EUROPEAN CAPITAL GROWTH FUND I EURFUND FACTSHEET - AS AT 31 MAY 2017

OBJECTIVES

INVESTMENT STYLE

The Fund invests in wealth creating companies at attractive valuations.

Building concentrated portfolios from the bottom up, unconstrained by

the composition of the fund’s benchmark index, the managers seek to

make a small number of long-term investments, primarily in growing

companies, with strong management and operating in favourable business

environments.

FUND AIM

The investment objective is to generate capital growth by investing in a

concentrated portfolio of equities selected from European markets.

Overwhelmingly, but not exclusively, the managers invest in companies

that are at the larger end of the capitalisation scale.

Risk Warning: Past performance is no guideto future performance. The value of holdingsmay fall as well as rise and investors may notget back their initial investment. Importantinformation: Performance displayed is for theRetail Share Class. Performance is calculatedon a NAV to NAV basis and does not takeinto account any initial fees. Performance isdisplayed net of fees and assumes income isreinvested.

Period 1 Month 3 Months YTD 1 Year 3 Years 5 Years Inception Apr 01

Portfolio (%) 0.2 4.4 6.7 11.7 32.8 114.7 195.5

Benchmark (%) 1.6 8.4 11.1 18.1 25.1 98.1 93.5

Morningstar Peer Group (%) 1.8 9.3 11.5 16.3 28.1 100.5 122.2

Quartile 4 4 4 4 1 1 1

DISCRETE CALENDAR YEAR PERFORMANCE

Period 2016 2015 2014 2013 2012

Fund (%) 6.2 16.0 6.8 32.3 21.3

Benchmark (%) 2.4 10.7 6.4 22.1 19.4

STANDARDISED PERFORMANCE

Period 1 year to 31/05/2017 31/05/2016 31/05/2015 31/05/2014 31/05/2013

Fund (%) 11.7 -1.1 20.2 22.1 32.4

PERFORMANCE

PERFORMANCE SINCE INCEPTION

PORTFOLIO SUMMARY

TOP 10 HOLDINGS

LafargeHolcim Ltd CHF2 (Regd) 3.6%

Loomis AB Series 'B' 3.2%

Topdanmark AS DKK1 3.2%

Novo Nordisk AS DKK0.2 Series B 3.0%

Zodiac Aerospace SA 3.0%

Svenska Handelsbanken Series 'A' 3.0%

Novartis AG CHF0.50 (Regd) 3.0%

Michelin (CGDE) €2 (Regd) 2.9%

Deutsche Post AG 2.8%

Elekta Instrument AB 2.8%

Total 30.6%

COUNTRY

Switzerland 17.1%

Sweden 15.0%

Germany 13.9%

Denmark 10.8%

Norway 9.1%

Netherlands 7.3%

France 7.0%

Finland 6.3%

United Kingdom 5.7%

Other 7.9%

Total 100.0%

Sources: Waverton Investment Management, Morningstar

SECTOR

Industrials 22.3%

Consumer Staples 20.7%

Health Care 17.9%

Materials 10.7%

Financials 9.9%

Consumer Discretionary 7.6%

Energy 4.5%

Cash 6.5%

Total 100.0%

Fund Benchmark Average peer group

50

100

150

200

250

300

2002 2004 2006 2008 2010 2012 2014 2016

COMMENTARY

In May, the Fund’s price continued to increase this time by 0.2% in euros against the market's rise of 1.6%. The continuation

of QE, even though the European economy is recovering nicely, is lifting all boats. Whilst remaining fully invested in wealth

creating growth companies, we are being characteristically vigilant over the Reasonable Prices element of our investment

approach. Indeed, borrowing from one of the greatest European investors of all time, Anthony Bolton: “Buying when

valuations are low against history substantially increases your chance of making money; whilst buying when they are high

increases your risk of loss”. This may sound obvious, but history suggests few investors are disciplined enough to actually

carry this out, perhaps convincing themselves that it is different this time.

Last month we added to LafargeHolcim making it the biggest holding in both funds, and whose valuation is in line with

history. We very nearly sold the shares a few months ago when Eric Olsen was ousted as CEO. His strategy for the

company had been the trigger for investing in the first place; he had reversed a decades old corporate policy of volume

growth at any cost to focussing on return to shareholders. He prioritised dividends and buy-backs over acquisitions and

focussed capex on maintenance. Pricing over volume was prioritised, even at the expense of a loss of market share.

In late April Eric Olsen was forced to resign in the wake of revelations that some employees in the Syrian cement plant had

been linked to the civil war between 2011 and 2014. We became fearful that in reality he had lost the board’s confidence

and there was a risk there would be a return to the status quo ante; the pursuit of volume and market share. We nearly

sold the shares but decided to wait until a new CEO was appointed.

In late May Jan Jenisch was appointed. He worked at Sika for 20+ years, including as its CEO for the last 5 years where he

was highly regarded by investors. Sika is a company we know well (it is very expensive so we don't own it). Mr Jenisch was

the architect behind the company's success; although acquisitive, he focused on transforming Sika into a value added player

in the sector; the company makes additives and mortars which, for example, make cement dry slower / faster, use less

water, set in frosty conditions or set harder. We are comforted that Lafarge's strategy will not return to volume at any

cost, and will likely focus on value added. We would not be surprised if Mr Jenisch tempts a few of his colleagues over from

Sika. We are excited about this investment.

FUND DETAILS

FUND FACTS

Launch Date 4th April 2001

Morningstar Category Europe Ex-UK Large Cap Equity

Benchmark MSCI Europe ex UK TR

Fund Size €125.5m

No. of Holdings 38

Domicile Luxembourg

Sedol BD5NVN4

Bloomberg Code ZENECGI:LX

Fund Type SICAV

Base Currency EUR

Other Currencies GBP

Ex Dividend Dates 12th February

RISK STATISTICS

3Y Annualised

Fund Volatility (%) 12.2

Index Volatility (%) 13.6

Sharpe Ratio 1.0

Information Ratio 0.4

Tracking Error 4.9

Alpha (%) 3.9

Beta 0.8

Active Share (% - Current) 87.8

FUND INFORMATION

Share class ISIN Minimum AMC INC/ACC NAV Historic yield (%) Ongoing charge (%)

I EUR LU0968447358 1,000,000 EUR 0.75% INC 2.61 0.92% 1.01%

L EUR LU0968447275 500,000 EUR 1.00% INC 2.53 0.59% 1.30%

I GBP LU0968447432 1,000,000 GBP 0.75% INC 1.86 1.07% 1.01%

R GBP LU0986115417 10,000 GBP 1.25% INC 174.69 0.57% 1.55%

CONTACT DETAILS

MARKETING CONTACT

Charles Scott Plummer

csp@waverton.co.uk

+44 (0)20 7484 7429

www.waverton.co.uk

MARKETING CONTACT

Jonno Ross

jross@waverton.co.uk

+44 (0)20 7484 7491

www.waverton.co.uk

AUTHORISED COPORATE DIRECTOR

Casa4 Funds

www.casa4funds.com

Risk Warning: past performance is no guide to future performance. The value of holdings may fall as well as rise. All financial investments involve an element of

risk. The level of income from the investment may fluctuate in value. Currency movements may also affect the value of the investment. If the

currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due

to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency. For full details of investment

risks please refer to the Prospectus. A copy of the full prospectus and the KIID is available from Waverton Investment Management or ACD, Casa4

Funds. Sources: Waverton, Morningstar

FUND MANAGER

Chris Garsten

FUND MANAGER

Charles Glasse

ANALYST

John Buckland