Half-yearly Report

City Merchants High Yield Trust Limited

Half-Yearly Financial Report for the Six Months to 30 June 2015

Key Facts

City Merchants High Yield Trust Limited is a Jersey incorporated investment company listed on the London Stock Exchange. The Company commenced trading on 2 April 2012 as a successor company to City Merchants High Yield Trust plc.

Investment Objective

The Company’s investment objective is to seek to obtain both high income and capital growth from investment, predominantly in high-yielding fixed-interest securities.

Investment Policy

The Company seeks to provide a high level of dividend income relative to prevailing interest rates mainly through investment in bonds and other fixed-interest securities. The Company also invests in equities and other equity-like investments consistent with the overall objective.

Performance Statistics

	FOR SIX MONTHS TO 30 JUN 2015	YEAR ENDED 31 DEC 2014
Total Return
Net asset value	+2.9%	+5.0%
Share price*	+1.5%	+8.5%
Dividend for the period/year	5p	10p

Period End Information

	AT 30 JUN 2015	At 31 DEC 2014
Net asset value per share	183.71p	183.40p
Share price*	187.00p	189.25p
Premium per share	1.8%	3.2%
Gearing
Gross gearing	nil	nil
Net cash	6.3%	6.5%

* Source: Thomson Reuters Datastream.

.

INTERIM MANAGEMENT REPORT INCORPORATING THE CHAIRMAN'S STATEMENT

Chairman’s Statement

I am pleased to report that the Company has continued to perform satisfactorily through the first half of 2015.

In the six months to 30 June 2015, the net asset value (‘NAV’) total return was +2.9% which compares favourably with the average return of +2.15% from the funds in the Investment Association Sterling Strategic Bond sector.

In addition, the Company continues to produce an attractive level of income for shareholders, the first and second interim dividends for this year, each of 2.5p, remain in line with our target of matching last year’s total dividends.

The Manager’s Investment Report provides some background on how this was achieved and how the portfolio is positioned.

In the last annual report I remarked that demand for the Company’s shares in 2014 had been strong and as a result the Company’s shares had traded at a premium to NAV. This has continued in the six months to 30 June 2015 and allowed the Company to issue another 3,250,000 shares to satisfy demand. The average price of these issues was 188.99p per share. Altogether, this represents £6.1 million of capital raised in the first half of this year and has enhanced net assets by approximately £22,000, after costs. A further 700,000 shares have been issued to the date of this report.

The Board believes the portfolio remains well-positioned to continue to provide an attractive level of income for shareholders with some limited potential for capital appreciation.

Clive Nicholson

Chairman

19 August 2015

Manager’s Investment Report

Market Background

The European high yield bond market delivered positive returns in the first half of the year as the sector’s relatively high level of income offset a negative capital return.

At the start of the year the ECB’s decision to implement QE dominated market sentiment. Although it was widely expected, the scale of the programme announced exceeded the market’s expectations and bonds rallied strongly as a result. Returns in the high yield sector, which tend to be positively correlated to economic growth, were further boosted by signs of improvement in the Eurozone economy.

After rallying in anticipation of QE, the actual start of the programme in March saw high yield bond prices come under pressure from profit taking, with yields across the sector rising. The biggest impact on performance however came from the sharp rise in German Bund yields. From 20 April through to 30 June 2015 the yield on the ten year Bund rose by over 75bps. Although interest rate sensitivity is typically more associated with investment grade bonds the extent of the move, coupled with very low yields and longer maturities in the high yield sector, heightened its impact.

Rumbling on in the background over the six month period were the Greek government’s attempts to renegotiate the terms of its bailout. At times these negotiations were extremely acrimonious with widespread talk of Greece leaving the Eurozone. Despite the huge political significance the impact on financial markets outside of Greece has been, so far at least, muted, with very little sign of the contagion that affected markets in 2011/12. That said, the uncertainty did have a negative impact on overall sentiment, adding to selling pressure on high yield bonds, particularly through June.

According to data from Merrill Lynch, the total return for European high yield bonds in the first half of 2015 was 2.4% (in sterling hedged terms). The aggregate yield for the sector rose 27bps to 5.15%. By comparison, sterling investment grade bonds returned –1.0% and Gilts returned –1.4%.

High yield issuance has reflected the changing dynamic of the market. Through to the end of March, issuance was very strong with Barclays estimating €38 billion of issuance, a 54% year–on–year increase. However, for the next three months, as yields rose issuance dropped off, with year to date total supply across all currencies by 30 June of €61.6 billion, a 15% year–on–year fall.

Portfolio Strategy

The NAV of the Company ended June 2015 at 183.71p, up from 183.4p at the close of 2014. The Company paid a total dividend of 5p over the period. The NAV total return for the period was 2.9%.

Overall we are defensive with a relatively high allocation to cash. This defensive position helps to offset the credit risk in the portfolio while also enabling us to quickly exploit any investment opportunities which arise in periods of market stress. The portfolio holds a core of high yield corporate bonds, focused on seasoned issuers that we consider to be default-remote. In addition, we have significant exposure to areas of the market which we believe still offer relatively attractive yield. Approximately one fifth of the portfolio is invested in bank capital, predominantly in the subordinated debt of large European banks. Banks have come a long way since the financial crisis in repairing their balance sheets. This has been highlighted both by the successful stress tests late last year and the way the banking sector as a whole held up during the recent Greek crisis. In our view this sector continues to pay a relatively attractive level of income for the risk. Elsewhere we also have holdings in hybrid capital instruments, across sectors including telecoms and utilities. We believe the subordination risk of these more junior debt instruments is attractive in the context of the companies’ relatively strong balance sheets.

Outlook

We remain cautious in our outlook and retain an overall defensive stance in the portfolio. While default rates are low and likely to remain low for the next couple of years, the enhanced returns potentially available for taking a high level of credit risk is poor. That said there are pockets of value, particularly within the financial sector and corporate hybrids. The periodic bouts of volatility we are seeing are presenting some opportunities but these are limited and, in our view, it remains very important to be selective. In this low yield environment we remain focused on seeking to deliver an attractive level of income.

Paul Read  Paul Causer      Rhys Davies

Portfolio Managers              Deputy Portfolio Manager

19 August 2015

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk factors relating to the Company can be summarised as follows:

–   Investment Objective – there is no guarantee that the Company’s investment objective will be achieved or will provide the returns sought by the Company.

–   Investment Risk – material changes affecting global capital markets may have a negative effect on the Company’s business, financial condition and results of operations. The poor performance of any individual portfolio investment has a negative effect on the value of the portfolio and consequently the Net Asset Value (NAV) per share. A majority of the portfolio comprises high–yield fixed-interest securities – these are subject to credit, interest rate, liquidity and duration risks, and a significant proportion of these are non–investment grade securities.

–   Foreign Exchange Risk – the movement of exchange rates may have unfavourable or favourable impact on returns as the majority of the assets are non-sterling.

–   Derivatives – the Company may enter into derivative transactions for efficient portfolio management. Derivative instruments can be highly volatile and expose investors to a high risk of loss.

–   Dividends – the ability of the Company to pay dividends is dependent on the level of income generated from the portfolio.

–   Ordinary Shares and Discount – the shares may trade at a discount to NAV and shareholders may be unable to realise their investment through the secondary market at NAV. The existence of a liquid market in the shares cannot be guaranteed.

–   Gearing of Returns through Borrowings – performance may be geared by means of the Company’s credit facility. Whilst gearing will be used with the aim of enhancing returns on the portfolio when the value of the Company’s assets is rising, it will have the opposite effect when the value is falling. There is no guarantee that any credit facility would be renewable at maturity on terms acceptable to the Company.

–   Operational Risk, including Reliance on Third Party Providers – failure by any service provider to carry out its obligations in accordance with the terms of its appointment could have a materially detrimental impact on the effective operation of the Company and on the ability of the Company to pursue its investment policy successfully.

–   Regulatory and Tax Related – whilst compliance with rules and regulations is closely monitored, breaches could affect returns to shareholders. Changes to regulation or to the Company’s tax status or tax treatment might adversely affect the Company.

In the view of the Board, these principal risks and uncertainties are as applicable to the remaining six months of the financial year as they were to the period under review.

RELATED PARTIES AND TRANSACTIONS WITH THE MANAGER

Note 22 of the 2014 annual financial report gives details of related party transactions and transactions with the Manager. The basis of these has not changed for the six months being reported. The 2014 annual financial report is available on the Company’s section of the Manager’s website at www.invescoperpetual.co.uk/citymerchants.

GOING CONCERN

The financial statements are prepared on a going concern basis. The Directors consider that going concern is the appropriate basis as they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion, the Directors have taken into account the Company’s investment objective, its risk management policies, the diversified nature of its investment portfolio, the borrowing facility which can be used to meet short–term funding requirements, the liquidity of most of its investments which could be used to repay any borrowings in the event that the facility could not be renewed or replaced and the ability of the Company to meet all of its liabilities and ongoing expenses.

BOND RATING ANALYSIS (STANDARD AND POOR'S RATINGS)

The definitions of these ratings are set out on page 60 of the 2014 annual financial report.

	30 JUN 2015		31 DEC 2014
	% OF	CUMULATIVE	% OF	CUMULATIVE
Rating	PORTFOLIO	TOTAL %	PORTFOLIO	TOTAL %
Investment Grade:
A–	0.8	0.8	0.8	0.8
BBB+	3.6	4.4	6.5	7.3
BBB	7.9	12.3	6.3	13.6
BBB–	2.6	14.9	3.4	17.0
Non-investment Grade:
BB+	11.9	26.8	14.9	31.9
BB	6.1	32.9	6.6	38.5
BB–	12.3	45.2	5.4	43.9
B+	14.1	59.3	16.8	60.7
B	12.1	71.4	10.2	70.9
B–	2.9	74.3	3.6	74.5
CCC+	6.3	80.6	5.1	79.6
CCC	0.2	80.8	0.2	79.8
NR (including equity)	19.2	100.0	20.2	100.0
	100.0		100.0

DIRECTORS' RESPONSIBILITY STATEMENT

in respect of the preparation of the half-yearly financial report.­

The Directors are responsible for preparing the financial report, using accounting policies consistent with applicable law and International Financial Reporting Standards.

The Directors confirm that to the best of their knowledge:

–   the condensed set of financial statements contained within the half–yearly financial report have been prepared in accordance with International Accounting Standards 34 ‘Interim Financial Reporting’;

–   the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the FCA’s Disclosure and Transparency Rules; and

–   the interim management report includes a fair review of the information required on related party transactions.

The half-yearly financial report has not been audited or reviewed by the Company’s auditor.

Signed on behalf of the Board of Directors.

Clive Nicholson

Chairman

19 August 2015

THIRTY LARGEST INVESTMENTS AT 30 JUNE 2015

ISSUER/ISSUE	MOODY/S&P RATING	INDUSTRY	COUNTRY OF INCORPORATION	MARKET VALUE £’000	% OF PORTFOLIO
Lloyds Banking Group
– Lloyds Bank &
– LBG Capital		Financials	UK
7.875% Var Perpetual	NR/BB–			4,113
7% Var Perpetual	NR/BB–			3,078
				7,191	5.09
Aviva		Financials	UK
6.125% Perpetual	Baa1/BBB			3,824
8.875% Preference	NR/NR			1,575
				5,399	3.82
Société Genérale		Financials	France
8.875% FRN Perpetual	Ba2/BB+			4,554	3.22
Premier Farnell		Industrials	UK
89.2p Convertible Preference		NR/NR		4,129	2.92
General Motors		Consumer Goods	USA
Wts 10 Jul 2019	Equity			4,056	2.87
Credit Agricole		Financials	France
7.589% FRN Perpetual	Ba2/BB+			2,365
7.5% Var Perpetual	NR/NR			904
8.125% FRN Perpetual	Ba2/BB+			562
				3,831	2.71
Telefonica Europe		Telecommunications	Netherlands
6.75% Perpetual	Ba1/BB+			2,203
5.875% Perpetual	Ba1/BB+			1,052
				3,255	2.30
Iron Mountain		Financials	USA
6.125% 15 Sep 2022	Ba2/B+			2,000
6.75% 15 Oct 2018	B2/B–			1,235
				3,235	2.29
Twinkle Pizza		Consumer Services	UK
6.625% 01 Aug 2021	B2/B			1,960
8.625% 01 Aug 2022	Caa1/CCC+			1,244
				3,204	2.27
Standard Chartered		Financials	UK
5.125% 06 Jun 2034	A2/BBB			1,835
5.7% 26 Mar 2044	A2/BBB			1,296
				3,131	2.22
Balfour Beatty		Industrials	UK
10.75p Convertible Preference	NR/NR			2,844	2.01
Intesa Sanpaolo		Financials	Italy
8.375% FRN Perpetual	Ba3/B+			2,709	1.92
Enterprise Inns		Consumer Goods	UK
6.5% 06 Dec 2018 (SNR)	NR/BB–			2,642	1.87
Abengoa		Oil and Gas	Spain
8.5% 31 Mar 2016	B2/B+			1,464
8.875% 05 Feb 2018 (SNR)	B2/B+			745
7.75% 01 Feb 2020 (SNR)	B2/B+			316
				2,525	1.79
Enel		Utilities	Italy
7.75% 10 Sep 2075	Ba1/BB+			1,554
6.625% 15 Sep 2076	Ba1/BB+			786
				2,340	1.66
Barclays		Financials	UK
9.25% Perpetual	Ba1/BB+			1,200
7% Perpetual	NR/B+			975
				2,175	1.54
Citigroup Capital		Financials	USA
6.829% FRN	Ba1/BB			2,140	1.51
28 Jun 2067
Premier Foods Finance		Consumer Goods	UK
6.5% 15 Mar 2021 (SNR)	B2/B			2,118	1.50
Constellium		Basic Materials	Netherlands
7% 15 Jan 2012 (SNR)	B1/B			710
8% 15 Jan 2023	B1/B			668
4.625% 15 May 2021	B1/B			452
5.75% 15 May 2024	B1/B			283
				2,113	1.50
REA Finance		Consumer Goods	Netherlands
9.5% 31 Dec 2017	NR/NR			2,090	1.48
Koninklijke KPN		Telecommunications	Netherlands
6.875% FRN	Ba2/BB			2,072	1.47
14 Mar 2073
Electricite De France		Utilities	France
6% Perpetual	Baa1/BBB			1,316
5.875% Perpetual	Baa1/BBB			596
				1,912	1.35
Gala Finance		Industrials	UK
8.875% 01 Sep 2018	B1/B+			1,884	1.33
Marfrig		Consumer Goods	Netherlands
8.375% 09 May 2018	B2/B+			1,327
9.5% 04 May 2020 (SNR)	B2/B+			312
6.875% 24 June 2019 (SNR)	B2/B+			242
				1,881	1.33
Catlin Insurance		Financials	USA
7.249% FRN Perpetual	NR/BBB+			1,873	1.33
Chemours		Basic Materials	USA
6.625% 15 May 2023	B1/BB–			1,227
(SNR)
6.125% 15 May 2023	B1/NR			557
				1,784	1.26
Obrascon Huarte Lain		Industrials	Spain
5.5% 15 Mar 2023 (SNR)	B1/NR			1,583	1.12
Santos Finance		Oil and Gas	Australia
8.25% FRN 22 Sep 2070	NR/BBB–			1,530	1.08
TMF		Financials	Netherlands
9.875% 01 Dec 2019	Caa1/CCC+			1,520	1.08
Origin Energy		Utilities	Australia
7.875% 16 Jun 2071	Ba1/BB			1,518	1.07
				83,238	58.91
Other investments				58,093	41.09
Total investments				141,331	100.00

.

CONDENSED STATEMENT OF CHANGES IN EQUITY

	STATED CAPITAL £’000	CAPITAL RESERVE £’000	REVENUE RESERVE £’000	TOTAL £’000
FOR THE SIX MONTHS ENDED 30 JUNE 2015
At 31 December 2014	128,209	17,610	2,392	148,211
Net proceeds from issue of new shares	6,070	—	—	6,070
Total comprehensive income for the period	—	13	4,217	4,230
Dividends paid – note 4	(25)	—	(4,059)	(4,084)
At 30 June 2015	134,254	17,623	2,550	154,427
FOR THE SIX MONTHS ENDED 30 JUNE 2014
At 31 December 2013	113,410	18,368	2,239	134,017
Net proceeds from issue of new shares	9,479	—	—	9,479
Total comprehensive income for the period	—	2,541	3,512	6,053
Dividends paid – note 4	(98)	—	(3,634)	(3,732)
At 30 June 2014	122,791	20,909	2,117	145,817

.

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

	FOR THE SIX MONTHS TO 30 JUN 2015			FOR THE SIX MONTHS TO 30 JUN 2014
	REVENUE £’000	CAPITAL £’000	TOTAL £’000	REVENUE £’000	CAPITAL £’000	TOTAL £’000
(Loss)/profit on investments held at fair value	—	(2,989)	(2,989)	—	1,153	1,153
Exchange differences	—	(343)	(343)	—	(241)	(241)
Profit on derivative financial instruments – currency hedges	—	3,554	3,554	—	1,822	1,822
Income – note 5	4,875	—	4,875	4,126	—	4,126
	4,875	222	5,097	4,126	2,734	6,860
Investment management fee – note 2	(376)	(202)	(578)	(346)	(186)	(532)
Other expenses	(199)	—	(199)	(188)	—	(188)
Profit before finance costs and taxation	4,300	20	4,320	3,592	2,548	6,140
Finance costs	(14)	(7)	(21)	(12)	(7)	(19)
Profit before tax	4,286	13	4,299	3,580	2,541	6,121
Taxation	(69)	—	(69)	(68)	—	(68)
Profit after tax	4,217	13	4,230	3,512	2,541	6,053
Return per ordinary share	5.1p	0.0p	5.1p	4.7p	3.4p	8.1p
Weighted average number of shares in issue			82,263,980			75,185,220

The total column of this statement represents the Company’s statement of comprehensive income, prepared in accordance with International Financial Reporting Standards. The profit after tax is the total comprehensive income. The supplementary revenue and capital columns are presented for information in accordance with the Statement of Recommended Practice issued by the Association of Investment Companies. All items in the above statement derive from continuing operations and the Company has no other gains or losses. No operations were acquired or discontinued in the period.

.

CONDENSED BALANCE SHEET

Registered in Jersey No. 109714

	AT 30 JUN 2015 £’000	AT 31 DEC 2014 £’000
Non-current assets
Investments held at fair value through profit or loss	141,331	135,749
Current assets
Other receivables – accrued income	2,598	2,833
Derivative financial instruments
– unrealised profit on forward currency contracts	1,165	466
Cash and cash equivalents	9,706	9,577
	13,469	12,876
Total assets	154,800	148,625
Current liabilities
Other payables	(373)	(414)
Net assets	154,427	148,211
Capital and reserves
Stated capital – note 6	134,254	128,209
Capital reserve	17,623	17,610
Revenue reserve	2,550	2,392
Shareholders’ funds	154,427	148,211
Net asset value per ordinary share	183.71p	183.40p
Number of shares in issue at the period end – note 6	84,062,459	80,812,459

.

CONDENSED STATEMENT OF CASH FLOW

	SIX MONTHS TO 30 JUN 2015 £’000		SIX MONTHS  TO 30 JUN 2014 £’000
Cash flow from operating activities
Profit before tax	4,299		6,121
Taxation	(69)		(68)
Adjustment for:
Purchases of investments		(26,520)		(42,388)
Sales of investments		17,950		33,918
	(8,570)		(8,470)
Loss/(profit) on investments	2,989		(1,153)
Exchange differences	(51)		241
Cash outflow on derivative financial instruments	(699)		(683)
Finance costs	21		19
Operating cash flows before movements in working capital	(2,080)		(3,993)
Decrease/(increase) in receivables	235		(78)
(Decrease)/increase in payables	(41)		10
Net cash flows from operating activities before and after tax	(1,886)		(4,061)
Cash flow from financing activities
Finance costs paid	(22)		(20)
Net proceeds from issue of shares	6,070		9,479
Equity dividends paid – note 4	(4,084)		(3,732)
Net cash flows from financing activities	1,964		5,727
Net increase in cash and cash equivalents	78		1,666
Exchange differences	51		(241)
Cash and cash equivalents at the beginning of the period	9,577		7,365
Cash and cash equivalents at the end of the period	9,706		8,790

.

NOTES TO THE INTERIM FINANCIAL RESULTS

1. Basis of Preparation

The condensed financial statements have been prepared using the same accounting policies as those adopted in the 2014 annual financial report. They have been prepared on an historical cost basis, except for the measurements at fair value of investments and derivatives, and in accordance with the applicable International Financial Reporting Standards (IFRS) and interpretations issued by the International Financial Reporting Interpretations Committee as adopted by the European Union.

Where presentational guidance set out in the Statement of Recommended Practice (SORP): Financial Statements of Investment Trust Companies and Venture Capital Trusts’ is consistent with the requirements of IFRS, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP.

2.  Management Fee

Investment management fees and finance costs are allocated 35% to capital and 65% to revenue. The management fee is payable quarterly in arrear and is equal to 0.1875% of the value of the Company’s total assets under management less current liabilities at the end of each relevant quarter. In addition, the Manager is paid a fixed administration fee of £24,400, based on £22,500 plus RPI per annum.

3.  Taxation

The Company is subject to Jersey income tax at the rate of 0% (2014: 0%). The overseas tax charge consists of irrecoverable withholding tax.

4.  Dividends Paid

SIX MONTHS TO	30 JUN 2015		30 JUN 2014
	PENCE	£’000	PENCE	£’000
Interim in respect of previous period	2.5	2,020	2.5	1,828
First interim	2.5	2,064	2.5	1,904
Second interim	—	—	—	—
Third interim	—	—	—	—
	5.0	4,084	5.0	3,732

Dividends paid in the period have been charged to revenue except for £25,000 (six months to 30 June 2014: £98,000) which was charged to stated capital. This amount is equivalent to the income accrued on the new shares issued in the period (see note 6).

A second interim dividend of 2.5p (2014: 2.5p) has been declared and will be paid on 21 August 2015 to ordinary shareholders on the register on 24 July 2015.

5.  Income

	SIX MONTHS TO 30 JUN 2015 £’000	SIX MONTHS TO 30 JUN 2014 £’000
Investment income – interest:
– UK	1,701	1,421
– Overseas*	2,948	2,512
Dividends:
– UK	211	184
– Overseas	14	8
Deposit interest	1	1
	4,875	4,126

* Income previously written off of £373,000 was received in the six months ended 30 June 2015 which equates to 0.45p per ordinary share.

6.  Stated Capital, including Movements

     Alloted ordinary shares of no par value.

	SIX MONTHS TO 30 JUN 2015	YEAR TO 31 DEC 2014
Stated capital:
Brought forward	£128,209,000	£113,410,000
Net issue proceeds	£6,070,000	£14,939,000
Dividend paid from stated capital	£(25,000)	£(140,000)
Carried forward	£134,254,000	£128,209,000
Number of ordinary shares:
Brought forward	80,812,459	72,786,327
Issued in period	3,250,000	8,026,132
Carried forward	84,062,459	80,812,459
Per share:
– average issue price	188.99p	187.48p

Of the net issue proceeds of £6,070,000, an aggregate amount of £25,000 arose from the accrued income component of the net asset value at the date of issue of the new shares.

Subsequent to the period end 700,000 shares have been issued at an average price of 184.73p.

7.  Classification Under Fair Value Hierarchy

Note 19 of the 2014 annual financial report sets out the basis of classification.

There were no Level 3 holdings at any period end, and the total (not shown) is therefore the aggregate of Level 1 and Level 2.

	AT 30 JUN 2015		AT 31 DEC 2014
	LEVEL 1 £’000	LEVEL 2 £’000	LEVEL 1 £’000	LEVEL 2 £’000
Financial assets designated at fair value through profit or loss:
Fixed interest securities(1)	—	125,786	—	117,715
Convertibles	—	1,660	—	3,430
Preference	2,856	—	2,809	—
Convertible Preference	6,973	—	6,824	—
Warrants	4,056	—	4,971	—
	13,885	127,446	14,604	121,145
Derivative financial instruments:
Currency hedges	—	1,165	—	466
Total for financial assets	13,885	128,611	14,604	121,611

(1)   Fixed interest securities include both fixed and floating rate securities.

8.  Status of Half-yearly Financial Report

The financial information contained in this half-yearly financial report has not been audited by the Company’s auditor and does not constitute statutory accounts as defined in Article 104 of Companies (Jersey) Law 1991. The financial information for the half year ended 30 June 2014 has not been audited. The figures and financial information for the year ended 31 December 2014 are extracted and abridged from the latest published accounts and do not constitute the statutory accounts for that year.

By order of the Board

R&H Fund Services (Jersey) Limited
Company Secretary

19 August 2015