (UK Equity Income Fund) and qualitybrands and channelled the proceeds into a more growth-oriented fund (UK Fund).

We were also net buyers of Asian equities (Asia Fund). Asian and emerging markets face challengesfrom potential US protectionism under Trump but should benefit from a recovery in commodityprices and signs that the Chinese economy may be stabilising.



Within fixed income, we made only three asset allocation trades over the period: we added to UKinvestment-grade corporate bonds (UK Corporate Bond Fund) in November, and we reducedexposure to high-yield bonds (High Yield Bond Fund) in July and September, realising some profits.The overall allocation to fixed income fell modestly as a percentage of net asset value, though thiswas mainly a result of additions and stronger performance in other areas of the portfolio.

Market Overview

Global equities rose strongly over the year, while bonds weakened in aggregate. The primary driversof markets were political in nature. In late 2016 and early 2017, equities rallied sharply in responseto Trump’s shock election victory and the growing conviction that his policies would boost USeconomic growth. This was also the main reason for the weakness in bonds: increased appetite forriskier assets saw investors shun safe-havens such as core government bonds, as did theexpectation that the Federal Reserve would quicken the pace of interest rate rises to counter higherUS inflation.

As 2017 progressed, optimism faded about Trump’s ability to deliver on his reform agenda. Investorswere also unsettled by increasing tensions between the US and North Korea, and more hawkishsignals from the Bank of England and the European Central Bank. Overcoming this, however, riskassets continued to be supported by strong company earnings and broadly encouraging globaleconomic data, particularly from the eurozone. There was also growing confidence about the EU’spolitical future, given eurosceptic defeats in key elections in the Netherlands and France. At thevery end of the period, the so-called “Trump trade” resurfaced, as hopes of US tax reform buoyedinvestors’ appetite for risk.

Outlook

With electoral risks in the eurozone now diminished, the sea-change in corporate fundamentals ismore likely to be appreciated. Earnings reports for the first two quarters have been strong, and theoperational leverage attached to European firms looks likely to turn from a drag to an advantagefor investors amid the gentle reflation that we expect. The uncertainty over Brexit continues topresent risks to the UK economy and companies.

Meanwhile, we have become more upbeat on China: domestic consumption continues to drive GDP,the property market is less troubling and the current account is also less of a concern.

Within the Fund, the largest regional equity overweights remain Europe ex UK, for the reasonsdescribed above, and Japan, where companies have been improving corporate governance andprofitability. Within fixed income, where we are still underweight, we retain significant exposure tocorporate and emerging market bonds as we believe the additional yield versus core governmentdebt more than justifies the extra risk.


51



52


B Income30/09/17 30/09/16 30/09/15

(p) (p) (p)










B Accumulation30/09/17 30/09/16 30/09/15

(p) (p) (p)



* after direct transaction costs of : 0.00 0.00 0.00




53



54


Operating ChargeSynthetic Rebates from Total


Date (%) (%) (%) (%) (%) (%)







• The Fund appears as a "4" on the scale. This is because the Fund invests in assets that typicallycarry medium risk and offer medium rewards compared with other categories of assets.






Performance Information As at 30 September 2017


Collective Investment Schemes 98.97% [97.68%]810,015 Threadneedle American 2,443 2.64 24,078 Threadneedle American Absolute Alpha 572 0.62 530,961 Threadneedle American Extended Alpha 1,953 2.11 690,371 Threadneedle American Select 2,176 2.36 525,297 Threadneedle Asia 1,229 1.33 275,182 Threadneedle Emerging Market Bond 739 0.80 313,010 Threadneedle Emerging Market Local 545 0.59

1,234,260 Threadneedle European 3,254 3.52 592,470 Threadneedle European Select 1,992 2.16 24,835 Threadneedle European Smaller Companies 232 0.25

9,818,937 Threadneedle Global Bond 10,093 10.93 315,884 Threadneedle Global Emerging Markets Equity 378 0.41

2,489,127 Threadneedle Global Equity Income 3,424 3.71 70,637 Threadneedle Global Opportunities Bond 1,083 1.17 536,136 Threadneedle High Yield Bond 954 1.03

5,158,422 Threadneedle Japan 3,369 3.65 12,694 Threadneedle Lux Asian Equity Income 745 0.81 15,732 Threadneedle Lux Global Smaller Companies 541 0.59

4,803,365 Threadneedle Navigator Income Trust 5,630 6.10 6,548,567 Threadneedle Sterling 6,535 7.08 10,780,994 Threadneedle Sterling Bond 13,020 14.10 5,424,888 Threadneedle Sterling Short Dated Corporate Bond 5,826 6.31 5,091,467 Threadneedle UK 7,171 7.77 609,259 Threadneedle UK Absolute Alpha 851 0.92

1,523,053 Threadneedle UK Corporate Bond Acc 1,803 1.95 3,814,242 Threadneedle UK Equity Income 4,179 4.53 486,996 Threadneedle UK Extended Alpha 2,400 2.60

3,085,183 Threadneedle UK Fixed Interest 4,048 4.38 182,083 Threadneedle UK Mid 250 524 0.57

2,107,231 Threadneedle UK Select 2,764 2.99 267,760 Threadneedle UK Smaller Companies 912 0.99

91,385 98.97

Portfolio of investments 91,385 98.97Net other assets 950 1.03Net assets 92,335 100.00



Comparative figures shown above in square brackets relate to 30 September 2016



55



56


Statement of Change in Net Assets Attributable to Shareholders For the year ended 30 September 2017

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000


Amounts receivable on issue of Shares 15,730 9,703Amounts payable on cancellation of Shares (15,135) (12,949)

595 (3,246)Change in net assets attributable to Shareholdersfrom investment activities (see above) 2,962 10,869



01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000


Expenses 4 (729) (660)Net revenue before taxation 1,177 1,134Taxation 5 (167) (154)Net revenue after taxation 1,010 980Total return before distributions 4,048 11,909Distributions 6 (1,086) (1,040)Change in net assets attributable to Shareholdersfrom investment activities 2,962 10,869


30/09/17 30/09/16Note £’000 £’000 £’000 £’000


Current assets:Debtors 7 806 683Cash and bank balances 8 452 1,637

Total current assets 1,258 2,320Total assets 92,643 88,085Liabilities:Creditors:Distribution payable (64) (55)Other creditors 9 (244) (229)


57



58




2. Net capital gains01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

The net capital gains during the year comprise:Currency gains/(losses) – (25)Non-derivative securities 2,722 10,661Rebates received from underlying funds 320 296Transaction charges (4) (3)Net capital gains 3,038 10,929

3. Revenue01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Bank interest – 1Franked dividends from Collective Investment Schemes 667 600Interest income from Collective Investment Schemes 719 717Offshore funds dividends 66 20Overseas dividends 27 72Rebates received from underlying funds 427 384Total revenue 1,906 1,794


4. Expenses01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000


AMC fees 682 618 682 618


Depositary fees 26 21 Safe custody fees 5 4

31 25 Other expensesAudit fees 9 9 HMRC interest 1 –Professional fees 4 6 Publication fees 2 2


Audit fees are £7,700 ex Vat (2016: £7,550).

5. Taxation01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000


Corporation tax 155 154Deferred tax (Note 5 (c)) 12 –Total taxation for the year (Note 5 (b)) 167 154


59


60


5. Taxation (continued)



01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 1,177 1,134Net revenue for the year multiplied by the standard rate of corporation tax 235 227

Effects of:Capital income subject to taxation 12 –Rebated capital expenses deductible for tax purposes 64 59Revenue not subject to corporation tax (144) (132)Total tax charge for the year 167 154


(c) Deferred tax01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Provision at start of the year – –Deferred tax charge in the year 12 –Provision at the end of the year 12 –

6. Distributions


01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Interim 510 453 Final 580 585Add: Revenue paid on cancellation of Shares 27 24Deduct: Revenue received on creation of Shares (31) (22)Net distribution for the year 1,086 1,040Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 1,010 980Equalisation on conversion of Shares – 1Tax relief from capital* 76 59Net distribution for the year 1,086 1,040




7. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 261 238 Amounts due for rebates from underlying funds 202 187 Amounts receivable for creation of Shares 96 227 Income tax recoverable 7 31Sales awaiting settlement 240 –Total debtors 806 683


£’000 £’000

Cash and bank balances 452 1,637 Total cash and bank balances 452 1,637


£’000 £’000

Amounts payable for cancellation of Shares 36 65 Corporation tax payable 84 97 Deferred tax payable 12 –Purchases awaiting settlement 35 –


58 53 Depositary and AgentsDepositary fees 4 2 Safe custody fees 3 1 Transaction charges 2 1

9 4 Other accrued expensesAudit fees 9 9 Publication fees 1 1

10 10 Total other creditors 244 229


61


62









Sterling ISA Managers (Nominees) Limited 38.10%Zurich Assurance Ltd 37.60%

11. Share Classes

The Share Classes and ACD’s Annual Management Charges applicable to each Share Class areas follows:

%



The reconciliation of the opening and closing numbers of shares of each class is shown below:30/09/16 Issued Cancelled Converted 30/09/17

Share Class B Income 6,976,397 2,743,597 (1,443,717) – 8,276,277Share Class B Accumulation 38,285,116 5,854,159 (6,292,233) – 37,847,042





















Assets Liabilities Assets Liabilities Valuation technique £’000 £’000 £’000 £’000

Level 1: The unadjusted quoted price in an active market for identical assets or liabilities – – 1,782 –

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly 91,385 – 83,983 –

Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – – –

91,385 – 85,765 –


63


64















65

Omnis Multi-Asset Income Fund



To provide income with the potential for capital growth over the medium to longer term.

Investment Policy

The investment policy of the Fund is to gain exposure through a flexible asset allocation to a broaddiversified range of asset classes including, equities, fixed interest securities, currencies, cash, nearcash and deposits, warrants and approved money market instruments. Exposure to these assetclasses is expected to be mainly achieved through investment in a combination of transferablesecurities, collective investment schemes, deposits and derivatives. The Fund may gain exposureto the property or commodities markets through investment in eligible asset classes, such asexchange listed securities and/or collective investment schemes.

The Fund will not have any restrictions on the proportion of the Fund allocated to any of theseasset classes. The Fund may invest in any geographic or economic sectors of the world.

Derivatives may be used for investment purposes as well as for efficient portfolio management.

It is not intended that the use of derivatives in this way will raise the risk profile of the Fund.

Investment Review

Over the period the Omnis Multi-Asset Income Fund returned 12.03% and the benchmark (60%MSCI World / 40% BoA ML Global Broad Market Hedged) returned 8.39% [source: Financial Express,bid to bid, net income reinvested].

Within a backdrop of strong global equity markets, our stock selection within the financials andtechnology sectors was particularly beneficial to the Fund. Citigroup, AIA and Prudential were thestandout performers within financials.

Over the course of the year we added a number of emerging market names, including Vakrangee,an Indian financial services provider of a broad range of services such as e-commerce, banking,insurance to rural and urban Indian consumers in remote locations. The company is well positionedfor growth.

The portfolio’s strongest performer over one year came from the telecoms sector, an area that haslagged the overall market rally. Telefonica Deutschland, one of the Fund’s largest holdings,performed strongly on the back of rising prices and increasing data usage in the German mobilemarket. Its attractive dividend is underpinned by a robust balance sheet and management hasrepeated its resolve to maintain the payout level for the medium term.

A key area of strength was the technology sector, led by Apple, which has shown exceptionallystrong share price momentum year to date. We remain confident in Apple’s prospects given its ecosystem encourages customer retention and a diverse revenue base. Additionally, US semiconductormanufacturer Applied Materials, whose revenues and outlook exceeded market expectations, wasalso among the top names. We expect the company to continue to do well as everyday productsbecome more technologically advanced; the range of industrial sectors that make use ofsemiconductors is broadening, and demand is growing. Infineon Technologies also did well asinvestors acknowledged its increasingly strong end markets. The company issued solid results withrevenue growth and margin expansion continuing. In spite of currency headwinds, guidance wasalso maintained. Microsoft continued to perform strongly as well.

66




We have been vocal in our concerns on bond market valuations and the low returns on offer forinvestors. This caution and resultant low weighting in this area protected the Fund against much ofthe rout in government bond markets that occurred after the US elections late 2016 and the lowerreturns for the asset class seen through much of 2017.

We retain a significant allocation towards alternatives which are a key diversifier of risk, return andincome. Within alternatives, renewables remains a core element of the portfolio. These businesses’stable and consistent cash flows provide the ability to pay a high and maintainable, well-covereddividend, irrespective of the economic backdrop. Greencoat UK Wind and John Laing EnvironmentalAsset, two main holdings in this sector, were standout performers over the year to end Septemberand we continue to maintain a constructive view on these assets going forward. Withininfrastructure, long-term holding and strong performer HICL infrastructure fund was sold onconcerns relating to the visibility of its new projects which carry greater economic sensitivity. Wecontinue to watch this name and see how new projects are integrated into the existing portfolio.We like the attractive index-linked characteristics with government-backed cash flows, combinedwith the potential to achieve a modest degree of capital growth that this name can offer.

Market Overview

Global equity indices moved higher over the year. A broadening out of global economic growth,positive corporate earnings momentum and, towards the end of the third quarter, enthusiasm forpresident Trump’s tax-reform proposals, were all factors that buoyed investor sentiment.

The Brexit negotiations between the UK and the European Union reached a deadlock over thesummer. It is still uncertain whether talks will be able to regain momentum following Theresa May’sFlorence speech in late September.

At times, monetary policy also weighed upon sentiment. Most dramatically, the Bank of England’sMonetary Policy Committee shifted its messaging on the potential timing and likelihood of futurerate rises, driving the pound sharply higher in early September. The US Federal Reserve moved ina similar direction, commencing quantitative tightening and raising expectations of a further raterise in the fourth quarter.

We continue to favour European equities over UK equities. US equities have enjoyed a strong runwith corporate profits benefiting from dollar weakness, however we continue to believe that marketsare fully valued and high relative to historic figures. Emerging markets have seen good inflows andhave outperformed developed markets year to date, benefitting from dollar weakness and a strongerthan expected Chinese economy in the first half of the year. Fixed income is currently our leastfavoured asset class and we continue to have limited exposure.

67


Outlook

The unconventional monetary policy we have seen over the past decade has created significantdistortions in asset markets, not least in the safe haven asset classes, such as government bonds.As this comes to an end and policy makers in Europe talk of tapering, or the withdrawal of centralbank support for asset markets, it is unlikely to be a smooth transition and we continue to keep theduration (sensitivity to interest rates) in the bond portfolio low. As equity markets continue to presshigher, we believe that it is important not to chase yield, particularly at the expense of capital return.

While equity markets have enjoyed significant momentum since Donald Trump’s election victory inNovember, there remains much to be cautious about. The world continues to contend with someprofound structural challenges; to demographics, technological change and ever-present debtburdens may now be added the discrediting of globalisation and threats to the free trade on whichmuch prosperity has been built. Uncertainty is the enemy of financial markets, and this is likely toremain the case as markets react to Donald Trump’s actions and the process of negotiating the UK’sexit from the European Union continues. The portfolio is therefore positioned for a challengingperiod of low economic growth and more volatile returns. With this in mind we continue to followour investment process of searching for sustainable income through a focus on the underlying cashflows of the companies and securities we invest in. Selecting companies that continue paying theircoupons and growing their dividends throughout the cycle aims to ensure that the Fund can pay asustainable income on an ongoing basis. Focusing on the sustainability of the income should ensurethat the capital will look after itself over the longer term. With this approach, we seek to providenot only an attractive and growing income, but also an attractive total return over the cycle.

Investment ManagerNewton Investment Management Limited16 October 2017


68


A Income A Accumulation30/09/17 30/09/16 30/09/15 30/09/17 30/09/16

(p) (p) (p) (p) (p)

Change in net assets per ShareOpening net asset value per share 106.41 91.80 100.00 113.72 94.41**Return before operating charges* 13.01 19.55 (5.42) 14.08 20.02Operating charges (0.76) (0.69) (0.55) (0.83) (0.71)Return after operating charges 12.25 18.86 (5.97) 13.25 19.31

Distributions (4.46) (4.25) (2.23) (4.85) (4.37)Retained distributions on

accumulation shares – – – 4.85 4.37Closing net asset value per share 114.20 106.41 91.80 126.97 113.72

* after direct transaction costs of: 0.13 0.13 0.26 0.14 0.13

PerformanceReturn after operating charges 11.51% 20.54% (5.97%) 11.65% 20.45%

Other informationClosing net asset value (£’000) 134,053 80,702 40,576 50,116 11,646Closing number of shares 117,384,868 75,838,995 44,199,147 39,469,139 10,240,778Operating charges 0.68% 0.70% 0.96% 0.68% 0.70%Direct transaction costs 0.11% 0.13% 0.27% 0.11% 0.13%

Prices (p)Highest share price 118.45 108.04 102.25 128.80 114.31Lowest share price 104.24 89.33 93.27 111.44 92.34

** Share class A Accumulation launched on 1 October 2015. The opening net asset value per share shown above is thelaunch price of the class.


69


Operating ChargeTotal

Other Transaction operatingAMC expenses costs charge

Date (%) (%) (%) (%)

30/09/17Share Class A Income 0.60 0.07 0.01 0.68Share Class A Accumulation 0.60 0.07 0.01 0.6830/09/16Share Class A Income 0.60 0.08 0.02 0.70Share Class A Accumulation 0.60 0.08 0.02 0.70

The Operating Charge is the ratio of the Fund’s total disclosable costs (excluding overdraft interest)to the average net assets of the Fund.



• The risk and reward indicator table demonstrates where a Fund ranks in terms of its potentialrisk and return. The higher the rank the greater the potential reward but the greater the riskof losing money. The lowest category does not mean ‘risk free’.


Risk Warning



Share Class A 1 2 3 4 5 6 7




70



Bonds 19.97% [16.56%]Australia 1.05% [1.29%]

AUD 3,224,000 Australia Government 3.25% 21/04/2029 1,943 1.051,943 1.05

Cameroon 0.00% [0.91%]Canada 0.18% [0.46%]

USD 299,000 Detour Gold 5.5% 30/11/2017 224 0.12USD 136,000 First Quantum Minerals 7% 15/02/2021 104 0.06

328 0.18

Cayman Islands 0.51% [0.00%]USD 1,175,000 Sable International Finance 6.875% 01/08/2022 939 0.51

939 0.51

Chile 0.46% [0.00%]USD 1,100,000 Nova Austral 8.25% 26/05/2021 842 0.46

842 0.46

China 0.12% [0.23%]USD 241,000 Ctrip.com International 1.99% 01/07/2025 218 0.12

218 0.12

Germany 0.44% [0.57%]EUR 900,000 Rocket Internet 3% 22/07/2022 812 0.44

812 0.44

Ghana 0.77% [1.46%]USD 1,900,000 Ghana Government International 8.5% 04/10/2017 1,414 0.77

1,414 0.77

India 0.43% [0.00%]INR 69,500,000 ECL Finance 9.05% 28/12/2019 797 0.43

797 0.43

Indonesia 0.70% [0.00%]IDR 20,960,000,000 Indonesia Treasury 8.25% 15/05/2036 1,282 0.70

1,282 0.70

Ireland 0.50% [0.00%]USD 1,197,000 Oilflow SPV 1 DAC 12% 13/01/2022 917 0.50

917 0.50

Japan 0.29% [0.00%]USD 705,000 SoftBank 6% Perpetual 530 0.29

530 0.29

Mexico 1.26% [0.49%]MXN 36,508,800 Mexican Bonos 6.5% 09/06/2022 1,486 0.81MXN 18,190,000 Mexican Bonos 8.5% 31/05/2029 838 0.45

2,324 1.26


71



Netherlands 0.64% [0.38%]USD 8,000 Petrobras Global Finance 6.75% 27/01/2041 6 0.00

USD 512,000 Petrobras Global Finance 6.875% 20/01/2040 385 0.21EUR 900,000 VIEO 6.75% 07/09/2022 792 0.43

1,183 0.64

New Zealand 1.55% [2.45%]NZD 5,056,000 New Zealand Local Government Funding

Agency 4.5% 15/04/2027 2,856 1.552,856 1.55

South Africa 0.47% [0.00%]GBP 860,000 Investec 6.75% Perpetual 867 0.47

867 0.47

United Kingdom 7.64% [5.80%]GBP 159,000 Anglian Water Services Financing 4.125% 28/07/2020 297 0.16GBP 363,000 Arqiva Broadcast Finance 9.5% 31/03/2020 385 0.21GBP 647,753 Balfour Beatty 9.675% 01/07/2020 742 0.40GBP 500,000 Balfour Beatty Finance 1.875% 03/12/2018 496 0.27GBP 765,000 Direct Line Insurance 9.25% 27/04/2042 982 0.53GBP 307,000 Ei 6.375% 15/02/2022 331 0.18GBP 24,000 Ei 6.5% 06/12/2018 25 0.01

GBP 169,000 Mclaren Finance 5% 01/08/2022 171 0.09GBP 488,000 Nationwide Building Society 6.875% Perpetual 506 0.27GBP 708,829 Tesco Property Finance 3 5.744% 13/04/2040 790 0.43GBP 134,000 Thames Water Utilities Finance 3.375% 21/07/2021 242 0.13GBP 855,000 TP ICAP 5.25% 26/01/2024 915 0.50

GBP 7,000,000 UK Treasury 0% 11/12/2017 6,996 3.80GBP 276,261 Unique Pub Finance 5.659% 30/06/2027 311 0.17USD 510,000 Virgin Media Finance 6.375% 15/04/2023 397 0.22GBP 458,000 Virgin Media Secured Finance 6.25% 28/03/2029 496 0.27

14,082 7.64

United States 2.95% [2.52%]USD 330,000 CCO 5.5% 01/05/2026 255 0.14USD 220,000 CCO 5.875% 01/05/2027 172 0.09USD 236,000 DS Services of America 10% 01/09/2021 186 0.10USD 750,000 Freeport-McMoRan 2.3% 14/11/2017 558 0.30USD 257,000 Nielsen Finance 5% 15/04/2022 198 0.11

USD 1,677,000 Redwood Trust 4.75% 15/08/2023 1,242 0.67USD 849,000 Sprint 7.125% 15/06/2024 704 0.38

USD 1,147,000 Sprint Capital 8.75% 15/03/2032 1,082 0.59USD 1,000,000 T-Mobile USA 6% 01/03/2023 783 0.43

USD 300,000 Western Digital 10.5% 01/04/2024 262 0.145,442 2.95

Portfolio Statement (continued)As at 30 September 2017

72



Equities 73.40% [80.37%]Australia 1.07% [2.09%]

134,688 Dexus Property* 744 0.40329,687 Insurance Australia 1,228 0.67

1,972 1.07

Brazil 1.19% [1.54%]282,991 Ambev ADR** 1,390 0.75194,102 CCR 810 0.44

2,200 1.19

China 0.62% [0.00%]71,048 Hollysys Automation Technologies 1,144 0.62

1,144 0.62

Denmark 0.77% [0.81%]33,380 DONG Energy 1,421 0.77

1,421 0.77

Georgia 1.25% [1.02%]139,898 TBC Bank 2,311 1.25

2,311 1.25

Germany 4.77% [5.59%]32,606 Hella Kgaa Hueck 1,430 0.78

122,555 Infineon Technologies 2,295 1.251,208,579 Telefonica Deutschland 5,055 2.74

8,780 4.77

Guernsey 10.49% [12.48%]2,076,099 Bluefield Solar Income*** 2,408 1.312,573,868 Doric Nimrod Air Three Preference Shares 2,664 1.45

933,517 Doric Nimrod Air Two Preference Shares 2,084 1.13749,809 DP Aircraft I 604 0.33

1,256,629 Fair Oaks Income*** 965 0.521,496,854 International Public Partnerships*** 2,359 1.281,426,018 John Laing Infrastructure*** 1,841 1.002,088,903 NextEnergy Solar*** 2,350 1.282,932,601 Renewables Infrastructure 3,188 1.73

131,029 Volta Finance*** 851 0.4619,314 10.49

Hong Kong 3.44% [3.18%]691,600 AIA 3,798 2.06114,500 Link* 691 0.38

2,760,000 Man Wah 1,838 1.006,327 3.44

India 2.40% [0.00%]88,436 Indiabulls Housing Finance 1,207 0.66

985,000 IRB InvIT 1,070 0.58379,671 Vakrangee 2,139 1.16

4,416 2.40


73



Ireland 3.83% [4.01%]366,621 Allied Irish Banks 1,644 0.8967,172 CRH 1,901 1.03

134,908 Grafton 1,121 0.612,563,315 Greencoat Renewables 2,394 1.30

7,060 3.83

Israel 1.23% [1.54%]296,564 Bank Hapoalim 1,551 0.8454,219 Teva Pharmaceutical Industries ADR** 711 0.39

2,262 1.23

Italy 1.31% [1.55%]102,384 Atlantia 2,406 1.31

2,406 1.31

Japan 1.13% [1.48%]85,300 Japan Tobacco 2,081 1.13

2,081 1.13

Jersey 1.89% [2.48%]2,753,798 GCP Infrastructure*** 3,473 1.89

3,473 1.89

Luxembourg 3.67% [0.96%]554,805 B&M European Value Retail 2,149 1.17

3,259,320 BBGI SICAV*** 4,612 2.506,761 3.67

Macao 0.91% [0.80%]430,000 Sands China 1,668 0.91

1,668 0.91

Mexico 1.65% [1.08%]688,978 Kimberly-Clark de Mexico 1,047 0.57

1,157,200 Wal-Mart de Mexico 1,980 1.083,027 1.65

Netherlands 0.97% [0.65%]52,168 Wolters Kluwer 1,795 0.97

1,795 0.97

New Zealand 1.35% [0.87%]851,155 SkyCity Entertainment 1,706 0.93396,155 Spark New Zealand 779 0.42

2,485 1.35

Singapore 0.81% [1.29%]917,096 Cache Logistics* 418 0.23894,200 Mapletree Greater China Trust* 564 0.31334,700 Parkway Life Trust* 494 0.27

1,476 0.81


74



Sweden 0.00% [0.52%]Switzerland 3.16% [3.98%]

6,140 Burckhardt Compression 1,431 0.7844,170 Ferguson 2,160 1.1711,981 Novartis 765 0.423,634 Roche 692 0.383,339 Zurich Insurance 760 0.41

5,808 3.16

Taiwan 1.25% [1.19%]432,000 Taiwan Semiconductor Manufacturing 2,299 1.25

2,299 1.25

Thailand 0.28% [0.55%]1,299,200 Tesco Lotus Retail Growth Freehold & Leasehold 514 0.28

514 0.28

United Kingdom 17.50% [20.49%]147,366 BAE Systems 930 0.5052,798 BGEO 1,721 0.93

1,690,254 Blackstone GSO Loan Financing*** 1,497 0.8131,875 British American Tobacco 1,489 0.81

291,151 Centrica 544 0.301,339,231 Civitas Social Housing* 1,487 0.81

656,920 Cobham 956 0.5264,968 Diageo 1,594 0.87

465,511 Dixons Carphone 899 0.4956,287 GlaxoSmithKline 838 0.45

4,462,985 Greencoat UK Wind*** 5,365 2.9189,175 Hikma Pharmaceuticals 1,079 0.59

237,968 Informa 1,599 0.874,558,114 John Laing Environmental Assets*** 4,934 2.68

14,730 Next 774 0.42110,244 Prudential 1,968 1.0765,284 RELX 1,036 0.5642,478 SSE 593 0.32

3,764,380 VPC Specialty Lending*** 2,936 1.5932,239 17.50

United States 6.44% [10.22%]20,084 Apple 2,305 1.2531,464 Applied Materials 1,222 0.6635,756 CA 889 0.4823,601 Citigroup 1,279 0.6910,895 Gilead Sciences 658 0.3618,252 Las Vegas Sands 873 0.4722,238 Microsoft 1,234 0.67

167,525 Redwood Trust* 2,032 1.10437,192 Samsonite International 1,396 0.76

11,888 6.44


75



Options 0.01% [0.00%]33 Japan 10 Years Future Option December 2017 24 0.01

24 0.01

Forward Currency Contracts 0.23% [(0.21%)]Bought EUR2,768,061 for USD3,328,554Settlement 15/12/2017 (32) (0.02)Bought USD389,921 for AUD513,000Settlement 13/10/2017 (9) 0.00Bought USD580,000 for GBP445,172Settlement 14/11/2017 (13) (0.01)Bought USD598,397 for NZD823,000Settlement 13/10/2017 3 0.00Bought USD470,357 for TWD13,979,000Settlement 15/12/2017 6 0.00Sold AUD6,053,817 for GBP3,655,093Settlement 14/11/2017 121 0.07Sold EUR5,595,013 for GBP5,073,343Settlement 14/11/2017 139 0.08Sold JPY163,770,486 for GBP1,152,582Settlement 15/12/2017 67 0.04Sold NZD5,368,156 for GBP2,945,199Settlement 15/12/2017 63 0.03Sold USD3,335,829 for GBP2,561,488Settlement 14/11/2017 78 0.04

423 0.23

Portfolio of investments 172,350 93.58Net other assets 11,819 6.42Net assets 184,169 100.00

* Real Estate Investment Trust.

** American Depositary Receipts.

*** Investment Trust.


All investments are ordinary shares or bonds unless otherwise stated and admitted to official stock exchange listings.


Gross purchases for the year (excl. Derivatives): £121,801,000 [2016: £62,980,000] (See note 14).

Total sales net of transaction costs for the year (excl. Derivatives): £47,829,000 [2016: £25,964,000](See note 14).


76


01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000


Expenses 4 (892) (454)Net revenue before taxation 4,951 2,823 Taxation 5 (298) (221)Net revenue after taxation 4,653 2,602Total return before distributions 13,792 13,550Distributions 6 (5,392) (2,966)Change in net assets attributable to Shareholdersfrom investment activities 8,400 10,584

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000


Amounts receivable on issue of Shares 87,293 48,794 Amounts payable on cancellation

of Shares (5,141) (7,906)82,152 40,888

Change in net assetsattributable to Shareholdersfrom investment activities (see above) 8,400 10,584

Retained distributions onaccumulation Shares 1,269 300




77


30/09/17 30/09/16Note £’000 £’000 £’000 £’000


Investments 172,404 89,514Current assets:

Debtors 7 2,312 991Cash and bank balances 8 12,542 3,267

Total current assets 14,854 4,258Total assets 187,258 93,772Liabilities:Investment liabilities (54) (192)Creditors:

Distribution payable (1,263) (816)Other creditors 9 (1,772) (416)

Total creditors (3,035) (1,232)Total liabilities (3,089) (1,424)Net assets attributable to Shareholders 184,169 92,348


78





£’000 £’000

The net capital gains during the year comprise:Brokers commission on futures (5) –Currency losses (21) (259)Derivative contracts (158) –Forward currency contracts 227 (1,950)Non-derivative securities 9,109 13,173Transaction charges (13) (16)Net capital gains 9,139 10,948

3. Revenue01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Bank interest 1 2Interest from Debt Securities 1,083 759Interest income from Collective Investment Schemes 200 91Offshore funds dividends 3 237Overseas dividends 3,551 1,694UK dividends 1,005 494Total revenue 5,843 3,277

4. Expenses01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Payable to the ACD, associates of the ACD, andagents of either of them

AMC fees 804 405804 405







79


5. Taxation

(a) Analysis of the tax charge in the year01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Corporation tax 165 144Double tax relief (32) (11)Irrecoverable overseas tax 142 87Adjustment in respect of prior years (2) 2Overseas capital gains tax 25 –Deferred tax (Note 5 (c)) – (1)Total taxation for the year (Note 5 (b)) 298 221



01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 4,951 2,823Net revenue for the year multiplied by the standard

rate of corporation tax 990 565Effects of:Adjustments in respect of prior years (2) 2Double taxation relief (32) (11)Irrecoverable overseas tax 142 87Overseas capital gains tax in capital 25 –Revenue not subject to corporation tax (825) (422)Total tax charge for the year 298 221



£’000 £’000

Provision at start of the year – 1Deferred tax charge in the year – (1)Provision at the end of the year – –


80


6. Distributions


01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Interim 4,096 2,238Final 1,734 932Add: Revenue paid on cancellation of Shares 28 54Deduct: Revenue received on creation of Shares (466) (258)Net distribution for the year 5,392 2,966

Reconciliation of net revenue aftertaxation to distributions

Net revenue after taxation 4,653 2,602Expenses charged to capital 892 454Tax relief from capital* (178) (90)Capital gains tax 25 –Net distribution for the year 5,392 2,966

* Tax relief has arisen whereby excess revenue expenses have been utilised to reduce the tax arising on capitalexpenses.


7. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 858 454Amounts receivable for creation of Shares 1,400 480Income tax recoverable 7 18Overseas withholding tax recoverable 43 21Sales awaiting settlement 4 18Total debtors 2,312 991


£’000 £’000



81



£’000 £’000

Amounts payable for cancellation of Shares – 38Corporation tax payable 84 133Purchases awaiting settlement 1,549 184

1,633 355Accrued expensesManager and AgentsAMC fees 89 45

89 45Depositary and AgentsDepositary fees 8 2Safe custody fees 23 2Transaction charges 9 3

40 7Other accrued expensesAudit fees 9 9Publication fees 1 –

10 9Total other creditors 1,772 416








Sterling ISA Managers (Nominees) Limited 72.00FundsDirect Nominees Limited 28.00

11. Share Classes


%

Share Class A Income 0.60Share Class A Accumulation 0.60


82


11. Share Classes (continued)




Share Class A Income 75,838,995 44,663,341 (3,117,468) – 117,384,868Share Class AAccumulation 10,240,778 30,608,619 (1,380,258) – 39,469,139





(a) Foreign currency riskA proportion of the financial net assets of the Fund are denominated in currencies other thanSterling with the effect that the balance sheet and total return can be affected by currencymovements.

The table below shows the foreign currency risk profile at the balance sheet date:

Net foreign currency exposure30/09/17 30/09/16

Currency £’000 £’000

Australian dollar 147 119Brazilian real 810 857Danish krone 1,424 748Euro 21,483 10,188Hong Kong dollar 9,391 1,584Indian rupee 5,277 –Indonesian rupiah 1,318 –Israeli sheqel 1,551 697Japanese yen 1,020 118Mexican peso 5,398 1,304New Zealand dollar 2,099 426Singapore dollar 1,477 1,199Swedish krona 2 484Swiss franc 3,674 2,226Taiwanese dollar 2,081 145Thai baht 514 511US dollar 22,834 17,429Total foreign currency exposure 80,500 38,035Sterling 103,669 54,313Total net assets 184,169 92,348


83



(a) Foreign currency risk (continued)If GBP to foreign currency exchange rates had strengthened/increased by 10% as at thebalance sheet date, the net asset value of the fund would have decreased by £8,050,000(2016: decreased by £3,458,000). If GBP to foreign currency exchange rates hadweakened/decreased by 10% as at the balance sheet date, the net asset value of the fundwould have increased by £8,050,000 (2016: increased by £4,226,000). These calculationsassume all other variables remain constant.

(b) Interest rate risk profile of financial assets and liabilitiesThe table below shows the interest rate risk profile at the balance sheet date:

Financial assetsFloating rate Fixed rate not carrying

Currency Assets financial assets financial assets interest Total£’000 £’000 £’000 £’000

30/09/17Australian dollar – 1,943 2,038 3,981Brazilian real – – 810 810Danish krone – – 1,424 1,424Euro 809 812 22,354 23,975Hong Kong dollar – – 9,391 9,391Indian rupee 34 797 4,446 5,277Indonesian rupiah – 1,282 36 1,318Israeli sheqel – – 1,551 1,551Japanese yen – – 2,105 2,105Mexican peso – 2,325 3,073 5,398New Zealand dollar – 2,856 2,568 5,424Singapore dollar – – 1,477 1,477Sterling 14,670 12,197 79,149 106,016Swedish krona – – 2 2Swiss franc – – 3,674 3,674Taiwanese dollar 126 – 2,299 2,425Thai baht – – 514 514US dollar 580 10,890 15,493 26,963Total 16,219 33,102 152,404 201,725

30/09/16Australian Dollar – 1,287 1,969 3,256Brazilian Real – – 857 857Danish krone – – 748 748Euro 13 526 9,649 10,188Hong Kong dollar – – 4,383 4,383Israeli sheqel – – 697 697Japanese yen – – 1,365 1,365Mexican peso – 448 1,003 1,451New Zealand dollar – 2,264 867 3,131Singapore dollar – – 1,199 1,199Sterling 3,251 5,283 46,917 55,451Swedish krona – – 484 484Swiss franc – – 2,226 2,226Taiwanese dollar 2 – 486 488Thai baht – – 511 511US dollar – 5,497 12,176 17,673Total 3,266 15,305 85,537 104,108


84



(b) Interest rate risk profile of financial assets and liabilities (continued)

FinancialFloating rate Fixed rate liabilities

financial financial not carryingCurrency Liabilities liabilities liabilities interest Total

£’000 £’000 £’000 £’000

30/09/17Australian dollar – – 3,834 3,834Euro – – 2,491 2,491Japanese yen – – 1,086 1,086New Zealand dollar – – 3,325 3,325Sterling – – 2,347 2,347Taiwanese dollar – – 344 344US dollar – – 4,129 4,129Total – – 17,556 17,556

30/09/16Australian Dollar – – 3,137 3,137Hong Kong dollar – – 2,799 2,799Japanese yen – – 1,247 1,247Mexican peso – – 147 147New Zealand dollar – – 2,705 2,705Sterling – – 1,136 1,136Taiwanese dollar – – 343 343US dollar – – 246 246Total – – 11,760 11,760


14. Portfolio transaction costs01/10/16 to 01/10/15 to30/09/17 30/09/16

Analysis of total purchase costs £’000 £’000 £’000 £’000 Purchases in the year before

transaction costs:Equities 56,253 32,722Bonds 41,380 15,125Collective Investment Schemes 24,038 15,056

121,671 62,903Commissions – Equities 35 17 Commissions – Derivatives 4 –Commissions – Collective

Investment Schemes 3 3Taxes – Equities 85 45 Taxes – Collective

Investment Schemes 7 12Total purchase costs 134 77Gross purchase total 121,805 62,980


85


14. Portfolio transaction costs (continued)

01/10/16 to 01/10/15 to30/09/17 30/09/16

Analysis of total sale costs £’000 £’000 £’000 £’000

Gross sales in the yearbefore transaction costs:

Equities 16,836 11,907Bonds 19,378 11,279Collective Investment Schemes 11,631 2,787

47,845 25,973Commissions – Equities (10) (8)Commissions – Derivatives (1) –Commissions – Collective

Investment Schemes (3) (1)Taxes – Equities (3) –Total sale costs (17) (9)Total sales net of transactioncosts 47,828 25,964

The portfolio transaction costs table above includes direct transaction costs suffered by theFund during the year.

Separately identifiable direct transaction costs (commissions and taxes etc.) are attributableto the Fund’s purchase and sale of equity shares. Additionally for equity shares there is adealing spread cost (the difference between the buying and selling prices) which will besuffered on purchase and sale transactions.

For the Fund’s investment transactions in debt instruments any applicable transaction chargesform part of the dealing spread for these instruments.

For the Fund’s investment in Collective Investment Scheme holdings there will potentially bedealing spread costs applicable to purchases and sales. However, additionally there are indirecttransaction 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.

01/10/16 to 01/10/15 to30/09/17 30/09/16

Transaction costs as percentage of principal amounts % %

Purchases – CommissionsEquities 0.0622% 0.0520%Bonds 0.0000% 0.0000%Collective Investment Schemes 0.0125% 0.0199%

Purchases – TaxesEquities 0.1511% 0.1375%Bonds 0.0000% 0.0000%Collective Investment Schemes 0.0291% 0.0797%

Sales – CommissionsEquities 0.0594% 0.0672%Bonds 0.0000% 0.0000%Collective Investment Schemes 0.0258% 0.0359%

Sales – TaxesEquities 0.0178% 0.0000%Bonds 0.0000% 0.0000%Collective Investment Schemes 0.0000% 0.0000%


86



01/10/16 to 01/10/15 to30/09/17 30/09/16

Transaction costs as percentage of average net asset value % %

Commissions 0.0418% 0.0430%Taxes 0.0709% 0.0845%






Level 1: The unadjusted quotedprice in an active market foridentical assets or liabilities 142,889 – 71,222 –

Level 2: Inputs other than quotedprices included within Level 1that are observable for the assetor liability, either directlyor indirectly 29,515 (54) 18,292 (192)

Level 3: Inputs are unobservable(ie for which market data isunavailable) for the assetor liability – – – –

172,404 (54) 89,514 (192)


87


First Distribution in pence per Share

Group 1 Shares purchased prior to 1 October 2016Group 2 Shares purchased on or after 1 October 2016 to 31 December 2016



Share Class A IncomeGroup 1 0.9872 – 0.9872 0.8618Group 2 0.3932 0.5940 0.9872 0.8618

Share Class A AccumulationGroup 1 1.0572 – 1.0572 0.8297Group 2 0.5059 0.5513 1.0572 0.8297

Second Distribution in pence per Share

Group 1 Shares purchased prior to 1 January 2017Group 2 Shares purchased on or after 1 January 2017 to 31 March 2017





Third Distribution in pence per Share

Group 1 Shares purchased prior to 1 April 2017Group 2 Shares purchased on or after 1 April 2017 to 30 June 2017






88



Group 1 Shares purchased prior to 1 July 2017Group 2 Shares purchased on or after 1 July 2017 to 30 September 2017





Distribution Table (continued)As at 30 September 2017

89

Omnis Multi-Manager Adventurous Fund



Investment Policy

It is expected that exposure to equities will typically make up the majority of the Fund’s assets.However, investments will not be confined to any particular sector.

Exposure will be achieved primarily through investment in collective investment schemes. The Fundmay also invest in transferable securities, money market instruments, warrants and deposits.


Investment Review

Over the period the Omnis Multi-Manager Adventurous Fund returned 12.61% and the benchmark(40% FTSE All-Share / 15% Russell 1000 / 25% MSCI EAFE Ex-UK / 15% MSCI Emerging Markets /5% BoA ML Sterling Broad Market) returned 14.17% [source: Financial Express, bid to bid, netincome reinvested].

Economic uncertainty at the beginning of the review period meant we opted to maintain theportfolio’s balance of investments. We sold the remainder of holdings in Standard Life UK EquityUnconstrained and Aberdeen Emerging Markets in November. We also sold our holding in MorganStanley Diversified Alpha Plus and reduced Henderson UK Absolute Return. This was in order toadd a new holding, Acadian Diversified Alpha, which has a global focus oriented towards lowervolatility equities.

In January, we sold our remaining holdings in Odey Allegra International, Verrazzano AdvantageEuropean and Stewart Investors Asia Pacific Leaders. We slightly shifted the portfolio’s exposurefrom UK to European equities through exchange-traded funds. We increased our actively-managedAsian equity exposure by introducing Matthews Asia Pacific Tiger and reducing L&G Pacific Index.A reduction to our holding in Invesco Perpetual Corporate Bond in April reflected our preference ofincreasing holdings with more defensive investment strategies that invest in government bonds. InMay, we sold our remaining holding in Morgan Stanley Global Quality, taking advantage of a rise inits value due to strong performances of larger global companies in developed countries.

Ahead of June’s UK general election, we switched from iShares Japan GBP Hedged ETF into theunhedged share class to benefit from any resultant sterling weakness against the yen. Holdings infunds that invest in UK medium and smaller companies were reduced in favour of adding to ArtemisUS Extended Alpha. Investment activity was fairly limited in July as we maintained the portfolio’sdiversified balance of holdings. We took some profits from RWC Global Emerging Markets, GoldmanSachs Global Emerging Markets and iShares Emerging Markets ETF after a strong month foremerging markets.

The main investment activity in August was to sell our remaining holding in Morgan Stanley USGrowth, which had profited from growth in US technology stocks. We used the proceeds to take anew holding in iShares US Small Cap ETF. We also reduced our holdings in Marlborough SpecialSituations and iShares MSCI Emerging Markets ETF. September saw a new investment into FranklinUK Managers’ Focus, a fund we know well and have included in other portfolios. It shouldcomplement the portfolio’s other UK investments.


90


Market Overview

Market reaction to Donald Trump’s US presidential election triumph in November was a surprise.Central banks continued to signal to markets that the conditions were right to start raising interestrates. The US Federal Reserve’s interest rate rises of 0.25% in December and a further 0.25% inMarch were generally well received by investors. Market uncertainty grew when Trump’s healthcarereform bill failed to obtain Congressional approval. Nevertheless, market sentiment was generallymore positive about the chances of his tax reform receiving stronger backing. The escalating war ofwords between the US and North Korea over its missile testing failed to unsettle markets.

March’s announcement by the UK government to begin the process of the UK leaving the EuropeanUnion and confusion over the Brexit plan unsettled investors. Also unsettling was the result of June’ssnap general election that saw a hung parliament. Markets reacted favourably to pro-Europeancentrist Emmanuel Macron’s victory in France’s presidential election, but he faces tough challengesahead. German chancellor Angela Merkel’s re-election win in September could pave the way for achange in the government’s view on fiscal policy. The case for central banks to raise interest ratesappeared to strengthen at the end of the period, as did the likelihood of an end to austerity measuresby governments in the developed world.

Outlook

There are plenty of things for investors to be positive about, yet we still maintain an element ofcaution. Continuing improvement in global economic growth presents a strong case to add toequities. However, after a prolonged bull run of rising prices, we feel markets are looking a littleexpensive. Short-term market corrections created by geo-political events, such as growing concernover North Korea’s missile testing, may provide more attractive buying opportunities. For now, weretain a neutral view on equities generally, although we continue to favour overseas markets aheadof the UK. Returns across our portfolios benefited from a weakened sterling in September, whichproved to be one of the key performance drivers for the month. Otherwise, despite growing politicaluncertainty, markets have not moved a great deal and volatility remains low.

Investment ManagerOctopus Investments Limited13 October 2017


91


B Income30/09/17 30/09/16 30/09/15

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 128.20 108.72 108.84 Return before operating charges* 19.30 22.14 2.78Operating charges (1.88) (1.70) (1.59)Return after operating charges 17.42 20.44 1.19









92


B Accumulation30/09/17 30/09/16 30/09/15

(p) (p) (p)








93


Operating ChargesSynthetic Rebates from Total

Other expense underlying Transaction OperatingAMC expenses ratio funds costs charge

Date (%) (%) (%) (%) (%) (%)








Risk Warning







94



Collective Investment Schemes 72.04% [75.39%]91,241 Acadian Diversified Alpha 939 1.44

1,204,334 Ardevora UK Equity 2,714 4.15 1,972,162 Artemis Global Income 2,563 3.92 1,508,677 Artemis US Extended Alpha 2,703 4.13 524,839 BlackRock European Dynamic 2,994 4.58 832,719 CF Lindsell Train UK Equity 3,092 4.73 150,798 Eastspring Japan Dynamic 2,101 3.21 952,112 FP CRUX European Special Situations 2,698 4.12 245,740 Franklin UK Managers Focus 302 0.46 157,331 Goldman Sachs Emerging Markets Equity Portfolio 2,316 3.54 948,419 Hermes Asia ex-Japan Equity 2,383 3.64 793,762 JOHCM Global Select 2,152 3.29 808,082 JPMorgan US Equity Income 1,352 2.07 318,596 Legal & General Pacific Index 506 0.77 696,641 Legal & General UK Index 2,064 3.15 640,915 M&G Global Dividend 1,855 2.84 141,542 Macquarie Asia New Stars 2,062 3.15

2,396,461 Majedie UK Equity 4,253 6.50 139,105 Marlborough Special Situations 2,205 3.37 73,635 Matthews Asia Pacific Tiger 1,420 2.17 15,931 RWC Global Emerging Markets 3,051 4.662,065 Vanguard US Opportunities 1,409 2.15

47,134 72.04


95



Exchange Traded Funds 25.66% [22.04%]29,514 db x-trackers EURO STOXX 50 983 1.50

1,081,900 iShares Core FTSE 100 7,870 12.03 4,754 iShares Core GBP Corporate Bond 688 1.05 25,000 iShares Core UK Gilts 325 0.50 37,909 iShares FTSE 250 720 1.10 12,998 iShares GBP Index-Linked Gilts 228 0.35 9,969 iShares MSCI AC Far East ex-Japan 409 0.62 10,692 iShares MSCI Emerging Markets 335 0.51 26,982 iShares MSCI Europe ex-UK 763 1.17 136,687 iShares MSCI Japan 1,426 2.18 11,666 iShares MSCI Japan GBP Hedged 656 1.00 14,970 iShares S&P Small Cap 600 672 1.03 54,993 iShares UK Dividend Plus 489 0.75 2,000 iShares USD Treasury Bond 7-10yr 294 0.45 26,182 Vanguard S&P 500 932 1.42

16,790 25.66

Portfolio of investments 63,924 97.70Net other assets 1,507 2.30Net assets 65,431 100.00


All investments are Collective Investment Schemes unless otherwise stated.


Gross purchases for the year: £14,696,000 [2016: £14,821,000] (See note 14).

Total sales net of transaction costs for the year: £28,051,000 [2016: £32,096,000] (See note 14).


96


01/10/16 to 30/09/17 01/10/15 to 30/09/16

Note £’000 £’000 £’000 £’000


Expenses 4 (555) (580)Net revenue before taxation 622 520 Taxation 5 – –Net revenue after taxation 622 520 Total return before distributions 8,861 12,184 Distributions 6 (620) (535)Change in net assets attributable to Shareholdersfrom investment activities 8,241 11,649

01/10/16 to 30/09/17 01/10/15 to 30/09/16

£’000 £’000 £’000 £’000




(13,723) (16,557)Dilution adjustment 14 3Change in net assets attributable to Shareholders from investment activities (see above) 8,241 11,649





97


30/09/17 30/09/16

Note £’000 £’000 £’000 £’000


Current assets:Debtors 7 61 737Cash and bank balances 8 1,684 1,534

Total current assets 1,745 2,271 Total assets 65,669 70,796 Liabilities:Creditors:Distribution payable (18) (21)Other creditors 9 (220) (444)



98




2. Net capital gains01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000

The net capital gains during the year comprise:Currency losses (17) (1)Non-derivative securities 8,220 11,647Rebates received from underlying funds 38 20Transaction charges (2) (2)Net capital gains 8,239 11,664

3. Revenue01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000

Bank interest – 1 Franked dividends from Collective Investment Schemes 370 456 Interest income from Collective Investment Schemes 27 25 Offshore funds dividends 669 491Rebates received from underlying funds 110 125Unfranked dividends from Collective Investment Schemes 1 2Total revenue 1,177 1,100


99



4. Expenses01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000


AMC fees 517 540517 540






5. Taxation01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000


Corporation tax – –Total taxation for the year (Note 5 (b)) – –

100






01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 622 520Net revenue for the year multiplied by the standard rate of corporation tax 124 104

Effects of:Capital income subject to taxation (9) 9Movement in excess management expenses 80 67Rebated capital expenses deductible for tax purposes 8 3Revenue not subject to corporation tax (203) (183)Total tax charge for the year – –


(c) Provision for deferred tax

There is no provision required for deferred taxation at the Balance Sheet date in the currentyear or prior year.

(d) Factors that may affect future tax charges

At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £528,835 (2016: £448,907) in relation to surplus management expenses. It isunlikely that the Fund will generate sufficient taxable profits in the future to utilise this amountand therefore no deferred tax asset has been recognised in the year.

101



6. Distributions


01/10/16 to 01/10/15 to30/09/17 30/09/16

£’000 £’000

Interim 191 –Final 403 506 Add: Revenue paid on cancellation of Shares 28 30 Deduct: Revenue received on creation of Shares (2) (1)Net distribution for the year 620 535 Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 622 520Equalisation on conversion of Shares – 2Tax relief from capital* (2) 13Net distribution for the year 620 535



7. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 4 6 Amounts due for rebates from underlying funds 23 28 Amounts receivable for creation of Shares 33 2 Dilution adjustment receivable 1 –Income tax recoverable – 1Sales awaiting settlement – 700Total debtors 61 737


£’000 £’000


102




£’000 £’000

Amounts payable for cancellation of Shares 163 88Purchases awaiting settlement – 300

163 388 Accrued expensesManager and AgentsAMC fees 41 43

41 43Depositary and AgentsDepositary fees 3 2 Safe custody fees 2 1Transaction charges 1 –










Scottish Equitable Plc 58.50

103


11. Share Classes


%





Share Class B Income 2,189,496 63,622 (257,129) – 1,995,989Share Class B Accumulation 38,188,830 598,641 (7,645,390) – 31,142,081






A proportion of the financial net assets of the Fund are denominated in currencies otherthan Sterling with the effect that the balance sheet and total return can be affected bycurrency movements.

The Fund holds an insignificant foreign currency exposure at 30 September 2017 thereforea currency table has not been disclosed.

Changes in exchange rates would have no material impact on the valuation of foreigncurrency financial assets or liabilities as at the balance sheet date. Consequently, nosensitivity analysis has been presented.






104



14. Portfolio transaction costs01/10/16 to 30/09/17 01/10/15 to 30/09/16

£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the year before transaction costs:

Collective Investment Schemes 14,694 14,818 14,694 14,818

Commissions – Collective Investment Schemes 2 3

Total purchase costs 2 3Gross purchase total 14,696 14,821Analysis of total sale costsGross sales in the year before transaction costs:

Collective Investment Schemes 28,053 32,10228,053 32,102

Commissions – Collective Investment Schemes (2) (6)

Total sale costs (2) (6)Total sales net of transaction costs 28,051 32,096


01/10/16 to 01/10/15 to30/09/17 30/09/16

% %

Transaction costs as percentage of principal amountsPurchases – CommissionsCollective Investment Schemes 0.0136% 0.0202%

Purchases – TaxesCollective Investment Schemes 0.0000% 0.0000%

Sales – CommissionsCollective Investment Schemes 0.0071% 0.0187%

Sales – TaxesCollective Investment Schemes 0.0000% 0.0000%

01/10/16 to 01/10/15 to30/09/17 30/09/16

% %

Transaction costs as percentage of average net asset value




105






Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000

Valuation technique

Level 1: The unadjusted quoted price in an active market for identical assets or liabilities 16,790 – 15,501 –

Level 2: Inputs other than quoted prices included within Level 1that are observable for the asset or liability, either directly or indirectly 47,134 – 53,024 –

Level 3: Inputs are unobservable (ie for which market data is unavailable) for the asset or liability – – – –

63,924 – 68,525 –

106















107

Omnis Multi-Manager Balanced Fund



Investment Policy

It is expected that there will be an emphasis on exposure to equities and fixed interest investments.However, investments will not be confined to any particular sector.



Investment Review

Over the period the Omnis Multi-Manager Balanced Fund returned 9.92% and the benchmark(30% FTSE All-Share / 20% BoA ML Sterling Broad Market / 15% Russell 1000 / 15% MSCI EAFEEx-UK / 10% MSCI Emerging Markets / 5% GBP LIBOR 3-month / 5% BoA ML Global Broad Market)returned 10.56% [source: Financial Express, bid to bid, net income reinvested].

At the start of the period, we maintained the portfolio’s mildly cautious investment approach byreducing our holdings in two exchange-traded funds: iShares USD High Yield and iShares GlobalHigh Yield Corporate Bond. We also introduced Invesco Perpetual Global Targeted Returns to theportfolio. Following November’s US presidential election outcome, we increased the portfolio’sexposure to equities by adding to iShares Core FTSE 100 ETF. In December, we switched our focusfrom European to US funds by reducing Verrazzano Advantage European and increasing ArtemisUS Extended Alpha.

At the beginning of 2017, we increased the portfolio’s exposure to bonds we consider to be lessvulnerable to interest rate risk, namely by adding iShares GBP Corporate Bond 0-5yr ETF and iSharesUSD Corporate Bond ETF. We introduced iShares Core MSCI Emerging Markets ETF when marketsstrengthened in April and the dollar weakened compared with sterling. We funded the purchase byreducing Goldman Sachs Emerging Markets Portfolio following the departure of its lead manager.

In May, we reduced our holding in Invesco Perpetual Corporate Bond in preparation for exiting thefund completely, over concerns around its capacity and the change in management. In June andJuly, we sold the remaining holding in Odey Allegra International and replaced it with the globalstock-picking fund Orbis Global Equity. We also exited Goldman Sachs Global Strategic Income Bondand Invesco Perpetual Corporate Bond. We replaced the latter with TwentyFour Corporate Bondand the re-introduction of iShares GBP Corporate Bond. We re-introduced iShares Global High YieldETF as a defensive measure to reduce the portfolio’s exposure to the dollar.

We made a number of small adjustments to the portfolio in August, including the introduction ofSPDR S&P US Dividend Aristocrats ETF. This included introducing SPDR S&P US Dividend AristocratsETF, while reducing JP Morgan US Equity Income, which has been a solid performer but the ETFhas enjoyed a better time of it. We increased our holding in Orbis Global Equity by reducing holdingsin Majedie UK Equity and Ardevora UK Equity. September saw us marginally increase our equityexposure when the market fell and presented a buying opportunity. We also sold our remainingholding in JP Morgan US Equity Income, choosing instead to top up our holding in the passivelymanaged SPDR US Dividend Aristocrats.


108


Market Overview

Market reaction to Donald Trump’s US presidential election triumph in November was a surprise.Central banks continued to signal to markets that the conditions were right to start raising interestrates. The US Federal Reserve’s interest rate rises of 0.25% in December and a further 0.25% inMarch were generally well received by investors. Market uncertainty grew when Trump’s healthcarereform bill failed to obtain Congressional approval. Nevertheless, market sentiment was generallymore positive about the chances of his tax reform receiving stronger backing. The escalating warof words between the US and North Korea over its missile testing failed to unsettle markets.

March’s announcement by the UK government to begin the process of the UK leaving the EuropeanUnion and confusion over the Brexit plan unsettled investors. Also unsettling was the result of June’ssnap general election that saw a hung parliament. Markets reacted favourably to pro-Europeancentrist Emmanuel Macron’s victory in France’s presidential election, but he faces tough challengesahead. German chancellor Angela Merkel’s re-election win in September could pave the way for achange in the government’s view on fiscal policy. The case for central banks to raise interest ratesappeared to strengthen at the end of the period, as did the likelihood of an end to austeritymeasures by governments in the developed world.

Outlook




109



B Income30/09/17 30/09/16 30/09/15

(p) (p) (p)

Change in net assets per ShareOpening net asset value per share 123.48 108.96 108.25Return before operating charges* 14.82 17.29 3.60 Operating charges (1.68) (1.66) (1.53)Return after operating charges 13.14 15.63 2.07








110


B Accumulation30/09/17 30/09/16 30/09/15

(p) (p) (p)








111




Date (%) (%) (%) (%) (%) (%)








Risk Warning







112


DistributionHoldingsor Nominal Market value % of TotalValue Investments £’000 Net Assets

Collective Investment Schemes 69.61% [74.43%]2,368,071 Ardevora UK Equity 5,336 2.97 5,151,387 Artemis US Extended Alpha 9,231 5.15 231,897 Baillie Gifford Japanese 3,504 1.95

1,951,217 BlackRock Asia Special Situations 3,549 1.98 1,194,625 BlackRock European Dynamic 6,814 3.80 1,695,674 CF Lindsell Train UK Equity 6,297 3.51 264,369 Eastspring Japan Dynamic GBP 3,683 2.05

2,867,846 FP CRUX European Special Situations 8,128 4.53 4,278,396 Franklin UK Managers Focus 5,250 2.93 245,386 Goldman Sachs Emerging Markets Equity Portfolio 3,612 2.01

4,723,045 Henderson UK Absolute Return 7,784 4.34 3,948,965 Hermes Multi Strategy Credit 4,985 2.78 6,048,613 Invesco Perpetual Global Targeted Returns 7,224 4.03 1,654,293 M&G Global Dividend 4,789 2.67 4,113,475 Majedie UK Income 7,300 4.07 284,455 Marlborough Special Situations 4,509 2.51 226,726 Matthews Asia Pacific Tiger 4,373 2.44 70,097 Muzinich Global Tactical Credit Hedged GBP 7,158 3.99

1,853,089 NGAM H2O MultiReturns 2,838 1.58 273,666 Orbis Global Equity Fund 4,442 2.48 19,264 RWC Global Emerging Markets 3,689 2.06 46,361 TwentyFour Corporate Bond 5,254 2.93 7,490 Vanguard US Opportunities 5,110 2.85

124,859 69.61


113




Exchange Traded Funds 25.59% [17.62%]1,695,000 iShares Core FTSE 100 12,329 6.87

37,500 iShares Core GBP Corporate Bond 5,425 3.02 50,000 iShares Core MSCI EM IMI 1,047 0.58 35,500 iShares GBP Corporate Bond 0-5yr 3,755 2.09 24,500 iShares Global High Yield Corporate Bond 1,809 1.01 31,500 iShares JPMorgan USD Emerging Markets Bond 2,688 1.50 20,000 iShares MSCI AC Far East ex-Japan 820 0.46 107,500 iShares MSCI Europe ex-UK Income 3,041 1.70 17,500 iShares Ultrashort Bond 1,756 0.98 30,000 iShares USD Corporate Bond 2,598 1.45 22,500 iShares USD High Yield Corporate Bond 1,790 1.00 119,500 SPDR S&P US Dividend Aristocrats 4,392 2.45 125,000 Vanguard S&P 500 4,452 2.48

45,902 25.59

Portfolio of investments 170,761 95.20 Net other assets 8,602 4.80 Net assets 179,363 100.00

The investments have been valued in accordance with note 1(h) of the Notes to the Aggregated Financial Statements.



Gross purchases for the year: £98,833,000 [2016: £63,551,000] (See note 14).Total sales net of transaction costs for the year: £126,136,000 [2016: £108,590,000] (See note 14).

114



01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000


Expenses 4 (1,498) (1,602)Net revenue before taxation 2,053 1,864Taxation 5 74 (145)Net revenue after taxation 2,127 1,719Total return before distributions 19,316 26,828Distributions 6 (1,986) (1,897)Change in net assets attributable to Shareholdersfrom investment activities 17,330 24,931

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000



(34,647) (42,647)Dilution adjustment 35 7Change in net assets attributableto Shareholders from investmentactivities (see above) 17,330 24,931

Retained distributions onaccumulation Shares 1,836 1,743



115



30/09/17 30/09/16Note £’000 £’000 £’000 £’000


Current assets:Debtors 7 237 245 Cash and bank balances 8 8,864 15,739

Total current assets 9,101 15,984Total assets 179,862 195,309Liabilities:

Creditors:Distribution payable (33) (43)Other creditors 9 (466) (457)


116






30/09/17 30/09/16 £’000 £’000

The net capital gains during the year comprise:Currency (losses)/gains (228) 158 Non-derivative securities 17,344 24,883 Rebates received from underlying funds 77 73 Transaction charges (4) (5)Net capital gains 17,189 25,109

3. Revenue01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000

Bank interest 5 7 Franked dividends from Collective Investment Schemes 757 910 Interest income from Collective Investment Schemes 212 253 Offshore funds dividends 2,235 1,910 Rebates received from underlying funds 337 349 Unfranked dividends from Collective Investment Schemes 5 37 Total revenue 3,551 3,466

117



4. Expenses01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000


AMC fees 1,416 1,518 1,416 1,518



63 62 Other expensesAudit fees 9 9 Professional fees 8 11 Publication fees 2 2

19 22 Total expenses 1,498 1,602


5. Taxation

(a) Analysis of the tax (credit)/charge in the year01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000

Corporation tax 71 –Deferred tax (Note 5 (c)) (145) 145 Total taxation for the year (Note 5 (b)) (74) 145

118




(b) Factors affecting the tax (credit)/charge for the year


01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 2,053 1,864Net revenue for the year multiplied by the standard rate of corporation tax 411 373

Effects of:Capital income subject to taxation – 9 Movement in excess management expenses (9) (26)Offshore realised/unrealised gains from capital (148) 147 Rebated capital expenses deductible for tax purposes 15 15 Revenue not subject to corporation tax (343) (373)Total tax (credit)/charge for the year (74) 145


(c) Deferred tax01/10/16 to 01/10/15 to

30/09/17 30/09/16£’000 £’000

Provision at start of the year 145 –Deferred tax charge in the year (145) 145 Provision at the end of the year – 145

119



6. Distributions


01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Interim 757 293 Final 1,132 1,501 Add: Revenue paid on cancellation of Shares 102 111 Deduct: Revenue received on creation of Shares (5) (8)Net distribution for the year 1,986 1,897 Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 2,127 1,719 Equalisation on conversion of Shares – 7 Tax relief from capital* (141) 171 Net distribution for the year 1,986 1,897



7. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 29 18 Amounts due for rebates from underlying funds 70 111 Amounts receivable for creation of Shares 103 –Income tax recoverable 34 115 Prepaid expenses 1 1 Total debtors 237 245


£’000 £’000

Cash and bank balances 8,864 15,739 Total cash and bank balances 8,864 15,739

120




£’000 £’000

Amounts payable for cancellation of Shares 255 175 Corporation tax payable 71 –Deferred tax payable – 145




10 10 Total other creditors 466 457








Scottish Equitable Plc 37.40Zurich Assurance Ltd 35.30

121


11. Share Classes


%




30/09/16 Issued Cancelled Converted 30/09/17Share Class B Income 4,512,383 385,438 (1,106,544) – 3,791,277 Share Class B Accumulation 104,380,542 620,227 (18,142,364) – 86,858,405














122




£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the yearbefore transaction costs:



Total purchase costs 23 19 Gross purchase total 98,833 63,551Analysis of total sale costsGross sales in the yearbefore transaction costs:

Collective Investment Schemes 126,155 108,616126,155 108,616

Commissions – CollectiveInvestment Schemes (19) (26)


01/10/16 to 01/10/15 to30/09/17 30/09/16

% %

Transaction costs as percentage ofprincipal amounts

Purchases – CommissionsCollective Investment Schemes 0.0233% 0.0299%




01/10/16 to 01/10/15 to30/09/17 30/09/16

% %

Transaction costs as percentage ofaverage net asset value




123








Level 3: Inputs are unobservable (ie for which market data isunavailable) for the asset or liability – – – –

170,761 – 179,325 –


124















125

Omnis Multi-Manager Cautious Fund




Investment Policy

It is expected that exposure to cash, cash equivalents and fixed income investments will make upthe majority of the Fund’s assets. However, investments will not be confined to any particular sector.



Investment Review

Over the period the Omnis Multi-Manager Cautious Fund returned 3.40% and the benchmark (35%BoA ML Sterling Broad Market / 20% FTSE All-Share / 15% BoA ML Global Broad Market / 10%Russell 1000 / 10% MSCI EAFE Ex-UK / 10% GBP LIBOR 3-month) returned 4.69% [source: FinancialExpress, bid to bid, net income reinvested].

Following November’s US presidential election result we increased the portfolio’s exposure to equitiesby adding to iShares Core FTSE 100 ETF. We also made a tactical increase to iShares USD TreasuryBond 7-10yr ETF when US government bonds fell in value. Following December’s rallies in UK andUS markets we sold at a profit some of our holdings in Vanguard S&P 500 ETF, which had alsobenefited from a fall in the value of sterling compared with the dollar. We also sold the portfolio’sremaining holding in Royal London Absolute Return Government Bond, which had not performed inline with our expectations. In January, we shifted the portfolio’s weighting from government bondsto cash by reducing our holding in iShares USD Treasury Bond 7-10yr ETF.

In April, we reduced our holding in Invesco Perpetual Corporate Bond on the back of its strongrecent performance. We used some of the proceeds to increase our holdings in HermesMulti-Strategy Credit and Pimco Global Investment Grade Credit, both offering access to globalbonds alongside foreign currency exposure. We switched some of our holding in NN AlternativeBeta to Invesco Perpetual Global Targeted Returns, a more actively managed and diversifiedmulti-asset fund. We used the proceeds from selling our holding in Invesco Perpetual CorporateBond to add to TwentyFour Corporate Bond Fund and iShares Core UK Gilt Ucits ETF. July’s strongprice momentum in global bond, equity, currency and commodity markets provided a goodopportunity to introduce ASG Managed Futures. We funded this acquisition by reducing our holdingin Oaktree Global Convertible Bond, which had performed well but was becoming too closely alignedto the movement of equity markets to offer us the desired diversification benefits.

When bond yields began to fall and prices rise in August, we increased our holdings in iShares CoreUK Gilt ETF and iShares USD Emerging Market Bond ETF. We introduced Henderson UK AbsoluteReturn, which aims to deliver consistent returns whatever the market conditions. September sawus shift the portfolio’s positioning slightly from UK equities to European equities by trimming aholding in Ardevora UK Equity and adding to a European equity ETF. We also reduced DB PlatinumIV Systematic Alpha and reallocated the proceeds to Winton Absolute Return Futures, which offersaccess to the same fund management team but through a cheaper structure.

126



Market Overview

Market reaction to Donald Trump’s US presidential election triumph in November was a surprise.Central banks continued to signal to markets that the conditions were right to start raising interestrates. The US Federal Reserve’s interest rate rises of 0.25% in December and a further 0.25% inMarch were generally well received by investors. Market uncertainty grew when Trump’s healthcarereform bill failed to obtain Congressional approval. Nevertheless, market sentiment was generallymore positive about the chances of his tax reform receiving stronger backing. The escalating war ofwords between the US and North Korea over its missile testing failed to unsettle markets.


Outlook



127


B Income30/09/17 30/09/16 30/09/15

(p) (p) (p)










128



B Accumulation30/09/17 30/09/16 30/09/15

(p) (p) (p)







129




Other expense underlying Transaction operating AMC expenses ratio funds costs charge

Date (%) (%) (%) (%) (%) (%)








Risk Warning






130



Collective Investment Schemes 66.46% [70.37%]57,723 Acadian Diversified Alpha 548 0.52

1,421,555 Ardevora UK Equity 3,203 3.01 2,420,392 Artemis US Extended Alpha 4,337 4.08 2,429,074 BlackRock Overseas Corporate Bond Tracker 3,532 3.33 5,339,952 BlackRock Overseas Government Bond Tracker 6,691 6.30 1,186,516 CF Lindsell Train UK Equity 4,406 4.15

73,298 Eastspring Japan Dynamic 1,021 0.96 1,318,847 FP CRUX European Special Situations 3,738 3.52 914,264 Henderson UK Absolute Return 1,507 1.42

2,429,394 Hermes Multi Strategy Credit 3,067 2.89 2,637,811 Invesco Perpetual Global Targeted Returns 3,150 2.97 2,450,335 Majedie UK Equity 4,349 4.09

51,369 Muzinich Global Tactical Credit Hedged GBP 5,245 4.94 24,814 Muzinich Long Short Credit Yield 3,243 3.05 4,876 Natixis International ASG Managed Futures 507 0.48 10,969 NN (L) Alternative Beta 1,128 1.06 375,662 PIMCO Global Investment Grade Credit 7,525 7.08

3,918,348 Royal London International Government Bond 4,295 4.04 47,610 TwentyFour Corporate Bond 5,395 5.08 4,699 Vanguard US Opportunities 3,206 3.02 5,008 Winton Absolute Return Futures 501 0.47

70,594 66.46


131




Exchange Traded Funds 30.81% [26.36%]738,919 iShares Core FTSE 100 5,375 5.06 13,178 iShares Core GBP Corporate Bond 1,907 1.80 528,868 iShares Core UK Gilts 6,881 6.48 83,287 iShares FTSE 250 1,582 1.49 149,463 iShares GBP Index-Linked Gilts 2,622 2.47 37,745 iShares JPMorgan USD Emerging Markets Bond 3,221 3.03 13,760 iShares MSCI AC Far East ex-Japan 564 0.53 77,465 iShares MSCI Europe ex-UK 2,191 2.06

155,961 iShares MSCI Japan 1,627 1.53 10,387 iShares MSCI Japan GBP Hedged 584 0.55 7,470 iShares UK Gilts 0-5yr 991 0.93

14,464 iShares USD Treasury Bond 7-10yr 2,129 2.01 85,578 Vanguard S&P 500 3,048 2.87

32,722 30.81

Portfolio of investments 103,316 97.27 Net other assets 2,900 2.73 Net assets 106,216 100.00






132



01/10/16 to 30/09/17 01/10/15 to 30/09/16

Note £’000 £’000 £’000 £’000


Expenses 4 (914) (1,014)Net revenue before taxation 1,612 2,054 Taxation 5 (194) (258)Net revenue after taxation 1,418 1,796 Total return before distributions 4,391 14,629 Distributions 6 (1,420) (1,803)Change in net assets attributable to Shareholders from investment activities 2,971 12,826

01/10/16 to 30/09/17 01/10/15 to 30/09/16

£’000 £’000 £’000 £’000




(20,303) (25,160)Dilution adjustment 20 5 Change in net assets attributable to Shareholders from investment activities (see above) 2,971 12,826

Retained distributions on accumulation Shares 1,280 1,626



133



30/09/17 30/09/16

Note £’000 £’000 £’000 £’000


Current assets:Debtors 7 1,717 901Cash and bank balances 8 2,470 4,191

Total current assets 4,187 5,092 Total assets 107,503 123,347 Liabilities:Distribution payable (37) (67)Other creditors 9 (1,250) (1,032)


134





30/09/17 30/09/16 £’000 £’000

The net capital gains during the year comprise:Currency (losses)/gains (38) –Non-derivative securities 3,003 12,824 Rebates received from underlying funds 10 14 Transaction charges (2) (5)Net capital gains 2,973 12,833

3. Revenue01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000

Bank interest 1 4 Franked dividends from Collective Investment Schemes 216 229 Interest income from Collective Investment Schemes 358 641 Offshore funds dividends 1,820 2,036 Rebates received from underlying funds 130 158 HMRC interest 1 –Total revenue 2,526 3,068

4. Expenses01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000


AMC fees 859 956 859 956




16 19 Total expenses 914 1,014



135



5. Taxation01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000


Corporation tax 194 258 Total taxation for the year (Note 5 (b)) 194 258



01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 1,612 2,054 Net revenue for the year multiplied by the standard rate of corporation tax 322 411

Effects of:Rebated capital expenses deductible for tax purposes 2 3 Revenue not subject to corporation tax (130) (156)Total tax charge for the year 194 258


(c) Provision for deferred tax

There is no provision required for deferred taxation at the Balance Sheet date in the currentyear or prior year.

136



6. Distributions


01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Interim 549 379 Final 795 1,332 Add: Revenue paid on cancellation of Shares 80 108 Deduct: Revenue received on creation of Shares (4) (16)Net distribution for the year 1,420 1,803

Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 1,418 1,796 Equalisation on conversion of Shares – 4 Tax relief from capital* 2 3 Net distribution for the year 1,420 1,803

* Tax relief has arisen whereby excess revenue expenses have been utilised to reduce the tax arising on capitalrebates from underlying funds.


7. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 12 35 Amounts due for rebates from underlying funds 18 29 Dilution adjustment receivable 1 1 Income tax recoverable - 84 Sales awaiting settlement 1,686 751 Prepaid expenses - 1 Total debtors 1,717 901


£’000 £’000


137




£’000 £’000

Amounts payable for cancellation of Shares 533 142 Corporation tax payable 125 197 Purchases awaiting settlement 500 602 Income tax payable* 4 –

1,162 941 Accrued expensesManager and AgentsAMC fees 67 75



10 11 Total other creditors 1,250 1,032

* Due to amendment of underlying assets income tax following receipt of confirmed rates.








Zurich Assurance Ltd 50.30

138



11. Share Classes


%





Share Class B Income 5,114,559 286,351 (1,377,535) – 4,023,375 Share Class B Accumulation 64,227,250 365,016 (10,650,497) – 53,941,769






A proportion of the financial net assets of the Fund are denominated in currencies otherthan Sterling with the effect that the balance sheet and total return can be affected bycurrency movements.

The Fund holds an insignificant foreign currency exposure at 30 September 2017 thereforea currency table has not been disclosed.

Changes in exchange rates would have no material impact on the valuation of foreigncurrency financial assets or liabilities as at the balance sheet date. Consequently, nosensitivity analysis has been presented.





139




£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the year before transaction costs:



Total purchase costs 10 25 Gross purchase total 45,396 107,142

Analysis of total sale costsGross sales in the year before transaction costs:


Commissions – Collective Investment Schemes (10) (27)


The portfolio transaction costs table above includes direct transaction costs suffered by theFund during the year.


01/10/16 to 01/10/15 to30/09/17 30/09/16

% %

Transaction costs as percentage of principal amounts

Purchases – CommissionsCollective Investment Schemes 0.0220% 0.0233%




140




01/10/16 to 01/10/15 to30/09/17 30/09/16

% %Transaction costs as percentage of average net asset value






Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000

Valuation technique




103,316 – 118,255 –

141















142

Omnis Multi-Manager Distribution Fund


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

Investment Policy

It is expected that there will be core holdings in UK equities and bonds. However, investments willnot be confined to any particular sector.



Investment Review

Over the period the Omnis Multi-Manager Distribution Fund returned 4.99% and the benchmark(35% BoA ML Sterling Broad Market / 20% FTSE All-Share / 15% BoA ML Global Broad Market /10% Russell 1000 / 10% MSCI EAFE Ex-UK / 10% GBP LIBOR 3-month) returned 4.69% [source:Financial Express, bid to bid, net income reinvested].

At the beginning of the period, we sold our remaining holdings in iShares Euro High Yield ETF, whichhad performed well as the euro strengthened compared with sterling. We also sold Legg MasonIncome Optimiser and iShares Emerging Markets Local Government Bond ETF. We reduced iSharesUK Dividend Plus ETF and instead added to SPDR UK Dividend Aristocrats, a fund with relativelyless exposure to equity market volatility. In March, we introduced an alternative income source tothe portfolio by adding the Renewables Infrastructure Group, an investment trust investing in windand solar energy companies. We switched some of our holding in iShares UK Dividend Plus ETF toSPDR UK Dividend Aristocrats to create a more even split between funds offering higher dividendyields and those aiming to provide robust dividend growth.

In April, we introduced two new holdings, including Invesco Perpetual Global Targeted Incomewhich is an absolute return fund that provides monthly income. We also made an initial investmentin iShares Ultrashort Bond ETF, a cash-equivalent holding with a very short maturity date.

In May, we disposed of three long-held investments that had provided satisfactory returns. We soldour holding in F&C Commercial Property due to concerns about the impact of Brexit on commercialproperty prices. We reduced the portfolio’s exposure to bonds by selling Invesco Perpetual CorporateBond, a fund we have held for some time but which has had a change of management, and ourholding in Artemis Income. We used the proceeds to re-introduce Vanguard FTSE All-World HighYield ETF and iShares GBP Corporate Bond, as well as adding to holdings in Invesco PerpetualGlobal Targeted Returns and The Renewables Infrastructure Group. In July, we sold our remainingholding in 3i Infrastructure, an investment we had held since 2009, to reduce the number of holdingsthat invest in infrastructure.

We reduced our holding in Schroder Asian Income in August after its recent strength and used theproceeds to add to SPDR UK Dividend Aristocrats after its recent weakness. September saw theintroduction of Franklin UK Equity Income, a replacement to Artemis Income and the third UK equityincome fund in the portfolio. We also continued to tactically trade ETFs, seeking to build stakesahead of the income pay dates.


143



Market Overview

Market reaction to Donald Trump’s US presidential election triumph in November was a surprise.Central banks continued to signal to markets that the conditions were right to start raising interestrates. The US Federal Reserve’s interest rate rises of 0.25% in December and a further 0.25% inMarch were generally well received by investors. Market uncertainty grew when Trump’s healthcarereform bill failed to obtain Congressional approval. Nevertheless, market sentiment was generallymore positive about the chances of his tax reform receiving stronger backing. The escalating warof words between the US and North Korea over its missile testing failed to unsettle markets.


Outlook



144


B Income B Accumulation30/09/17 30/09/16 30/09/15 30/09/17 30/09/16 30/09/15

(p) (p) (p) (p) (p) (p)

Change in net assets per Share

Opening net asset value per share 143.73 137.61 142.85 192.06 175.84 174.74

Return before operating charges* 9.74 14.23 2.78 13.10 18.58 3.32

Operating charges (1.90) (1.82) (1.78) (2.57) (2.36) (2.22)Return after

operating charges 7.84 12.41 1.00 10.53 16.22 1.10 Distributions (6.65) (6.29) (6.24) (9.02) (8.18) (7.82)Retained distributions

on accumulation shares – – – 9.02 8.18 7.82 Closing net asset

value per share 144.92 143.73 137.61 202.59 192.06 175.84

* after direct transaction costs of: 0.12 0.10 0.08 0.16 0.13 0.10

PerformanceReturn after

operating charges 5.45% 9.02% 0.70% 5.48% 9.22% 0.63%

Other informationClosing net

asset value (£’000) 20,409 23,929 23,840 10,983 12,738 13,283Closing number

of shares 14,083,359 16,648,189 17,324,765 5,421,226 6,632,350 7,553,611Operating charges 1.29% 1.30% 1.22% 1.29% 1.30% 1.22%Direct transaction costs 0.08% 0.07% 0.06% 0.08% 0.07% 0.06%

Prices (p)Highest share price 150.81 146.28 151.86 205.38 192.92 188.81Lowest share price 141.44 131.11 139.05 188.98 169.22 171.08

Share classes A Income and A Accumulation closed on 5 August 2016 and were removed from theComparative Table. Therefore the sum of the Net Asset Values for 30 September 2016 will not equalthe Net Asset Value on the Balance Sheet.


145


Operating Charges Synthetic Rebates from Total


Date (%) (%) (%) (%) (%) (%)














146


ionHoldingsor Nominal Market value % of TotalValue Investments £’000 Net Assets

Collective Investment Schemes 61.60% [71.92%]656,711 Artemis Global Income 641 2.04 465,126 BlackRock Continental European Income 743 2.37 986,433 Fidelity Enhanced Income 1,138 3.62 496,895 Franklin UK Equity Income 808 2.57

1,291,942 Henderson Strategic Bond 1,333 4.24 965,368 Hermes Multi Strategy Credit 1,005 3.20 625,000 HICL Infrastructure* 975 3.10

1,551,997 Invesco Perpetual Global Targeted Income 1,593 5.07 792,369 JOHCM UK Equity Income 1,638 5.22 431,910 M&G Global Dividend 932 2.97 629,548 Majedie UK Income 994 3.17 95,000 P2P Global Investments* 763 2.43

150,747 PIMCO Funds Global Investors Series Income 1,628 5.19 11,861 RWC Funds Enhanced Income 984 3.13

220,159 Schroder Asian Income 602 1.92 2,562,806 Schroder Income Maximiser 1,161 3.70

13,258 TwentyFour Corporate Bond 1,343 4.28900,000 TwentyFour Income* 1,060 3.38

19,341 61.60 Equities 3.29% [0.00%]

950,000 Renewables Infrastructure 1,033 3.29 1,033 3.29

Exchange Traded Funds 24.82% [19.24%]5,500 iShares Core GBP Corporate Bond 796 2.54

22,500 iShares Core UK Gilts 293 0.93 17,000 iShares GBP Ultrashort Bond 1,706 5.44 9,000 iShares Global High Yield Corporate Bond 931 2.97 5,500 iShares JPMorgan USD Emerging Markets Bond 469 1.49

92,500 iShares UK Dividend Plus 822 2.62 6,000 iShares USD High Yield Corporate Bond 477 1.52

10,500 iShares USD Short Duration High Yield Corporate Bond 748 2.38 75,000 SPDR S&P UK Dividend Aristocrats 940 3.00 14,500 Vanguard FTSE All-World High Dividend Yield 607 1.93

7,789 24.82

Portfolio of investments 28,163 89.71Net other assets 3,229 10.29 Net assets 31,392 100.00

* Investment Trusts.







147


01/10/16 to 30/09/17 01/10/15 to 30/09/16Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 558 1,832 Revenue 3 1,751 1,898

Expenses 4 (288) (328)Net revenue before taxation 1,463 1,570Taxation 5 (133) (123)Net revenue after taxation 1,330 1,447 Total return before distributions 1,888 3,279 Distributions 6 (1,567) (1,718)Change in net assets attributable to Shareholdersfrom investment activities 321 1,561

01/10/16 to 30/09/17 01/10/15 to 30/09/16£’000 £’000 £’000 £’000



(6,133) (4,127) Dilution adjustment 12 1 Change in net assets attributable

to Shareholders from investment activities (see above) 321 1,561





148


30/09/17 30/09/16Note £’000 £’000 £’000 £’000


Investments 28,163 33,424 Current assets:

Debtors 7 1,038 893 Cash and bank balances 8 3,326 3,689

Total current assets 4,364 4,582 Total assets 32,527 38,006 Liabilities:Creditors:

Distribution payable (302) (315)Other creditors 9 (833) (1,024)



149





30/09/17 30/09/16 £’000 £’000

The net capital gains during the year comprise:Currency losses (1) (1)Non-derivative securities 532 1,798 Rebates received from underlying funds 30 38 Transaction charges (3) (3)Net capital gains 558 1,832

3. Revenue01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000

Bank interest – 2 Franked dividends from Collective Investment Schemes 474 561 Interest income from Collective Investment Schemes 235 283 Offshore funds dividends 754 722 Overseas dividends 215 242 Rebates received from underlying funds 7 19 Unfranked dividends from Collective Investment Schemes 66 69 Total revenue 1,751 1,898


150


4. Expenses01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000


AMC fees 260 298 260 298




16 18 Total expenses 288 328


5. Taxation01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000


Corporation tax 132 125 Deferred tax (Note 5 (c)) 1 (2)Total taxation for the year (Note 5 (b)) 133 123


151





01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

Net revenue before taxation 1,463 1,570 Net revenue for the year multiplied by the

standard rate of corporation tax 293 314 Effects of:Rebated capital expenses deductible for tax purposes 6 8 Revenue not subject to corporation tax (166) (199)Total tax charge for the year 133 123


(c) Deferred tax 01/10/16 to 01/10/15 to

30/09/17 30/09/16 £’000 £’000

Provision at start of the year 2 4 Deferred tax charge in the year 1 (2)Provision at the end of the year 3 2


152


6. Distributions


01/10/16 to 01/10/15 to 30/09/17 30/09/16

£’000 £’000

First interim 345 387 Second interim 329 423 Third interim 382 387 Final 460 493 Add: Revenue paid on cancellation of Shares 77 71Deduct: Revenue received on creation of Shares (26) (43)Net distribution for the year 1,567 1,718 Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 1,330 1,447 Equalisation on conversion of Shares – 1 Expenses charged to capital 288 328 Tax relief from capital* (51) (58)Net distribution for the year 1,567 1,718

*Tax relief has arisen whereby excess revenue expenses have been utilised to reduce the tax arising on capitalexpenses and rebates from underlying funds.


7. Debtors30/09/17 30/09/16

£’000 £’000

Accrued revenue 103 98 Amounts due for rebates from underlying funds 7 14 Amounts receivable for creation of Shares 7 –Income tax recoverable 27 48 Sales awaiting settlement 894 733 Total debtors 1,038 893


£’000 £’000



153



£’000 £’000

Amounts payable for cancellation of Shares 97 181 Corporation tax payable 92 111 Deferred tax payable 3 2 Dilution adjustment payable 1 1 Purchases awaiting settlement 605 693


20 23 Depositary and AgentsDepositary fees 2 1 Safe custody fees 1 –Transaction charges 2 1


10 11 Total other creditors 833 1,024








Sterling ISA Managers (Nominees) Limited 47.50FundsDirect Nominees Limited 29.40


154


11. Share Classes


%





Share Class B Income 16,648,189 2,001,310 (4,566,140) – 14,083,359 Share Class B Accumulation 6,632,350 244,047 (1,455,171) – 5,421,226










155





The table below shows the interest rate risk profile at the balance sheet date:

Financial assetsFloating rate Fixed rate not carrying

Currency Assets financial assets financial assets interest Total£’000 £’000 £’000 £’000

30/09/17Sterling 3,304 – 29,195 32,499 US Dollar 22 – 6 28 Total 3,326 – 29,201 32,527

30/09/16Euro 29 – – 29Sterling 3,622 – 34,317 37,939US Dollar 38 – – 38Total 3,689 – 34,317 38,006

FinancialFloating rate Fixed rate liabilities

financial financial not carryingCurrency Liabilities liabilities liabilities interest Total

£’000 £’000 £’000 £’000

30/09/17Sterling – – 1,135 1,135Total – – 1,135 1,135

30/09/16Sterling – – 1,339 1,339Total – – 1,339 1,339



156




£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the year

before transaction costs:Equities 1,039 –Collective Investment Schemes 31,566 24,777

32,605 24,777 Commissions – Equities 1 –Commissions – Collective

Investment Schemes 13 10 Taxes – Collective

Investment Schemes – 6 Total purchase costs 14 16 Gross purchase total 32,619 24,793 Analysis of total sale costsGross sales in the year

before transaction costs:Collective Investment Schemes 38,452 27,082

38,452 27,082 Commissions – Collective

Investment Schemes (14) (11)Total sale costs (14) (11)Total sales net of transaction costs 38,438 27,071

01/10/16 to 01/10/15 to30/09/17 30/09/16

% %

Transaction costs as percentage of principal amounts

Purchases – CommissionsEquities 0.0962% 0.0000%Collective Investment Schemes 0.0412% 0.0404%

Purchases – TaxesEquities 0.0000% 0.0000%Collective Investment Schemes 0.0000% 0.0242%



157


14. Portfolio transaction costs (continued)01/10/16 to 01/10/15 to

30/09/17 30/09/16% %

Transaction costs as percentage of average net asset value






Assets Liabilities Assets Liabilities£’000 £’000 £’000 £’000

Valuation technique




28,163 – 33,424 –


158


First Distribution in pence per Share

Group 1 Shares purchased prior to 1 October 2016Group 2 Shares purchased on or after 1 October 2016 to 31 December 2016





Second Distribution in pence per Share

Group 1 Shares purchased prior to 1 January 2017Group 2 Shares purchased on or after 1 January 2017 to 31 March 2017






159


Third Distribution in pence per Share

Group 1 Shares purchased prior to 1 April 2017Group 2 Shares purchased on or after 1 April 2017 to 30 June 2017






Group 1 Shares purchased prior to 1 July 2017Group 2 Shares purchased on or after 1 July 2017 to 30 September 2017





Distribution Table (continued)As at 30 September 2017

160


Classes of Shares

The Company can issue different Classes of Shares in respect of any Fund. Holders of Income Sharesare entitled to be paid the revenue attributable to such Shares, in respect of each annual or interimaccounting period. Holders of Accumulation Shares are not entitled to be paid the revenueattributable to such Shares, but that revenue is retained and accumulated for the benefit ofshareholders and is reflected in the price of Shares.

Valuation Point

The valuation point for each Fund is 12 noon on each dealing day (being each day which is abusiness day in London). Valuations may be made at other times under the terms contained withinthe Prospectus.

Buying and Selling of Shares

The ACD will accept orders to deal in the shares on normal business days between 9:00 am and5:00 pm. Instructions to buy or sell shares may be either in writing to: PO Box 10191, Chelmsford,CM99 2AP or by telephone on 0345 140 0070*. A contract note will be issued by close of businesson the next business day after the dealing date to confirm the transaction.

Prices

The prices of shares for each Class in each Fund will be posted on www.fundlistings.com and canalso be obtained by telephoning the Administrator on 0345 140 0070* during the ACD’s normalbusiness hours.

Other Information

The Instrument of Incorporation, Prospectus and the most recent interim and annual reports maybe inspected at the office of the ACD which is also the Head Office of the Company and copies maybe obtained, free of charge, upon application to Omnis Investments Limited, PO Box 10191,Chelmsford CM99 2AP.

Shareholders who have any complaints about the operation of the Company should contact theACD or the Depositary in the first instance. In the event that a shareholder finds the responseunsatisfactory they may make their complaint direct to the Financial Ombudsman Service atExchange Tower, London E14 9SR.

* Please note that telephone calls may be recorded for monitoring and training purposes, and to confirm investors' decisions.

Report

The annual report of the Company will be published within four months of each annual accountingperiod and the interim report will be published within two months of each interim accounting period.

Interim financial statements period ended 31 March

Annual financial statements year ended 30 September

Distribution Payment Dates

Interim – 31 May (for Omnis Multi-Manager Distribution Fund and Omnis Multi AsssetIncome Fund only - 31 May, 31 August and 28 February)

Final – 30 November

General Information

161


General Information (continued)

Data Protection

The details you have provided will be held electronically by the Funds’ Registrar but will not be usedfor any purpose except to fulfil its obligations to shareholders.

Effects of Personal Taxation

Investors should be aware that unless their shares are held within an ISA, or switched betweenFunds in this OEIC, selling shares is treated as a disposal for the purpose of Capital Gains tax.

Risk Warning

An investment in an Open Ended Investment Company should be regarded as a medium to longterm investment. Investors should be aware that the price of shares and the income from themmay fall as well as rise and investors may not receive back the full amount invested. Pastperformance is not a guide to future performance. Investments denominated in currencies otherthan the base currency of a fund are subject to fluctuation in exchange rates, which may befavourable or unfavourable.

Remuneration

The ACD’s remuneration policy (“Remuneration Policy”) aims to ensure that its remuneration policiesand practices;

• are consistent with, and promote, sound and effective risk management;

• do not impair the ACD in its duty to act in the best interests of the Funds it manages;

• do not encourage risk taking which is inconsistent with the risk profiles or the instrumentconstituting the funds or the prospectus, as applicable, of the Funds it manages; and

• include appropriate fixed and variable components of remuneration, including salaries anddiscretionary pension benefits.

The Remuneration Policy will apply to those staff working for the ACD whose professional activitieshave a material impact on the risk profiles of the ACD or the Funds. The Remuneration Policy willapply for the first time in full for the financial year ended 31 December 2017.

Remuneration and benefits are agreed by the Directors of the ACD and reflect the performance ofthe identified member of staff individuals and of the Openwork Group, of which the ACD is a part.

Up-to-date details of the matters set out above are available via the ACD’s website,www.omnisinvestments.com. A paper copy will be made free of charge upon request.

Perivan Financial Print 247273

Documents

Annual Report & Financial Statements€¦ · Stuart Buckingham (resigned 24 March 2017) Octopus Investments Limited Peter Davis 33 Holborn Philip Martin (resigned 31 December 2017)