Annual Report & Financial Statements - Omnis...

Annual Report &Financial StatementsOmnis Managed Investments ICVC For the year ended 30 September 2016

Page

Omnis Managed Investments ICVC

Directory* 3

Authorised Corporate Director’s (“ACD”) Report* 4

Certification of Financial Statements by Directors of

the Authorised Corporate Director* 5

Statement of the ACD’s Responsibilities 6

Statement of the Depositary’s Responsibilities 7

Report of the Depositary to the Shareholders of the Company 7

Independent Auditor’s Report to Shareholders 8

Accounting Policies and Financial Instruments 10

Fund Investment Commentaries and

Financial Statements*

Omnis Managed Adventurous Fund 17

Omnis Managed Balanced Fund 33

Omnis Managed Cautious Fund 49

Omnis Multi-Asset Income Fund 64

Omnis Multi-Manager Adventurous Fund 87

Omnis Multi-Manager Balanced Fund 105

Omnis Multi-Manager Cautious Fund 123

Omnis Multi-Manager Distribution Fund 140

General Information 159

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

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Directory

The Company and Head Office Authorised Corporate Director (“ACD”)Omnis Managed Investments ICVC Omnis Investments Limited

Washington House Washington House

Lydiard Fields Lydiard Fields

Swindon SN5 8UB Swindon SN5 8UB

Incorporated 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 ManagersGerry Aherne (resigned 29 February 2016) Octopus Investments Limited

Stuart Buckingham (appointed 9 June 2016) 33 Holborn

Peter Davis London EC1N 2HT

Philip Martin (Authorised and regulated by the FCA)

Douglas Naismith (appointed 10 March 2016)

Dominic Sheridan Newton Investment Management Limited

Judith Worthy (resigned 17 June 2016) 160 Queen Victoria Street

London EC4V 4LA

Andy Whipp (Secretary) (Authorised and regulated by the FCA)

RegistrarInternational Financial Data Services (UK) Limited Threadneedle Asset Management Limited

IFDS House 78 Cannon Street

St Nicholas Lane London EC4N 6AG

Basildon (Authorised and regulated by the FCA)

Essex SS15 5FS

AuditorDeloitte LLP

Chartered Accountants and Statutory Auditor

Saltire Court

20 Castle Terrace

Edinburgh EH1 2DB

Customer Service CentreOmnis Managed Investments ICVC

PO BOX 10191

Chelmsford CM99 2AP

Telephone: 0345 140 0070*

DepositaryState Street Trustees Limited

20 Churchill Place

London 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.

4

Authorised Corporate Director’s Report

We are pleased to present the Annual

Report & Accounts for Omnis Managed

Investments ICVC for the year ended

30 September 2016.

Authorised Status


(“the Company”) is an investment

company with variable capital

incorporated in England and Wales

under registered number IC000674

and authorised by the Financial

Conduct Authority (“FCA”) with effect

from 20 May 2008. The Company has

an unlimited duration.

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 or other

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 established from time to

time by the ACD with the approval of

the FCA. On the introduction of any

new Fund or Class, a revised

prospectus will be prepared setting out

the relevant details of each Fund or

Class.

The Company is a UCITS scheme.

The assets of each Fund will be treated

as separate from those of every other

Fund and will be invested 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

Investment Schemes 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 Pounds Sterling.

Share Capital:

The minimum share capital of the Company is £1 and the maximum is

£100,000,000,000. Shares in the Company have no par value. The share capital

of the Company at all times equals the sum of the Net Asset Values of each of

the Funds.


Certification of Financial Statements by Directors of the AuthorisedCorporate DirectorFor the year ended 30 September 2016

5

Director’s Certification

This report has been prepared in accordance with the requirements of COLL, as issued and amended

by 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 basis

in the preparation of the accounts as the assets of the Funds consist predominately of securities

that are readily realisable and, accordingly, the Funds have adequate resources to continue in

operational existence for the foreseeable future.

Dominic Sheridan

Philip Martin

Omnis Investments Limited

12 January 2017


6

Statement of the ACD’s ResponsibilitiesFor the year ended 30 September 2016

The Authorised Corporate Director (“ACD”) of Omnis Managed Investments ICVC is responsible for

preparing the Annual Report and the Financial Statements in accordance with the Open-Ended

Investment Companies Regulations 2001 (“the OEIC Regulations”) as amended, the FCA’s Collective

Investment Schemes Sourcebook (“COLL”) and the Company’s Instrument of Incorporation.

The OEIC Regulations and COLL require the ACD to prepare Financial Statements for each annual

accounting period which:

• are in accordance with United Kingdom Generally Accepted Accounting Practice (“United

Kingdom Accounting Standards and applicable law”) including Financial Reporting Standards

102 (“FRS 102”) applicable in the UK and Republic of Ireland and the Statement of

Recommended Practice: “Financial Statements of Authorised Funds” issued by the Investment

Association (formerly Investment Management Association) (“IMA SORP”) in May 2014; and

• give a true and fair view of the financial position of the sub funds as at the end of that period

and the net revenue and the net capital gains or losses on the property of the sub funds for

that period.

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

• select suitable accounting policies and then apply them consistently;

• make judgments 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 to

presume that the Company will continue in operation.

The ACD is responsible for keeping proper accounting records that disclose with reasonable accuracy

at any time the financial position of the Company and enable them to ensure that the Financial

Statements comply with the applicable IMA SORP and United Kingdom Accounting Standards and

applicable law. The ACD is also responsible for the system of internal controls, for safeguarding the

assets of the Company and for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

In accordance with COLL 4.5.8BR, the Annual Report and the audited Financial Statements were

approved by the board of directors of the ACD of the Company and authorised for issue on

12 January 2017.

Omnis Investments Limited

12 January 2017


Statement of the Depositary’s ResponsibilitiesFor the year ended 30 September 2016

7

The Depositary must ensure that the Company is managed in accordance with the Financial Conduct

Authority’s Collective Investment Schemes Sourcebook, the Open-Ended Investment Companies

Regulations 2001 (SI 2001/1228), as amended, the Financial Services and Markets Act 2000, as

amended, (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 and

in the interests of the Company and its investors.

The Depositary is responsible for the safekeeping of all custodial assets and maintaining a record

of 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 booked

into the cash accounts in accordance with the Regulations;

• the sale, issue, repurchase, redemption and cancellation of shares are carried out in

accordance with the Regulations;

• the value of shares of the Company are calculated in accordance with the Regulations;

• any consideration relating to transactions in the Company’s assets is remitted to the Company

within the usual time limits;

• the Company’s income is applied in accordance with the Regulations; and

• the instructions of the Authorised Fund Manager (“the AFM”) which is the UCITS Management

Company, are carried out (unless they conflict with the Regulations).

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 2016

The Depositary also has a duty to take reasonable care to ensure that Company is managed in

accordance with the Regulations and Scheme documents in relation to the investment and

borrowing powers applicable to the Company.

Having carried out such procedures as we consider necessary to discharge our responsibilities as

Depositary of the Company, it is our opinion, based on the information available to us and the

explanations provided, that in all material respects the Company, acting through the AFM:

(i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of

the Company’s shares and the application of the Company’s income in accordance with the

Regulations and the Scheme documents of the Company, and

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

Company.

State Street Trustees LimitedDepositary

London

12 January 2017


8


We have audited the Financial Statements of Omnis Managed Investments ICVC (“the Company”)

for the year ended 30 September 2016 which comprise the Accounting Policies and Financial

Instruments notes and for each sub-fund: the Statements of Total Return, the Statements of Change

in Net Assets Attributable to Shareholders, the Balance Sheets, individual notes and the Distribution

Tables. The financial reporting framework that has been applied in their preparation is applicable

law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting

Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic

of Ireland”, the Statement of Recommended Practice: “Financial Statements of Authorised Funds”

issued by the Investment Association in May 2014, the Collective Investment Schemes Sourcebook

and the Instrument of Incorporation.

This report is made solely to the company’s shareholders, as a body, in accordance with Paragraph

4.5.12R of the Collective Investment Schemes Sourcebook of the Financial Conduct Authority. Our

audit work has been undertaken so that we might state to the company’s shareholders those matters

we are required to state to them in an auditor’s report and for no other purpose. To the fullest

extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company’s shareholders as a body, for our audit work, for this report, or for the

opinions we have formed.

Respective Responsibilities of the Depositary, the Authorised Corporate Director(ACD) and the Auditor

As explained more fully in the Statement of the Depositary’s Responsibilities and the Statement of

the ACD’s Responsibilities, the Depositary is responsible for safeguarding the property of the

company and the ACD is responsible for the preparation of the Financial Statements. Our

responsibility is to audit and express an opinion on the Financial Statements in accordance with the

requirements of the Collective Investment Schemes Sourcebook, applicable law and International

Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing

Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the Financial Statements

An audit involves obtaining evidence about the amounts and disclosures in the Financial Statements

sufficient to give reasonable assurance that the Financial Statements are free from material

misstatement, whether caused by fraud or error. This includes an assessment of: whether the

accounting policies are appropriate to the company’s circumstances and have been consistently

applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the ACD; and the overall presentation of the Financial Statements.

In addition, we read all the financial and non-financial information in the annual report to identify

material inconsistencies with the audited Financial Statements and to identify any information that

is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired

by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on Financial Statements

In our opinion the Financial Statements:

• give a true and fair view of the financial position of the sub funds as at 30 September 2016

and of the net revenue and the net capital gains/(losses) on the property of the sub funds

for the year ended 30 September 2016; and

Independent Auditor’s Report to Shareholders of Omnis Managed Investment ICVCFor the year ended 30 September 2016

9


Opinion on Financial Statements (continued)

• have been properly prepared in accordance with United Kingdom Generally Accepted

Accounting Practice (“United Kingdom Accounting Standards and applicable law”), including

FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and

the Statement of Recommended Practice: “Financial Statements of Authorised Funds” issued

by the Investment Association (“IMA SORP”) in May 2014, the rules in the Collective

Investment Schemes Sourcebook and the Instrument of Incorporation.

Opinion on other matters prescribed by the Collective Investment SchemesSourcebook

In our opinion:

• proper accounting records for the sub funds have been kept and the Financial Statements

are in agreement with those records;

• we have received all the information and explanations which, to the best of our knowledge

and belief, were necessary for the purposes of our audit; and

• the information disclosed in the Annual Report for the year ended 30 September 2016 for the

purpose of complying with Paragraph 4.5.9R of the Collective Investment Schemes

Sourcebook is consistent with the Financial Statements.

Deloitte LLPChartered Accountants and Statutory Auditor

Edinburgh, United Kingdom

12 January 2017

Independent Auditor’s Report to Shareholders of Omnis Managed Investment ICVC (continued)For the year ended 30 September 2016

10

Accounting Policies and Financial InstrumentsFor the year ended 30 September 2016

1. Accounting Basis and Policies

(a) Basis of accounting

The Financial Statements have been prepared under the historical cost basis, as modified by

the revaluation of investments and in accordance with Financial Reporting Standard 102

(“FRS 102”) and in accordance with the Statement of Recommended Practice (“SORP”) for

Financial Statements of Authorised Funds issued by the Investment Management Association

(now known as the Investment Association) in May 2014.

This is the first year that the Company has presented its Financial Statements under FRS 102

issued by the Financial Reporting Council. The last Financial Statements under previous UK

GAAP were for the year ended 30 September 2015 and the date of transition to FRS 102 was

therefore 1 October 2014. There has not been a significant impact as a consequence of

adopting FRS 102 for the first time.

Changes implemented as a result of adopting IMA SORP 2014

• The removal of the aggregated financial statements

• The inclusion of details of any cross holdings within the ICVC

• The performance record has been replaced by a comparative table

• New disclosures included to show share class movements, detailed portfolio transaction

cost breakdown and a fair value hierarchy breakdown of the portfolio

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 Financial

Statements of the Funds.

(b) Recognition of revenue

Dividends on quoted equities and preference shares are recognised when the securities are

quoted ex-dividend and are recognised net of attributable tax credits.

Rebates of annual management charges on underlying investments are accounted for on an

accruals basis and recognised as revenue or capital in line with the treatment of the charge

on the underlying Fund.

Revenue from debt securities is accounted for on an effective yield basis. Accrued interest on

purchase and sale contracts is recognised as revenue and transferred to revenue or capital

as appropriate.

Distributions from Collective Investment Schemes are recognised when the schemes are

quoted ex-distribution. Equalisation returned with the distribution is deducted from the cost

of 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 the

reporting period, is recognised as revenue no later than the date on which the reporting fund

makes this information available.

Returns on derivative transactions have been treated as either revenue or capital depending

on the motives and circumstances on acquisition.


11

Accounting Policies and Financial Instruments (continued)For the year ended 30 September 2016

1. Accounting Basis and Policies (continued)

(c) Treatment of stock and special dividends

The ordinary element of stock dividends received in lieu of cash dividends is credited to capital

in the first instance followed by a transfer to revenue of the cash equivalent being offered

and this forms part of the distributable revenue.

Special dividends are reviewed on a case by case basis in determining whether the dividend

is to be treated as revenue or capital. Amounts recognised as revenue will form part of the

distributable revenue. The tax treatment follows the treatment of the principal amount.

(d) Treatment of expenses

Expenses of the Funds are charged against revenue except for costs associated with the

purchase and sale of investments which are allocated to the capital of the Funds with the

exception of Omnis Multi-Manager Distribution Fund and Omnis Multi-Asset Income Fund

which charges all expenses to capital.

Rebates on the fees payable to the ACD are accounted for on an accruals basis and recognised

as revenue or capital in line with the treatment of the ACD fee on each fund. Rebates on the

fees 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 funds

Any revenue or expenses not directly attributable to a particular share class or fund will

normally be allocated pro-rata to the net assets of the relevant share classes and funds.

(f) Taxation

Tax is provided for using tax rates and laws which have been enacted or substantively enacted

at the balance sheet date.

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

expenses.

Corporation tax is provided for on realised gains on non-reporting offshore funds less

deductible expenses. Deferred tax is provided for on unrealised gains on non-reporting

offshore funds less deductible expenses.

Where tax has been deducted from revenue that tax can, in some instances, be set off against

the corporation tax payable, by way of double tax relief.

Deferred tax is provided using the liability method on all timing differences arising on the

treatment of certain items for taxation and accounting purposes, calculated at the rate at

which it is anticipated the timing differences will reverse. Deferred tax assets are recognised

only when, on the basis of available evidence, it is more likely than not that there will be

taxable profits in the future against which the deferred tax asset can be offset.

(g) Distribution policy

The net revenue after taxation, as disclosed in the Financial Statements, after adjustment

for items of a capital nature, is distributable to shareholders as dividend or interest

distributions. Any revenue deficit is deducted from capital at year end.


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(g) Distribution policy (continued)

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 a

final 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.

(h) Basis of valuation of investments

Listed investments are valued at close of business prices excluding any accrued interest in

the 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 at

quoted 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, where

appropriate, latest dealing prices, valuations from reliable sources, financial performance and

other relevant factors.

The fair value of derivative instruments is marked to market value. The forward currency

contracts are valued at the prevailing forward exchange rates.

(i) Exchange rates

Transactions in foreign currencies are recorded in Sterling at the rates ruling at the dates of

the transactions. Assets and liabilities expressed in foreign currencies at the end of the

accounting period are translated into Sterling at the closing mid market exchange rates ruling

on that date.

(j) Dilution adjustment

The ACD may require a dilution adjustment on the sale and redemption of shares if, in its

opinion, the existing shareholders (for sales) or remaining shareholders (for redemptions)

might otherwise be adversely affected. In particular, the dilution adjustment may be charged

in the following circumstances: where the scheme property is in continual decline; on a Fund

experiencing large levels of net sales relative to its size; on ‘large deals’; in any case where

the ACD is of the opinion that the interests of remaining shareholders require the imposition

of a dilution adjustment.

(k) Equalisation

Equalisation 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 to

income tax but must be deducted from the cost of the shares for Capital Gains Tax purposes.


13



(l) Derivatives

Some of the Funds may enter into permitted transactions such as derivative contracts or

forward foreign currency transactions. Where these transactions are used to protect or

enhance revenue, the revenue and expenses are included within net revenue in the Statement

of Total Return.

Where the transactions are used to protect or enhance capital, the gains/losses are treated

as capital and included within gains/losses on investments in the Statement of Total Return.

Any open positions in these types of transactions at the year end are included in the Balance

Sheet at their mark to market value.

2. Derivatives and other financial instruments

In pursuing the investment objectives a number of financial instruments are held which may

comprise securities and other investments, cash balances and debtors and creditors that arise

directly from operations. Derivatives, such as futures or forward currency contracts, may be

utilised for hedging purposes.

The ACD maintains a detailed Risk Management Policy for identifying, measuring and

documenting 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 using

the Commitment Methodology.

Risk

Measurement Utilisation of the VaR Limit

Fund Method Used Lowest Highest Average

Omnis Managed Adventurous Fund Commitment N/A N/A N/A

Omnis Managed Balanced Fund Commitment N/A N/A N/A

Omnis Managed Cautious Fund Commitment N/A N/A N/A

Omnis Multi-Asset Income Fund Value at Risk 4.22% 5.48% 4.91%

Omnis Multi-Manager Adventurous Fund Commitment N/A N/A N/A

Omnis Multi-Manager Balanced Fund Commitment N/A N/A N/A

Omnis Multi-Manager Cautious Fund Commitment N/A N/A N/A

Omnis 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 the

Portfolio over a defined holding period, one month, at a confidence level of 99%. VaR is

calculated using a factor exposure model, based on two years’ historic price data.


14


2. Derivatives and other financial instruments (continued)

(a) Foreign currency risk

The revenue and capital value of the assets of the Funds can be significantly affected by

currency 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 such

assets may decrease if the underlying currency in which assets are traded falls relative to the

base 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, although

they may do so through foreign currency exchange contracts, forward contracts, currency

options and other methods. To the extent that the Funds of the Company do not hedge their

foreign currency risk or such hedging is incomplete or unsuccessful, the value of the Funds

of the Company’s assets and revenue could be adversely affected by currency exchange rate

movements. There may also be circumstances in which a hedging transaction may reduce

currency gains that would otherwise arise in the valuation of the Funds of the Company in

circumstances where no such hedging transactions are undertaken.

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

The interest rate risk is the risk that the value of the Funds of the Company’s investments

will fluctuate due to changes in the interest rate. Cashflows from floating rate securities, bank

balances, or bank overdrafts will be affected by the changes in interest rates. As the Funds

of the Company’s objective is to seek capital growth, these cashflows are considered to be of

secondary importance and are not actively managed. The details of each Funds’ interest rate

risk 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 sheet

date.

(c) Credit risk

The Funds may invest in interest-bearing securities. If any individual company fails to perform

well, then the credit rating of that company may fall and the bonds would fall in price as a

result of the perceived increased credit risk. Adhering to investment guidelines and avoiding

excessive exposure to one particular issuer can limit credit risk. The ACD closely monitors the

ratings of the bonds within the portfolio.


15




(d) Liquidity risk

The primary source of liquidity risk is the liability to shareholders for any cancellation of shares.

The assets of the Funds comprise, in the main, ready realisable securities, but, subject to the

Regulations, the Funds of the Company may invest up to and including 10% of the Scheme

Property of the Funds of the Company in transferable securities which are not approved

securities (essentially transferable securities which are admitted to official listing in an EEA

state or traded on or under the rules of an eligible securities market). Such securities and

instruments are generally not publicly traded, may be unregistered for securities law purposes

and may only be able to be resold in privately negotiated transactions with a limited number

of purchasers. The difficulties and delays associated with such transactions could result in

the Funds of the Company’s inability to realise a favourable price upon disposal of such

securities, and at times might make disposal of such securities and instruments impossible.

To the extent that Funds of the Company invest in such securities and instruments the terms

of which are privately negotiated, the terms of these may contain restrictions regarding resale

and transfer.

In addition, certain listed securities and instruments, particularly securities and instruments

of smaller capitalised or less seasoned issuers, may from time to time lack an active secondary

market and may be subject to more abrupt or erratic price movements than securities of

larger, more established companies or stock market averages in general. In the absence of

an active secondary market the Funds of the Company’s ability to purchase or sell such

securities at a fair price may be delayed.

(e) Market price risk

The Funds of the Company invest primarily in equities, bonds, units in Collective Investment

Schemes and derivatives. The values of these investments are not fixed and may go down as

well as up. This may be the result of a specific factor affecting the value of an individual

equity or be caused by general market factors (such as government policy or the health of

the underlying economy) which can affect the entire portfolio. The Investment Manager seeks

to minimise these risks by holding a diversified portfolio in line with the objectives of each

Fund. In addition, the management complies with the FCA’s COLL sourcebook, which includes

rules prohibiting a holding greater than 20% of assets in any one Fund.

If the market prices had increased or decreased by 10% as at the balance sheet date, the

net asset values of the Funds would have changed by the following amounts. These

calculations are applied to non-derivative securities only.

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(e) Market price risk (continued)

Increase Decrease

Fund Name £’000 £’000

Omnis Managed Adventurous Fund 4,567 4,567

Omnis Managed Balanced Fund 18,143 18,143

Omnis Managed Cautious Fund 8,577 8,577

Omnis Multi-Asset Income Fund 8,951 8,951

Omnis Multi-Manager Adventurous Fund 6,852 6,852

Omnis Multi-Manager Balanced Fund 17,933 17,933

Omnis Multi-Manager Cautious Fund 11,825 11,825

Omnis Multi-Manager Distribution Fund 3,342 3,342

(f) Counterparty risk

Transactions in securities entered into by the Funds of the Company give rise to exposure to

the risk that the counterparties may not be able to fulfil their responsibility by completing

their side of the transaction. The Investment Managers minimises this risk by conducting

trades through only the most reputable counterparties.

The ACD monitors the Funds’ exposure to individual counterparties and applies limits which

may not be exceeded.

(g) Derivatives and forward transactions

All 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 instruments

for investment purposes.

Multi-Asset Income Fund

Forward Foreign Exchange – for the purpose of hedging against the potential negative effect

of currency movements on the portfolio.

(h) Fair value of financial assets and financial liabilities

There is no material difference between the value of the financial assets and liabilities, as

shown in the balance sheet, and their fair value.


17

Omnis Managed Adventurous Fund

Investment Manager’s ReportFor the year ended 30 September 2016

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

All allocations except cash saw positive returns in a strong period for most asset classes. Theexposure to UK equities was the largest absolute contributor with the US and emerging marketequity portfolios also generating strong positive returns. In fixed income, exposure to emergingmarket (EM) bonds helped returns.

In terms of activity, the most significant moves over the year were an increase in exposure to EMequities and, to a much lesser extent, to EM government bonds (where we added a new allocationto local-currency bonds). These assets should benefit from the recovery in commodity prices andsigns that the Chinese economy may be starting to stabilise. In addition, they are relatively wellinsulated from any Brexit-related risks. We also trimmed the fund’s allocation to European ex UKequities. Despite the Eurozone making reasonable progress in recent quarters – with rising wagesand consumption, and revived capital expenditure – these indicators will need to continue growingat a time when Brexit could put them under pressure. We moved from a slight overweight in UKequities to a slight underweight, although post-Brexit we have increased our exposure again. Wealso reduced the allocation to Japanese equities, where persistent yen strength remains a barrierto both economic and corporate earnings growth. In fixed income, as well as the aforementionedincrease in EM exposure, we also modestly raised the fund’s holdings in UK bonds, starting a newposition in the Threadneedle UK Short Dated Bond Fund. We also added to the existing high-yieldallocation. Spreads on high-yield bonds versus government bonds have risen to attractive levels,more than offsetting any risks that we can envisage.

18

Investment Manager’s Report (continued)For the year ended 30 September 2016

Market Overview

Global bond and equity markets rose over the period, buoyed by easy monetary policy across muchof the world. Weakness in sterling following the UK’s unexpected vote to leave the EU greatlyamplified returns from overseas assets when considered in sterling terms. Other factors affectingsentiment included market turmoil in China early in 2016 and big swings in the oil price. The USFederal Reserve raised interest rates from their historic lows in December: a move that was widelyexpected and generally well received by investors. For the remainder of the period, however, theFed kept rates on hold, citing sub-target inflation and concerns about the global economy – first inrelation to the market volatility in China and, later, the “Brexit” shock. Faced with sluggish growthand inflation, the European Central Bank expanded its stimulus in December and again in March,while the Bank of England responded to the Brexit vote with an aggressive suite of easing measures,including a rate cut and corporate-bond purchases. Japan’s central bank, too, adopted an assertivestance, taking interest rates into negative territory. Despite this, Japan has fallen back into deflationand the yen has strengthened, putting pressure on Japanese equities, which lagged their globalpeers over the year.

Outlook

The Managed Adventurous Fund primarily provides exposure to a mix of UK and internationalequity markets. Elsewhere, the fund has only a modest weighting in bonds and is underweight inthis asset class.

We hope for corporate earnings growth to come through over the coming year, given the ongoingrecovery in the developed economies and the positive effects of accommodative monetary policy.That said, reductions in interest rates can stimulate demand only if accompanied by effective fiscalexpansion, with governments using the room afforded by lower rates to increase their fiscal spend.Indeed, there is increased speculation about the prospect of a large fiscal stimulus in the UK. Asmonetary policy appears to be approaching the limits of its capability and efficacy, the next roundof stimulus may be focused on government spending, particularly in housing and infrastructure.Meanwhile, both US presidential candidates propose a major increase in infrastructure spending.

Investment ManagerThreadneedle Asset Management Limited17 October 2016


19


A Accumulation B Income30/09/16 30/09/15 30/09/14 30/09/16 30/09/15 30/09/14

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

Change in net

assets per Share

Opening net asset

value per share 207.09 204.87 191.62 107.86 107.70 101.90

Return before

operating charges* 38.98 5.80 16.30 24.39 2.93 8.60

Operating charges (3.11) (3.58) (3.05) (1.07) (1.03) (0.83)

Return after

operating charges 35.87 2.22 13.25 23.32 1.90 7.77

Distributions (0.81) (2.01) (2.40) (2.02) (1.74) (1.97)

Retained distributions

on accumulation shares 0.81 2.01 2.40 – – –

Closing net asset value

per share 242.96** 207.09 204.87 129.16 107.86 107.70

* after direct transaction

costs of: 0.00 0.00 0.00 0.00 0.00 0.00

Performance

Return after

operating charges 17.32%** 1.08% 6.91% 21.62% 1.76% 7.63%

Other information

Closing net asset

value (£’000) – 465 614 3,095 2,025 2,152

Closing number of shares – 224,366 299,848 2,396,231 1,877,505 1,998,375

Operating charges 1.66% 1.65% 1.52% 0.91% 0.90% 0.78%

Direct transaction costs 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Prices (p)

Highest share price 245.76 236.19 210.60 132.18 123.79 111.68

Lowest share price 199.38 192.88 191.32 104.07 101.43 101.71

** Share class A Accumulation closed on 5 August 2016. The closing net asset value per share and return after operating

charges figures shown above are calculated to the closure date.

Comparative TableAs at 30 September 2016

20

B Accumulation30/09/16 30/09/15 30/09/14

(p) (p) (p)

Change in net assets per Share

Opening net asset value per share 216.09 212.49 197.39

Return before operating charges* 49.05 5.63 16.70

Operating charges (2.15) (2.03) (1.60)

Return after operating charges 46.90 3.60 15.10

Distributions (4.06) (3.44) (3.84)

Retained distributions on accumulation shares 4.06 3.44 3.84

Closing net asset value per share 262.99 216.09 212.49

* after direct transaction costs of: 0.00 0.00 0.00

Performance

Return after operating charges 21.70% 1.69% 7.65%

Other information

Closing net asset value (£’000) 42,858 35,640 38,945

Closing number of shares 16,296,356 16,493,658 18,328,164

Operating charges 0.91% 0.90% 0.77%

Direct transaction costs 0.00% 0.00% 0.00%

Prices (p)

Highest share price 266.54 245.77 218.18

Lowest share price 208.50 200.11 197.02

Comparative Table (continued)As at 30 September 2016


21


Ongoing Charge Figure

TotalSynthetic Rebates from ongoing

Other expense underlying Transaction chargeAMC expenses ratio funds costs figure

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

30/09/16Share Class B Income 0.75 0.07 1.05 (0.97) 0.01 0.91Share Class B Accumulation 0.75 0.07 1.05 (0.97) 0.01 0.91

30/09/15Share Class A Accumulation 1.50 0.05 1.04 (0.96) 0.02 1.65Share Class B Income 0.75 0.05 1.04 (0.96) 0.02 0.90Share Class B Accumulation 0.75 0.05 1.04 (0.96) 0.02 0.90

The Ongoing Charge Figure (OCF) is the ratio of the Fund’s total disclosable costs (excludingoverdraft interest) to the average net assets of the Fund. When a Fund invests a substantialproportion of its assets in other UCITS or Collective Investment Undertakings (CIU), the OCF shalltake account of the ongoing charges incurred in the underlying CIUs and disclose as a Syntheticexpense 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 2016

Share Class B 1 2 3 4 5 6 7

Typically lower rewards Typically higher rewards

Higher riskLower risk5

Performance InformationAs at 30 September 2016

22

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

Collective Investment Schemes 99.40% [98.65%]1,067,167 Threadneedle American 2,728 5.94

315,398 Threadneedle American Extended Alpha 968 2.11981,966 Threadneedle American Select 2,604 5.67757,169 Threadneedle Asia 1,499 3.2662,119 Threadneedle Emerging Market Bond 164 0.36

245,612 Threadneedle Emerging Market Local 229 0.50361,482 Threadneedle European 801 1.74

1,113,678 Threadneedle European Select 3,165 6.8970,885 Threadneedle European Smaller Companies 537 1.17

6,516,218 Threadneedle Global Emerging Markets Equity 7,014 15.26786,849 Threadneedle Global Equity Income 1,022 2.22258,550 Threadneedle Global Extended Alpha 618 1.34164,611 Threadneedle High Yield Bond 272 0.59

6,247,063 Threadneedle Japan 3,587 7.8154,433 Threadneedle Latin America 120 0.268,546 Threadneedle Lux Asian Equity Income 449 0.98

761,958 Threadneedle Pan European Focus 1,811 3.9462,414 Threadneedle Short Dated Corporate Bond 67 0.15

3,939,492 Threadneedle UK 5,069 11.0390,907 Threadneedle UK Corporate Bond 106 0.23

5,115,386 Threadneedle UK Equity Alpha Income 3,591 7.81817,086 Threadneedle UK Extended Alpha 3,659 7.96179,561 Threadneedle UK Mid 250 432 0.94

3,031,697 Threadneedle UK Select 3,617 7.87524,900 Threadneedle UK Select Trust* 903 1.97247,863 Threadneedle UK Smaller Companies 643 1.40

45,675 99.40

Portfolio of investments 45,675 99.40Net other assets 278 0.60Net assets 45,953 100.00

* Investment Trust.

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 2015.

Gross purchases for the year: £9,111,000 [2015: £12,936,000].

Total sales net of transaction costs for the year: £8,972,000 [2015: £14,655,000].

Portfolio StatementAs at 30 September 2016


23


Statement of Total ReturnFor the year ended 30 September 2016

01/10/15 to 30/09/16 01/10/14 to 30/09/15

Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 7,649 251Revenue 3 1,088 985

Expenses 4 (349) (343)Interest payable and similar charges 5 – (1)

Net revenue before taxation 739 641Taxation 6 (29) (18)

Net revenue after taxation 710 623

Total return before distributions 8,359 874Distributions 7 (733) (631)

Change in net assets attributable to Shareholders from investment activities 7,626 243

01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000

Opening net assets attributable to Shareholders 38,130 41,711

Amounts receivable on issue of Shares 6,829 4,959Amounts payable on cancellation

of Shares (7,305) (9,365)

(476) (4,406)Change in net assets attributable

to Shareholders from investment activities (see above) 7,626 243

Retained distributions on accumulation Shares 673 582

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

Statement of Change in Net Assets Attributable to ShareholdersFor the year ended 30 September 2016

24

30/09/16 30/09/15

Note £’000 £’000 £’000 £’000

Assets:Fixed assets:

Investments 45,675 37,614Current assets:

Debtors 8 398 663Cash and bank balances 9 105 49

Total current assets 503 712

Total assets 46,178 38,326

Liabilities:Investment liabilities – –Creditors:

Distribution payable (30) (18)Other creditors 10 (195) (178)

Total creditors (225) (196)

Total liabilities (225) (196)

Net assets attributableto Shareholders 45,953 38,130

Balance SheetAs at 30 September 2016


25


Notes to the Financial StatementsFor the year ended 30 September 2016

1. Accounting Basis And Policies

The Fund’s Financial Statements have been prepared on the basis detailed on pages 10 to 16.

2. Net capital gains

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

The net capital gains during the year comprise:Currency (losses)/gains (1) 1Non-derivative securities 7,604 219Rebates received from underlying funds 51 39Transaction charges (5) (8)

Net capital gains 7,649 251

3. Revenue

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Bank interest – 1Franked dividends from Collective Investment Schemes 670 565Interest income from Collective Investment Schemes 26 32Offshore funds dividends 9 –Overseas dividends 25 23Rebates received from underlying funds 358 364

Total revenue 1,088 985

26

Notes to the Financial Statements (continued)For the year ended 30 September 2016

4. Expenses

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

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

AMC fees 320 320

320 320

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

Depositary fees 11 6Safe custody fees 2 2

13 8

Other expensesAudit fees 9 9Professional fees 5 2Publication fees 2 4

16 15

Total expenses 349 343

Audit fees are £7,550 ex VAT (2015: £7,350).

5. Interest payable and similar charges

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Interest – 1

Total interest payable and similar charges – 1


27



6. Taxation

(a) Analysis of the tax charge in the year

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Corporation tax 17 18Deferred tax (Note 6 (c)) 12 –

Total taxation for the year (Note 6 (b)) 29 18

(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% (2015: 20%) is applied tothe net revenue before taxation. The differences are explained below:

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Net revenue before taxation 739 641

Net revenue for the year multiplied by thestandard rate of corporation tax 148 128

Effects of:Capital income subject to taxation 12 –Rebated capital expenses deductible for tax purposes 10 8Revenue not subject to corporation tax (141) (118)

Total tax charge for the year 29 18

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

reconciliation above.

(c) Deferred tax

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Deferred tax charge in the year 12 –

Provision at the end of the year 12 –

28


7. Distributions

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

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Interim 275 272Final 444 344Add: Revenue paid on cancellation of Shares 37 32Deduct: Revenue received on creation of Shares (23) (17)

Net distribution for the year 733 631

Reconciliation of net revenue aftertaxation to distributions

Net revenue after taxation 710 623Equalisation on conversion of Shares 1 –Tax relief from capital* 22 8

Net distribution for the year 733 631

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

capital gains and capital rebates from underlying funds.

Details of the distributions per Share are set out in the distribution tables on page 32.

8. Debtors

30/09/16 30/09/15

£’000 £’000

Accrued revenue 157 140Amounts due for rebates from underlying funds 110 302Amounts receivable for creation of shares 88 1Sales awaiting settlement 43 220

Total debtors 398 663

9. Cash and bank balances

30/09/16 30/09/15

£’000 £’000

Cash and bank balances 105 49

Total cash and bank balances 105 49


29



10. Other creditors

30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares 41 115Corporation tax payable 17 18Deferred tax payable 12 –Purchases awaiting settlement 85 –

155 133

Accrued expensesManager and AgentsAMC fees 28 24

28 24

Depositary and AgentsDepositary fees 1 1Safe custody fees – 1Transaction charges 1 6

2 8

Other accrued expensesAudit fees 9 9Professional fees – 1Publication fees 1 3

10 13

Total other creditors 195 178

11. Related party transactions

Management fees paid to the ACD, are disclosed in note 4 and amounts due at the year endare disclosed in note 10.

Monies received and paid by the ACD through the creation and cancellation of Shares aredisclosed in the Statement of Change in Shareholders’ Net Assets and amounts due at theyear end are disclosed in notes 8 and 10.

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 30/09/16 (%)

Scottish Equitable Plc 33.20Sterling ISA Managers (Nominees) Limited 32.70

30


12. Share Classes

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

%

Share Class A Accumulation 1.50Share 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:

30/09/15 Issued Cancelled Converted 30/09/16

Share Class A Accumulation 224,366 38,247 (19,693) (242,920) –Share Class B Income 1,877,505 1,078,185 (559,459) – 2,396,231Share Class B Accumulation 16,493,658 2,368,895 (2,797,829) 231,632 16,296,356

13. Capital commitments and contingent liabilities

There were no contingent liabilities or outstanding commitments at the balance sheet date(2015: 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 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 2016 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.


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 2016, 0.23% of the Fund’s assets were interest bearing (2015: 0.13%).

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.



15. 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 0.08% (2015: 0.14%).

16. Post balance sheet events

Subsequent to the year end, the Net Asset Value per Share of the Fund has increased usingthe Share prices at the year end date compared to 30 December 2016.

B Income Shares have increased from 131.67p to 132.73p. This takes into account routinetransactions but also reflects the market movements.

B Accumulation Shares have increased from 265.50p to 270.26p. This takes into accountroutine transactions but also reflects the market movements.

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

17. Fair value disclosure

30/09/16 30/09/15

Assets Liabilities Assets Liabilities

Valuation technique £’000 £’000 £’000 £’000

Level 1: The unadjusted quotedprice in an active market foridentical assets or liabilities 903 – 824 –

Level 2: Inputs other than quotedprices included within Level 1that are observable for theasset or liability, either directlyor indirectly 44,772 – 36,790 –

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

45,675 – 37,614 –


31

32

Interim Distribution in pence per Share

Group 1 Shares purchased prior to 1 October 2015Group 2 Shares purchased on or after 1 October 2015 to 31 March 2016

Distribution Distribution

Net paid paid

revenue Equalisation 31/05/16 31/05/15

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

Share Class A AccumulationGroup 1 0.8065 – 0.8065 0.8034Group 2 0.7051 0.1014 0.8065 0.8034

Share Class B IncomeGroup 1 0.7573 – 0.7573 0.7528Group 2 0.4858 0.2715 0.7573 0.7528

Share Class B AccumulationGroup 1 1.5174 – 1.5174 1.4865Group 2 0.8904 0.6270 1.5174 1.4865

Final Distribution in pence per Share

Group 1 Shares purchased prior to 1 April 2016Group 2 Shares purchased on or after 1 April 2016 to 30 September 2016


Net payable paid


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



Share class A Accumulation closed on 5 August 2016.

Distribution TableAs at 30 September 2016


33

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

Almost all exposures contributed positive returns in a strong period for all asset classes. Cash wasa notable exception, and currency movements had a negative effect on returns.

The exposure to UK equities was the largest contributor with the US and emerging-market equityportfolio also generating strong positive returns. In fixed income, however, the UK bond fundsdragged on total performance.

In terms of activity, the most significant move over the year was an increase in exposure toemerging-market (EM) equities, where we moved from an underweight to a modest overweight.To a much lesser extent, we also raised the weighting to EM government bonds (where we addeda new allocation to local-currency bonds). EM assets should benefit from the recovery in commodityprices and signs that the Chinese economy may be starting to stabilise. In addition, they arerelatively well insulated from any Brexit-related risks. On the sales side we trimmed the fund’sallocation to European ex UK equities. Despite the Eurozone making reasonable progress in recentquarters – with rising wages and consumption, and revived capital expenditure – these indicatorswill need to continue growing at a time when Brexit could put them under pressure. We also reducedthe allocation to Japanese equities, where persistent yen strength remains a barrier to botheconomic and corporate earnings growth. In fixed income, as well as the aforementioned increasein EM exposure, we also raised the fund’s holdings in global bonds (mostly developed-marketgovernment debt) and in UK bonds, where we increased exposure to gilts. Lastly, we increased theexisting allocation to high yield bonds: their spread over government debt has risen to attractivelevels, which in our view more than offsets any risks that we can envisage.


34


Market Overview

Global bond and equity markets rose over the period, buoyed by easy monetary policy across muchof the world. Weakness in sterling following the UK’s unexpected vote to leave the EU greatlyamplified returns from overseas assets when considered in sterling terms. Other factors affectingsentiment included market turmoil in China early in 2016 and big swings in the oil price. The USFederal Reserve raised interest rates from their historic lows in December, a move that was widelyexpected and generally well received by investors. For the remainder of the period, however, theFed kept rates on hold, citing sub-target inflation and concerns about the global economy – first inrelation to the market volatility in China and, later, the “Brexit” shock. Faced with sluggish growthand inflation, the European Central Bank expanded its stimulus in December and again in March,while the Bank of England responded to the Brexit vote with an aggressive suite of easing measures,including a rate cut and corporate-bond purchases. Japan’s central bank, too, adopted an assertivestance, taking interest rates into negative territory. Despite this, Japan has fallen back into deflationand the yen has strengthened, putting pressure on Japanese equities, which lagged their globalpeers over the year.

Outlook

In terms of the fund’s positioning, we retain a modest overweight in equities. The fund isunderweight in fixed income; within this, the allocation is fairly evenly split between corporate bondsand government securities.





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

Change in net

assets per Share

Opening net asset

value per share 193.88 191.20 179.28 106.16 105.72 100.64

Return before



Return after


Distributions (0.51) (1.92) (2.81) (1.69) (1.73) (2.24)




per share 223.86** 193.88 191.20 124.71 106.16 105.72


costs of: 0.00 0.00 0.00 0.00 0.00 0.00

Performance

Return after


Other information

Closing net asset

value (£’000) – 3,253 4,249 14,865 10,525 10,197

Closing number of shares – 1,677,672 2,222,330 11,919,558 9,914,179 9,644,834



Prices (p)





35



B Accumulation30/09/16 30/09/15 30/09/14

(p) (p) (p)






Distributions (3.22) (3.26) (4.12)




Performance


Other information





Prices (p)



36



37


Ongoing Charge FigureTotal

Synthetic Rebates from OngoingOther expense underlying Transaction charge

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




• 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 Warning







38





34,631 Threadneedle American Absolute Alpha 794 0.431,085,051 Threadneedle American Extended Alpha 3,332 1.813,268,734 Threadneedle American Select 8,667 4.712,066,131 Threadneedle Asia 4,091 2.22

625,531 Threadneedle Emerging Market Bond 1,647 0.89686,321 Threadneedle Emerging Market Local 1,134 0.62

1,627,500 Threadneedle European 3,607 1.961,724,193 Threadneedle European Select 4,900 2.66

52,708 Threadneedle European Smaller Companies 399 0.226,251,265 Threadneedle Global Bond 6,966 3.78

18,176,922 Threadneedle Global Emerging Markets Equity 19,566 10.623,035,415 Threadneedle Global Equity Income 3,941 2.14

78,607 Threadneedle Global Opportunities Bond 1,212 0.661,532,518 Threadneedle High Yield Bond 2,533 1.38

16,028,508 Threadneedle Japan 9,204 5.0012,452 Threadneedle Lux Asian Equity Income 654 0.3626,282 Threadneedle Lux Global Smaller Companies 739 0.40

5,940,906 Threadneedle Navigator Income Trust 6,903 3.753,055,204 Threadneedle Pan European Focus 7,263 3.945,038,221 Threadneedle Short Dated Corporate Bond 5,428 2.95

599,688 Threadneedle Sterling 599 0.3328,645,007 Threadneedle Sterling Bond 17,350 9.4213,555,469 Threadneedle UK 17,443 9.47

888,889 Threadneedle UK Absolute Alpha 1,196 0.65369,551 Threadneedle UK Corporate Bond 431 0.23

8,859,025 Threadneedle UK Equity Income 9,123 4.952,157,886 Threadneedle UK Extended Alpha 9,663 5.25

555,229 Threadneedle UK Mid 250 1,335 0.729,506,068 Threadneedle UK Select 11,342 6.162,320,000 Threadneedle UK Select Trust* 3,990 2.17

570,971 Threadneedle UK Smaller Companies 1,482 0.80181,433 98.52

Portfolio of investments 181,433 98.52Net other assets 2,730 1.48Net assets 184,163 100.00

* Investment Trust.







39



01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000

Opening net assets attributable to shareholders 160,715 172,465

Amounts receivable on issue of Shares 17,941 12,302

Amounts payable on cancellation of Shares (24,636) (28,158)

(6,695) (15,856)Change in net assets attributable

to Shareholdersfrom investment activities(see above) 27,846 1,629

Retained distribution on accumulation Shares 2,297 2,477


01/10/15 to 30/09/16 01/10/14 to 30/09/15

Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 27,948 1,666Revenue 3 4,006 4,279

Expenses 4 (1,378) (1,395)Interest payable and similar charges 5 (2) –

Net revenue before taxation 2,626 2,884Taxation 6 (217) (237)

Net revenue after taxation 2,409 2,647

Total return before distributions 30,357 4,313Distributions 7 (2,511) (2,684)

Change in net assets attributable to Shareholdersfrom investment activities 27,846 1,629


40


30/09/16 30/09/15

Note £’000 £’000 £’000 £’000


Investments 181,433 151,237

Current assets:Debtors 8 2,292 1,630Cash and bank balances 9 1,115 9,274

Total current assets 3,407 10,904

Total assets 184,840 162,141

LiabilitiesInvestment liabilities – –

CreditorsDistribution payable (128) (102)Other creditors 10 (549) (1,324)

Total creditors (677) (1,426)

Total liabilities (677) (1,426)

Net assets attributable to Shareholders 184,163 160,715


41





01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

The net capital gains during the year comprise:Currency (losses)/gains (15) 4Non-derivative securities 27,584 1,486Rebates received from underlying funds 382 182Transaction charges (3) (6)

Net capital gains 27,948 1,666

3. Revenue

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Bank interest 1 18 Franked dividends from Collective Investment Schemes 1,904 1,783 Interest income from Collective Investment Schemes 765 1,058 Offshore funds dividends 19 –Overseas dividends 119 100Rebates received from underlying funds 1,198 1,320

Total revenue 4,006 4,279


42



4. Expenses

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

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

AMC fees 1,305 1,342

1,305 1,342

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


54 34

Other expensesAudit fees 9 9 HMRC interest – 1 Professional fees 8 4 Publication fees 2 5

19 19

Total expenses 1,378 1,395


5. Interest payable and similar charges

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Interest 2 –

Total interest payable and similar charges 2 –

43



6. Taxation

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


Corporation tax 197 237 Deferred tax (Note 6 (c)) 20 –




01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Net revenue before taxation 2,626 2,884

Net revenue for the year multiplied bythe standard rate of corporation tax 525 577

Effects of:Capital income subject to taxation 20 37 Rebated capital expenses deductible for tax purposes 76 – Revenue not subject to corporation tax (404) (377)




(c) Deferred tax

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000



44



7. Distributions


01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Interim 926 1,115 Final 1,571 1,532 Add: Revenue paid on cancellation of Shares 67 74 Deduct: Revenue received on creation of Shares (53) (37)

Net distribution for the year 2,511 2,684

Reconciliation of net revenue after taxation to distributions

Net revenue after taxation 2,409 2,647 Equalisation on conversions of Shares 6 –Tax relief from capital* 96 37


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



8. Debtors

30/09/16 30/09/15

£’000 £’000

Accrued revenue 760 693 Amounts due for rebates from underlying funds 437 372 Amounts receivable for creation of shares 82 23 Income tax recoverable 83 62 Sales awaiting settlement 929 479 Prepaid expenses 1 1

Total debtors 2,292 1,630


30/09/16 30/09/15

£’000 £’000

Cash and bank balances 1,115 9,274

Total cash and bank balances 1,115 9,274

45



10. Other creditors

30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares 191 214 Corporation tax payable 174 148 Deferred tax payable 20 –Purchases awaiting settlement 35 834

420 1,196


113 102

Depositary and AgentsDepositary fees 4 3Safe custody fees 1 5 Transaction charges 1 5

6 13


10 13

Total other creditors 549 1,324





Significant shareholdings



Sterling ISA Managers (Nominees) Limited 32.30Zurich Assurance Ltd 27.70

46



12. Share classes

The Share Classes and ACD’s Annual Management Charges applicable to each Fund are asfollows:

%





Share Class A Accumulation 1,677,672 30,902 (167,934) (1,540,640) –Share Class B Income 9,914,179 4,124,063 (2,118,684) – 11,919,558 Share Class B Accumulation 72,827,547 6,146,177 (10,002,322) 1,472,997 70,4,44,399






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.







15. Portfolio Transaction Costs









30/09/16 30/09/15



Level 1: The unadjusted quoted price in an active market foridentical assets or liabilities 3,990 – 3,642 –

Level 2: Inputs other than quoted prices included within Level 1that are observable for theasset or liability, either directlyor indirectly 177,443 – 147,595 –

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

181,433 – 151,237 –

47



Interim Distribution in pence per share



Net paid paid


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




Final Distribution in pence per share



Net payable paid


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




48


48


49

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

Almost all exposures generated positive returns over the year. UK and North American equities werethe largest contributors to returns, the latter boosted by a rise in the value of the dollar. In termsof allocation, an underweight in North American equities, which performed very well in sterlingterms, was disadvantageous, as was a slight overweight in UK equities, which lagged its benchmark.In absolute terms, almost all the allocations contributed positively in a strong period across assetclasses. Aside from fixed income, the main contributors to absolute returns were the North Americanand UK equities, although both lagged their benchmarks and therefore detracted from relativeperformance.

In terms of activity, we lowered the fund’s allocation to European ex UK equities. Despite theEurozone making reasonable progress in recent quarters – with rising wages and consumption, andrevived capital expenditure – these indicators will need to continue growing at a time when Brexitcould put them under pressure. We also reduced the allocation to Japanese equities, wherepersistent yen strength remains a barrier to both economic and corporate earnings growth. Weadded modest new exposure to emerging-market equities and increased existing exposure to FarEast ex Japan equities. These markets should benefit from the recovery in commodity prices andsigns that the Chinese economy may be starting to stabilise. In addition, they are relatively wellinsulated from any Brexit-related risks. In fixed income, we raised the fund’s holdings in globalbonds, gilts and high-yield bonds. With regard to the latter, spreads over government bonds haverisen to attractive levels, more than offsetting any risks that we can envisage.


50


Market Overview

Global bond and equity markets rose over the period, buoyed by easy monetary policy across muchof the world. A weakening pound following the UK’s unexpected vote to leave the EU greatlyamplified returns from overseas assets when considered in sterling terms. Other factors affectingsentiment included market turmoil in China early in 2016 and big swings in the oil price. The USFederal Reserve raised interest rates from their historic lows in December, a move that was widelyexpected and generally well received by investors. For the remainder of the period, however, theFed kept rates on hold, citing sub-target inflation and concerns about the global economy: first inrelation to volatile Chinese markets and, later, the “Brexit” shock. Faced with sluggish growth andinflation, the European Central Bank expanded its stimulus in December and again in March, whilethe Bank of England responded to the Brexit vote with an aggressive suite of easing measures,including a rate cut and corporate-bond purchases. Japan’s central bank, too, adopted an assertivestance, taking interest rates into negative territory. Despite this, Japan has fallen back into deflationand the yen has strengthened, putting pressure on Japanese equities, which lagged their globalpeers over the year.

Outlook

The Managed Cautious Fund adopts a conservative strategy, with investments spread across a rangeof asset classes. At present, the fund retains a slight underweight position in bonds.




51



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


Opening net asset

value per share 172.65 168.39 160.36 103.63 102.15 98.94

Return before



Return after


Distributions (0.50) (1.86) (2.72) (1.42) (1.77) (2.36)



Closing net asset

value per share 194.68** 172.65 168.39 118.37 103.63 102.15


costs of: 0.00 0.00 0.00 0.00 0.00 0.00

Performance

Return after


Other information

Closing net asset

value (£’000) – 1,029 1,287 8,258 6,440 6,963




Prices (p)






52


B Accumulation30/09/16 30/09/15 30/09/14

(p) (p) (p)






Distributions (2.46) (3.04) (3.93)



* after direct transaction costs of : 0.00 0.00 0.00

Performance


Other information





Prices (p)




53



Synthetic Rebates from OngoingOther expense underlying Transaction charge

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








Risk Warning






Performance Information As at 30 September 2016

54




24,078 Threadneedle American Absolute Alpha 552 0.63525,778 Threadneedle American Extended Alpha 1,614 1.84831,444 Threadneedle American Select 2,205 2.51402,184 Threadneedle Asia 796 0.91275,182 Threadneedle Emerging Market Bond 725 0.83313,010 Threadneedle Emerging Market Local 517 0.59

1,055,267 Threadneedle European 2,339 2.66644,716 Threadneedle European Select 1,832 2.0924,835 Threadneedle European Smaller Companies 188 0.21

8,950,074 Threadneedle Global Bond 9,973 11.36162,853 Threadneedle Global Emerging Markets Equity 175 0.20

2,605,973 Threadneedle Global Equity Income 3,383 3.8568,144 Threadneedle Global Opportunities Bond 1,051 1.20

745,717 Threadneedle High Yield Bond 1,233 1.405,123,835 Threadneedle Japan 2,942 3.35

12,694 Threadneedle Lux Asian Equity Income 667 0.7615,732 Threadneedle Lux Global Smaller Companies 442 0.50

4,790,233 Threadneedle Navigator Income Trust 5,566 6.345,231,506 Threadneedle Short Dated Corporate Bond 5,636 6.424,568,141 Threadneedle Sterling 4,560 5.199,934,556 Threadneedle Sterling Bond 12,723 14.493,673,853 Threadneedle UK 4,728 5.38

609,259 Threadneedle UK Absolute Alpha 820 0.931,268,569 Threadneedle UK Corporate Bond Acc 1,478 1.68

176,390 Threadneedle UK Corporate Bond Inc 223 0.254,619,274 Threadneedle UK Equity Income 4,757 5.42

465,743 Threadneedle UK Extended Alpha 2,086 2.382,869,155 Threadneedle UK Fixed Interest 3,996 4.55

182,083 Threadneedle UK Mid 250 438 0.502,050,329 Threadneedle UK Select 2,446 2.791,036,000 Threadneedle UK Select Trust* 1,782 2.03

265,697 Threadneedle UK Smaller Companies 690 0.7985,765 97.68


* Investment Trust.








55


Statement of Change in Net Assets Attributable to Shareholders For the year ended 30 September 2016

01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000


Amounts receivable on issue of Shares 9,703 7,455 Amounts payable on cancellation

of Shares (12,949) (19,573)

(3,246) (12,118)Change in net assets

attributable to Shareholdersfrom investment activities (see above) 10,869 1,512

Retained distributions on accumulation Shares 944 1,276


01/10/15 to 30/09/16 01/10/14 to 30/09/15

Note £’000 £’000 £’000 £’000

Income:Net capital gains 2 10,929 1,545 Revenue 3 1,794 2,297

Expenses 4 (660) (694)

Net revenue before taxation 1,134 1,603 Taxation 5 (154) (214)

Net revenue after taxation 980 1,389




56


30/09/16 30/09/15

Note £’000 £’000 £’000 £’000


Investments 85,765 71,323 Current assets:

Debtors 7 683 1,050 Cash and bank balances 8 1,637 8,088



Liabilities:Investment liabilities – – Creditors:

Distribution payable (55) (63)Other creditors 9 (229) (1,164)

Total creditors (284) (1,227)

Total liabilities (284) (1,227)






01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

The net capital gains during the year comprise:Currency (losses)/gains (25) 3 Non-derivative securities 10,661 1,382 Rebates received from underlying funds 296 166 Transaction charges (3) (6)


3. Revenue

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Bank interest 1 16 Franked dividends from Collective Investment Schemes 600 653 Interest income from Collective Investment Schemes 717 981 Offshore funds dividends 20 – Overseas dividends 72 44 Rebates received from underlying funds 384 603


57



4. Expenses

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


AMC fees 618 661

618 661


Depositary fees 21 13 Safe custody fees 4 4

25 17

Other expensesAudit fees 9 9 Professional fees 6 2 Publication fees 2 4 Regulatory fees – 1

17 16



5. Taxation

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


Corporation tax 154 214


58



5. Taxation (continued)



01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


Net revenue for the year multiplied by the standard rate of corporation tax 227 321

Effects of:Rebated capital expenses deductible for tax purposes 59 33 Revenue not subject to corporation tax (132) (140)




(c) Provision for deferred tax

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

6. Distributions


01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Interim 453 628 Final 585 761 Add: Revenue paid on cancellation of Shares 24 53 Deduct: Revenue received on creation of Shares (22) (20)



Net revenue after taxation 980 1,389 Equalisation on conversion of Shares 1 – Tax relief from capital* 59 33


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

rebates from underlying funds.


59



7. Debtors

30/09/16 30/09/15

£’000 £’000

Accrued revenue 238 222 Amounts due for rebates from underlying funds 187 162 Amounts receivable for creation of shares 227 40 Income tax recoverable 31 73 Sales awaiting settlement – 553

Total debtors 683 1,050


30/09/16 30/09/15

£’000 £’000



9. Other creditors

30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares 65 83 Corporation tax payable 97 189 Purchases awaiting settlement – 820

162 1,092


53 50

Depositary and AgentsDepositary fees 2 1 Safe custody fees 1 3 Transaction charges 1 5

4 9

Other accrued expensesAudit fees 9 9 Professional fees – 1 Publication fees 1 3

10 13


60










Zurich Assurance Ltd 40.90Sterling ISA Managers (Nominees) Limited 34.40

11. Share Classes


%





Share Class A Accumulation 596,143 12,996 (86,840) (522,299) – Share Class B Income 6,214,595 2,114,524 (1,352,722) – 6,976,397 Share Class B Accumulation 39,941,901 3,822,318 (5,978,445) 499,342 38,285,116






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.



61












Subsequent to the year end, the Net Asset Value per Share of the Fund has decreased usingthe Share prices at the year end date compared to 30 December 2016.

B Income Shares have decreased from 119.47p to 118.73p. This takes into account routinetransactions but also reflects the market movements.



16. Fair value disclosure30/09/16 30/09/15

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 – 1,627 –

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly 83,983 – 69,696 –

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

85,765 – 71,323 –

62






Net paid paid


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







Net payable paid


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




63



64



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 last 12 months the Fund has produced an income in line with expectations and an attractivetotal return in what has been a volatile market.

The last 12 months have been dominated by concerns over global growth, the Chinese economy,the United Kingdom’s decision to exit the European Union and, more recently, the US presidentialelection campaign. This has resulted in some fairly aggressive gyrations in asset markets. Afterrebounding in the fourth quarter of 2015 from the summer sell-off, markets turned south again atthe beginning of 2016. Double-digit declines in equity indices and 12-month lows in 10-year USTreasury yields (high prices) at the start of the year were subsequently erased with a strong reboundin risk assets and a rise in yields, after which bond yields fell again (prices rose). This was followedby major gyrations in currency markets with sterling depreciating significantly.

Against this backdrop the Fund was relatively resilient, as the defensive cash-flow-generativebusinesses that it holds were highly valued by investors. There was strong performance fromdefensive consumer stocks such as the Fund’s tobacco holdings, as well as tactical governmentbond positions. Stock selection in more cyclical names, like Applied Materials, Infineon and TSMC,also helped returns.

Within bonds we initiated a tactical position in long-dated US Treasuries at the beginning of 2016as the growth outlook deteriorated and our expectations of further interest-rate rises in the nearterm subsided. We subsequently sold the holding in long-dated UK and US government bonds,reducing the Fund’s overall exposure to bonds given the strong gains and limited prospective returnson offer. After the UK referendum many of the Fund’s infrastructure holdings rose significantly invalue as investors sought out their haven-like cash flows. We used this search for safety as anopportunity to reduce exposure after strong performance. Against this we have been increasingexposure to renewable-energy assets that have similar qualities and, more importantly, sustainableyields, but have not benefited as much from the search for ‘safety’.

Omnis Multi-Asset Income Fund

65



Outlook

The US presidential election campaign has been particularly vitriolic this year and, while thepresidential election has not historically had a huge impact on asset markets, on this occasion webelieve it is worth being cautious. Both candidates have indicated policies that, if followed through,would be particularly negative for some parts of asset markets. With Hillary Clinton’s commentaryon drug and health-care costs a particular concern for health-care companies, and Donald Trump’ssuggestion that America can print its way out of its debt problem a significant worry for holders ofUS Treasuries, there are plenty of reasons for investors to be concerned. On this occasion we believeit is warranted to tread carefully into the end of the year until we have further clarification on whatpolicies are likely to be implemented and what was just election bluster.

With the value of sterling continuing to depreciate there will be an impact on the UK economy ascompanies are forced to increase prices to compensate for higher input costs. Along withgovernment-mandated minimum wage rises over the coming years, we are likely to see at least atemporary rise in inflation expectations, which may be a cause for concern for bond investors giventhe historically low yields on offer.

Against the current backdrop we believe it remains important to focus on being well diversified,ensuring that no one investment characteristic has undue impact on the strategy. Our globalmulti-asset approach gives us the flexibility to reallocate capital from areas that have done well intoareas that may have been more challenging but where we see better prospective returns.

Currently we see little attraction in bond markets in terms of returns or as a buffer againstequity-market volatility; in fact one of our concerns is the rise in correlation between equitymarkets and government bond markets. With quantitative easing and zero interest-rate policiesartificially inflating bond prices, one has to consider the implications this has on historicalbond/equity relationships.

As economic data points remain challenging, we continue to focus on finding assets that remainrobust in an uncertain environment and which are unlikely to deteriorate in an economic downturn.We believe that a focus on companies with solid and repeatable cash flows, sensible capitalallocation, robust balance sheets, and the capacity to pay out sustainable dividends remains anattractive way to generate returns.

Sustainable income is our primary objective, and sticking to our philosophy should help to ensure thatwe can deliver that income as well as providing strong risk-adjusted returns over the longer term.

Investment ManagerBNY Mellon Investment Management EMEA Limited(sub-delegated to Newton Investment Management Limited)14 October 2016

66


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

(p) (p) (p)

Change in net

assets per Share

Opening net asset

value per share 91.80 100.00 94.41**

Return before

operating charges* 19.55 (5.42) 20.02


Return after

operating charges 18.86 (5.97) 19.31

Distributions (4.25) (2.23) (4.37)


on accumulation shares – – 4.37


per share 106.41 91.80 113.72


costs of: 0.13 0.26 0.13

Performance

Return after

operating charges 20.54% (5.97%) 20.45%

Other information

Closing net asset

value (£’000) 80,702 40,576 11,646




Prices (p)



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

launch price of the class.


67



Totalongoing

Other Transaction chargeAMC expenses costs figure

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

30/09/16Share Class A Income 0.60 0.08 0.02 0.70Share Class A Accumulation 0.60 0.08 0.02 0.70

30/09/15Share Class A Income 0.60 0.13 0.23 0.96

The Ongoing Charge Figure (OCF) is the ratio of the Fund’s total disclosable costs (excludingoverdraft interest) to the average net assets of the Fund.




• 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.

Risk Warning



Share Class A 1 2 3 4 5 6 7




68



Bonds 16.56% [19.71%]Australia 1.29% [2.05%]

AUD 1,811,000 Australia Government 3.25% 21/04/2029 1,192 1.29 1,192 1.29

Brazil 0.00% [1.44%]

Cameroon 0.91% [0.00%]USD 985,000 Republic of Cameroon International

Bond 9.5% 19/11/2025 840 0.91 840 0.91

Canada 0.46% [0.58%]CAD 299,000 Detour Gold 5.5% 30/11/2017 238 0.26 CAD 131,000 First Quantum Minerals 6.75% 15/02/2020 93 0.10 CAD 136,000 First Quantum Minerals 7% 15/02/2021 95 0.10

426 0.46

China 0.23% [0.35%]CNY 241,000 Ctrip.com International 1.99% 01/07/2025 210 0.23

210 0.23

Ecuador 0.00% [0.32%]

Germany 0.57% [0.00%]EUR 700,000 Rocket Internet 3% 22/07/2022 526 0.57

526 0.57

Ghana 1.46% [0.00%]USD 1,700,000 Ghana Government International Bond 8.5% 04/10/2017 1,350 1.46

1,350 1.46

Guernsey 0.00% [0.95%]

Jersey 0.00% [0.49%]

Mexico 0.49% [0.44%]MXN 10,933,500 Mexican Bonos 6.5% 09/06/2022 448 0.49

448 0.49

Netherlands 0.38% [0.28%]EUR 8,000 Petrobras Global Finance 6.75% 27/01/2041 5 0.01

EUR 512,000 Petrobras Global Finance 6.875% 20/01/2040 344 0.37 349 0.38

New Zealand 2.45% [3.22%]NZD 3,633,000 New Zealand Local Government

Funding Agency 4.5% 15/04/2027 2,264 2.45 2,264 2.45


69


Norway 0.00% [0.28%]

Peru 0.00% [0.47%]

United Kingdom 5.80% [7.31%]GBP 159,000 Anglian Water Services Financing 4.125% 28/07/2020 299 0.32 GBP 363,000 Arqiva Broadcast Finance 9.5% 31/03/2020 390 0.42 GBP 616,863 Balfour Beatty 9.675% 01/07/2020 716 0.78 GBP 500,000 Balfour Beatty Finance 1.875% 03/12/2018 503 0.54 GBP 532,000 Direct Line Insurance 9.25% 27/04/2042 658 0.71 GBP 147,000 Enterprise Inns 6.5% 06/12/2018 158 0.17 GBP 158,000 Lloyds Bank 13% 19/12/2021 95 0.10 GBP 488,000 Nationwide Building Society 6.875% Perpetual 466 0.50 GBP 105,000 RSA Insurance 9.375% 20/05/2039 123 0.13 GBP 526,000 Scottish Widows 5.5% 16/06/2023 571 0.62 GBP 466,695 Tesco Property Finance 5.744% 13/04/2040 480 0.52 GBP 134,000 Thames Water Utilities Finance 3.375% 21/07/2021 242 0.26 GBP 292,888 Unique Pub Finance 5.659% 30/06/2027 303 0.33 GBP 350,000 Virgin Media Secured Finance 6.25% 28/03/2029 374 0.40

5,378 5.80

United States 2.52% [1.53%]USD 343,000 Frontier Communications 11% 15/09/2025 275 0.30 USD 257,000 Nielsen Finance 5% 15/04/2022 204 0.22 USD 959,000 Sprint 7.125% 15/06/2024 719 0.78 USD 542,000 Sprint Capital 8.75% 15/03/2032 421 0.46 USD 562,000 Sprint Communications 6% 01/12/2016 435 0.47 USD 300,000 Western Digital 10.5% 01/04/2024 268 0.29

2,322 2.52

Equities 80.37% [77.22%]Australia 2.09% [2.03%]

119,839 Dexus Property* 646 0.70 254,103 Insurance Australia 817 0.88 213,110 MYOB 468 0.51

1,931 2.09

Brazil 1.54% [1.26%]120,858 Ambev ADR** 567 0.61 213,588 CCR 857 0.93

1,424 1.54

Denmark 0.81% [0.00%]23,483 DONG Energy 748 0.81

748 0.81

France 0.00% [1.76%]Georgia 1.02% [0.38%#]

75,751 TBC Bank 939 1.02 939 1.02


Portfolio Statement (continued)As at 30 September 2016

70



Germany 5.59% [3.05%]27,237 Hella Kgaa Hueck 831 0.90

139,904 Infineon Technologies 1,918 2.08 776,593 Telefonica Deutschland 2,406 2.61

5,155 5.59

Guernsey 12.48% [10.26%]1,135,637 Bluefield Solar Income*** 1,215 1.32 1,203,144 Doric Nimrod Air Three 1,251 1.35

477,216 Doric Nimrod Air Two Preference Shares 1,036 1.12 763,599 DP Aircraft I 635 0.69

1,039,264 Fair Oaks Income 760 0.82 598,158 HICL Infrastructure*** 1,014 1.10 855,557 International Public Partnerships*** 1,319 1.43 587,424 John Laing Infrastructure*** 757 0.82 648,300 NextEnergy Solar Fund*** 686 0.74

1,728,801 Renewables Infrastructure 1,829 1.98 218,471 Starwood European Real Estate Finance*** 235 0.25 131,029 Volta Finance*** 795 0.86

11,532 12.48

Hong Kong 3.18% [2.12%]322,000 AIA 1,648 1.78 114,500 Link* 647 0.70

1,320,800 Man Wah 652 0.70 2,947 3.18

Ireland 4.01% [1.00%]3,700,000 BNY Mellon Sterling Liquidity Fund 3,700 4.01

3,700 4.01

Israel 1.54% [1.54%]159,596 Bank Hapoalim 696 0.75 20,465 Teva Pharmaceutical Industries ADR** 725 0.79

1,421 1.54

Italy 1.55% [0.00%]73,130 Atlantia 1,429 1.55

1,429 1.55

Japan 1.48% [0.76%]43,600 Japan Tobacco 1,365 1.48

1,365 1.48

Jersey 2.48% [2.24%]1,737,230 GCP Infrastructure*** 2,286 2.48

2,286 2.48


71



Luxembourg 0.96% [1.99%]349,354 B&M European Value Retail 891 0.96

891 0.96

Macao 0.80% [0.80%]221,200 Sands China 739 0.80

739 0.80

Mexico 1.08% [0.99%]296,982 Kimberly-Clark de Mexico SAB 517 0.56 282,700 Wal-Mart Mexico 477 0.52

994 1.08

Netherlands 0.65% [0.95%]18,325 Wolters Kluwer 603 0.65

603 0.65

New Zealand 0.87% [0.74%]396,155 Spark New Zealand 801 0.87

801 0.87

Poland 0.00% [0.40%]

Singapore 1.29% [1.09%]777,200 Cache Logistics* 390 0.42 584,400 Mapletree Greater China Trust* 361 0.39 305,600 Parkway Life Trust* 447 0.48

1,198 1.29

South Africa 0.00% [0.39%]

Sweden 0.52% [1.30%]24,583 Kinnevik 482 0.52

482 0.52

Switzerland 3.98% [4.32%]31,374 Credit Suisse 316 0.3411,981 Novartis 727 0.79 3,361 Roche 643 0.70

33,316 Wolseley 1,451 1.57 2,682 Zurich Insurance 532 0.58

3,669 3.98

Taiwan 1.19% [0.50%]246,000 Pegatron 486 0.53 26,059 Taiwan Semiconductor Manufacturing ADR** 614 0.66

1,100 1.19

Thailand 0.55% [1.43%]1,299,200 Tesco Lotus Retail Growth Freehold & Leasehold 511 0.55

511 0.55


72



United Kingdom 20.49% [22.36%#]

112,037 BAE Systems 587 0.64

14,658 BGEO 426 0.46

854,087 Blackstone GSO Loan Financing*** 717 0.77

30,297 British American Tobacco 1,494 1.62

259,027 Centrica 591 0.64

522,570 Cobham 876 0.95

46,392 Diageo 1,025 1.11

390,130 Dixons Carphone 1,437 1.55

56,287 GlaxoSmithKline 925 1.00

2,273,666 Greencoat UK Wind*** 2,592 2.81

26,961 Hikma Pharmaceuticals 544 0.59

313,451 ICG-Longbow Senior Secured UK Property Debt Investments*** 313 0.34

1,579,633 John Laing Environmental Assets*** 1,611 1.74

11,470 Next 548 0.59

349,726 Old Mutual 707 0.77

61,229 Prudential 836 0.91

62,039 Reed Elsevier 858 0.93

186,475 RPS 322 0.35

39,779 SSE 624 0.68

2,353,547 VPC Specialty Lending*** 1,883 2.04

18,916 20.49

United States 10.22% [13.56%]

17,154 Apple 1,492 1.62

33,814 Applied Materials 784 0.85

35,756 CA 910 0.99

19,141 Citigroup 696 0.75

12,237 John Wiley & Sons 486 0.52

16,242 Las Vegas Sands 719 0.78

20,419 Mattel 476 0.52

20,529 Microsoft 910 0.99

10,013 Paychex 446 0.48

14,670 Principal Financial 582 0.63

6,649 Procter & Gamble 458 0.50

284,187 Samsonite International 698 0.76

8,674 Sysco 327 0.35

9,797 Western Digital 441 0.48

9,425 10.22


73



Forward Currency Contracts (0.21%) [(0.07)%]Bought EUR2,955,825 for USD3,328,554 Settlement 15/12/2016 3 0.00 Bought USD385,307 for AUD513,000 Settlement 14/10/2016 (6) (0.01)Bought USD2,469,824 for HKD19,146,000 Settlement 15/12/2016 0 0.00 Bought USD591,725 for NZD823,000 Settlement 14/10/2016 (5) (0.01)Bought USD442,387 for TWD13,979,000 Settlement 15/12/2016 (3) 0.00 Sold AUD4,820,513 for GBP2,804,628 Settlement 16/11/2016 (30) (0.03)Sold EUR2,888,699 for GBP2,459,742 Settlement 16/11/2016 (42) (0.05)Sold HKD9,074,000 for GBP881,849 Settlement 15/12/2016 (18) (0.02)Sold JPY163,770,486 for GBP1,213,450 Settlement 15/12/2016(34) (0.04)Sold MXN3,727,347 for GBP145,598 Settlement 15/12/2016 (1) 0.00 Sold NZD4,027,382 for GBP2,204,058 Settlement 15/12/2016 (41) (0.04)Sold USD754,569 for GBP568,362 Settlement 15/12/2016 (12) (0.01)

(189) (0.21)

Portfolio of investments 89,322 96.72Net other assets 3,026 3.28

Net assets 92,348 100.00

* Investment Trust.

** American Depositary Receipts.

*** Investment Trusts.

# Since the previous report classification headings have been updated by data providers. Comparative figures have been

updated where appropriate


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


Gross purchases for the year: £62,980,000 [2015: £46,839,000] (See Note 14).

Total sales net of transaction costs for the year: £25,964,000 [2015: £5,119,000] (See Note 14).

.


74


01/10/15 to 30/09/16 03/03/15 to 30/09/15

Note £’000 £’000 £’000 £’000

IncomeNet capital gains/(losses) 2 10,948 (2,338)Revenue 3 3,277 543

Expenses 4 (454) (103)

Net revenue before taxation 2,823 440 Taxation 5 (221) (25)

Net revenue after taxation 2,602 415

Total return before distributions 13,550 (1,923)Distributions 6 (2,966) (498)

Change in net assets attributable to shareholdersfrom investment activities 10,584 (2,421)

01/10/15 to 30/09/16 03/03/15 to 30/09/15

£’000 £’000 £’000 £’000

Opening net assets attributable to shareholders 40,576 –

Amounts receivable on issue of shares 48,794 46,447Amounts payable on cancellation

of Shares (7,906) (3,450)

40,888 42,997Change in net assets

attributable to Shareholdersfrom investment activities (see above) 10,584 (2,421)

Retained distributions onaccumulation Shares 300 –

Closing net assets attributable to shareholders 92,348 40,576



75


30/09/16 30/09/15

Note £’000 £’000 £’000 £’000



Debtors 7 991 803 Cash and bank balances 8 3,267 2,860



Liabilities:Investment liabilities (192) (71)

Creditors:Distribution payable (816) (987)Other creditors 9 (416) (1,404)

Total creditors (1,232) (2,391)

Total liabilities (1,424) (2,462)

Net assets attributable to shareholders 92,348 40,576


76




2. Net capital gains/(losses)

01/10/15 to 03/03/15 to

30/09/16 30/09/15

£000 £000

The net capital gains/(losses) during the year comprise:Currency (losses)/gains (259) 2 Forward currency contracts (1,950) 60 Non-derivative securities 13,173 (2,356)Rebates received from underlying funds – 5 Transaction charges (16) (49)

Net capital gains/(losses) 10,948 (2,338)

3. Revenue

01/10/15 to 03/03/15 to

30/09/16 30/09/15

£000 £000

Bank interest 2 1 Interest from Debt Securities 759 78 Interest income from Collective Investment Schemes 91 21 Offshore funds dividends 237 –Overseas dividends 1,694 336 UK dividends 494 107

Total revenue 3,277 543

4. Expenses

01/10/15 to 03/03/15 to

30/09/16 30/09/15

£000 £000

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

AMC fees 405 75

405 75



32 5

Other expensesAudit fees 9 9 Professional fees 6 12 Publication fees 2 2

17 23




77


5. Taxation


01/10/15 to 03/03/15 to

30/09/16 30/09/15

£000 £000

Corporation tax 144 5 Double tax relief (11) (1)Irrecoverable overseas tax 87 20 Corporation tax: adjustment in respect of prior years 2 –Deferred tax (Note 5 (c)) (1) 1

Total taxation for the year/period (Note 5 (b)) 221 25



01/10/15 to 03/03/15 to

30/09/16 30/09/15

£000 £000

Net revenue before taxation 2,823 440


Effects of:Adjustments in respect of prior years 2 –Capital income subject to taxation – 1 Double taxation relief (11) (1)Irrecoverable overseas tax 87 20 Revenue not subject to corporation tax (422) (83)

Total tax charge for the year/period 221 25



(c) Deferred tax

01/10/15 to 03/03/15 to

30/09/16 30/09/15

£000 £000

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

Provision at the end of the year/period – 1


78


6. Distributions


01/10/15 to 03/03/15 to

30/09/16 30/09/15

£000 £000

Interim 2,238 –Final 932 987 Add: Revenue paid on cancellation of Shares 54 28 Deduct: Revenue received on creation of Shares (258) (517)

Net distribution for the year/period 2,966 498

Reconciliation of net revenue aftertaxation to distributions

Net revenue after taxation 2,602 415 Expenses charged to capital 454 103 Tax relief from capital* (90) (20)

Net distribution for the year/period 2,966 498

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

capital expenses.


7. Debtors

30/09/16 30/09/15

£000 £000

Accrued revenue 454 201 Amounts receivable for creation of shares 480 594 Income tax recoverable 18 4 Overseas withholding tax recoverable 21 –Sales awaiting settlement 18 4



30/09/16 30/09/15

£000 £000




79



9. Other creditors

30/09/16 30/09/15

£000 £000

Amounts payable for cancellation of shares 38 –Corporation tax payable 133 4 Deferred tax payable – 1 Purchases awaiting settlement 184 1,316

355 1,321


45 19

Depositary and AgentsDepositary fees 2 1 Safe custody fees 2 3 Transaction charges 3 49

7 53

Other accrued expensesAudit fees 9 9 Publication fees – 2

9 11






Significant shareholdings



Sterling ISA Managers (Nominees) Limited 65.30FundsDirect Nominees Limited 34.70

11. Share classes


%

Share Class A Income 0.60Share Class A Accumulation 0.60

80


11. Share classes (continued)




Share Class A Income 44,199,147 36,400,002 (4,760,154) – 75,838,995 Share Class AAccumulation – 13,423,449 (3,182,671) – 10,240,778







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

Net foreign currency exposure

30/09/16 30/09/15

Currency £’000 £’000

Australian dollar 119 56Brazilian real 857 401 Danish krone 748 1 Euro 10,188 2,534 Hong Kong dollar 1,584 1,173 Israeli sheqel 697 216 Japanese yen 118 308 Mexican peso 1,304 435 New Zealand dollar 426 238 Peruvian sol – 23 Polish zloty – 26 Swedish krona 484 672 Singapore dollar 1,199 440 South African rand – 157 Swiss franc 2,226 1,176 Taiwan dollar 145 –Thailand baht 511 581 US dollar 17,429 8,847

Total foreign currency exposure 38,035 17,284

Sterling 54,313 23,292

Total net assets 92,348 40,576


81




(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 £3,458,000(2015: decreased by £1,571,000). 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 £4,226,000 (2015: increased by £1,920,000). These calculationsassume all other variables remain constant.


The table below shows the interest rate risk profile at the balance sheet date:

Financial assets

Floating rate Fixed rate not carrying

Currency Assets financial assets financial assets interest Total

£’000 £’000 £’000 £’000

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

Total 3,266 15,305 85,537 104,108

30/09/15Australian dollar – 914 679 1,593 Brazilian real – 585 273 858 Danish krone – – 1 1 Euro 7 – 3,640 3,647 Hong Kong dollar – – 1,611 1,611 Israeli sheqel – – 216 216 Japanese yen – – 308 308Mexican peso – 177 403 580 New Zealand dollar – 1,309 338 1,647 Peruvian sol – 191 2 193 Polish zloty – – 173 173 Swedish krona – – 705 705 Singapore dollar – – 440 440 South African rand – – 157 157Sterling 2,847 3,085 14,212 20,144 Swiss franc – – 1,310 1,310 Thailand baht – – 581 581 US dollar 7 1,735 7,094 8,836

Total 2,861 7,996 32,143 43,000

82



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

Financial

Floating rate Fixed rate liabilities

financial financial not carrying

Currency Liabilities liabilities liabilities interest Total

£’000 £’000 £’000 £’000

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 1,136 Taiwan dollar – – 343 343US dollar – – 246 246

Total – – 11,760 11,760

30/09/15Australian dollar – – 22 22 Brazilian real – – 5 5 Euro – – 82 82 Hong Kong dollar – – 66 66 Mexican peso – – 1 1 New Zealand dollar – – 150 150 Polish zloty – – 1 1 Sterling – – 1,476 1,476 Swedish krona – – 33 33 Swiss franc – – 135 135 US dollar – – 452 452

Total – – 2,423 2,423



01/10/15 to 03/03/15 to

30/09/16 30/09/15

Analysis of total purchase costs £’000 £’000 £’000 £’000

Purchases in the year beforetransaction costs:

Equities 32,722 35,889 Bonds 15,125 10,894 Collective Investment Schemes 15,056 –

62,903 46,783 Commissions – Equities 17 12 Commissions – Collective

Investment Schemes 3 –Taxes – Equities 45 44 Taxes – Collective

Investment Schemes 12 –

Total purchase costs 77 56

Gross purchase total 62,980 46,839


83



14. Portfolio transaction costs (continued)

01/10/15 to 03/03/15 to

30/09/16 30/09/15

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

Gross sales in the yearbefore transaction costs:

Equities 11,907 2,374 Bonds 11,279 2,747 Collective Investment Schemes 2,787 –

25,973 5,121 Commissions - Equities (8) (1)Commissions - Collective

Investment Schemes (1) –Taxes - Equities – (1)

Total sale costs (9) (2)

Total sales net of transactioncosts 25,964 5,119

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.

01/10/15 to 03/03/15 to

30/09/16 30/09/15

Transaction costs as percentage of principal amounts % %

Purchases – CommissionsEquities 0.0520% 0.0334%Bonds 0.0000% 0.0000%Collective Investment Schemes 0.0199% 0.0000%

Purchases – TaxesEquities 0.1375% 0.1226%Bonds 0.0000% 0.0000%Collective Investment Schemes 0.0797% 0.0000%

Sales – CommissionsEquities 0.0672% 0.0421%Bonds 0.0000% 0.0000%Collective Investment Schemes 0.0359% 0.0000%

Sales – TaxesEquities 0.0000% 0.0421%Bonds 0.0000% 0.0000%Collective Investment Schemes 0.0000% 0.0000%

84



01/10/15 to 03/03/15 to

30/09/16 30/09/15

Transaction costs as percentage of average net asset value % %

Commissions 0.0430% 0.0603%

Taxes 0.0845% 0.2089%



Subsequent to the year end, the Net Asset Value per Share of the Fund has increased using

the Share prices at the year end date compared to 30 December 2016.

A Income Shares have increased from 107.29p to 108.50p. This takes into account routine

transactions but also reflects the market movements.

A Accumulation Shares have increased from 113.52p to 115.96p. This takes into account

routine transactions but also reflects the market movements.



30/09/16 30/09/15



Level 1: The unadjusted quotedprice in an active market foridentical assets or liabilities 71,222 – 31,659 –

Level 2: Inputs other than quotedprices included within Level 1that are observable for the assetor liability, either directlyor indirectly 18,292 (192) 7,716 (71)

Level 3: Inputs are unobservable

(ie for which market data is

unavailable) for the asset

or liability – – – –

89,514 (192) 39,375 (71)


85



First Distribution in pence per Share

Group 1 Shares purchased prior to 1 October 2015Group 2 Shares purchased on or after 1 October 2015 to 31 December 2015


Net paid paid


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

Share Class A IncomeGroup 1 0.8618 – 0.8618 n/aGroup 2 0.4365 0.4253 0.8618 n/a

Share Class A AccumulationGroup 1 0.8297 – 0.8297 n/aGroup 2 0.3805 0.4492 0.8297 n/a

Second Distribution in pence per Share

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


Net paid paid


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



Third Distribution in pence per Share

Group 1 Shares purchased prior to 1 April 2016Group 2 Shares purchased on or after 1 April 2016 to 30 June 2016


Net paid paid


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



86

Distribution Table (continued)As at 30 September 2016


Group 1 Shares purchased prior to 1 July 2016Group 2 Shares purchased on or after 1 July 2016 to 30 September 2016


Net payable paid


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

Share Class A IncomeGroup 1 1.0762 – 1.0762 2.2330Group 2 0.6036 0.4726 1.0762 2.2330


Share class A Income launched 2 March 2015 with a first distribution pay date of 30 November 2015. Share class A

Accumulation launched 2 October 2015 with a first distribution pay date of 29 February 2016.


87

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

At the beginning of the period, a weaker yen and continuing Japanese economic growth helped theperformances of Polar Capital Japan and iShares MSCI Japan exchange-traded fund (ETF). Bothfunds use strategies that aim to protect UK investors from the effects of a strong pound. InNovember, we added to iShares MSCI Japan ETF, as well as Henderson UK Absolute Return, inanticipation of the Japanese government continuing its measures aimed at boosting economicgrowth. In December, we invested in RWC Global Emerging Markets, a new fund launched by aUS-based fund management team with analysts in the US and Asia. When markets rallied in thesecond half of February, we took some profits by reducing Vanguard FTSE 100 ETF. We added CRUXEuropean Special Situations, a new European equities fund run by Richard Pease from his newlylaunched investment business. We have supported Richard for many years, and he has establishedan excellent track record both at New Star and, latterly, Henderson.

We moved to a neutral position ahead of the UK’s referendum on membership of the EuropeanUnion (EU) by reducing equities and increasing cash. After the vote, we reduced holdings in Europeand UK-focused funds, including Standard Life UK Equity Unconstrained. Smaller US companiesgenerally performed better than their larger counterparts, which benefited Vanguard USOpportunities, in particular. Strong Asian and emerging markets boosted holdings in RWC GlobalEmerging Markets and Hermes Asia ex Japan.

In August, we reduced Polar Capital Japan, when the value of the yen rose and introduced GoldmanSachs Global Emerging Market Broad Equity to broaden the portfolio’s emerging markets exposure.We funded this acquisition by selling our remaining holding in EV Parametric Emerging Markets andreducing Stewart Investors Asia Pacific Leaders. Marlborough Special Situations was a highlight asUK smaller and medium companies recovered some of their post-EU referendum losses. Funds withmore cautious strategies were the poorest performers, notably Odey Allegra International and JPMorgan US Equity Income. When Asian and emerging markets strengthened in September we addedto Goldman Sachs Global Emerging Markets. European holdings were the laggards, particularlyBlackRock European Dynamic.


88


Market Overview

Interest rates were a key concern throughout the period, as investors kept a close eye on centralbanks for signs of potential interest rate rises. The US Federal Reserve (Fed) led the way by raisinginterest rates in December 2015, but by April, markets were factoring in the possibility of no furtherrate rises from Fed in 2016. In August, the Bank of England announced an interest rate cut of 0.25%.

Global equity markets rallied in October but January saw sharp falls, before they recovered someground. The low oil price continued to be a deflationary factor in the developed world. China madeefforts to stimulate economic growth, but wouldn’t reveal the extent of its slowdown.

Investors were nervous ahead of June’s ‘Brexit’ referendum. Share prices fell sharply after thesurprise majority vote to leave the EU, but most equity markets recovered quite quickly. Sterlingbore the brunt of the uncertainty caused by the referendum outcome, falling dramatically againstthe US dollar and the euro.

Outlook

We are wary of the stock market rally since the EU referendum outcome and believe there is reasonfor caution. We haven’t seen the anticipated correction in stock markets for several reasons. First,investors are adopting a ‘wait and see’ strategy until a clear plan for the UK leaving the EU emerges.Second, investors can’t assess the impact on the UK economy until the data reports for the thirdquarter of 2016 are available. Finally, the longer-term effects of a weakened sterling are about totake effect, and we expect this will be felt through higher prices for consumers and inflated importcosts for manufacturers. With so many unanswered questions, the UK market looks expensive. Asa result, we have looked to sell some of our holdings while markets are rising, and hold cash untilthe picture becomes a little clearer.

We expect further action from the Bank of England and an Autumn Statement from new chancellor,Philip Hammond, to mark a new direction away from austerity. This may provide further short-termsupport for markets. In the meantime, sterling seems to be bearing the brunt of the ‘Brexit’concerns, particularly since Prime Minister Theresa May announced Article 50 will be triggered byMarch 2017, which would start the process of leaving the EU.

With the US in the final throes of its presidential election, the Fed is unlikely to do anything in termsof raising rates until December. No-one is discounting the possibility that presidential candidateDonald Trump could win, but Hillary Clinton still looks the most likely victor. It is very clear themarket will not react favourably to a Trump success.

We remain cautious across our portfolios. Politics and central bank action are dictating the ebb andflow of markets. With no discernible trends emerging, the sensible course of action is to revert toour long-term strategy and let managers of the funds we invest in use their in-depth understandingof their respective markets to maximise investment opportunities.

Investment ManagerOctopus Investments Limited17 October 2016


89



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

Change in net

assets per Share

Opening net asset

value per share 140.78 140.38 133.62 108.72 108.84 103.53

Return before



Return after


Distributions – (0.56) – (0.96) (1.31) (1.01)

Retained distributions on

accumulation shares – 0.56 – – – –


per share 160.11** 140.78 140.38 128.20 108.72 108.84

* after direct transaction costs of : 0.02 0.02 0.03 0.01 0.01 0.02

Performance

Return after


Other information

Closing net asset

value (£’000) – 229 313 2,807 2,753 3,269




Prices (p)






90


B Accumulation30/09/16 30/09/15 30/09/14

(p) (p) (p)






Distributions (1.27) (1.78) (1.35)



* after direct transaction costs of : 0.02 0.02 0.03

Performance


Other information





Prices (p)




91




AMC Other expense underlying Transaction chargeAMC rebate expenses ratio funds costs figure

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

30/09/16Share Class B Income 0.75 0.00 0.05 0.86 (0.20) 0.00 1.46Share Class B Accumulation 0.75 0.00 0.05 0.86 (0.20) 0.00 1.46

30/09/15Share Class A Accumulation 1.75 (0.35) 0.04 0.88 (0.20) 0.01 2.13Share Class B Income 0.75 (0.10) 0.04 0.88 (0.20) 0.01 1.38Share Class B Accumulation 0.75 (0.10) 0.04 0.88 (0.20) 0.01 1.38






Risk Warning







92


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

Collective Investment Schemes 75.39% [72.54%]108,987 Aberdeen Emerging Markets Equity 763 1.08

1,178,438 Ardevora UK Equity 2,574 3.662,673,984 Artemis Global Income 3,019 4.291,602,595 Artemis US Extended Alpha 2,430 3.45

729,758 BlackRock European Dynamic 3,279 4.66832,719 CF Lindsell Train UK Equity 2,720 3.8782,869 Eastspring Japan Dynamic 950 1.35

952,112 FP CRUX European Special Situations 2,255 3.21102,276 Goldman Sachs Emerging Markets Equity Portfolio 1,237 1.76

1,232,433 Henderson UK Absolute Return 1,983 2.821,536,028 Hermes Asia ex-Japan Equity 3,036 4.32

625,973 Invesco Perpetual Corporate Bond 1,397 1.991,235,470 JOHCM Global Select 3,113 4.43

808,082 JPMorgan US Equity Income 1,199 1.701,043,851 Legal & General Pacific Index 1,456 2.07

745,074 M&G Global Dividend 1,872 2.66161,354 Macquarie Asia New Stars 2,395 3.40820,151 Majedie UK Equity 4,096 5.82224,865 Marlborough Special Situations 2,874 4.0915,182 Morgan Stanley Diversified Alpha Plus 417 0.5961,298 Morgan Stanley Global Quality 1,469 2.0937,123 Morgan Stanley US Growth 1,530 2.185,577 Odey Allegra International 1,055 1.50

17,000 RWC Global Emerging Markets 2,564 3.65380,005 Standard Life UK Equity Unconstrained 853 1.2195,431 Stewart Investors Asia Pacific Leaders 603 0.862,724 Vanguard US Opportunities 1,541 2.193,156 Verrazzano Advantage European 344 0.49

53,024 75.39


93


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

Exchange Traded Funds 22.04% [26.03%]22,872 db x-trackers EURO STOXX 50 625 0.892,017 iShares Core GBP Corporate Bond 302 0.43

1,149,442 iShares Core FTSE 100 7,832 11.1415,258 iShares FTSE 250 262 0.376,812 iShares GBP Index-Linked Gilts 126 0.189,969 iShares MSCI AC Far East ex-Japan 351 0.50

28,229 iShares MSCI Emerging Markets 764 1.09267,702 iShares MSCI Japan 2,589 3.6821,122 iShares MSCI Japan GBP Hedged 952 1.3526,462 iShares MSCI World 746 1.069,669 Vanguard FTSE 100 297 0.42

20,713 Vanguard S&P 500 655 0.9315,501 22.04



All investments are Collective Investment Schemes unless otherwise stated.





94


01/10/15 to 30/09/16 01/10/14 to 30/09/15

Note £'000 £'000 £'000 £'000


Expenses 4 (580) (618)

Net revenue before taxation 520 1,003Taxation 5 – –

Net revenue after taxation 520 1,003

Total return before distributions 12,184 2,245Distributions 6 (535) (1,006)


01/10/15 to 30/09/16 01/10/14 to 30/09/15

£'000 £'000 £'000 £'000




(16,557) (23,148)Dilution adjustment 3 21Change in net assets attributable

to Shareholders from investment activities (see above) 11,649 1,239





95


30/09/16 30/09/15

Note £'000 £'000 £'000 £'000

AssetsFixed assets:


Debtors 7 737 332Cash and bank balances 8 1,534 1,101




Distribution payable (21) (20)Other creditors 9 (444) (343)





96





01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

The net capital gains during the year comprise:Currency (losses)/gains (1) 2Derivative contracts – 29Non-derivative securities 11,647 1,197Rebates received from underlying funds 20 18Transaction charges (2) (4)


3. Revenue

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Bank interest 1 3Franked dividends from Collective Investment Schemes 456 587Interest income from Collective Investment Schemes 25 16Offshore funds dividends 491 856Rebates received from underlying funds 125 158Unfranked dividends from Collective Investment Schemes 2 1



97



4. Expenses

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


AMC fees 540 676AMC fee rebate – (90)

540 586



23 17


17 15



5. Taxation

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


Corporation tax – –

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

98






01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Net revenue before taxation 520 1,003


Effects of:Capital income subject to taxation 9 –Movement in excess management expenses 67 83Rebated capital expenses deductible for tax purposes 3 3Revenue not subject to corporation tax (183) (287)

Total tax charge for the 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 £448,907 (2015: £381,948) 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.

99



6. Distributions


01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Interim – 412Final 506 527Add: Revenue paid on cancellation of Shares 30 70Deduct: Revenue received on creation of Shares (1) (3)

Net distribution for the year 535 1,006


Net revenue after taxation 520 1,003Equalisation on conversion of Shares 2 –Tax relief from capital* 13 3

Net distribution for the year 535 1,006




7. Debtors

30/09/16 30/09/15

£’000 £’000

Accrued revenue 6 –Amounts due for rebates from underlying funds 28 26Amounts receivable for creation of shares 2 1Income tax recoverable 1 4Sales awaiting settlement 700 300Prepaid expenses – 1



30/09/16 30/09/15

£’000 £’000



100



9. Other creditors

30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares 88 282Purchases awaiting settlement 300 –

388 282


43 41

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

3 8

Other accrued expensesAudit fees 9 9Publication fees 1 3

10 12









Scottish Equitable Plc 61.10

101



11. Share Classes


%





Share Class A Accumulation 162,905 2,138 (10,501) (154,542) –Share Class B Income 2,532,452 356,467 (699,423) – 2,189,496Share Class B Accumulation 48,223,972 1,057,498 (11,237,603) 144,963 38,188,830






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.







102




01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000

Analysis of total purchase costsPurchases in the year

before transaction costs:Collective Investment Schemes 14,818 20,559

14,818 20,559Commissions – Collective

Investment Schemes 3 4



Analysis of total sale costsGross sales in the year


32,102 43,048Commissions – Collective

Investment Schemes (6) (7)


Total sales net of transaction costs 32,096 43,041


01/10/15 to 01/10/14 to

30/09/16 30/09/15

% %

Transaction costs as percentage of principal amountsPurchases – Commissions

Collective Investment Schemes 0.0202% 0.0195%Purchases – Taxes

Collective Investment Schemes 0.0000% 0.0000%Sales – Commissions

Collective Investment Schemes 0.0187% 0.0163%Sales – Taxes

Collective Investment Schemes 0.0000% 0.0000%

01/10/15 to 01/10/14 to

30/09/16 30/09/15

% %

Transaction costs as percentage of average net asset value

Commissions 0.0125% 0.0123%Taxes 0.0000% 0.0000%


103









30/09/16 30/09/15


£’000 £’000 £’000 £’000

Valuation technique


Level 2: Inputs other than quoted prices included within Level 1that are observable for the asset or liability, either directly or indirectly 53,024 – 54,215 –

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

68,525 – 73,681 –

104





Net paid paid


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







Net payable paid


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





105



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

We took advantage of last October’s equity market rally to reduce Asian investments, includingBlackRock Asia Special Situations, and increased our US holdings by adding to the Vanguard S&P500 exchange-traded fund (ETF). In a busy December, we invested in two new funds. EastspringJapan Dynamic GBP Hedged is a growth fund that complements the investment approach of BaillieGifford Japan. We also invested in RWC Global Emerging Markets, a new fund launched by aUS-based management team with analysts in the US and Asia. When markets rallied in February,we took some profit by reducing Artemis US Extended Alpha following its strong performance. Weadded three new funds in May. We sold our remaining holding in EVI Parametric Emerging Marketsto buy Goldman Sachs Growth & Emerging Markets Equity Portfolio, as we believed its stock pickingapproach better suited the portfolio. We also introduced iShares GBP Index-Linked Gilts ETF andiShares USD High Yield ETF, which we thought would prove beneficial if sterling weakened andinvestors became more risk-averse.

We moved to a neutral position ahead of the UK’s referendum on membership of the EuropeanUnion (EU) by reducing equities and increasing cash. After the vote to leave the EU, sharp recoveryrallies in UK smaller and medium companies helped Standard Life UK Equity Unconstrained andMarlborough Special Situations. But more defensive funds, including Odey Allegra Internationalsuffered. Bond investments gave satisfactory performances, led by iShares iBoxx GBP CorporateBond ETF, which gained on anticipation that the Bank of England might buy corporate debt as partof its post-referendum efforts to support the UK economy.

In August, we favoured emerging markets equities over UK equities by reducing Standard Life UKUnconstrained and adding to RWC Global Emerging Markets. Funds with a more cautious outlookwere the poorest performers, including Ardevora UK Equity and Odey Allegra International. Whileinterest rates remained low, bond investments made good gains, particularly iShares GBP CorporateBond and iShares USD High Yield Corporate Bond. Investment activity in September was limitedand focused on adjusting bonds, notably selling our remaining holding in iShares USD TreasuryBond 7-10yr ETF.


Omnis Multi-Manager Balanced Fund

106

Market Overview

Interest rates were a key concern throughout the period, as investors kept a close eye on centralbanks for signs of potential interest rate rises. The US Federal Reserve (Fed) led the way byraising interest rates in December 2015, but by April, markets were factoring in the possibility of nofurther rate rises from Fed in 2016. In August, the Bank of England announced an interest rate cutof 0.25%.


Investors were nervous ahead of June’s ‘Brexit’ referendum. Share prices fell sharply after thesurprise majority vote to leave the EU, but most equity markets recovered quite quickly. Sterlingbore the brunt of the uncertainty caused by the referendum outcome, falling dramatically againstthe US dollar and the euro.

Outlook

We are wary of the stock market rally since the EU referendum outcome and believe there is reasonfor caution. We haven’t seen the anticipated correction in stock markets, for a number of reasons.First, investors are adopting a ‘wait and see’ strategy until a clear plan for the UK leaving theEU emerges. Second, investors can’t assess the impact on the UK economy until data reports forthe third quarter of 2016 are available. Finally, the longer-term effects of a weakened sterling areyet to take effect, and we expect this will be felt through higher prices for consumers and inflatedimport costs for manufacturers. With so many unanswered questions, the UK market looksexpensive. As a result, we have looked to sell some of our holdings while markets are rising, andhold cash back in our portfolios until the picture becomes a little clearer.




Investment ManagerOctopus Investments Limited 17 October 2016



107



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

Change in net

assets per Share

Opening net asset

value per share 150.17 148.53 140.19 108.96 108.25 102.30

Return before



Return after


Distributions – (0.73) (0.23) (1.11) (1.36) (1.11)


on accumulation shares – 0.73 0.23 – – –


per share 166.01** 150.17 148.53 123.48 108.96 108.25


costs of: 0.03 0.02 0.02 0.03 0.01 0.02

Performance

Return after


Other information

Closing net asset

value (£’000) – 1,012 1,315 5,572 5,545 6,406




Prices (p)






108


B Accumulation30/09/16 30/09/15 30/09/14

(p) (p) (p)






Distributions (1.64) (1.96) (1.59)




Performance


Other information





Prices (p)




109





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








Risk Warning







110



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

Collective Investment Schemes 74.43% [73.57%]3,141,577 Ardevora UK Equity 6,864 3.525,738,341 Artemis US Extended Alpha 8,702 4.47

309,096 Baillie Gifford Japanese 3,910 2.012,515,525 BlackRock Asia Special Situations 3,944 2.021,522,828 BlackRock European Dynamic 6,842 3.512,119,571 CF Lindsell Train UK Equity 6,923 3.55

31,647 DB Platinum IV Systematic Alpha 3,870 1.99105,715 Eastspring Japan Dynamic GBP 1,017 0.52171,066 Eastspring Japan Dynamic USD 1,961 1.01

2,872,410 FP CRUX European Special Situations 6,803 3.49331,827 Goldman Sachs Emerging Markets Equity Portfolio 4,012 2.0664,715 GS Global Strategic Income Bond 6,822 3.50

2,386,760 H20 MultiReturns 2,970 1.523,433,417 Henderson UK Absolute Return 5,524 2.842,237,042 Invesco Perpetual Corporate Bond 4,993 2.564,030,705 JPMorgan US Equity Income 5,982 3.071,570,883 M&G Global Dividend 3,946 2.031,748,051 Majedie UK Equity 8,729 4.48

462,477 Marlborough Special Situations 5,911 3.03279,147 Matthews Asia Pacific Tiger 4,933 2.53121,000 Morgan Stanley Diversified Alpha Plus 3,320 1.7067,570 Muzinich Global Tactical Credit Hedged GBP 6,968 3.5820,912 Odey Allegra International 3,957 2.0331,852 Odey European Absolute Return 2,782 1.4324,926 RWC Global Emerging Markets 3,759 1.93

6,058,365 Standard Life Global Absolute Return Strategies 4,875 2.501,425,507 Standard Life UK Equity Unconstrained 3,199 1.64

10,192 Vanguard US Opportunities 5,764 2.9652,777 Verrazzano Advantage European 5,747 2.95

145,029 74.43

111



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

Exchange Traded Funds 17.62% [20.46%]1,500,000 iShares Core FTSE 100 10,221 5.25

38,500 iShares Core GBP Corporate Bond 5,763 2.9636,000 iShares Global High Yield Corporate Bond 2,640 1.3625,000 iShares MSCI AC Far East ex-Japan 879 0.4540,000 iShares MSCI Emerging Markets 1,082 0.56

165,000 iShares MSCI Europe ex-UK Income 3,916 2.0140,000 iShares MSCI Japan GBP Hedged 1,802 0.9350,000 iShares USD High Yield Corporate Bond 4,038 2.07

125,000 Vanguard S&P 500 3,955 2.03

34,296 17.62







112



01/10/15 to 30/09/16 01/10/14 to 30/09/15

Note £’000 £’000 £’000 £’000


Expenses 4 (1,602) (1,681)

Net revenue before taxation 1,864 2,958Taxation 5 (145) –




01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000


Amounts receivable on issue of Shares 3,744 3,222Amounts payable on cancellation of Shares (46,391) (62,181)

(42,647) (58,959)Dilution adjustment 7 45Change in net assets attributableto Shareholders from investmentactivities (see above) 24,931 4,063Retained distribution onaccumulation Shares 1,743 2,706



113



30/09/16 30/09/15

Note £’000 £’000 £’000 £’000


Investments 179,325 198,185

Current assets:Debtors 7 245 488Cash and bank balances 8 15,739 12,816


Total assets 195,309 211,489

Liabilities:Investment liabilities – –

Creditors:Distribution payable on (43) (36)Other creditors 9 (457) (678)




114






01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

The net capital gains during the year comprise:Currency gains 158 86Non-derivative securities 24,883 3,941Rebates received from underlying funds 73 54Transaction charges (5) (7)


3. Revenue

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Bank interest 7 39Franked dividends from Collective Investment Schemes 910 1,158Interest income from Collective Investment Schemes 253 514Offshore funds dividends 1,910 2,468Rebates received from underlying funds 349 409Unfranked dividends from Collective Investment Schemes 37 51


115



4. Expenses

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


AMC fees 1,518 1,864AMC fee rebate – (250)

1,518 1,614



62 47


22 20



5. Taxation


01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Deferred tax (Note 5 (c)) 145 –

Total taxation for the year (Note 5 (b)) 145 –

116






01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000



Effects of:Capital income subject to taxation 9 –Movement in excess management expenses (26) (4)Rebated capital expenses deductible for tax purposes 15 11Revenue not subject to corporation tax (373) (599)Offshore realised/unrealised gains from capital 147 –

Total tax charge for the year 145 –



(c) Deferred tax

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000



(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 £nil (2015: £26,545) in relation to surplus management expenses. It is unlikelythat the Fund will generate sufficient taxable profits in the future to utilise this amount andtherefore no deferred tax asset has been recognised in the year.

117



6. Distributions


01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Interim 293 1,443Final 1,501 1,332Add: Revenue paid on cancellation of Shares 111 204Deduct: Revenue received on creation of Shares (8) (10)



Net revenue after taxation 1,719 2,958Equalisation on conversion of Shares 7 –Tax relief from capital* 171 11





7. Debtors

30/09/16 30/09/15

£’000 £’000

Accrued revenue 18 17Amounts due for rebates from underlying funds 111 106Amounts receivable for creation of shares – 2Income tax recoverable 115 112Sales awaiting settlement – 250Prepaid expenses 1 1



30/09/16 30/09/15

£’000 £’000



118



9. Other creditors

30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares 175 544Deferred tax payable 145 –

320 544


120 116

Depositary and AgentsDepositary fees 5 4Safe custody fees 1 1 Transaction charges 1 –

7 5


10 13









Scottish Equitable Plc 38.70Zurich Assurance Ltd 34.60

119



11. Share Classes


%





Share Class A Accumulation 674,046 18,684 (93,089) (599,641) –

Share Class B Income 5,089,172 510,334 (1,087,123) – 4,512,383

Share Class B Accumulation 128,829,593 1,908,556 (26,920,936) 563,329 104,380,542













120




01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000



63,532 67,649

Commissions – Collective Investment Schemes 19 15





108,616 120,151

Commissions – CollectiveInvestment Schemes (26) (13)



01/10/15 to 01/10/14 to

30/09/16 30/09/15

% %

Transaction costs as percentage ofprincipal amounts

Purchases – CommissionsCollective Investment Schemes 0.0299% 0.0222%

Purchases – TaxesCollective Investment Schemes 0.0000% 0.0000%

Sales – CommissionsCollective Investment Schemes 0.0239% 0.0108%

Sales – TaxesCollective Investment Schemes 0.0000% 0.0000%

01/10/15 to 01/10/14 to

30/09/16 30/09/15

% %

Transaction costs as percentage ofaverage net asset value



121




Subsequent to the year end, the Net Asset Value per Share of the Fund has increased using theShare prices at the year end date compared to 30 December 2016.





30/09/16 30/09/15



Level 1: The unadjusted quotedprice in an active market for identical assets or liabilities 34,296 – 43,118 –

Level 2: Inputs other than quotedprices included within Level 1that are observable for the assetor liability, either directly or indirectly 145,029 – 155,067 –

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

179,325 – 198,185 –

122





Net paid paid


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







Net payable paid


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





123

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

Investment activity in October was fairly limited at the start of the period as the strength of October’sequity market rally remained in doubt. US and UK equities were strong in November, and thisbenefited Vanguard US Opportunities and Ardevora UK Equity, in particular. But poorly performingemerging market equities negatively affected iShares MSCI Emerging Markets exchange-traded fund(ETF). In December, we switched from JP Morgan Global Convertibles to Oaktree Global Convertibles,which we believed was more suited to our investment strategy. We introduced a new fund in January,CRUX European Special Situations, to increase the portfolio’s exposure to small and medium-sizedEuropean companies. Continuing concerns about Chinese economic growth contributed to a fall iniShares MSCI AC Far East ex-Japan ETF and iShares MSCI Japan GBP Hedged ETF.

Uncertainty in the build-up to the referendum to decide whether the UK should remain in theEuropean Union (EU) caused sterling to weaken against other currencies. We introduced two trackerfunds that don’t rely on currency movements: BCIF Overseas Corporate Bond and BCIF OverseasGovernment Bond. The portfolio’s preference for corporate bonds meant it benefited from theperformance of iShares Global High Yield GBP Hedged ETF, in particular. As concerns increased overthe stability of global growth, and the high level of equity valuations, we reduced equities slightlyand added to NN Alternative Beta. We adopted a more cautious approach in June, believing themarket was complacent in its assessment of the likelihood of a vote for the UK to remain in the EU.

After the ‘Brexit’ referendum, we took some profit from equities that had risen in value and switchedsome corporate bonds to government bonds. The aim was to take advantage of equity marketrallies and to protect the portfolio from the effect of possible dips in bond and equity prices at theend of July. UK bonds were generally stronger than their global counterparts, and this benefitediShares Core UK Gilts ETF, in particular. Eastspring Japan Dynamic GBP Hedged significantlyoutperformed when the Bank of Japan decided not to lower interest rates, as this news boostedbanks and financial services company stocks held by the fund. In September, Vanguard USOpportunities benefited from its focus on smaller companies when US equity markets strengthened.

124



Market Overview

Interest rates were a key concern throughout the period, as investors kept a close eye on centralbanks for signs of potential interest rate rises. The US Federal Reserve (Fed) led the way by raisinginterest rates in December 2015, but by April, markets were factoring in the possibility of no furtherrate rises from Fed in 2016. In August, the Bank of England announced an interest rate cut of 0.25%.


Investors were nervous ahead of June’s referendum. Share prices fell sharply after the surprisemajority vote to leave the EU, but most equity markets recovered quite quickly. Sterling bore thebrunt of the uncertainty caused by the referendum outcome, falling dramatically against the USdollar and the euro.

Outlook

We are wary of the stock market rally since the EU referendum outcome and believe there is reasonfor caution. We haven’t seen the anticipated correction in stock markets for a number of reasons.First, investors are adopting a ‘wait and see’ strategy until a clear plan for the UK leaving the EUemerges. Second, investors can’t assess the impact on the UK economy until the data reports forthe third quarter of 2016 are available. Finally, the longer-term effects of a weakened sterling areyet to take effect, and we expect this will be felt through higher prices for consumers and inflatedimport costs for manufacturers. With so many unanswered questions, the UK market looksexpensive. As a result, we have looked to sell some of our holdings while markets are rising, andhold cash until the picture becomes a little clearer.

We expect further action from the Bank of England and an Autumn Statement from new chancellor,Philip Hammond, to mark a new direction away from austerity. This may provide further short-termsupport for markets. In the meantime, Sterling seems to be bearing the brunt of the ‘Brexit’concerns, particularly since Prime Minister Theresa May announced Article 50 will be triggered byMarch 2017, which would start the process of leaving the EU.




125



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

Change in net

assets per Share

Opening net asset

value per share 153.54 150.21 142.62 106.82 105.43 100.70

Return before



Return after


Distributions – (1.38) (0.96) (1.64) (1.63) (1.40)

Retained distributions on

accumulation shares – 1.38 0.96 – – –


per share 168.07** 153.54 150.21 118.55 106.82 105.43


costs of: 0.07 0.08 0.07 0.05 0.05 0.05

Performance

Return after


Other information

Closing net asset

value (£’000) – 1,260 1,512 6,063 4,995 5,279

Closing number of shares – 820,779 1,006,696 5,114,559 4,675,437 5,007,235



Prices (p)






126



B Accumulation30/09/16 30/09/15 30/09/14

(p) (p) (p)






Distributions (2.48) (2.43) (2.05)




Performance


Other information





Prices (p)



127






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








Risk Warning






128



Collective Investment Schemes 70.37% [72.30%]60,000 Acadian Diversified Alpha Class D 649 0.53

183,382 Acadian Diversified Alpha Class F 1,786 1.462,539,799 Ardevora UK Equity 5,549 4.542,969,032 Artemis US Extended Alpha 4,503 3.683,820,509 BlackRock Overseas Corporate Bond Tracker 5,593 4.587,001,868 BlackRock Overseas Government Bond Tracker 9,368 7.661,275,843 CF Lindsell Train UK Equity 4,168 3.41

4,948 DB Platinum IV Systematic Alpha 605 0.49131,535 Eastspring Japan Dynamic 1,266 1.04

1,319,564 FP CRUX European Special Situations 3,125 2.562,307,674 Hermes Multi Strategy Credit 2,523 2.062,454,165 Invesco Perpetual Corporate Bond 5,477 4.48

10,076 Legal & General Short Dated Sterling Corporate Bond Index 5 0.001,166,657 Majedie UK Equity 5,826 4.77

59,724 Muzinich Global Tactical Credit Hedged GBP 6,159 5.0424,814 Muzinich Long Short Credit Yield 3,198 2.6212,941 NN (L) Alternative Beta 1,266 1.0429,415 Oaktree Global Convertible Bond 3,048 2.49

287,726 PIMCO Global Investment Grade Credit 5,619 4.601,254,522 Royal London Absolute Return Government Bond 1,253 1.024,374,138 Royal London International Government Bond 4,973 4.07

44,124 TwentyFour Corporate Bond Fund 4,844 3.966,060 Vanguard US Opportunities 3,428 2.80

16,484 Verrazzano Advantage European 1,795 1.4786,026 70.37


129




Exchange Traded Funds 26.36% [21.89%]67,076 db x-trackers II Global Sovereign GBP Hedged 1,842 1.5111,879 iShares Core GBP Corporate Bond 1,778 1.45

303,256 iShares Core UK Gilts 4,173 3.41625,663 iShares Core FTSE 100 4,263 3.49101,645 iShares FTSE 250 1,748 1.43167,501 iShares GBP Index-Linked Gilts 3,087 2.5315,696 iShares Global High Yield Corporate Bond 1,151 0.9412,463 iShares Global High Yield Corporate Bond GBP Hedged 1,267 1.0434,880 iShares MSCI AC Far East ex-Japan 1,227 1.0055,795 iShares MSCI Europe ex-UK Income 1,324 1.08

187,966 iShares MSCI Japan 1,818 1.4926,911 iShares USD Treasury Bond 7-10yr 4,284 3.5019,192 Vanguard FTSE 100 589 0.48

116,261 Vanguard S&P 500 3,678 3.0132,229 26.36







130



01/10/15 to 30/09/16 01/10/14 to 30/09/15

Note £’000 £’000 £’000 £’000


Expenses 4 (1,014) (1,076)

Net revenue before taxation 2,054 2,600Taxation 5 (258) (318)



Change in net assets attributable to Shareholders from investment activities 12,826 3,420

01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000




(25,160) (43,745)Dilution adjustment 5 41Change in net assets attributable

to Shareholders from investment activities (see above) 12,826 3,420

Retained distributions on accumulation Shares 1,626 2,052



131



30/09/16 30/09/15

Note £’000 £’000 £’000 £’000



Debtors 7 901 868Cash and bank balances 8 4,191 10,475


Total assets 123,347 136,576


Distribution payable (67) (45)Other creditors 9 (1,032) (3,580)




132





01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

The net capital gains during the year comprise:Currency gains – 74Non-derivative securities 12,824 3,329Rebates received from underlying funds 14 31Transaction charges (5) (8)


3. Revenue

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Bank interest 4 19Franked dividends from Collective Investment Schemes 229 290Interest income from Collective Investment Schemes 641 1,133Offshore funds dividends 2,036 2,044Rebates received from underlying funds 158 190


4. Expenses

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


AMC fees 956 1,187AMC fee rebate – (160)

956 1,027



39 30

Other expensesAudit fees 9 9HMRC interest – 2Professional fees 8 3Publication fees 2 5

19 19




133



5. Taxation

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


Adjustments in respect of prior periods – (2)Corporation tax 258 320




01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000



Effects of:Adjustments in respect of prior periods – (2)Rebated capital expenses deductible for tax purposes 3 6Revenue not subject to corporation tax (156) (206)






134



6. Distributions


01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Interim 379 956Final 1,332 1,172Add: Revenue paid on cancellation of Shares 108 167Deduct: Revenue received on creation of Shares (16) (7)



Net revenue after taxation 1,796 2,282Equalisation on conversion of Shares 4 –Tax relief from capital* 3 6


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

from underlying funds. Details of the distributions per Share are set out in the distribution tables on page 139.

7. Debtors

30/09/16 30/09/15

£’000 £’000

Accrued revenue 35 89Amounts due for rebates from underlying funds 29 77Dilution adjustment receivable 1 1Income tax recoverable 84 99Sales awaiting settlement 751 601Prepaid expenses 1 1



30/09/16 30/09/15

£’000 £’000



135



9. Other creditors

30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares 142 209Corporation tax payable 197 221Purchases awaiting settlement 602 3,051

941 3,481


75 73

Depositary and AgentsDepositary fees 3 3Safe custody fees 1 5Transaction charges 1 5

5 13


11 13

Total other creditors 1,032 3,580








Zurich Assurance Ltd 49.20

136



11. Share Classes


%





Share Class A Accumulation 820,779 754 (229,524) (592,009) –Share Class B Income 4,675,437 1,829,667 (1,390,545) – 5,114,559Share Class B Accumulation 78,821,589 1,409,066 (16,565,107) 561,702 64,227,250







The Fund holds an insignificant foreign currency exposure at 30 September 2016 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.





137




01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000



107,117 133,474 Commissions – Collective






128,466 169,935 Commissions – Collective




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


01/10/15 to 01/10/14 to

30/09/16 30/09/15

% %

Transaction costs as percentage of principal amounts

Purchases – CommissionsCollective Investment Schemes 0.0233% 0.0292%

Purchases – TaxesCollective Investment Schemes 0.0000% 0.0000%

Sales – CommissionsCollective Investment Schemes 0.0210% 0.0229%

Sales – TaxesCollective Investment Schemes 0.0000% 0.0000%

138




01/10/15 to 01/10/14 to

30/09/16 30/09/15

% %






B Income Shares have decreased from 119.97p to 119.43p. This takes into account routinetransactions but also reflects the market movements.




30/09/16 30/09/15


£’000 £’000 £’000 £’000

Valuation technique




118,255 – 125,233 –

139






Net paid paid


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







Net payable paid


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




140

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

At the start of the period we reduced holdings in a number of equity funds after markets rose,including SPDR UK Dividend Aristocrats. We made a new investment in P2P Global Investments,which aims to offer a strong yield for investors from consumer loans made through peer-to-peerlending. In November, poor performances from TwentyFour Income and F&C Commercial Propertydragged on returns, but gains made by P2P Global Investments and iShares USD Emerging Marketsexchange-traded fund (ETF) helped to offset losses. In December, iShares FTSE UK Dividend PlusETF suffered as oil and commodity prices fell over concerns about Chinese and global economicgrowth. We added a new fund, Henderson Strategic Bond, which is managed by a small team atHenderson that invests in high-yield and government bonds.

When sterling weakened compared to the US dollar and euro in February, the portfolio’s non-UKinvestments drove the positive return, led by M&G Global Dividend and Artemis Global Income. Theportfolio benefited from recoveries in P2P Global Investments, as well as investment trusts 3iInfrastructure, HICL Infrastructure and F&C Commercial Property. Investment trusts that hadperformed well in April later lost many of their gains, but these losses were partially offset by gainsin Fidelity Enhanced Income and Artemis Income due to strong stock selection.

In July, we switched iShares Emerging Markets Local Government Bond ETF to iShares USD BondETF to reduce exposure to emerging market risk. We also reduced iShares USD High Yield ETF andre-introduced iShares Euro High Yield ETF to diversify the portfolio’s exposure to currency risk. F&CCommercial Property was a highlight, having regained most of the losses if suffered when theproperty sector slumped in the aftermath of the referendum to decide whether the UK should remainin the European Union (EU).

In August, we added to iShares GBP Corporate Bond, in anticipation that the Bank of England’sprogramme to purchase corporate bonds would have a positive impact. The best-performing equityfund was JOCHM UK Equity Income, which focuses on small and medium companies. Activity inSeptember concentrated on adjusting the portfolio’s bond holdings, which included selling iSharesUSD High Yield ETF and introducing iShares Global High Yield ETF.


141


Market Overview

Interest rates were a key concern throughout the period, as investors kept a close eye on centralbanks for signs of potential interest rate rises. The US Federal Reserve (Fed) led the way by raisinginterest rates in December 2015, but by April, markets were factoring in the possibility of no furtherrate rises from Fed in 2016. In August, the Bank of England announced an interest rate cutof 0.25%.


Investors were nervous ahead of June’s EU referendum. Share prices fell sharply after the surprisemajority vote to leave the EU, but most equity markets recovered quite quickly. Sterling bore thebrunt of the uncertainty caused by the referendum outcome, falling dramatically against theUS dollar and the euro.

Outlook

We are wary of the stock market rally since the EU referendum outcome and believe there is reasonfor caution. We haven’t seen the anticipated correction in stock markets for a number of reasons.First, investors are adopting a ‘wait and see’ strategy until a clear plan for the UK leaving the EUemerges. Second, investors can’t assess the impact on the UK economy until the data reports forthe third quarter of 2016 are available. Finally, the longer-term effects of a weakened Sterling areyet to take effect, and we expect this will be felt through higher prices for consumers and inflatedimport costs for manufacturers. With so many unanswered questions, the UK market looksexpensive. As a result, we have looked to sell some of our holdings while markets are rising, andhold cash until the picture becomes a little clearer.






142


A Income A Accumulation30/09/16 30/09/15 30/09/14 30/09/16 30/09/15 30/09/14

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

Change in net

assets per Share

Opening net asset

value per share 128.90 134.59 132.66 170.84 170.80 161.05

Return before



Return after


Distributions (4.20) (5.88) (5.92) (5.35) (7.61) (7.28)


on accumulation shares – – – 5.35 7.61 7.28


per share 133.27** 128.90 134.59 182.44** 170.84 170.80


costs of : 0.09 0.08 0.05 0.12 0.10 0.07

Performance

Return after

operating charges 6.65%** 0.14% 5.92% 6.79%** 0.02% 6.05%

Other information

Closing net asset

value (£’000) – 381 551 – 1,140 1,444

Closing number of shares – 295,646 409,445 – 667,249 845,248



Prices (p)



** Share classes A Income and A Accumulation closed on 5 August 2016. The closing net asset value per share and return

after operating charges figures shown above are calculated to the closure date.


143


B Income B Accumulation30/09/16 30/09/15 30/09/14 30/09/16 30/09/15 30/09/14

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

Change in net

assets per Share

Opening net asset

value per share 137.61 142.85 139.84 175.84 174.74 163.79

Return before



Return after


Distributions (6.29) (6.24) (6.26) (8.18) (7.82) (7.43)


on accumulation shares – – – 8.18 7.82 7.43

Closing net asset

value per share 143.73 137.61 142.85 192.06 175.84 174.74

* after direct

transaction costs of : 0.10 0.08 0.06 0.13 0.10 0.07

Performance

Return after

operating charges 9.02% 0.70% 6.63% 9.22% 0.63% 6.69%

Other information

Closing net

asset value (£’000) 23,929 23,840 22,044 12,738 13,283 12,286

Closing number

of shares 16,648,189 17,324,765 15,431,220 6,632,350 7,553,611 7,030,788



Prices (p)




144



Synthetic Rebates from OngoingAMC Other expense underlying Transaction charge

AMC rebate expenses ratio funds costs figureDate (%) (%) (%) (%) (%) (%) (%)

30/09/16

Share Class B Income 0.75 0.00 0.08 0.61 (0.15) 0.01 1.30

Share Class B Accumulation 0.75 0.00 0.08 0.61 (0.15) 0.01 1.30

30/09/15

Share Class A Income 1.75 (0.35) 0.06 0.59 (0.09) 0.01 1.97

Share Class A Accumulation 1.75 (0.35) 0.06 0.59 (0.09) 0.01 1.97

Share Class B Income 0.75 (0.10) 0.06 0.59 (0.09) 0.01 1.22

Share Class B Accumulation 0.75 (0.10) 0.06 0.59 (0.09) 0.01 1.22






Risk Warning







145


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

Collective Investment Schemes 71.92% [66.53%]600,000 3i Infrastructure* 1,159 3.16

1,267,354 Artemis Global Income 1,114 3.04645,841 Artemis Income 1,482 4.04885,001 BlackRock Continental European Income 1,240 3.38

1,075,000 F&C Commercial Property Trust* 1,322 3.611,070,045 Fidelity Enhanced Income 1,292 3.521,196,227 Fidelity MoneyBuilder Income 1,539 4.201,685,552 Henderson Strategic Bond 1,758 4.80

625,000 HICL Infrastructure* 1,060 2.89718,387 Invesco Perpetual Corporate Bond 1,603 4.37851,996 JOHCM UK Equity Income 1,523 4.15741,210 Legg Mason IF Brandywine Global Income Optimiser 811 2.21597,579 M&G Global Dividend 1,152 3.14981,896 Majedie UK Income 1,440 3.93115,000 P2P Global Investments* 963 2.63178,971 PIMCO Income 1,877 5.1216,036 RWC Enhanced Income 1,381 3.77

459,641 Schroder Asian Income 1,156 3.153,001,681 Schroder Income Maximiser 1,290 3.521,075,000 TwentyFour Income* 1,204 3.29

26,366 71.92 Exchange Traded Funds 19.24% [21.07%]

3,000 db x-trackers II Sterling Cash 551 1.504,000 iShares Core GBP Corporate Bond 599 1.638,000 iShares Euro High Yield Corporate Bond 722 1.97

182,500 iShares UK Dividend Plus 1,635 4.4618,000 iShares Global High Yield Corporate Bond 1,320 3.604,000 iShares Global High Yield Corporate Bond GBP Hedged 407 1.117,500 iShares JPMorgan USD Emerging Markets Bond 667 1.823,500 iShares USD High Yield Corporate Bond 283 0.77

70,000 SPDR S&P UK Dividend Aristocrats 874 2.38

7,058 19.24


* Investment Trusts.







146


01/10/15 to 30/09/16 01/10/14 to 30/09/15

Note £’000 £’000 £’000 £’000

Income:Net capital gains/(losses) 2 1,832 (1,294) Revenue 3 1,898 1,910

Expenses 4 (328) (301)

Net revenue before taxation 1,570 1,609 Taxation 5 (123) (120)


Total return before distributions 3,279 195 Distributions 6 (1,718) (1,736)

Change in net assets attributable to Shareholdersfrom investment activities 1,561 (1,541)

01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000

Opening net assets attributable to shareholders 38,644 36,324

Amounts receivable on issue of Shares 5,787 9,578 Amounts payable on cancellation of Shares (9,914) (6,393)

(4,127) 3,185 Dilution adjustment 1 9 Change in net assets attributable

to Shareholders from investment activities (see above) 1,561 (1,541)


Closing net assets attributable to shareholders 36,667 38,644



147


30/09/16 30/09/15

Note £’000 £’000 £’000 £’000



Debtors 7 893 239 Cash and bank balances 8 3,689 5,917




Distribution payable (315) (333)Other creditors 9 (1,024) (1,032)





148




2. Net capital gains/(losses)

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

The net capital gains/(losses) during the year comprise:Currency losses (1) (1)Non-derivative securities 1,798 (1,317)Rebates received from underlying funds 38 29 Transaction charges (3) (5)

Net capital gains/(losses) 1,832 (1,294)

3. Revenue

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Bank interest 2 12 Franked dividends from Collective Investment Schemes 561 496 Interest income from Collective Investment Schemes 283 230 Offshore funds dividends 722 735 Overseas dividends 242 246 Rebates received from underlying funds 19 8 UK dividends – 35 Unfranked dividends from Collective Investment Schemes 69 148



4. Expenses

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


AMC fees 298 321 AMC fee rebate – (45)

298 276



12 8

Other expensesAudit fees 9 9 Professional fees 6 2 Publication fees 3 6

18 17



5. Taxation

01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000


Adjustments in respect of prior periods – (1)Corporation tax 125 125 Double tax relief – (2)Irrecoverable overseas tax – 2 Deferred tax (Note 5 (c)) (2) (4)


149






01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000



Effects of:Adjustments in respect of prior periods – (1)Capital income subject to taxation – 6 Double taxation relief – (2)Irrecoverable overseas tax – 2 Rebated capital expenses deductible for tax purposes 8 - Revenue not subject to corporation tax (199) (207)






01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

Provision at start of the year 4 8 Deferred tax charge in the year (2) (4)

Provision at the end of the year 2 4

150



6. Distributions


01/10/15 to 01/10/14 to

30/09/16 30/09/15

£’000 £’000

First interim 387 385 Second interim 423 411 Third interim 387 412 Final 493 538 Add: Revenue paid on cancellation of Shares 71 50 Deduct: Revenue received on creation of Shares (43) (60)



Net revenue after taxation 1,447 1,489 Equalisation on conversion of Shares 1 –Expenses charged to capital 328 301 Tax relief from capital* (58) (54)


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

expenses and rebates from underlying funds.


7. Debtors

30/09/16 30/09/15

£’000 £’000

Accrued revenue 98 154 Amounts due for rebates from underlying funds 14 19 Amounts receivable for creation of shares – 7 Income tax recoverable 48 59 Sales awaiting settlement 733 –



30/09/16 30/09/15

£’000 £’000



151



9. Other creditors

30/09/16 30/09/15

£’000 £’000

Amounts payable for cancellation of shares 181 212 Corporation tax payable 111 123 Deferred tax payable 2 4 Dilution adjustment payable 1 1 Purchases awaiting settlement 693 651

988 991


23 22

Depositary and AgentsDepositary fees 1 1 Safe custody fees – 1 Transaction charges 1 4

2 6

Other accrued expensesAudit fees 9 9 Professional fees – 1 Publication fees 2 3

11 13

Total other creditors 1,024 1,032








Sterling ISA Managers (Nominees) Limited 42.60FundsDirect Nominees Limited 33.10

152



11. Share Classes


%

Share Class A Income 1.75Share Class A Accumulation 1.75Share Class B Income 0.75Share Class B Accumulation 0.75




Share Class A Income 295,646 84 (34,624) (261,106) –Share Class A Accumulation 667,249 1,155 (25,280) (643,124) –Share Class B Income 17,324,765 3,404,278 (4,323,599) 242,745 16,648,189 Share Class B Accumulation 7,553,611 609,894 (2,151,816) 620,661 6,632,350









153






The table below shows the interest rate risk profile at the balance sheet date:

Financial assets

Floating rate Fixed rate not carrying

Currency Assets financial assets financial assets interest Total

£’000 £’000 £’000 £’000

30/09/16Euro 29 – – 29Sterling 3,622 – 34,317 37,939US dollar 38 – – 38

Total 3,689 – 34,317 38,006

30/09/15Sterling 5,915 – 34,092 40,007US dollar 2 – – 2

Total 5,917 - 34,092 40,009

Financial

Floating rate Fixed rate liabilities

financial financial not carrying

Currency Assets liabilities liabilities interest Total

£’000 £’000 £’000 £’000

30/09/16Sterling – – 1,339 1,339

Total – – 1,339 1,339

30/09/15Sterling – – 1,365 1,365

Total – – 1,365 1,365


154



155



01/10/15 to 30/09/16 01/10/14 to 30/09/15

£’000 £’000 £’000 £’000



24,777 27,566 Commissions - Collective

Investment Schemes 10 12 Taxes - Collective






27,082 23,745 Commissions - Collective




01/10/15 to 01/10/14 to

30/09/16 30/09/15

% %

Transaction costs as percentage of principal amounts

Purchases - CommissionsCollective Investment Schemes 0.0404% 0.0435%

Purchases - TaxesCollective Investment Schemes 0.0242% 0.0036%

Sales - CommissionsCollective Investment Schemes 0.0406% 0.0421%

Sales - TaxesCollective Investment Schemes 0.0000% 0.0000%

01/10/15 to 01/10/14 to

30/09/16 30/09/15

% %











30/09/16 30/09/15


£’000 £’000 £’000 £’000

Valuation technique




33,424 – 33,853 –

156



First Distribution in pence per Share

Group 1 Shares purchased prior to 1 October 2015Group 2 Shares purchased on or after 1 October 2015 to 31 December 2015


Net paid paid


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





Second Distribution in pence per share

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


Net paid paid


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





157



Third Distribution in pence per share

Group 1 Shares purchased prior to 1 April 2016Group 2 Shares purchased on or after 1 April 2016 to 30 June 2016


Net paid paid


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






Group 1 Shares purchased prior to 1 July 2016Group 2 Shares purchased on or after 1 July 2016 to 30 September 2016


Net payable paid


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



Share classes A Income and A Accumulation closed on 5 August 2016.

158


Distribution Table (continued)As at 30 September 2016

159


Classes of Shares

The Company can issue different Classes of Shares in respect of any Fund. Holders of Income Shares

are entitled to be paid the revenue attributable to such Shares, in respect of each annual or interim

accounting period. Holders of Accumulation Shares are not entitled to be paid the revenue

attributable to such Shares, but that revenue is retained and accumulated for the benefit of

shareholders 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 a

business day in London). Valuations may be made at other times under the terms contained within

the Prospectus.

Buying and Selling of Shares

The ACD will accept orders to deal in the shares on normal business days between 9:00 am and

5:00 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 business

on 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 can

also be obtained by telephoning the Administrator on 0345 140 0070* during the ACD’s normal

business hours.

Significant Information

• Closure of A Share Class on Omnis Multi-Manager Adventurous Fund, Omnis Multi-Manager

Balanced Fund, Omnis Multi-Manager Cautious Fund, Omnis Multi-Manager Distribution Fund,

Omnis Managed Adventurous Fund, Omnis Managed Balanced Fund & Omnis Managed

Cautious Fund.

• Opening of A Accumulation Class in Omnis Multi Asset Income Fund.

Other Information

The Instrument of Incorporation, Prospectus and the most recent interim and annual reports may

be inspected at the office of the ACD which is also the Head Office of the Company and copies may

be 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 the

ACD or the Depositary in the first instance. In the event that a shareholder finds the response

unsatisfactory they may make their complaint direct to the Financial Ombudsman Service at

Exchange 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 accounting

period 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

General Information

160


General Information (continued)

Distribution Payment Dates

Interim – 31 May (for Omnis Multi-Manager Distribution Fund and Omnis Multi Asset

Income Fund only - 31 May, 31 August and 28 February)

Final – 30 November

Data Protection

The details you have provided will be held electronically by the Funds’ Registrar but will not be used

for 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 between

Funds 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 long

term investment. Investors should be aware that the price of shares and the income from them

may fall as well as rise and investors may not receive back the full amount invested. Past

performance is not a guide to future performance. Investments denominated in currencies other

than the base currency of a fund are subject to fluctuation in exchange rates, which may be

favourable or unfavourable.

Remuneration

In line with the requirements of the Undertakings for Collective Investments in Transferable

Securities (UCITS) V, the UCITS Manager is subject to a remuneration policy which is consistent

with the principles outlined in SYSC19E of the FCA Handbook (UCITS Remuneration Code).

The remuneration policy is designed to ensure that any relevant conflicts of interest can be managed

appropriately at all times and that the remuneration of staff is in line with the risk policies and

objectives of the UCITS it manages. The Remuneration policy is available upon request from the

ACD.

Implementation of the UCITS Remuneration Code remains ongoing and will apply in full for the first

time for the financial year ended 31 December 2017.

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