semi annual report and financial statements… · 2019-06-17 · some economic data releases, ......

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(A UCITS umbrella fund authorised and regulated by the Central Bank of Ireland) MOODY’S Aaa-mf RATED S&P AAAm RATED

Fidelity Institutional Liquidity Fund plc

Semi Annual Report and Financial Statements

For the financial period ended 28 February 2019


Contents

General Information 2

Investment Manager’s Overview 3

Schedule of Investments 4

Combined Statement of Financial Position 28

Combined Statement of Comprehensive Income 29

Combined Statement of Changes in Net Assets attributable to redeemable participating shares 30

Combined Statement of Cash Flows 31

Statement of Financial Position 32

Statement of Comprehensive Income 35

Statement of Changes in Net Assets attributable to holders of redeemable participating shares 36

Statement of Cash Flows 39

Notes to the Financial Statements 40

Statement of Changes in Investments 53

Supplementary Information 56

Directory 58


General Information

Fidelity Institutional Liquidity Fund plc (the “Company”), is an open ended investment company with variable capital and is authorised and regulated by the Central Bank of Ireland (the “Central Bank”) under the European Communities (The “UCITS Regulations”). The Company is organised in the form of an umbrella fund with segregated liability between sub-funds and as at 28 February 2019 has three constituent sub-funds, The United States Dollar Fund, The Sterling Fund and The Euro Fund. The United States Dollar Fund commenced trading on 30 November 1995, The Sterling Fund commenced trading on 24 September 1995 and The Euro Fund commenced trading on 20 November 1995 respectively (each a “Fund”, and collectively the “Funds”). The Company is recognised in the UK under Sections 264-265 of the Financial Services and Markets Act 2000, as amended. The Company will not be covered by the provisions of the Financial Services Compensation Scheme operated in the UK. Unless otherwise defined or inconsistent with the context herein, capitalised terms used in this document are as used and have the same meanings as are ascribed to them in the Prospectus of the Company.

This report does not constitute an offer of Shares. Shares are offered on the basis of the information contained in the current Key Investor Information Documents, the Prospectus and the documents referred to within it. Copies of the current Key Investor Information Documents, the Prospectus, the annual and half yearly reports are available free of charge, from the registered office of the Company.

This material is issued by the Company. The shares of all Funds are listed on Euronext Dublin (formerly the Irish Stock Exchange).

1


Investment Manager’s Overview Most developed market central banks turned dovish as officials in Europe unleashed more stimulus, while their peers in the US, Canada and UK indicated they are in no hurry to raise interest rates. The US Federal Reserve’s (Fed) extended pause is supporting the dovish turn from other major central banks. The European Central Bank (ECB) kept rates on hold for the rest of the year and unveiled a series of new loans to kickstart faltering Eurozone growth. The Bank of England (BoE) also signalled that UK interest rates would remain on hold following concerns that the economy was stumbling ahead of Britain leaving the EU.

Macroeconomic indicators remained largely mixed in the US. Fourth-quarter GDP came in at a healthy 2.6%, supported by strong capital expenditure. The acceleration in corporate investments and solid consumption continue to bode well for the economy. Some economic data releases, which were delayed due to the partial government shutdown that ended in late January, exhibited a slowdown. US housing starts witnessed a sharp decline in December, touching its lowest level since September 2016. Manufacturing activity also remained weak. The ISM manufacturing PMI fell sharply in February. This corresponded to the slowest factory activity since November 2016, as new orders, production and employment witnessed a moderate increase. The unemployment rate fell to 3.8% in February from 4% in the previous month and 3.9% in August. The job creation data was mixed over the period. Non-farm payrolls increased by 20,000 in February, following an upwardly revised 311000 rise in January. It is the lowest reading since February 2017, mainly due to falls in construction employment. On the policy front, the US Fed increased its benchmark interest rate twice over the period in increments of 0.25% on each occasion.

After a strong start to 2018, there were few signs of encouragement for the eurozone in 2018. Investor risk sentiment took a hit towards the end of September as the Italian budget failed to meet market expectations. Macroeconomic headwinds came at the forefront subsequently, as the region fell to its slowest rate in more than two years amid the escalating trade war between the US and China, Brexit uncertainty and Italy tipping into recession at the end of 2018. This was after the Italy’s coalition government was forced to revise its expansionary 2019 budget in December 2018. In Core Europe, Germany avoided recession narrowly after registering zero growth in the final three months of last year, while French economy reported growth faster than expected in fourth quarter of 2018, at 0.3%, led by higher exports and higher government spending. Overall, Eurozone’s economic growth in the fourth quarter was 0.2%, flat quarter-over-quarter. However, European union slashed their growth forecast for euro area for 2019 to 1.3% from 1.9%, announced in November. Germany, Italy, and the Netherlands all saw sizeable downgrades for their growth outlook. It also lowered its 2020 growth estimates to 1.6% from 1.7% forecast earlier. On the policy front, the ECB indicated that it would discuss whether additional long-term loans could be provided to eurozone banks, thereby acknowledging the slowdown in the region. Meanwhile, Brexit-related uncertainties persisted.

On the economic front in UK, growth slowed in the three months to December, as Brexit-related uncertainty weighed on economic activity. Sentiment in the manufacturing sector regarding future output also weakened, due to concerns about the impact of Brexit, exchange rate volatility and slower global economic growth. Turning to the first quarter of 2019, signs are largely gloomy. In January, both the services and manufacturing PMIs dropped, with the services PMI hovering only just above the 50-threshold separating expansion from contraction. The Prime Minister Theresa May also delayed the vote on the Brexit deal in Parliament amid lack of consensus, even as the UK and the European Union (EU) reached an in-principle Brexit agreement. The cabinet deadlock on withdrawal agreement reached by British and European Union (EU) negotiators continued and the UK parliament rejected Prime Minister Theresa May's in-principle withdrawal agreement with the EU. However, she was able to overcome the subsequent no confidence vote. Against this backdrop, the chances of a no-deal Brexit continue to loom. The BoE is likely to wait for greater clarity regarding Brexit before making any further changes to its monetary policy. Earlier, the BoE raised interest rates in August 2018 after backtracking on the expected interest rate rises in couple of previous meetings amid disappointing economic data. Looking further ahead, everything hinges on the outcome of Brexit; leaving the EU with a deal, or remaining in the EU, would likely unleash pent-up investment and boost consumer sentiment, while leaving with no deal could cause a serious economic shock.

FIL Investments International

February 2019

2


The United States Dollar Fund

Schedule of Investments

As at 28 February 2019

Holding Currency Investments Fair Value USD '000

% of Net Asset Value

LIQUIDITY INSTRUMENTS

Certificates of deposit

Belgium 55,000,000 USD KBC Bank NV, 0.00%, 24/04/2019 54,779 1.10 Total Belgium 54,779 1.10

Finland 25,000,000 USD OP Corporate Bank plc, 0.00%, 24/04/2019 24,896 0.50 Total Finland 24,896 0.50

France 40,000,000 USD Banque Federative du Credit Mutuel SA, 0.00%, 01/04/2019 39,901 0.80 250,000,000 USD BNP Paribas SA, 2.77%, 16/04/2019 250,000 5.01 250,000,000 USD Credit Agricole SA, 2.74%, 08/04/2019 250,000 5.01 Total France 539,901 10.82

Japan 125,000,000 USD Mizuho Bank Ltd., 2.81%, 01/03/2019 125,000 2.50 125,000,000 USD Mizuho Bank Ltd., 0.00%, 09/04/2019 124,614 2.50 125,000,000 USD MUFG Bank Ltd., 2.77%, 01/04/2019 125,000 2.50 100,000,000 USD MUFG Bank Ltd., 2.79%, 01/04/2019 100,000 2.00 15,000,000 USD Sumitomo Mitsui Trust Bank Ltd., 0.00%, 09/04/2019 14,954 0.30 100,000,000 USD Sumitomo Mitsui Trust Bank Ltd., 0.00%, 15/04/2019 99,650 2.00 125,000,000 USD Sumitomo Trust and Banking Co. Ltd., 0.00%, 08/04/2019 124,626 2.50 Total Japan 713,844 14.30

Netherlands 245,000,000 USD Cooperatieve Rabobank UA, 0.00%, 04/04/2019 244,364 4.90 Total Netherlands 244,364 4.90

Singapore 100,000,000 USD Oversea-Chinese Banking Corp. Ltd., 2.70%, 01/03/2019 100,000 2.00 Total Singapore 100,000 2.00

Sweden 125,000,000 USD Svenska Handelsbanken AB, 2.79%, 01/03/2019 125,000 2.50 Total Sweden 125,000 2.50

United Kingdom 38,000,000 USD Lloyds Bank plc, 2.75%, 15/04/2019 38,000 0.76 100,000,000 USD Nationwide Building Society, 0.00%, 07/05/2019 99,506 1.99 125,000,000 USD Standard Chartered Bank, 2.88%, 27/03/2019 125,000 2.51 Total United Kingdom 262,506 5.26

Total investments in certificates of deposit 2,065,290 41.38

3



Schedule of Investments (continued)




LIQUIDITY INSTRUMENTS (continued)

Commercial papers

Australia 79,000,000 USD Commonwealth Bank of Australia, 2.87%, 01/07/2019 79,018 1.58 Total Australia 79,018 1.58

Finland 45,000,000 USD OP Corporate Bank plc, 0.00%, 29/04/2019 44,795 0.90 Total Finland 44,795 0.90

France 100,000,000 USD Dexia Credit Local SA, 0.00%, 01/08/2019 98,884 1.98 20,000,000 USD Dexia Credit Local SA, 0.00%, 09/08/2019 19,765 0.40 Total France 118,649 2.38

Germany 78,000,000 USD Allianz SE, 0.00%, 23/04/2019 77,690 1.56 50,000,000 USD Allianz SE, 0.00%, 05/08/2019 49,419 0.99 50,000,000 USD Allianz SE, 0.00%, 05/08/2019 49,419 0.99 Total Germany 176,528 3.54

Japan 60,000,000 USD Sumitomo Mitsui Banking Corp., 0.00%, 06/05/2019 59,710 1.20 Total Japan 59,710 1.20

Netherlands 100,000,000 USD Schlumberger Finance BV, 0.00%, 02/04/2019 99,752 2.00 Total Netherlands 99,752 2.00

Singapore 125,000,000 USD DBS Bank Ltd., 0.00%, 19/03/2019 124,840 2.50 Total Singapore 124,840 2.50

Sweden 50,000,000 USD Swedbank AB, 0.00%, 03/09/2019 49,330 0.99 Total Sweden 49,330 0.99

United Kingdom 125,000,000 USD HSBC UK Bank plc, 0.00%, 17/07/2019 123,729 2.48 65,000,000 USD HSBC UK Bank plc, 0.00%, 07/08/2019 64,235 1.29 50,000,000 USD HSBC UK Bank plc, 0.00%, 12/08/2019 49,392 0.99 150,000,000 USD Santander UK plc, 0.00%, 01/04/2019 149,638 3.00 100,000,000 USD Santander UK plc, 0.00%, 15/04/2019 99,656 1.99 125,000,000 USD Standard Chartered Bank, 0.00%, 25/03/2019 124,760 2.50 Total United Kingdom 611,410 12.25

4








Commercial papers (continued)

United States 19,000,000 USD Zurich Holding Co. of America, Inc., 0.00%, 09/04/2019 18,941 0.38 16,500,000 USD Zurich Holding Co. of America, Inc., 0.00%, 18/04/2019 16,438 0.33 80,000,000 USD Zurich Holding Co. of America, Inc., 0.00%, 24/04/2019 79,668 1.59 Total United States 115,047 2.30

Total investments in commercial papers 1,479,079 29.64

Term deposits

Canada 150,000,000 USD Bank of Montreal, 2.40%, 05/03/2019 150,000 3.01 Total Canada 150,000 3.01

France 310,000,000 USD BRED Banque Populaire, 2.44%, 01/03/2019 310,000 6.21 Total France 310,000 6.21

Total investments in term deposits 460,000 9.22

Total investments in liquidity instruments 4,004,369 80.24



BONDS

Corporate debt securities

Australia 125,000,000 USD National Australia Bank Ltd., FRN, 3.02%, 22/03/2019 125,000 2.50 Total Australia 125,000 2.50

Total investments in corporate debt securities 125,000 2.50

Total investments in bonds 125,000 2.50

5





Interest Maturity Fair Value % of Net Holding Currency Counterparty Rate Date USD '000 Asset Value

Reverse repurchase agreements

United Kingdom

350,000,000 USD Citigroup 2.43% 01/03/2019 350,000 7.01 100,000,000 USD Citigroup 2.43% 01/03/2019 100,000 2.01 100,000,000 USD Citigroup 2.43% 04/03/2019 100,000 2.00 Total United Kingdom 550,000 11.02

United States

250,000,000 USD Barclays 2.42% 01/03/2019 250,000 5.01 250,000,000 USD Barclays 2.42% 04/03/2019 250,000 5.01 200,000,000 USD Barclays 2.45% 05/03/2019 200,000 4.01 Total United States 700,000 14.03

Total investments in reverse repurchase agreements 1,250,000 25.05

Fair Value USD '000


Total financial assets at fair value through profit or loss 5,379,369 107.79 Cash 131,218 2.63 Other assets and liabilities (519,931) (10.42) Net asset value attributable to redeemable participating shareholders 4,990,656 100.00

Analysis of total assets % of Total

Assets Transferable securities admitted to official stock exchange listing 2.26 Transferable securities dealt in on another regulated market 22.55 Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) 72.25 Other assets 2.94 Total assets 100.00

6




As at 31 August 2018





Australia 134,000,000 USD Rabobank Australia, 2.30%, 02/11/2018 133,473 2.10 125,000,000 USD United O/S Bank, 2.29%, 04/09/2018 124,976 1.97 Total Australia 258,449 4.07

Belgium 125,000,000 USD KBC Bank, 2.29%, 03/10/2018 124,747 1.97 125,000,000 USD KBC Bank, 2.29%, 06/11/2018 124,478 1.96 Total Belgium 249,225 3.93

France 125,000,000 USD Credit Agricole CIB London, 2.30%, 13/11/2018 124,421 1.96 Total France 124,421 1.96

Japan 125,000,000 USD Mitsubishi UFJ Trust & Bank, 2.33%, 01/10/2018 124,759 1.97 125,000,000 USD Mitsubishi UFJ Trust & Bank, 2.31%, 12/10/2018 124,673 1.96 38,000,000 USD Mizuho Bank London, 2.38%, 10/09/2018 37,978 0.60 61,000,000 USD Mizuho Bank London, 2.33%, 11/10/2018 60,843 0.96 75,000,000 USD Mizuho Bank London, 2.35%, 14/11/2018 74,640 1.18 95,000,000 USD Mizuho Bank Sydney, 2.40%, 04/10/2018 94,792 1.49 100,000,000 USD Sumitomo Mitsui Bank Sydney, 2.31%, 19/09/2018 99,885 1.57 125,000,000 USD Sumitomo Mitsui Trust Bank, 2.34%, 10/10/2018 124,686 1.97 26,000,000 USD Sumitomo Mitsui Trust Bank 2.25% 10/10/2018 25,937 0.41 125,000,000 USD Sumitomo Mitsui Trust Bank, 2.34%, 11/10/2018 124,677 1.96 Total Japan 892,870 14.07

Netherlands 25,000,000 USD Rabobank Nederland Australia, 2.25%, 12/10/2018 24,936 0.39 Total Netherlands 24,936 0.39

Sweden 125,000,000 USD Svenska Hande, 2.36%, 01/03/2019 125,000 1.97 Total Sweden 125,000 1.97

United Kingdom 125,000,000 USD Standard Chartered Bank, 2.29%, 17/10/2018 124,636 1.97 Total United Kingdom 124,636 1.97

Total investments in certificates of deposit 1,799,537 28.36

7








Commercial papers

Australia 125,000,000 USD ANZ, 2.41%, 26/09/2018 124,793 1.97 125,000,000 USD Anznil, 2.40%, 24/09/2018 124,811 1.97 79,000,000 USD Commonwealth Bank of Australia, 2.41%, 01/07/2019 79,000 1.24 178,000,000 USD CSFB Australia, 2.33%, 03/10/2018 177,633 2.80 Total Australia 506,237 7.98

Canada 150,000,000 USD Bank of Montreal, 2.06%, 01/10/2018 149,768 2.36 45,000,000 USD Toronto, 2.30%, 09/11/2018 44,803 0.71 Total Canada 194,571 3.07

France 50,000,000 USD Agence Centrale, 2.11%, 04/09/2018 49,991 0.79 90,000,000 USD Agence Centrale, 2.18%, 19/10/2018 89,739 1.41 125,000,000 USD BFCM Paris, 2.29%, 01/10/2018 124,762 1.97 125,000,000 USD BFCM Paris, 2.31%, 01/11/2018 124,515 1.96 25,000,000 USD Dexia Credit, 2.14%, 05/10/2018 24,950 0.39 125,000,000 USD Dexia Credit, 2.30%, 16/10/2018 124,643 1.96 47,500,000 USD La Banque Postale, 2.20%, 05/10/2018 47,402 0.75 Total France 586,002 9.23

Germany 78,000,000 USD Allianz, 2.31%, 22/10/2018 77,746 1.22 50,000,000 USD Allianz, 2.30%, 02/11/2018 49,803 0.79 39,000,000 USD Allianz, 2.30%, 05/11/2018 38,839 0.61 50,000,000 USD Allianz, 2.44%, 14/01/2019 49,547 0.78 125,000,000 USD Dekabank Deutsche Girozentale, 2.34%, 18/09/2018 124,863 1.97 125,000,000 USD Deutsche Bahn, 2.09%, 04/09/2018 124,978 1.97 200,000,000 USD Deutsche Bahn, 2.14%, 04/10/2018 199,644 3.15 250,000,000 USD DZ Bank, 2.25%, 05/10/2018 249,472 3.93 16,000,000 USD KFW, 2.03%, 04/09/2018 15,997 0.25 150,000,000 USD KFW, 2.35%, 02/01/2019 148,833 2.35 125,000,000 USD Landeskreditbank, 2.35%, 02/01/2019 124,029 1.95 Total Germany 1,203,751 18.97

Luxembourg 100,000,000 USD European Investment Bank, 2.35%, 04/01/2019 99,210 1.56 Total Luxembourg 99,210 1.56

Netherlands 100,000,000 USD ING Bank, 2.31%, 24/09/2018 99,853 1.57 64,000,000 USD JT International, 2.32%, 26/09/2018 63,897 1.01 64,000,000 USD JT International, 2.40%, 30/10/2018 63,750 1.00 344,000,000 USD Netherlands, 2.05%, 17/09/2018 343,686 5.42

8









Netherlands (continued) 125,000,000 USD Rabobank, 2.29%, 04/09/2018 124,976 1.97 20,000,000 USD Schlumberger Finance, 2.27%, 04/09/2018 19,996 0.32 125,000,000 USD Schlumberger Finance, 2.28%, 26/09/2018 124,803 1.97 95,000,000 USD Schlumberger Finance, 2.30%, 03/10/2018 94,807 1.49 20,000,000 USD Schlumberger Finance, 2.08%, 04/10/2018 19,966 0.31 Total Netherlands 955,734 15.06

Singapore 125,000,000 USD DBS Bank, 2.32%, 19/09/2018 124,856 1.97 125,000,000 USD Oversea-Chinese Banking, 2.28%, 02/10/2018 124,755 1.96 Total Singapore 249,611 3.93

South Korea 30,000,000 USD Korea Dev Bank, 2.11%, 12/09/2018 29,981 0.47 Total South Korea 29,981 0.47

United Kingdom 125,000,000 USD Standard Chartered Bank, 2.31%, 01/10/2018 124,761 1.97 Total United Kingdom 124,761 1.97

United States 60,000,000 USD Zurich Holding America, 2.32%, 24/10/2018 59,796 0.94 Total United States 59,796 0.94

Total investments in commercial papers 4,009,654 63.18

Term deposits

France 250,000,000 USD Bred Banque Populaire, 1.97%, 04/09/2018 250,000 3.94 Total France 250,000 3.94

Germany 300,000,000 USD DZ Bank, 1.94%, 04/09/2018 300,000 4.72 Total Germany 300,000 4.72



9







BONDS


Australia 125,000,000 USD National Australia Bank, 2.53%, 22/03/2019 125,000 1.97

Total Australia 125,000 1.97



Interest Maturity Fair Value % of Net Holding Currency Counterparty Rate Date USD '000 Asset Value

Reverse repurchase agreements

United Kingdom

250,000,000 USD Barclays 1.91% 04/09/2018 250,000 3.94 Total United Kingdom 250,000 3.94

United States

250,000,000 USD Citigroup 1.98% 04/09/2018 250,000 3.94 Total United States 250,000 3.94

Total investments in reverse repurchase agreements 500,000 7.88

Fair Value USD '000


Total financial assets at fair value through profit or loss 6,984,191 110.05 Cash 205,489 3.24Other assets and liabilities (843,570) (13.29) Net asset value attributable to redeemable participating shareholders 6,346,110 100.00



10


The Sterling Fund



Holding Currency Investments Fair Value GBP '000




Australia 20,000,000 GBP National Australia Bank Ltd., 0.00%, 07/05/2019 19,972 1.27 Total Australia 19,972 1.27

Canada 10,000,000 GBP Toronto-Dominion Bank (The), 0.88%, 19/03/2019 10,000 0.64 20,000,000 GBP Toronto-Dominion Bank (The), 0.98%, 18/09/2019 19,995 1.27 Total Canada 29,995 1.91

France 20,000,000 GBP BNP Paribas SA, 0.88%, 03/05/2019 20,000 1.28 25,000,000 GBP Credit Agricole Corporate and Investment Bank, 0.90%, 01/03/2019 25,000 1.59 Total France 45,000 2.87

Japan 35,000,000 GBP Mizuho Bank Ltd., 0.00%, 01/03/2019 34,999 2.23 25,000,000 GBP Mizuho Bank Ltd., 0.00%, 08/04/2019 24,974 1.59 25,000,000 GBP MUFG Bank Ltd., 0.97%, 04/04/2019 25,000 1.59 25,000,000 GBP MUFG Bank Ltd., 0.96%, 15/04/2019 25,000 1.59 20,000,000 GBP Sumitomo Mitsui Banking Corp., 0.00%, 29/03/2019 19,986 1.28 20,000,000 GBP Sumitomo Mitsui Trust Bank Ltd., 0.00%, 28/05/2019 19,958 1.27 10,000,000 GBP Sumitomo Trust and Banking Co. Ltd., 0.00%, 12/03/2019 9,997 0.64 Total Japan 159,914 10.19

Singapore 25,000,000 GBP Oversea-Chinese Banking Corp. Ltd., 0.00%, 19/03/2019 24,989 1.59 25,000,000 GBP Oversea-Chinese Banking Corp. Ltd., 0.90%, 11/04/2019 25,000 1.59 Total Singapore 49,989 3.18

Sweden 20,000,000 GBP Svenska Handelsbanken AB, 0.98%, 20/08/2019 20,000 1.27 Total Sweden 20,000 1.27

United Kingdom 30,000,000 GBP HSBC Bank plc, 0.93%, 03/11/2019 29,996 1.91 10,000,000 GBP HSBC UK Bank plc, 0.98%, 12/08/2019 10,002 0.64 19,500,000 GBP Lloyds Bank plc, 0.90%, 14/05/2019 19,504 1.24 35,000,000 GBP Lloyds Bank plc, 0.88%, 28/05/2019 34,999 2.23 15,000,000 GBP Nationwide Building Society, 0.00%, 01/03/2019 15,000 0.96 25,000,000 GBP Nationwide Building Society, 0.00%, 22/03/2019 24,987 1.59 30,000,000 GBP Rabobank International, 0.97%, 20/05/2019 30,010 1.91 Total United Kingdom 164,498 10.48

Total investments in certificates of deposit 489,368 31.17

11


The Sterling Fund






Commercial papers

Finland 20,000,000 GBP Nordea Bank Abp, 0.00%, 04/03/2019 19,999 1.27 16,000,000 GBP Nordea Bank Abp, 0.00%, 05/08/2019 15,936 1.02 19,000,000 GBP Nordea Bank Abp, 0.00%, 15/08/2019 18,919 1.20 15,000,000 GBP Nordea Bank Abp, 0.00%, 27/08/2019 14,930 0.95 Total Finland 69,784 4.44

France 30,000,000 GBP Agence Centrale des Organismes de Securite Sociale, 0.00%, 15/03/2019 29,989 1.91 14,000,000 GBP Dexia Credit Local SA, 0.00%, 14/03/2019 13,996 0.89 15,000,000 GBP Dexia Credit Local SA, 0.00%, 01/08/2019 14,942 0.95 30,000,000 GBP Dexia Credit Local SA, 0.98%, 14/10/2019 29,998 1.91 Total France 88,925 5.66

Germany 36,000,000 GBP Toyota Kreditbank GmbH, 0.00%, 10/04/2019 35,965 2.29 Total Germany 35,965 2.29

Japan 18,000,000 GBP Sumitomo Mitsui Banking Corp., 0.00%, 11/03/2019 17,995 1.15 Total Japan 17,995 1.15

Netherlands 25,000,000 GBP ABN AMRO Bank NV, 0.00%, 01/03/2019 24,999 1.59 20,000,000 GBP Toyota Motor Finance (Netherlands) BV, 0.00%, 28/05/2019 19,959 1.27 Total Netherlands 44,958 2.86

Norway 21,500,000 GBP DNB Bank ASA, 0.00%, 08/04/2019 21,479 1.37 25,000,000 GBP DNB Bank ASA, 0.00%, 12/04/2019 24,972 1.59 Total Norway 46,451 2.96

Singapore 30,000,000 GBP DBS Bank Ltd., 0.00%, 27/03/2019 29,981 1.91 Total Singapore 29,981 1.91

Sweden 15,000,000 GBP Svenska Handelsbanken AB, 0.00%, 25/07/2019 14,943 0.95 35,000,000 GBP Swedbank AB, 0.00%, 27/08/2019 34,839 2.22 20,000,000 GBP Swedbank AB, 0.00%, 03/09/2019 19,908 1.27 Total Sweden 69,690 4.44

12


The Sterling Fund







United Kingdom 15,000,000 GBP Honda Finance Europe plc, 0.00%, 04/03/2019 14,999 0.96 30,000,000 GBP Santander UK plc, 0.00%, 05/03/2019 29,996 1.91 20,000,000 GBP Santander UK plc, 0.00%, 13/05/2019 19,967 1.27 Total United Kingdom 64,962 4.14

Total investments in commercial papers 468,711 29.85

Term deposits

France 125,341,370 GBP BRED Banque Populaire, 0.71%, 01/03/2019 125,341 7.98 Total France 125,341 7.98

Japan 80,013,809 GBP Mizuho Bank Ltd., 0.70%, 01/03/2019 80,014 5.10 Total Japan 80,014 5.10





BONDS

Government debt securities

United Kingdom 25,000,000 GBP UK Treasury Bill, 0.00%, 04/03/2019 24,998 1.59 7,165,000 GBP UK Treasury Bill, 0.00%, 05/08/2019 7,141 0.46 Total United Kingdom 32,139 2.05

Total investments in government debt securities 32,139 2.05


Australia 20,000,000 GBP Commonwealth Bank of Australia, FRN, 0.98%, 21/03/2019 20,000 1.28 15,000,000 GBP Commonwealth Bank of Australia, FRN, 0.93%, 29/10/2019 15,000 0.96 20,000,000 GBP Commonwealth Bank of Australia, FRN, 1.04%, 15/11/2019 19,999 1.27 25,000,000 GBP Westpac Banking Corp., FRN, 0.98%, 20/03/2019 25,000 1.59

13


The Sterling Fund





BONDS (continued)

Corporate debt securities (continued)

Australia (continued) 25,000,000 GBP Westpac Banking Corp., FRN, 1.03%, 19/11/2019 24,997 1.59 Total Australia 104,996 6.69

France 9,000,000 GBP Dexia Credit Local SA, FRN, 1.16%, 04/04/2019 9,001 0.57 Total France 9,001 0.57



Interest Maturity Fair Value % of Net Holding Currency Counterparty Rate Date GBP '000 Asset Value

Reverse repurchase agreements United Kingdom

140,000,000 GBP BNP Paribas 0.70% 01/03/2019 140,000 8.92 Total United Kingdom 140,000 8.92

United States

90,000,000 GBP Barclays 0.72% 01/03/2019 90,000 5.73 50,000,000 GBP Barclays 0.72% 06/03/2019 50,000 3.18 Total United States 140,000 8.91

Total investments in reverse repurchase agreements 280,000 17.83

Fair Value GBP '000


Total financial assets at fair value through profit or loss 1,589,570 101.24 Cash (5) – Other assets and liabilities (19,533) (1.24) Net asset value attributable to redeemable participating shareholders 1,570,032 100.00



14


The Sterling Fund







Canada 2,000,000 GBP Toronto Dominion Bank, 0.60%, 04/09/2018 2,000 0.19 13,000,000 GBP Toronto Dominion Bank, 0.57%, 14/09/2018 13,001 1.28 Total Canada 15,001 1.47

France 32,000,000 GBP BNP Paribas, 0.60%, 04/09/2018 31,999 3.14 12,000,000 GBP BNP Paribas, 0.83%, 01/11/2018 12,000 1.18 30,000,000 GBP Credit Agricole London, 0.64%, 01/10/2018 30,000 2.95 Total France 73,999 7.27

Japan 25,000,000 GBP Sumitomo Mitsui Banking Brussels, 0.00%, 03/09/2018 24,999 2.46 Total Japan 24,999 2.46

Netherlands 26,000,000 GBP ABN Amro Bank, 0.63%, 01/10/2018 25,987 2.55 20,000,000 GBP ING Bank, 0.80%, 07/11/2018 20,000 1.96 25,000,000 GBP ING Bank, 0.80%, 09/11/2018 25,000 2.46 Total Netherlands 70,987 6.97

Singapore 20,000,000 GBP Oversea-Chinese Banking, 0.58%, 13/09/2018 20,000 1.96 Total Singapore 20,000 1.96

United Kingdom 15,000,000 GBP Honda Finance Europe, 0.62%, 03/09/2018 14,999 1.47 25,000,000 GBP Standard Chartered Bank, 0.60%, 18/09/2018 24,993 2.46 16,500,000 GBP Standard Chartered Bank, 0.60%, 21/09/2018 16,500 1.62 Total United Kingdom 56,492 5.55

United States 30,000,000 GBP Bank Of America London, 0.61%, 06/09/2018 30,000 2.95 22,000,000 GBP Citibank, 0.59%, 10/09/2018 22,000 2.16 25,000,000 GBP Citibank, 0.64%, 02/10/2018 25,000 2.45 Total United States 77,000 7.56


15


The Sterling Fund






Commercial papers

Australia 19,000,000 GBP ANZ, 0.80%, 03/12/2018 18,961 1.86 25,000,000 GBP ANZ, 0.71%, 02/01/2019 24,941 2.45 Total Australia 43,902 4.31

Belgium 25,000,000 GBP Belgium, 0.58%, 27/09/2018 24,990 2.45 Total Belgium 24,990 2.45

Finland 20,000,000 GBP Nordea Bank, 0.55%, 03/09/2018 19,999 1.96 25,000,000 GBP Nordea Bank, 0.82%, 08/01/2019 24,928 2.45 20,000,000 GBP Nordea Bank, 0.84%, 04/03/2019 19,917 1.96 Total Finland 64,844 6.37

France 50,000,000 GBP Agence Centrale, 0.76%, 15/10/2018 49,954 4.91 25,000,000 GBP BFCM Paris, 0.60%, 14/09/2018 24,995 2.46 20,000,000 GBP BFCM Paris, 0.81%, 06/11/2018 19,971 1.96 14,000,000 GBP Credit Agricole CIB London, 0.80%, 13/11/2018 13,977 1.37 Total France 108,897 10.70

Germany 25,000,000 GBP Dekabank Deutsche Girozentale, 0.71%, 07/09/2018 24,997 2.46 25,000,000 GBP DZ Bank, 0.76%, 13/11/2018 24,962 2.45 25,000,000 GBP Landeskreditbank, 0.71%, 02/01/2019 24,941 2.45 Total Germany 74,900 7.36

Singapore 25,000,000 GBP DBS Bank, 0.58%, 07/09/2018 24,998 2.45 20,000,000 GBP DBS Bank, 0.66%, 19/09/2018 19,993 1.96 25,000,000 GBP Oversea-Chinese Banking, 0.54%, 07/09/2018 24,998 2.46 Total Singapore 69,989 6.87

Sweden 25,000,000 GBP Swedbank, 0.61%, 01/10/2018 24,987 2.45 Total Sweden 24,987 2.45

United Kingdom 15,000,000 GBP Honda Finance Europe, 0.84%, 03/12/2018 14,969 1.47 25,000,000 GBP Lloyds Bank, 0.57%, 03/09/2018 24,999 2.46 Total United Kingdom 39,968 3.93


16


The Sterling Fund






Term deposits

France 88,545,940 GBP Bred Banque Populaire, 0.71%, 03/09/2018 88,546 8.70

Total France 88,546 8.70

Germany 50,000,000 GBP DZ Bank, 0.69%, 03/09/2018 50,000 4.91

Total Germany 50,000 4.91

Japan 60,002,301 GBP Mizuho Bank London, 0.70%, 03/09/2018 60,002 5.89

Total Japan 60,002 5.89


Total investments in liquidity instruments 989,503 97.18



BONDS

Government debt securities

United Kingdom 23,327,000 GBP UK T-BILL, 0.73%, 11/02/2019 23,252 2.28 25,000,000 GBP UK T-BILL, 0.73%, 04/03/2019 24,909 2.45

Total United Kingdom 48,161 4.73

Total investments in government debt securities 48,161 4.73


Australia 20,000,000 GBP CommonWealth Bank, 0.71%, 21/03/2019 20,000 1.96 25,000,000 GBP Westpac Banking Corporation, 0.70%, 20/03/2019 24,999 2.46

Total Australia 44,999 4.42

17


The Sterling Fund





BONDS (continued)

Corporate debt securities (continued)

Canada 20,000,000 GBP Toronto Dominion Bank, 0.67%, 17/12/2018 20,000 1.96 Total Canada 20,000 1.96



Fair Value GBP '000


Total financial assets at fair value through profit or loss 1,102,663 108.29 Other assets and liabilities (84,385) (8.29) Net asset value attributable to redeemable participating shareholders 1,018,278 100.00


Assets Transferable securities admitted to official stock exchange listing 10.26 Other transferable securities of the type referred to in Regulation 68 (1) (a), (b) and (c) 89.70 Other assets 0.04 Total assets 100.00

18


The Euro Fund



Holding Currency Investments Fair Value EUR '000




Australia 20,000,000 EUR National Australia Bank Ltd., 0.00%, 03/06/2019 20,019 1.69 10,000,000 EUR National Australia Bank Ltd., 0.00%, 14/06/2019 10,012 0.84 25,000,000 EUR National Australia Bank Ltd., 0.00%, 17/06/2019 25,026 2.10 Total Australia 55,057 4.63

Canada 30,000,000 EUR Bank of Montreal, 0.00%, 01/04/2019 30,010 2.53 20,000,000 EUR Toronto-Dominion Bank (The), 0.00%, 17/06/2019 20,020 1.68 Total Canada 50,030 4.21

France 30,000,000 EUR Credit Agricole SA, 0.00%, 29/03/2019 30,008 2.53 25,000,000 EUR Credit Agricole SA, 0.00%, 09/04/2019 25,009 2.10 Total France 55,017 4.63

Japan 20,000,000 EUR Mizuho Bank Ltd., 0.00%, 20/03/2019 20,004 1.68 30,000,000 EUR Mizuho Bank Ltd., 0.00%, 08/04/2019 30,011 2.53 15,000,000 EUR Sumitomo Mitsui Banking Corp., 0.00%, 29/03/2019 15,004 1.26 30,500,000 EUR Sumitomo Mitsui Banking Corp., 0.00%, 08/04/2019 30,511 2.57 20,000,000 EUR Sumitomo Mitsui Trust Bank Ltd., 0.00%, 31/05/2019 20,019 1.68 Total Japan 115,549 9.72

United Kingdom 40,000,000 EUR Nationwide Building Society, 0.00%, 01/03/2019 40,000 3.36 Total United Kingdom 40,000 3.36

United States 55,000,000 EUR Citibank NA, 0.00%, 01/04/2019 55,017 4.63 Total United States 55,017 4.63




Commercial papers

Canada 20,000,000 EUR Toronto-Dominion Bank (The), 0.00%, 03/06/2019 20,020 1.68 Total Canada 20,020 1.68

19


The Euro Fund







Finland 20,000,000 EUR Nordea Bank Abp, 0.00%, 11/03/2019 20,002 1.68 20,000,000 EUR Nordea Bank Abp, 0.00%, 26/08/2019 20,039 1.69 Total Finland 40,041 3.37

France 20,000,000 EUR Dexia Credit Local SA, 0.00%, 01/08/2019 20,035 1.69 10,000,000 EUR Dexia Credit Local SA, 0.00%, 08/08/2019 10,019 0.84 30,000,000 EUR HSBC France SA, 0.00%, 23/05/2019 30,021 2.52 Total France 60,075 5.05

Germany 10,000,000 EUR DekaBank Deutsche Girozentrale, 0.00%, 20/03/2019 10,002 0.84 15,000,000 EUR DekaBank Deutsche Girozentrale, 0.00%, 02/05/2019 15,008 1.26 30,000,000 EUR DekaBank Deutsche Girozentrale, 0.00%, 21/05/2019 30,021 2.52 32,000,000 EUR DZ BANK AG Deutsche Zentral-Genossenschaftsbank, 0.00%, 01/03/2019 32,000 2.69 23,000,000 EUR DZ BANK AG Deutsche Zentral-Genossenschaftsbank, 0.00%, 10/04/2019 23,010 1.94 35,000,000 EUR Toyota Leasing GmbH, 0.00%, 30/04/2019 35,022 2.95 Total Germany 145,063 12.20

Sweden 25,000,000 EUR Svenska Handelsbanken AB, 0.00%, 19/08/2019 25,040 2.11 15,000,000 EUR Svenska Handelsbanken AB, 0.00%, 20/08/2019 15,024 1.26 15,000,000 EUR Svenska Handelsbanken AB, 0.00%, 21/08/2019 15,024 1.26 30,000,000 EUR Swedbank AB, 0.00%, 27/08/2019 30,058 2.53 20,000,000 EUR Swedbank AB, 0.00%, 03/09/2019 20,039 1.69 Total Sweden 105,185 8.85

United Kingdom 40,000,000 EUR Barclays Bank plc, 0.00%, 08/03/2019 40,002 3.37 Total United Kingdom 40,002 3.37

United States 18,500,000 EUR Procter & Gamble Co. (The), 0.00%, 07/03/2019 18,501 1.56 16,000,000 EUR Procter & Gamble Co. (The), 0.00%, 12/04/2019 16,007 1.35 12,000,000 EUR Procter & Gamble Co. (The), 0.00%, 17/05/2019 12,010 1.01 6,000,000 EUR Procter & Gamble Co. (The), 0.00%, 21/05/2019 6,005 0.50 Total United States 52,523 4.42


20


The Euro Fund






Term deposits

France 90,000,000 EUR BNP Paribas SA, (0.50)%, 01/03/2019 90,000 7.57 108,960,433 EUR BRED Banque Populaire, (0.50)%, 01/03/2019 108,960 9.17 Total France 198,960 16.74

Germany 50,000,000 EUR DZ BANK AG Deutsche Zentral-Genossenschaftsbank, (0.50)%, 01/03/2019 50,000 4.20 Total Germany 50,000 4.20

Japan 100,000,000 EUR MUFG Bank Ltd., (0.48)%, 01/03/2019 100,000 8.41 Total Japan 100,000 8.41





BONDS


Australia 26,317,000 EUR Australia & New Zealand Banking Group Ltd., FRN, 0.09%, 28/10/2019 26,383 2.22 Total Australia 26,383 2.22



Fair Value EUR '000


Total financial assets at fair value through profit or loss 1,208,922 101.69 Cash 1 – Other assets and liabilities (20,154) (1.69) Net asset value attributable to redeemable participating shareholders 1,188,769 100.00

21


The Euro Fund





22


The Euro Fund







Canada 50,000,000 EUR TD Bank London, (0.41)%, 14/09/2018 50,008 3.10 Total Canada 50,008 3.10

France 35,000,000 EUR Credit Agricole, (0.34)%, 01/10/2018 35,010 2.17 30,000,000 EUR Credit Agricole, (0.35)%, 03/12/2018 30,026 1.86 Total France 65,036 4.03

Japan 35,000,000 EUR Mitsubishi UFJ Trust & Bank, (0.36)%, 01/10/2018 35,011 2.16 30,000,000 EUR Mitsubishi UFJ Trust & Bank, (0.37)%, 03/10/2018 30,010 1.86 20,000,000 EUR Mizuho Bank London, (0.36)%, 10/09/2018 20,002 1.24 30,000,000 EUR Mizuho Bank London, (0.32)%, 02/10/2018 30,008 1.86 20,000,000 EUR Mizuho Bank London, (0.37)%, 06/11/2018 20,013 1.24 30,000,000 EUR Sumitomo Mitsui Banking Brussels, (0.39)%, 02/10/2018 30,010 1.86 35,000,000 EUR Sumitomo Mitsui Trust Bank, (0.37)%, 01/10/2018 35,011 2.16 30,000,000 EUR Sumitomo Mitsui Trust Bank, (0.38)%, 03/10/2018 30,010 1.86 Total Japan 230,075 14.24

Netherlands 30,000,000 EUR Rabobank Nederland, (0.41)%, 11/10/2018 30,014 1.86 Total Netherlands 30,014 1.86

Switzerland 30,000,000 EUR UBS London Branch, (0.38)%, 02/11/2018 30,018 1.86 Total Switzerland 30,018 1.86

United States 30,000,000 EUR Citibank, (0.39)%, 18/09/2018 30,006 1.86 30,000,000 EUR Citibank, (0.39)%, 21/09/2018 30,006 1.85 Total United States 60,012 3.71




Commercial papers

Austria 74,500,000 EUR Oesterreichisch, (0.44)%, 24/09/2018 74,521 4.61 Total Austria 74,521 4.61

23


The Euro Fund







Finland 10,000,000 EUR Nordea Bank, (0.42)%, 04/09/2018 10,001 0.62 30,000,000 EUR Nordea Bank, (0.42)%, 08/01/2019 30,045 1.86 Total Finland 40,046 2.48

France 15,000,000 EUR BFCM Paris, (0.40)%, 20/09/2018 15,003 0.93 40,000,000 EUR BFMC Paris, (0.40)%, 01/10/2018 40,013 2.48 30,000,000 EUR Credit Agricole, (0.36)%, 03/09/2018 30,001 1.86 50,000,000 EUR HSBC France, (0.39)%, 10/10/2018 50,021 3.09 25,000,000 EUR L'Oreal, (0.46)%, 13/09/2018 25,004 1.55 35,000,000 EUR L'Oreal, (0.47)%, 21/09/2018 35,009 2.17 10,000,000 EUR RTE EDF Transport, (0.36)%, 10/09/2018 10,001 0.62 20,000,000 EUR RTE EDF Transport, (0.36)%, 09/10/2018 20,007 1.24 Total France 225,059 13.94

Germany 35,000,000 EUR Dekabank Deutsche Girozentale, (0.39)%, 01/10/2018 35,011 2.17 40,000,000 EUR Dekabank Deutsche Girozentale, (0.37)%, 21/11/2018 40,033 2.48 60,500,000 EUR DZ Bank, (0.44)%, 05/10/2018 60,525 3.75 30,000,000 EUR Landeskreditbank, (0.50)%, 02/01/2019 30,051 1.86 30,000,000 EUR Linde Finance, (0.39)%, 06/09/2018 30,002 1.86 13,000,000 EUR Linde Finance, (0.37)%, 21/09/2018 13,003 0.80 Total Germany 208,625 12.92

Japan 30,000,000 EUR Sumitomo Mitsui Banking Brussels, (0.39)%, 01/11/2018 30,020 1.86 Total Japan 30,020 1.86

Netherlands 21,800,000 EUR Eads Financial Group, (0.39)%, 17/09/2018 21,804 1.35 50,000,000 EUR Eads Financial Group, (0.39)%, 28/09/2018 50,013 3.09 29,500,000 EUR ING Bank, (0.38)%, 11/10/2018 29,513 1.83 30,000,000 EUR ING Bank, (0.35)%, 23/11/2018 30,024 1.86 Total Netherlands 131,354 8.13

Sweden 20,000,000 EUR Svenska, (0.39)%, 05/12/2018 20,020 1.24 30,000,000 EUR Svenska, (0.37)%, 02/01/2019 30,038 1.86 20,000,000 EUR Svenska, (0.37)%, 08/02/2019 20,033 1.24 Total Sweden 70,091 4.34

24


The Euro Fund







Switzerland 15,000,000 EUR UBS, (0.38)%, 09/10/2018 15,006 0.93 Total Switzerland 15,006 0.93

United Kingdom 40,000,000 EUR Barclays, (0.32)%, 08/03/2019 40,067 2.48 Total United Kingdom 40,067 2.48

United States 5,500,000 EUR Proctor & Gamble, (0.39)%, 11/10/2018 5,502 0.34 5,000,000 EUR Proctor & Gamble, (0.39)%, 15/10/2018 5,003 0.31 7,000,000 EUR Proctor & Gamble, (0.39)%, 17/10/2018 7,004 0.43 30,000,000 EUR Proctor & Gamble, (0.39)%, 18/10/2018 30,015 1.86 13,400,000 EUR Proctor & Gamble, (0.37)%, 07/11/2018 13,409 0.83 9,000,000 EUR Proctor & Gamble, (0.37)%, 15/11/2018 9,007 0.56 6,000,000 EUR Proctor & Gamble, (0.37)%, 21/11/2018 6,005 0.37 Total United States 75,945 4.70


Term deposits

France 70,345,908 EUR BNP Paribas, (0.50)%, 03/09/2018 70,346 4.36 125,000,000 EUR Bred Banque Populaire, (0.48)%, 03/09/2018 125,000 7.75 Total France 195,346 12.11

Germany 75,000,000 EUR DZ Bank, (0.50)%, 03/09/2018 75,000 4.64 Total Germany 75,000 4.64



25


The Euro Fund





BONDS


Canada 18,300,000 EUR Bank of Nova Scotia, 0.06%, 10/09/2018 18,302 1.13 Total Canada 18,302 1.13

France 30,000,000 EUR Dexia Credit Local, 1.63%, 29/10/2018 30,098 1.86 Total France 30,098 1.86



Fair Value EUR '000


Total financial assets at fair value through profit or loss 1,694,643 104.93 Cash – – Other assets and liabilities (79,642) (4.93) Net asset value attributable to redeemable participating shareholders 1,615,001 100.00



26


Combined Statement of Financial Position As at 28 February 2019

Aggregated

Total Aggregated

Total* 28/02/2019 31/08/2018

for comparison Currency Note USD ‘000 USD ‘000 Current Assets Financial assets at fair value through profit or loss 2,7 - Investments at fair value 6,117,325 8,709,044 - Term Deposits and Treasury Bills 1,130,504 1,686,250 - Reverse repurchase agreement 1,622,428 - Cash at bank 3 131,219 205,489 Debtors 55,716 4,209 Total Current Assets 9,057,192 10,604,992

Current Liabilities - amounts payable within one year

Bank overdraft 7 - Creditors 624,577 1,050,437 Total Current Liabilities 624,584 1,050,437 Net assets attributable to redeemable participating shareholders 8,432,608 9,554,555 *The CAD Fund terminated on 23 August 2018.

The accompanying notes on pages 40 to 52 form an integral part of these financial statements.

27


Combined Statement of Comprehensive Income For the financial period ended 28 February 2019

*The CAD Fund terminated on 23 August 2018.


Aggregated Total

Aggregated Total*

28/02/2019 28/02/2018 for comparison

Currency Note USD ‘000 USD ‘000 Operating income Interest income 2 75,607 38,397 Realised gain(s) on Investments 70 25

Total Operating Income 75,677 38,422 Operating Expenses 4 Management fees (5,075) (4,766) Trailer Fees (1,022) (677) Net Operating Income 69,580 32,979 Finance Costs Distribution to redeemable participating shareholders (24,813) (8,421)

Increase in Net Assets Attributable to Redeemable Participating Shares from Operations 44,767 24,558 Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Statement of Comprehensive Income.

28


Combined Statement of Changes in Net Assets attributable to holders of redeemable participating shares For the financial period ended 28 February 2019

Aggregated Total

Aggregated Total

28/02/2019 28/02/2018 for comparison

Currency Note USD ‘000 USD ‘000 Increase in net assets attributable to redeemable participating shareholders 44,767 24,558

Fund Share Transactions

Proceeds from redeemable participating shares issued 27,965,647 13,531,156 Net asset value of participating shares issued for reinvestment of dividends - 8,376 Net asset value of participating shares redeemed for disinvestment of dividends - - Cost of redeemable participating shares redeemed (29,140,544) (14,095,355) Net decrease in net assets (1,130,130) (531,265) Net Assets Attributable to Redeemable Participating Shareholders At the beginning of the financial period

9,554,555 9,192,358

Foreign exchange translation adjustment 2 8,183 164,556

At the end of the financial period 8,432,608 8,825,649


29


Combined Statement of Cash Flows For the financial period ended 28 February 2019


Aggregated

Total Aggregated

Total 28/02/2019 28/02/2018 for comparison

Currency USD ‘000 USD ‘000

Operating activities

Net increase in net assets attributable to holders of redeemable participating shares from operations

44,767 24,558

Purchase of investment securities (246,672,775) (153,166,538) Proceeds from sale of investment securities 248,243,821

153,691,074

Net realised loss on investments (70) (25) (Increase)/Decrease in debtors excluding receivable for investments sold (43,325) 2,515 Decrease in creditors excluding payable for investments purchased (425,860) (177) Amortization of Discount/Premium (45,939) (27,750) Net cash provided by operating activities 1,100,619 523,657

Financing activities

Proceeds from issue of redeemable participating shares 27,965,648 13,531,155 Net asset value of participating shares issued for reinvestment of dividends - 8,375 Payments on redemption of redeemable participating shares (29,140,544) (14,095,356) Net cash used in financing activities (1,174,896) (555,826) Net decrease in cash and cash equivalents during the financial period (74,277) (32,169) Cash and cash equivalents at the start of the financial period 205,489 127,487

Cash and cash equivalents at the end of the financial period 131,212 95,318

30


Statement of Financial Position As at 28 February 2019

2018 for

comparison 2018 for

comparison 2018 for

comparison

Fund Name Note United States

Dollar United States

Dollar Sterling Sterling Euro Euro 28/02/2019 31/08/2018 28/02/2019 31/08/2018 28/02/2019 31/08/2018

Currency USD ‘000 USD ‘000 GBP ‘000 GBP ‘000 EUR ‘000 EUR ‘000 Current Assets Financial assets at fair value through profit or loss 2,7 - Investments at fair value 3,669,369 5,934,191 1,104,215 855,954 859,962 1,424,297 - Term Deposits and Treasury Bills 460,000 1,050,000 205,355 246,709 348,960 270,346 - Reverse repurchase agreement 1,250,000 - 280,000 - - - Cash at bank 3 131,218 205,489 - - 1 - Debtors 31,800 2,903 644 454 20,251 613 Total Current Assets 5,542,387 7,192,583 1,590,214 1,103,117 1,229,174 1,695,256 Current Liabilities - amounts payable within one year

Bank overdraft - - 5 - - -

Creditors 551,731 846,473 20,177 84,839 40,405 80,255 Total Current Liabilities 551,731 846,473 20,182 84,839 40,405 80,255 Net assets attributable to redeemable participating shareholders 4,990,656 6,346,110 1,570,032 1,018,278 1,188,769 1,615,001


31


Statement of Financial Position (continued) As at 28 February 2019

2018 for comparison 2018 for comparison 2018 for comparison

Fund Name United States


Dollar Sterling Sterling Euro Euro ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 Net Assets attributable redeemable participating shareholders 4,990,656 6,346,110 1,570,032 1,018,278 1,188,769 1,615,001 Accumulating Class A 2,651,112 3,658,423 809,375 503,373 1,156,673 1,375,047 Flex Distributing Class A 616,707 395,189 271,247 226,152 - 64,133 Accumulating Class B 7,283 6,767 - - 11,509 215 Flex Distributing Class B 678,851 751,989 26,989 3,689 - 10,689 Accumulating Class C 262,162 620,194 - - - - Flex Distributing Class C 297,968 212,948 - - - - Stanlib Short-Term Money Market Class 39,391 126,064 1,665 1,075 20,587 19,051 Flex Distributing Class F 437,182 574,536 2,102 2,296 - 145,866 ICGAC Sterling Class C Accumulation - - 458,654 281,693 - - Shares Redeemable participating Shares Outstanding Accumulating Class A 149,518 208,699 38,865 24,248 83,270 98,765 Flex Distributing Class A 616,694,986 395,188,686 271,249,428 226,151,864 - 64,132,961 Accumulating Class B 631 592 - - 1,044 19 Flex Distributing Class B 678,840,820 751,989,365 26,989,209 3,689,171 - 10,688,962 Accumulating Class C 25,306 60,600 - - - - Flex Distributing Class C 297,963,255 212,947,569 - - - - Stanlib Short-Term Money Market Class 3,782 12,238 162 105 2,075 1,916 Flex Distributing Class F 437,177,318 574,535,629 2,101,754 2,296,200 - 145,866,141 ICGAC Sterling Class C Accumulation - - 45,408 27,998 - -


32


Statement of Financial Position (continued) As at 28 February 2019




Dollar Sterling Sterling Euro Euro ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 Shares Net Asset value per redeemable participating shares Accumulating Class A 17,731.12 17,529.69 20,825.30 20,758.99 13,890.57 13,922.52 Flex Distributing Class A 1.00 1.00 1.00 1.00 - 1.00 Accumulating Class B 11,542.17 11,425.16 - - 11,023.71 11,048.45 Flex Distributing Class B 1.00 1.00 1.00 1.00 - 1.00 Accumulating Class C 10,359.54 10,234.23 - - - - Flex Distributing Class C 1.00 1.00 - - - - Stanlib Short-Term Money Market Class 10,416.84 10,301.03 10,279.27 10,236.98 9,921.33 9,945.16 Flex Distributing Class F 1.00 1.00 1.00 1.00 - 1.00 ICGAC Sterling Class C Accumulation - - 10,100.73 10,061.05 - -

33


Statement of Comprehensive Income For the financial period ended 28 February 2019




Dollar Sterling Sterling Euro Euro 2019 2018 2019 2018 2019 2018

Currency Note ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 Operating income

Interest Income / (Loss) 2 72,175 39,722 5,182 2,169 (2,853) (3,695) Realised gain(s) on Investments 88 7 (14) 2 - 13

Total Operating Income / (Loss) 72,263 39,729 5,168 2,171 (2,853) (3,682) Operating Expenses 4 Management fees (3,825) (3,389) (679) (603) (327) (445) Trailer Fees (984) (648) (13) (1) (18) (3) Net Operating Income / (Loss) 67,454 35,692 4,476 1,567 (3,198) (4,130) Finance Costs Distribution to redeemable participating shareholders (24,279) (8,968) (813) (299) 452 851

Net Increase / (Decrease) in Net Assets Attributable to Redeemable Participating Shares from Operations

43,175 26,724 3,663 1,268 (2,746) (3,279)

Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Statement of Comprehensive Income.


34


Statement of Changes in Net Assets attributable to holders of redeemable participating shares For the financial period ended 28 February 2019

for comparison for comparison for comparison



Dollar Sterling Sterling Euro Euro 2019 2018 2019 2018 2019 2018

Currency ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 Increase / (Decrease) in net assets attributable to redeemable participating shareholders

43,175 26,724 3,663 1,268 (2,746) (3,279)

Fund Share Transactions Proceeds from redeemable participating shares issued 17,636,647 9,007,308 4,054,215 1,573,983 4,449,035 1,968,980 Net asset value of participating shares issued for reinvestment of dividends - 7,913

290 - -

Cost of redeemable participating shares redeemed (19,035,276) (8,766,275) (3,506,124) (1,542,206) (4,872,521) (2,689,095) Net (Decrease) / increase in net assets (1,355,454) 275,670 551,754 33,335 (426,232) (723,394),

Net Assets Attributable to Redeemable Participating Shareholders At the beginning of the financial period 6,346,110 5,150,158 1,018,278 1,143,563 1,615,001 2,143,850 At the end of the financial period 4,990,656 5,425,828 1,570,032 1,176,898 1,188,769 1,420,456


35


Statement of Changes in Net Assets (continued) attributable to holders of redeemable participating shares For the financial period ended 28 February 2019




Dollar Sterling Sterling Euro Euro ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 Share Transaction (Units Rounded)

Redeemable participating shares outstanding at beginning of period

Accumulating Class A 208,699 179,965 24,248 31,556 98,765 116,713 Flex Distributing Class A 395,188,686 238,251,532 226,151,864 212,230,534 64,132,961 65,283,533 Accumulating Class B 592 820 - - 19 30 Flex Distributing Class B 751,989,365 502,996,244 3,689,171 392,107 10,688,962 11,349,902 Accumulating Class C 60,600 48,861 - - - - Flex Distributing Class C 212,947,569 361,942,114 - - - - Accumulating Class D - - - 1 - 1 Stanlib Short-Term Money Market Class 12,238 27,315 105 118 1,916 1,599 Flex Distributing Class F 574,535,629 166,252,964 2,296,200 4,473,200 145,866,141 418,218,231 ICGAC Sterling Class C Accumulation - - 27,998 27,207 - - Total redeemable participating shares subscribed Accumulating Class A 612,773 1,605,372 131,754 280,814 283,541 640,881 Flex Distributing Class A 4,917,791,866 8,667,763,587 521,368,287 918,675,949 41,905,019 195,151,000 Accumulating Class B 4,533 997 - - 1,043 62 Flex Distributing Class B 269,514,049 578,466,462 27,395,433 4,156,454 908,528 100,803 Accumulating Class C 23,035 85,892 - - - - Flex Distributing Class C 437,777,489 828,334,016 - - - - Accumulating Class D - - - - - - Stanlib Short-Term Money Market Class 6,675 16,043 57 - 486 776 Flex Distributing Class F 852,540,078 2,073,790,465 42,880,245 60,045,925 446,977,261 1,081,289,847 ICGAC Sterling Class C Accumulation - - 71,725 44,979 - -


36


Statement of Changes in Net Assets (continued) attributable to holders of redeemable participating shares For the financial period ended 28 February 2019




Dollar Sterling Sterling Euro Euro ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 Total redeemable participating shares redeemed Accumulating Class A 671,954 1,576,638 117,137 288,122 299,035 658,829 Flex Distributing Class A 4,696,285,566 8,510,826,433 476,270,723 904,754,619 106,037,980 196,301,572 Accumulating Class B 4,494 1,225 - - 18 73 Flex Distributing Class B 342,662,594 329,473,341 4,095,395 859,390 11,597,490 761,743 Accumulating Class C 58,329 74,153 - - - - Flex Distributing Class C 352,761,803 977,328,561 - - - - Accumulating Class D - - - 1 - 1 Stanlib Short-Term Money Market Class 15,131 31,120 - 13 327 459 Flex Distributing Class F 989,898,389 1,665,507,800 43,074,691 62,222,925 592,843,402 1,353,641,937 ICGAC Sterling Class C Accumulation - - 54,315 44,188 - - Redeemable participating shares outstanding at end of period Accumulating Class A 149,518 208,699 38,865 24,248 83,270 98,765 Flex Distributing Class A 616,694,986 395,188,686 271,249,428 226,151,864 - 64,132,961 Accumulating Class B 631 592 - - 1,044 19 Flex Distributing Class B 678,840,820 751,989,365 26,989,209 3,689,171 - 10,688,962 Accumulating Class C 25,306 60,600 - - - - Flex Distributing Class C 297,963,255 212,947,569 - - - - Accumulating Class D - - - - - - Stanlib Short-Term Money Market Class 3,782 12,238 162 105 2,075 1,916 Flex Distributing Class F 437,177,318 574,535,629 2,101,754 2,296,200 - 145,866,141 ICGAC Sterling Class C Accumulation - - 45,408 27,998 - -

The accompanying notes on pages 40 to 52 form an integral part of these financial statements

37


Statement of Cash Flows For the financial period ended 28 February 2019

2018 for comparison

2018 for comparison

2018 for comparison



Dollar Sterling Sterling Euro Euro 28/02/2019 28/02/2018 28/02/2019 28/02/2018 28/02/2019 28/02/2018

Currency USD ‘000 USD ‘000 GBP ‘000 GBP ‘000 EUR ‘000 EUR ‘000 Operating activities Net increase/(decrease) in net assets attributable to holders of redeemable participating shares from operations 43,175 26,724 3,663 1,268 (2,746) (3,279) Purchase of investment securities (139,108,211) (70,228,701) (45,786,466) (27,625,755) (42,303,353) (37,172,116) Proceeds from sale of investment securities 140,758,560 69,950,266 45,301,866 27,592,905 42,786,889 37,891,578 Net realised (loss)/gain on investments (88) (7) 14 (2) - (13) (Increase)/Decrease in debtors excluding receivable for investments sold (28,897) 599 (190) 603 (19,634) 899 Decrease in creditors excluding payable for investments purchased (294,742) (48) (64,662) (13) (39,853) (93) Amortization of Discount/Premium (45,439) (29,946) (2,321) (1,073) 2,184 3,139 Net cash provided by / (used in) operating activities 1,324,358 (281,113) (548,096) (32,067) 423,487 720,115

Financing activities Proceeds from issue of redeemable participating shares 17,636,647 9,007,307 4,054,215 1,573,984 4,449,035 1,968,980 Net asset value of participating shares issued for reinvestment of dividends - 7,913 - 290 - - Payments on redemption of redeemable participating shares (19,035,276) (8,766,275) (3,506,124) (1,542,207) (4,872,521) (2,689,095) Net cash (used in) / provided by financing activities (1,398,629) 248,945 548,091 32,067 (423,486) (720,115) Net (decrease) / increase in cash and cash equivalents during the financial period (74,271) (32,168) (5) - 1 - Cash and cash equivalents at the start of the financial period 205,489 127,487 - - - - Cash and cash equivalents at the end of the financial period 131,218 95,319 (5) - 1 - The accompanying notes on pages 40 to 52 form an integral part of these financial statements.

38


Notes to the Financial Statements


1. General The Company is an open ended investment company with variable capital organised under the laws of Ireland as a public limited company pursuant to the Irish Companies Act 2014 and is listed on Euronext Dublin (formerly the Irish Stock Exchange). It was incorporated on 29 June 1995 under registration number 235175. The authorisation of the Company is not an endorsement or guarantee of the Company or its performance by the Central Bank. Its object, as set out in clause 2 of the Company’s Memorandum and Articles of Association, is the collective investment in either or both transferable securities and other liquid financial assets referred to in Regulation 68 of the UCITS Regulations and the Central Bank (Supervision and Enforcement) Act 2013 (section 48(1)) UCITS Regulations 2015 (as amended), (the “Central Bank UCITS Regulations”) of capital raised from the public and which operates on the basis of risk spreading. At present the Company’s shares represent interests in The United States Dollar Fund, The Sterling Fund and The Euro Fund, each relating to a separate portfolio of securities, cash and other net assets. 2. Significant Accounting Policies The significant accounting policies adopted by the Company are as follows: (a) Basis of Preparation The financial statements of the Company and Funds are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS’), interpretations adopted by the International Accounting Standards Board (‘IASB’), the Companies Act 2014 (as amended), applicable to Companies reporting under IFRS and certain requirements of the UCITS Regulations (the “Central Bank UCITS Regulations”) that apply to financial reports. The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss. The preparation of financial statements in conformity with IFRS requires the Directors to make certain accounting estimates and assumptions. Actual results may differ from those estimates and assumptions. It also requires the Directors to exercise critical judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Company’s financial statements are disclosed in Note 2. (b) Financial instruments at Fair Value through Profit or Loss Classification IFRS 13 establishes specific categories into which all financial assets and liabilities must be classified. The classification of financial instruments dictates how these assets and liabilities are measured in the financial statements. All investments held at the Statement of Financial Position date are categorised as assets at fair value through profit or loss. This category has two sub-categories: financial assets and liabilities held for trading and those designated by Directors at fair value through profit or loss at inception. All instruments traded on a regulated exchange are measured at fair value through profit or loss. Any short dated transferrable debt securities and money market instruments not traded on a regulated exchange are measured by means of the amortised cost method. Measurement Investments are initially recognised at fair value. Subsequent to initial recognition, all instruments classified at fair value through profit or loss are measured at fair value with changes in their fair value recognised in the Statement in Comprehensive Income. Commercial papers and certificates of deposit are shown with calculated yields in the Schedule of Investments. Financial instruments traded in active markets are based on quoted market prices at 28 February 2019. The quoted market price used for financial assets held by the Company is the last traded price (mark to market). In circumstances where the last traded price is not within the bid-ask spread, the Investment Manager will determine the point where the bid-ask spread is most representative of fair value. Repurchase Agreement investments are valued using last traded price (mark to market) as at 28 February 2019. The Company may invest in securities that are not traded in an active market (for example in over-the-counter money market instruments). The fair value of these investments is determined by using a valuation technique. This is a matrix based technique which calculates a fair value price based on the correlation of spot to 12 month LIBOR rates and length of time to maturity of each asset in this category. The Company does not own any restricted securities. All holdings are either quoted on an official exchange and those that aren’t are valued at amortised cost.

39



For the financial period ended 28 February 2019 (continued) Recognition/de-recognition of investments Purchases and sales of investments are recognised on trade date, the date on which the Company commits to purchase or sell the asset. Investments are initially recognised at fair value. Transaction costs for all financial assets and liabilities carried at fair value through profit or loss are recognised as incurred. Subsequent to initial recognition, all investments continue to be classified at fair value through profit or loss, and the changes in fair value are recognised as net unrealised gain/loss on investments in the Statement of Comprehensive Income in the period in which they arise. Investments are derecognised when the contractual rights to the cash-flows from the financial asset expire or a Fund has transferred the financial asset and the transfer qualifies for de-recognition in accordance with IAS 39. A financial liability is de-recognised when the obligation specified in the contract is discharged, cancelled or has expired. Realised gains and losses on sales of investments are calculated based on the average cost of the investment in local currency and are recognised in net realised gain/loss on investments in the Statement of Comprehensive Income in the period in which they arise. Realised gains and losses on investment transactions in debt instruments are calculated as the difference between sales proceeds and the historic cost of the instrument based on a First In First Out (“FIFO”). Financial liabilities Financial liabilities, other than those at fair value through profit or loss, are measured at amortised cost. Financial liabilities are classified according to the substance of the contractual arrangements entered into. (c) Accounting for Income, Expenses and Fee Waivers Income from investment securities is accounted for in the Statement of Comprehensive Income using the effective interest method. The Funds pay all expenses allocated to the Funds, other than those expressly assumed by the Manager. To the extent that expenses are attributable to specific share classes of the Funds those share classes shall bear such expenses. All expenses are accrued on a daily basis. The fee waivers are calculated on an accruals basis and in line with all underlying agreements. They are recognised in the Statement of Comprehensive Income and details of same are shown in Note 4. (d) Cash and Cash Equivalents and cash due to/from broker Cash includes cash in hand and bank overdrafts held with the Depositary. Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash, are subject to insignificant risk of changes in value, and are held for the purposes of short-term cash commitments rather than for investment purposes. (e) Collateral Cash collateral provided by the Fund is identified in the statement of financial position under ‘margin accounts’ and is not included as a component of ‘cash and cash equivalents’. For collateral other than cash, if the party to whom the collateral is provided has the right by contract or custom to sell or re-pledge the collateral, the Fund classifies that asset in its statement of financial position separately from other assets and identifies the asset as pledged collateral. Where the party to whom the collateral is provided does not have the right to sell or re-pledge, the collateral provided is disclosed in the notes to the financial statements. (f) Distribution Re-investment Dividends paid to equity unitholders are recognised in the Statement of Changes in Equity when a Fund incurs a legal obligation to pay such a dividend. (g) Fund Shares Transactions The issue and redemption price of each Fund is based on the last calculated Net Asset Value per share. (h) Redeemable Participating Shares Redeemable participating shares are redeemable in accordance with the provisions of the Company’s Prospectus at the shareholder’s option and are classified as financial liabilities. The participating shares can be put back to the Company at any time for cash equal to a proportionate share of the applicable Funds’ Net Asset Value. The participating share is carried at the redemption amount that is payable at the balance sheet date if the shareholder exercised its right to put the share back to the Fund. (i) Creditors Trade creditors are initially measured at fair value, and subsequently measured at amortised cost, using the effective interest method. (j) Distributions Dividends paid to equity shareholders are recognised in the Statement of Comprehensive Income when a Fund incurs a legal obligation to pay such a dividend. (k) Foreign Exchange Items included in the Company’s financial statements are measured using the currency of the primary economic environment in which it operates (the ‘functional currency’). As functional currency is determined at the individual Fund level the functional currency in respect of each Fund is the United States Dollar for The United States Dollar Fund, the Pound Sterling for The Sterling Fund and the Euro for The Euro Fund. The presentation currency of these financial statements is USD; however, each Fund is stated in its respective currency of USD, GBP or EUR.

40



For the financial period ended 28 February 2019 (continued) (k) Foreign Exchange (continued) For aggregation purposes, assets and liabilities denominated in foreign currencies are converted into United States Dollars (‘USD’) at the exchange rates ruling at the Statement of Financial Position date. Foreign currency transactions are translated to the functional currency of the relevant Fund at the rate of exchange ruling on the date of the transaction. When an investment is sold, the foreign currency gain or loss based on the original cost of the transferable securities is recognised in the net gain or loss on investments at fair value in the Statements of Comprehensive Income. A foreign exchange translation adjustment is disclosed in the Combined Statement of Changes in Net Assets as at 28 February 2019 of USD’ 000 8,183 (28 February 2018 USD’ 000 164,556). Both are calculated by translating the 2019 and 2018 Total Net Assets using both the average exchange rate and the closing exchange rate and deducting one from the other. The conversion exchange rates used in the Combined Statement of Financial Position were as at the balance sheet date. Exchange Rates As at As at 28 February 2019 31 August 2018 Pound Sterling 0.751823 0.768935 Euro 0.878194 0.857140 Canadian Dollar -* 1.300170

The conversion exchange rates used in the Combined Statement of Comprehensive Income, the Combined Statement of Changes in Net Assets and Combined Statement of Cash Flows were the average rates for the period.

Average Exchange Rates For the period ended For the period ended 28 February 2019 28 February 2018 Pound Sterling 0.773874 0.734833 Euro 0.874049 0.833334 Canadian Dollar -* 1.265210

*The CAD Fund terminated on 23 August 2018. 3. Cash at Bank

Cash balances of the Funds are held with J.P. Morgan Bank (Ireland) plc.

4. Fees, Related Party and Connected Persons Disclosures Related Party Disclosures and Fees In the opinion of the Directors, the list of related parties under IAS 24 ‘Related Party transactions’ is as follows: FIL Limited - the ultimate holding company and owner of 100% of the following fellow subsidiary undertakings namely • FIL Fund Management (Ireland) Limited • FIL Investments International • FIL Distributors • Directors of the Company and their dependents Dealings with Connected Persons The Manager, the Depositary, their respective delegates and sub-delegates (excluding any non-group company sub-custodians appointed by the Depositary) and the associated or group companies of the Manager, the Depositary and their respective delegates and sub-delegates are considered to be connected persons of the Company for the purposes of the Central Bank UCITS Regulations. The following table details examples of the types of transaction entered into with counterparties that are connected persons:

Type of Transaction Counterparty Administrator J.P. Morgan Bank (Ireland) plc Depositary J.P. Morgan Bank (Ireland) plc General Distributor FIL Distributors Transfer Agent, Registrar & Secretary FIL Fund Management (Ireland) Limited Manager FIL Fund Management (Ireland) Limited Investment Manager FIL Investments International

Regulation 41(1) of the UCITS Regulations “Restrictions on transactions with connected persons” states that “a responsible person shall ensure that any transaction between a UCITS and a connected person is a) conducted at arm’s length; and b) in the best interests of the shareholders of the UCITS.”

41



For the financial period ended 28 February 2019 (continued) Dealings with Connected Persons (continued) In accordance with Regulations 78(4) of the Central Bank’s UCITS Regulations, the Management Company as the responsible person, is satisfied that (a) there are in place arrangements, as evidenced by written procedures, to ensure that the obligations that are prescribed by Regulation 41(1) are applied to all transactions with a connected person; and (b) all transactions with connected persons that were entered into during the period to which the report relates complied with the obligations that are prescribed by Regulation 41 (1). Fee Structure The Company has appointed the Manager, a related party, as its Management Company and the Manager is responsible for the investment management and general administration of the Company with power to delegate such functions subject to the overall supervision and control of such functions being retained by the Directors. The Manager also acts as the registrar and transfer agent of the Company. The Manager has appointed the Administrators as administrator of the Company. The Administrator is responsible for calculating the daily Net Asset Value of the shares of each Fund, maintaining the Funds’ books and records and preparing the Company’s annual and interim financial statements and other shareholder information. The Manager has also been appointed as Company Secretary. Pursuant to the Management Agreement dated 1 October 2005, the Manager earns a monthly unified fee, accrued daily and based on the total net assets of the Funds. This fee is split at share class level as follows: For the financial period ended 28 February 2019 and 28 February 2018, this fee was capped at 0.15% per annum of the Net Asset Value of each Fund. On Class B Shares the total fee was capped at 0.40%. This was split between a management fee of 0.15% and a shareholder services fee of 0.25%. On Class D Shares the total fee was capped at 0.20%. This was split between a management fee of 0.15% and a shareholder services fee of 0.05%. On the Stanlib Short Term Money Market Classes the total fee was capped at 0.20%, this was split between a management fee capped at 0.15% and an additional Stanlib management fee of 0.05%, which is calculated daily based on the Net Asset Value of the Class and paid monthly to Stanlib. Given the low yield/negative environment during the financial period, fees were partially waived on the following Funds: United States Dollar

Sterling Fund Euro Fund

Investment management fee waiver

USD ‘000 -

GBP ‘000 -

EUR ‘000 695

Trailer fee waiver - - 13 - - 708 *This includes a Stanlib Euro Short-Term Money Market class fee waiver of EUR 10,710. (2018: EUR Nil). **This includes a Stanlib Euro Short-Term Money Market class fee waiver of EUR 2,850. (2018: EUR 6,584). The Manager has delegated its discretionary powers of investment to FIL Investments International (‘FII’), as Investment Manager. FII was incorporated in United Kingdom and FIL Limited is the ultimate parent company. FII is authorised to receive a monthly investment manager fee from the Manager. From the unified fee described previously, the Manager discharges all fees and expenses, including depositary fees, administration fees, directors’ fees, audit fees transaction costs and any out of pocket expenses of the Manager, the Administrator, the Depositary, the Investment Manager, other service providers and the establishment costs of the Company. The Manager has appointed FIL Distributors (‘FILD’), as General Distributor of the Funds. FILD is also paid out of the unified fee. There are no additional fees or transaction costs above those disclosed as ongoing charges in the Key Investor Information Document for each share-class. Director’s Fees Certain officers and Directors of the Company are also directors, officers or employees of FIL Limited and/or its subsidiary undertakings (the ‘FIL Limited Group’) and as such do not receive Director’s fees from the Company. Denise Kinsella is an independent Director who is not an officer or employee of the FIL Limited Group and as such is entitled to receive Director’s fees from the Company. For the financial period ended 28 February 2019 total payments of USD 11,373 (2018: USD 12,211) were made to Directors in respect of Directors’ fees for the financial period. Cross-Investments There were no Funds invested in the other Funds of the Company during the financial period ended 28 February 2019 (31 August 2018: USD Nil).

42



For the financial period ended 28 February 2019 (continued)

5. Redeemable Participating Shares Redeemable participating shares are redeemable in accordance with the provisions of the Company’s Prospectus at the shareholder’s option and are classified as financial liabilities. The participating shares can be put back to the Company at any time for cash equal to a proportionate share of the Company’s Net Asset Value. The participating share is carried at the redemption amount that is payable at the balance sheet date if the shareholder exercised its right to put the share back to the Company. Significant Shareholders The following table details the number of shareholders with significant holdings of at least 20% of the relevant Funds and the aggregate value and percentage of that holding as at 28 February 2019 and 31 August 2018.

As at 28 February 2019 Number of Shareholders Subscriptions

‘000 Redemptions

‘000 Value of Holding

‘000 Holding %

of Fund The Euro Fund 1 254,000 280,000 269,510 22%

As at 31 August 2018 Number of Shareholders Subscriptions ‘000

Redemptions ‘000

Value of Holding ‘000

Holding % of Fund

The Euro Fund - - - - -

6. Debtors and Creditors

2018 For

Comparison 2018 For

Comparison 2018 For

Comparison US Dollar US Dollar Sterling Sterling Euro Euro

Debtors USD ‘000 USD ‘000 GBP ‘000 GBP ‘000 EUR ‘000 EUR ‘000 Receivable from subscriptions 24,930 1,528 - - 20,018 - Interest receivable 6,870 1,347 644 - 2 407 Distributions Receivable - - - 454 - 59 Other receivable - 28 - - 231 147

31,800 2,903 644 454 20,251 613 Creditors Payable for Redemptions - 103,010 - - - - Payable for investments purchased 549,330 741,448 19,909 84,736 40,057 - Interest payable - - - - 5 - Distributions payable 880 1,048 7 4 - 215 Fees payable 1,521 967 261 99 343 80,040

551,731 846,473 20,177 84,839 40,405 80,255

2018 For Comparison

Aggregated Total Aggregated Total Debtors USD ‘000 USD ‘000 Receivable from subscriptions 1,528

Receivable from investment sold 47,724 - Interest receivable 7,729 2,412 Distributions Receivable - 69 Other receivable 263 200

55,716 4,209 Creditors Payable for Redemptions - 103,010 Payable for investments purchased 621,424 851,647 Interest payable 6 - Distributions payable 889 1,304 Fees payable 2,258 94,476

624,577 1,050,437

43




7. Risk management Policies and Procedures The Board of Directors of FIL Limited has established a risk policy, a risk appetite statement and a number of other risk related policies for adoption throughout the FIL Limited Group. There is a clearly defined structure operating within a corporate governance and management framework that is designed to address the related business risks, including those arising from financial instruments. Risk management policies and procedures are updated according to market, industry and government initiatives and regulatory developments. It is the Board of Directors of the Company that is ultimately responsible for risk management but day to day management of the risk process has been delegated to other areas as appropriate. FIL Limited Group operates a ‘multiple lines of defence’ approach to risk management; also the risk control processes are comprehensive, multi-layered, both quantitative and qualitative and do not rely on any one risk measure or system. The primary responsibility for financial instrument risk management rests with the Investment Manager. On a regular basis each Fund is formally reviewed by the Investment Manager; the review covers multiple aspects of the Fund’s profile including trading activity, turnover, performance, structure, style profile and other relevant subjects. In addition to this review there is a formal Investment Risk Oversight Committee (‘IROC’), chaired by the head of the independent Investment Management Risk function, whose remit includes review of various risk and performance measures, liquidity and other investment risks. The Company is governed by the UCITS Regulations and with the Prospectus limits, are monitored and reported on by an independent Investment Compliance function. The Company has the capacity to enter into fully collateralised tri-party reverse repurchase agreement transactions with institutions the Investment Manager has determined are creditworthy and which are rated investment grade. At the financial period ended 28 February 2019 the United States Dollar Fund held a reverse repurchase agreement valued at $1,250,000,000 with collateral pledged of $900,013,614 and The Sterling Fund held a reverse repurchase agreement valued at £280,000,000 with collateral pledged of £140,000,001. The main risks arising are global risk exposure, credit, liquidity, counterparty, market price, foreign currency and interest rate risks and they, together with the risk management objectives, policies and procedures used to manage them are outlined below. FIL Fund Management (Ireland) Limited (“FFM(I)L”), Risk Management Policies and Procedures The Company maintains policies and procedures, as reviewed and considered by the Board.

The Company also adheres to other policies of the Fidelity Group, which address specific risk areas. Staff supporting the business of the Company are expected to be familiar with the policies and any internal sub-policies or standards which also contribute to the overall risk management and control environment.

The policies and procedures of the Company will be assessed and periodically reviewed by the Company to assess the adequacy of such policies and ensure their continued effectiveness. Global Risk Exposure The Funds are not required to calculate global exposure because it does not generate leverage through the re-investment of collateral. Credit Risk Credit risk arises as both counterparty and issuer credit risk. All security investments are transacted through brokers who have been approved by the FIL Limited Group as an acceptable counterparty. The list of approved brokers is reviewed regularly. There is a risk of loss if a counter-party fails to perform its financial or other obligations to a Fund, for example, the possibility that a counterparty may default by failed to make payments due, or fail to repay principal and interest in a timely manner. If settlement never occurs the loss incurred by the Fund will be the difference between the price of the original contract and the price of the replacement contract or, in the case where the contract is not replaced, the absolute value of the contract at the time it is voided. Furthermore, in some markets ‘Delivery versus Payment’ may not be possible in which case the absolute value of the contract is at risk if the Fund meets its settlement obligations but the counterparty fails before meeting its obligations under the relevant contract. The investments and cash of the Company are held with J.P. Morgan Bank (Ireland) plc (the ‘Depositary’). In the event of insolvency or bankruptcy of the Depositary, the Company’s investments are segregated from those of the Depositary or its agents. The Company will, however, be exposed to the credit risk of the Depositary, or any depositary used by the Depositary, in relation to the Company’s cash held by the Depositary. In the event of the insolvency or bankruptcy of the Depositary, the Company will be treated as a general creditor of the Depositary in relation to cash holdings of the Company. A Fund’s investments may be adversely affected if any of the institutions with which its money is deposited suffers insolvency or other financial difficulties. Credit risk also arises from the uncertainty surrounding the ultimate repayment of principal and interest or other debt instrument investments by the issuers of such securities. Although the Funds may invest in high quality credit instruments, there can be no assurance that the institutions or securities in which a Fund invests will not be subject to credit difficulties leading to the loss of some or all of the sums invested in such institutions, securities or other instruments.

44



For the financial period ended 28 February 2019 (continued) Credit Risk (continued) The credit quality of permitted investments is strictly monitored and investment grade debt securities will be rated A or higher for long term securities or rated A-1 or higher for short term securities. Each Fund invests only in investment grade debt securities. The following table breaks down the financial assets of the Company by rating category: As at 28 February 2019 Fund Rating United States Dollar Sterling Euro Short Term: A-1 63% 51% 57% A-1+ 24% 45% 41% A-2 13% 4% 2% 100% 100% 100%

As at 31 August 2018 Fund Rating United States Dollar Sterling Euro Short Term: A-1 45% 51% 53% A-1+ 55% 49% 47% 100% 100% 100%

Liquidity Risk Liquidity risk is the risk of a Fund having insufficient same day realisable cash, investments and borrowing capacity to fund redemption requests net of subscriptions. In normal market conditions, a Fund’s assets comprise mainly realisable securities which can be readily sold. A Fund’s liabilities arise primarily through its exposure to the redemption of any Shares that investors wish to sell. The Investment Manager endeavours to manage the Fund’s investments including cash, such that it can meet its liabilities. If investments cannot be realised in time to meet any potential liability, the Fund may borrow up to 10% of its Net Asset Value to provide short term cash to settle redemptions. It is expected that the weighted average maturity of each Fund will not exceed 60 days. However Fund redemptions may cause the average maturity to exceed 60 days temporarily and in the event of such an occurrence all best efforts will be made to reduce the average maturity to within 60 days. The Company has a committed facility arranged by J.P. Morgan Europe Limited and provided by a syndicate of international banks. If the Company receives aggregate requests for the redemption of shares in respect of 10% or more of the outstanding shares in any Fund or 10% or more of the Net Asset Value of the relevant Fund on any redemption day, the Company may elect to restrict the total number of shares redeemed to 10% of the outstanding shares in the Fund or to 10% of the Net Asset Value of the relevant Fund. In this case all requests will be scaled down on a pro-rata basis and shares which are not redeemed by reason of such refusal shall be treated as if a request for redemption had been made in respect of each subsequent redemption day until all shares to which the original request related have been redeemed. The remaining balance will be redeemed (subject always to the foregoing limit) in priority to subsequent redemption requests on the next redemption day. This procedure is in place to manage liquidity risk in the Company and to protect the interests of the remaining shareholders. As at 28 February 2019 (and as at 28 February 2018), redeemable participating shares are redeemable on demand, subject to the limitations described in the previous paragraph or during any period of temporary suspension of valuation of shares, sales and redemptions, and all other liabilities are repayable within one month. Market Risk Market Risk comprises Market Price Risk, Foreign Currency Risk, and Interest Rate Risk. Market Price Risk Market price risk arises from the uncertainty about future price movements on financial instruments held. It represents the potential loss the Company might suffer through holding market positions in the face of price movements. The value of investments is not fixed and may go down as well as up. This may be as a result of a specific factor affecting the value of an individual investment, or may be caused by general market factors. The Investment Manager considers the asset allocation of the portfolios in order to optimise the risk associated with particular countries or industry sectors whilst continuing to follow each Fund’s investment objective. The Investment Manager does not currently use derivative instruments to hedge the investment portfolios against market risk, as in its opinion the cost of such a process would result in an unacceptable reduction in the potential for capital growth.

45




Market Price Risk (continued) The table below summarises the sensitivity of each Fund’s net assets attributable to holders of redeemable shares to market price movements of bonds as at 28 February 2019 and 31 August 2018: Fund Effect of a 10% Gain Effect of a 10% decline Effect of a 10% Gain Effect of a 10% decline in market prices in market prices in market prices in market prices Currency 28 February 2019 28 February 2019 31 August 2018 31 August 2018 ‘000 ‘000 ‘000 ‘000 The United States Dollar

USD 137,500 (137,500) 62,500 (62,500)

The Euro Fund EUR 2,638 (2,638) 4,840 (4,840) The Sterling Fund GBP 42,614 (42,614) 11,316 (11,316) Fair Value Estimation IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); • Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as

prices) or indirectly (i.e. derived from prices) (Level 2); and • Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs) (Level 3). The determination of what constitutes ‘observable’ requires significant judgement by the Company. The Company considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The following tables analyse within the fair value hierarchy the Company’s financial assets measured at fair value as at 28 February 2019 and 31 August 2018:

2018 for comparison

2018 for comparison

2018 for comparison

Level 1 Level 2 Total Level 1 Level 2 Total The United States Dollar Fund ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 Financial assets at fair value through profit or loss - Debt Securities 2,065,290 125,000 2,190,290 1,799,537 125,000 1,924,537 - Term Deposits 460,000 - 460,000 550,000 - 550,000 - Money Market Securities 1,479,079 - 1,479,079 4,009,654 - 4,009,654 - Repurchase Agreement - 1,250,000 1,250,000 500,000 - 500,000

Total 4,004,369 1,375,000 5,379,369 6,859,191 125,000 6,984,191

Level 1 Level 2 Total Level 1 Level 2 Total The Sterling Fund ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 Financial assets at fair value through profit or loss - Debt Securities 489,368 113,997 603,365 338,478 64,999 403,477 - Treasury Bills & Government Bonds 32,139 - 32,139 - 48,161 48,161 - Term Deposits 205,355 - 205,355 198,548 - 198,548 - Money Market Securities 468,711 - 468,711 452,477 - 452,477 - Reverse Repurchase Agreement - 280,000 280,000 - - -

Total 1,195,573 393,997 1,589,570 989,503 113,160 1,102,663

Level 1 Level 2 Total Level 1 Level 2 Total The Euro Fund ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 Financial assets at fair value through profit or loss - Debt Securities 370,670 26,383 397,053 465,163 48,400 513,563 - Term Deposits 348,960 - 348,960 270,346 - 270,346 - Money Market Securities 462,909 - 462,909 910,734 - 910,734

Total 1,182,539 26,383 1,208,922 1,646,243 48,400 1,694,643

46



For the financial period ended 28 February 2019 (continued) Fair Value Estimation (continued) Instruments whose values are based on quoted market prices in active markets are classified within Level 1. The Company does not adjust the quoted price for these instruments. The Company uses valuation techniques to derive the fair value of certain short debt transferable securities classified within Level 2. Instruments whose values are based on evaluated market prices (adjusted by the vendor) are also classified within this Level. The Company does not have any Level 3 measurements. Transfers between levels of the fair value hierarchy are deemed to have occurred at the end of the financial period and are deemed to have occurred when the pricing source or methodology used to price an investment has changed which triggers a change in the level as defined under IFRS 13. There have been no significant transfers between the levels of the fair value hierarchy from 31 August 2018 to 28 February 2019. Foreign Currency Risk There is no foreign currency risk as each Fund only holds assets in the same currency as the currency of the shares in issue. Interest Rate Risk Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a fixed rate debt security can fall when interest rates rise and can rise when interest rates fall. Securities with longer maturity dates can be more sensitive to interest rate changes. As the permitted investments of the Funds’ entail trading in interest bearing securities, there is an exposure to interest rate risk. The Investment Manager manages this exposure by generally investing in instruments whose maturity or interest rate re-fixing date is less than 397 days. The Funds’ investment portfolio yield profiles are monitored regularly in pursuance of the investment objectives and policies as set out in the Prospectus of the Company. In adverse market conditions, a Funds’ investments may yield zero or negative returns which may impact on the return of a Fund and result in negative investment income. The interest rate profiles of the financial assets of each Fund as at 28 February 2019 and 31 August 2018 were as follows:

Fund United States Dollar Sterling Euro

28 February 2019 Fixed Interest Rate Securities - Weighted Average Interest Rate (%)1

1.52 0.48 (0.14) - Weighted Average Period until Maturity (days)2

37 57 54 31 August 2018 Fixed Interest Rate Securities - Weighted Average Interest Rate (%)1

3.00 0.67 (0.37) - Weighted Average Period until Maturity (days)2

41 49 41

1The Weighted Average Interest Rate is calculated on the par value of the underlying securities. This Weighted Average Interest Rate is not calculated on the same basis as the Fund Yield disclosed in the Investment Manager’s Overview. The Yields presented in the Overview are calculated based on market values rather than par values. 2Please note that only fixed interest securities have been included in the calculation of the above Weighted Average Period until Maturity (‘WAMs’). If all portfolio securities were included, the WAMs would be: 45 (ILFUSD), 49 (ILFGBP) & 41 (ILFEUR). The table overleaf summaries the exposure of the Funds to interest rate risk as at 28 February 2019 and 31 August 2018. It includes the Funds’ financials assets and funds liabilities at fair values, categorized by the earlier of contractual re-pricing or maturity dates.

47



For the financial period ended 28 February 2019 (continued) Interest Rate Risk (continued) The United States Dollar Fund As at 28 February 2019

Less than 1 month

USD ‘000

1 month 3 months USD ‘000

Over 3 months

USD ‘000

Non Interest Bearing

USD ‘000

Total

USD ‘000 Current Assets 2,559,600 2,236,578 583,191 163,018 5,542,387 Current Liabilities - - - (5,542,387) (5,542,387)

Interest sensitivity gap 2,559,600 2,236,578 583,191 (5,379,369) -


USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 Current Assets 2,810,321 3,423,252 750,618 208,392 7,192,583 Current Liabilities - - - (7,192,583) (7,192,583) Interest sensitivity gap 2,810,321 3,423,252 750,618 (6,984,191) -

The Sterling Fund

Less than 1

month

1 month

3 months

Over 3

months

Non Interest

Bearing

Total As at 28 February 2019 GBP ‘000 GBP ‘000 GBP ‘000 GBP ‘000 GBP ‘000 Current Assets 902,264 375,761 311,545 644 1,590,214 Current Liabilities - - - (1,590,214) (1,590,214) Interest sensitivity gap 902,264 375,761 311,545 (1,589,570) -

As at 31 August 2018 GBP ‘000 GBP ‘000 GBP ‘000 GBP ‘000 GBP ‘000 Current Assets 589,008 271,839 241,816 454 1,103,117 Current Liabilities - - - (1,103,117) (1,103,117) Interest sensitivity gap 589,008 271,839 241,816 (1,102,663) - The Euro Fund As at 28 February 2019

Less than 1 month

EUR ‘000

1 month 3 months EUR ‘000

Over 3 months

EUR ‘000

Non Interest Bearing

EUR ‘000

Total

EUR ‘000 Current Assets 574,484 337,661 296,777 20,252 1,229,174 Current Liabilities - - - (1,229,174) (1,229,174) Interest sensitivity gap 574,484 337,661 296,777 (1,208,922) -

As at 31 August 2018 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000 Current Assets 733,029 761,333 200,281 613 1,695,256 Current Liabilities - - - (1,695,256) (1,695,256) Interest sensitivity gap 733,029 761,333 200,281 (1,694,643) - The sensitivity to changes in interest rates are assessed in the below tables: Should interest rates have fallen by 50 basis points (0.5%) with all other variables remaining constant, the increase in net assets attributable to holders of redeemable shares for the period would be:

Fund United States Dollar Sterling Euro Currency 28 February 2019

USD ‘000 268,968

GBP ‘000 79,479

EUR ‘000 60,446

31 August 2018 3,076 524 766

If interest rates had risen by 50 basis points (0.5%), with all other variables remaining constant, the decrease in net assets attributable to holders of redeemable shares would be:

Fund United States Dollar Sterling Euro Currency 28 February 2019

USD ‘000 (268,968)

GBP ‘000 (79,479)

EUR ‘000 (60,446)

31 August 2018 (3,076) (524) (766)

48



For the financial period ended 28 February 2019 (continued) Interest Rate Risk (continued) The Investment Manager uses an independent risk model to estimate the instrument level profit or loss impact of shifts in market parameters. The Fund level profit or loss is an aggregation of instrument profit or loss based on current holdings. The Fund has direct exposure to interest rate changes on the valuation and cash flows of its interest bearing assets and liabilities. However, it may also be indirectly affected by the impact of interest rate changes on the earnings of certain companies in which the Fund invests. The Investment Manager monitors the Funds’ characteristics in detail with the Investment Manager at least quarterly and in some cases monthly. The Investment Manager also reviews each Fund’s portfolio characteristics in their entirety. This review may include as appropriate a review of capitalisation, distribution, industry sector weights, price/book levels, portfolio duration, sector exposure, quality exposure and other key risk measures. The Funds’ other price risk is managed in accordance with the UCITS Regulations and the limits set forth in the Prospectus as described in the section “Investment Objectives and Risk”. Capital Risk Management The capital of the Funds is represented by the net assets attributable to holders of redeemable shares. The amount of net assets attributable to holders of redeemable shares is subject to subscriptions and redemptions at the discretion of the shareholders as well as changes resulting from the Company’s performance. Each Fund’s capital is managed by the Investment Manager so as to provide returns for shareholders and enable redemption requests to be met. In order to manage the Funds’ capital structure, arrangements are in place to: • Monitor liquidity relative to the assets under management and the dealing cycle. • Make appropriate adjustments to distributions the Funds pays to redeeming shareholders. • Redeem and issue new shares in accordance with the constitutional documents of the Company, which permit the restriction

of redemptions in certain circumstances and require certain minimum holdings and subscriptions. Efficient Portfolio Management Efficient portfolio management means investment techniques involving transactions that are entered into for one or more of the following specific aims: the reduction of risk, the reduction of cost, or the generation of additional capital or income for the Fund with an appropriate level or risk, taking into account the risk profile of the Fund. New techniques and instruments may be developed which may be suitable for use by the Fund and the Fund (subject as aforesaid and to the requirements of the Central Bank) may employ such techniques and instruments. The Fund may, for efficient portfolio management purposes only, and in accordance with the conditions and limits imposed by the Central Bank, without limitation use transferable securities, liquid financial assets, derivative instruments, money market instruments, units of collective investment schemes and deposits and techniques and instruments relating to transferable securities and money market instruments employed by the Company for efficient portfolio management.

During the financial period ended 28 February 2019 the United States Dollar Fund & the Sterling Fund held repurchase agreements valued at $1,250,000,000 & £280,000,000 for the purpose of efficient portfolio management. 2018 (The United States Dollar Fund - $500,000,000 & The Sterling Fund - Nil).

8. Taxation Under current law and practice the Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. On that basis, it is not chargeable to Irish tax on its income or gains. However, Irish tax may arise on the happening of a ‘chargeable event’. A chargeable event includes any distribution payments to shareholders, any encashment, redemption, cancellation or transfer of shares and the holding of shares at the end of each eight year period beginning with the acquisition of such shares. No Irish tax will arise on the Company in respect of chargeable events in respect of: a) a shareholder who is neither Irish resident nor ordinarily resident in Ireland for tax purposes, at the time of the chargeable event, provided appropriate valid declarations in accordance with the provisions of the Taxes Consolidation Act, 1997, as amended, are held by the Company or the Company has been authorised by the Irish Revenue to make gross payments in the absence of appropriate declarations; and b) certain exempted Irish tax resident shareholders who have provided the Company with the necessary signed statutory declarations. Dividends, interest and capital gains (if any) received on investments made by the Company may be subject to taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Company or its shareholders.

49




9. Dividends It is policy of the Company to distribute and reinvest dividends on a daily basis (with the exception of Flex Distributing Class F shares which are reinvested on a monthly basis) based on the net investment income available for distribution (including interest income) and the excess of realised capital gains over realised losses, if any, in respect of investments of the Company. No distributions were declared from capital. In respect of Accumulating shares, the Directors have determined to accumulate all net income and net realised capital gains attributable to the redeemable participating shares. The following dividends were declared during the period ended 28 February 2019 and 28 February 2018:

Fund The United States Dollar Fund The Sterling Fund The Euro Fund

28 February 2019

USD $ 24,278,571 GBP £ 813,038

EUR (€452,234)*

28 February 2018

USD $8,968,000 GBP £299,000

EUR (€851,000)*

The following dividends were payable during the period:

Fund 28 February 2019 31 August 2018 The United States Dollar Fund The Sterling Fund The Euro Fund

USD $880,029 GBP £6,689

-

USD $1,047,529 GBP £4,265

EUR(€59,161)* * Disinvestment of dividends due to negative income. Dividend per share amounts on each sub fund are immaterial to disclose. 10. Segregated Liability The Company is established as an umbrella fund with segregated liability between Funds. Pursuant to the Companies Act 2014 (as amended), the assets of one Fund are not available to satisfy the liabilities of, or attributable to, another Fund. Any liability incurred or attributable to any one Fund may only be discharged solely out of the assets of that Fund. However, the Company may operate or have assets in countries other than Ireland which may not recognise segregation between Funds and there is no guarantee that creditors of one Fund will not seek to enforce one Fund’s obligations against another Fund. 11. Share Capital The Authorised Share Capital is one trillion shares of no par value. As at 28 February 2019 there were 7 (31 August 2018: 7) subscriber shares in issue and 2,331,366,831 (31 August 2018: 2,387,921,730) participating shares in issue. Subscriber Shares do not form any part of the Net Asset Value of the Company. They are disclosed in the financial statements by way of this Note only. Holders of Subscriber Shares are not entitled to dividends or any surplus of assets or liabilities upon the winding up of the Company. There are some differences in the voting rights in respect of the Flex Distributing Share Classes detailed below: In The Euro Fund and the Sterling Fund Flex Distributing Shares may be issued in the following Classes, Class A, Class B and Class F. In The United States Dollar Fund, Flex Distributing Shares may be issued in the following Classes; Class A, Class B, Class C and Class F. Flex Distributing Shares shall be issued in two Series. • Series 1 shall comprise Shares with full voting rights. • Series 2 shall comprise Shares with restricted voting rights in respect of any resolution relating to the appointment, removal

or replacement of a Director of the Company. 12. Soft Commissions From 3 January 2018, as a result of the Markets in Financial Instruments Directive II (“MiFID II”) adopted by ESMA, research and advisory services are no longer paid out of commissions arising from the Company’s portfolio transactions. There were no costs incurred by the Company during the financial period (2018: None).

50

Fidelity Institutional Liquidity Fund plc Notes to the Financial Statements


13. Significant events during the financial periodOn 31 August 2018, the Central Bank noted an administration agreement between the Manager and J.P. Morgan Administration Services (Ireland) Limited (“JP Morgan”) pursuant to which the Manager delegated certain administrative functions in respect of the Company (exclusive of registrar and transfer agency services) to JP Morgan with effect from 00:01 on 1 September 2018.

On 3 September 2018, the Central Bank noted the second addendum to the prospectus of the Company dated 19 January 2018 reflecting the appointment of the Administrators of the Company, the closure of The Canadian Dollar Fund and changes in the composition of the boards of the Company and the Manager.

The EU Money Market Fund Regulation (EU 2017/1131), (the “MMF Regulation”), came into force on the 21 July 2018 and applied to new money market funds from that date. It applies to existing MMFs from 21 January 2019.

Article 44(1) of the MMF Regulation requires existing UCITS and AIFs, that fall within the scope of the MMF Regulation, to submit an application for authorisation to the Central Bank.

In the context of the Fidelity Institutional Liquidity Fund the United States Dollar Fund, the Sterling Fund and the Euro Fund are all adopting the low volatility NAV’s to comply with the new Regulation.

14. Post Balance Sheet Events

Following the United Kingdom vote to leave the European Union (EU) on 23 June 2016, commonly referred to as “BREXIT”, the Company and the wider Fidelity International Group have been considering the implications of BREXIT. While at the time of finalisation of these financial statements, the ultimate outcome is still uncertain, the Board has considered the key risks and possible impacts, including the impact of a ‘hard’ or negative BREXIT outcome. Specific BREXIT related management actions have included availing of the UK regulator FCA Temporary Permission Regime (“TPR”) in March 2019.

There were no other significant events since the financial period end that require disclosure in these financial statements.

15. Approval of Financial StatementsThe Directors approved the Financial Statements on 29 April 2019.

51

Fidelity Institutional Liquidity Fund plc Statement of Changes in Investments



Listed below are the material cumulative investments purchases and sales during the financial period ended 28 February 2019. In accordance with UCITS Regulations, a material change is defined as aggregate purchases and sales of a security exceeding 1 per cent of the total value of purchases and sales respectively. If there are fewer than 20 material changes the Fund shall disclose at least 20 purchases/sales.

Security

Major purchases for the financial period ended

28 February 2019 USD ‘000

Major sales for the financial period

ended 28 February 2019 USD ‘000

Credit Agricole SA 2.74% 08/04/2019 250,000 BNP Paribas SA 2.77% 16/04/2019 250,000 Kingdom of the Netherlands 0.00% 02/10/2018 249,787 Cooperatieve Rabobank UA 0.00% 04/04/2019 243,418 Deutsche Bahn AG 0.00% 04/10/2018 199,644 Credit Agricole SA 2.38% 02/01/2019 175,000 State of the Netherlands 0.00% 29/10/2018 162,858 Bank of Montreal 0.00% 01/10/2018 149,768 Mitsubishi Corp. Finance plc 0.00% 04/02/2019 149,677 Santander UK plc 0.00% 01/04/2019 148,999 Nestle Finance International Ltd. 0.00% 07/12/2018 127,755 Landeskreditbank Baden-Wuerttemberg Foerderbank 0.00% 04/01/2019 127,009 Oversea-Chinese Banking Corp. Ltd. 0.00% 04/01/2019 125,224 Mizuho Bank Ltd. 2.81% 01/03/2019 125,000 Standard Chartered Bank 2.88% 27/03/2019 125,000 MUFG Bank Ltd. 2.77% 01/04/2019 125,000 Kingdom of the Netherlands 0.00% 07/01/2019 124,835 Mitsubishi Corp. Finance plc 0.00% 14/12/2018 124,756 KBC Bank NV 0.00% 02/01/2019 124,408 Cooperatieve Rabobank UA 0.00% 04/01/2019 124,244 Cooperatieve Rabobank UA 0.00% 04/01/2019 124,296 Kingdom of the Netherlands 0.00% 07/01/2019 99,897 DekaBank Deutsche Girozentrale 0.00% 25/01/2019 54,864 KBC Bank NV 0.00% 06/11/2018 49,914 Credit Agricole Corporate and Investment Bank 0.00% 13/11/2018 24,962 La Banque postale 0.00% 17/01/2019 24,953 Sumitomo Mitsui Trust Bank Ltd. 0.00% 09/04/2019 24,931

A full list is available from the Administrator upon request.

52

Fidelity Institutional Liquidity Fund plc Statement of Changes in Investments


The Sterling Fund


Security

Major purchases for the financial period ended 28

February 2019 GBP ‘000

Major sales for the financial period ended 28 February 2019

GBP ‘000

Svenska Handelsbanken AB 0.76% 14/01/2019 50,001 MUFG Bank Ltd. 0.79% 02/01/2019 50,000 Agence Centrale des Organismes de Securite Sociale 0.00% 29/10/2018 49,986 Sumitomo Trust and Banking Co. Ltd. 0.00% 02/01/2019 49,898 Toyota Motor Finance (Netherlands) BV 0.00% 26/09/2018 44,994 Toyota Kreditbank GmbH 0.00% 10/04/2019 35,921 Credit Agricole SA 0.77% 02/01/2019 35,000 Lloyds Bank plc 0.88% 28/05/2019 35,000 Mizuho Bank Ltd. 0.00% 01/03/2019 34,916 ABN AMRO Bank NV 0.00% 07/02/2019 34,912 Swedbank AB 0.00% 27/08/2019 34,846 DekaBank Deutsche Girozentrale 0.00% 13/02/2019 31,930 Agence Centrale des Organismes de Securite Sociale 0.00% 15/11/2018 31,495 Rabobank International 0.97% 20/05/2019 30,006 Dexia Credit Local SA 0.98% 14/10/2019 30,000 HSBC Bank plc 0.93% 03/11/2019 30,000 Kingdom of Denmark 0.00% 15/11/2018 29,991 DBS Bank Ltd. 0.00% 27/03/2019 29,934 Santander UK plc 0.00% 05/03/2019 29,932 Agence Centrale des Organismes de Securite Sociale 0.00% 15/03/2019 29,913 ABN AMRO Bank NV 0.00% 07/02/2019 34,945 DekaBank Deutsche Girozentrale 0.00% 13/02/2019 31,958 Standard Chartered Bank 0.00% 25/01/2019 24,980 Sumitomo Mitsui Banking Corp. 0.00% 13/12/2018 24,978 Mizuho Bank Ltd. 0.00% 16/01/2019 24,956 Citibank NA 0.79% 10/12/2018 22,001 Sumitomo Mitsui Banking Corp. 0.87% 05/02/2019 19,966 Banque Federative du Credit Mutuel SA 0.00% 14/09/2018 16,498 Honda Finance Europe plc 0.00% 19/02/2019 14,970 ABN AMRO Bank NV 0.73% 09/11/2018 10,000


53


Statement of Changes in Investments


The Euro Fund


Security

Major purchases for the financial period ended 28

February 2019 EUR ‘000

Major sales for the financial period ended 28 February 2019

EUR ‘000

Agence Centrale des Organismes de Securite Sociale 0.00% 09/01/2019 70,006 Oesterreichische Kontrollbank AG 0.00% 26/11/2018 69,552 Agence Centrale des Organismes de Securite Sociale 0.00% 31/10/2018 65,016 KBC Bank NV 0.00% 02/01/2019 60,063 MUFG Bank Ltd. 0.00% 02/01/2019 60,061 Citibank NA 0.00% 02/01/2019 60,057 Citibank NA 0.00% 01/04/2019 60,053 Airbus Finance BV 0.00% 31/10/2018 60,021 L'Oreal 0.00% 26/10/2018 50,015 Toyota Motor Finance (Netherlands) BV 0.00% 26/09/2018 50,005 FMS Wertmanagement 0.00% 18/10/2018 50,005 Kreditanstalt fuer Wiederaufbau 0.00% 07/12/2018 41,001 DZ BANK AG Deutsche Zentral-Genossenschaftsbank 0.00% 01/03/2019 40,042 Nationwide Building Society 0.00% 01/03/2019 40,040 Mizuho Bank Ltd. 0.00% 04/01/2019 40,037 National Australia Bank Ltd. 0.00% 17/12/2018 40,019 Toyota Leasing GmbH 0.00% 30/04/2019 35,034 Credit Agricole SA 0.00% 02/01/2019 35,032 L'Oreal 0.00% 07/12/2018 33,512 DZ BANK AG Deutsche Zentral-Genossenschaftsbank 0.00% 10/04/2019 33,032 Credit Agricole SA 0.00% 03/12/2018 30,006 ING Bank NV 0.00% 23/11/2018 30,002 DZ BANK AG Deutsche Zentral-Genossenschaftsbank 0.00% 10/04/2019 10,006 Svenska Handelsbanken AB 0.00% 05/12/2018 10,005 DekaBank Deutsche Girozentrale 0.00% 20/03/2019 10,004 DZ BANK AG Deutsche Zentral-Genossenschaftsbank 0.00% 01/03/2019 8,003 Procter & Gamble Co. (The) 0.00% 17/10/2018 7,003 Svenska Handelsbanken AB 0.00% 20/08/2019 5,008 National Australia Bank Ltd. 0.00% 14/06/2019 5,006 Procter & Gamble Co. (The) 0.00% 25/02/2019 5,002 Citibank NA 0.00% 01/04/2019 5,002 Credit Agricole SA 0.00% 09/04/2019 5,002 DekaBank Deutsche Girozentrale 0.00% 01/10/2018 5,001 Oesterreichische Kontrollbank AG 0.00% 24/09/2018 5,001


54


Supplementary Information For the financial period ended 28 February 2019

Remuneration Policy Fidelity Institutional Liquidity Fund plc is managed by FIL Fund Management (Ireland) Limited (‘FFM(I)L’), a wholly owned subsidiary of FIL Limited (‘FIL’). FFM(I)L will take reasonable steps to ensure that any decisions are consistent with the overall business strategy, objectives and the Global Remuneration Policy of the FIL Group (consisting of FIL and its subsidiaries) and try to manage any conflicts of interest which may arise.

The FIL Group Remuneration Committee has established a Global Remuneration Policy to ensure the requirements of the UCITS Directive are met at a global level for all its UCITS management companies, including FFM(I)L. The Remuneration Committee reviews the remuneration policy at least annually to reflect the relevant local market practices and regulatory requirements applicable from time to time. The Directors of the relevant management company are responsible for the adoption of the Global Remuneration Policy, for reviewing its general principles at least annually, for overseeing its implementation and for ensuring compliance with applicable local legislation and regulation.

The Global Remuneration Policy is consistent with and promotes sound and effective risk management and is designed not to encourage risk-taking which is inconsistent with the risk profile of FFM(I)L and the Fund. The Global Remuneration Policy is in line with the business strategy, objectives, values and interests of FFM(I)L and the Fund and includes measures to avoid conflicts of interest. There were no material changes to the Global Remuneration Policy to report during the financial period.]

The Global Remuneration Policy applies to all employees, with a focus on the staff whose professional activities have a material impact on the risk profile of the relevant management company or fund (the ‘Identified Staff’).

The Identified Staff are individuals whose roles can materially affect the risk of the management company or any UCITS fund that it manages. These roles are identified in line with the requirements of the UCITS Directive and guidance issued by the European Securities and Markets Authority. Identified Staff supporting FFM(I)L, include the following individuals:

a) Senior Management (Registered Directors);

b) Risk Takers (Senior Management Team); and

c) Staff Engaged in Control Functions (Risk, Compliance, Audit, HR and Finance).

FFM(I)L does not employ staff directly so the total remuneration to be disclosed under this remuneration disclosure for the financial period is NIL. The fees received by independent Directors of FFM(I)L do not have any variable component.

The aggregate total remuneration paid to the Identified Staff, considering all existing delegation arrangements, is EUR 20.6 million. It should be noted that this remuneration information is that which was disclosed by the delegate, in its annual report for its financial period ended 30 June 2018 and is an aggregate figure disclosed by the Investment Manager for its relevant staff and is not specific to the Fund.

For any additional on the Global Remuneration Policy, a summary is available at https://www.fil.com. The Securities Financing Transactions Regulation

The Securities Financing Transactions Regulation (“SFTR”) came into force on 12 January 2016 and introduced additional disclosures around securities lending, repurchase agreement/reverse repurchase agreements, total return swaps (TRSs) and other lending/borrowing transactions in annual and semi-annual financial statements, published after 13 January 2017. The SFTR came about due to what was perceived as ‘shadow banking’ risk in the securities financing markets and aims to reduce this risk by improving transparency in the securities financing markets in a number of ways: • By imposing conditions on the ‘reuse’ of collateral, so that clients and counterparties understand the risks involved and give

their consent to the reuse.

• By requiring managers to make detailed disclosures to their investors of the use they make of Securities Financing Transactions (SFTs) both in their periodic financial statements and pre-contractual documentation; and

• By requiring counterparties to report SFTs to a trade repository so as to provide transparency to regulators on the use of SFTs by market participants.

The following disclosures relate to a repurchase agreement investment held by the Company as at 28 September 2019 which may be considered a Security Financing Transaction under the SFTR.

55

https://www.fil.com/


Supplementary Information For the financial period ended 28 February 2019

Collateral Issuer

As at 28 February 2019, the total value, in USD of collateral received from government and international institutions for the security lending are as follows: Sub-fund name Currency Ranking Issuer Name Market Value The United States Dollar Fund USD 1 Germany 306,744,482

1 France 255,033,802 2 Germany 200,704,465 1 United States 71,733,045 1 United Kingdom 34,367,729 1 Austria 28,108,002 1 The Netherlands 3,269,113 1 Finland 51,789 1 Denmark 1,187 900,013,614

As at 28 February 2019, the total value, in GBP of collateral received from government and international institutions for the security lending are as follows: Sub-fund name Currency Ranking Issuer Name Market Value The Sterling Fund GBP 1 United Kingdom 75,101,937

1 France 45,708,383 1 Germany 7,585,740 1 Austria 7,224,115 1 The Netherlands 4,093,796 2 Germany 272,729 1 United States 13,301 140,000,001 Collateral received As at 28 February 2019, the following cash collateral has been received from counterparties

Sub-fund name Currency Citigroup Global Markets Ltd

Barclays Bank Plc London BNP Paribas

The United States Dollar Fund USD 550,000,000 700,000,000 - The Sterling Fund GBP 140,000,000 - 140,000,000 Analysis of Collateral received as at 28 February 2019 The collateral which consists of cash is held by the Depositary and has not been reused. There are no restrictions on the

reuse of collateral. As at 28 February 2019, the analysis of the collateral received was as follows.

Collateral Market Value in Collateral Maturity Tenor Collateral Sub-fund name Currency Type Sub-fund Currency Quality of Collateral Currency The United States Dollar Fund USD Cash 900,013,614 N/A Less than 1 Day USD The Sterling Fund GBP Cash 140,000,001 N/A Less than 1 Day GBP Return and Cost of Securities Financing Transactions The return (dividend income and realised and unrealised gains and losses) and costs of the securities financing transactions for the financial period ended 28 February 2019 are as follows -

Sub-fund name Currency Asset Type

Return of the sub-fund

‘000 % of Total

Return

Cost of the sub-fund

(‘000) % of Cost The Euro Fund EUR Repurchase Agreement - 100.00 (166) 100.00 The Sterling Fund GBP Repurchase Agreement 643 100.00 - 100.00 The United States Dollar Fund USD Repurchase Agreement 230 100.00 - 100.00

56


DDiirreeccttoorryy

Directors of the Company Transfer Agent, Registrar & Secretary

Ms. Denise Kinsella* (Ireland) (Chairperson) Mr. David Greco (USA)

FIL Fund Management (Ireland) Limited George’s Quay House

Mr. Nick King (UK) 43 Townsend Street Dublin 2, D02 VK65 Ms. Éimhín Ní Mhuircheartaigh (Ireland) Ireland Ms. Catherine Fitzsimons (Ireland) General Distributor FIL Distributors All Directors are Non-Executive. Pembroke Hall * Independent Directors as defined under the rules of Euronext Dublin. 42 Crow Lane Pembroke HM19 (formerly the Irish Stock Exchange) Bermuda Fidelity Institutional Liquidity Fund plc Depositary Registered Office J.P. Morgan Bank (Ireland) plc George’s Quay 200 Capital Dock House 43 Townsend Street 79 Sir John Rogerson’s Quay Dublin 2, D02 VK65 Ireland

Dublin 2, D02 RK57 Ireland

Investment Manager Administrator FIL Investments International J.P. Morgan Bank (Ireland) plc Oakhill House 200 Capital Dock 130 Tonbridge Road 79 Sir John Rogerson’s Quay Hildenborough Dublin 2, D02 RK57 Kent TN11 9DZ Ireland United Kingdom Sponsoring Broker Manager J & E Davy FIL Fund Management (Ireland) Limited Davy House George’s Quay 49 Dawson Street House 43 Townsend Street Dublin 2 Dublin 2, D02 VK65 Ireland Ireland Independent Auditors PricewaterhouseCoopers One Spencer Dock North Wall Quay Dublin 1 Ireland

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