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Standard Life Investments Liquidity Fund plc

ANNUAL REPORT

AND AUDITED FINANCIAL STATEMENTS

For the financial year ended 31 December 2016


Annual Report and Audited Financial Statements for the

financial year ended 31 December 2016

Table of Contents

1

Page

General Information 2

Investment Manager’s Report 3

Directors’ Report 6

Depositary’s Report 11

Independent Auditors' Report 12

Statement of Financial Position 14

Statement of Comprehensive Income 16

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating

Shares

18

Statement of Cash Flows 20

Notes to the Financial Statements 22

Portfolio Listings

- Sterling Liquidity Fund 56

- Euro Liquidity Fund 61

- Sterling Short Duration Managed Liquidity Fund 64

Statement of Significant Portfolio Changes

- Sterling Liquidity Fund 67

- Euro Liquidity Fund 69

- Sterling Short Duration Managed Liquidity Fund 71

Appendix I – UCITS V Remuneration Policy (Unaudited) 73




General Information

2

Directors

Michael Boyce (Irish)1,6

Mike Kirby (Irish)1,4

Barry McGrath (Irish)1

Stephen Campbell (British)2

Jennifer Richards (British) 2,3

Andrew Curtin (Irish)1,5

Michael McKenna (Irish)2,7

Sponsoring Broker

A & L Listing

25/28 North Wall Quay

Dublin 1

Ireland

Registered Office

25/28 North Wall Quay

Dublin 1

Ireland

Secretary

Goodbody Secretarial Limited

International Financial Services Centre

North Wall Quay

Dublin 1

Ireland

Administrator and Registrar

BNY Mellon Fund Services (Ireland) Designated Activity

Company

Guild House

Guild Street


Dublin 1

Ireland

Auditors

Ernst & Young

Chartered Accountants & Registered Auditors

Harcourt Street

Dublin 2

Ireland

Investment Manager and Marketing Agent

Standard Life Investments Limited

1 George Street,

Edinburgh EH2 2LL

United Kingdom

Sponsor


1 George Street,

Edinburgh EH2 2LL

United Kingdom

Depositary

BNY Mellon Trust Company (Ireland) Limited

Guild House

Guild Street


Dublin 1

Ireland

Irish Legal Advisers

A & L Goodbody


North Wall Quay

Dublin 1

Ireland

1Independent and Non-Executive Directors.

2Related Party to Standard Life Investment Limited.

3Jennifer Richards was approved and appointed Chairman of the Board of Directors on 16 June 2016, replacing Barry

McGrath. 4Mike Kirby resigned as Director on 30 June 2016.

5Andrew Curtin was appointed as Director on 15 June 2016.

6Michael Boyce resigned as Director on 11 November 2016.

7Michael McKenna was appointed as Director on 11 November 2016.




Investment Manager’s Report

3

Market Background

The Bank of England (BoE) kept interest rates at 0.5% and maintained its existing QE policy during the first half of 2016.

However, after the UK’s shock decision to leave the EU, the Bank of England launched a comprehensive package of

stimulus measures to support the economy. These included a 25 basis points interest rate cut, a new £100 billion four-year

Term Funding Scheme to support mortgage lending and a boost to QE of £60 billion in gilt purchases over a six-month

period. As the year progressed, economic data was generally stronger than initially feared. For example, GDP grew 0.5%

in the third quarter, much higher than the 0.1% growth forecast by the BoE in August.

At its December meeting, the monetary policy committee (MPC) noted that the outlook for activity, both in the UK and

globally, had improved, while inflationary pressures appeared to have eased somewhat. This takes some of the pressure

off the MPC to act in the short term. However, high uncertainty surrounding Brexit will continue to cloud forecasts for a

stronger economic outlook. Our view is that interest rates will stay at current levels until we have more clarity on Brexit

following the eventual triggering of article 50.

In Europe, the European Central Bank (ECB) announced a package of easing measures in March that comfortably

exceeded market expectations on most counts. These included broader and more aggressive asset purchases and rate cuts

across the board. However, as the year progressed, inflation remained low and below target, while unemployment levels

and debt levels remained generally high across the region. Towards the end of the year, the ECB decided to extend its

bond-buying programme longer than anticipated, although it did also cut the size of monthly purchases from £80 billion

per month to £60 billion.

In terms of outlook, the ECB’s macroeconomic assessment has hardly changed since its October meeting. It still expects a

very moderate recovery in the Eurozone with risks tilted to the downside, while headline inflation should increase.

Overall, the ECB expects GDP growth to come in at 1.7% in 2016 and 2017, with inflation increasing gradually from

0.2% in 2016 to 1.3% in 2017.

The US Federal Reserve (Fed) left interest rates unchanged over much of 2016, remaining ultra-sensitive to any

deterioration in international developments as well as signals from the domestic economy. In December, the Fed then

decided to raise interest rates for the first time in a year and only the second time since the 2008 financial crisis. Fed Chair

Janet Yellen said, “growth is a touch stronger, unemployment is a shade lower” as she announced a 0.25% increase in the

benchmark rate to 0.50-0.75%. The US central bank also predicted three further rate increases in 2017, up from previous

expectations of two hikes.

Looking ahead, the US economy looks reasonably strong and is moving towards the dual objectives of maximum

employment and price stability. Janet Yellen also commented that the Fed expects the economy to continue performing

well, with the job market strengthening further and inflation rising to 2% over the next couple of years.

Sterling Liquidity Fund

Activity

The net asset value (NAV) of the Sterling Liquidity Fund (the “Fund”) was £12.1 billion on 31 December 2016.

We maintained the high quality of the portfolio over the year, well within the requirements outlined by Standard & Poor’s

and Fitch rating agencies. In addition, we consistently maintained liquidity above regulatory requirements and the

weighted average maturity (WAM) at higher levels but still comfortably within the required 60-day maximum at all

times.

In order to mitigate potential year-end liquidity risks, we made significant purchases of highly liquid UK Treasury bills

during the final quarter of 2016. This proved to be a very successful strategy as short rates softened significantly

throughout December.

Performance

The portfolio continued to deliver strong returns versus the IMMFA peer group. Holdings of high-quality financial

floating rate notes (FRNs) and enhanced-return, short-term commercial paper continued to underpin returns and ensure

liquidity. Meanwhile, we continue to maximise weighted average maturity (“WAM”) given ongoing uncertainty around

the future path of UK interest rates. Our decision to maintain a relatively high WAM also contributed to the enhanced

yield, which enabled the Fund to continue delivering high levels of performance throughout 2016.




Investment Manager’s Report (continued)

4

Sterling Liquidity Fund (continued)

Outlook

We will continue to invest all maturing assets into highly rated short-term money market assets such as euro commercial

paper, certificates of deposit and fixed deposits. We will also continue to try to source highly rated floating rate notes with

a maximum maturity of one year; supply, counterparty, limits and yield permitting. Any increase in exposure to financial

FRNs will depend on market conditions and availability.

We are maintaining our current strategy of managing the WAM at higher levels based on our expectation that UK interest

rates will remain on hold for the foreseeable future and will be subject to considerable uncertainty as the fallout from

Brexit continues.

In order to continue to mitigate the risk of potentially more volatile cashflows, we intend to maintain higher levels of

liquidity, holding firm on the strategy of rolling over one-week commercial paper and deposits at an enhanced yield

relative to available overnight rates. This will ensure we consistently achieve NAV one-week liquidity ratios. We also

plan to add/renew higher-quality names to our FRN holdings where possible.

Euro Liquidity Fund

Activity

The size of the Euro Liquidity Fund (the “Fund”) increased significantly over the period, from €218 million to €1.4

billion. Much of this increase came from internal Standard Life Investments funds. Over much of the year, we

consistently maintained the WAM between 40 and 50 days - comfortably within the required 60-day maximum. However,

the WAM decreased towards the end of the year, as we defensively positioned the Fund because of seasonally thin market

liquidity. We decreased holdings of senior unsecured debt and increased holdings in euro government Treasury bills in

order to maintain flexibility over the year-end.

We continue to invest in high quality liquid assets well within the requirements outlined by Standard & Poor’s and Fitch

rating agencies.

Performance

Holdings of high quality financial floating rate notes and enhanced-return, short-term commercial paper continued to

underpin returns and ensure liquidity. Given challenging market conditions, our decision to increase exposure to euro

government bills added extra liquidity.

Outlook

We will look to increase the Fund’s WAM to between 40 and 50 days, increasing exposure to senior unsecured debt and

asset-backed commercial paper.

Sterling Short Duration Managed Liquidity Fund

Activity

The size of the Sterling Short Duration Managed Liquidity Fund (the “Fund”) increased significantly during the first nine

months of the year, to £2.8 billion. As a result, the holdings of floating rate notes (FRN) and asset-backed securities

(ABS) fell to 17% and 11% respectively. The holdings of certificates of deposit (CD) and commercial paper (CP) rose to

58% because of the large inflow of cash and a lack of supply within the FRN and ABS market. During the fourth quarter

of 2016, the Fund size decreased slightly to £2.7 billion. Our holdings in FRN remained stable but we were able to

purchase ABS in the secondary market, taking the percentage holding up to 17%. The holdings in CD and CP reduced to

52%. There remains a distinct lack of primary issuance of ABS and FRNs. However, flow in the secondary market has

been better, allowing us to increase exposure.

Performance

The portfolio continued to deliver strong returns versus the three-month LIBOR benchmark, with pre-base rate cut higher-

yielding assets replaced with high-yielding FRNs and ABS.




Investment Manager’s Report (continued)

5

Sterling Short Duration Managed Liquidity Fund (continued)

Outlook

We will look to increase holdings of ABS and FRNs further, and maximise WAM whenever there is value in the curve.

We will maintain strong liquidity ratios in the short dates to facilitate this.


February 2017




Directors’ Report

6

The Directors of Standard Life Investment Liquidity Fund plc (the “Company”) submit their Annual Report together

with the audited financial statements for the financial year ended 31 December 2016.

Review of the business and future developments

The Company was incorporated as an open-ended umbrella investment company with variable capital and segregated

liability under the laws of Ireland on 29 August 2006. The Company was authorised by the Central Bank of Ireland (the

“Central Bank”) as an Undertaking for Collective Investment in Transferable Securities (UCITS) pursuant to the

European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (amended)

(the “UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings

for Collective Investment in Transferable Securities) Regulations 2015 (as amended) (the “Central Bank UCITS

Regulations”).

The Company is structured as an umbrella fund. As at 31 December 2016, the Company consisted of three different sub-

funds (each a “Fund” and collectively the “Funds”), namely, the Sterling Liquidity Fund, the Euro Liquidity Fund and the

Sterling Short Duration Managed Liquidity Fund (formerly Sterling Short Duration Cash Fund) each comprising one or

more classes of shares. The shares of each class of a Fund will rank pari passu with each other in all respects provided

that they may differ as to certain matters including currency of denomination, hedging strategies if any applied to the

currency of a particular class, dividend policy, the level of fees and expenses to be charged, subscription or redemption

procedures or the minimum subscription and minimum holding applicable. The assets of each Fund will be separate from

one another and will be invested separately in accordance with the investment objective and policies of each Fund.

The attention of shareholders is drawn to the fact that they are entitled only to their proportion of the net assets of that

particular Fund in which their shares are designated. The Company has segregated liability between its Funds and

accordingly any liability incurred on behalf of or attributable to any Fund shall be discharged solely out of the assets of

that Fund.

The Funds are listed on the Irish Stock Exchange as detailed in note 1 of these financial statements.

As at 31 December 2016, the Company had issued shares in each of the Funds as detailed in note 1 of these financial

statements.

There were no significant commitments or contingent liabilities at the Statement of Financial Position date.

A detailed review of the performance of the Company and future developments is discussed in the Investment Manager’s

Report.

Investment objectives

The investment objective of the Sterling Liquidity Fund and Euro Liquidity Fund is to maximise current income

consistent with the preservation of principal and liquidity by investing in a diversified portfolio of high quality

denominated short term debt and debt related instruments described below which are traded on the exchanges/markets as

outlined in the Prospectus, or which are to be traded on such exchanges/markets within a year of being issued. The

investment objective of the Sterling Short Duration Managed Liquidity Fund is to provide investors with stability of

capital and income through investment in short term fixed income and variable rate securities.

In pursuit of its investment objective, the Sterling Liquidity Fund may invest in a broad range of fixed or floating rate

instruments including but not limited to commercial paper, floating rate notes, certificates of deposit, freely transferable

promissory notes, debentures, asset-backed securities, bonds, treasury bills and time deposits. The investments shall be

denominated in Pound Sterling and may be issued or guaranteed as to principal or interest by sovereign governments,

their agencies and instrumentalities, supranational entities and European Union (“EU”) and non-EU corporations and

financial institutions.




Directors’ Report (continued)

7

Investment objectives (continued)

In pursuit of its investment objective, the Euro Liquidity Fund may invest in a broad range of fixed or floating rate

instruments including but not limited to commercial paper, floating rate notes, certificates of deposits, freely transferable

promissory notes, debentures, asset-backed securities, bonds, treasury bills and time deposits. The investments shall be

denominated in Euro and may be issued or guaranteed as to principal or interest by sovereign governments, their agencies

and instrumentalities, supranational entities and EU and non-EU corporations and financial institutions.

In pursuit of its investment objective, the Sterling Short Duration Managed Liquidity Fund may invest in a broad range of

liquid securities, instruments and obligations which may be available in the prevailing markets (both within and outside

the UK) for Pound Sterling denominated instruments, including securities, instruments and obligations issued or

guaranteed by the UK government or other sovereign governments or their agencies and securities, instruments and

obligations issued by supranational or public international bodies, banks, corporates or other commercial issuers. These

types of securities, instruments and obligations may include UK government gilts, UK government T-bills, non UK

government sovereign bonds, supranational bonds, asset backed securities (‘ABSs’), certificates of deposit, floating rate

notes (‘FRNs’), short and medium term obligations and commercial paper.

Risk management objectives and policies

Investment in the Company carries with it a degree of risk including, but not limited to, the risks referred to in Note 12 of

these financial statements. Information about the financial risk management objectives and policies of the Company is

also disclosed in Note 12.

Results and dividends

The financial position and results are set out on pages 14 to 21.

The net income after interest expense for the Sterling Liquidity Fund amounted to GBP £57,731* (2015: GBP £49,118)*

of which GBP £57,731* (2015: GBP £49,118)* was distributed.

The net loss after interest expense for the Euro Liquidity Fund amounted to EUR €3,620* (2015: EUR €603)*. There was

no distribution for the Fund for the financial year ended 31 December 2016 (2015: EUR €Nil).

The net income after interest expense for the Sterling Short Duration Managed Liquidity Fund amounted to GBP

£14,467* (2015: GBP 4,237)* of which GBP £255* (2015: GBP £231)* was distributed.

*Amounts are expressed in thousands (000’s).

Connected Person Transactions

In accordance with the requirements of the Central Bank UCITS Regulations, all transactions carried out with the

Company by the Investment Manager, Depositary and associates/group companies (“connected persons”) must be carried

out as if negotiated at arm’s length and be in the best interests of shareholders. The Directors are satisfied that there are

arrangements in place to ensure that the obligations set out above are applied to all transactions with connected persons

and transactions with connected persons entered into during the period complied with the obligations set out above.

Directors’ responsibilities

The Directors are responsible for the preparation of the financial statements in accordance with International Financial

Reporting Standards (“IFRS”) as adopted by the EU and comply with the Companies Act 2014 and the Central Bank

UCITS Regulations.





8

Directors’ responsibilities (continued)

Company Law requires the Directors to prepare financial statements for each financial year that give a true and fair view

of the state of affairs of the Company and of the profit or loss of the Company for that financial year. In preparing the

financial statements, the Directors are required to:

select suitable accounting policies and then apply them consistently;

make adjustments and estimates that are reasonable and prudent;

state whether the financial statements have been prepared in accordance with applicable accounting standards,

identify those standards and note the effect and the reasons for any material departure from those standards; and

prepare the financial statements on the going concern basis unless it is not appropriate to presume that the Company

will continue in business.

The Directors confirm that they have complied with the above requirements in preparing the financial statements.

The Directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any

time the financial position of the Company and to enable them to ensure that the financial statements are prepared in

accordance with IFRS as adopted by the EU and comply with the Companies Act 2014 and the Central Bank UCITS

Regulations.

They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

Under the Central Bank UCITS Regulations, the Directors are required to entrust the assets of the Company to the

Depositary (formerly known as the “Custodian”), BNY Mellon Trust Company (Ireland) Limited for safekeeping.

The measures taken by the Directors to secure compliance with the Company’s obligations to keep adequate accounting

records include the use of appropriate systems and procedures and employment of competent persons. The accounting

records are retained at BNY Mellon Fund Services (Ireland) Designated Activity Company, Guild House, Guild Street,

IFSC, Dublin 1.

Directors

The names of the persons who were Directors at any time during the financial year ended 31 December 2016 are set out

on page 2. No director has a service contract with the Company.

Directors’ and Secretary’s interests

No director, the secretary or their families hold or held any interest in the shares of the Company during the financial year

ended 31 December 2016.

Significant events during the financial year

On 15 June 2016, Mr. Andrew Curtin was appointed as Director.

On 16 June 2016, Ms. Jennifer Richards was approved and appointed Chairman of the Board of Directors replacing Mr.

Barry McGrath.

On 30 June 2016, Mr. Mike Kirby resigned as Director.

On 11 November 2016, Mr. Michael Boyce resigned as Director.

On 11 November 2016, Mr. Michael McKenna was appointed as Director.

The Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Investor Money Regulations 2015 for Fund

Service Providers and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Client Asset

Regulations 2015 for Investments Firms came into effect on 1 July 2016. The Company has adopted the Fund Assets

Model under the Client Asset Regulations. Accordingly, subscription and redemption monies are channelled through an

umbrella cash collection account in the name of the Company. As at 31 December 2016, no adjustment to the financial

statements was required in relation to these collection accounts.

On 9 September 2016, an updated Prospectus was approved by the Central Bank, reflecting the change of fund name of

Sterling Short Duration Cash Fund to Sterling Short Duration Managed Liquidity Fund.

There were no other significant events during the financial year that require disclosure in the financial statements.





9

Significant Subsequent Events On 6 March 2017 it was announced to the stock exchange that Standard Life are proposing an all share-merger between

Standard Life and Aberdeen Asset Management. The intention is to complete this transaction in the third quarter of 2017,

however, this is subject to regulatory and shareholder approval.

There have been no other significant events after the financial year that require disclosure in the financial statements.

Statement on Relevant Audit Information

So far as each Director is aware, there is no relevant audit information of which the Company’s statutory auditors are

unaware. The Directors have taken all steps that ought to have been taken by a director in order to make themselves aware

of any relevant audit information and to establish that the Company’s auditors are aware of that information.

Independent Auditors

Ernst & Young were re-appointed as Auditors to the Company during the financial year ended 31 December 2016. Due to

a change of auditor at Standard Life Group, the Directors are recommending the appointment of KPMG as Auditors to

the Company with effect from the date of the 2017 Annual General Meeting (“AGM”). Shareholder approval of this

appointment will be sought at the 2017 AGM. KPMG have indicated their willingness to take up this office in accordance

with Section 383(2) of the Companies Act 2014.

Directors’ Compliance Statement

It is the policy of the Company to comply with its relevant obligations (as defined in the Companies Act 2014). As

required by Section 225(2) of the Companies Act 2014, the Directors acknowledge that they are responsible for securing

the Company’s compliance with the relevant obligations. The Directors have drawn up a compliance policy statement as

defined in Section 225(3)(a) of the Companies Act 2014 and a compliance policy which refers to the arrangements and

structures that are in place and which are, in the Directors’ opinion, designed to secure material compliance with the

Company’s relevant obligations. These arrangements and structures were reviewed by the Company during the financial

period. In discharging their responsibilities under Section 225, the Directors relied upon, among other things, the services

provided, advice and/or representations from third parties whom the Directors believe have the requisite knowledge and

experience in order to secure material compliance with the Company’s relevant obligations.

Audit Committee

In accordance with the requirements of section 167 of the Companies Act 2014, an audit committee (the “Committee”)

was established by the Directors on 11 November 2016 for the purpose of overseeing the accounting and financial

reporting processes and management of the Company and the audit of the Company’s financial statements. The

Committee is comprised of the full Board. The first meeting of the Committee was held on 27 April 2017.

Statement of Corporate Governance

A. General Requirements

The Company is subject to the requirements of the Companies Act 2014 and the Central Bank UCITS Regulations.

Although there is no statutory corporate governance code applicable to Irish collective investment schemes whose shares

are admitted to trading on the ISE, the Company is subject to corporate governance practices imposed by:

(i) the Companies Act 2014 which can be obtained from the Irish statute book website at www.irishstatutebook.ie and are

available for inspection at the registered office of the Company;

(ii) the Articles of Association of the Company (the “Articles”) which are available for inspection at the registered office

of the Company and may be obtained at the registered office of the Administrator or at the Companies Registration Office

in Ireland;

(iii) the Central Bank in their UCITS Regulations which can be obtained from the Central Bank of Ireland’s website at

http://www.centralbank.ie; and

(iv) the ISE through the ISE Code of Listing Requirements and Procedures which can be obtained from the ISE’s website

at http://www.ise.ie.

The Board voluntarily adopted the 'Corporate Governance Code Collective Investment Schemes and Management

Companies' (the "Code"), as published by the Irish Funds (previously named Irish Funds Industry Association) in

December 2011, as the Company’s new corporate governance code with effect from 31 December 2012. The Board is

satisfied that it has complied with the provisions of the code during the financial year ended 31 December 2016.

http://www.irishstatutebook.ie/




Statement of Financial Position

The accompanying notes on pages 22 to 55 form an integral part of these financial statements.

15

31 December 2015 31 December 2015 31 December 2015 31 December 2015

Sterling Liquidity

Fund

Euro Liquidity

Fund*

Sterling Short

Duration Managed

Liquidity Fund**

Total

Company***

GBP EUR GBP GBP

Assets Notes £'000 €'000 £'000 £'000

Cash and cash equivalents 3 473 67 8 530

Financial assets at fair value through profit or loss 2(b),6 11,006,933 215,506 952,921 12,065,691

Due from broker 2(n) – 2,500 – 1,843

Accrued income and other receivables 8 6,432 446 1,541 8,302

Total assets 11,013,838 218,519 954,470 12,076,366

Liabilities

Distributions payable 2(g) (4,534) – – (4,534)

Due to broker 2(n) (534,869) – – (534,869)

Accrued expenses and other payables 7 (1,526) (49) (199) (1,761)

Total liabilities (excluding net assets attributable to holders of redeemable

participating shares) (540,929) (49) (199) (541,164)

Total net assets attributable to holders of redeemable participating shares 10,472,909 218,470 954,271 11,535,202

* All assets and liabilities of the Euro Liquidity Fund were converted into Pound Sterling at the exchange rate ruling at the financial year end on 31 December 2015 as disclosed in Note 2 (f) to the

financial statements.

** On 9 September 2016, Sterling Short Duration Cash Fund changed its name to Sterling Short Duration Managed Liquidity Fund.

*** A cross investment of GBP £52,996,000 by Sterling Short Duration Managed Liquidity Fund in Sterling Liquidity Fund has been eliminated from the Company total for financial assets at fair value

through profit or loss (see Note 14 for further details).




Statement of Comprehensive Income


16


Sterling Liquidity

Fund

Euro Liquidity

Fund*

Sterling Short

Duration Managed

Liquidity Fund**

Total

Company***

GBP EUR GBP GBP

Notes £'000 €'000 £'000 £'000

Investment income

Interest income 2(d) 66,535 1,765 14,774 81,981

Net realised and unrealised gain on investments and currencies 4 – – 2,442 2,442

Total investment income 66,535 1,765 17,216 84,423

Less:

Operating expenses 10 (8,748) (289) (2,214) (11,199)

Negative yield on financial assets 2(d) – (1,721) – (1,409)

Net income/(expense) 57,787 (245) 15,002 71,815

Finance costs

Interest expense 2(d) (56) (3,375) (535) (3,356)

Distribution to holders of redeemable participating shares 2(g) (57,731) – (255) (57,213)

Proceeds from repurchase of shares in respect of negative yield – 3,620 – 2,966

Currency translation 2(f) & 2(k) – – – 67,525

Increase in net assets attributable to holders

of redeemable participating shares from operations – – 14,212 81,737

* The Statement of Comprehensive Income for the Euro Liquidity Fund were converted into Pound Sterling at the average exchange rate for the financial year end 31 December 2016 as disclosed in

Note 2 (f) to the financial statements.


*** Interest income and Distribution to holders of redeemable participating shares of GBP £773,000 due to the cross investment has been eliminated from the Company total (see Note 14 for further

details).

All gains and losses have been recognized in the Statement of Comprehensive Income and arise from continuing operations.




Statement of Comprehensive Income


17


Sterling Liquidity

Fund

Euro Liquidity

Fund*

Sterling Short

Duration Managed

Liquidity Fund**

Total

Company***

GBP EUR GBP GBP

Notes £'000 €'000 £'000 £'000

Investment income

Interest income 2(d) 56,905 1,180 7,287 64,721

Net realised and unrealised loss on investments and currencies 4 – – (1,263) (1,263)

Total investment income 56,905 1,180 6,024 63,458

Less:

Operating expenses 10 (7,757) (419) (897) (8,958)

Negative yield on financial assets 2(d) – (231) – (167)

Net income 49,148 530 5,127 54,333

Finance costs

Interest expense 2(d) (30) (1,133) (890) (1,743)

Distribution to holders of redeemable participating shares 2(g) (49,118) – (231) (49,021)

Proceeds from repurchase of shares in respect of negative yield – 603 – 437

Currency translation 2(f) & 2(k) – – – (19,776)

Increase/(Decrease) in net assets attributable to holders

of redeemable participating shares from operations – – 4,006 (15,770)

* The Statement of Comprehensive Income for the Euro Liquidity Fund were converted into Pound Sterling at the average exchange rate for the financial year end 31 December 2015 as disclosed in

Note 2 (f) to the financial statements.


*** Interest income and Distribution to holders of redeemable participating shares of GBP £328,000 due to the cross investment has been eliminated from the Company total (see Note 14 for further

details).

All gains and losses have been recognized in the Statement of Comprehensive Income and arise from continuing operations.

.




Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares


18


Sterling Liquidity

Fund

Euro Liquidity

Fund*

Sterling Short

Duration Managed

Liquidity Fund**

Total

Company***

GBP EUR GBP GBP

£'000 €'000 £'000 £'000

Net assets attributable to holders of redeemable participating

shares at beginning of financial year 10,472,909 218,470 954,271 11,535,202

Capital Transactions

Proceeds from redeemable participating shares issued 69,779,335 8,175,826 2,841,114 78,947,331

Reinvested dividends 41,278 – – 41,278

Cost of redeemable participating shares redeemed (68,163,705) (6,946,011) (1,062,422) (74,724,594)

Repurchase of shares attributable to negative yield – (3,620) – (2,966)

Change in net assets attributable to holders of redeemable

participating shares – – 14,212 81,737

Net assets attributable to holders of redeemable

participating shares at the end of financial year 12,129,817 1,444,665 2,747,175 15,877,988

* The Statement of Changes in Net Assets attributable to redeemable participating Shareholders for the Euro Liquidity Fund were converted into Pound Sterling at the average exchange rate for the

financial year end 31 December 2016 as disclosed in Note 2 (f) to the financial statements.


*** The cross investment transactions have been eliminated from net assets attributable to holders of redeemable participating shares at beginning of financial year, proceeds from redeemable

participating shares issued and cost of redeemable participating shares redeemed (see Note 14 for further details).




Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares


19


Sterling Liquidity

Fund

Euro Liquidity

Fund*

Sterling Short

Duration Managed

Liquidity Fund**

Total

Company***

GBP EUR GBP GBP

£'000 €'000 £'000 £'000

Net assets attributable to holders of redeemable participating

shares at beginning of financial year 8,624,344 442,985 824,845 9,713,606

Capital Transactions

Proceeds from redeemable participating shares issued 60,694,396 333,256 582,933 61,419,590

Reinvested dividends 31,755 – – 31,755

Cost of redeemable participating shares redeemed (58,877,586) (557,168) (457,513) (59,613,542)

Repurchase of shares attributable to negative yield – (603) – (437)

Change in net assets attributable to holders of redeemable

participating shares – – 4,006 (15,770)

Net assets attributable to holders of redeemable

participating shares at the end of financial year 10,472,909 218,470 954,271 11,535,202

* The Statement of Changes in Net Assets attributable to redeemable participating Shareholders for the Euro Liquidity Fund were converted into Pound Sterling at the average exchange rate for the

financial year end 31 December 2015 as disclosed in Note 2 (f) to the financial statements.


*** The cross investment transactions have been eliminated from net assets attributable to holders of redeemable participating shares at beginning of financial year, proceeds from redeemable

participating shares issued and cost of redeemable participating shares redeemed (see Note 14 for further details).




Statement of Cash Flows


20


Sterling Liquidity

Fund

Euro Liquidity

Fund*

Sterling Short

Duration Managed

Liquidity Fund**

Total

Company***

GBP EUR GBP GBP

£'000 €'000 £'000 £'000

Cash flows from operating activities

Purchase of financial assets and settlement of financial liabilities**** (471,117,402) (88,719,412) (31,578,166) (575,011,810)

Proceeds from sale of investments (including realised gains)**** 469,476,467 87,496,878 29,791,403 570,761,662

Interest income received**** 51,433 3,187 11,641 64,912

Negative yield on financial assets paid – (1,720) – (1,409)

Operating expenses paid (8,723) (266) (1,891) (10,832)

Interest expense paid (56) (3,375) (535) (3,356)

Net cash outflow from operating activities (1,598,281) (1,224,708) (1,777,548) (4,200,833)

Cash flows from financing activities

Proceeds from redeemable participating shares issued**** 69,820,613 8,175,826 2,841,114 78,988,609

Cost of redeemable participating shares redeemed**** (68,163,705) (6,946,011) (1,062,422) (74,724,594)

Distributions paid to holders of the redeemable participating units**** (58,803) – (255) (58,285)

Net cash inflow from financing activity 1,598,105 1,229,815 1,778,437 4,205,730

Net (outflow)/inflow in cash and cash equivalent (176) 5,107 889 (4,897)

Cash and cash equivalent at the beginning of the year 473 67 8 530

Effects of exchange rate changes on the balance of cash held in foreign

currencies and other foreign currency transactions – – – 184

Cash and cash equivalent at end of the year 297 5,174 897 5,611

* The Statement of Cash Flows for the Euro Liquidity Fund were converted into Pound Sterling at the average exchange rate for the financial year end 31 December 2016 as disclosed in Note 2 (f) to

the financial statements.


*** The cross investment transactions have been eliminated from the Company total for the line items marked with **** (see Note 14 for further details).




Statement of Cash Flows


21


Sterling Liquidity

Fund

Euro Liquidity

Fund*

Sterling Short

Duration Managed

Liquidity Fund**

Total

Company***

GBP EUR GBP GBP

£'000 €'000 £'000 £'000

Cash flows from operating activities

Purchase of financial assets and settlement of financial liabilities**** (278,135,365) (28,004,459) (12,157,730) (310,522,851)

Proceeds from sale of investments (including realised gains)**** 276,243,854 28,227,465 12,025,096 308,634,229

Interest income received**** 38,900 2,631 9,179 49,662

Negative yield on financial assets paid – (231) – (168)

Operating expenses paid (7,562) (449) (893) (8,781)

Interest expense paid (30) (1,133) (890) (1,743)

Net cash (outflow)/inflow from operating activities (1,860,203) 223,824 (125,238) (1,849,652)

Cash flows from financing activities

Proceeds from redeemable participating shares issued**** 60,726,151 333,256 582,933 61,451,345

Cost of redeemable participating shares redeemed**** (58,877,586) (557,168) (457,513) (59,613,542)

Distributions paid to holders of the redeemable participating units**** (48,590) – (231) (48,493)

Net cash inflow/(outflow) from financing activity 1,799,975 (223,912) 125,189 1,789,310

Net outflow in cash and cash equivalent (60,228) (88) (49) (60,342)

Cash and cash equivalent at the beginning of the year 60,701 155 57 60,878

Effects of exchange rate changes on the balance of cash held in foreign

currencies and other foreign currency transactions – – – (6)

Cash and cash equivalent at end of the year 473 67 8 530

* The Statement of Cash Flows for the Euro Liquidity Fund were converted into Pound Sterling at the average exchange rate for the financial year end 31 December 2015 as disclosed in Note 2 (f) to

the financial statements.


*** The cross investment transactions have been eliminated from the Company total for the line items marked with **** (see Note 14 for further details).




Notes to the Financial Statements (All monetary amounts are presented in thousands (000’s))

22

1. Establishment

Standard Life Investments Liquidity Fund plc (the “Company”), was incorporated as an open-ended umbrella

investment company with variable capital and segregated liability under the laws of Ireland on 29 August 2006. The

Company is authorised by the Central Bank of Ireland (the “Central Bank”) as an Undertaking for Collective

Investment in Transferable Securities (UCITS) pursuant to the European Communities (Undertakings for Collective

Investment in Transferable Securities) Regulations, 2011 (amended) (the “UCITS Regulations”) and the Central Bank

(Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable

Securities) Regulations 2015 (as amended) (the “Central Bank UCITS Regulations”) under incorporation number

425642.

The Company is structured as an umbrella fund. As at 31 December 2016, the Company consisted of three different sub-

funds (each a “Fund” and collectively the “Funds”), namely, the Sterling Liquidity Fund, the Euro Liquidity Fund and

the Sterling Short Duration Managed Liquidity Fund (formerly Sterling Short Duration Cash Fund) each comprising one

or more classes of shares. The shares of each class of a Fund will rank pari passu with each other in all respects

provided that they may differ as to certain matters including currency of denomination, hedging strategies if any applied

to the currency of a particular class, dividend policy, the level of fees and expenses to be charged, subscription or

redemption procedures or the minimum subscription and minimum holding applicable. The assets of each Fund will be

separate from one another and will be invested separately in accordance with the investment objective and policies of

each Fund

As at 31 December 2016, the Company had issued the following share classes in the Funds:

Fund Share Class Currency Launch Date

Sterling Liquidity Fund Sterling Liquidity Class 0 GBP 16 March 2009

Sterling Liquidity Class 1* GBP 7 September 2006

Sterling Liquidity Class 2* GBP 14 November 2006

Sterling Liquidity Class 3* GBP 27 June 2007


Sterling Liquidity Class 5* GBP 23 September 2010

Sterling Liquidity Class 7* GBP 20 February 2014


Euro Liquidity Fund Euro Liquidity Class 0 EUR 19 January 2010

Euro Liquidity Class 1* EUR 12 September 2006

Euro Liquidity Class 2* EUR 14 November 2006

Euro Liquidity Class 8* EUR 8 November 2016

Sterling Short Duration

Managed Liquidity Fund**

Sterling Short Duration Managed Liquidity Class 1* GBP 2 February 2008

Sterling Short Duration Managed Liquidity Class 2* GBP 31 July 2012

Sterling Short Duration Managed Liquidity Class 5* GBP 18 June 2014

*Share class is listed on the Irish Stock Exchange. **On 9 September 2016, Sterling Short Duration Cash Fund changed its name to Sterling Short Duration Managed Liquidity Fund.

2. Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These

policies have been consistently applied unless otherwise stated.




Notes to the Financial Statements (continued) (All monetary amounts are presented in thousands (000’s))

23

2. Significant Accounting Policies (continued)

(a) Basis of Preparation

The preparation of the audited financial statements is in accordance with International Financial Reporting Standards

(“IFRS”) as adopted by the EU and Irish Statute comprising the Companies Acts 2014.

The audited financial statements have been prepared on a going concern basis which assumes that the Company will

continue in operational existence for the foreseeable future. The financial statements have been prepared under the

historical cost convention, as modified by the revaluation of financial assets and financial liabilities at fair value through

profit or loss.

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that

affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of

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

knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

The Board of Directors makes estimates and assumptions concerning the future. The resulting accounting estimates

will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a

significant risk of causing a material adjustment to the carrying amounts of assets and liabilities.

New standards, amendments and interpretations in issue but not yet effective.

At the date of approval of these financial statements, the following Standards, Amendments and Interpretations were in

issue but not yet effective:

IFRS 9 “Financial instruments” (issued 12 November 2009, revised in October 2010, November 2013 and July 2014).

IFRS 9 is effective for annual periods beginning on or after 1 January 2018 and has not been early adopted by the

Company.

IFRS 9 replaces most of the guidance of IAS 39 “Financial instruments: recognition and measurement” that relates to

classification and measurement of financial instruments. The completed IFRS 9 (as revised in 2014) contains the

requirements for a) the classification and measurement of financial assets and financial liabilities, b) impairment

methodology and c) general hedge accounting.

IFRS 9 establishes three primary measurement categories for financial assets: amortised cost, fair value through other

comprehensive income and fair value through profit or loss. The basis of classification depends on the entity’s business

model and the contractual cash-flow characteristics of the financial asset. For financial liabilities, there were no changes

to classification and measurement except for the recognition of changes in the entity’s own credit risk in other

comprehensive income, for liabilities designated at fair value through profit or loss.

Based on the initial assessment, this standard is not expected to have a material impact on the Company. This is because

the financial instruments currently measured at fair value through profit or loss will continue to be measured at fair

value through profit or loss under IFRS 9 and those currently measured at amortised cost will continue to be measured

at amortised cost under IFRS 9.

(b) Financial assets and liabilities at fair value through profit or loss

(i) Classification

The Company has classified all financial instruments as financial assets or financial liabilities at fair value through

profit or loss in accordance with IAS 39.

The category of financial assets and financial liabilities at fair value through profit or loss comprises:

● Financial instruments held for trading: A financial asset or a financial liability is classified as held for trading if it is

acquired or incurred principally for the purpose of selling or repurchasing in the near term or if on initial recognition is

part of a portfolio of identifiable financial investments that are managed together and for which there is evidence of a

recent actual pattern of short-term profit taking.





24


(b) Financial assets and liabilities at fair value through profit or loss (continued)

(i) Classification (continued)

● Financial instruments designated at fair value through profit or loss upon initial recognition: these include financial

assets that are not held for trading purposes and which also may be sold. These financial assets are designated upon

initial recognition on the basis that they are part of a group of financial assets which are managed and have their

performance evaluated on a fair value basis, in accordance with the Company’s documented strategy.

Financial assets or liabilities held for trading are acquired or incurred principally for the purpose of selling or

repurchasing in the short term. The following financial instruments are held for trading: certificates of deposit,

corporate bonds, commercial paper, mortgage related securities, time deposits and collective investment schemes.

Financial liabilities that are not at fair value through profit or loss include accrued expenses and other payables. The

Company does not hold any financial instruments designated at fair value through profit or loss as at financial year

ended.

(ii) Recognition, Derecognition and Measurement

The Company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions

of the instrument. Purchases and sales of financial assets and financial liabilities are recognised using trade date

accounting. From trade date and subsequent to initial recognition, any gains and losses arising from changes in fair

value of the financial assets or financial liabilities are recorded in the Statement of Comprehensive Income. They are

accounted for on a first in, first out basis.

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or the

Company has transferred its rights to receive cash flow from the assets or has assumed to pay the received cash flows

and either transferred substantially all the risks and rewards of the asset, or the Company has neither transferred nor

retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Financial liabilities are derecognised when the obligation under the liability is discharged, cancelled or expires.

(iii) Fair Value Measurement Principles

IFRS 13, ‘Fair value measurement’, effective for annual periods beginning on or after 1 January 2013. The standard

improves consistency and reduces complexity by providing a precise definition of fair value and a single source of fair

value measurement and disclosure requirements for use across IFRS. The requirements do not extend the use of fair

value accounting but provide guidance on how it should be applied where its use is already required or permitted by

other standards within IFRS. If an asset or a liability measured at fair value has a bid price and an ask price, the

standard requires valuation to be based on a price within the bid-ask spread that is most representative of fair value and

allows the use of mid-market pricing or other pricing conventions that are used by market participants as a practical

expedient for fair value measurement within a bid-ask spread.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing

parties in an arm’s length transaction. For the Sterling Liquidity Fund and the Euro Liquidity Fund all investments are

valued at amortised cost which approximates fair value. For the Short Duration Managed Liquidity Fund, the current

values of commercial papers and certificates of deposit held are calculated through a pricing matrix based on inter-bank

rates. This method of valuation is consistent with industry practice. Fixed income securities do not have a primary

exchange, instead prices are used from industry recognised pricing vendors. These vendors typically use a range of

market quoted prices and yield curve analysis in their pricing models in order to determine a fair value price.

The Company may from time to time invest in financial instruments that are not traded in an active market. The fair

value is determined by using valuation techniques. The Company uses a variety of methods and makes assumptions that

are based on market conditions existing at each Statement of Financial Position date. There were no financial

instruments valued in this way as at 31 December 2016 or 31 December 2015.





25


(c) Significant accounting judgements, estimates and assumptions

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires

management to exercise its judgement in the process of applying the Company’s accounting policies. The estimates and

associated judgements are based on historical experience and various other factors that are believed to be reasonable

under the circumstances, the results of which form the basis of making the judgements about carrying values of assets

and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Management makes estimates and assumptions concerning the future. The resulting accounting estimates will, by

definition, seldom equal the actual results.

(i) Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which

have the most significant effect on the amounts recognised in the financial statements:

Going Concern

The Company’s management has made an assessment of the Company’s ability to continue as a going concern and is

satisfied that the Company has the resources to continue in business for the foreseeable future. Furthermore,

management is not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to

continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis.

(ii) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that

have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next

financial year, are discussed below. The Company based its assumptions and estimates on parameters available when

the financial statements were prepared. However, existing circumstances and assumptions about future developments

may change due to market changes or circumstances arising beyond the control of the Company. Such changes are

reflected in the assumptions when they occur.

(d) Interest Income and Interest Expense

Interest income and interest expense are recognised on an accruals basis in line with the contractual terms. Interest is

accrued on a daily basis.

Interest income and interest expense are recognised in the Statement of Comprehensive Income for all financial

instruments at fair value through the profit or loss using the effective interest rate method. Interest income and interest

expense include accretion of market discount, original issue discounts and amortisation of premiums and is recorded

over the life of the underlying investment.

The effective interest rate method is a method of calculating the amortised cost of a financial asset or financial liability

and of allocating the interest income or interest expense over the life of the underlying investment. The effective

interest rate is the rate that exactly discounts estimated future cash payments or receipts throughout the expected life of

the financial instruments, or a shorter period where appropriate, to the net carrying amount of the financial asset or

financial liability. When calculating the effective interest rate, the Company estimates cash flows considering all

contractual terms of the financial instruments but does not consider future credit losses. The calculation includes all fees

and points paid if received between parties to the contract that are an integral part of the effective interest rate,

transaction costs and all other premiums or discounts.

Negative yield on financial assets relates to interest expense resulting from a negative effective interest rate on a

financial instrument. During the financial year the amount of negative yield on financial assets was €1,721 (2015:

€231).

(e) Dividend Income Dividends are credited to the Statement of Comprehensive Income on the dates on which the relevant securities are

listed as “ex-dividend”. Income is shown gross of any non-recoverable withholding taxes, which is disclosed separately

in the Statement of Comprehensive Income, and net of any tax credits.





26


(f) Basis of Combination For combination purposes, at 31 December 2016 the Statement of Financial Position of Euro Liquidity Fund has been

converted to Pound Sterling by using a closing exchange rate of GBP £1 = EUR €1.1715 (31 December 2015: GBP £1

= EUR €1.3568). The opening value of the Combined Company has been converted at the exchange rates ruling at 31

December 2015.

The Statement of Comprehensive Income, the Statement of Changes in Net Assets Attributable to Holders of

Redeemable Participating Shares and the Statement of Cash Flows for the Euro Liquidity Fund have been converted to

Pound Sterling by using an average exchange rate of GBP £1 = EUR €1.2206 (31 December 2015: GBP £1= EUR

€1.3775).

A gain (in thousands) of GBP £67,525 (31 December 2015: loss of GBP £19,776) arises from the conversion of the

opening value of the Combined Company at the exchange rate ruling 31 December 2016 and from the use of average

exchange rates. This gain/(loss) is a notional gain/(loss) included in the Statement of Comprehensive Income and only

affects the Combined Company position and has no impact on the net asset value attributable to holders of redeemable

participating shares of the Funds.

(g) Distributions Payable to Holders of Redeemable Participating Shares

Distributions to holders of redeemable participating shares are recorded in the Statement of Comprehensive Income and

recorded as finance costs.

In order to maintain the net asset value at a constant whole unit of currency per share for the Sterling Liquidity Fund

(Classes 0 to 4, Class 7 and Class 8 Shares), the Euro Liquidity Fund (all Classes of Shares) and the Sterling Short

Duration Managed Liquidity Fund (Class 5 Shares) dividends in respect of the Fund will be declared out of the net

income of each respective Fund on each dealing day in proportion to the number of shares held by the shareholders of

the Fund. Income for dividend purposes will normally consist of all or substantially all of the Fund’s net investment

income and net realised and unrealised capital gains (i.e. realised and unrealised capital gains net of all realised and

unrealised losses).

Net income earned on days which are not business days will be declared as dividends on the next available business

day. No interest will be paid on accrued but unpaid dividends. Dividends will be paid monthly in the form of additional

shares or, at the option of shareholders, in cash and will be paid on the first business day of each calendar month in

arrears.

With regard to the Sterling Short Duration Managed Liquidity Fund (except Class 5 shares) and Sterling Liquidity Fund

Class 5, shares are Accumulation Shares and therefore carry no right to any dividend. The net income attributable to the

shares shall be retained within the Fund and the value of the shares shall rise accordingly. Reinvested dividends, if any,

are disclosed in the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares.

(h) Cash and Cash Equivalents

Cash and Cash Equivalents includes cash in hand, deposits held at call with banks and other short-term investments in

an active market with original maturities of three months or less and bank overdrafts. Bank overdrafts, when present,

are shown in current liabilities in the Statement of Financial Position.

(i) Taxation

Under current Irish 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 or any encashment, redemption, cancellation or transfer of shares.

To the extent that a chargeable event arises in respect of a Shareholder, the Company may be required to deduct tax in

connection with that chargeable event and pay the tax to the Irish Revenue Commissioners. A chargeable event can

include dividend payments to Shareholders, appropriation, cancellation, redemption, repurchase or transfer of Shares, or

a deemed disposal of Shares every 8 years beginning from the date of acquisition of those Shares. Certain exemptions

can apply. To the extent that Shareholders have appropriate tax declarations in place with the Company there may be no

requirement to deduct tax.





27


(i) Taxation (continued)

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; 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

withholding 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. For the financial year ended 31 December 2016 , the Company was

subject to no withholding taxes (2015: nil).

(j) Offsetting

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there

is a legally enforceable right to set-off the recognised amounts and there is an intention to settle on a net basis, or realise

the assets and settle the liability simultaneously. There is no master netting agreement applicable for the Company

(k) Foreign currency translation

(i) Functional and presentation currency

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’). Each Fund’s performance is evaluated and its liquidity is

managed in order to meet the issue, acquisition and resale of the Fund’s redeemable shares, in each Fund’s respective

functional currency. Management considers this to be the Pound Sterling (“GBP £”) for the Sterling Liquidity Fund and

the Sterling Short Duration Managed Liquidity Fund and Euro (“EUR €”) for the Euro Liquidity Fund.

The Company has adopted the Pound Sterling as the presentation currency for the Company as a whole, based on the

economic environment in which the Company itself operates. The Company’s results and financial position are

translated from the respective Fund’s functional currency to the Company’s presentation currency.

(ii) Transactions and balances

Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the

functional currency at the closing rate of exchange at each Statement of Financial Position date. Foreign currency

transactions are translated into the functional currency using the exchange rates prevailing at the dates of the

transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the

translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are

recognised in the Statement of Comprehensive Income.

Translation differences on non-monetary items, held at fair value are reported as part of net realised and unrealised loss

on investments and currencies in the Statement of Comprehensive Income.

Reported net realised and unrealised gains and losses arising from foreign currency transactions are reflected in the

Statement of Comprehensive Income.





28


(l) Redeemable participating shares

Redeemable participating shares are redeemable at the Shareholder’s option and are classified as financial liabilities.

The participating shares can be put back to the Company on any dealing day for cash equal to a proportionate share of

the Company’s net asset value.

(m) Expenses

All expenses, including management fees and incentive fees, are recognised in the Statement of Comprehensive Income

on an accrual basis.

(n) Due from and to Brokers

Amounts due from and to brokers represents receivables for securities sold and payables for securities purchased that

have been contracted for but not yet settled or delivered at the Statement of Financial Position date respectively.

(n) Negative Yield Market conditions, including but not limited to a reduction in interest rates, may have a material impact on any yield

payable in respect of a class of shares in a Fund to the extent that either the yield will be so low that following the

deduction of the charges and expenses applicable to the shares, it will be negative net yield or the yield is itself already

a negative number before the charges and expenses have been deducted, namely a negative gross yield.

Such market conditions, together with any actions taken by financial institutions in response thereto (such as, for

example, by way of reducing interest rates and therefore income payable on investments of a Fund), are outside the

control of the Directors. A negative net yield and/or negative gross yield environment creates potential issues for any

Fund which seeks to maintain a stable Net Asset Value per Share in a Fund in that the yield of the Portfolio may be

unable to pay a distribution or other charges or expenses or other liabilities of the Portfolio, such as the fees of service

providers or other operating costs.

The Company has implemented a repurchase of shares process to account for the above scenarios. Further information

is disclosed in Note 5 to the financial statements.

3. Cash and Cash Equivalents

The Funds cash balance of GBP £5,611 (31 December 2015: GBP £530) is maintained with The Bank of New York

Mellon, Brussels, the Sub-Custodian, on behalf of BNY Mellon Trust Company (Ireland) Limited, the Depositary.

4. Net Realised and Unrealised Gain/(Loss)

The net realised and unrealised investment gain/(loss) from transactions in financial assets and financial liabilities

shown in the Statement of Comprehensive Income for the financial year ended 31 December 2016 and 31 December

2015 for the Sterling Short Duration Managed Liquidity Fund can be analysed as follows: we

31 December

2016

31 December

2015

GBP GBP

£'000 £'000

Net realised loss on investment securities (216) (485)

Net Realised Investment Loss (216) (485)

Net change in unrealised gain/(loss) on investment securities 2,658 (778)

Net Change in Unrealised Investment Gain/(Loss) 2,658 (778)

Net Realised and Unrealised Gain/(Loss) on Investments 2,442 (1,263)





29

5. Share Capital and Redeemable Participating Shares

Authorised

The authorised share capital of the Company is (and was at the date of incorporation) 1,000,000,000,000 shares of no

par value initially designated as unclassified shares and available for issue as shares. The issued share capital of the

Company is EUR €300,002 (31 December 2015: EUR €300,002) representing 300,002 shares (31 December 2015:

300,002 shares) (the subscriber shares) issued for the purposes of the incorporation and authorisation of the Company at

an issue share of €1 per share which are fully paid up and are beneficially owned by the Investment Manager. The

subscriber shares do not form part of the net asset value of the Company and are thus disclosed in the financial

statements by way of this note only. In the opinion of the Directors, this disclosure reflects the nature of the Company’s

business as an investment fund.

Market conditions, including but not limited to a reduction in interest rates, may have a material impact on the yield

payable on a class of shares in a Fund to the extent that either the yield will be so low that following the deduction of

the charges and expenses applicable to the shares, it will be negative net yield or the yield is itself already a negative

number before the charges and expenses have been deducted and accordingly, a negative gross yield. A negative net

yield and/or negative gross yield environment creates potential issues for any Fund in that the yield of the Fund may be

unable to pay a distribution or cover charges or expenses or other liabilities of the Fund.

Each shareholder is deemed to have provided a standing request to the Fund to automatically repurchase such number

of their shares on any dealing day, which represent the shareholder’s pro-rata share of any negative yield in respect of

that Fund or class of shares. Accordingly, the Fund may automatically repurchase such shares where a negative yield

applies to such shares and, when any such repurchase is effected, the Fund will use any such repurchase proceeds to

discharge the shareholder’s pro-rata share of such negative yield. Repurchase proceeds in respect of the shares which

are automatically repurchased will be automatically retained by the relevant Fund to cover the negative yield of that

Fund or class of shares. While the automatic repurchase of shares in these circumstances may enable a Fund to maintain

the relevant class of shares at a stable net asset value per share, the number of shares in issue in such class of shares and

therefore the number of shares held by a shareholder in such class, will be decreased in line with the decrease in the

assets caused by the negative yield applicable to such class of shares and the automatic repurchase of such shares.

For the financial year ended 31 December 2016, the Euro Liquidity Fund had negative yield of EUR €3,620 (31

December 2015: EUR €603) which is included in repurchase of shares attributable to negative yield, in the Statement of

Changes in Net Assets Attributable to Holders of Redeemable Participating Shares.

The movement in number of Redeemable Participating Shares during the financial year ended 31 December 2016 was

as follows:

Sterling Liquidity Fund^

Class Opening Shares Shares issued

Reinvested

dividends Shares redeemed Closing Shares

Class 0 2,297,930,847 18,597,177,539 16,622,808 (17,086,643,642) 3,825,087,552

Class 1 4,053,154,423 16,706,333,003 19,997,850 (16,815,413,919) 3,964,071,357

Class 2 3,983,773,147 33,120,586,250 4,511,467 (32,905,993,694) 4,202,877,170

Class 3 117,471,988 1,336,338,333 125,120 (1,334,651,611) 119,283,830

Class 4 1,000,000 – – (1,000,000) – Class 7 19,578,323 18,900,000 21,145 (20,002,311) 18,497,157

Class 8 – 100 – – 100





30

5. Share Capital and Redeemable Participating Shares (continued)

Sterling Liquidity Fund (continued)

Class Subscriptions

Dividend

reinvested Redemptions

GBP GBP GBP

£'000 £'000 £'000

Class 0 18,597,178 16,623 (17,086,644)

Class 1 16,706,333 19,998 (16,815,414)

Class 2 33,120,586 4,511 (32,905,994)

Class 3 1,336,338 125 (1,334,651)

Class 4 – – (1,000)

Class 7 18,900 21 (20,002)

Class 8 0 – –

^Share Transfer

Included in the shares issued and shares redeemed of the classes are the following share transfers:

- Share transfer of 26,001 shares from Class 0 to Class 1

- Share transfer of 145,609,841 shares from Class 1 to Class 0



Euro liquidity Fund


Reinvested


Class 0 – 7,877,034,205 – (6,628,853,606) 1,248,180,599

Class 1 218,459,803 286,791,790 – (308,777,367) 196,474,226

Class 2 10,206 12,000,000 – (12,000,037) 10,169

Class 8 – 100 – – 100

Class Subscriptions

Dividend


EUR EUR EUR

€'000 €'000 €'000

Class 0 7,877,034 – (6,628,854)

Class 1 286,792 – (308,777)

Class 2 12,000 – (12,000)

Class 8 0 – –

Sterling Short Duration Managed Liquidity Fund*


Reinvested


Class 1 70,172,825 250,599,383 – (87,192,924) 233,579,284

Class 2 13,823,473 4,533,108 – (9,037,199) 9,319,382

Class 5 3,552,235 1,200,944 – – 4,753,179

Class Subscriptions

Dividend


GBP GBP GBP

£'000 £'000 £'000

Class 1 2,782,271 – (969,063)

Class 2 46,843 – (93,359)

Class 5 12,000 – –

*On 9 September 2016, Sterling Short Duration Cash Fund changed its name to Sterling Short Duration Managed Liquidity Fund.





31


Sterling Short Duration Managed Liquidity Fund* (continued)

The movement in number of Redeemable Participating Shares during the financial year ended 31 December 2015 was

as follows:

Sterling Liquidity Fund^


Reinvested


Class 0 2,326,044,589 10,264,631,250 11,386,734 (10,304,131,726) 2,297,930,847

Class 1 2,969,425,862 17,131,022,550 14,650,108 (16,061,944,097) 4,053,154,423

Class 2 3,169,340,492 32,073,039,830 5,538,559 (31,264,145,734) 3,983,773,147

Class 3 144,350,231 1,188,202,827 125,456 (1,215,206,526) 117,471,988

Class 4 1,000,000 – – – 1,000,000

Class 5 154,000 – – (154,000) – Class 7 14,025,756 37,499,999 53,662 (32,001,094) 19,578,323

Class Subscriptions

Dividend


GBP GBP GBP

£'000 £'000 £'000

Class 0 10,264,631 11,387 (10,304,132)

Class 1 17,131,022 14,650 (16,061,944)

Class 2 32,073,040 5,539 (31,264,146)

Class 3 1,188,203 125 (1,215,206)

Class 5 – – (157)

Class 7 37,500 54 (32,001)

^Share Transfer





Euro Liquidity Fund


Reinvested


Class 0 7,741,542 12,842,759 43 (20,584,344) –

Class 1 433,022,141 320,413,604 – (534,975,942) 218,459,803

Class 2 2,221,040 – – (2,210,834) 10,206

Class Subscriptions

Dividend


EUR EUR EUR

€'000 €'000 €'000

Class 0 12,843 – (20,585)

Class 1 320,413 – (534,976)

Class 2 – – (2,210)





32


Sterling Short Duration Managed Liquidity Fund*^


Reinvested


Class 1 42,732,901 40,788,525 – (13,348,601) 70,172,825

Class 2 31,235,580 9,405,434 – (26,817,541) 13,823,473

Class 5 3,501,231 3,552,235 – (3,501,231) 3,552,235

Class Subscriptions

Dividend


GBP GBP GBP

£'000 £'000 £'000

Class 1 450,786 – (147,237)

Class 2 96,606 – (275,287)

Class 5 35,541 – (34,989)

^Share Transfer


- Share transfer of 1,955,101shares of Class 2 to 2,003,335 shares of Class 5

* On 9 September 2016, Sterling Short Duration Cash Fund changed its name to Sterling Short Duration Managed Liquidity Fund.

6. Financial Instruments at Fair Value through Profit or Loss

31 December

2016

GBP £

GBP

31 December

2016

EUR €

EUR

31 December

2016

GBP £

GBP

31 December

2016

GBP £

GBP

Sterling Liquidity

Fund

Euro Liquidity

Fund*

Sterling Short Duration Managed

Liquidity Fund**

Total

Company***

Designated as at fair value through

profit or loss

- Certificate of Deposit 4,929,337 310,163 1,102,765 6,296,857

- Collective Investment Scheme – – 232,169 232,169

- Commercial Paper 1,883,024 451,334 314,739 2,583,021

- Corporate Bonds 1,096,982 126,424 471,143 1,676,040

- Dutch Treasury Certificate – 25,015 – 21,353

- France Treasury Bill – 25,007 – 21,346

- German Treasury Bill – 14,520 – 12,394

- Mortgage Related Bonds – – 460,148 460,148

- Time Deposits 3,230,119 484,710 163,012 3,806,879

- UK Treasury Bill 1,102,125 – – 1,102,125

Total Financial assets at fair value

through profit or loss 12,241,587 1,437,173 2,743,976 16,212,332

* There were no gains or losses on financial assets.


*** Total company includes cross investment of GBP £232,169.





33

6. Financial Instruments at Fair Value through Profit or Loss (continued)

31 December

2015

GBP £

GBP

31 December

2015

EUR €

EUR

31 December

2015

GBP £

GBP

31 December

2015

GBP £

GBP

Sterling Liquidity

Fund

Euro Liquidity

Fund*


Liquidity Fund**

Total

Company***

Designated as at fair value through

profit or loss

- Certificate of Deposit 4,227,675 45,003 305,047 4,565,890

- Collective Investment Scheme – – 52,996 52,996

- Commercial Paper 2,654,040 57,003 124,842 2,820,895

- Corporate Bonds 899,987 35,135 267,739 1,193,621

- Mortgage Related Bonds – – 196,710 196,710

- Time Deposits 3,225,231 78,365 5,587 3,288,575

Total Financial assets at fair value

through profit or loss 11,006,933 215,506 952,921 12,118,687

* There were no gains or losses on financial assets. ** On 9 September 2016, Sterling Short Duration Cash Fund changed its name to Sterling Short Duration Managed Liquidity Fund. *** Total company includes cross investment of GBP £52,996.

Fair Value of Financial Instruments

The three levels of the fair value hierarchy under the IFRS 7 “Financial Instruments: Disclosures” are described below:

Level 1 – Unadjusted quoted market prices in active markets that are accessible at the measurement date for identical

unrestricted assets or liabilities;

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either

directly (as prices) or indirectly (derived from prices);

Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety shall be

determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this

purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value

measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measure is a

Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety

requires judgement, considering factors specific to the asset or liability.





34


Fair Value of Financial Instruments (continued)

The following table shows financial investments recognised at fair value as at 31 December 2016, analysed between the

three different levels described previously:

Level 1 Level 2 Level 3 Total


GBP GBP GBP GBP

£'000 £'000 £'000 £'000

Certificate of Deposit – 4,929,337 – 4,929,337

Commercial Paper – 1,883,024 – 1,883,024

Corporate Bonds – 1,096,982 – 1,096,982

Time Deposits – 3,230,119 – 3,230,119

UK Treasury Bill – 1,102,125 – 1,102,125

Financial assets at fair value through profit or loss – 12,241,587 – 12,241,587


Euro Liquidity Fund

EUR EUR EUR EUR

€'000 €'000 €'000 €'000

Certificate of Deposit – 310,163 – 310,163

Commercial Paper – 451,334 – 451,334

Corporate Bonds – 126,424 – 126,424

Dutch Treasury Certificate – 25,015 – 25,015

France Treasury Bill – 25,007 – 25,007

German Treasury Bill – 14,520 – 14,520

Time Deposits – 484,710 – 484,710




GBP GBP GBP GBP

£'000 £'000 £'000 £'000


Collective Investment Scheme – 232,169 – 232,169



Mortgage Related Bonds – 460,148 – 460,148

Time Deposits – 163,012 – 163,012



For assets and liabilities not carried at fair value, their carrying values are a reasonable approximaisation of fair value.

All other assets and liabilities including cash balances are carried at amortised cost. Their carrying values are a

reasonable appreciation of fair value. As such, level 2 is deemed to be the most appropriate categorisation of these

financial instruments.

During the financial year ended 31 December 2016 and 31 December 2015, there were no significant transfers between

levels of the fair value hierarchy for financial assets and liabilities.





35


Fair Value of Financial Instruments (continued)

No reconciliation of movements in the fair value of financial investments categorised within level 3 between the

beginning and the end of the reporting period is presented, as the Funds held no level 3 instruments during the financial

year ended 31 December 2016 and 31 December 2015.

The following table shows financial investments recognised at fair value as at 31 December 2015, analysed between the

three different levels described previously:



GBP GBP GBP GBP

£'000 £'000 £'000 £'000


Commercial Paper – 2,654,040 – 2,654,040


Time Deposits – 3,225,231 – 3,225,231



Euro Liquidity Fund

EUR EUR EUR EUR

€'000 €'000 €'000 €'000




Time Deposits – 78,365 – 78,365

Financial assets at fair value through profit or loss – 215,506 – 215,506



GBP GBP GBP GBP

£'000 £'000 £'000 £'000


Collective Investment Scheme – 52,996 – 52,996



Mortgage Related Bonds – 196,710 – 196,710

Time Deposits – 5,587 – 5,587

Financial assets at fair value through profit or loss – 952,921 – 952,921






36

7. Accrued Expenses and Other Payables (amounts falling due within 1 year)

31 December 31 December 31 December 31 December

2016 2016 2016 2016

Sterling Liquidity

Fund

Euro Liquidity

Fund


Liquidity Fund*

Total

Company GBP EUR GBP GBP

£'000 €'000 £'000 £'000

Management fees 1,374 28 469 1,867

Admin, Trustee & Depository fees 87 17 31 132

Directors' remuneration 37 – – 37

Legal & Professional fees 4 1 2 7

Audit fees 16 3 1 19

Other expenses 33 23 19 72

Total accrued expenses and other

payables 1,551 72 522 2,134


2015 2015 2015 2015

Sterling Liquidity

Fund

Euro Liquidity

Fund


Liquidity Fund*

Total


£'000 €'000 £'000 £'000



Directors' remuneration 23 1 – 24




Total accrued expenses and other

payables 1,526 49 199 1,761






37

8. Accrued Income and Other Receivables (amounts falling due within 1 year)


2016 2016 2016 2016

Sterling Liquidity

Fund

Euro Liquidity

Fund


Liquidity Fund*

Total


£'000 €'000 £'000 £'000

Accrued interest income 5,782 2,356 2,791 10,584

Prepaid expenses 7 34 33 69

Total accrued income

and other receivables 5,789 2,390 2,824 10,653


2015 2015 2015 2015

Sterling Liquidity

Fund

Euro Liquidity

Fund


Liquidity Fund*

Total


£'000 €'000 £'000 £'000

Accrued interest income 6,394 418 1,534 8,236

Prepaid expenses 38 28 7 66

Total accrued income

and other receivables 6,432 446 1,541 8,302


9. Net Asset Value per Unit

The following table summarises the Net Asset Value and the NAV per share of each share class at the financial years

ended 31 December 2016, 31 December 2015 and 31 December 2014.

31 December 2016

Net Asset Value*

GBP Shares £'000 Outstanding NAV Per Share

Sterling Liquidity Fund Class 0 3,825,088 3,825,087,552 GBP £1.00

Class 1 3,964,071 3,964,071,357 GBP £1.00

Class 2 4,202,877 4,202,877,170 GBP £1.00

Class 3 119,284 119,283,830 GBP £1.00

Class 7 18,497 18,497,157 GBP £1.00

Class 8 0 100 GBP £1.00

* Amounts designated as 0 are less than GBP£1,000





38

9. Net Asset Value per Unit (continued)

31 December 2015

Net Asset Value



Class 1 4,053,155 4,053,154,423 GBP £1.00

Class 2 3,983,773 3,983,773,147 GBP £1.00

Class 3 117,472 117,471,988 GBP £1.00

Class 4 1,000 1,000,000 GBP £1.00

Class 7 19,578 19,578,323 GBP £1.00

31 December 2014

Net Asset Value



Class 1 2,969,426 2,969,425,862 GBP £1.00

Class 2 3,169,340 3,169,340,492 GBP £1.00

Class 3 144,350 144,350,231 GBP £1.00

Class 4 1,000 1,000,000 GBP £1.00

Class 5 157 154,000 GBP £1.02

Class 7 14,026 14,025,756 GBP £1.00

31 December 2016

Net Asset Value*

EUR Shares €'000 Outstanding NAV Per Share

Euro Liquidity Fund Class 0 1,248,181 1,248,180,599 EUR €1.00

Class 1 196,474 196,474,226 EUR €1.00

Class 2 10 10,169 EUR €1.00

Class 8 0 100 EUR €1.00

31 December 2015

Net Asset Value


Euro Liquidity Fund Class 1 218,460 218,459,803 EUR €1.00

Class 2 10 10,206 EUR €1.00

* Amounts designated as 0 are less than EUR €1,000





39

9. Net Asset Value per Unit (continued)

31 December 2014

Net Asset Value


Euro Liquidity Fund Class 0 7,742 7,741,542 EUR €1.00

Class 1 433,022 433,022,141 EUR €1.00

Class 2 2,221 2,221,040 EUR €1.00

31 December 2016

Net Asset Value


Sterling Short Duration Managed Liquidity Fund* Class 1 2,603,081 233,579,284 GBP £11.14

Class 2 96,576 9,319,382 GBP £10.36

Class 5 47,518 4,753,179 GBP £10.00

31 December 2015

Net Asset Value


Sterling Short Duration Managed Liquidity Fund* Class 1 776,475 70,172,825 GBP £11.07

Class 2 142,295 13,823,473 GBP £10.29

Class 5 35,501 3,552,235 GBP £9.99

31 December 2014

Net Asset Value


Sterling Short Duration Managed Liquidity Fund* Class 1 470,064 42,732,901 GBP £11.00

Class 2 319,771 31,235,580 GBP £10.24

Class 5 35,011 3,501,231 GBP £10.00






40

10. Expenses


2016 2016 2016 2016

Sterling Liquidity

Fund

Euro Liquidity

Fund


Liquidity Fund*

Total


£'000 €'000 £'000 £'000

Management fees 8,047 169 2,059 10,245


Directors' remuneration 58 3 3 63

Legal & Professional fees 18 – 3 21



8,748 289 2,214 11,199


2015 2015 2015 2015

Sterling Liquidity

Fund

Euro Liquidity

Fund


Liquidity Fund*

Total


£'000 €'000 £'000 £'000



Directors' remuneration 62 7 3 70




7,757 419 897 8,958


There are no transaction costs incurred by the Company for the financial year ended 31 December 2016 and 31

December 2015.





41

11. Transactions with Related Parties

The Company is related to the following entities: The Investment Manager, Standard Life Investments Limited. The

Investment Manager is entitled to charge an annual management fee as follows:

The total annual management charges and management expenses of each Fund are based on a percentage of the Net

Asset Value of each Fund prior to the deduction of any fees or other expenses. In relation to Class 2 to 5 Shares and

Class 7, the management charges and management expenses cover the fees and expenses of the Investment Manager,

the Depositary, the Administrator and the Marketing Agent. In relation to Class 1 Shares of each Fund, the management

charges and management expenses cover the fees and expenses of the Investment Manager and the Marketing Agent

only. Class 0 Shares, Class 1 Shares, Class 6 Shares and Class 8 Shares shall be separately responsible for the fees and

expenses of the Depositary and Administrator (including any Sub-Custodian fees and expenses which will be at normal

commercial rates) attributable to Class 0 Shares, Class 1 Shares, Class 6 Shares and Class 8 Shares, respectively.

The combined fee of the Administrator and the Depositary is up to a maximum of 0.05% of the Net Asset Value of each

Fund.

The total annual management charges and management expenses of each class of shares are as follows:

Fund Class 0 Class 1 Class 2 Class 3 Class 4 Class 5 Class 7 Class 8

Sterling Liquidity

Fund 0% 0.10% 0.10% 0.15% 0.20% 0.25% 0.125% 0.025%

Euro Liquidity Fund 0% 0.10% 0.10% 0.15% 0.20% 0.25% 0.125% 0.025%

Sterling Short

Duration Managed

Liquidity Fund 0% 0.10% 0.15% 0.20% 0.30% 0.15% N/A N/A

Each Fund shall bear the cost of any value added tax applicable to any fees or other amounts payable to or by the

Investment Manager in the performance of its duties.

The amount charged by the Investment Manager for the financial year ended 31 December 2016 was GBP £8,047 (31

December 2015: GBP £7,119) for the Sterling Liquidity Fund, EUR €169 (31 December 2015: EUR €324) for the Euro

Liquidity Fund, and GBP £2,059 (31 December 2015: GBP £828) for the Sterling Short Duration Managed Liquidity

Fund.

The amount charged for Administration, Trustee & Depositary for the financial year ended 31 December 2016 was

GBP £547 (31 December 2015: GBP £460) for the Sterling Liquidity Fund, EUR €68 (31 December 2015: EUR €33)

for the Euro Liquidity Fund, and GBP £128 (31 December 2015: GBP £39) for the Sterling Short Duration Managed

Liquidity Fund. Amounts payable to the Investment Manager as at 31 December 2016 and 31 December 2015 are

disclosed in Note 7.

Mr. Barry McGrath and Mr. Andrew Curtin are independent Directors and have no executive function with the

Investment Manager or its affiliated companies. Mr. Michael Boyce was also an independent Director until he resigned

on 11 November 2016 and had no executive function with the Investment Manager or its affiliated companies. Mr.

Stephen Campbell, Ms. Jennifer Richards and Mr. Michael McKenna are affiliated with Standard Life Investments

Limited, the Investment Manager of the Company. Mr. Stephen Campbell, Ms. Jennifer Richards and Mr. Michael

McKenna have waived their right to receive remuneration for their services as Directors. The amounts charged for

Directors’ remuneration for the financial year ended 31 December 2016 and amounts payable as at 31 December 2016

are disclosed in Notes 10 and 7 respectively.

The Sterling Short Duration Managed Liquidity Fund held an investment of GBP £232,169 (31 December 2015: GBP

£52,996) in the Sterling Liquidity Fund. This represented an ownership of 1.91% of the Sterling Liquidity Fund at 31

December 2016 (31 December 2015: 0.51%). Refer to the Schedule of Investments for further details of this

investment.





42

11. Transactions with Related Parties (continued)

As at 31 December 2016 and 31 December 2015, the following related parties held a beneficial interest in the shares of

the Funds:


As at 31 December 2016 Investor Name Holding Value

(GBP

£'000) GBP£’000

SLTM Limited 2,941,465 2,941

Standard Life Global Absolute Return Strategies Fund 600,309,796 600,310

Standard Life Global Real Estate Fund 10,092,311 10,092

Standard Life International Designated Activity Company

Company

122,354,257 122,354

Standard Life Investment Company 39,419,006 39,419

Standard Life Investment Company II 21,909,315 21,909

Standard Life Investment Company III 270,976,216 270,976

Standard Life Investments Global SICAV 17,679,869 17,680

Standard Life Investments Liability Solution ICAV 158,152,187 158,152

Standard Life Strategic Bond Fund 7,395,193 7,395

Standard Life Strategic Investment Allocation Fund 101,873,681 101,874


GBP£’000

Standard Life Assurance Limited 20,481,659 20,482

Standard Life Investments Liability Solutions ICAV 6,822,281 6,822

Euro Liquidity Fund

As at 31 December 2016 Investor Name Holding Value*

(GBP

£'000) EUR€’000


Standard Life International Designated Activity Company 100 0

Standard Life Investment Company 1,152,318 1,152

Standard Life Investment Company II 16,781,373 16,781

Standard Life Investment Company III 65,161,956 65,162

Standard Life Investments Global SICAV 382,982 383

Standard Life Strategic Bond Fund 2,528,998 2,529

* Amounts designated as 0 are less than EUR€1,000

There was no beneficial interest in the shares of Euro Liquidity Fund held by related parties as at financial year ended

31 December 2015.

Sterling Short Duration Managed Liquidity Fund

There are no beneficial interest in the shares of Sterling Short Duration Managed Liquidity Fund held by related parties

as at financial years ended 31 December 2016 and 31 December 2015.

12. Financial Instruments and associated risks

In pursuing the investment objectives of each Fund referred to in the Directors’ Report, the Company holds the

following financial instruments: Corporate Bonds, Collective Investment Schemes, Government/Agency Securities,

Commercial Paper, Certificates of Deposit, Mortgage Related Securities and Time Deposits. The main risks arising

from each Fund’s financial instruments are market risk (including market price, interest rate and foreign exchange risk),

liquidity and credit risks.





43

12. Financial Instruments and associated risks (continued)

(a) Market price risk Market risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential

loss a Fund might suffer through holding market position in the face of price movements.

The Investment Manager considers the asset allocation of the portfolio in order to minimise the risk associated with

particular market sectors whilst continuing to follow a Fund’s investment objectives. Each Fund’s overall market

position is monitored on a daily basis by the Investment Manager.

Each Fund’s investments are susceptible to market price risk arising from uncertainties about future prices of the

instruments. Each Fund’s market price risk is managed through diversification of the investment portfolio.

The investments of each fund at 31 December 2016 are classified as being under the financials sector. At 31 December

2016, the overall market exposures were as follows:

Fair Value % of net assets

GBP

£'000


31 December 2016

Designated at fair value through profit or loss

-Certificate of Deposit 4,929,337 40.64%

-Commercial Paper 1,883,024 15.52%

-Corporate Bonds 1,096,982 9.04%

-Time Deposit 3,230,119 26.63%

-UK Treasury Bill 1,102,125 9.09%

Financial Assets at fair value through profit or loss 12,241,587 100.92%


GBP

£'000


31 December 2015



-Commercial Paper 2,654,040 25.34%

-Corporate Bonds 899,987 8.59%

-Time Deposit 3,225,231 30.80%


As at 31 December 2016, 92% (31 December 2016: 97%) of investments are held in the United Kingdom.





44


(a) Market price risk (continued)


EUR

€'000

Euro Liquidity Fund

31 December 2016


-Certificate of Deposit 310,163 21.47%

-Commercial Paper 451,334 31.24%


-Dutch Treasury Certificate 25,015 1.73%

-France Treasury Bill 25,007 1.73%

-German Treasury Bill 14,520 1.01%

-Time Deposit 484,710 33.55%



EUR

€'000

Euro Liquidity Fund

31 December 2015





-Time Deposits 78,365 35.87%

Financial Assets at fair value through profit or loss 215,506 98.64%

As at 31 December 2016, 98% (31 December 2016: 94%) of investments are held in countries within the EU.


GBP

£'000


31 December 2016



-Collective Investment Schemes 232,169 8.45%



-Mortgage Related 460,148 16.75%

-Time Deposit 163,012 5.93%






45


(a) Market price risk (continued)


GBP

£'000


31 December 2015



-Collective Investment Schemes 52,996 5.55%



-Mortgage Related 196,710 20.61%

-Time Deposit 5,587 0.59%

Financial Assets at fair value through profit or loss 952,921 99.86%


As at 31 December 2016, 82% (31 December 2015: 73%) of investments are held in the United Kingdom.

(b) Credit Risk

Each Fund is subject to Credit Risk, which is the possibility that the issuer of a security will be unable to repay the

interest and principal in a timely manner. The Company seeks to maintain an AAA/V1 (Fitch) and AAAm (S&P) rating

for the Sterling Liquidity, Euro Liquidity and Sterling Short Duration Managed Liquidity Funds by investing in a

diversified range of high quality assets.


Portfolio by rating category /31/20 15

Rating 31 December 2016 31 December 2015

% of Net Assets % of Net Assets

AAA – 0.76%

AA+ – 0.48%

AA- 31.55% 28.57%

A+ 12.94% 22.32%

A 54.79% 51.06%

Non Rated 1.64% 1.91%

Total 100.92% 105.10%

Euro Liquidity Fund

Portfolio by rating category



AAA 4.47% 4.60%

AA- 17.34% 26.10%

A+ 14.64% 21.34%

A 63.03% 44.31%

Non Rated – 2.29%

Total 99.48% 98.64%





46


(b) Credit Risk (continued)


Portfolio by rating category



AAA 26.11% 29.32%

AA+ – 0.47%

AA- 24.44% 35.04%

A+ 12.20% 5.13%

A 37.13% 29.90%

Total 99.88% 99.86%


The Fund’s maximum exposure to credit risk in the event that counterparties fail to perform their obligations as of 31

December 2016 (not taking into account the value of any collateral or other security held), in relation to each class, is

the carrying amount of the recognised financial assets as indicated in the statement of financial position.

The Investment Manager has adopted procedures to reduce credit risk related to its dealings with counterparties. Before

transacting with any counterparty, the Investment Manager or its affiliates evaluate both credit-worthiness and

reputation by conducting a credit analysis of the party, their business and reputation. The credit risk of approved

counterparties is then monitored on an ongoing basis, including periodic reviews of financial statements and interim

financial reports as needed.

The Company's Depositary is BNY Mellon Trust Company (Ireland) Limited. The Bank of New York Mellon has been

appointed by BNY Mellon Trust Company (Ireland) Limited as its global Sub-Custodian. Most of the investments and

cash of the Company (with the exception of time deposits, which are held directly with the relevant financial institution)

are held by Bank of New York Mellon (or within its global Sub-Custodian network) at year end. Bankruptcy or

insolvency of the global Sub-Custodian (or any of its Sub-Custodians) may cause the Fund’s rights with respect to its

investments in debt securities held by the bank to be delayed or limited.

The Company’s securities are segregated from the assets of either the Depositary or its agents. Thus in the event of

insolvency or bankruptcy of the global Sub-Custodian (or any of its Sub-Custodians), the Company’s assets are

segregated. The Company will, however, be exposed to the credit risk of the global Sub-Custodian, or any

Depositary or Sub-Custodian used by the global Depositary, in relation to the Company’s cash maintained by the global

Sub-Custodian. In event of the insolvency or bankruptcy of the global Sub-Custodian (or any of its Sub-Custodians),

the Company will be treated as a general creditor of the global Sub-Custodian (or any of its Sub-Custodians) in relation

to cash holdings of the Company. With the exception of the Depositary’s security interests over the assets of the

Company there are no other liens or encumbrances on the assets held by the Company.

(c) Foreign Currency Risk

Each Fund invests in securities and other investments that are denominated in the functional currency of the relevant

Fund. Accordingly, the value of each Fund’s assets is not subject to foreign exchange risks.

(d) Liquidity Risk

The Company’s constitution provides for the daily creation and cancellation of redeemable participating shares and

each Fund is therefore exposed to the liquidity risk of meeting shareholder redemptions at any time. Each Fund

therefore invests the majority of its assets in which can be readily sold in normal market conditions.





47


(d) Liquidity Risk (continued)

The Company is entitled to limit the number of shares of each Fund repurchased on any dealing day to shares

representing not more than 10% of the net asset value of that Fund on that dealing day. In this event, the limitation will

apply pro rata so that all shareholders wishing to have shares of that Fund repurchased on that dealing day realise the

same proportion of their shares. Shares not repurchased, but which would otherwise have been repurchased, will be

carried forward for repurchase on the next dealing day and will be dealt with in priority (on a pro rata basis) to

repurchase requests received subsequently. If requests for repurchase are so carried forward, the Administrator will

inform the shareholders affected.

In accordance with each Fund’s investment policy, the Investment Manager monitors each Fund’s liquidity position on

a daily basis, and the Board of Directors reviews it on a quarterly basis.

The tables below analyse each Fund’s financial assets and financial liabilities into relevant maturity groupings based on

the remaining period at the balance sheet date to the contractual maturity date. The amounts in the table are the

contractual undiscounted cash flows.

31 December 2016:


<1 Month 1-2months 2 months - 1yr 1 - 5 years >5 years Total

£'000 £'000 £'000 £'000 £'000 £'000

Assets

Financial assets at fair value

through profit or loss 5,144,020 1,613,176 5,484,391 – – 12,241,587

Cash and cash equivalents 297 – – – – 297

Accrued income and other

receivables 5,789 – – – – 5,789

Total Financial Assets 5,150,106 1,613,176 5,484,391 – – 12,247,673

Liabilities

Distributions payable 3,462 – – – – 3,462

Accrued expenses and other

payables 1,551 – – – – 1,551

Due to broker 112,843 – – – – 112,843

Redeemable participating units 12,129,817 – – – – 12,129,817

Total Financial Liabilities 12,247,673 – – – – 12,247,673





48



31 December 2015:



£'000 £'000 £'000 £'000 £'000 £'000

Assets


through profit or loss 4,413,519 1,512,560 5,080,854 – – 11,006,933



receivables 6,432 – – – – 6,432

Total Financial Assets 4,420,424 1,512,560 5,080,854 – – 11,013,838

Liabilities

Distributions payable 4,534 – – – – 4,534


payables 1,526 – – – – 1,526

Due to broker 534,869 – – – – 534,869



31 December 2016:

Euro Liquidity Fund


€'000 €'000 €'000 €'000 €'000 €'000

Assets


through profit or loss 933,023 98,656 405,494 – – 1,437,173

Cash and cash equivalents 5,174 – – – – 5,174


receivables 2,390 – – – – 2,390

Total Financial Assets 940,587 98,656 405,494 – – 1,444,737

Liabilities


payables 72 – – – – 72







49



31 December 2015:

Euro Liquidity Fund


€'000 €'000 €'000 €'000 €'000 €'000

Assets


through profit or loss 123,377 27,004 65,125 – – 215,506


Receivable for investments sold 2,500 – – – – 2,500


receivables 446 – – – – 446

Total Financial Assets 126,390 27,004 65,125 – – 218,519

Liabilities


payables 49 – – – – 49

Redeemable participating units 218,470 – – – – 218,470

Total Financial Liabilities 218,519 – – – – 218,519

31 December 2016:



£'000 £'000 £'000 £'000 £'000 £'000

Assets


through profit or loss 780,218 172,510 1,096,391 404,993 289,864 2,743,976



receivables 2,824 – – – – 2,824

Total Financial Assets 783,939 172,510 1,096,391 404,993 289,864 2,747,697

Liabilities


payables 522 – – – – 522







50



31 December 2015:



£'000 £'000 £'000 £'000 £'000 £'000

Assets


through profit or loss 50,586 180,005 310,486 215,404 196,440 952,921



receivables 1,541 – – – – 1,541

Total Financial Assets 52,135 180,005 310,486 215,404 196,440 954,470

Liabilities


payables 199 – – – – 199

Redeemable participating units 954,271 – – – – 954,271

Total Financial Liabilities 954,470 – – – – 954,470


(e) Interest Rate Risk

Each Fund may hold investments in fixed interest bearing securities. Any change to the interest rate for particular

securities may result in income either increasing or decreasing. Each Fund’s performance therefore will depend in part

on its ability to anticipate and respond to such fluctuations in market interest rates. The Investment Manager and Sub-

Investment Manager manage this risk by way of duration and yield curve analysis to establish and monitor duration

positioning and yield curve structure.

Each Funds’ investments have a very low sensitivity to changing interest rates and other market conditions.

Other assets and liabilities bear no interest rate risk and are not included in the tables below.

The interest rate profile of the financial assets of the Funds as at 31 December 2016 was as follows:

Sterling Liquidity

Fund

Euro Liquidity

Fund


Liquidity Fund*

Total

Company

GBP EUR GBP GBP

£'000 €'000 £'000 £'000 As at 31 December 2016

Floating Interest Rate Securities 1,096,982 54,520 916,450 2,059,970

Fixed Interest Rate Securities 11,144,605 1,382,653 1,595,357 13,920,193

Total 12,241,587 1,437,173 2,511,807 15,980,163

Weighted Average Interest Rate 0.35% -0.17% 0.46%

Maximum Weighted Average Period until 61 days 37 days 84 days

maturity (days)





51


(e) Interest Rate Risk (continued)

The interest rate profile of the financial assets of the Funds as at 31 December 2015 was as follows:

Sterling Liquidity

Fund

Euro Liquidity

Fund


Liquidity Fund*

Total

Company

GBP EUR GBP GBP

£'000 €'000 £'000 £'000 As at 31 December 2015

Floating Interest Rate Securities 2,042,777 25,012 459,612 2,520,823

Fixed Interest Rate Securities 8,964,156 190,494 440,313 9,544,868

Total 11,006,933 215,506 899,925 12,065,691

Weighted Average Interest Rate 0.40% 0.16% 0.50%

Maximum Weighted Average Period until 52 days 39 days 102 days

maturity (days)


Based on the portfolio’s composition as at 31 December 2016 and 31 December 2015, had interest rates fallen by 2%

with all other variables held constant, it is estimated that net assets attributable to holders of redeemable shares and the

change in net assets attributable to holders of redeemable shares per the income statement would have increased by

approximately GBP £0.02 (31 December 2015: GBP £0.02). A 2% rise in rates would have resulted in an equal but

opposite effect.

Euro Liquidity Fund




approximately EUR €0.02 (31 December 2015: EUR €0.02). A 2% rise in rates would have resulted in an equal but

opposite effect.





approximately GBP £0.22 (31 December 2015: GBP £0.22). A 2% rise in rates would have resulted in an equal but

opposite effect.






52


(f) Risk concentrations of the maximum exposure to credit risk

The tables below analyse each of the Fund’s concentration of credit risk by geographical distribution (based on

counterparties’ country of domicile):


Country 31 December 2016 31 December 2015


Australia 4.71% 4.30%

EU (excluding UK) 3.71% 4.29%

United Kingdom 91.88% 96.51%

Others 0.62% –

Total 100.92% 105.10%

Euro Liquidity Fund





Others 0.14% –

Total 99.48% 98.64%






New Zealand 3.20% 5.03%

United Kingdom 81.79% 73.06%

Others 2.62% 7.17%

Total 99.88% 99.86%


The tables below analyse each of the fund’s concentration of credit risk by industrial distribution.


31 December 2016 31 December 2015


Financial 91.83% 104.81%

Government 9.09% 0.29%

Total 100.92% 105.10%





53


(f) Risk concentrations of the maximum exposure to credit risk (continued)

Euro Liquidity Fund



Consumer, Cyclical – 2.29%

Convertible Bond 0.69% –

Financial 94.32% 91.75%


Total 99.48% 98.64%




Asset Backed 8.09% 7.79%

Financial 83.79% 76.11%


Mortgage Securities 7.09% 12.82%

Total 99.88% 99.86%


(g) Concentration of risk

Each of the Funds had the following number of shareholders who held greater than 10% of its shares.

Euro Liquidity Fund


(GBP

£'000) EUR€’000


The Euro Liquidity Fund had no shareholders who held greater than 10% of its shares as at financial year ended 31

December 2015.

The Sterling Liquidity Fund and Sterling Short Duration Managed Liquidity Fund had no shareholders who held greater

than 10% of its shares as at financial years ended 31 December 2016 and 31 December 2015.

13. Efficient Portfolio Management

Each Fund may employ techniques and instruments relating to transferable securities and money market instruments

provided that such techniques and instruments are used for efficient portfolio management purposes and are in

accordance with the Fund’s investment policy. Such techniques and instruments are limited to forward foreign

exchange contracts, interest and exchange rate swap contracts, repurchase and reverse purchase agreements and when

issued and/ or delayed delivery securities.

When considered appropriate, each Fund may use derivative instruments to attempt to hedge or reduce the overall risks

of its investments and to manage interest rate risk and it may also employ techniques and instruments intended to

provide protection against exchange rate risks, in order to hedge the currency exposure of the assets of the Fund into the

currency, denomination or yield of the relevant Fund for the purposes of efficient portfolio management. Any currency

exposure of the Fund may not be combined with or against that of any other Fund. The currency exposure of the assets

attributable to the Fund may not be allocated to other Funds and the Fund will not be leveraged as a result of currency

or interest rate hedging transactions.

No Funds held any derivative instruments at the financial year ended 31 December 2016 and 31 December 2015.





54

14. Disclosure for Cross Investments within the Company

The Sterling Short Duration Managed Liquidity Fund held shares in the Sterling Liquidity Fund at the financial year

end. Transactions involving these shares and the related gains, losses and distributions during the financial year were:


Liquidity Fund* Total Company

For the financial

year ended

31 December 2016

For the financial

year ended

31 December 2015

For the financial

year ended

31 December 2016

For the financial

year ended 31

December 2015

GBP

£’000

GBP

£’000

GBP

£’000

GBP

£’000

Issue of shares 371,572 99,661 371,572 99,661

Redemption of shares 192,400 126,025 194,400 126,025

Net realised gain/(loss)

on financial assets at

fair value through

profit or loss – – – –

Distributions received 773 328 773 328

Cost 232,169 52,996 232,169 52,996

Fair value 232,169 52,996 232,169 52,996

Net unrealised

gain/(loss) on financial

assets at fair value

through profit or loss – – – –


15. Global Exposure

The Company and the Investment Manager employ a risk-management process which enables them to monitor and

measure at any time the risk of the positions and their contribution to the overall risk profile of each Fund. The

Company and the Investment Manager may employ, if applicable, a process for accurate and independent assessment of

the value of any over the counter derivative instrument. The Investment Manager would apply the commitment

approach with respect to the determination of the global exposure of the Fund. For the financial years ended 31

December 2016 and 31 December 2015, the Company did not hold any derivative instruments or engage in hedging

arrangements that necessitated the determination of the global exposure of the Funds.

16. Exchange Rates

For consolidation purposes, foreign currency amounts, the cost of investments and other assets and liabilities are

translated into GBP at 31 December 2016 and 31 December 2015 at the following rates:


GBP 1 = EUR 1.1715 GBP 1 = EUR 1.3568





55

17. Soft Commissions and Brokerage Arrangements

No soft commission arrangements were entered into during the financial year ended 31 December 2016 (31 December

2015: Nil).

There have been no brokerage services or similar arrangement during the financial years ended 31 December 2016 and

31 December 2015.

18. Significant Events During the Financial Year

On 15 June 2016, Mr. Andrew Curtin was appointed as Director.

On 16 June 2016, Ms. Jennifer Richards was approved and appointed Chairman of the Board of Directors replacing Mr.

Barry McGrath.

On 30 June 2016, Mr. Mike Kirby resigned as Director.

On 11 November 2016, Mr. Michael Boyce resigned as Director.

On 11 November 2016, Mr. Michael McKenna was appointed as Director.

The Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Investor Money Regulations 2015 for Fund

Service Providers and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Client Asset

Regulations 2015 for Investments Firms came into effect on 1 July 2016. The Company has adopted the Fund Assets

Model under the Client Asset Regulations. Accordingly, subscription and redemption monies are channelled through an

umbrella cash collection account in the name of the Company. As at 31 December 2016, no adjustment to the financial

statements was required in relation to these collection accounts.

On 9 September 2016, an updated Prospectus was approved by the Central Bank, reflecting the change of fund name of

Sterling Short Duration Cash Fund to Sterling Short Duration Managed Liquidity Fund.

There were no other significant events during the financial year that require disclosure in the financial statements.

19. Significant Subsequent Events

On 6 March 2017 it was announced to the London Stock Exchange that Standard Life are proposing an all share-merger

between Standard Life and Aberdeen Asset Management. The intention is to complete this transaction in the third

quarter of 2017, however, this is subject to regulatory and shareholder approval.

Ernst & Young were re-appointed as Auditors to the Company during the financial year ended 31 December 2016. Due

to a change of auditor at Standard Life Group, the Directors are recommending the appointment of KPMG as Auditors

to the Company with effect from the date of the 2017 Annual General Meeting (“AGM”). Shareholder approval of this

appointment will be sought at the 2017 AGM. KPMG have indicated their willingness to take up this office in

accordance with Section 383(2) of the Companies Act 2014.

There have been no other significant events after the financial year that require disclosure in the financial statements.

20. Comparative Information

Certain comparative amounts used in the financial statements have been reclassified to conform to current year

presentation. Such reclassifications do not have any impact on previously reported net asset value or profit/loss.

21. Approval of Financial Statements

The financial statements were approved by the Directors on 27 April 2017.




Portfolio Listing – Sterling Liquidity Fund

56

Fair Value % of

GBP Net

Nominal Security Description £'000 Assets

Transferable securities other than those admitted to an official

stock exchange listing or traded on a regulated market

Certificate of Deposit 50,000,000 ABN Amro Bank NV 0.43% 03/01/2017 50,000 0.41

50,000,000 ABN Amro Bank NV 0.42% 11/01/2017 50,000 0.41

50,000,000 ABN Amro Bank NV 0.42% 13/01/2017 50,000 0.41

50,000,000 ABN Amro Bank NV 0.44% 02/02/2017 50,000 0.41

50,000,000 ABN Amro Bank NV 0.45% 03/02/2017 50,000 0.41

50,000,000 ABN Amro Bank NV 0.45% 06/02/2017 50,000 0.41

50,000,000 ABN Amro Bank NV 0.45% 08/02/2017 50,000 0.41

100,000,000 ABN Amro Bank NV 0.45% 06/04/2017 100,000 0.82

50,000,000 ABN Amro Bank NV 0.49% 03/05/2017 50,000 0.41

50,000,000 ABN Amro Bank NV 0.49% 04/05/2017 50,000 0.41

50,000,000 Bank of America NT & SA 0.43% 19/01/2017 50,000 0.41



50,000,000 BNP Paribas 0.44% 24/01/2017 50,000 0.41

50,000,000 BNP Paribas 0.44% 26/01/2017 50,000 0.41

50,000,000 BNP Paribas 0.44% 27/01/2017 50,000 0.41

50,000,000 BNP Paribas 0.44% 01/02/2017 50,000 0.41

50,000,000 BNP Paribas 0.45% 09/02/2017 50,000 0.41

50,000,000 BNP Paribas 0.43% 27/02/2017 50,000 0.41

50,000,000 BNP Paribas 0.43% 28/02/2017 50,000 0.41

50,000,000 BNP Paribas 0.43% 01/03/2017 50,000 0.41

50,000,000 BNP Paribas 0.45% 07/03/2017 50,000 0.41

50,000,000 BNP Paribas 0.46% 20/03/2017 50,000 0.41

50,000,000 BNP Paribas 0.44% 05/04/2017 50,000 0.41

50,000,000 China Construction Bank 0.50% 09/01/2017 50,000 0.41




50,000,000 Commonwealth Bank of Australia 0.52% 01/02/2017 49,977 0.42

50,000,000 Danske Bank AS 0.50% 20/02/2017 50,000 0.41

50,000,000 DZ Bank AG 0.42% 06/01/2017 50,000 0.41

50,000,000 DZ Bank AG 0.43% 11/01/2017 50,000 0.41

50,000,000 DZ Bank AG 0.44% 23/01/2017 50,000 0.41

50,000,000 DZ Bank AG 0.44% 25/01/2017 50,000 0.41

50,000,000 DZ Bank AG 0.44% 30/01/2017 50,000 0.41

50,000,000 DZ Bank AG 0.44% 31/01/2017 50,000 0.41

50,000,000 DZ Bank AG 0.45% 07/02/2017 50,000 0.41

50,000,000 DZ Bank AG 0.44% 10/02/2017 50,000 0.41

50,000,000 DZ Bank AG 0.44% 23/02/2017 50,000 0.41

50,000,000 Industrial & Commercial Bank of China 0.55% 10/01/2017 50,000 0.41








50,000,000 ING Bank N.V. 0.42% 05/01/2017 50,000 0.41




Portfolio Listing – Sterling Liquidity Fund (continued)

57

Fair Value % of

GBP Net




(continued)

Certificate of Deposit (continued) 50,000,000 ING Bank N.V. 0.44% 07/02/2017 50,000 0.41

50,000,000 ING Bank N.V. 0.48% 13/02/2017 50,000 0.42

50,000,000 ING Bank N.V. 0.48% 15/02/2017 50,000 0.42

50,000,000 ING Bank N.V. 0.43% 22/03/2017 50,000 0.41

50,000,000 ING Bank N.V. 0.43% 23/03/2017 50,000 0.41

50,000,000 ING Bank N.V. 0.43% 24/03/2017 50,000 0.41

50,000,000 ING Bank N.V. 0.46% 04/04/2017 50,000 0.41

50,000,000 ING Bank N.V. 0.44% 05/04/2017 50,000 0.41

50,000,000 National Bank of Abu Dhabi 0.45% 04/01/2017 49,997 0.42






50,000,000 Nationwide Building Society 0.46% 18/01/2017 50,000 0.41

50,000,000 Natixis 0.45% 02/02/2017 50,000 0.41

50,000,000 Natixis 0.45% 03/02/2017 50,000 0.41

50,000,000 Natixis 0.54% 14/02/2017 50,000 0.42

50,000,000 Natixis 0.54% 21/02/2017 50,000 0.41

25,000,000 Natixis 0.53% 03/03/2017 25,000 0.21

50,000,000 Natixis 0.51% 03/04/2017 50,000 0.41

50,000,000 Natixis 0.49% 07/04/2017 50,000 0.41

75,000,000 Natixis 0.51% 02/05/2017 75,000 0.62

50,000,000 Natixis 0.51% 03/05/2017 50,000 0.41

50,000,000 Nordea Bank AB 0.39% 08/03/2017 50,000 0.41

50,000,000 Nordea Bank AB 0.40% 30/03/2017 50,000 0.41

50,000,000 Nordea Bank AB 0.40% 31/03/2017 50,000 0.41

50,000,000 Nordea Bank AB 0.38% 20/04/2017 50,000 0.41

50,000,000 Nordea Bank AB 0.38% 21/04/2017 50,000 0.41

50,000,000 Nordea Bank AB 0.36% 04/05/2017 50,000 0.41

50,000,000 Qatar National Bank 0.46% 13/03/2017 49,954 0.42









50,000,000 Rabobank International 0.44% 03/03/2017 50,000 0.41

50,000,000 Rabobank International 0.49% 02/06/2017 50,000 0.41

50,000,000 Societe Generale 0.43% 31/03/2017 50,000 0.41

50,000,000 Standard Chartered Bank 0.46% 22/02/2017 50,000 0.41









58

Fair Value % of

GBP Net




(continued)

Certificate of Deposit (continued) 50,000,000 Standard Chartered Bank 0.50% 16/03/2017 50,000 0.41


50,000,000 Toronto-Dominion Bank 0.71% 19/04/2017 50,000 0.42



Total Certificate of Deposit 4,929,337 40.64

Commercial Paper 140,000,000 Antalis S.A. 0.22% 05/01/2017 139,996 1.16

50,000,000 Banque Federative Du Credit Mutuel 0.35% 04/01/2017 49,998 0.41












50,000,000 Dekabank Deutsche Girozentrale 0.38% 06/03/2017 49,966 0.41

65,000,000 Dexia Credit Local S.A. 0.41% 03/01/2017 64,998 0.54






260,000,000 LMA S.A. 0.18% 05/01/2017 259,994 2.14




112,845,000 Regency Markets No.1 0.17% 03/01/2017 112,843 0.93



30,000,000 Swedbank AB 0.41% 17/02/2017 29,984 0.25


Total Commercial Paper 1,883,024 15.52

UK Treasury Bill 200,000,000 United Kingdom Treasury Bill 0.00% 31/01/2017 199,977 1.65

54,500,000 United Kingdom Treasury Bill 0.00% 06/02/2017 54,490 0.45









59

Fair Value % of

GBP Net




(continued)

UK Treasury Bill (continued) 150,000,000 United Kingdom Treasury Bill 0.00% 15/05/2017 149,878 1.24



Total UK Treasury Bill 1,102,125 9.09

Transferable securities admitted to an official stock exchange

listing or traded on a regulated market

Corporate Bonds 50,000,000 Bank of Montreal 0.64% FRN 23/03/2017 49,999 0.41

25,000,000 Commonwealth Bank of Australia 0.62% FRN 29/03/2017 24,999 0.21





150,000,000 Cooperatieve Rabobank UA 0.68% FRN 16/01/2017 150,000 1.24



50,000,000 National Australia Bank Ltd 0.76% FRN 13/01/2017 50,000 0.42



25,000,000 National Bank of Canada 0.67% FRN 29/03/2017 24,999 0.21

50,000,000 Svenska Handelsbanken AB 0.64% FRN 10/07/2017 50,000 0.41

52,000,000 Westpac Banking Corp 0.63% FRN 24/03/2017 52,000 0.43


Total Corporate Bonds 1,096,982 9.04

Deposits

Time Deposit 151,403,000 Abbey National Treasury Services Plc/London 0.43% 31/12/2017 151,403 1.25

200,000,000 Bank of Tokyo Mitsubishi UFJ Ltd 0.18% 04/01/2017 200,000 1.65



250,769,000 Credit Agricole 0.43% 03/01/2017 250,769 2.07

50,186,161 DSB (Danske Bank 31 Day) 0.45% 17/01/2017 50,186 0.41





200,000,000 ING Bank N.V. 0.58% 31/12/2017 200,000 1.65

200,056,423 Landesbank Baden Wuerttenberg 0.22% 03/01/2017 200,056 1.65

100,053,000 Lloyds TSB Bank 0.45% 03/01/2017 100,053 0.82

149,816,512 Mizuho Bank Ltd 0.20% 03/01/2017 149,817 1.23

80,725,581 Nykredit Bank 0.23% 05/01/2017 80,726 0.67

80,065,055 Nykredit Bank 0.23% 06/01/2017 80,065 0.66

80,065,560 Nykredit Bank 0.23% 09/01/2017 80,066 0.66





60

Fair Value % of

GBP Net


Deposits (continued)

Time Deposit (continued) 359,924,535 Sumitomo Mitsui Banking Corporation 0.20% 03/01/2017 359,925 2.97

250,198,362 Sumitomo Mitsui Trust Bank 0.25% 05/01/2017 250,198 2.06

300,245,300 Sumitomo Mitsui Trust Bank 0.25% 06/01/2017 300,245 2.47

Total Time Deposit 3,230,119 26.63

Total Financial Assets at fair value through profit or loss 12,241,587 100.92

Other Net Liabilities (111,770) (0.92)

Total net assets attributable to holders of redeemable

participating shares 12,129,817 100.00

Analysis of investments as percentage of total assets % of

Total Assets

Transferable securities admitted to an official stock exchange listing or traded on a regulated market 8.96

Transferable securities other than those admitted to an official stock exchange listing or traded on a

regulated market 64.62

Deposits 26.37

Other assets 0.05

Total assets 100.00




Portfolio Listing – Euro Liquidity Fund

61

Fair Value % of

EUR Net

Nominal Security Description €'000 Assets



Certificate of Deposit 10,000,000 Bank of Tokyo Mitsubishi UFJ Ltd (0.43)% 11/01/2017 10,001 0.69

25,000,000 CitiBank N.A. (0.38)% 03/02/2017 25,009 1.73

25,000,000 CitiBank N.A. (0.40)% 06/03/2017 25,018 1.73

10,000,000 Credit Suisse AG (0.36)% 11/01/2017 10,001 0.69

30,000,000 Credit Suisse AG (0.29)% 01/02/2017 30,008 2.08

15,000,000 DZ Bank AG (0.42)% 14/03/2017 15,013 1.04

20,000,000 DZ Bank AG (0.37)% 11/05/2017 20,027 1.39

30,000,000 Mitsubishi UFJ Trust And Banking Corporation (0.43)% 24/01/2017 30,009 2.08

25,000,000 Mizuho Bank Ltd (0.36)% 16/01/2017 25,004 1.73

25,000,000 Mizuho Bank Ltd (0.41)% 09/03/2017 25,020 1.73

10,000,000 Natixis (0.27)% 06/01/2017 10,000 0.69

20,000,000 Natixis (0.37)% 23/01/2017 20,005 1.39

25,000,000 Natixis (0.27)% 18/04/2017 25,020 1.73

40,000,000 Qatar National Bank (0.20)% 08/05/2017 40,028 2.77

Total Certificate of Deposit 310,163 21.47

Commercial Paper 40,000,000 ABN Amro Bank NV (0.36)% 25/05/2017 40,058 2.77

5,000,000 Antalis S.A. (0.24)% 16/01/2017 5,000 0.35

12,500,000 Antalis S.A. (0.25)% 30/01/2017 12,503 0.87

10,000,000 Banque Federative Du Credit Mutuel (0.22)% 05/01/2017 10,000 0.69

40,000,000 Banque Federative Du Credit Mutuel (0.43)% 20/01/2017 40,010 2.77

25,000,000 Dekabank Deutsche Girozentrale (0.27)% 27/04/2017 25,022 1.73

5,000,000 Dexia Credit Local S.A. (0.26)% 16/01/2017 5,001 0.35



10,000,000 LMA S.A. (0.30)% 09/01/2017 10,001 0.69

10,000,000 LMA S.A. (0.32)% 19/01/2017 10,002 0.69

20,000,000 Nordea Bank AB (0.37)% 14/03/2017 20,015 1.39

10,000,000 Nordea Bank AB (0.38)% 14/03/2017 10,008 0.69

17,500,000 OP Corporate Bank Plc (0.36)% 17/01/2017 17,503 1.21

11,100,000 OP Corporate Bank Plc (0.39)% 17/01/2017 11,102 0.77

30,000,000 Pohjola Bank Plc (0.35)% 11/01/2017 30,003 2.08

25,000,000 Regency Markets No.1 (0.24)% 20/01/2017 25,003 1.73

35,000,000 Standard Chartered Bank (0.14)% 16/01/2017 35,002 2.42



5,000,000 Svenska Handelsbanken AB (0.26)% 21/03/2017 5,003 0.35

5,000,000 Svenska Handelsbanken AB (0.28)% 03/04/2017 5,004 0.35

35,000,000 Toronto-Dominion Bank (0.35)% 10/03/2017 35,023 2.42

25,000,000 UBS AG (0.30)% 20/03/2017 25,016 1.73

25,000,000 UBS AG (0.38)% 20/03/2017 25,021 1.73

Total Commercial Paper 451,334 31.24




Portfolio Listing – Euro Liquidity Fund (continued)

62

Fair Value % of

EUR Net

Nominal Security Description €'000 Assets

Transferable securities admitted to an official exchange listing or

traded on a regulated market

Corporate Bonds 10,000,000 ABN Amro Bank NV 0.00% FRN 14/01/2017 10,001 0.69


2,000,000 Credit Suisse AG 3.88% 25/01/2017 2,006 0.14

18,119,000 National Australia Bank Ltd 3.75% 06/01/2017 18,129 1.26

8,600,000 Nordea Bank AB 3.75% 24/02/2017 8,650 0.60

5,500,000 Societe Generale S.A. 0.00% FRN 16/01/2017 5,501 0.38

22,500,000 Societe Generale S.A. 3.75% 01/03/2017 22,650 1.57

9,944,000 Svenska Handelsbanken AB 3.75% 24/02/2017 10,002 0.69

10,428,000 Swedbank AB 3.38% 09/02/2017 10,467 0.72

7,500,000 Swedbank AB 0.17% FRN 15/07/2017 7,516 0.52

Total Corporate Bonds 126,424 8.75

Dutch Treasury Certificate 25,000,000 Dutch Treasury Certificate 0.00% 31/01/2017 25,015 1.73

Total Dutch Treasury Certificate 25,015 1.73

France Treasury Bill 25,000,000 France Treasury Bill BTF 0.00% 11/01/2017 25,007 1.73

Total France Treasury Bill 25,007 1.73

German Treasury Bill 14,500,000 German Treasury Bill 0.00% 22/02/2017 14,520 1.01

Total German Treasury Bill 14,520 1.01

Deposits

Time Deposit 85,494,924 Abbey National Treasury Plc (0.40)% 03/01/2017 85,495 5.92

117,071,968 BNP Paribas (0.46)% 03/01/2017 117,072 8.10

39,301,071 DSB (Danske Bank 31 Day) (0.80)% 03/01/2017 39,301 2.72

68,390,289 ING Bank N.V. (0.75)% 03/01/2017 68,390 4.73

19,959,202 KBC Bank NV (0.32)% 03/01/2017 19,959 1.38

103,853,008 Sumitomo Mitsui Banking Corporation (0.46)% 03/01/2017 103,853 7.19

50,639,971 Sumitomo Mitsui Trust Bank (0.47)% 04/01/2017 50,640 3.51

Total Time Deposit 484,710 33.55


Other Net Assets 7,492 0.52






Portfolio Listing – Euro Liquidity Fund (continued)

63


Total Assets




Deposits 33.55

Other assets 0.52

Total assets 100.00




Portfolio Listing – Sterling Short Duration Managed Liquidity Fund*

64

Fair Value % of

GBP Net




Certificate of Deposit 50,000,000 ABN Amro Bank NV 0.26% 02/03/2017 49,978 1.82



50,000,000 BNP Paribas 0.23% 13/01/2017 50,001 1.82

25,000,000 Credit Agricole 0.65% 19/01/2017 25,006 0.91

62,500,000 Danske Bank 0.50% 14/02/2017 62,521 2.28

50,000,000 DZ Bank AG 0.54% 05/04/2017 50,029 1.82

50,000,000 DZ Bank AG 0.53% 10/04/2017 50,028 1.82

25,000,000 ING Bank N.V. 0.46% 04/04/2017 25,009 0.91

30,000,000 Mizuho Bank Ltd 0.18% 12/01/2017 29,998 1.09

35,000,000 Mizuho Bank Ltd 0.22% 09/02/2017 34,992 1.27

50,000,000 Mizuho Bank Ltd 0.23% 13/02/2017 49,986 1.82


40,000,000 Natixis 0.63% 06/01/2017 40,003 1.46

45,000,000 Natixis 0.72% 19/01/2017 45,013 1.64

35,000,000 Natixis 0.53% 13/03/2017 35,017 1.27



50,000,000 Rabobank Nederland 0.51% 18/04/2017 50,025 1.82

45,000,000 Rabobank Nederland 0.65% 20/11/2017 44,995 1.64



50,000,000 Sumitomo Mitsui Banking Corporation 0.55% 15/05/2017 50,030 1.82



45,000,000 UBS AG 0.60% 31/01/2017 45,015 1.64

Total Certificate of Deposit 1,102,765 40.14

Commercial Paper 50,000,000 ABN Amro Bank NV 0.28% 16/03/2017 49,971 1.82






40,000,000 Pohjola Bank Plc 0.18% 13/01/2017 39,997 1.46

Total Commercial Paper 314,739 11.46

UCITS CIS

Collective Investment Schemes

232,168,697

Standard Life Investments Liquidity Fund plc - Sterling Liquidity

Fund Class 0 232,169 8.45

Total Collective Investment Schemes 232,169 8.45




Portfolio Listing – Sterling Short Duration Managed Liquidity Fund* (continued)

65

Fair Value % of

GBP Net


Transferable securities admitted to an official stock exchange

listing or traded on a regulated market

Corporate Bonds 6,000,000 ASB Finance Ltd/London 0.96% FRN 13/03/2017 6,004 0.22

56,691,000 ASB Finance Ltd/London 0.86% FRN 01/05/2018 56,812 2.07



25,000,000 European Investment Bank 0.60% FRN 22/02/2017 25,011 0.91

14,470,000 National Australia Bank Ltd 3.63% 08/11/2017 14,841 0.54


35,650,000 OP Corporate Bank plc 0.85% FRN 21/05/2018 35,677 1.30

20,300,000 Royal Bank of Canada 1.07% FRN 09/10/2018 20,432 0.74

20,000,000 Royal Bank of Canada 0.78% FRN 04/06/2019 19,997 0.73

85,000,000 Swedbank AB 0.68% FRN 04/07/2017 85,004 3.09

25,000,000 Swedbank AB 0.90% FRN 02/12/2019 25,015 0.91

31,600,000 Toronto-Dominion Bank 0.74% FRN 19/01/2018 31,617 1.15



15,000,000 Westpac Securities NZ Ltd 0.76% FRN 23/06/2017 15,010 0.55

9,762,000 Westpac Securities NZ Ltd 0.83% FRN 02/10/2017 9,775 0.36

Total Corporate Bonds 471,143 17.15

Mortgage Related 25,000,000 Arkle Master Issuer Plc 2.25% FRN 17/05/2060 25,299 0.92

6,927,716 Driver UK Multi-Compartment SA 0.76% FRN 25/01/2024 6,935 0.25

3,778,300 E-Carat 0.73% FRN 18/03/2022 3,780 0.13

12,376,488 E-Carat 0.66% FRN 18/04/2023 12,384 0.45

5,392,923 E-Carat 1.11% FRN 18/06/2024 5,422 0.20

22,500,000 E-Carat 0.00% FRN 18/11/2024 22,517 0.82

18,600,000 Fosse Master Issuer Plc 0.68% FRN 18/10/2054 18,623 0.68

19,000,000

Globaldrive Auto Receivables UK 2016-A Plc 0.73% FRN

20/09/2024 19,014 0.69

35,809,000 Gracechurch Card Funding Plc 0.76% FRN 15/07/2021 35,875 1.31

4,141,878 Gracechurch Mortgage Financing Plc 2.05% FRN 20/11/2056 4,151 0.15

69,100,000 Holmes Master Issuer Plc 1.11% FRN 15/07/2021 70,119 2.55

1,537,969 Holmes Master Issuer Plc 1.91% FRN 15/10/2054 1,550 0.06

9,300,666 Motor 2015-1 Plc 0.74% FRN 25/06/2022 9,306 0.34

11,650,000 Penarth Master Issuer Plc 0.63% FRN 18/10/2019 11,656 0.42




20,000,000 Permanent Master Issuer Plc 0.96% FRN 15/07/2042 20,088 0.73

43,000,000 Permanent Master Issuer Plc 0.70% FRN 15/07/2058 43,039 1.57

16,413,750 Silverstone Master Issuer Plc 1.96% FRN 21/01/2055 16,497 0.60



Total Mortgage Related 460,148 16.75




Portfolio Listing – Sterling Short Duration Managed Liquidity Fund* (continued)

66

Fair Value % of

GBP Net


Deposits

Time Deposit 65,000,000 Lloyds TSB Bank 0.28% 03/01/2017 65,000 2.36

98,011,642 Sumitomo Mitsui Banking Corporation 0.20% 03/01/2017 98,012 3.57

Total Time Deposit 163,012 5.93


Other Net Assets 3,199 0.12




Total Assets




Collective investment scheme 8.45

Deposits 5.93

Other assets 0.14

Total assets 100.00





Statement of Significant Portfolio Changes - Sterling Liquidity Fund (Unaudited)

67

Significant Purchases

Security Descriptions Nominal Cost

(000’s) GBP

£'000

Sumitomo Mitsui Banking Corporation TD 0.45% 31/12/2017 2,376,564 2,376,564


Sumitomo Mitsui Trust Bank TD 0.45% 07/01/2016 794,254 794,254

Landesbank Baden Wuerttenberg TD 0.22% 11/11/2016 750,561 750,561




















Statement of Significant Portfolio Changes - Sterling Liquidity Fund (Unaudited)

68

Significant Sales

Security Descriptions Nominal Proceeds

(000’s) GBP

£'000



Sumitomo Mitsui Trust Bank TD 0.45% 07/01/2016 794,254 794,254





















Statement of Significant Portfolio Changes – Euro Liquidity Fund (Unaudited)

69



(000’s) EUR

€'000

DSB (Danske Bank 31 Day) TD (0.50)% 31/05/2016 120,960 120,960

Sumitomo Mitsui Banking Corporation TD (0.42)% 31/05/2016 120,033 120,033



BNP Paribas TD (0.46)% 03/01/2017 117,072 117,072




BNP Paribas TD (0.46)% 31/05/2016 112,523 112,523





ING Bank N.V. TD (0.47)% 27/05/2016 109,996 109,996

ING Bank N.V. TD (0.47)% 30/05/2016 109,995 109,995

ING Bank N.V. TD (0.47)% 31/05/2016 109,990 109,990

BNP Paribas TD (0.46)% 01/06/2016 109,517 109,517

BNP Paribas TD (0.46)% 02/06/2016 109,516 109,516

ING Bank N.V. TD (0.50)% 15/12/2016 108,408 108,408

ING Bank N.V. TD (0.50)% 23/08/2016 107,253 107,253




Statement of Significant Portfolio Changes – Euro Liquidity Fund (Unaudited)

70

Significant Sales


(000’s) EUR

€'000








BNP Paribas TD (0.46)% 31/05/2016 112,523 112,523





ING Bank N.V. TD (0.47)% 27/05/2016 109,996 109,996

ING Bank N.V. TD (0.47)% 30/05/2016 109,995 109,995

ING Bank N.V. TD (0.47)% 31/05/2016 109,990 109,990

BNP Paribas TD (0.46)% 01/06/2016 109,517 109,517

BNP Paribas TD (0.46)% 02/06/2016 109,516 109,516

ING Bank N.V. TD (0.50)% 15/12/2016 108,408 108,408

ING Bank N.V. TD (0.50)% 23/08/2016 107,253 107,253





Statement of Significant Portfolio Changes - Sterling Short Duration Managed Liquidity

Fund* (Unaudited)

71



(000’s) GBP

£'000

Standard Life Investments Liquidity Fund plc - Sterling Liquidity Fund Class 0 371,572 371,572

Sumitomo Mitsui Banking Corporation TD 0.20% 28/10/2016 245,820 245,820










BNP Paribas TD 0.40% 12/07/2016 193,347 193,347













Statement of Significant Portfolio Changes - Sterling Short Duration Managed Liquidity

Fund* (Unaudited)

72

Significant Sales


(000’s) GBP

£'000











BNP Paribas TD 0.40% 12/07/2016 193,347 193,347

Standard Life Investments Liquidity Fund plc - Sterling Liquidity Fund Class 0 192,400 192,400













Appendix I – UCITS V Remuneration Policy (Unaudited)

73

The Company has implemented a remuneration policy pursuant to the UCITS V provisions, which became effective on

18 March 2016. These provisions require Management Companies and self-managed UCITS to establish and apply

remuneration policies and practices. As Standard Life Investments Liquidity Fund plc is self-managed it has its own

remuneration policy (the “Remuneration Policy”) and the only remuneration is the Directors’ fees.

The Remuneration Policy can be found at:

https://uk.standardlifeinvestments.com/Remuneration_Policy_SLI_Liquidity_Fund_PLC.pdf.

https://uk.standardlifeinvestments.com/Remuneration_Policy_SLI_Liquidity_Fund_PLC.pdf

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