RANMORE GLOBAL EQUITY FUND PLC the “Company”ranmorefunds.com/wp-content/uploads/2016/07/AR_Ranmore...2016/12/31 · MSCI World Index as at 30th June 2015 4,664.40 Percentage change

RANMORE GLOBAL EQUITY FUND PLC INTERIM REPORT & FINANCIAL STATEMENTS

RANMORE GLOBAL EQUITY FUND PLC (the “Company”)

Unaudited Interim Report and Financial Statements

For the period from 1st July 2016 to the 31st December 2016


Page 1 of 30

CONTENTS

Financial Summary 2 Statement of Changes in Net Assets Attributable to

Participating Shareholders

10

Investment Manager’s Report 3 Statement of Cash Flows 11

Background Information 5 Notes to the Financial Statements 12

Statement of Financial Position 8 Portfolio Statement 27

Statement of Profit or Loss and

Other Comprehensive Income

9 Significant Portfolio Movements 28

Corporate Information 29


Page 2 of 30

FINANCIAL SUMMARY

For the period ended 31st December 2016

Performance

USD

Investor

Class

USD

Advisor

Class

EUR

Investor

Class

GBP

Investor

Class

Total Net Assets as at 31st December 2016 $75,990,908 $12,365,617 €16,750,207 £17,846,638

Net Asset Value Per Participating Share as at

31st December 2016 $221.23 $117.71 €181.51 £188.72

MSCI World Index as at 31st December 2016 4,483.61

Percentage change during the period % % % %

Net Asset Value Per Participating Share 0.3 - 5.8 8.0

MSCI World Index 6.8

Net Asset Value Per Participating Share $ $ € £

High 230.62 122.87 184.82 195.42

Low 217.77 115.91 169.52 175.67

For the year ended 30th June 2016

Performance

USD

Investor

Class

USD

Advisor

Class

EUR

Investor

Class

GBP

Investor

Class

Total Net Assets as at 30th June 2016 $72,829,916 $12,823,464 €15,828,481 £17,878,860


30th June 2016 $220.64 $117.69 €171.52 £174.70

MSCI World Index as at 30th June 2016 4,534.75

Percentage change during the year % % % %

Net Asset Value Per Participating Share (5.5) (6.0) (5.2) 11.5

MSCI World Index (2.8)


High 233.92 125.40 183.57 174.70

Low 202.53 108.27 152.76 137.40

For the year ended 30th June 2015

Performance

USD

Investor

Class

USD

Advisor

Class

EUR Investor

Class

GBP

Investor

Class

Total Net Assets as at 30th June 2015 $74,319,584 $14,714,828 €17,321,744 £13,281,785


30th June 2015 $233.55 $125.20 €180.84 £156.67

MSCI World Index as at 30th June 2015 4,664.40

Percentage change during the year % % % %

Net Asset Value Per Participating Share (2.0) (2.5) 20.4 6.7

MSCI World Index 1.4


High 243.25 130.47 194.09 171.75

Low 218.52 117.56 147.78 143.57


Page 3 of 30

INVESTMENT MANAGER’S REPORT

The six month period to 31st December 2016 saw the impact of two political events which caught markets off guard. The

first was the UK’s referendum to leave the EU (the vote actually took place in the final week of June 2016), and the second

was the election of Donald Trump as US President on November 8th. Over the period 1st July 2016 – 31st December 2016,

the Fund returned 0.3%, underperforming the MSCI World Index, which returned 6.8%. The underperformance occurred

in the immediate aftermath of these events.

In spite of the shock of the Brexit vote, the MSCI World Index rallied in July, rising 4.2%, and the Fund lagged (up 1.4% for

the month) as a result of an underweight exposure to Asia (up 5.8% in July) and the Fund’s cash holdings. The election of

Mr. Trump saw a sharp rally in Financials, Industrials, Materials and Energy as the market took a bullish view of a Trump

administration scaling back regulation, lowering taxes and increasing infrastructure spending. The Fund had almost no

exposure to these sectors and as a result trailed the MSCI World Index by 2.9% in November and 1.6% in December.

Although we are clearly disappointed to have trailed the wider market by 6.5%, we wrote in December that we would rather

be cautious and preserve investors’ capital than lose money on bad businesses that don’t meet our investment criteria.

The bounce in the aforementioned sectors was, we believe, a reflection of the bullish, “risk on” approach of the market

took post November 8th, rather than any change at the time in the fundamentals of the companies in the sectors concerned.

The Information Technology sector provided the largest return over the period, returning 2.5%. Leading the sector was the

Fund’s largest holding, Alphabet Inc. (Google). After largely treading water in the first half of 2016, Google generated 0.85%

to the Fund in the second half of the year. Google’s core advertising segment is robust enough to fund less established

operations, such as Google Cloud, its Daydream virtual reality product, and its Google Pixel phone, which should contribute

to earnings in the coming years. In the 12 months capturing its most recent quarterly results, Google generated free cash

flow of $26bn, in contrast to the whole of the MSCI World Energy Index, which failed to generate positive free cash flow in

the 12 months to December 2016.

In falling 1.0%, the largest detractor to performance was the Healthcare sector, largely as a result of Gilead Sciences. We

took the opportunity in January to reduce our specific risk in Gilead by trimming the position. Despite strong free cash flow

generation and a growing HIV franchise, the outlook for Gilead’s previously blockbuster Hepatitis C segment has weakened

due to weak pricing power as a result of generic competition. These drugs generate such high gross margins that any drop

in revenue is reflected in earnings. Ultimately, earnings drives share price and we took a disciplined approach,

acknowledged that our original investment thesis had no played out, and reduced our exposure to Gilead.

The graph below and table below it demonstrate the Fund’s Regional and Sector weightings relative to its benchmark, the

MSCI World Index. At year-end, the Fund was underweight all regions as a result of its cash holding. The sector breakdown

shows that the Fund was overweight Information Technology and Healthcare, sectors that, in general, are capital light and

generate free cash flow. The Fund was underweight Financials, Materials, Industrials and Energy – sectors which benefited

from the Trump rally. Shareholders will have noticed from our January factsheet that we have taken the opportunity to

rebalance the portfolio by selling holding in which we see limited return potential, such as tobacco (Consumer Staples),

and deploying the proceeds to companies where we think business conditions are improving, such as Blackstone

(Financials). The latter’s private equity model may benefit from high asset prices as it seeks to list or sell projects. We will

deploy Fund assets in a disciplined manner when suitable opportunities present themselves, cognisant at all times of our

objective of growing investors’ capital over a medium to long-term horizon.


Page 4 of 30

Sector Portfolio

June

2016

(%)

Portfolio

December

2016

(%)

MSCI WI

December

2016

(%)

Overweight / (Underweight)

relative to MSCI World Index

as at December 2016 (%)

Consumer Discretionary 20 13 12 1

Consumer Staples 6 13 10 3

Energy 1 0 7 (7)

Financials 0 0 18 (18)

Healthcare 21 18 12 6

Industrials 0 0 11 (11)

Information Technology 29 25 15 10

Materials 0 0 5 (5)

Real Estate 0 0 3 (3)

Telecommunication Services 3 3 4 (1)

Utilities 0 0 3 (3)

Cash 20 28 0 28

100 100 100

Finally, as investors will be aware from the communication before Christmas, Tim Allsop and Kevin Williams stepped down

on 31st December 2016 as co-portfolio managers of the Fund. Sean Peche will continue as portfolio manager of the Fund,

a role he has performed since its inception. Ranmore Fund Management Ltd wishes to thank Tim and Kevin for their

contributions and expertise during their time on the Investment Committee.

Thank you for your support,

Ranmore Fund Management Ltd.


Page 5 of 30

BACKGROUND INFORMATION

Principal Activity

Ranmore Global Equity Fund PLC (formerly BlueAlpha Global Equity Fund PLC) was originally incorporated in Jersey on 26th

June 2008 and was registered in Ireland by way of continuation, as an open-ended investment company and authorised as

a UCITS by the Central Bank of Ireland pursuant to the UCITS Regulations 2011 on 29th September 2011. It has

subsequently been rebranded. The accompanying changes that followed this rebrand were (i) the name change to

Ranmore Global Equity Fund PLC, (ii) the change of Promoter to Bateleur Capital and (iii) to delete the restriction of investing

no more than 2% of the Company’s net assets in exchange traded put options and to instead permit the Company to use

options for efficient portfolio management. Investment in derivative instruments will not exceed 10% of the Company’s

net asset value at any point in time.

Investment Objective

To seek to outperform the MSCI World Index, a free float-adjusted market capitalization weighted index that is designed

to measure the equity market performance of developed markets (Bloomberg Ticker: NDDUWI Index) and to provide

capital growth over a medium to long-term time horizon.

Investment Strategy

The Investment Manager’s approach is a bottom up, “value based” research driven stock picking methodology applied to

companies which are forecast to grow earnings over the medium to long term. Under normal circumstances, the Fund will

invest in companies with one or more of the following characteristics:

• An above average return on assets when compared to companies in the MSCI World Index

• Forecast to grow earnings over the medium to long-term

• A history of generating free cash flow

• Strong balance sheet

• Attractive valuation suggesting appreciation potential

The Fund will typically comprise fewer than 40 equities at any point in time, primarily in large and mid-sized companies

from a range of industry sectors. This relatively concentrated approach means that the position size of the average

holding will be greater than for a broadly diversified portfolio. This is to ensure that the return from investment

opportunities is maximised and not diluted away by an over-diversified portfolio. In seeking to meet its Investment

Objective, the Fund may, from time-to-time, hold substantial cash balances. Investment in emerging markets equities is

limited to no more than 20% of the Fund's net assets.

The Company may borrow up to 10% of its net assets but only for the purpose of the redemption of Shares.

Investment Restrictions

The assets of the Company must be invested in accordance with the restrictions on investments set out in the UCITS

Regulations and such additional investment restrictions, if any, as may be adopted from time to time by the Directors, such

as those described in the Investment Strategy of the Company above.

Connected Persons

A connected person means the management company or depositary to a UCITS; and the delegates or sub-delegates of

such a management company or depositary (excluding any non-group company sub-custodians appointed by a

depositary); and any associated or group company of such a management company, depositary, delegate or subdelegate.

The term “Connected Persons” was introduced to replace the term “Connected Parties” with the introduction of the Central

Bank UCITS regulations 2015. Any transaction carried out by a connected person with the Company must be carried out

as if negotiated at arm’s length. Transactions must be in the best interests of the unit holders. The Board of Directors are

satisfied that there are arrangements (evidenced by written procedures) in place, to ensure the obligations set out in the

Central Bank UCITS regulations 2015 are applied to all transactions with connected persons; and the Board is satisfied that

transactions entered into during the year complied with the obligations set out in the Central Bank UCITS regulations 2015.


Page 6 of 30

BACKGROUND INFORMATION (continued)

Board of Directors and Management Arrangements

The Directors listed on page 6 are responsible for overseeing the business affairs of the Company. The Directors have

delegated the management of the assets and investments of the Company to the Investment Manager. The Directors have

delegated the day-to-day administration of the Company's affairs, shareholder registration and transfer agency duties,

including the calculation of the Net Asset Value and the Net Asset Value per Share, to the Administrator. The Directors have

delegated the providing of custody and related services to collective investment schemes, to the Custodian.

The Investment Manager

The Company has appointed Ranmore Fund Management Limited (formerly BlueAlpha Investment Advisory Limited) as

the Investment Manager. Ranmore Fund Management Limited was formed in the United Kingdom on 18th January 2008.

It is authorised and regulated by the UK Financial Conduct Authority ("FCA").

The Investment Manager serves as Investment Manager to the Company, pursuant to the Investment Management

Agreement. As such, the Investment Manager is responsible for the day-to-day management of the Company’s assets.

Promoter

On 21st May 2014, Ranmore Fund Management Limited signed an agreement with Bateleur Capital Pty Ltd appointing

Bateleur Capital as the representative and host for the marketing of shares of the scheme in the Republic of South Africa

effective from the date of approval by the Financial Services Board of the change in Representative Office. The Promoter

is an authorised Financial Services Provider regulated by the Financial Services Board of South Africa.

The Administrator

The Company has appointed Apex Fund Services (Ireland) Limited to act as Administrator and Transfer Agent of the

Company, pursuant to the Administration Agreement, dated 29th September 2011, with responsibility for performing the

day-to-day administration of the Company and providing related fund accounting services (including the calculation of the

Net Asset Value of the Company and the Net Asset Value per Share). Apex Fund Services (Ireland) Limited was incorporated

in Ireland as a private limited company on 26th January 2007.

The Depositary

The Company has appointed BNP Paribas Securities Services Dublin Branch as custodian of its assets pursuant to the

Depositary Agreement, 22nd September 2016. The Depositary is a branch office of BNP Paribas Securities Services which is

incorporated in France as a Partnership Limited by Shares and is authorised by the ACP (Autorité de Contrôle Prudentiel)

and supervised by the AMF (Autorité des Marchés Financiers), whose head office is at 3 rue d’Antin, 75002 Paris, France. It

is 99.99% owned by BNP Paribas Group, one of Europe’s largest banks.

Company Secretary

The Company secretary throughout the financial year was Intertrust Management Ireland Limited.

Auditors

The auditors, Mazars, Chartered Accountants and Statutory Audit Firm, continue in office in accordance with Section

383(2) of the Companies Act 2014.

Directors

The Board who held office for the entire period from 1st July 2016 to 31st December 2016 are listed below:

Sean Philip Peche

Kevin Molony (Independent as defined by the Corporate Governance

Code)

John Skelly (Independent of Investment

Manager)


Page 7 of 30

Sean Philip Peche is not entitled to receive Director’s fees from the Company.

Sean Philip Peche has a direct interest in the Company worth $183,012 and an indirect interest worth $519,511 as at 31st

December 2016. None of the other directors held any shares of the Company as at 31st December 2016 or at any time

during the period.

Results and State of Affairs

The Statement of Financial Position as at 31st December 2016 and the results for the period are set out on pages 8 to 11.

Dividends

There have been no dividends declared during the period ended 31st December 2016.

Going Concern

The Directors believe that the Company has adequate resources to continue in operational existence for the foreseeable

future. For this reason, they have adopted the going concern basis in preparing the accounts.


Page 8 of 30

STATEMENT OF FINANCIAL POSITION

As at As at

31st December 2016 30th June 2016

Notes USD USD

Non-current assets

Financial assets at fair value through profit or loss 4 92,248,126 101,402,572

Current assets

Prepayments 6 40,600 36,556

Dividends receivable 85,477 73,161

Cash and cash equivalents 7 39,513,218 25,406,229

Amounts due from brokers - 628,827

Total assets 131,887,421 127,547,345

Current liabilities

Investment Management fees payable 10 94,689 97,167

Financial Intermediary fees payable (Advisor Class) 10 53,765 25,644

Administration fees payable 10 7,845 8,610

Custody fees payable 10 4,229 5,988

Audit fee payable 10 3,920 11,725

Directors fees payable 10 6,073

Legal fees payable 5,447 7,301

Other professional fees payable 15,815 12,555

Withholding tax payable 106,307 67,207

Redemptions payable 3,564,559 275,231

Total liabilities 3,856,576 517,501

Net assets attributable to redeemable participating shareholders 128,030,845 127,029,844

Total Equity and Liabilities 131,948,321 127,547,345

Net assets attributable to redeemable participating shareholders

128,030,845 127,029,844

Number of Shares Outstanding

USD Investor Class 8 343,491.15 330,080.72

USD Advisor Class 8 105,051.78 108,958.48

EUR Investor Class 8 92,281.95 92,281.95

GBP Investor Class 8 94,565.55 102,337.70

NAV per Share

USD Investor Class 8 $ 221.23 $ 220.64

USD Advisor Class 8 $ 117.71 $ 117.69

EUR Investor Class 8 € 181.51 € 171.52

GBP Investor Class 8 £ 188.72 £ 174.70

The Financial Statements on pages 8-25 were approved by the Board of Directors of the Company on28th February

2017.


Page 9 of 30

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Notes

For the period ended

1st July 2016 – 31st December 2016

For the year ended

30th June 2016

USD USD

Income

Dividend revenue 789,930 1,390,640

Other income 1,855 1,825

Net gain/(loss) on financial assets and financial

liabilities at fair value through profit or loss and

foreign exchange

5 671,432 (6,245,974)

Total investment income 1,463,217 (4,853,509)

Expenses

Investment Management fees 10 581,051 1,137,506

Financial Intermediary Fee (Advisor Class) 31,809 61,475

Administration fees 10 53,149 102,368

Depositary fees 10 28,777 49,170

Audit fee 10 8,911 13,065

Transaction costs 2.2(j) 80,123 420,656

Legal fee 10 16,934 51,382

Directors fees 3 18,062 39,190

Risk Management fees 10 5,076 11,873

FATCA fees 10 10,624 10,885

Secretarial fees 10 5,520 11,052

Tax Preparation fees 10 2,752 17,882

Oversight fees 10 14,684 29,420

Other professional fees 10 42,494 43,627

Total expenses 899,966 1,999,551

Income / (loss) on ordinary activities before taxation 563,251 (6,853,060)

Taxation

Withholding tax on dividends 11 (279,982) (333,111)

Increase / (decrease) in net assets from operations

attributable to redeemable participating

shareholders

283,269 (7,186,171)

Gains and losses arise solely from continuing operations. There were no gains or losses other than those dealt with in the

Statement of Profit or Loss and Other Comprehensive Income.

The Financial Statements on pages 8-25 were approved by the Board of Directors of the Company on xxxxxxx2017.


Page 10 of 30

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF

REDEEMABLE PARTICIPATING SHARES

For the year period


For the year ended

30th June 2016

USD USD

Net assets attributable to redeemable participating

shareholders at the start of the period/year 127,029,844 129,211,673

Issue of redeemable participating shares 12,369,737 32,403,450

Redemption of redeemable participating shares (11,652,005) (27,399,108)

Increase / (decrease) in net assets from operations

attributable to

redeemable participating shareholders

283,269 (7,186,171)


shareholders at the end of the period/year 128,030,845 127,029,844

The accompanying notes form an integral part of these financial statements.


Page 11 of 30

STATEMENT OF CASH FLOWS

For the period


For the year ended

30th June 2016

USD USD

Cash flows from operating activities

Increase / (decrease) in net assets attributable to

redeemable participating shareholders 283,269 (7,186,171)

Decrease in financial assets at cost 8,861,483 23,128,249

Change in unrealised movement on financial assets and

liabilities at fair value through profit or loss on

investments 292,963 (6,450,883)

Change in receivables 551,567 2,533,985

Change in payables 110,647 (1,522,452)

Net cash inflow from operating activities 10,099,929 10,502,728

Cash flows from financing activities

Proceeds from issue of redeemable participating shares 12,369,737 32,403,450

Payment on redemption of redeemable participating shares (8,362,677) (27,123,877)

Net cash inflow from financing activities 4,007,060 5,279,573

Net increase in cash and cash equivalents 14,106,989 15,782,301

Cash and cash equivalents at beginning of the reporting

period/year 25,406,229 9,623,928

Net cash and cash equivalents at the end of the reporting

period/year 39,513,218 25,406,229

The accompanying notes form an integral part of these financial statements.


Page 12 of 30

NOTES TO THE FINANCIAL STATEMENTS

1. Corporate Information

Ranmore Global Equity Fund PLC was originally incorporated in Jersey on 26th June 2008 and was registered in Ireland by

way of continuation, as an open-ended investment Company and authorised as a UCITS by the Central Bank pursuant to

the UCITS Regulations 2011 as amended. In accordance with the requirements of the Central Bank. Shares may be divided

into different Classes to accommodate different subscriptions and/or redemption charges and/or charges and/or dividend

and/or fee arrangements. Separate pools of assets will not be maintained for each Class.

Share Class Name Date Launched Initial Minimum Subscription

Ranmore Global Equity Fund PLC - USD Investor Class 8th October 2008 USD 100,000

Ranmore Global Equity Fund PLC - USD Advisor Class 26th January 2011 USD 25,000

Ranmore Global Equity Fund PLC - EUR Investor Class 30th June 2010 EUR equivalent of USD 100,000

Ranmore Global Equity Fund PLC - GBP Investor Class 30th June 2010 GBP equivalent of USD 100,000

Dealing

The day on which Shares may be subscribed or redeemed being the first Business Day following the relevant Valuation

Point or such other days as determined by the Directors from time to time provided that there shall always be at least one

such day per fortnight and Shareholders are notified in advance. Dealing currently takes place every Business Day.

Objective

The Company’s investment objective and strategy is described in the Background information on page 6. The Company

has no employees.

2. Accounting policies

2.1 Basis of preparation and statement of compliance

The financial statements have been prepared in accordance with International Financial Reporting Standards (''IFRS") as

adopted for use in the European Union and Irish Statute comprising of the Companies Act 2014 and all regulations to be

construed as one with those Acts, including the European Communities Undertaking for Collective Investments in

Transferrable Securities Regulations 2011 and 2015 as amended under historical cost convention as modified to include

financial assets at fair value through profit or loss. The preparation of financial statements in conformity with IFRS requires

the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires

the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of

revenues and expenses during the reporting year. Although these estimates are based on management's best knowledge

of current events and actions, actual results may ultimately differ from those estimates. These financial statements comply

with IAS 1 - 'Presentation of Financial Statements'. The information required by IAS 1, to be included in the Statement of

Changes in Equity, is in the opinion of the Directors included in the Statement of Changes in Net Assets Attributable to

Redeemable Participating Shareholders.

2.2 Summary of significant accounting policies

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It

also requires the Directors to exercise their judgement in the process of applying the Company’s accounting policies. The

Directors believe that the estimates utilised in preparing the financial statements are reasonable and prudent. Actual

results could differ from these estimates.

The financial statements include the performance and position of underlying Share Classes. The financial statements

reflect the aggregated figures of the Share Classes in issue at the end of the reporting period.

The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant

to the financial statements are disclosed in the accounting policies overleaf.


Page 13 of 30

NOTES TO THE FINANCIAL STATEMENTS (continued)

2.2 Summary of significant accounting policies (continued)

(a) Financial instruments at fair value through profit or loss

(i) Classification

In accordance with IAS 39, the Company has designated its investments in equity securities as financial assets at fair value

through profit or loss.

Financial assets at fair value through profit or loss

The Company has designated all of their investments upon initial recognition as “financial assets at fair value through profit

or loss”. These include financial assets that are held for trading purposes and which may be sold and represent a group of

financial assets which is managed and its performance is evaluated on a fair value basis, in accordance with the risk

management and investment strategies of the Company, as set out in the Company’s Prospectus.

(ii) Recognition

All “regular way” purchases and sales of financial instruments are recognised using trade date accounting, the day that the

Company commits to purchase or sell the asset. From this date any gains and losses arising from changes in fair value of

the financial assets or financial liabilities are recorded. Regular way purchases, or sales, are purchases and sales of financial

assets that require delivery of the asset within a time frame generally established by regulation or convention in the market

place.

(iii) Measurement

Financial assets are measured at fair value through profit or loss.

(iv) Derecognition

A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised

where:

- The rights to receive cash flows from the asset have expired; or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the

received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and

- Either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither

transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

The Company derecognises a financial liability when the obligation under the liability is discharged, cancelled or expires.

(v) Fair value measurement principles

Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the

principal (or most advantageous) market at the measurement date under current market conditions regardless of whether

that price is directly observable or estimated using another valuation technique. If an asset or liability measured at fair

value has a bid and an ask price, the price within the bid-ask spread that is most representative of fair value in the

circumstances shall be used to measure fair value regardless of where the input is categorized within the fair value

hierarchy. The use of bid prices for asset positions and ask prices for liability positions is permitted, but not required. The

bid-ask spread has been considered and it is not material to the accounts.

The fair value of financial instruments is based on their quoted closing market prices at the Statement of Financial Position

date without any deduction for estimated future selling costs.

Investments measured and reported at fair value are classified and disclosed in one of the following fair value hierarchy

levels based on the significance of the inputs used in measuring its fair value.


Page 14 of 30



Level 1 inputs are unadjusted quoted prices in active markets for identical assets that the reporting entity has the ability

to access at the valuation date. An active market for the asset is a market in which transactions for the asset or liability

occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 inputs are inputs other than quoted prices in active markets included within level 1 that are observable for the

asset, either directly or indirectly.

Level 3 inputs are inputs that are not based on observable data and the unobservable inputs have a significant effect on

the instrument’s valuation.

An investment is always categorised as level 1, 2 or 3 in its entirety.

(vi) Redeemable participating shares

All Shares issued by the Company provide the investors with the right to require redemption for cash at the value

proportionate to the investor’s share in the Company’s net assets at the redemption date.

(vii) Specific Instruments

(a) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position if, and only if,

there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or

realise the asset and settle the liability simultaneously.

(b) Foreign currency translations

The functional currency of the Company is the USD, (as the Directors have determined that this reflects the Company’s

primary economic environment). The presentation currency of the Company is also USD. Transactions in foreign currencies

are translated at the foreign currency exchange rate ruling at the date of the transaction. Monetary assets and liabilities

denominated in foreign currencies are translated to USD at the foreign currency closing exchange rate ruling at the

Statement of Financial Position date.

Foreign currency exchange differences arising on translation and realised gains and losses on disposals or settlements of

monetary assets and liabilities are recognised in the Statement of Profit or Loss and Other Comprehensive Income. Non-

monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to USD at

the foreign currency exchange rates ruling at the dates that the values were determined. Foreign currency exchange

differences relating to investments at fair value through profit or loss and derivative financial instruments are included in

gains and losses on investments. All other foreign currency exchange differences relating to monetary items, including

cash are presented in the Statement of Profit or Loss and Other Comprehensive Income. Foreign currency monetary assets

and liabilities, including financial assets and financial liabilities at fair value through profit or loss, are translated into the

functional currency of the Company at the closing exchange rate at the end of the reporting period.

(c) Gains and losses

Any foreign exchange losses on financial assets and financial liabilities at fair value through profit or loss are included in

the Statement of Profit or Loss and Other Comprehensive Income as part of the ‘Net gain on financial assets at fair value

through profit or loss and foreign exchange’. This item also includes realised and unrealised gains and losses on financial

assets and liabilities designated upon initial recognition as ‘held at fair value through profit or loss’ and excludes interest

and dividend income and expense.

Realised gains and losses arising on the disposal of financial instruments classified as ‘at fair value through profit or loss’

are calculated by reference to the proceeds received on disposal and the actual cost attributable to those instruments, and

are recognised in the Statement of Profit or Loss and Other Comprehensive Income. Unrealised gains and losses comprise

changes in the fair value of financial instruments for the year and from the reversal of prior period’s unrealised gains and

losses for financial instruments which were realised in the reporting period.


Page 15 of 30



(d) Due to and due from brokers

Amounts due to brokers are payables for securities purchased (in a regular way transaction) that have been contracted for

but not yet delivered at the end of the reporting period. They are recognised and measured as other financial liabilities

other than those classified as fair value through profit or loss.

Amounts due from brokers are receivables for securities sold (in a regular way transaction) that have been contracted for

but not yet delivered at the end of the reporting period. They are recognised and measured as loans and receivables.

(e) Distribution policy of the Company

The Directors anticipate the predominant source of return in respect of each of the USD Investor Class, the USD Advisor

Class, the GBP Investor Class and the EUR Investor class to be through capital growth and do not expect investment income

(net of expenses) to be significant. As such the Directors do not intend to declare any dividends.

(f) Cash and cash equivalents

Cash comprises cash at bank. Cash equivalents are short term, highly liquid investments that are readily convertible to

known amounts of cash and which are subject to insignificant changes in value. Cash held for the Company is held by BNP

Paribas Securities Services as Depositary and by Danske Bank, in accordance with the UCITS Regulations that no more than

20% of net assets can be invested in cash deposits with any one credit institution.

(g) Interest revenue and expense

Interest income and interest expenses are accounted for on an accruals basis and recognised in the Statement of Profit or

Loss and Other Comprehensive Income.

(h) Dividend revenue

Dividends on quoted equity securities are taken into account on the ex-dividend date. The ex-dividend date is the date that

the market price of the security is reduced to reflect the amount of dividend (that is, securities traded on that date do not

include rights to the upcoming dividend payment). Where no ex-dividend date is quoted, they are brought into account

when the Company’s right to receive payment is established. Income is shown in the Statement of Profit or Loss and Other

Comprehensive Income gross of any imputed tax credits and presented gross of any withholding taxes deducted at source

which is disclosed separately in the Statement of Profit or Loss and Other Comprehensive Income.

(i) Fees

All fees are recognised on an accruals basis.

(j) Transaction Costs

Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial

asset. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of a

financial instrument.


Page 16 of 30


3. Directors’ and Auditors’ Remuneration

Directors’ remuneration in respect of the period 1st July 2016 and 31st December 2016, and the financial year ended 30th

June 2016 is as follows:

Directors’ remuneration


1st July 2016 to 31st December 2016

USD

For the year ended

30th June 2016

USD

- Aggregate emoluments paid to or receivable by

directors in respect of qualifying services 18,062 39,190

- Aggregate amount of money or value of other

assets, including shares but excluding share

options, paid to or receivable by the directors

under long term incentive schemes in respect of

qualifying services

- -

Auditors’ remuneration for work carried out for the Company in respect of the period 1st July 2016 and 31st December

2016, and the financial year ended 30th June 2016 is as follows:

Auditors’ remuneration



USD

For the year ended

30th June 2016

USD

- Audit of Company accounts 8,911 13,065

- Other assurance services - -

- Tax advisory services 2,752 17,882

- Other non-audit services - -

4. Financial assets at fair value through profit or loss

Financial assets designated at fair value through

profit or loss



USD

As at 30th June 2016

USD

Listed equity securities at trading valuation 92,248,126 101,402,572

Financial assets at fair value through profit or

loss 92,248,126 101,402,572

5. Net gains and losses on financial assets designated at fair value through

profit or loss and foreign exchange

Profit or Loss



USD

For the year ended

30th June 2016

USD

Listed and unlisted equity securities

- Realised gain / (loss) on equities 1,367,450 (14,404,349)

- Realised loss on options - (131,000)

- Unrealised (loss) / gain on equities (292,963) 6,599,043

- Unrealised loss on options - (48,800)

Net foreign exchange (losses) / gains on realised

and unrealized equities (403,055) 1,739,132

Net gain / (loss) on financial assets at fair value

through profit or loss and foreign exchange 671,432 (6,245,974)


Page 17 of 30

USD Advisor Class

Shares in issue at the beginning of the year 108,958.4791 117,524.6601

Shares issued during the year 1,865.5196 12,678.4726

Shares redeemed during the year (5,772.2184) (21,244.6536)

Total Shares in issue at the end of the year 105,051.7803 108,958.4791

EUR Investor Class


Shares redeemed during the year - (3,500.0000)


GBP Investor Class





NOTES TO THE FINANCIAL

STATEMENTS (continued)

6. Prepayments

As at 31st December 2016 As at 30th June 2016

USD USD

Directors’ fees 9,996 4,115

License fee 14,041 11,091

Directors' insurance 4,305 1,279

Secretarial fees 28 5,613

Oversight & Monitoring services 7,076 7,467

MLRO fees 3,227 3,415

Other 1,927 3,576

Prepayments 40,600 36,556

7. Cash and cash equivalents

As at 31st December 2016

As at 30th June 2016

USD USD

Cash at bank BNP Paribas Securities Services 25,461,326 11,296,033

Cash at bank Danske Bank 14,051,892 14,110,196

8. Shares in issue

8. Shares in issue

As at 31st December 2016 As at 30th June 2016

Authorised share capital Number of shares Number of shares

Subscriber’s shares of USD1.00 each 2 2

Shares of no par value 500,000,000 500,000,000

Redeemable Participating Shares

USD Investor Class Number of shares Number of shares






Page 18 of 30


8. Shares in Issue (continued)

Subscriber Shares

On a poll each holder of Subscriber Shares is entitled to one vote irrespective of the number of shares held by them and

the Subscriber Shares do not carry any right to dividends. On a winding up, the Subscriber Shares rank only for a return of

paid up capital after the return of amounts paid up on the Shares.

Shares

Each holder of redeemable participating Shares present in person or by proxy at a general meeting of the Company is

entitled, on a poll, to one vote for each participating share held. On a winding up each participating share carries a

preferential right to a return out of the Company of capital paid up and a right to share in any surplus assets of the relevant

Company after the return of capital paid up on the Subscriber Shares.

9. Net Asset Value per redeemable participating share

The Net Asset Value per redeemable participating share is determined as at each Dealing Day by dividing the Net Asset

Value of the Company by the number of Shares in issue. The Net Asset Value per participating share is shown on page 3.

In accordance with the provisions of the Company’s offering document the prices for buying and selling Shares in the

Company are calculated by reference to the Net Asset Value per participating share. The issue price will be calculated by

reference to the Net Asset Value of each participating share on the relevant dealing day and rounding the resulting sum

upwards or downwards to the nearest whole cent. The redemption price payable on redemption of Shares will be

calculated by reference to the Net Asset Value of each participating share on the relevant dealing day and rounding the

resulting sum upwards or downwards to the nearest whole cent.

10. Related Party and Fee Disclosures

A Director or the Investment Manager may be a party to, or otherwise interested in, any transaction or arrangement in

which the Company is interested. There is no prohibition on the Directors or any person connected with them, holding

Shares in the Company. The nature of any such interests/transactions will be declared by the relevant Director to the Board

at the next Board meeting.

Sean Peche is a director of both the Company and the Investment Manager. He is not entitled to receive director’s fees

from the Company. Sean Peche has a direct interest in the Company worth $183,012 (30th June 2016: $182,526) and an

indirect interest worth $519,511 (30th June 2016: $518,129) as at 31st December 2016.

John Skelly is a Director of the Company and works for Carne Global Financial Services Limited which provides oversight,

risk support and MLRO services to the Company. Carne fees expensed during the period ended 31st December 2016 was

€21,087 (30th June 2016: €36,553) and as at 31st December 2016 Carne fees prepaid was €12,092 (30th June 2016: €12,113).

The Secretarial fees expensed during the period ended 31st December 2016 were €5,028 (30th June: €). Legal fees for the

period were $16,934 (30th June 2016: $51,382) and as at 31st December 2016 Legal fees payable were $5,447 (30th June

2016: $7,301)

The Directors fees expensed for the period ended 31st December 2016 were $18,062 (30th June 2016: $39,190) and as at

31st December 2016 Directors fees prepaid were €9,501 (30th June 2016 €1,763 payable)

The total fees payable at the end of the reporting period are shown in the Statement of Financial Position and the total

fees for the year are shown in the Statement of Profit or Loss and Other Comprehensive Income.


Page 19 of 30


Related Party and Fee Disclosures (continued)

Investment Manager – Ranmore Fund Management Limited

The fees that are payable to the Investment Manager are stipulated in the prospectus and the Investment Management

Agreement dated 29th September 2011. In terms of these documents, Ranmore Fund Management Limited is entitled to

the following fees:

Investment Management fee

The Investment Manager will be entitled to receive a fee payable out of the Company's assets equivalent to 0.90% per

annum of the Net Asset Value thereof. Investment Management fees will be accrued on a daily basis and paid on a monthly

basis. The Investment Manager fee expensed for the period 1st July 2016 to 31st December 2016 was $581,051 (30th June

2016: $1,137,506) and as at 31st December 2016 the Investment Management fee payable was $94,689 (30th June 2016:

$97,167).

Administrator fee – Apex Fund Services (Ireland) Limited

Under the terms of the Administration Agreement dated 1stJanuary 2014, Apex Fund Services (Ireland) Limited is entitled

to the following fees:

The Administrator is entitled to receive a fee payable out of the assets of the Company currently at the rate of 0.08% per

annum up to USD $200 million and 0.04% per annum on assets exceeding USD $200 million of the adjusted Net Asset

Value of the Company (payable before deduction of the management fees and the fees payable to the Depositary). This is

subject to a minimum fee of $7,260 per month. The Company may also reimburse the Administrator for any out of pocket

costs and expenses properly incurred by the Administrator in the discharge of its functions in connection with the

Company. The fees of the Administrator that are based on the Net Asset Value are accrued daily and paid monthly in

arrears. The Administrator fee expense for the period 1st July 2016 to 31st December 2016 was $53,149 (30th June 2016:

$102,368) and as at 31st December 2016 the administration fee payable was $7,845 (30th June 2016: $8,610).

Depositary fee – BNP Paribas Securities Services, Dublin Branch

Under the terms of the Depositary Agreement dated 29th September 2011, BNP Paribas Securities Services, Dublin Branch

is entitled to the following fees:

The Depositary is entitled to receive a fee payable out of the net assets of the Company for Regulatory oversight services.

The Depositary fee is calculated and accrued on each dealing day, currently at an annual rate which shall not exceed 0.03%

per annum of the Net Asset Value of the Company subject to a minimum annual fee of €30,000 (plus VAT, if any) thereon.

The Depositary’s fees comprise two further components, a safekeeping fee (a basis point charge on the Company’s Assets)

and a transaction based fee (fixed Euro charge per transactions occurring in the Company). The Depositary fee accrued for

the period ended 31st December 2016 was $28,777 (30th June 2016: $49,170) and as at 31st December 2016 the Depositary

fee payable was $4,229 (30th June 2016: $5,988).

Audit fee – Mazars Ireland (Mazars Chartered Accountants and Registered Auditors)

The audit fee accrued for the period 1st July 2016 to 31st December 2016 was $8,911 (30th June 2016: $13,065) and at 31st

December 2016 the audit fee payable was $3,920 (30th June 2016: $11,725).

Other Professional Fees

The other professional fees of $42,494 in the Statement of Comprehensive Income include the following expenses:

- Bank Charges $4,779 (BNP Paribas)

- License & Regulatory Filing Fees $5,014 (MSCI Inc)

- Interest Expense $5,180 (BNP Paribas)

- Tax Advice $16,000 (WeiserMazars)


Page 20 of 30


11. Witholding taxes

In some jurisdictions, investment income and capital gains are subject to withholding tax deducted at the source of the

income. The Company shows the Dividend revenue gross of withholding taxes on the Statement of Profit or Loss and

Other Comprehensive Income. For the purpose of the Statement of Cash Flows, Net Investment Income is shown net of

withholding taxes. The withholding tax expense for the period from 1st July 2016 to 31st December 2016 was $279,982

(30th June 2016: $333,111).

12. Taxation

As the Company qualifies under Section 739B of the Irish Taxes Consolidation Act, 1997 as an investment undertaking, the

Company is not liable to income tax, capital gains tax or corporation tax on its income or gains, other than on the

occurrence of a chargeable event.

A chargeable event includes any distribution to shareholders or any redemption or transfer of shares, or the ending of a

‘relevant period’. A relevant period is an eight year period beginning with the acquisition of shares by the shareholder and

each subsequent period of eight years beginning immediately after the preceding relevant period.

A chargeable event does not include:

• Any transactions in relation to shares held in a recognised clearing system as designated by order of the

Revenue Commissioners of Ireland; or

• An exchange of shares representing one claim for shares in another class of the Company; or

• Any exchange of shares arising on a qualifying amalgamation or reconstruction of the Company with another

Company or Company.

A chargeable event will not occur in respect of shareholders who are neither resident nor ordinarily resident in Ireland and

who have provided the Company with a relevant declaration to that effect.

In the absence of an appropriate declaration, the Company will be liable to Irish tax on the occurrence of a chargeable

event. There were no chargeable events during the year under review.

Capital gains, dividends and interest may be subject to withholding taxes imposed by the country of origin and such taxes

may not be recoverable by the Company or its shareholders.

13. Commitments and contingencies

There were no commitments and contingencies at the end of the reporting year other than those disclosed in the financial

statements.

14. Significant Portfolio Movements

A schedule of significant portfolio movements is included at the end of the interim report. A full listing of changes in the

composition of the portfolio for the period is available to shareholders at no cost upon request from the Administrator.


Page 21 of 30


15. Financial risk management

The Company’s investment activities expose it to the various types of risk which are associated with the financial

instruments and markets in which it invests. The following information is not intended to be a comprehensive summary

of all risks and investors should refer to the Prospectus for a more detailed discussion of the risks inherent in investing in

the Company.

The primary responsibility of reviewing and monitoring of risk in the Company rests with the Board; however as part of its

strategy the Board has contractually delegated powers and responsibility for the day to day investment management of

the assets of the Company to the Investment Manager.

The Company is exposed to market risk, credit risk and liquidity risk and other financial risks arising from the financial

investments it holds. Market risk includes price risk, interest rate risk and currency risk.

(a) Counterparty / Credit Risk

The Company is exposed to a credit risk on parties with whom it trades and will also bear the risk of settlement default.

The Company minimises concentrations of credit risk by undertaking transactions with a large number of customers and

counterparties on recognised and reputable exchanges. As a result, they are not subject to significant amounts of credit

risk.

Credit risk arising on transactions with BNP Paribas Securities relates to transactions awaiting settlement. The Investment

Manager monitors the Company's risk by establishing relationships with high quality financial institutions and thereafter

monitoring the credit worthiness of the counterparty. The Investment Manager would take appropriate action should the

credit quality of the financial institution deteriorate significantly.

Al! of the Company's securities are held by BNP Paribas network (the 'Depositary"). The Company's non-cash assets are

maintained by the Depositary in segregated accounts so that in the event of the Depositary's insolvency or bankruptcy the

Company's non-cash assets are segregated and protected and this further reduces counterparty risk. While cash held by

the Depositary or any depository will be identifiable as belonging to the Company, the Company will be exposed to the

credit risk of the Depositary or any depository where cash is deposited. The Depositary is subject to stringent criteria - one

of these being a Long-term Moody's credit rating of "A1" except in markets where an A1 rating is not available. In the event

of the insolvency of the Custodian or any Depository. the Company will be treated as a general creditor of the Depositary

in relation to cash holdings of the Company.

As at the 31st December 2016, the ultimate parent Company of the Depositary, BNP Paribas had a Standard and Poor’s

credit rating of A.

The extent of the Company’s exposure to credit risk in respect of the financial statements approximates the carrying value

as recorded in the Company’s Statement of Financial Position. There are no past due or impaired assets as at 31st December

2016.


Page 22 of 30


15. Financial risk management (continued)

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial

liabilities.

The Company’s assets comprise mainly realisable securities which can be readily sold. The main liability of the Company

is the redemption of any shares that investors wish to sell. Shareholders have the right to require the Company to

redeem their shares in the Company on any business day subject to any restrictions set out in the Prospectus.

The following table details the Company’s liquidity analysis for its financial liabilities.

Maturity Analysis as at 31st December 2016 Less than 1 to 2 2 to 3 > 3

1 month months months months Total

Financial liabilities measured at amortised cost USD USD USD USD USD

Management fees payable 94,692 - - - 94,692

Financial Intermediary fees payable (Advisor Class) - - 53,762 53,762

Company administration fees payable 7,845 - - - 7,845

Custody fees payable - - - 4,229 4,229

Audit fee payable - - - 3,920 3,920

Legal fees payable - - - 5,447 5,447

Other Professional Services fees payable - - - 15,815 15,815

Withholding tax payable - - - 167,207 167,207

Redemptions payable 3,564,559 - - - 3,564,559 3,720,858 - - 196,618 3,917,476

Net assets attributable to participating shareholders 128,030,845 - - - 128,030,845

Total 131,751,703 - - 196,618 131,948,321

Maturity Analysis as at 30th June 2016 Less than 1 to 2 2 to 3 > 3

1 month months months months Total

Financial liabilities measured at amortised cost USD USD USD USD USD

Management fees payable 122,811 - - - 122,811

Company administration fees payable 8,610 - - - 8,610

Custody fees payable - - - 5,988 5,988

Audit fee payable - - - 11,725 11,725

Directors fee payable - - - 6,073 6,073

Legal fees payable - - - 7,301 7,301

Other Professional Services fees payable - - - 12,555 12,555

Withholding tax payable - - - 67,207 67,207

Redemptions payable 275,231 - - - 275,231 406,652 - - 110,849 517,501

Net assets attributable to participating shareholders 127,029,844 - - - 127,029,844

Total 127,436,496 - - 110,849 127,547,345

(c) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in

market prices (other than those arising from interest rate risk or currency risk) whether those changes are caused by


Page 23 of 30

factors specific to the individual financial instrument or it’s issuer, or factors affecting similar financial instruments traded

in the market. The Company is exposed to market price risk arising from its investments in securities.

The Company uses a methodology known as the “Commitment Approach” to measure the global exposure of the Company

and manage the potential loss to the Company due to market risk. The Commitment Approach is a methodology that

aggregates the underlying market or notional values of derivatives to determine the exposure of the Company to

derivatives. In accordance with the UCITS Regulations, global exposure for the Company to derivatives must not exceed

100% of the Company’s NAV. The Board manages the market price risk inherent in the Company’s portfolio by ensuring

full and timely access to relevant information from the Investment Manager. The Board seeks to ensure that an appropriate

proportion of the Company’s portfolio is invested in cash and readily realisable securities, which are sufficient to meet any

Company commitments that may arise.

The portfolio is managed with an awareness of the effects of adverse price movements and the Investment Manager

monitors on a daily basis the overall market positions. Major market exposures are aggregated in order to ascertain the

key market risk exposures.

(d) Currency risk

Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes

in foreign exchange rates. The Company’s functional and presentational currency is United States Dollar, but the Company

holds financial assets and financial liabilities in other currencies which can be significantly affected by currency translation

movements. The Company does not intend to hedge against foreign currency movements inherent in individual

investments.

(d) Currency risk

Assets Liabilities Net exposure

Currency as at 31st December 2016 USD USD USD

Euro 1,078,208 - 1,078,208

Pound Sterling 8,606,378 - 8,606,378

Japanese Yen 52,818 - 52,818

Hong Kong Dollar 3,042 - 3,042

South African Rand 38,540 - 38,540

Swiss Franc 106,256 - 106,256

Total 9,885,242 - 9,885,242

Assets Liabilities Net exposure

Currency as at 30th June 2016 USD USD USD

Euro 6,471,318 - 6,471,318

Pound Sterling 1,119,184 - 1,119,184

Japanese Yen 59,924 - 59,924

Hong Kong Dollar 40,106 - 40,106

South African Rand 26,582 - 26,582

Total 7,717,114 - 7,717,114

If the value of the United States Dollar had strengthened by 10% against all of the currencies, with all other variables held

constant at the reporting date, the net assets attributable to participating shareholders and the profit for the period

would have decreased by $988,524 (30th June 2016: $771,711). A decrease of 10% would have an equal but opposite

effect. The calculations are based on the valuation of investments and cash balances as at the end of the reporting

period and are not representative of the period as a whole.


Page 24 of 30


15. Financial risk management (continued)

(e) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes

in prevailing interest rates. The Company invests in equities which are non interest bearing. Any excess cash and cash

equivalents are invested at short term market interest rates. As a result, these investments are not subject to significant

amounts of risk due to fluctuations in the prevailing levels of market interest rates. As at 31st December 2016 the Company

does not hold any interest bearing securities other than cash balances.

(f) Financial Derivatives, Techniques and Instruments Risk

The Fund will limit the use of financial derivative instruments to liquid exchange traded options for efficient portfolio

management purposes, being where the Investment Manager considers the use of such techniques and instruments I is

economically appropriate in order to seek to reduce risk and costs, taking into account the risk profile of the Fund and the

general provisions of the UCITS Regulations. Derivatives will not be used for gearing, leveraging or margining. The volumes

and prices of standardised exchange traded options are transparent and they are quoted on public trading data and

information systems such as Bloomberg. The Fund’s use of such financial derivative instruments shall be subject to the

conditions and within the limits from time to time laid down by the Central Bank. The Investment Manager employs a risk

management process which enables it to accurately measure, monitor and manage the various risks associated with such

financial derivative instruments.

As at 31st December 2016 the Company did not hold financial derivative instruments. During the period ended 31st

December 2016 no put options expired (during the year ended 30th June 2016, a put option expired, resulting in a loss of

$131,000).

16. Fair Value Measurement

The Company’s accounting policy on fair value measurements is discussed in note 2.2 on pages 13.

The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in

making the measurements:

Each investment which is quoted, listed or traded on or under the rules of any Recognised Market shall be valued by reference

to the last traded price on the relevant Recognised Market at the relevant Valuation Point. If the investment is normally quoted,

listed or traded on or under the rules of more than one Recognised Market, the relevant Recognised Market shall be that

which the Directors or the Administrator as their delegate determine provides the fairest criterion of value for the investment.

If prices for an investment quoted, listed or traded on the relevant Recognised Market are not available at the relevant time

or are unrepresentative in the opinion of the Directors or the investment Manager as their delegate, such investment shall be

valued at such value as shall be certified with care and good faith as the probable realisation value of the investment by a

competent professional person, body, firm or corporation (appointed for such purpose by the Directors in consultation with

Investment Manager and approved for the purpose by the Depositary) or by such other means as the Directors (in

consultation with Investment Manager and the Administrator and approved by the Depositary) consider in the circumstances

to be the probable realisation value of the investment estimated with care and in good faith. None of the Directors, the

Investment Manager, or the Administrator shall be under any liability if a price reasonably believed by them to be the last

traded price for the time being, may be found not to be such.

The table below analyses financial instruments measured at fair value at the end of the period/year by the level in the fair

value hierarchy into which the fair value measurement is categorised. A reconciliation of the movement of the financial assets

can be found on page 10.


Page 25 of 30


16. Fair Value Measurement (continued)

As at 31st December 2016 Level 1 Level 2 Level 3 Total USD USD USD USD


- Investments in listed equity securities and options 92,248,126 - - 92,248,126

As at 30th June 2016 Level 1 Level 2 Level 3 Total USD USD USD USD


- Investments in listed equity securities and options 101,402,572 - - 101,402,572

The Company assessed that cash, dividends receivable, prepayments, receivables, payables and other current liabilities

approximate their carrying amounts largely due to the short-term maturities of these instruments. These are classified in

Level 1 of the fair value hierarchy.

17. Efficient Portfolio Management

The Company will limit the use of financial derivative instruments to liquid exchange traded put options for efficient

portfolio management purposes. Efficient portfolio management transactions relating to the assets of the Company may

be entered into with one of the following aims: hedging, reducing risk or costs, or increasing capital or income returns.

18. Soft commissions

The Investment Manager may effect transactions by or through the agency of another person with whom the Investment

Manager has an arrangement under which that party will from time to time provide to or procure for the Investment

Manager’s goods, services or other benefits, such as research and advisory services, computer hardware associated with

specialised software or research services and performance measures, etc., the nature of which is such that their provision

benefits the Company as a whole and we believe contributes to an improvement in the Company’s performance and that

of the Investment Manager in providing investment services to the Company and for which no direct payment is made but

instead the Investment Manager undertakes to place business with the party.

The Investment Manager has participated in a soft commission arrangement as set out above for the period ended 31st

December 2016. Such soft commissions were used to fund the Investment Manager's Bloomberg terminals and were

generated as a result of placing equity trades on behalf of Ranmore Global Equity Fund pie through Bloomberg Tradebook.

Bloomberg terminals are the primary equity research tool used by the Investment Manager and are therefore considered

by the Investment Manager to be integral to the services provided to the Fund. The Investment Manager enters orders via

the broker that is deemed to offer the best order execution for each trade. For the period ended 31st December 2016, 20%

of broker commission fees were paid to Bloomberg as a result of trades placed through Bloomberg Tradebook. The

remaining 80% of broker commissions were paid to other brokers.


Page 26 of 30


19. Exchange Rates

The exchange rates used for 31st December 2016 and 30th June 2016 are detailed below:

Currency 31st December 2016 30th June 2016

Euro 1.0520 1.1103

Pound Sterling 1.2357 1.3313

Japanese Yen 0.008547 0.009692

Canadian Dollar 0.7439 0.7714

Australian Dollar 0.7059 0.7647

Hong Kong Dollar 0.1289 0.1289

South African Rand 0.0729 0.0678

Swiss Franc 0.9804 -

20. Comparative table

31st December 2016 30th June 2016 30th June 2015


shareholders:

USD Investor Class $ 75,990,926 $72,829,916 $74,319,584

USD Advisor Class $ 12,365,614 $12,823,464 $14,714,828

EUR Investor Class € 16,750,207 €15,828,481 €17,321,744

GBP Investor Class £ 17,846,638 £17,878,860 £13,281,785

Net assets value per unit:

USD Investor Class $ 221.23 $220.64 $233.55

USD Advisor Class $ 117.71 $117.69 $125.20

EUR Investor Class € 181.51 €171.52 €180.84

GBP Investor Class £ 188.72 £174.70 £156.67

21. Significant events during the period

On 31st December, Timothy Allsop and Kevin Williams resigned from their roles as co-portfolio managers of Ranmore

Global Equity Fund plc at the investment manager, effective 1st January, 2017. Sean Peche continues as portfolio manager

of the Company, a role he has undertaken since its launch.

During the period the prospectus was also updated.

22. Events after the reporting period

With effect from 1 March 2017, Bateleur Capital (Pty) Ltd will no longer be the Company’s Promoter, to be replaced by

Ranmore Fund Management Ltd. Ranmore Fund Management Ltd undertakes that in the event that the capital of the

Company falls below €300,000, it will subscribe for shares to bring the capital up to at least €300,000 (other than in the

case of the termination of the Fund).

In connection with the departure of Timothy Allsop and Kevin Williams, personal assets and assets under their control

totalling approximately $47m were redeemed over January and February. It is not anticipated that any further material

redemptions will occur as a result of Tim and Kevin's departure.

23. Approval of Financial Statements

The Financial Statements were approved by the Board of Directors on 28th February 2017.


Page 27 of 30

PORTFOLIO STATEMENT AS AT 31st DECEMBER 2016

NAME POSITION MARKET VALUE

(USD)

% OF NAV

NORTH AMERICA - Equities 56.6

Alphabet Inc - Cl C 14,700 11,345,754 8.9

Gilead Sciences Inc 113,000 8,091,930 6.3

Johnson & Johnson 40,000 4,608,400 3.6

Becton Dickinson & Co 25,200 4,171,860 3.3

Verizon Communications Inc 77,000 4,110,260 3.2

Netease Inc 18,200 3,919,188 3.1

Amgen Inc 26,000 3,801,460 3.0

Foot Locker, Inc. CMN 52,000 3,686,280 2.9

Comcast Corp-Class A 52,000 3,590,600 2.8

Altria Group Inc (US) 51,000 3,448,620 2.7

Paypal Holdings Inc 82,000 3,236,540 2.5

Laboratory Corp Of America Holdings 22,000 2,824,360 2.2

Cisco Systems Inc 88,000 2,659,360 2.1

Activision Blizzard Inc 71,000 2,563,810 2.0

Philip Morris International 28,000 2,561,721 2.0

Walt Disney Co 21,000 2,188,620 1.7

CVS Health Corp 22,000 1,736,020 1.4

Carnival Corp 28,000 1,457,680 1.1

Amazon.Com Inc 1,700 1,274,779 1.0

Net 1 Ueps Technologies Inc 93,000 1,067,640 0.8

EUROPE - Equities 4.5

Henkel AG & CO KGAA 42,000 4,373,332 3.4

Nestle Sa-Reg 19,000 1,360,735 1.1

GREAT BRITAIN - Equities 2.1

British American Tobacco Plc 48,000 2,741,178 2.1

AFRICA - Equities 3.7

Naspers Ltd-N Shs 32,000 4,696,764 3.7

ASIA – Equities 5.3

Tencent Holdings Limited 275,200 6,731,235 5.3

TOTAL EQUITY 92,248,126 72.2

Net current assets 35,782,719 27.8

TTOTAL 128,030,845 100

All securities are transferable securities admitted to an official stock exchange listing.

ANALYSIS OF PORTFOLIO

Transferable securities admitted to official stock exchange listing 72%

Net Current Assets 28%

Total Assets 100%


Page 28 of 30

SIGNIFICANT PORTFOLIO MOVEMENTS

List of top 20 Buys and Sells during the period 1st July 2016 to 31st December 2016 (unaudited)

MAJOR PURCHASES USD MAJOR SALES USD

Activision Blizzard Inc 3,834,627 Walt Disney Co (4,812,312)

Philip Morris International 2,710,709 Dollar General Corp (3,338,681)

Cvs Health Corp 2,047,577 Paypal Holdings Inc (2,848,634)

Comcast Corp-Class A 2,022,341 Naspers Ltd-N SHS (2,699,685)

Naspers Ltd-N Shs 2,017,425 Tencent Holdings Limited (2,689,549)

Altria Group Inc (US) 1,334,620 Cisco Systems Inc (2,591,455)

Henkel AG & CO KGAA 1,307,067 Carnival Corp (2,021,913)

Nestle Sa-Reg 1,292,840 Mylan Laboratories Inc (1,923,544)

Johnson & Johnson 1,275,602 First Solar Inc (1,887,158)

Amazon.Com Inc 1,267,832 Twitter Inc (1,578,560)

Net 1 Ueps Technologies Inc 971,096 Priceline.Com Inc (1,472,360)

Alibaba Group Holding-Sp Adr 865,355 Activision Blizzard Inc (1,309,892)

Becton Dickinson & Co 697,620 Ford Motor Co (1,272,190)

Laboratory Corp Of America Holdings 695,317 Netease Inc (1,266,855)

British American Tobacco Plc 691,504 Laboratory Corp Of America Holdings (1,220,663)

Walt Disney Co 680,429 Alibaba Group Holding-Sp Adr (918,023)

Alphabet Inc - Cl C 623,650 Hellenic Petroleum (683,246)

Paypal Holdings Inc 599,642 Check Point Software Tech (661,154)

Gilead Sciences Inc 402,800

The buys and sells represent aggregate purchases of a security exceeding 1 % of the total value of purchases for the year

and aggregate disposals greater than 1 % of the total value of sales.


Page 29 of 30

CORPORATE INFORMATION Directors

Kevin Molony (Irish Non-Executive - Independent)

John Skelly (Irish Non-Executive - Independent)

Sean Philip Peche (British, Executive)

Administrator

Apex Fund Services (Ireland) Limited

1st Floor Block 2

Harcourt Centre

Harcourt Street

Dublin 2

Ireland

Company Secretary

Intertrust Management Ireland Limited

2nd Floor,

1-2, Victoria Buildings,

Haddington Road,

Dublin 4,

Ireland

Investment Manager

Ranmore Fund Management Limited

Coveham House

Downside Bridge Road

Cobham

KT11 3EP

Depositary (from 18 March 2016, Custodian prior)

BNP Paribas Securities Services Dublin Branch

Trinity Point

10-11 Leinster Street South

Dublin 2

Ireland

Independent Auditor

Mazars Ireland Chartered Accountants and Registered

Auditors

Block 3 – Harcourt Centre

Harcourt Road

Dublin 2

Ireland

Legal Advisers to the Company in Ireland

Walkers Ireland

The Anchorage

17/19 Sir John Rogerson's Quay

Dublin 2

Ireland

Registered Office

The Anchorage

17/19 Sir John Rogerson's Quay

Dublin 2

Ireland

Website

Performance information for participating

shareholders can be found at:

www.ranmorefunds.com

http://www.ranmorefunds.com/


Page 30 of 30

*Copyright MSCI 2017. Unpublished. All Rights Reserved. This information may only be used for your internal use,

may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or

products or any indices. None of this information in intended to constitute investment advice or a recommendation

to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data

and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or

prediction. This information is provided on an “as is” basis and the user of this information assumes the entire risk

of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other

person involved in or related to compiling, computing or creating this information makes any express or implied

warranties or representations with respect to such information or the results to be obtained by the use thereof, and

MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation,

all warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a

particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI,

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**Morningstar Data Disclaimer

Copyright © 2017 Morningstar UK Limited. All Rights Reserved. The information contained herein: (1) is proprietary

to Morningstar; (2) may not be copied or distributed (save (i) as incidentally necessary in the course of viewing it on-

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view it on-line), or adapted in any way (3) is not warranted to be accurate, complete or timely. This Morningstar-

sourced information is provided to you by Ranmore Fund Management Ltd and is at your own risk. You agree that

Morningstar and or Ranmore Fund Management Ltd are not responsible for any damages or losses arising from any

use of this information and that the information must not be relied upon by you the user without appropriate

verification. Ranmore Fund Management Ltd informs you as follows: (i) The information provided should not form

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GICS Classification Disclaimer

The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service

mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) and

is licensed for use by Ranmore Fund Management Limited. Neither MSCI, S&P nor any third party involved in making

or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with

respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby

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lost profits) even if notified of the possibility of such damages.

Documents

RANMORE GLOBAL EQUITY FUND PLC the “Company”ranmorefunds.com/wp-content/uploads/2016/07/AR_Ranmore...2016/12/31 · MSCI World Index as at 30th June 2015 4,664.40 Percentage change